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 self-employed helps. Education is important. Aged 22-45 when starting venture. Work history: dissatisfied with company job but has technical knowledge. Bill Gates McGraw-Hill/Irwin © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 3

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? McGraw-Hill/Irwin © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 4

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

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

Occupational Background 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

Men Vs. Women Entrepreneurs 3-4 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. (Hisrich & Peters, p. 76) McGraw-Hill/Irwin © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 5

Entrepreneur Vs. Inventor 3-5 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? McGraw-Hill/Irwin © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 6

Managerial vs Entrepreneurial Decision Making Entrepreneurial Management is distinct from traditional management in terms of eight dimensions (Table 2.1) Strategic Orientation Commitment to Opportunity Commitment to resources Control of Resources

Managerial vs Entrepreneurial Decision Making 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) Organization operates on frontiers of 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) Multidiscipline teamwork approach Long Time Horizon Volunteer Program Appropriate Reward System Sponsor and Champions available Support of top management

Leadership Characteristics of Corporate Entrepreneurs Understands the Environment Is Visionary and Flexible Creates Management Options Encourages Teamwork Encourages Open Discussion Builds a coalition of supporters Persists