1. Chapter 1 – The Entrepreneurial Revolution

2. Entrepreneurs Challenging The Unknown

3. Entrepreneurship: A Perspective

4. ENTREPRENEURSHIP Entrepreneurship is being taken as a process of discovering, evaluating and exploiting opportunities in the name of an idea, spending time as well as capital on an uncertain venture.

5. ENTREPRENEURS “Entrepreneurs are risk takers, willing to roll the dice with their money or reputation on the line in support of an idea. They willingly assume responsibility for the success or failure of a venture.” “Innovation is specific instrument of entrepreneurship…the act that endows resources with the capacity to create wealth.” (Peter Drucker – Founder of Modern Management)

6. Our Entrepreneurial Economy The Environment for Entrepreneurship

7. Trends in Research and Education 1.The entrepreneurial and managerial domains are not mutually exclusive but overlap to a certain extent. 2.Venture financing, including both venture capital and angel capital financing as well as other innovative financing techniques, emerged in the 1990s with unprecedented strength.

8. Trends in Research and Education 3.Intrapreneurship (that is, entrepreneurship within large organizations) and the need for entrepreneurial cultures have gained much attention during the past few years. 4.Entrepreneurial entry strategies have been identified that show some important common denominators, issues, and trade- offs.

9. Trends in Research and Education 5.More research on the psychological aspects has emerged. 6.The risks and trade-offs of an entrepreneurial career have been subject of keen research interest. 7.Women and minority entrepreneurs have emerged in unprecedented numbers. 8.The entrepreneurial spirit is universal.

10. Trends in Research and Education 9.The economic and social contributions of entrepreneurs have been shown to make immensely disproportionate contributions. 10.Entrepreneurial education has become one of the hottest topics at U.S. business and engineering schools.

11. Emerging Trends: Internet and E-Commerce U.S. businesses spent 85.7 billion on building up their Internet capabilities in 1999.U.S. businesses spent 85.7 billion on building up their Internet capabilities in 1999. Smaller ventures use the Internet for a variety of operations, including customer-based identification, advertising, consumer sales, business-to-business transactions, e-mail, and private internal networks for employees.Smaller ventures use the Internet for a variety of operations, including customer-based identification, advertising, consumer sales, business-to-business transactions, e-mail, and private internal networks for employees.

12. The E-Commerce Challenge Electronic commerce (e-commerce)- the marketing, promoting, buying, and selling of goods and services electronically, particularly via the Internet- is the new wave in transacting business.Electronic commerce (e-commerce)- the marketing, promoting, buying, and selling of goods and services electronically, particularly via the Internet- is the new wave in transacting business.

13. Advantages and Challenges of E- Commerce for Entrepreneurial Firms Advantages: Ability of small firms to compete with other companies both locally and nationally.Ability of small firms to compete with other companies both locally and nationally. Convenient and easy way of doing business transactions.Convenient and easy way of doing business transactions.Challenges: Avoiding being a victim of fraudulent activities online.Avoiding being a victim of fraudulent activities online. Handling the costs required to maintain the site.Handling the costs required to maintain the site.

14. Developing a Web Site Attractive and UsefulAttractive and Useful Marketing the WebsiteMarketing the Website “Stickiness”“Stickiness”

15. Use of Internet Sites Company InformationCompany Information Corporate image buildingCorporate image building Product informationProduct information AdvertisingAdvertising MarketingMarketing Customer communicationsCustomer communications 93%89%80%78%77%76%

16. Most Important Factors for Customers to do Business Online User-friendly and easy to navigate Good previous experiences Fast response time Relevant and updated content Bargain prices 54% 36% 36% 27% 15%

17. Emerging E-Commerce Strategies 3-P Growth Model3-P Growth Model 1.Presence 2.Penetration 3.Profitability

18. Emerging E-Commerce Strategies Another StrategyAnother Strategy –Reach –Richness –Affiliation

19. Chapter 2 – Entrepreneurship: An Evolving Concept

20. The Evolution of Entrepreneurship Entrepreneur is derived from the French entreprendre, meaning “to undertake”.Entrepreneur is derived from the French entreprendre, meaning “to undertake”. Although no single definition of entrepreneur exists and no one profile can represent today’s entrepreneur, research is providing an increasingly sharper focus on the subject.Although no single definition of entrepreneur exists and no one profile can represent today’s entrepreneur, research is providing an increasingly sharper focus on the subject.

21. Robert C. Ronstadt put together a summary description: Entrepreneurship is the dynamic process of creating incremental wealth. This wealth is created by individuals who assume the major risks in terms of equity, time, and/or career commitment of providing value for some product or service. The product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing and allocating the necessary skills and resources.Entrepreneurship is the dynamic process of creating incremental wealth. This wealth is created by individuals who assume the major risks in terms of equity, time, and/or career commitment of providing value for some product or service. The product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing and allocating the necessary skills and resources.

22. An Integrated Definition Entrepreneurship is a dynamic process of vision, change, and creation. It requires an application of energy and passion towards the creation and implementation of new ideas and creative solutions. Essential ingredients include the willingness to take calculated risks- in terms of time, equity, or career; the ability to formulate an effective venture team; the creative skill to marshall needed resources; the fundamental skills of building a solid business plan; and, finally, the vision to recognize opportunity where others see chaos, contradiction, and confusion.Entrepreneurship is a dynamic process of vision, change, and creation. It requires an application of energy and passion towards the creation and implementation of new ideas and creative solutions. Essential ingredients include the willingness to take calculated risks- in terms of time, equity, or career; the ability to formulate an effective venture team; the creative skill to marshall needed resources; the fundamental skills of building a solid business plan; and, finally, the vision to recognize opportunity where others see chaos, contradiction, and confusion.

23. The Myths of Entrepreneurship Myth 1: Entrepreneurs Are Doers, Not ThinkersMyth 1: Entrepreneurs Are Doers, Not Thinkers Myth 2: Entrepreneurs Are Born, Not MadeMyth 2: Entrepreneurs Are Born, Not Made Myth 3: Entrepreneurs Are Always InventorsMyth 3: Entrepreneurs Are Always Inventors Myth 4: Entrepreneurs Are Academic and Social MisfitsMyth 4: Entrepreneurs Are Academic and Social Misfits Myth 5: Entrepreneurs Must Fit the “Profile”Myth 5: Entrepreneurs Must Fit the “Profile” Myth 6: All Entrepreneurs Need Is MoneyMyth 6: All Entrepreneurs Need Is Money

24. The Myths of Entrepreneurship Myth 7: All Entrepreneurs Need Is LuckMyth 7: All Entrepreneurs Need Is Luck Myth 8: Ignorance Is Bliss For EntrepreneursMyth 8: Ignorance Is Bliss For Entrepreneurs Myth 9: Entrepreneurs Seek Success But Experience High Failure RatesMyth 9: Entrepreneurs Seek Success But Experience High Failure Rates Myth 10: Entrepreneurs Are Extreme Risk Takers (Gamblers)Myth 10: Entrepreneurs Are Extreme Risk Takers (Gamblers)

25. The Corridor Principle States that with every venture launched, new and unintended opportunities often arise.

26. Approaches to Entrepreneurship Schools of Thought ApproachSchools of Thought Approach Process ApproachesProcess Approaches

27. Entrepreneurial Schools-of-Thought Approach Environmental School of Thought Financial School of Thought Displacement School of Thought { Macro View { Micro View Entrepreneurial Trait School of Thought (People School) Venture Opportunity School of Thought Strategic Formulation School of Thought

28. Macro View (External locus of control) The Environmental School of Thought The Financial/Capital School of ThoughtThe Financial/Capital School of Thought The Displacement School of ThoughtThe Displacement School of Thought 1. Political Displacement 2. Cultural Displacement 3. Economic Displacement

29. The Micro View (internal locus of control) The Entrepreneurial Trait School of ThoughtThe Entrepreneurial Trait School of Thought The Venture Opportunity School of ThoughtThe Venture Opportunity School of Thought The Strategic Formulation School of ThoughtThe Strategic Formulation School of Thought

30. Ronstadt Views Strategic Formulation as a Leveraging of Unique Elements Unique Markets: mountain gap strategiesUnique Markets: mountain gap strategies Unique People: great chef strategiesUnique People: great chef strategies Unique Products: better widget strategiesUnique Products: better widget strategies Unique Resources: water well strategiesUnique Resources: water well strategies

31. Process Approaches Integrative ApproachIntegrative Approach Entrepreneurial Assessment ApproachEntrepreneurial Assessment Approach Multidimensional ApproachMultidimensional Approach

32. An Integrative Model of Entrepreneurial Inputs and Outcomes Identify Opportunity Assess and acquire necessary resources Implementation Environmental opportunities Entrepreneurial individuals An organizational context Unique business concepts Resources Inputs The Entrepreneurial Process Number of events (and) degree of entrepreneurship A going ventureA going venture Value creationValue creation New products, servicesNew products, services ProcessesProcesses TechnologiesTechnologies Profits and/or personal benefitsProfits and/or personal benefits Employment, asset, and revenue growthEmployment, asset, and revenue growth Outcomes Entrepreneurial Intensity Innovation Proactive- ness Risk taking

33. Entrepreneurial Assessment Approach Type of Venture Type of Entrepreneur Type of Environment Qualitative, Quantitative, Strategic, and Ethical ASSESSMENTS Do the Results of the Assessments Make Sense Given: Prior Experience and Education Early Career Mid Career Late Career Stage of Entrepreneurial Career

34. Multidimensional Approach Individual(s) OrganizationEnvironment Process

35. Entrepreneurial Management The underlying theme of this book is the discipline of entrepreneurial management:The underlying theme of this book is the discipline of entrepreneurial management: –Entrepreneurship is based upon the same principles, whether the entrepreneur is an existing large institution or an individual starting his or her new venture single- handed. It makes little or no difference whether the entrepreneur is a business or a nonbusiness public-service organization, nor even whether the entrepreneur is a governmental or nongovernmental institution. The rules are pretty much the same, the things that work and those that don’t are pretty much the same, and so are the kinds of innovations and where to look for them. In every case there is a discipline we might call Entrepreneurial Management.

36. Chapter 3 – Intrapreneurship: Developing Corporate Entrepreneurship

37. The Nature of Intrapreneurship

38. Defining The Concept Recent research has defined corporate entrepreneurship as a process whereby an individual or a group of individuals, in association with an existing organization, creates a new organization or instigates renewal or innovation within the organization.

39. The Need for Corporate Entrepreneurship 1.Rapid Growth in the number of new and sophisticated competitors 2.Sense of distrust in the traditional methods of corporate management 3.An exodus of some of the best and brightest people from corporations to become small business entrepreneurs 4.International competition 5.Downsizing of major corporations 6.An overall desire to improve efficiency and productivity

40. Obstacles in Corporate Venturing Enforce Standard procedures to avoid mistakesEnforce Standard procedures to avoid mistakes Manage resources for efficiency and ROIManage resources for efficiency and ROI Control against planControl against plan Plan for the long termPlan for the long term Manage functionallyManage functionally Avoid moves that risk the base businessAvoid moves that risk the base business Innovative solutions blocked, funds misspent Competitive lead lost, low market penetration Facts ignored that should replace assumptions Nonviable goals locked in, high failure costs Entrepreneur failure and/or venture failure Missed opportunities Adverse Effects Traditional Mgt Practices

41. Obstacles in Corporate Venturing, cont. Protect the base business at all costsProtect the base business at all costs Judge new steps from prior experienceJudge new steps from prior experience Compensate uniformlyCompensate uniformly Promote compatible individualsPromote compatible individuals Venturing dumped when base business is threatened Wrong decisions about competition and markets Low motivation and inefficient operations Loss of innovators Adverse Effects Traditional Mgt Practices

42. Reengineering Corporate Thinking Set explicit goalsSet explicit goals Create a system of feedback and positive reinforcementCreate a system of feedback and positive reinforcement Emphasize individual responsibilityEmphasize individual responsibility Give rewards based on resultsGive rewards based on results

43. Innovative Philosophy 1.Encourage action 2.Use informal meetings whenever possible 3.Tolerate failure and use it as a learning experience 4.Persist in getting an idea to market 5.Reward innovation for innovation’s sake 6.Plan the physical layout of the enterprise to encourage informal communication 7.Expect clever bootlegging of ideas – secretly working on new ideas on company time as well as personal time 8.Put people on small teams for future-oriented projects 9.Encourage personnel to circumvent rigid procedures and bureaucratic red tape 10.Reward and promote innovative personnel

44. Specific Elements of a Corporate Intrapreneurial Strategy Developing the VisionDeveloping the Vision

45. Shared Vision Belonging Having a purpose Beyond the daily workRelationships Mutual trust and a supportive basic attitude prevail Commitment Active, committed participation of employees Structure Local initiative and central synthesis Mission and Vision

46. Specific Elements of a Corporate Intrapreneurial Strategy Developing the VisionDeveloping the Vision Encouraging the InnovationEncouraging the Innovation –Radical innovation is the launching of inaugural breakthroughs –Incremental innovation refers to the systematic evolution of a product or service Structuring for an Intrapreneurial ClimateStructuring for an Intrapreneurial Climate Developing Venture TeamsDeveloping Venture Teams

47. 3M’s Innovation Rules Don’t kill a projectDon’t kill a project Tolerate failureTolerate failure Keep divisions smallKeep divisions small Motivate the championsMotivate the champions Stay close to the customerStay close to the customer Share the wealthShare the wealth

48. “Corporate Entrepreneurship Assessment Instrument (measured key entrepreneurial climate factors) Management SupportManagement Support Autonomy/Work DiscretionAutonomy/Work Discretion Rewards/ReinforcementRewards/Reinforcement Time AvailabilityTime Availability Organizational BoundaryOrganizational Boundary

49. Developing Venture Teams A venture team is composed of two or more people who formally create and share the ownership of a new organization.A venture team is composed of two or more people who formally create and share the ownership of a new organization. The leader is called a “product champion” or an “intrapreneur”.The leader is called a “product champion” or an “intrapreneur”.

50. The Interactive Process of Intrapreneurship Who Are Entrepreneurs? Intrapreneurs are sometimes captured by the description as “a dreamer who does.” They tend to be action oriented. They can move quickly to get things done. They are goal oriented, willing to do whatever it takes to achieve their objectives. They are also a combination of thinker, doer, planner, and worker. They combine vision and action.Intrapreneurs are sometimes captured by the description as “a dreamer who does.” They tend to be action oriented. They can move quickly to get things done. They are goal oriented, willing to do whatever it takes to achieve their objectives. They are also a combination of thinker, doer, planner, and worker. They combine vision and action.

51. The Ten Commandments of an Intrapreneur 1.Come to work each day willing to be fired 2.Circumvent any orders aimed at stopping your dream 3.Do any job needed to make your project work, regardless of your job description 4.Network with good people to assist you 5.Build a spirited team: choose and work only with the best 6.Work underground as long as you can – publicity triggers the corporate immune mechanism 7.Be loyal and truthful to your sponsors 8.Remember that it is easier to as for forgiveness than for permission 9.Be true to your goals, but be realistic about the ways to achieve them 10.Keep the vision strong

52. The Interactive Process of Individual and Organizational Characteristics

53. An Interactive Model of Corporate Entrepreneuring Organizational Characteristics Management SupportManagement Support Work DiscretionWork Discretion Rewards/ReinforcementRewards/Reinforcement Time AvailibityTime Availibity Organizational BoundariesOrganizational Boundaries Precipitating Event Individual Characteristics Risk-taking PropensityRisk-taking Propensity Desire for AutonomyDesire for Autonomy Need for AchievementNeed for Achievement Goal OrientationGoal Orientation Internal Locus of ControlInternal Locus of Control Decision to Act Intrapre- neurially Business/ Feasibility Planning Idea Implemen- tation Resource Availability Ability to Overcome Barriers