Chapter 2, Entrepreneurial Intentions and Corporate Entrepreneurship Vishnu Parmar, IBA University of Sindh
Intention to Act Entrepreneurially • Entrepreneurial Intentions: The motivational factors that influence individuals to pursue entrepreneurial outcomes • Entrepreneurial Self-efficacy: The conviction that one can successfully execute the entrepreneurial process • Perceived Desirability: The degree to which an individual has a favorable or unfavorable evaluation of the potential entrepreneurial outcomes
Entrepreneur Background and Characteristics • Education • Age • Past Work Experience • Role Models and Support Systems • Moral Support Network (Psychological Support to an entrepreneur) • Professional Support Network
3-2 Key Elements in Entrepreneur’s Background • Supportive childhood family environment. • Having a father who is self-employed helps. • Education is important. • Aged 22-45 when starting venture. • Work history: dissatisfied with company job but has technical knowledge. Bill Gates McGraw-Hill/Irwin © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
3-3 Role Models parents, relatives, friends or entrepreneurs in the community. • may serve as mentors. • may help establish a moral and professional support network. • invaluable source of counsel and advice. Who are your entrepreneurial role models? McGraw-Hill/Irwin © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Minority Entrepreneurs • Male vs Female • Other communities like Asian American, African, Hispanic • Bohra, Memon, Dewan, Chinoti, etc
3-5 Entrepreneur Vs. Inventor An inventor creates something for the first time. While the entrepreneur falls in love with the new venture, the inventor falls in love with the invention and often requires the expertise of an entrepreneur to launch a new venture. Historians classify Albert Einstein as an inventive genius and Henry Ford as an entrepreneurial genius. Do you agree or disagree? Why? McGraw-Hill/Irwin © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Managerial vs Entrepreneurial Decision Making • Entrepreneurial Management is distinct from traditional management in terms of eight dimensions (Table 2.1) • Strategic Orientation • Commitment to Opportunity • Commitment to resources • Control of Resources
Managerial vs Entrepreneurial Decision Making • Management Structure • Reward Philosophy • Growth Orientation • Entrepreneurial Culture
Establishing a Culture for Corporate Entrepreneurship • Corporate Entrepreneurship means entrepreneurial action within an established organization • In establishing an entrepreneurial environment within an established organization, certain factors and leadership characteristics need to be present (Table 2.3)
Table 2.3 (Characteristics of an Entrepreneurial Environment) • Organization operates on frontiers of technology • New ideas encouraged • Trial and error encouraged • Failure Allowed • No Opportunity Parameters • Resources Available and Accessible
Table 2.3 (Characteristics of an Entrepreneurial Environment) • Multidiscipline teamwork approach • Long Time Horizon • Volunteer Program • Appropriate Reward System • Sponsor and Champions available • Support of top management
Leadership Characteristics of Corporate Entrepreneurs • Understands the Environment • Is Visionary and Flexible • Creates Management Options • Encourages Teamwork • Encourages Open Discussion • Builds a coalition of supporters • Persists