The Entrepreneurial Mindset Entrepreneurship

Managerial Vs Entrepreneurial Decision Making Dimensions of change Strategic Orientation Commitment of resources Control of resources Management Structure Reward Philosophy Growth Orientation Entrepreneurial Culture

Distinguishing Traditionally from Entrepreneurially Managed Firms Entrepreneurial Focus Conceptual Dimension Administrative Focus Driven by perception of opportunity Strategic Orientation Driven by controlled resources Many stages with minimal exposure Commitment of resources A single stage with complete commitment out of decision Episodic use or rent of required resources Control of Resources Ownership or employment of required resources Flat with multiple informal networks Management structure Hierarchy Based on value creation Reward philosophy Based on responsibility and seniority Rapid growth is top priority; risk accepted to achieve growth Growth orientation Safe, slow and steady Promoting broad search for opportunities Entrepreneurial Culture Opportunity search restricted by controlled resources, failure punished.

Entrepreneurial Intentions “ The motivational factors that influence individuals to pursue entrepreneurial outcomes.” Individuals have stronger intentions to act when taking action is perceived to be feasible. Entrepreneurs self efficacy, defined as, the conviction that one can successfully execute the entrepreneurial process, determines this perception of feasibility. Perceived desirability, defined as, the degree to which an individual has a favorable or unfavorable evaluation of the potential entrepreneurial outcome, is another factor that determines entrepreneurship spirit.

Entrepreneur Background & Characteristics Education - Formal education is not necessary for starting a new business. - Research shows education provides a good background, although majority of successful venture owners like Henry Ford, Bill Gates were college dropouts. - Only a few have relevant degrees in engineering, science or math. 2. Personal Values - Research shows that entrepreneurs have different set of attitudes in the field of management process. - Five core characteristics are superior product quality, quality service to customers, flexibility & ability to adapt to changes in the market, high caliber management, honest & ethics in business.

Entrepreneur Background & Characteristics 3. Age - Most entrepreneurs initiate their entrepreneurial careers between the chronological ages of 22 and 45. - Generally, Male entrepreneurs start their first venture in their early 30’s whereas women do so in their middle 30’s. 4. Work History - Dissatisfaction with various aspects of one’s job such as lack of challenge, or promotional opportunities, frustration, boredom etc motivates the launching of new venture.

Role Models & Support Systems Moral Support Network: Individuals who give psychological support, advice to the entrepreneur like friends, relatives etc. Professional Support Network: includes mentor, business associates, suppliers, trade associations, or personal affiliations who give advice and counseling to the entrepreneur.

Comparison of Male & Female Entrepreneurs Characteristic Male Entrepreneurs Female Entrepreneurs Motivation Achievement-strive to make things happen, Personal independence, Job satisfaction arises from the desire to be in control Achievement- Accomplishment of a goal, independence-to do it alone Departure point Dissatisfaction with present job, sideline in college, present job, or outgrowth of present job, discharge or layoff, opportunity for acquisition Job frustration, interest in and recognition of opportunity in the area, change in personal circumstances, personal assets & savings, personal loans Sources of funds Personal assets & savings, bank financing, investors, loans from friends and family Personal assets & savings, personal loans Occupational background Experience in line of work, Recognized specialist or achiever, competent in variety of business functions Experience in area of business, Middle management or administrative level experience in the field, service related occupational background.

Comparison of Male & Female Entrepreneurs Characteristic Male Entrepreneurs Female Entrepreneurs Personality characteristics Opinionated & persuasive, Goal oriented, innovative & idealistic, High level of self confidence, Enthusiastic & energetic, Must be own boss Flexible & tolerant, goal oriented, Creative & realistic, medium level of self confidence, enthusiastic & energetic, ability to deal with the social & economic environment. Background Age= 25-35, father was self-employed, college educated (degree in business or technical area), first born child Age= 35-45, father was self employed, college educated (degree in liberal arts), firstborn child Support groups Friends, professional acquaintances(lawyers, accountants), business associates, spouse Close friends, spouse, family, women’s professional groups, trade associations Type of business started Manufacturing or construction Service related- educational services, consulting or public relations

Characteristics of an Entrepreneurial Environment Organization operates on frontiers of technology New ideas encouraged Trial & error encouraged Failures allowed No opportunity parameters Resources available & accessible Multidiscipline teamwork approach Long time horizon Volunteer program Appropriate reward system Sponsors & champions available Support of top management

Presentation Tomorrow !! Presentations on famous entrepreneurs and successful businesses Group Strength: 4 students Time: 5 mins per group Dress Code: Formal Marks: 2.5 absolute