GROUP-5TANVI RAJ

ANJALI KUMARIANIRUDH TAKKAR

RAJ SEKHAR

CREATING AN ENTREPRENEURIAL CULURE

IN SUPPORT OF SMEs-ALLAN GIBB

• Enterprise or Entrepreneurial Culture- “set of values ,beliefs and attitudes commonly shared in a society which underpin the notion of an entrepreneurial ‘ way of life’ as being desirable and in turn support the pursuit of effective entrepreneurial behavior by individual or groups”.

• For example: In the field of management training and development to stress the important influence of the organizational culture in shaping the effectiveness of training interventions.

Enterprise Culture

An entrepreneurial way of life should be fostered by programmes aimed to stimulate the development of entrepreneurship and small businesses which involves:

• Greater freedom in making decisions• Greater control over what is to be done and bear a

greater responsibility for the results.• Living in a situation where rewards will be linked directly

and immediately to whether the customer buys the service or product.

The entrepreneurial ‘way of life’

Overall living each day with greater uncertainty and inability to control the actions of a wide range of stakeholders upon whom the success of a business depend.

Working long, irregular hours in order to meet unexpected targets

A position where learning happens under pressure from customers , suppliers, bankers and by the process of solving problems and generally ‘learning by doing’ .

Entrepreneur are characterized by: • Opportunity seeking• Opportunity grasping• Proactive in taking initiatives• Take intuitive decisions with limited

information.• Managing effective networks• Have commitment.

Effective entrepreneurial behavior

• All Entrepreneurs are however not moral or ethical in their demeanor• Example cited in this article are of the drug

mafia and drug traffickers which in a way extends to black marketing and all nefarious activities.• So can we say that the above mentioned

behaviors were effective entrepreneurial behaviors ?? • Entrepreneurial behavior to be effective, has to

contribute to social and economic development of the community.

Effective entrepreneurial behavior

Stakeholders are defined as all those institutions and individuals who have a direct interface with or may be directly affected by the activities of the SME or the agency.

Without deliberate intent they may set rules and regulations which substantially constrain effective entrepreneurial behavior.

There is little point in developing individual entrepreneurs if their key influences are hostile to the entrepreneurial way of life.

Actors in the stakeholder’s environment

Most business development agencies operating in the field of entrepreneurship development claim their customers were entrepreneurs ,their support organizations like NGO’s, customers, but the most demanding customers are the supplier of the resources, donor agencies…the grant giver, the government, the funder organization and so on..

A key issue : Donors’ ‘ways of doing things’ may be in conflict with those of the more informal entrepreneur.

Is there a ‘cultural’ problem

• What then are the qualities that are associated with entrepreneurs ?

Government / Corporate Small Business RealityOrder Untidiness Formal InformalAccountability TrustInformation JudgmentDemarcation OverlapPlanning IntuitionCorporate Strategy Strategic AwarenessControl AutonomyStandards Personal ObservationTransparency AmbiguityPosition Ownership

The Culture Problem

• Rules and bindings like this exposes the business interest of entrepreneur• They are like the Two poles that seldom meet • The niceties of legal machinery and

bureaucratic norms are strong in most countries which acts as deterrents. • This more often than not kills business

ideas and disillusions entrepreneurs• For instance in India, a Government

contract is given to individuals who can deliver at the most economical rates

The rules , the regulations, the bonds deter the entrepreneur in having relationship with the donor organizations.

Agencies that are tied to this supply side culture may find that they cannot flexibly innovate, make up things and change direction as they go along.

Adapting to a bureaucratic culture is costly for the small firm.

The cultural moorings between the two different segments have to be aligned for fostering trust and promoting business dealings

Developing empathy with entrepreneurial “way of life”

Code of moral and ethical conduct Broad Strategic Development Holistic Management Style Strategic Awareness Better understanding Importance of decentralized power

structures Importance of decision making

What can be done?

Four Keys Strategies are :-• Building an entrepreneurial

organization.• Applying Holistic

Management.• Developing learning

partnerships and circles.• Developing a bottom up

approach.

Agency strategies for pursuing the enterprise culture

• Visible• Politically supported• Facilitator• Offering direct benefits to public• Partnership with key stakeholders• Offering relevant coverage• Operating an entrepreneurial “Know-Who” set of

effective relationships• Able to convey the achievements of the agency• To be seen as an entrepreneurial organization

with innovative ideas

The Development Agency as a Community Entrepreneur

• For developing the “Enterprise Culture” in the community, the emphasis must be upon creating ‘learning opportunities’.• Agency must become a learning

organization by its openness to involvement with and learning from relevant actors and their stake holders environment• Agencies must know how things work

and must study how relationships can be improved

The Agency as Facilitator for Entrepreneurial Learning

• Organizing knowledge around the ‘need to know’ of specific actors & customers.• Building relationship learning between SME

and relevant stakeholders

• “The World of Learning” therefore becomes the “The World of Work” and “Life World" of the entrepreneur.

• Enterprise culture is a notion of great significance for small business development.• The root is to recognize the

Entrepreneur’s way of life and its implication for the organizational design of the SME support system.• An effective Entrepreneurial behavior

focuses on achieving net social and economic gain of the society.

Conclusion

Partnerships for SME promotion should be created strategically with the SME’s stakeholder development in mind.

Partnerships with local and national actors should be seen as a strategic action for the long term sustainability.

Enterprise Culture cannot be taught but, in the best of entrepreneurial traditions, become embedded via a process of experience