Entrepreneurhip chapter 2 Entrepreneurial Intention

Entrepreneur

1. Chapter 2,
Entrepreneurial Intentions and
Corporate Entrepreneurship
Vishnu Parmar, IBA
University of Sindh

2. Intention to Act Entrepreneurially
•Entrepreneurial Intentions: The motivational
factors that influence individuals to pursue
entrepreneurial outcomes
•Entrepreneurial Self-efficacy: The conviction that
one can successfully execute the entrepreneurial
process
•Perceived Desirability: The degree to which an
individual has a favorable or unfavorable
evaluation of the potential entrepreneurial
outcomes

3. Entrepreneur Background and
Characteristics
•Education
•Age
•Past Work Experience
•Role Models and Support Systems
•Moral Support Network (Psychological
Support to an entrepreneur)
•Professional Support Network

4. Key Elements in Entrepreneur’s
Background
Bill Gates
✔Supportive childhood family
environment.
✔Having a father who is
self-employed helps.
✔Education is important.
✔Aged 22-45 when starting venture.
✔Work history: dissatisfied with
company job but has technical
knowledge.
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© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

5. Role Models
parents, relatives, friends or
entrepreneurs in the community.
✔may serve as mentors.
✔may help establish a moral and
professional support network.
✔invaluable source of counsel 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

6. Minority Entrepreneurs
•Male vs Female
•Other communities like Asian American,
African, Hispanic
•Bohra, Memon, Dewan, Chinoti, etc

7. Male Entrepreneur Characteristics
Motivation
Make Things Happen, Role In Corp. Not Important,
Desire To Be In Control
Departure Point
Dissatisfied With Present Job, Sidelines,
Discharged/Laid-Off, Acquisition Opportunity
Fund Sources
Personal Assets/Savings, Bank, Investors,
Family/Friends Loans
Occupational
Background
Experience, Recognized Specialist, Competent In
Business Functions
Personality
Opinionated/Persuasive, Goal-Oriented,
Innovative/Idealistic, Self-Confident, Energetic
Background
Age = 25-35, Father Self-Employed, College-Educated,
Firstborn Child
Support Groups
Friends, Professional Acquaintances (Lawyers,
Accountants), Associates, Spouse
Business Started
Manufacturing/Construction

8. Female Entrepreneur Characteristics
Motivation
Accomplishment Of Goal, Do It Alone
Departure Point
Job Frustration, Recognition Of Opportunity, Change In
Personal Circumstance
Fund Sources
Personal Assets/Savings, Personal Loans
Occupational
Background
Experience, Mid-Management/Administrative
Experience, Service Occupation
Personality
Flexible/Tolerant, Goal-Oriented, Creative & Realistic,
Self-Confident, Energetic, Social
Background
Age = 35-45, Father Self-Employed, College Educated
(Liberal Arts), Firstborn Child
Support Groups
Friends, Spouse, Family, Women’s Prof. Groups, Trade
Associations
Business Started
Service-Related

9. Class Activity

Highlight the motivational factors to become
an entrepreneur.

10. Men Vs. Women
Entrepreneurs
❖motivated to achieve
independence and ‘make
things happen.’
❖Departure point: job
dissatisfaction, layoff.
❖Support group: friends,
professional
acquaintances.
❖Initiates between ages
25-35. More likely to
start a business in
manufacturing,
construction or high
tech.
❖motivated to
accomplish a goal and
achieve independence.
❖Departure point: job
frustration, change in
personal
circumstances.
❖Support group:
spouse, family, close
friends.
❖Initiates between ages
35-45. More likely to
start a service
business.Most other dimensions show no differences.
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(Hisrich & Peters, p. 76)
© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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

12. Table 2.1 – Distinguishing Entrepreneurially from
Traditionally Managed Firms

13. Establishing a Culture for Corporate
Entrepreneurship
•Corporate Entrepreneurship means
entrepreneurial action within an
established organization
•In establishing an entrepreneurial
environment within an established
organization, certain factors and
leadership characteristics need to be
present (Table 2.3)

14. Table 2.3 (Characteristics of an
Entrepreneurial Environment)
1.Organization operates on frontiers of
technology
2.New ideas encouraged
3.Trial and error encouraged
4.Failure Allowed
5.No Opportunity Parameters
6.Resources Available and Accessible

15. Table 2.3 (Characteristics of an
Entrepreneurial Environment)
7.Multidiscipline teamwork approach
8.Long Time Horizon
9.Volunteer Program
10.Appropriate Reward System
11. Sponsor and Champions available
12. Support of top management

16. Leadership Characteristics of
Corporate Entrepreneurs
1.Understands the Environment
2.Is Visionary and Flexible
3.Creates Management Options
4.Encourages Teamwork
5.Encourages Open Discussion
6.Builds a coalition of supporters
7.Persists