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Chapter 2,
Entrepreneurial Intentions and
Corporate Entrepreneurship
Vishnu Parmar, IBA
University of Sindh
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
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
Key Elements in Entrepreneur’s
Background
3-2
Supportive childhood family
environment.
Having a father who is selfemployed helps.
Education is important.
Aged 22-45 when starting venture.
Work history: dissatisfied with
company job but has technical
knowledge.
Bill Gates
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© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
3-3
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.
Who are your entrepreneurial role models?
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© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Minority Entrepreneurs
• Male vs Female
• Other communities like Asian American,
African, Hispanic
• Bohra, Memon, Dewan, Chinoti, etc
Male Entrepreneur Characteristics
Motivation
Departure Point
Make Things Happen, Role In Corp. Not Important,
Desire To Be In Control
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
Background
Opinionated/Persuasive, Goal-Oriented,
Innovative/Idealistic, Self-Confident, Energetic
Age = 25-35, Father Self-Employed, College-Educated,
Firstborn Child
Support Groups
Friends, Professional Acquaintances (Lawyers,
Accountants), Associates, Spouse
Business Started
Manufacturing/Construction
Female Entrepreneur Characteristics
Motivation
Departure Point
Fund Sources
Accomplishment Of Goal, Do It Alone
Job Frustration, Recognition Of Opportunity, Change In
Personal Circumstance
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
3-5
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.
Managerial vs Entrepreneurial
Decision Making
• Entrepreneurial Management is distinct
from traditional management in terms of
eight dimensions (Table 2.1)
1.
2.
3.
4.
Strategic Orientation
Commitment to Opportunity
Commitment to resources
Control of Resources
Managerial vs Entrepreneurial
Decision Making
5.
6.
7.
8.
Management Structure
Reward Philosophy
Growth Orientation
Entrepreneurial Culture
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)
Table 2.3 (Characteristics of an
Entrepreneurial Environment)
1. Organization operates on frontiers of
2.
3.
4.
5.
6.
technology
New ideas encouraged
Trial and error encouraged
Failure Allowed
No Opportunity Parameters
Resources Available and Accessible
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
Leadership Characteristics of
Corporate Entrepreneurs
1.
2.
3.
4.
5.
6.
7.
Understands the Environment
Is Visionary and Flexible
Creates Management Options
Encourages Teamwork
Encourages Open Discussion
Builds a coalition of supporters
Persists