1. Marvin Ryder Assistant Professor, Marketing & Entrepreneurship MBA P715 Entrepreneurship Week 2

2. Psychological Triggers for Entrepreneurship 1)Need for control – my hours, my location Seems to be disproportionately important: Middle child; moved frequently; rebellious, impulsive; perceived rejection by others; difficulty with authority 2)Need for creativity – realize a dream, use my talents, do something interesting 3)Need for employment – no job opportunities to match perceived skill set

3. Psychological Triggers for Entrepreneurship - Continued 4)Need for money – earn more money, keep more of what one earns for others 5)Need to exploit an opportunity – take advantage of something that others are missing 6)Need for status/achievement – be an example to others, continue a family tradition Note: many entrepreneurs face life-long battles with low self-esteem – Entrepreneur’s paradox Source: Doss, Mazzarol, Volery – Triggers and Barriers Affecting Entrepreneurial Intentionality, 1997

4. The Genesis of Entrepreneurship Entrepreneur Perception of Opportunity Consumer Demand Industry Structure Environmental Trends Venture Creation Window of Opportunity Barriers: 1) Lack of personal or financial capital 2) Compliance costs – taxes, fees, training 3) “Hard” reality – start-up too difficult, too much risk, window too small

5. Types of Business Start-ups  Product innovators – Hewlett-Packard, Ron Popeil, Bill Gates  Solo, self-employed entrepreneurs – plumber, consultant  Resource exploiters – real estate developer, mining company  Economy-of-scale exploiter – discount or big box store  Workplace/workforce support – temp agency, machine shop  Takover artists – buy a company and grow it – John Y. Brown and KFC  Capital aggregators – T. Boone Pickens, Ross Perot, Warren Buffett  Market speculators  Franchise entrepreneurs

6. Entrepreneurial Work Environment Leadership StyleAutocratic/Directive Decision-makingCentralized/no delegation Impulsive/little conscious planning Operating and strategic decisions have equal importance Time HorizonShort – one day, one week, one month PowerClose to the entrepreneur Workplace climateHighly uncertain/poor information flows Corporate StructureLack of formal organization chart “Spider web” structure InfrastructureLack control & information systems Few standard procedures & rules Large horizontal span of control