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CHAPTER 2 ENTREPRENEURIAL INTENTIONS AND CORPORATE ENTREPRENEURSHIP

Entrepreneurial action is most often intentional. Entrepreneurs intend to pursue certain opportunities, enter new market, and offer new product. Intentions capture the motivational factors that influence a behavior, they are indications of how hard people are willing to try. The higher the perceived desirability and feasibility, the stronger the intention to act entrepreneurially. ENTREPRENEUR BACKGROUND AND CHARACTERISTICS 1. Education Education is important in upbringing the entrepreneur. Its importance is reflected not only in the level of education obtained but also in the fact that it continues to play a major role in helping the entrepreneurs cope with the problems they confront. 2. Age Age is related with the entrepreneurial experience and energy level of the entrepreneurs that they will face during their life from young to old. 3. Work history Work history can influence the decision to launch a new entrepreneurial venture, but it also plays a role in the growth and eventual success of the new venture.

ROLE MODEL AND SUPPORT SYSTEM One of the most important factors influencing entrepreneurs in their career path is their choice of role model. Role model can also serve a supporting capacity as mentors during and after the launch of a new venture. An entrepreneur needs a strong support and advisory system in every phase of a new venture. This support system is perhaps most crucial during the start up phase, as it provides information, guidance, advice on such matters as organizational structure, obtaining needed financial resources, and marketing. Two role of support system: 1. Moral support network 2. Professional support network

MINORITY ENTREPRENEURS Another individual characteristic among entrepreneurs that has been studied is gender. There has been significant growth in female self-employment, with women now starting new ventures at a higher rate than men. ENTREPRENEURIAL INTENTIONS WITHIN EXISTING ORGANIZATION Existing companies can also pursue opportunities, but this requires that management of those companies create an environment that encourages employees to think and act entrepreneurially. This environment will help people realize that entrepreneurial behavior within company is both desirable and feasible. This builds a strong entrepreneurial intention. MANAGERIAL VERSUS ENTREPRENEURIAL DECISION MAKING Entrepreneurial management is different from traditional management in term of eight dimensions. 1. Strategic orientation 2. Commitment to opportunity 3. Commitment of resources 4. Control of resources 5. Management structure 6. Reward philosophy 7. Growth orientation 8. Entrepreneurial culture CORPORATE ENTREPRENEURSHIP Characteristics of an entrepreneurial environment: 1. Organization operates on frontiers of technology 2. New ideas encouraged 3. Trial and error encouraged 4. Failures allowed 5. No opportunity parameters 6. Resources available and accessible 7. Multidiscipline teamwork approach 8. Long time horizon 9. Volunteer program

10. Appropriate reward system 11. Sponsors and champions available 12. Support of top management Leadership characteristics of a corporate entrepreneur: 1. Understand the environment 2. Visionary and flexible 3. Create management options 4. Encourage teamwork 5. Encourage open discussion 6. Build a coalition of supporters 7. Persist

ESTABLISHING CORPORATE ENTREPRENEURSHIP IN THE ORGANIZATION 1. To secure a commitment to corporate entrepreneurship in the organization by top, upper, and middle management level. 2. Ideas and general areas that top management is interested in supporting should be identified, along with the amount of risk money that is available to develop the concept further. 3. A company needs to use technology to make itself more flexible. 4. The organization should be a group of interested managers who will train employees as well as share their experiences. 5. The organizations need to develop ways to get closer to customers. 6. An organization that wants to become more entrepreneurial must learn to be more productive with fewer resources. 7. The organizations need to establish a strong support structure for corporate entrepreneurship. 8. Support must also involve tying the rewards to the performance of the entrepreneurial unit. 9. The organization needs to implement evaluation system that allows successful entrepreneurial units to expand and unsuccessful one to be eliminated.

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