INTRODUCTION TO

ENTREPRENEURSHI
P
THE REVOLUTIONARY IMPACT OF
ENTREPRENEURSHIP
Entrepreneurs are individuals who recognize opportunities where
others see chaos or confusion
A Distinction

Entrepreneur VS small Business Owner (businessman)

 Small business owner (Businessman)

 Businessman may prefer a more stable and less aggressive approach
to running these business, they expecting stable sales, profits, and
growth.
 Can be viewed as managers of small business.
 Entrepreneur
 Their principal objectives are innovation, profitability, and growth
Entrepreneur

 No single definition of entrepreneur exists

 French “entreprendre” (to undertake”)
 An innovator or developer who recognizes and seizes
opportunities; converts those opportunities into
workable/marketable ideas; add value through time, effort,
money, or skills; assumes the risks of the competitive
marketplace to implement these ideas; and realizes the rewards
from these efforts
Entrepreneurship

“A dynamic process of vision, change, and creation that requires an

application of energy and passion toward the creation and
implementation of new ideas and creative solutions”
The myths of entrepreneurship

 Doers, Not Thinkers  All Entrepreneurs Nee is Money

 Born, Not Made  Unstructured and Chaotic
 Always inventors  Most Entrepreneurial initiatives
fail
 Academic and social misfits
 The Gamblers / Risk Taker
 Must fit the profile
The individual
entrepreneurial
mind-set
The dark side of entrepreneurship

The entrepreneur’s confrontation

with risk
Financial Risk
Career Risk
Family and Social Risk
Psychic Risk
Entrepreneurial stress
Stress can be viewed as a function of discrepancies between a
person’s expectations and ability to meet demands, as well as
discrepancies between the individual’s expectations and
personality

SOURCES OF STRESS DEALING WITH STRESS

 Loneliness  Networking
 Immersion  Getting away from it all
 People problems  Communicating with employees
 Need to achieve  Finding satisfaction outside the
company
 Delegating
 Exercising rigorously
The entrepreneurial ego

 Overbearing need for control

 Sense of distrust
 Overriding desire for success
 Unrealistic optimism
 A model of entrepreneurial
motivation
Expectation/O
Expectation/O Intrinsic
Intrinsic //
utcome
utcome Extrinsic
Extrinsic
Comparison
Comparison Rewards
Rewards
PP
PC
PC PE
PE GG

Decision
Decision to
to Entrepreneuri
Entrepreneuri
behave
behave Entrepreneuri
Entrepreneuri Firm
Firm
ally
ally
entrepreneuri
entrepreneuri ally
ally strategy
strategy Outcomes
Outcomes
Management
Management
ally
ally

BE
BE IDEA
IDEA

PC = Personal
Implementatio
Implementatio Characteristics
n/
n/ outcome
outcome PE = Personal
Perception Environment
Perception
PG = Personal Goals
The CORPORATE
entrepreneurial
mind-set
 Four major developments that explain the
emergence of entrepreneurial economy – Peter
drucker

1. The rapid evolution of knowledge and technology promoted the use

of high-tech entrepreneurial start-up
2. Demographic trends such as two-wage-earner families, continuing
education of adults, and the aging population added fuel to the
proliferation (Penyebaran) of newly developing ventures
3. The venture capital market became an effective funding mechanism
for entrepreneurial ventures
4. American industry began to learn how to manage entrepreneurship
Five important steps to establish
the policies that support innovation
1. Set explicit innovation goals
2. Create a system of feedback and
positive reinforcement
3. Emphasize individual responsibility
4. Provide rewards for innovative ideas
5. Do not punish failures
Factors in large corporations who
have exhibited successful innovations
Atmosphere and vision
Orientation to the market
Small, Flat organizations
Multiple approaches
Interactive learning
Skunk works
Creativity and
innovation
LAUNCHING ENTREPRENEURIAL VENTURES
RADICAL INNOVATION INCREMENTAL INNOVATION
The launching of  The systematic
inaugural breakthrough. evolution of a
These innovation take
experimentation and product or service
determined vision, into newer or
which are not larger markets
necessarily managed
but must be recognized
and nurtured
Opportunity identification :
The search for new ideas
 Opportunity
Identification is central to
the domain of entrepreneurship
 Thefirst step for any entrepreneur is the
identification of a “Good Idea”. However,
the search for good idea is never easy.
Sources of Innovative Ideas

 Trends
 Societal Trends : Fitness Growth
◦Process Needs
 Technology Trends : Internet ◦Industry and Market
Advances
 Economic Trends : dual wage- Changes
earner families
 Government Trends : terrorism,
◦Demographic
petroleum prices changes
 Unexpected occurrences
 Incongruities
◦Perceptual changes
◦Knowledge-based
concepts
The role of creative thinking

Two important aspects of creativity

exist
Process : Goal oriented
People : resources that determine the
solution
Steps of creative process

Phase 1: Background or Knowledge

accumulation
Phase 2: The incubation Process
Phase 3: The Idea experience
Phase 4: Evaluation and
Implementation
Types of Innovation

 Invention: the creation of new product, service

or process
 Extension: the expansion of product, service or
process
 Duplication:the replication of an already
existing product, service, or process
 Synthesis:
the combination of existing
concepts and factors into a new formulation
Principles of Innovation

 Be action oriented ◦Start small

 Makethe product, ◦Aim high
process, or service ◦Learn from failures
simple and
◦Follow a milestone
understandable
schedule
 Makethe product,
◦Reward heroic activity
process, or service
customer-based. ◦Work, work, work
 Reward heroic activity
 Work, work, work
The social and
ethical
perspectives of
entrepreneurship
INTRODUCTION TO ENTREPRENEURSHIP – CHAPTER 4
Social entrepreneurship

A new form of entrepreneurship that

exhibits characteristics of nonprofits,
governments, and business. The social
entrepreneurship process begins with a
perceived social opportunity tat is
translated into an enterprise concept;
resources are then ascertained and
acquired to execute the enterprise's goals
Characteristics of social
entrepreneur
 Adoption of a mission to create and sustain social value (beyond
personal value)
 Recognition and relentless pursuit of opportunities for social
value
 Engagement in continuous innovation and learning
 Action beyond the limited resources at hand
 Heightened sense of accountability
The social enterprise challenge

 Social Obligation (response the social issue through the

obedience of the law)
 Social responsibility (accepting responsibility for various
program)
 Social responsiveness (willing to be evaluated by the public for
various activities)
Hawken and Mcdonough’s recommendation
on environmental movement

 Eliminate the concept of waste

 Restore accountability
 Make prices reflect costs
 Promote diversity
 Make conservation profitable
 Insist on accountability of nations
Ethics

Ethics provides the basic rules or

parameters for conducting any activity in
an “acceptable” manner.
 Ethical considerations in Corporate Entrepreneurship

Organizational Internal Network Issues Leadership Issues

obstacles Policies
Structur & Strategic
Systems People Culture
es Procedur direction
•
e No vision • III-
LONG, from the defined
COMPLEX top
RESTRICTED APPROVAL values
COMMUNICA • Lack of
MISDIRECTE CYCLES
commitm • Parochi • Lack of
TION fit
D REWARD EXTENSIVE ent from al bias
CHANNELS
& DOCUMENTATIO Senior • “Turf” • Values
Managerial dilemma N executive
EVALUATION protecti that
LACK OF REQUIREMENTS
s
SYSTEM on conflicti
ACCOUNTAB • No role
UNREALISTIC ng with
ILITY PERFOMANCE models at
CRITERIA the top manage
rs
AMORAL
CARRESIM
PARADIGM
Ethical
consequences

Solutions ASSESSMENTOF ENTREPRENEURIAL ACTIVITY + CORPORATE

ENTREPRENEURSHIP TRAINING PROGRAM