(Entrepreneurial Intentions ENTR 452, Chapter 2 (Entrepreneurial Intentions and Corporate Entrepreneurship)

ENTREPRENEURIAL INTENTIONS WITHIN EXISTING ORGANIZATIONS Corporate entrepreneurship or “intrepreneurship” is becoming more common. Top management must create an environment that encourages employees to think and act entrepreneurially. Employees will realize that entrepreneurial action within the firm is both personally desirable and feasible.

MANAGERIAL VERSUS ENTREPRENEURIAL DECISION MAKING Entrepreneurial management is distinct from traditional management in terms of: Strategic orientation. Commitment to opportunity. Commitment of resources. Control of resources. Management structure. Reward philosophy. Growth orientation. Entrepreneurial culture.

TABLE 2.3 - CHARACTERISTICS OF AN ENT’L ENVIRONMENT

TABLE 2.4 - LEADERSHIP CHARACTERISTICS OF A CORPORATE ENTREPRENEUR

STEPS TO ESTABLISHING CORPORATE ENTREPRENEURSHIP Secure a commitment from all management levels Identify, select, and train corporate entrepreneurs Step 2: Identify ideas/areas that interest top management Identify amount of risk money available Establish program expectations and target results Establish time frame, volume, and profitability requirement Establish mentor/sponsor system

STEPS TO ESTABLISHING CORPORATE ENTREPRENEURSHIP Use technology to ensure organizational flexibility Step 4: Identify interested managers to train employees Step 5: Develop ways to get closer to the customers Step 6: Learn to be more productive with fewer resources

STEPS TO ESTABLISHING CORPORATE ENTREPRENEURSHIP Establish a strong support structure for corporate entrepreneurship Step 8: Tie rewards to the performance of the entrepreneurial unit Finally: Evaluation system should be such that successful entrepreneurial units thrive and unsuccessful ones are eliminated

ESTABLISHING CORPORATE ENTREPRENEURSHIP IN THE ORGANIZATION New ventures started within existing firms often perform worse than those started independently by entrepreneurs. - hard to maintain long-term commitment - lack of freedom to make decisions - constrained environment On average, independent start-ups become: - Profitable twice as fast. - End up twice as profitable.

HOW ENTREPRENEURS THINK Learn from business failure How entrepreneurs deal with loss and achieve emotional recovery is important These can allow the entrepreneur to be motivated to try again and improve the next time they start a new venture. Know that there is often oscillation between a loss orientation and a restoration orientation