ENTREPRENEURIAL INTENTIONS & CORPORATE ENTREPRENEURSHIP

OUTLINE
The Intention to Act Entrepreneurially Entrepreneur Background and Characteristics

Role Model and Support Systems

Minority Entrepreneur Entrepreneurial Intentions within Existing Organizations

THE INTENTION TO ACT ENTREPRENEURIALLY

Entrepreneurial intentions
Definition: Motivational factors that influence individuals to pursue entrepreneurial outcomes. - Intention is stronger when an action is perceived to be feasible and desirable.
Entrepreneurial self-efficacy 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 outcomes.

ENTREPRENEUR BACKGROUND AND CHARACTERISTICS

Education
Provides background Comm. & problem-solving skills

Influenced by: Dissatisfaction with ones job Previous technical & industry experience

Background and Characteristics

Ent. careers between 22- 45 Male: early 30s Female: middle 30s

Work History

Age

ROLE MODELS

Role models Individuals influencing an entrepreneurs career choice and style

Can be parents, family members, or other entrepreneurs.

can serve in a supportive capacity as mentors by providing information, advice and guidance

need to establish connections and networks in the venture formation process

SUPPORT SYSTEMS

Moral
Cheering squadindividual who provides psychological support (Friends, Relatives)

Professional
Need advice and counsel throughout the establishment of the new venture

- Honest advice - Encouragement - Understanding - Assistance

- Mentors - Business associates - Suppliers - Trade associations - Personal affiliations

MINORITY ENTREPRENEURS
Contributing Factors: Encouragement of entrepreneurship among minority groups. Increase in the number of role models.

Female self-employment women starting new ventures at a higher rate than men. Race Asian, African American, Hispanic, and Native American majority owned firms.

ENTREPRENEURIAL INTENTIONS WITHIN EXISTING ORGANIZATIONS

Top management must create an environment that encourages employees to think and act entrepreneurially. Employees will realize that entrepreneurial action within the firm is both personally desirable and feasible.
vs. Traditional Management

Entrepreneurial Management

MANAGERIAL VS ENTREPRENEURIAL DECISION MAKING

Causes for Interest in Corporate Entrepreneurship

Increasing interest in doing your own thing and doing it on ones terms. New search for meaning and impatience has caused more discontent in structured organizations. Organizations are encouraging corporate entrepreneurship i.e. stimulating, and capitalizing on, employees who think that something can be done differently and better.

New business venturing within an existing organization Innovativeness Self-renewal on key ideas Proactiveness

CHARACTERISTICS OF AN ENTREPRENEURIAL ENVIRONMENT

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LEADERSHIP CHARACTERISTICS OF A CORPORATE ENTREPRENEUR

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ESTABLISHING CORPORATE ENTREPRENEURSHIP IN THE ORGANIZATION

Step one:
Secure a commitment to corporate entrepreneurship in the organization by top, upper, and middle management levels. Establish initial framework and embrace the concept. Identify, select, and train corporate entrepreneurs. Step two: Identify ideas and areas that top management is interested in supporting. Identify amount of risk money available to develop the concept. Establish overall program expectations and target results of each corporate venture. Establish mentor/sponsor system. Step three: Use of technology to ensure organizational flexibility.

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ESTABLISHING CORPORATE ENTREPRENEURSHIP IN THE ORGANIZATION

Step four: Identify interested managers to train employees and share their experiences. Step five: Develop ways for the organization to get closer to its customers. Step six: Learn to be more productive with fewer resources. Step seven:

Establish a strong support structure for corporate entrepreneurship. Step eight:

Tie rewards to the performance of the entrepreneurial unit. Finally: Implement an evaluation system that allows successful entrepreneurial units to expand and unsuccessful ones to be eliminated.

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ESTABLISHING CORPORATE ENTREPRENEURSHIP IN THE ORGANIZATION

A study found that new ventures started within a corporation performed worse than those started independently by entrepreneurs.

~ Profitable twice as fast. ~ End up twice as profitable.

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~ Corporations difficulty in maintaining a long-term commitment. ~ A lack of freedom to make autonomous decisions. ~ A constrained environment.