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MGT 4550 - Family Business Management
Chapter 2 The Founder - The Entrepreneur Family Business Management, Concepts and Practice by A. Bakr Ibrahim & Willard H. Ellis Instructor: Dr. Irene Duhaime
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Mgt 4550 - Family Business Dr. Irene Duhaime Page
Wk 2 Class Schedule - Week 2 THE FOUNDER-ENTREPRENEUR Reading: Chapter 2 Case: The Steinberg Family, p.57 Project Teams Assigned Mgt Family Business Dr. Irene Duhaime Page
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Mgt 4550 - Family Business Dr. Irene Duhaime Page
Wk 2 Content Defining the Entrepreneur Roles of the Entrepreneur The Entrepreneurial Process - The Making of an Entrepreneur The Successful Entrepreneur Management Skills and Competence Prediction and Development Mgt Family Business Dr. Irene Duhaime Page
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Defining the Entrepreneur
Wk 2 Defining the Entrepreneur Definition Individual who sees an opportunity that others do not, and marshals the resources to exploit it Characteristics Creative, innovative high need for achievement & autonomy higher than average anxiety developed aesthetic sense lower than average interpersonal skills risk-takin K. De Vries Mgt Family Business Dr. Irene Duhaime Page
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Roles of the Entrepreneur
Wk 2 Roles of the Entrepreneur Innovator / Risk-taker Creativity Purpose driven Use of untried and unconventional methods Manager / Coordinator Marshall & control resources Formulate organizational strategy Select management structure Select management processes Mgt Family Business Dr. Irene Duhaime Page
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The Successful Entrepreneur The Entrepreneurial Factor
Wk 2 The Successful Entrepreneur The Entrepreneurial Factor Proactive Traits address problems before they occur and take action. Achievement orientation work is of highest quality use of feedback for quality improvements seize opportunity when & where found. Commitment to others concerned about customer needs and wants Mgt Family Business Dr. Irene Duhaime Page
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Management Skills and Competence
Wk 2 Management Skills and Competence Mgt Family Business Dr. Irene Duhaime Page
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Mgt 4550 - Family Business Dr. Irene Duhaime Page
entrepreneurs part adventurer part misfit part benefactor part exploiter part genius part fool (Gersick) Mgt Family Business Dr. Irene Duhaime Page
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Mgt 4550 - Family Business Dr. Irene Duhaime Page
founders lasting influence on firm’s . values . ethical standards . decision rules of thumb . business choices (what in and not in) . Culture (Gersick) Mgt Family Business Dr. Irene Duhaime Page
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“Myths” about founders
. stories about how business started . overcame obstacles . survived despite the odds (Gersick) Mgt Family Business Dr. Irene Duhaime Page
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Founder as entrepreneur
. risk taker . creative idea . lone ranger . escape other firm, reporting to others (Gersick) Mgt Family Business Dr. Irene Duhaime Page
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Founders’ motivations
negative . leave other jobs . frustration with bosses . lack of career progress (Gersick) Mgt Family Business Dr. Irene Duhaime Page
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Mgt 4550 - Family Business Dr. Irene Duhaime Page
Negative motivations impact on companies they found? . culture tolerant of individualists . resist authority hierarchies . informal org’l structures, don’t want to formalize . few/no formal job descriptions (Gersick) Mgt Family Business Dr. Irene Duhaime Page
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Founders’ motivations
positive . exploit opportunity . seek challenge, excitement . imitate other inspiring founders (Gersick) Mgt Family Business Dr. Irene Duhaime Page
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Mgt 4550 - Family Business Dr. Irene Duhaime Page
Positive motivations impact on companies they found? . tendency to opportunism . choices explained as taking advantage of good deals (Gersick) Mgt Family Business Dr. Irene Duhaime Page
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Traits of entrepreneurs
high need for achievement risk taking propensity tolerance for ambiguity creativity intuition flexibility self-confidence (Gersick) Mgt Family Business Dr. Irene Duhaime Page
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Mgt 4550 - Family Business Dr. Irene Duhaime Page
Traits - continued High need for independence & autonomy internal locus of control adapt readily to change dominance low need for conformity (Gersick) Mgt Family Business Dr. Irene Duhaime Page
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Mgt 4550 - Family Business Dr. Irene Duhaime Page
Shareholders 2 Ownership 5 4 7 1 3 Family Business 6 Family Members Employees Family Business System Figure (Gersick) Mgt Family Business Dr. Irene Duhaime Page
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