Marvin Ryder

1
MBA P715 Entrepreneurship Week 2

• Marvin Ryder
• Assistant Professor, Marketing Entrepreneurship

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 Entrepreneurs paradox
• Source Doss, Mazzarol, Volery Triggers and
  Barriers Affecting
• Entrepreneurial Intentionality, 1997

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The Genesis of Entrepreneurship
Industry Structure
Perception of Opportunity
Consumer Demand
Venture Creation
Entrepreneur
Environmental Trends
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

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Entrepreneurial Work Environment
Leadership Style Autocratic/Directive
Decision-making Centralized/no delegation Impulsive/little conscious planning Operating and strategic decisions have equal importance
Time Horizon Short one day, one week, one month
Power Close to the entrepreneur
Workplace climate Highly uncertain/poor information flows
Corporate Structure Lack of formal organization chart Spider web structure
Infrastructure Lack control information systems Few standard procedures rules Large horizontal span of control