ENTR 452, Chapter 2

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ENTR 452, Chapter 2 (Entrepreneurial
Intentions and Corporate Entrepreneurship)
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ENTREPRENEURIAL INTENTIONS WITHIN EXISTING
ORGANIZATIONS

• Corporate entrepreneurship or intrepreneurship
  is becoming more common.
• Top management must create an environment that
  encourages employees to think and act
  entrepreneurially.
• Employees will realize that entrepreneurial
  action within the firm is both personally
  desirable and feasible.

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MANAGERIAL VERSUS ENTREPRENEURIALDECISION MAKING

• Entrepreneurial management is distinct from
  traditional management in terms of
• Strategic orientation.
• Commitment to opportunity.
• Commitment of resources.
• Control of resources.
• Management structure.
• Reward philosophy.
• Growth orientation.
• Entrepreneurial culture.

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TABLE 2.3 - CHARACTERISTICS OF AN ENTL
ENVIRONMENT
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TABLE 2.4 - LEADERSHIP CHARACTERISTICS OF A
CORPORATE ENTREPRENEUR
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STEPS TO ESTABLISHING CORPORATE ENTREPRENEURSHIP

• Step 1
• Secure a commitment from all management levels
• Identify, select, and train corporate
  entrepreneurs
• Step 2
• Identify ideas/areas that interest top management
• Identify amount of risk money available
• Establish program expectations and target results
• Establish time frame, volume, and profitability
  requirement
• Establish mentor/sponsor system

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STEPS TO ESTABLISHING CORPORATE ENTREPRENEURSHIP

• Step 3
• Use technology to ensure organizational
  flexibility
• Step 4
• Identify interested managers to train employees
• Step 5
• Develop ways to get closer to the customers
• Step 6
• Learn to be more productive with fewer resources

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STEPS TO ESTABLISHING CORPORATE ENTREPRENEURSHIP

• Step 7
• Establish a strong support structure for
  corporate entrepreneurship
• Step 8
• Tie rewards to the performance of the
  entrepreneurial unit
• Finally
• Evaluation system should be such that successful
  entrepreneurial units thrive and unsuccessful
  ones are eliminated

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ESTABLISHING CORPORATE ENTREPRENEURSHIP IN THE
ORGANIZATION
New ventures started within existing firms often
perform worse than those started independently by
entrepreneurs. - hard to maintain long-term
commitment - lack of freedom to make decisions
- constrained environment On average,
independent start-ups become - Profitable
twice as fast. - End up twice as profitable.
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HOW ENTREPRENEURS THINK

• Learn from business failure
• How entrepreneurs deal with loss and achieve
  emotional recovery is important
• These can allow the entrepreneur to be motivated
  to try again and improve the next time they start
  a new venture.
• Know that there is often oscillation between a
  loss orientation and a restoration orientation