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Employee Entrepreneurship:

Different models

1
Employee Entrepreneurship
Employee entrepreneurs are individuals who leave an
incumbent firm to found a firm that competes in the
same industry.

Eg: Gordon Moore, Henry Ford

2
Employee Entrepreneurs
The industries that is rich in tacit
knowledge for e.g. Consulting, Law,
High tech industries are more prone to
employee entrepreneurship.

3
The Driving Force: What motivates
Indian Employee Entrepreneurs?
 Rewards of entrepreneurship
 Personal qualities
 Career
 Experience
 Non-monetary factors

4
The Driving Force: Rewards of
Entrepreneurship
 Autonomy
 Making money/financial independence
 Saw business opportunity/impact on industry
 Recognition of self and/or organisation
 Desire to create something new/innovate
 Build something important/make a difference
 Grow a business from scratch
 Desire to be entrepreneur/excitement of
entrepreneurship

5
The Driving Force: Personal
Qualities
 Intellectual challenge
 Potential to achieve
 Instinct

6
The Driving Force: Career
 Career growth
 Diversification
 Satisfaction

7
The Driving Force: Experience
 Utilize previous experience
 Industry vision
 Possess technology

8
The Driving Force: Non-monetary
factors
 Help India in various ways
 Personal satisfaction
 Create value
 Create jobs
 Create wealth and plough back to society

9
Employee Entrepreneurship: Two views

 Within the incumbent firm


 To start something on his own

10
Models of Employee Entrepreneurship

1. Corporate Employee Entrepreneurship


Model
2. Supplier Employee Entrepreneurship Model
3. Innovative Employee Entrepreneurship
Model
4. Social Employee Entrepreneurship Model

11
Corporate Employee Entrepreneurship
Model
The process of creating new business within established
firms to improve organisational profitability and
enhance a firm’s competitive position or the strategic
renewal of existing business.

Eg: 3M, Wipro Technologies

12
Supplier Employee Entrepreneurship Model

The process of creating suppliers among the


existing employees who may become the part
of supply chain.

Eg: TATA Group , Indian hotels, MICO

13
Innovative Employee Entrepreneurship Model

The employees who were motivated primarily by the


desire to create something new, the desire for
autonomy, wealth creation and financial
independence, the achievement of personal objectives
and the propensity for action.

Eg: Infosys, Apple computers

14
Social Employee Entrepreneurship Model

The entrepreneurs behind this believed that business


best practices, when applied could create
sustainable, effective and would usher in real
social development and still earn profits.
Eg: Dream a Dream, Nightingales Medical trust

15
Social Employee Entrepreneurship Model

Empowering children from vulnerable backgrounds by


developing life skills and at the same time sensitizing
the community through active volunteering, leading
to a non-discriminatory society where unique
difference are appreciated

- Vision of Dream a Dream

16
Thank You

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