PRELIM REVIEWER

ENTREPRENEURSHIP

It is the process of creating or seizing an opportunity, and pursuing it regardless of the resources currently personally controlled.

INTRAPRENEURSHIP

Within corporations the process of entrepreneurship may be initiated by dynamic employees who are motivated to be creative and innovative to the social and economic enhancement of their organization.

TEAM ENTREPRENEURSHIP

it is seen as a capability and attitude whereby individual skills are integrated into a group, or team, becoming partners in the business’s future evolution.

1 an economic function 2 ownership structure 3 degrees of entrepreneurship 4 size and life-cycle of firm and 5 resource base

There is no universally accepted definition of entrepreneurship. WHAT ARE 5 Attempts have traditionally been made to describe it relative to:

ECONOMIC FUNCTION

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM
- PERSONAL INITIATIVE OF ENTREPRENEURCHOOSE

ECONOMIC FUNCTION

-RISK-BEARING FUNCTION

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

ECONOMIC FUNCTION

-HARNESSING OF FACTORS OF PRODUCTION

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

OWNERSHIP STRUCTURE

-CREATION OF BUSINESS WITH ENTREPRENEUR AS FOUNDER

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

DEGREES OF ENTREPRENEURSHIP

-SIZE OF FIRM

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

DEGREES OF ENTREPRENEURSHIP

• PERSONAL FINANCIAL RISK

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

DEGREES OF ENTREPRENEURSHIP

- CREATIVITY AND INNOVATION

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

DEGREES OF ENTREPRENEURSHIP

- GROWTH REALIZATION

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

RESOURCE BASE

- PRIMORDIAL TO POTENTIAL PRODUCTION PROCESS

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

SIZE AND LIFE-CYCLE OF FIRM

- ASSOCIATION WITH YOUNG START-UP FIRM

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

CONSOLIDATION APPROACH

- CONDITIONS OF UNCERTAINTY AND COMPETITION

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

CONSOLIDATION APPROACH

- ENTREPRENEURIAL MANAGEMENT AND STRATEGY

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

CONSOLIDATION APPROACH

- INITIATION OF CHANGE

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

CONSOLIDATION APPROACH

-INNOVATORY PROCESS

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

CONSOLIDATION APPROACH

-OWNERSHIP, STRUCTURE AND SIZE OF FIRM IRRELEVANT

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

CONSOLIDATION APPROACH

-PERSONAL INITIATIVE THROUGH THE SPIRIT OF ENTERPRISE

CHOOSE = ECONOMIC FUNCTION, OWNERSHIP STRUCTURE, DEGREES OF ENTREPRENEURSHIP, RESOURCE BASE, SIZE AND LIFE-CYCLE OF FIRM

ENTREPRENEUR

it is the one who creates a new business in the face of risk & uncertainty for the purpose of achieving profit & growth by identifying opportunities and assembling the necessary resources to capitalize on them.

ENTREPRENEURS

- Persons who start and/or operate a business.

- Individuals who discover market needs and develop new ideas to meet those needs.

- Risk takers who provide an impetus for change, innovation, and progress.

- All active owner-managers (founders and/or managers of small businesses).

CORPORATE VENTURE

IT IS the embryonic entrepreneurial firm grows, ownership is likely to become more diffused and entrepreneurship may become a group quality rather than confined to any one individual.

ENTREPRENEURIAL VENTURE

Their owners / managers will be driven by the managerial objective of growth realization, and maximization of the potential opportunities which can be developed from the original venture created. They are characterized by innovative strategies and practices.

ETHNIC MINORITY

Entrepreneurship has been identified as a vehicle through which members of ethnic minority groups can overcome disadvantage and achieve personal success.

FAMILY

A large percentage of smaller firms represent family enterprises. Very often the small hotel, visitor attraction, or activity centre will involve most of the family performing different roles. Within such firms, issues of importance are the social systems which exist and the question of succession. The also family has an important role to play in terms of being a supplier of resources, such as finance and labour.

FRANCHISE

Business format franchising entails the franchisor granting a license to local operators (franchisees) to use the brand name, product, service and associated goodwill for a specific period of time.

HOME BASE AND CRAFT

Within the hospitality, tourism and leisure industries, this represents a small, highly specialized segment. The restricted size is mainly due to the nature of the businesses in this sector with their fixity to the service provider’s home, rather than the location of the customers.

JOINT VENTURE

This represents an arrangement whereby firms remain independent but set a up new organization jointly owned by the parent firms.

LIFE-STYLE

Their owners are likely to be concerned with survival, and maintaining sufficient income to ensure that the business provides them and their family with a satisfactory level of funds to enable enjoyment of their chosen life-style

SMALL BUSINESS AND SELF-EMPLOYMENT

These businesses are often entirely dependent upon the talents and energies of the proprietors.

TEMPORARY / PARTIME

This approach relates to entrepreneurship which is not a constant

process, but one which can be applied as and when required. It

1 Change initiation 2 Commitment to employees 3 Creative resourcing

4 Entrepreneurial learning 5 Innovation and creativity 6 Knowledge leadership

7 Opportunity alertness 8 Relationship management 9 Risk and uncertainty management 10 Timing of action 11 Vision and strategic orientation

WHAT ARE 11 KEY ELEMENTS OF ENTREPRENEURSHIP

CHANGE INITIATION

Capability to identify an opportunity for creation or innovation, and ability to turn it into a reality.

COMMITMENT TO EMPLOYEES

Application of appropriate management practices and reward systems designed to exact employee loyalty, retention and efficiency

CREATIVE RESOURCING

Ingeniously marshalling resources, of both a financial and managerial nature, from a complex set of sources in order to mobilize and realize the opportunity

ENTREPRENEURIAL LEARNING

Motivation to acquire the necessary knowledge and expertise through relevant exploration and reflection, in order to excel

INNOVATION AND CREATIVITY

Renewal of products or services by adding value through application of expertise and imagination

KNOWLEDGE LEADERSHIP

Development of sources of management information to enable first-mover capability, and effective strategy formulation and implementation

OPPURTUNITY ALERTNESS

Continuous focus on emerging trends and opportunities to be captured and realized

RELATIONSHIP MANAGEMENT

Maintenance of effective teams, networks, and flexible management structures

RISK AND UNCERTAINTY MANAGEMENT

Evaluation of personal and financial risk elements, self-confidence and determination to succeed

TIMING OF ACTION

Acting within a limited window in which an opportunity can be optimized

VISION AND STRATEGIC ORIENTATION

Formulation of ambitions, and strategies to realize them

1 Knowledge and learning 2 Opportunities 3 Participants 4 Resources 5 Risk and uncertainty 6 Vision and strategy

WHAT ARE 6 FEATURES OF AN ENTREPRENEURIAL FIRM

KNOWLEDGE AND LEARNING

A learning organization which is continuously committed to the acquisition of knowledge and expertise relative to both market and management information. This is in order to maximize the firm’s potential and to excel within a given activity

OPPURTUNITIES

Constantly vigilant towards identifying new opportunities to be pursued, and awareness that opportunities have a limited life. Thus, the importance of acting quickly in order to optimize them

PARTICIPANTS

Values the contribution of participants in the process of entrepreneurship. Entrepreneurial teams are linked to a set of commonly held values. The firm has the ability to manage effectively the relationships involved

RESOURCES

Ingenious mobilization of resources enables the pursuit and realization of opportunities without regard for the resources a firm actually controls.

RISK AND UNCERTAINTY

Evaluates the risks and uncertainty associated with projects, but does not suffer from analysis/paralysis in that it has the confidence to assume a certain degree of risk and is willing to learn from mistakes

VISION AND STRATEGY

Has the power to discern future prospects of success, and the ambition and strategies to progress towards achieving them. Clear vision and directions for the future are forces which bind the firm

DAVID MCCLELLAND 1961

- described the entrepreneur as primarily

motivated by an overwhelming need for

achievement and strong urge to build.

COLLINS AND MOORE 1970

- studied 150 entrepreneurs and concluded that

they are tough, pragmatic people driven by needs

of independence and achievement. They seldom

are willing to submit to authority.

BIRD 1992

- see entrepreneurs as mercurial, that is, prone to

insights, brainstorms, deceptions, ingeniousness

and resourcefulness.

COLE 1959

found there are four types of entrepreneur:

the innovator,

the calculating inventor,

the over-optimistic promoter, and

the organization builder.

1 Develop new markets

2 Discover new sources of material

3 Mobilize capital resources

4 Introduce new technologies, industries

and products

5 Create employment

WHAT ARE 5 CONTRIBUTIONS OF ENTREPRENUERS

TARGET MARKETS

No single food-service operation has universal appeal. This is a fact that many newer entrepreneurs have trouble accepting, but the reality is that you will never capture 100 percent of the market. When you try to please everyone, you end up pleasing no one. So focus on the 5 or 10 percent of the market that you can get, and forget about the rest.

GENERATION Y

This generation, also tagged the “millennial generation,” the “echo” or the “boomlet” generation, includes those born between 1980 and 2000. They are the prime target for a food- service business. Members of Generation Y go for fast-food and quick-service items.

GENERATION X

It is a label applied to those who were born between 1965 and 1980. This group is known for strong family values. Gen Xers are more likely to focus on their relationship with their children. They are concerned with value, and they favor quick-service restaurant and midscale operations that offer all-you-can-eat salad bars and buffets.

BABY BOOMERS

- Born between 1946 and 1964, baby boomers make up the largest segment of the U.S. population. Prominent in this generations are affluent professionals who can afford to visit upscale restaurant and spend money freely.

- Today, those on the leading edge of the boomer generation are becoming grandparents, making them a target of restaurants that offer a family-friendly atmosphere and those that provide an upscale, formal dining experience.

EMPTY NESTERS

- This group consists of people in the age range between the high end of the baby boomers and seniors (people in the early 50’s to about age 64). Empty nesters typically have grown children who no longer live at home, and their ranks will continue to increase as the baby boomers grow older and their children leave home.

- They are less concerned with price and are more focused on the excellent service and outstanding food. Appeal to this group with elegant surroundings and a sophisticated ambience.

SENIORS

- The senior market covers the large age group of people age 65 and older. Generally, the majority of seniors are on fixed incomes and may not often be able to afford upscale restaurants often, so they tend to visit family-style restaurants that offer good service and reasonable prices.

- Seniors typically appreciate restaurants that offer early-bird specials and senior menus with lower prices and smaller portions, since their appetites are less hearty than those of younger people.

1 Quick-service Restaurants 2 Mid-scale Restaurants 3 Upscale Restaurants

WHAT IS 3 RESTAURANT SERVICE STYLE

1. Markets

2. Individual interest

3. Capital

4. Skills

5. Supplier of inputs

6. Manpower

7. Technology

WHAT ARE the 7 following factors or resources have to be evaluated.