Chapter 2, Chapter 2, Entrepreneurial Intentions Entrepreneurial Intentions

and Corporate and Corporate EntrepreneurshipEntrepreneurship

Vishnu Parmar, IBAVishnu Parmar, IBA

University of SindhUniversity of Sindh

Intention to Act Intention to Act EntrepreneuriallyEntrepreneurially

• Entrepreneurial Intentions:Entrepreneurial Intentions: The motivational The motivational factors that influence individuals to pursue factors that influence individuals to pursue entrepreneurial outcomesentrepreneurial outcomes

• Entrepreneurial Self-efficacy:Entrepreneurial Self-efficacy: The conviction The conviction that one can successfully execute the that one can successfully execute the entrepreneurial processentrepreneurial process

• Perceived Desirability:Perceived Desirability: The degree to which The degree to which an individual has a favorable or unfavorable an individual has a favorable or unfavorable evaluation of the potential entrepreneurial evaluation of the potential entrepreneurial outcomesoutcomes

Entrepreneur Background and Entrepreneur Background and CharacteristicsCharacteristics

• EducationEducation

• AgeAge

• Past Work ExperiencePast Work Experience

• Role Models and Support SystemsRole Models and Support Systems

• Moral Support Network (Psychological Moral Support Network (Psychological Support to an entrepreneur)Support to an entrepreneur)

• Professional Support NetworkProfessional Support Network

Key Elements in Entrepreneur’s Key Elements in Entrepreneur’s BackgroundBackground

Bill Gates

Supportive childhood family Supportive childhood family environment.environment.

Having a father who is self-Having a father who is self-employed helps.employed helps.

Education is important.Education is important.Aged 22-45 when starting Aged 22-45 when starting

venture.venture.Work history: dissatisfied with Work history: dissatisfied with

company job but has technical company job but has technical knowledge.knowledge.

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© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Role ModelsRole Models

parents, relatives, friends or parents, relatives, friends or entrepreneurs in the entrepreneurs in the community.community.

may serve as mentors.may serve as mentors.may help establish a moral and may help establish a moral and

professional support network.professional support network.invaluable source of counsel invaluable source of counsel

and advice.and advice.

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Who are your entrepreneurial role models?

© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Minority EntrepreneursMinority Entrepreneurs

• Male vs FemaleMale vs Female

• Other communities like Asian Other communities like Asian American, African, HispanicAmerican, African, Hispanic

• Bohra, Memon, Dewan, Chinoti, etcBohra, Memon, Dewan, Chinoti, etc

Male Entrepreneur Male Entrepreneur CharacteristicsCharacteristics

MotivationMotivation Make Things Happen, Role In Corp. Not Make Things Happen, Role In Corp. Not Important, Desire To Be In ControlImportant, Desire To Be In Control

Departure PointDeparture Point Dissatisfied With Present Job, Sidelines, Dissatisfied With Present Job, Sidelines, Discharged/Laid-Off, Acquisition OpportunityDischarged/Laid-Off, Acquisition Opportunity

Fund SourcesFund Sources Personal Assets/Savings, Bank, Investors, Personal Assets/Savings, Bank, Investors, Family/Friends LoansFamily/Friends Loans

Occupational Occupational BackgroundBackground

Experience, Recognized Specialist, Competent In Experience, Recognized Specialist, Competent In

Business FunctionsBusiness Functions

PersonalityPersonality Opinionated/Persuasive, Goal-Oriented, Opinionated/Persuasive, Goal-Oriented, Innovative/Idealistic, Self-Confident, EnergeticInnovative/Idealistic, Self-Confident, Energetic

BackgroundBackground Age = 25-35, Father Self-Employed, College-Age = 25-35, Father Self-Employed, College-Educated, Firstborn ChildEducated, Firstborn Child

Support GroupsSupport Groups Friends, Professional Acquaintances (Lawyers, Friends, Professional Acquaintances (Lawyers, Accountants), Associates, SpouseAccountants), Associates, Spouse

Business StartedBusiness Started Manufacturing/ConstructionManufacturing/Construction

Female Entrepreneur Female Entrepreneur CharacteristicsCharacteristics

MotivationMotivation Accomplishment Of Goal, Do It AloneAccomplishment Of Goal, Do It Alone

Departure PointDeparture Point Job Frustration, Recognition Of Opportunity, Job Frustration, Recognition Of Opportunity, Change In Personal CircumstanceChange In Personal Circumstance

Fund SourcesFund Sources Personal Assets/Savings, Personal LoansPersonal Assets/Savings, Personal Loans

Occupational Occupational BackgroundBackground

Experience, Mid-Management/Administrative Experience, Mid-Management/Administrative

Experience, Service OccupationExperience, Service Occupation

PersonalityPersonality Flexible/Tolerant, Goal-Oriented, Creative & Flexible/Tolerant, Goal-Oriented, Creative & Realistic, Self-Confident, Energetic, SocialRealistic, Self-Confident, Energetic, Social

BackgroundBackground Age = 35-45, Father Self-Employed, College Age = 35-45, Father Self-Employed, College Educated (Liberal Arts), Firstborn ChildEducated (Liberal Arts), Firstborn Child

Support GroupsSupport Groups Friends, Spouse, Family, Women’s Prof. Groups, Friends, Spouse, Family, Women’s Prof. Groups, Trade AssociationsTrade Associations

Business StartedBusiness Started Service-RelatedService-Related

Entrepreneur Vs. Entrepreneur Vs. InventorInventor

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?

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Managerial vs Managerial vs Entrepreneurial Decision Entrepreneurial Decision MakingMaking• Entrepreneurial Management is Entrepreneurial Management is

distinct from traditional distinct from traditional management in terms of eight management in terms of eight dimensions (Table 2.1)dimensions (Table 2.1)

1.1. Strategic OrientationStrategic Orientation

2.2. Commitment to OpportunityCommitment to Opportunity

3.3. Commitment to resourcesCommitment to resources

4.4. Control of ResourcesControl of Resources

Managerial vs Managerial vs Entrepreneurial Decision Entrepreneurial Decision MakingMaking

5.5. Management StructureManagement Structure

6.6. Reward PhilosophyReward Philosophy

7.7. Growth OrientationGrowth Orientation

8.8. Entrepreneurial CultureEntrepreneurial Culture

Establishing a Culture for Establishing a Culture for Corporate EntrepreneurshipCorporate Entrepreneurship

• Corporate Entrepreneurship means Corporate Entrepreneurship means entrepreneurial action within an entrepreneurial action within an established organizationestablished organization

• In establishing an entrepreneurial In establishing an entrepreneurial environment within an established environment within an established organization, certain factors and organization, certain factors and leadership characteristics need to be leadership characteristics need to be present (Table 2.3)present (Table 2.3)

Table 2.3 (Characteristics of an Table 2.3 (Characteristics of an Entrepreneurial Environment)Entrepreneurial Environment)

1.1. Organization operates on frontiers Organization operates on frontiers of technologyof technology

2.2. New ideas encouragedNew ideas encouraged

3.3. Trial and error encouragedTrial and error encouraged

4.4. Failure AllowedFailure Allowed

5.5. No Opportunity ParametersNo Opportunity Parameters

6.6. Resources Available and AccessibleResources Available and Accessible

Table 2.3 (Characteristics of an Table 2.3 (Characteristics of an Entrepreneurial Environment)Entrepreneurial Environment)

7.7. Multidiscipline teamwork approachMultidiscipline teamwork approach

8.8. Long Time HorizonLong Time Horizon

9.9. Volunteer ProgramVolunteer Program

10.10.Appropriate Reward SystemAppropriate Reward System

11.11. Sponsor and Champions availableSponsor and Champions available

12.12. Support of top managementSupport of top management

Leadership Characteristics of Leadership Characteristics of Corporate EntrepreneursCorporate Entrepreneurs

1.1. Understands the EnvironmentUnderstands the Environment

2.2. Is Visionary and FlexibleIs Visionary and Flexible

3.3. Creates Management OptionsCreates Management Options

4.4. Encourages TeamworkEncourages Teamwork

5.5. Encourages Open DiscussionEncourages Open Discussion

6.6. Builds a coalition of supporters Builds a coalition of supporters

7.7. PersistsPersists