ENTREPRENEURSHIP MANAGEMENT

Intrapreneurship

Entrepreneurship Management

Entrepreneur and IntrapreneurWhat is Intrapreneurship ?• It is a corporate entrepreneurship• It is entrepreneurship in existing business• They bridge a gap between a manager and an innovator. • Their contribution is in taking new ideas and even working prototype and turning them into profitable products and businesses.• When the ideas have become solid and functioning businesses, intrapreneurs tend to grow bored. At this point, they often need proven managers to maintain and develop business while they go back to building new ventures for others to manage.

Entrepreneurship Management

As a corp. entrepreneurship – an organisation seeks to expand/ grow by exploring new opportunities through new combinations of its existing resources.• It is a tool for stimulating and capitalizing on individuals in an organisation who believe that something can be done differently and in a better way.

An Entrepreneur operates in an open world whereas an intrapreneur operates within the organisation. For Entrepreneur, the liability is total whereas for Intrapreneur the liability is limited to his contract with his employers.

Entrepreneurship Management

An Intrapreneurs profile• Vision• Motivation• Bias to act• Skills• Locus to control• Locus to risk• Failure and mistakes• Goal – setting• Innovation

Entrepreneurship Management

Advantages of Intrapreneurship• Intrapreneurial ideas offer a way to build onto or improve the corp. business• Capital for the idea is easy to come from internal sources within a corp. identity• The established corporate image helps to boost the chances of success of an intrapreneur idea.• Corporates offer economies of scale in marketing, distribution and service.• Corporates offer the unique advantage of multidisciplinary teamwork. The intrapreneur retains the job security but as well enjoys the freedom and prosperity.

Entrepreneurship Management

Intrapreneurial Environment• Organization operates on frontiers of technology• New ideas encouraged• Trial and error encouraged• Failures are allowed• Resources available and accessible• Multidiscipline teamwork approach• Long time horizon• Appropriate reward system• Support of top management

Entrepreneurship Management

Comparison between Entrepreneurial, Intrapreneurial and Managerial functions• primary motives• time orientation• activity• risk• status• failure and mistakes• decisions• who serves• relationship with others• family history

Entrepreneurship Management

Comparison between Entrepreneurial, Intrapreneurial and Managerial functions

  Managerial Intrapreneurial Entrepreneurial

Primary motives promotional and other traditional corporate rewards like office, staff, power

Independence and ability to advance in the corp. rewards

Independence, opportunity and money

Time orientation Short term - meeting quotas and budgets, W/M/Q and annual planning horizon

Between Manager and Entrepreneur, depending on urgency to meet self imposed and corp. timetable

Survival and achieving 5-10 yrs growth of business

Activity Delegates and supervises rather than direct involvement

Direct involvement, more than delegation

Direct involvement

Risk Careful Moderate risk taker Moderate risk taker

Entrepreneurship Management

Comparison between Entrepreneurial, Intrapreneurial and Managerial functions

  Managerial Intrapreneurial Entrepreneurial

Status Concerned about status symbols

Not concerned about traditional status symbols, desires independence

Not concerned about status symbols

Failures and mistakes Tries to avoid mistakes and surprises

Attempts to hide risky projects from view until ready

Deals with failures and mistakes

Decisions Usually agrees with those in upper management positions

Able to get others to agree to help achieve dreams

Follow dreams with decisions

Relationship with others Hiararchy as basic relationship

Transactions within hiararchy Transactions and deal making as basic relationship

Family history Family members worked with organisations

Entrepreneurial small business, professional or farm background

Entrepreneurial small business, professional or farm background

Entrepreneurship Management

Entrepreneurship in Rural Areas

Issues

1. Population Growth

2. Population below the poverty line

3. Agriculture work force- small and marginal farmers

4. Disguised employment

5. Migration of farm workers to the urban areas

Entrepreneurship Management

The basic entrepreneurial principles should be applied to rural development. This would result in :

• Better distribution of farm produce resulting in the rural prosperity

• Entrepreneurial occupation for rural youth resulting in reduction of disguised employment and alternative occupations for rural youth.

• Formations of big cooperatives like Amul for optimum utilisation of farm produce

• Optimum utilisation of local resource in entrepreneurial ventures by rural youth or involving rural youth.

Entrepreneurship Management

The support systemEx ; Amul, MAFCO

The enclave projectsTime schedules

Synchronisation among agriculture produce

Processing & shipping demand the tightest discipline

Stoppers – local politics & lethargy in bureaucracy

Entrepreneurship Management

Profile of a Rural Entrepreneur

• Should not be an individualist. Should have a group orientation. Should consider the rural society not as his market but as his own large family

• Should practice management style where the concern for people is the highest

• Should have a strong commitment for rural development

• Social gain, philanthrophy should be the focus.

Entrepreneurship Management

MYTHS REGARDING ENTREPRENEURS

• Born not made• Anyone can start a business• Are gamblers• Are own bosses• Work longer and harder• Only for rich• Age is a barrier• Motivated by quest for the money• Seek power and control over others• Anyone with good idea can raise capital• Once with enough capital cannot fail• If talented success must come in 1- 2 years

Entrepreneurship Management

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