skills associated with entrepreneurship...

Management Science II Dr.T.J.Kamalanabhan

Indian Institute of Technology Madras

MODULE 7 Skills Associated With Entrepreneurship

ENTREPRENEURIAL

Technical Skills

• Specific Operation Technology

• Communication

• Interpersonal relations

• Organizational ability

• Coordinating Team members

• Environmental Observation

BUSINESS MANAGEMENTSKILLS

SKILLS TECHNICAL SKILLS

1



Management Skills

• Planning

• Formulating Goals

• Decision-making

• Motivating

• Marketing

• Accounting

• Negotiation Entrepreneurial Skills

• Inner Discipline

• Risk-seeking

• Innovation

• Change-orientation

• Persistency

• Visionary

2



Entrepreneur Vs. Administrator

Opportunity

Commitment

Control

Personal

OPPORTUNITY ADMINISTRATOR ENTREPRENEUR

Crave for Unique

functioning

Action orientation

Risk management

Revolutionary

Short decision windows

Recognize Multiple

groups

Negotiation

Risk reduction

Evolutionary

Long decision windows

3



Commitment

Control Entrepreneur Administrator

Administrator Entrepreneur

Knowledge of Lack of predictable resource needs

resource needs Target long-term

Lack of long-term performance control

Single stage Multistage functioning functioning Minimal exposure at Complete

concentration

Risk of Power, status and

financial rewards obsolescence recognized

Coordination Minimal dependency Efficiency in matching

resource life to requirements

Long resource life matched with short term need

Inertia Inflexibility

4



Personal Entrepreneur Administrator

Informal communication

Formal communication Preference for simple

business structures Defined authority and responsibility

Preference of known people Specific organizational

culture

Entrepreneurial Personality

Entrepreneurial Personality

Sociological

Characteristics Psychological Characteristics

5



Psychological Characteristics

• Highly confident

• Risk Taker

• Motivated reasoning

• Thirsting for the right answer

• Thinking logically

• Being practical Psychological Characteristics

• Inconsistency in Planning

• Blend with the environment

• Cognitive dissonance - Ability to comprehend chaos

• Lateral thinking - Thinking may not be supported rationally Entrepreneurial Influences

• Antecedent influences - the social environment they find themselves in

• The culture of the society- certain cultures encourage entrepreneurial activity, others may discourage it

• The situations they find themselves in such as employment

Antecedent Influences On The Entrepreneur

• Well-educated

• Young or Middle Aged

• Leaves managerial job to start business

6



• Willing to share ownership of business

• Starts business because of positive motivations Societal Influences

• Family business

• Proactive culture

• Social interactions are many

• Fostering independence

• Society is flexible

• Supportive relationships

• Encouragement of achievement and responsibility Situational Influences

• Monetary status

• Childhood environment

• Relationship with parents

• Work environment

• Level / quality of education

• Encounter with a role model Success And Failure Factors

• Hard Work • Perseverance • Motivation

7



• Social Skills • Leadership • Good Management • Integrity • Guts • Good Health • Common Sense

• Luck • Support of Family • Clear Initial Goals • Creativity • Ability to Accept Uncertainty

Intrapreneurship Imbibing a spirit of entrepreneurship within an existing organization as

an employee is called intrapreneurship

Intrapreneurial Culture

• Develop and emphasize on organizational vision, goals and

action plans.

• Rewards for suggestions, experimentation, and fruitful actions.

• Freedom to venture beyond a specific function / area.

• Encouraging responsibility and ownership

8



Environment Conducive To Intrapreneurship

• Encouragement of new ideas

• Encouragement of experimentation

• Acceptance of failure

• Providing ample opportunities

• Interdisciplinary approach

• Long term planning

• Encouragement of voluntary activities Environment Conducive To Intrapreneurship

• Rewards in tune with intrapreneurial characteristics

• Moral and professional support systems

• Encouragement of creative activities

• Team work dominated by discussions and openness. Characteristics Of Intrapreneurs

• Independent

• Direct involvement and less of delegation

• Ability to coordinate with team

• Respect for hierarchy

• May not openly encourage risky projects

9



Male Vs. Female Entrepreneurs

• The characteristics of male and female entrepreneurs seem to be very

similar

• The backgrounds of male and female entrepreneurs also have been found

to be similar

• However, certain subtle differences in motivation, types of ventures

started etc., have been identified.

Men & Women Entrepreneurs – Motivation

• Achievement –Strive to make things happen

• Personal independence- self-image as it relates to status through their

role in the corporation is unimportant

• Job satisfaction arising from the desire to be in control

• Achievement-accomplishment Independence of a goal Independence - to

do it alone

10



Men & Women Entrepreneurs- Reasons For Entering Into Entrepreneurship

• Dissatisfaction with present job

• Sideline in college, sideline to present job, or outgrowth of present job

• Discharge or layoff Opportunity for acquisition

• Job frustration

• Interest in and recognition of opportunity in the area

• Change in personal circumstances

11



Men & Women Entrepreneurs-Sources Of Funds

• Personal asset and savings

• Bank financing

• Investors Loans from friends and family

• Personal assets and savings

• Personal loans

12



Men & Women Entrepreneurs – Occupational Background

• Experience in line of work

• Recognized specialist or one who has gained a high level of achievement in the field

• Competent in a variety business functions

• Experience in area of business

• Middle-management or administrative-level experience in the field

• Service-related occupational background

13



Men & Women Entrepreneurs – Personality

• Optionalated and persuasive

• Goal oriented • Innovative and idealistic

• High Level of self-confidence

• Enthusiastic and energetic

• Must be own boss

• Flexible and tolerant • Goal oriented • Creative and realistic • Medium level of self-confidence Enthusiastic and energetic • Ability to deal with the social and economic environment

14



Women Entrepreneurs - Background

n business or

al arts

• Age when starting venture 25-35 Father was self-employed •• College-education-degree i Technical area •

First born child •

• Age when starting venture-:35-45 Father was self-employed •

Col1ege educated-degree in liber•

• First-born child

15



Men & Women Entrepreneurs – Support Groups

•

• Close friends

Friends, professional acquaintances (lawyers, accountants) •

• usiness associates B

pouse S

• Spouse

• Family Women's professional groups

• Trade associations

16



Men & Women Entrepreneurs – Types Of Business entures Started

onstructor

ducational services, • Consulting or public relation

V

• Manufacturing or C

• Service – related - e

17

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