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Page 1: Introduction to Entrepreneurship
Entrepreneurship presented by Mr. E Chitimba.
Page 2: Corporate Entrepreneurship
Chapter 2 focuses on corporate entrepreneurship.
Page 3: Definition of Corporate Entrepreneurship
Corporate entrepreneurship is the process of creating new businesses or services within an existing company to generate value and revenue.
Reflects increasing social, cultural, and business pressures for entrepreneurial action.
Page 4: Major Types of Corporate Entrepreneurship
Corporate Venturing
Intrapreneuring
Organizational Transformation
Changing Industry Rules
Page 5: Corporate Venturing
Involves establishing a new business within an existing organization.
Often occurs when a division is highly successful and expands its resources to explore new markets.
Examples include launching additional services that complement existing offerings.
Page 6: Intrapreneuring
Employees act as entrepreneurs within a large company, driving ideas into profitable products or services.
Aims to foster a creative culture among employees, promoting proactivity and innovation.
Page 7: Organizational Transformation
A strategy to shift the organization to a desired future state.
Focuses on enhancing employee experience and company performance amidst change.
Examples include downsizing and cost minimization.
Page 8: Changing Industry Rules
Involves redefining the rules within an industry to create new business opportunities.
Known as frame-breaking change; provides avenues for growth and innovation, e.g., Amazon changing retail.
Page 9: Advantages of Corporate Entrepreneurship
Access to resources
Minimal set-up efforts
Existing brand recognition
Established sales force
Page 10: Resources Availability
Corporate entrepreneurs leverage a strong resource base, unlike startups facing capital constraints.
Page 11: Minimal Set-up
Corporate entrepreneurs benefit from prior technical knowledge and processes, easing business setup.
Page 12: Recognizing Brand
Strong brand recognition provides an edge, achievable through years of effort leading to success in corporate ventures.
Page 13: Sales-Force
Corporate entrepreneurs enjoy support from development teams and established contacts that enhance sales efforts.
Page 14: Disadvantages of Corporate Entrepreneurship
Long approval cycles
Limited financial rewards
Reduced maneuverability
Page 15: Long Approval Cycles
Lengthy approval processes can deter quick decision-making and action.
Page 16: Limited Financial Rewards
Potential earnings are capped, which may demotivate corporate entrepreneurs.
Page 17: Hindering Ability for Maneuverability
Existing procedures may restrict an entrepreneur's ability to navigate and innovate within the organization.
Page 18: Importance of Corporate Entrepreneurship
Revenue Growth: Essential for sustaining innovation and competitiveness.
Boosting Productivity: Enhances employee engagement with new opportunities.
Competitive Advantage: Provides insights and an edge in the market.
Page 19: Revenue Growth
Competitive environment necessitates corporate entrepreneurship for continual growth and innovative revenue streams.
Page 20: Boosting Productivity
Encourages employees to address new opportunities, enhancing overall productivity and morale.
Page 21: Competitive Advantage
Employees are valuable assets, providing insights that enhance market competitiveness.
Page 22: Managerial vs. Entrepreneurial Decision Making
Howard Stevenson outlines eight distinctions between entrepreneurial and traditional management.
Page 23: Strategic Orientation & Commitment to Opportunity
Entrepreneurial strategy focuses on opportunities rather than resources.
Prioritizes rapid action on potential opportunities for growth.
Page 24: Commitment to Opportunity Details
Entrepreneurially managed firms act quickly on opportunities and effectively minimize resource commitments.
Page 25: Resources Commitment & Control
Entrepreneurs focus on accessing resources instead of ownership.
Minimizing resource risk when pursuing opportunities is key.
Page 26: Resource Management Structure
Entrepreneurial firms favor an organic structure with less bureaucracy, promoting rapid information flow.
Traditionally managed firms focus on control and efficiency.
Page 27: Management Structure & Reward Philosophy
Entrepreneurial firms reward creativity and contribution to opportunities, whereas traditional firms reward based on resource control.
Page 28: Growth Orientation & Culture
Entrepreneurial firms pursue rapid growth and foster an idea-generating culture; traditional firms prefer steady growth.
Page 29: Cultural Distinction
Entrepreneurial culture values experimentation and creativity, while traditional culture is resource-focused.
Page 30: Establishing a Culture for Corporate Entrepreneurship
Operating at technology frontiers
Encouraging experimentation
Removing creativity obstacles
Providing accessible resources
Forming multidisciplinary teams
Voluntary participation in entrepreneurship
Rewarding creativity and risk-taking
Top management support
Page 31: Operating on the Cutting Edge
Support for R&D and new ideas to encourage innovation in product development.
Page 32: Encouraging Experimentation
Create an environment for trial-and-error learning to foster product evolution.
Page 33: Removing Obstacles
Eliminate protected territories within organizations to facilitate new ventures.
Page 34: Accessible Resources
Provide funds and time for experimentation without immediate return pressures.
Page 35: Multidisciplinary Teams
Foster teamwork across various areas to enhance new venture success.
Page 36: Volunteer Basis for Entrepreneurship
Successful entrepreneurial efforts must stem from voluntary participation, allowing follow-through on projects.
Page 37: Reward System
Develop rewards based on creativity, risk-taking, and entrepreneurial contributions to encourage successful ventures.
Page 38: Developing Champions
Assign sponsors within the organization to support and adapt entrepreneurial efforts based on changing needs.
Page 39: Management Support
Top management's explicit support is vital for cultivating an entrepreneurial culture.
Page 40: Leadership Characteristics
Effective corporate entrepreneurs:
Understand their environment
Are visionary and flexible
Encourage teamwork and open discussions
Build support coalitions
Exhibit persistence.