THE ENTREPRENEURIAL INTENTIONS AND CORPORATE ENTREPRENUERSHIP Chapter 2

Entrepreneurial Feelings

 Locus of Control A quality indicating the sense of control that a person has over his life.  Internal Locus of Control Believing that one’s success depends on one’s own efforts.  External Locus of Control Believing that one’s life is controlled more by luck or rather than one’s own efforts.

Table 2.1 Checklist for Feelings about Control When things go right and are terrific for you, do you think, “Its mostly luck!”? YesNo Do you think that if you decide to do something, you’ll do it and nothing can stop you? YesNo If you want something, do you ask for it rather than wait for someone to notice you and “just give it to you”? YesNo Even though it’s feering to try something new, are you the kind who tries it? YesNo Even though people tell you “it can’t be done,” do you have to find out for yourself? YesNo

Entrepreneurial Feelings  Feelings of Independence and Need for Achievement  Need for Independence signifies the feeling of being one’s own boss and is one of the strongest needs of an entrepreneur.  Need for Achievement is derived from Maslow Need Theory, which states that a person with a high need for achievement is driven by the desire to succeed and measures that success against a personal standard of excellence.

Table 2.2 Checklist for Feelings about Independence I want to be financially independent.YesNo I often need to ask other people’s opinions before I decide on important things. YesNo If my friends wont go to a movie I want to see, I will go by myself YesNo I want the approval of others.YesNo I hate to go shopping for clothes aloneYesNo

Entrepreneurial Feelings  Risk Taking  Starting a new venture involves putting at stake money, hard work and lots of time.  This involves a certain amount of risk as success is not guaranteed and all efforts and resources could go wasted.  Only a person willing to risk it all can succeed.

Table 2.3 Checklist for Willingness to Take Risks Do you like trying new foods, new places, and totally new experiences? YesNo Can you walk up to a total stranger and strike up a conversation? YesNo Do you need to know the answer before you’ll ask the question? YesNo Do you need to know that it’s already been done before you are willing to try it? YesNo Can you take risks with money, that is, invest, and not know the outcome? YesNo

Entrepreneurial Background and Characteristics  Childhood Family Background  A child’s future occupation is shaped by what kind of environment he or she has at home.  Being the first born is also believed to have some effect on the self-confidence of the person and ability to start a new venture.  If a parent is an entrepreneur then its natural that the child will find it easy to become one as well.  Their support is also a deciding factor in the success of the entrepreneur. Birth Order Parents Occupation Social Status Relationship with parents (Fathers for female E)

Entrepreneur Statement My father was so consumed by the venture he started and provided such a strong example, it never occurred to me to go to work for anyone else

Entrepreneurial Background and Characteristics  Education  There are numerous success stories of entrepreneurs who were high school dropouts.  But most of the entrepreneurs have some kind of higher education to their credit.  It is not necessarily business related education but is enough for the entrepreneur to better understand his business and define new ways to grow it. Technical Vs MBA degree

Entrepreneurial Background and Characteristics  Personal Values  An entrepreneur has a very distinct set of values that make him break off from conventional practices and start his own venture.  Values like: superior product quality; quality service to the consumers; flexibility to adapt to change in the market; high caliber management; and honesty and ethics in business practices, define an entrepreneur’s mind frame. When is it permissible to tell a lie? Leadership traits- creativity- opportunism- intution

 Age  It is necessary that an entrepreneur begins the new venture at a time when he has the maximum amount of energy – experience- financial support  The optimal age for such activity would be somewhere from the age of 22 to the age of 45.  At this time a person has the right amount of stamina and experience. Entrepreneurial Background and Characteristics

 Work History  The work history of a person is one of the major factors in prompting a person to start a new business.  If the person was not satisfied with his past experience, then he might find it easier to come up with good business practices that suit his taste and yield the kind of results that he wants.  And what he has learnt from his experience may also help him in growing the business. Entrepreneurial Background and Characteristics Lack of opportunities- frustration & boredom-> Motivation launching new venture Managerial experience/skills

Motivation  Every entrepreneur is motivated by one thing or the other when starting a new venture.  The motivational force helps the person overcome all the problems associated with the business and guides him towards the achievement of his goals.  This motivation could be making money or being independent of others and being one’s own boss.

Role Models  A role model is important in an entrepreneur’s life because it influences every action that he performs.  A role model can be one’s parents, siblings, close relatives or other entrepreneurs.  An entrepreneur follows the example of his role model in everything and feels motivated when trying to personify his role model.

 Entrepreneurs need advice and counsel throughout the establishment of the new venture which can be obtained from:  Mentors  Business associates  Trade associations  Personal affiliations Support Systems Social/ professional Support Network Expert in field- advising buddy Smeda- Consultants, lawyers Clients & buyers- Suppliers- competition industry New developments & provide overall industry data Shared hobbies-sporting events-clubs Schools alumni ( source of referrals, advice)

Types of social support network

 Individuals who give psychological support to an entrepreneur.  Entrepreneurs need to establish a moral- support network of family and friends.  Friends can provide:  Advice.  Encouragement.  Understanding.  Assistance.  Relatives can be strong sources of moral support, particularly if they are also entrepreneurs. Support Systems Moral-Support Network

Male Vs Female Entrepreneurs  Differences in terms of motivation, business skills, occupational background, support systems and sources of funding  Men- drive to control their own destinies, to make things happen  Women- need of achievement arising – job frustration- promotional opportunities

CharacteristicsMale EntrepreneursFemale Entrepreneurs MotivationAchievement, Personal Independence, Job Satisfaction Achievement, Independence Departure PointsDissatisfaction with current job, Layoff, Opportunity for Acquisition, Sidelined Job Frustration, Change in Personal Circumstances, Recognition of Opportunity Sources of FundsPersonal Assets and Savings, Bank Financing, Investors, Loans from Friends and Family Personal Assets and Savings, Personal Loans Occupational Background Experience in Line of Work, Recognized Specialist, Competent in a Variety of Business Functions Experience in Area of Business, Service-related Background, Middle Management Experience Personality Characteristics Opinionated and Persuasive, Goal Oriented, Innovative, Idealistic, High Level of Self Confidence, Enthusiastic and Energetic, Must be Own Boss Flexible and Tolerant, Goal Oriented, Creative, Realistic, Medium Level of Self Confidence, Enthusiastic, Energetic Support GroupsFriends, Professional, Business Associates, Spouse Close Friends, Spouse, Family, Women’s Professional Groups, Trade Associations