The Entrepreneurial &

Intrapreneurial Mind
 The Entrepreneurial Process
“ is the process of pursuing a new venture, whether it be new products into
existing markets, existing products into new markets and/or the creation of
a new organization.”
• It is the process through which a new venture is created by an entrepreneur.
• The process of starting a new venture is embodied in the entrepreneurial
process, which involves more than just problem solving in a typical
management position.
• An entrepreneur must find, evaluate, and develop an opportunity by
overcoming the forces that resist the creation of something new.
 Conti…

The process has four distinct phase:

Management
Identification Development Determination
of the
& evaluation of business of required
resulting
of opportunity plan resources
enterprise
Phase 1 – Identify & Evaluate the Opportunity

• Opportunity Identification and evaluation is a very difficult task.

• Most good business opportunities do not suddenly appear, but rather
results from an entrepreneur’s alertness to possibilities or, in some cases,
the establishment of mechanism that identify potential opportunities.
“ Opportunity identification is the process by which an entrepreneur comes
up with the opportunity for a new venture.”
 Conti…
• Opportunities are identified mostly through informal mechanisms such as
consumers, business associates, channel members, technical people etc.

• Window of Opportunity- The time period available for creating the new
venture
Steps to identify and evaluate the opportunity

1. Opportunity assessment
2. Creation and length of opportunity
3. Real and perceived value of opportunity
4. Risk and returns of opportunity
5. Opportunity versus personal skills and goals
6. Competitive environment
 Conti…
• Opportunity analysis/ assessment plan involves looking at the length of opportunity, its
real & perceived value, its risks and returns, its fit with personal skills and goals of
entrepreneur, and its uniqueness or differential advantage in its competitive environment.

- What market need does it fill?

- What personal observations have you experienced or recorded with regards to that market
need?
- What social conditions underlies this market need?
- What market research data can be assembled to describe this market need?
- What patents might be available to fulfill this need?
- What competition exists in this market? How would you describe the behavior of this
competition?
- Where is the money to be made in this activity?
 Phase 2- Develop a Business Plan

A good business plan must be developed in order to exploit the defined

opportunity. this is very time-consuming phase of the entrepreneurial
process.

A good business plan is essential to developing the opportunity and

determining the resources required, obtaining those resources, and
successfully managing the resulting venture.
 Steps to develop Business Plan
1. Description of
Business
• Title page 2. Description of Industry
• Table of contents 3. Technology Plan
4. Marketing Plan
• Executive Summary
5. Financial Plan
• Major Section 6. Production Plan
7. Organization Plan
• Appendixes
8. Operational Plan
9. Summary
 Phase 3- Determine the resources
required
The resources needed for addressing the opportunity must also be determined.
This process starts with an appraisal of the entrepreneur’s present resources.
Any resources that are critical need to be differentiated from those that are just
helpful.
Care must be taken not to underestimate the amount and variety of resources
needed.
The downside risks associated with insufficient or inappropriate resources should
also be assessed.
 Steps to Determine Resources Required

• Determine resources needed.

• Determine existing resources.
• Identify resource gaps and available suppliers.
• Develop access to needed resources.
 Phase 4 – Manage the enterprise
• Management function requires the entrepreneur to use acquired
resources for implementation of business plan.
• Dealing with operational problems
• Determining management style and structure.
• Establishing control system
 Phase 4 – Manage the enterprise
• Management function requires the entrepreneur to use acquired resources
for implementation of business plan.
• The operational problems of the growing enterprise must also be
examined.
• This involves implementing a management style and structure, as well as
determining the key variables for success.
• A control system must be established, so that any problem areas can be
quickly identified and resolved.
 Steps to Manage the Enterprise

• Develop management style.

• Understand key variables for success.
• Identify problems and potential problems.
• Implement control systems.
• Develop growth strategy
Aspects of Entrepreneurial Process
Identify & evaluate Develop business plan Resources required Manage the enterprise
opportunity
-Opportunity assessment -Title Page -Determine resources -Develop management
- Creation & length of - Table of Contents needed style,
opportunity - Executive Summary - Determine existing - Understand key variables
- Real & perceived value of - Major section resources for success.
opportunity 1. Description of business - Identify resource gaps and - Identify problems
-Risks & returns of 2. Description of Industry available suppliers - Implement control system
opportunity 3. Technology Plan - Develop access to needed - Develop growth strategy.
-Opportunity versus 4. Marketing Plan resources.
personal skills & goals 5. Financial Plan
-Competitive environment 6. Production Plan
7. Organization plan.
8. Operational Plan
9. Summary
- Appendix
 What is resources?
A person, an asset material or capital that is useful and can be used to create
value. ( Resources : tangible, intangible , Resources Characteristics:
Valuable, Rare)
Types of resources :
Physical(manmade, natural)
Reputational (public perception, quality, cost, speed of delivery) Google
Organizational (Vision of Founder)
Financial
Human resources and Capabilities (McAfee)
Technological resources and Capabilities ( GE and DuPont )
 Managerial Vs. Entrepreneurial decision making

Five different dimensions between entrepreneurial decision making and

managerial styles:
• strategic orientation
• commitment to opportunity
• commitment of resources
• control of resources
• management structure
Managerial styles are called the administrative domain.
Administrative domain is the way manager make decisions.
 CAUSES FOR INTEREST IN
INTRAPRENEURSHIP
• These differences in entrepreneurial and managerial domains have
contributed toward an increased interest in intrapreneurship.
• This interest has intensified due to a variety of events occurring on social,
cultural, and business levels.
• On a social level , there is an increasing interest in “doing your own thing”
and doing it on one’s own terms.
• Individuals who believe strongly in their own talents frequently desire to
create something of their own.
• They want responsibility and have a strong need for individual expression
and freedom in their work environment.
 Conti…
• When this freedom is not there, frustration can cause that individual to
become less productive or even leave the organization to achieve self-
actualization elsewhere.
• The resistance against flexibility, growth, and diversification can, in part,
can be overcome by developing a spirit of entrepreneurship within the
existing organization, called intrapreneurship.
• An increase in intrapreneurship reflects on an increase in social, cultural,
and business pressures.
 Corporate Vs. Intrapreneurial Culture
Corporate Culture
- is the environment of a particular organization.
Shared values and norms:
• Hierarchical in nature
• Established procedures
• Reporting systems
• Line of authority and responsibility
• Instructions
• Control mechanism.
 Conti…
Intrapreneurial culture
- Is the environment of an entrepreneurial-oriented organization.
Shared values and norms:
• Flat organizational structure with networking
• Team work
• Sponsors
• Mentors abounding
Note: Close-working relationship help to establish an atmosphere of trust that
facilitates the accomplishment of visions and objectives.
 Climate for Intrapreneurship
• Organization operates on frontiers of technology
• New ideas encouraged
• Trial and error encouraged
• Failures allowed
• No opportunity parameters – barrier to new product creation and development
• Resources available and accessible
• Multi-discipline teamwork approach
• Long-time horizon
• Volunteer program
• Appropriate reward system
• Sponsors and champions available
• Support of top management
 Intrapreneurial Leadership Characteristics

• Understand the environment

• Visionary and flexible
• Creates management options
• Encourages teamwork
• Encourages open discussion
• Build a collision of supporters
• Persists
 Establishing Intrapreneurship in the
Organization
1. To secure a commitment to intrapreneurship in the organization by top,
upper, and middle management levels.
2. Ideas and general areas that top management are interested in supporting
should be identified, along with the amount of risk money that is
available to develop the concept further.
3. A company need to use technology to make it more flexible.
4. The organization should have a group of interested managers who will
train employees as well as share their experiences.
5. The organization needs to develop ways to get closer to its customers.
6. An organization that want to become more intrapreneurial must learn to
be more productive with fewer resources.
7. The organization needs to establish a strong support structure for
intrapreneurialship.
8. Support must also involve trying the rewards to the performance of the
intrapreneurial unit.
9. The organization need to implement an evaluation system that allows
successful intrapreneurial unit to expand and unsuccessful ones
eliminated.