ENTRE 1

The technician

performs specific tasks according to systems and standards management developed

•Displacement School of Thought

•Alienation drives entrepreneurial pursuits. •Political displacement (laws, policies, and regulations) •Cultural displacement (preclusion of social groups) Economic displacement (economic variations)

•Factors in large corporations that are successful innovators:

•Atmosphere and vision •Orientation to the market •Small, flat organizations •Multiple approaches •Interactive learning •Skunk Works

Benefits of Entrepreneurial Philosophy

Leads to the development of new products and services and helps the organization expand and grow. Creates a workforce that can help the enterprise maintain its competitive posture. Promotes a climate conducive to high achievers and helps the enterprise motivate and keep its best people.

•Small-Business Owners

Manage their businesses by expecting stable sales, profits, and growth

•Entrepreneurs combine things in new ways.

hat unique package could include •Product innovation •A new distribution approach •An alternative service delivery method •A different way of packaging •And many more

•The entrepreneur

invents a business that works without him or her.

•Corporate Entrepreneurship Strategy

A vision-directed, organization-wide reliance on entrepreneurial behavior that purposefully and continuously rejuvenates the organization and shapes the scope of its operations through the recognition and exploitation of entrepreneurial opportunity

•Entrepreneurial Discipline

It makes little or no difference who or what the entrepreneur is—whether a business or a nonbusiness public service organization, whether a governmental or nongovernmental institution. •The rules are much the same and so are the kinds of innovation and where to look for them.

•Entrepreneurial Cognition

Knowledge structures that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth.

Entrepreneurship

Lifestyle and self governance Innovation and risk taking Starting up a biz, taking on financial risk, hoping profit in return Brings ideas to life Act of starting, creating, managing, and organizing a product, biz, or organization to fulfill a need.

•Self-Destructive Characteristics

Overbearing need for control and power •Sense of distrust •Overriding desire for success •Unrealistic external optimism

•Entrepreneurship

•A dynamic process of vision, change, and creation •Requires energy and passion toward the creation and implementation of innovative ideas and creative solutions

•A "unicorn"

•A pre-IPO (private) start-up company with a $1 billion market value •Examples: Oculus VR, Nest, Minecraft, Beats In 2018, 80 start-ups were valued at $1 billion or m

Entrepreneurship

•Being able to find a need •Adaptable to the customer's needs •Taking calculated risks •Leaving the job you have to create business •Your own until marketed/sold to the customer •Sociable and communicate your ideas/business •The mindset rather than running the business itself Capitalizing on opportunity

Stress

•Chronic and severe sense of time urgency •Constant involvement in multiple projects subject to deadlines •Neglect of all aspects of life except work •A tendency to take on excessive responsibility, combined with the feeling that "Only I am capable of taking care of this matter" •Explosiveness of speech and a tendency to speak faster than most people

Corporate innovation

•Does the company encourage entrepreneurial thinking? •Does the company provide ways for innovators to stay with their ideas? •Are people permitted to do the job in their own way, or are they constantly stopping to explain their actions and ask for permission? •Has the company evolved quick and informal ways to access the resources to try new ideas? •Has the company developed ways to manage many small and experimental innovations?

•Strategic Formulation School of Thought

•Emphasizes the planning process in successful venture development.

Micro View

•Entrepreneurial trait school of thought (people school) •Venture opportunity school of thought •Strategic formulation school of thought

Macro View

•Environmental school of thought •Financial/capital school of thought •Displacement school of thought

•Entrepreneurial Trait School of Thought

•Focuses on identifying traits common to successful entrepreneurs. •Achievement, creativity, determination, and technical knowledge

•Venture Opportunity School of Thought

•Focuses on the opportunity aspect of venture development—the search for idea sources, development of concepts, and implementation of venture opportunities.

Unethical

•Greed •Distinctions between activities at work and activities at home •Lack of a foundation in ethics •Survival (bottom-line thinking) •Reliance on others

Entrepreneur Process

•Identify an opportunity •Develop a business concept •Assess the necessary resources (not just money) •Acquire the needed resources •Implement •Manage Harvest

•Innovation-Driven Phase

•Knowledge-intensive businesses •Service sector expands

•Sources of Entrepreneurial Stress

•Loneliness •Immersion in business •People problems •Need to achieve

•Loss Orientation

•Loss Orientation •Involves focusing on the particular loss to construct an account that explains why the loss occurred

Myths

•Myth 1: Entrepreneurs are doers, not thinkers. •Myth 2: Entrepreneurs are born, not made. •Myth 3: Entrepreneurs are always inventors. •Myth 4: Entrepreneurs are academic and social misfits. •Myth 5: Entrepreneurs must fit the profile. •Myth 6: All entrepreneurs need is money. •Myth 7: All entrepreneurs need is luck. •Myth 8: Entrepreneurship is unstructured and chaotic. •Myth 9: Most entrepreneurial initiatives fail. •Myth 10: Entrepreneurs are extreme risk takers.

Need for innovation

•Rapid growth in new and sophisticated competitors •Sense of distrust in the traditional methods of corporate management •An exodus of some of the best and brightest people from corporations to become small-business entrepreneurs •International competition •Downsizing of major corporations •An overall desire to improve efficiency and productivity

•Entrepreneurs

•Recognize opportunities where others see chaos, contradiction, or confusion •Are aggressive catalysts for change within the marketplace •Challenge the unknown and continuously create breakthroughs for the future

•Incremental Innovation

•The systematic evolution of a product or service into newer or larger markets. •Many times the incremental innovation will take over after a radical innovation introduces a breakthrough.

•Strategic formulation is a leveraging of unique elements:

•Unique markets—mountain gap strategies •Unique people—great chef strategies •Unique products—better widget strategies •Unique resources—water well strategies

•Essential ingredients include:

•Willingness to take calculated risks—in terms of time, equity, or career •Ability to formulate an effective venture team •Creative skill to marshal needed resources •Fundamental skills of building a solid business plan •Vision to recognize opportunity where others see chaos, contradiction, and confusion

•Corporate Entrepreneurship Strategy

A vision-directed, organization-wide reliance on entrepreneurial behavior that purposefully and continuously rejuvenates the organization and shapes the scope of its operations through the recognition and exploitation of entrepreneurial opportunity. •It requires the creation of congruence between the entrepreneurial vision of the organization's leaders and the entrepreneurial actions of those throughout the organization.

•Gazelles as leaders in innovation:

Are responsible for 55% of innovations in 362 different industries and 95% of radical innovations. •Produce twice as many product innovations per employee as do larger firms. •Obtain more patents per sales dollar than do larger firms.

•Entrepreneurial Motivation

The quest for new-venture creation as well as the willingness to sustain that venture. •Personal characteristics, personal environment, business environment, personal goal set (expectations), and the existence of a viable business idea

Corporate Entrepreneurship

A process whereby an individual or a group, in association with an existing organization, creates a new organization or instigates renewal or innovation within the organization.

•Entrepreneurship is opportunity-driven behavior rather than resource-constrained behavior

Every day -Surrounded by dozens of opportunities -May not see them or act on them •The pursuit of opportunity makes one more aware of opportunities.

•Entrepreneurs

•Focus their efforts on innovation, profitability, and sustainable growth

•Entrepreneurship

(Robert C. Ronstadt) •The dynamic process of creating incremental wealth. •This wealth is created by individuals who assume major risks in terms of equity, time, and/or career commitment of providing value for a product or service. •The product or service itself may or may not be new or unique, but the entrepreneur must somehow infuse value by securing and allocating the necessary skills and resources.

•Steps to help restructure corporate thinking and encourage an entrepreneurial environment:

.Early identification of potential innovators 2.Top-management sponsorship of innovative projects 3.Creation of innovation goals in strategic activities 4.Promotion of entrepreneurial thinking through experimentation 5.Development of collaboration between innovators and the organization at large

•Important practices for establishing an innovation-driven organization:

.Set explicit innovation goals. 2.Create a system of feedback and positive reinforcement. 3.Emphasize individual responsibility. 4.Provide rewards for innovative ideas. 5.Do not punish failures.

Rules for an innovation environment

1.Encourage action. 2.Use informal meetings whenever possible. 3.Tolerate failure, and use it as a learning experience. 4.Persist in getting an idea to market. 5.Reward innovation for innovation's sake. 6.Plan the physical layout of the enterprise to encourage informal communication. 7.Expect clever bootlegging of ideas—secretly working on new ideas on company time as well as on personal time. 8.Put people on small teams for future-oriented projects. 9.Encourage personnel to circumvent rigid procedures and bureaucratic red tape. 10.Reward and promote innovative personnel.

•Entrepreneurial components of the U.S. economy include:

1.Large firms have increased profitability by returning to their "core competencies" through restructuring and downsizing. 2.New entrepreneurial companies have been blossoming in new technologies and new markets. 3.Thousands of smaller firms established by women, minorities, and immigrants have strengthened the economy.

•Entrepreneurial firms make two indispensable contributions to an economy:

1.They are an integral part of the renewal process that pervades and defines market economies. 2.They are the essential mechanism by which millions enter the economic and social mainstream of society.

•Major Research Themes:

1.Venture financing including venture capital and angel capital financing and other financing techniques strengthened in the 1990s. 2.Corporate entrepreneurship and the need for entrepreneurial cultures have drawn increased attention. 3.Social entrepreneurship has unprecedented strength within the new generation of entrepreneurs. 4.Entrepreneurial cognition is providing new insights into the psychological aspects of the entrepreneurial process. 5.Women and minority entrepreneurs appear to face obstacles and difficulties different from those that other entrepreneurs face. 6.The global entrepreneurial movement is increasing. 7.Family businesses have become a stronger focus of research. 8.Entrepreneurial education has become one of the hottest topics in business and engineering schools throughout the world.

•A "gazelle"

A business establishment with at least 20% sales growth in each year for 5 years, starting with a base of at least $100,000 in annual sales.

•Entrepreneur

A catalyst for economic change who uses purposeful searching, careful planning, and sound judgment when carrying out the entrepreneurial process.

•The value system of an owner/entrepreneur is the key to establishing an ethical organization.

A code of ethics provides a clear understanding of the need for: •Ethical administrative decision making •Ethical behavior of employees •Explicit rewards and punishments based on ethical behavior

•Reasons for the exceptional entrepreneurial activity in the United States include:

A national culture that supports risk taking and seeking opportunities. •Americans' alertness to unexploited economic opportunity and a low fear of failure. •U.S. leadership in entrepreneurship education at both the undergraduate and graduate levels. •A high percentage of individuals with professional, technological, or business degrees who are likely to become entrepreneurs.

•Entrepreneurship

A process of innovation and new-venture creation through four major dimensions—individual, organizational, environmental, and process—that is aided by collaborative networks in government, education, and institutions.

•Corporate entrepreneurship strategy is manifested through the presence of three elements:

An entrepreneurial strategic vision •A pro-entrepreneurship organizational architecture •Entrepreneurial processes and behavior as exhibited across the organizational hierarchy

•Financial/Capital School of Thought

Based on the capital-seeking process—the search for seed and growth capital.

•Integrative Approach

Built around the concepts of input to the entrepreneurial process and outcomes from the entrepreneurial process. •Focuses on the entrepreneurial process itself and identifies five key elements that contribute to the process. •Provides a comprehensive picture regarding the nature of entrepreneurship that can be applied at different levels.

•What is value?

Can differ for each person or organization -Can be time, money, piece of mind, happiness, entertainment, etc. •Entrepreneurs create value not previously apparent •Move beyond invention •A business concept that is market-centered and creates new sources or forms of value.

Entrepreneurship can be broken into steps or stages

Characteristics of the process •can be managed •can be improved •applies in organizations of all sizes and types •can be learned

Entrepreneurial Leadership

Combines two capacities of the pursuit of innovation: Capacity to lead Capacity to risk Leadership is measured in: Sense of opportunity Drive to innovate Capacity for accomplishment One of the most significant phrases in the twenty-first century.

•Environmental School of Thought

Considers the external factors that affect a potential entrepreneur's lifestyle.

•Online Ethical Dilemmas in E-commerce

Continuing to obtain consumer trust •Protecting business's online reputation •Avoiding tactics that betray trust •Continuing to exhibit strong ethical responsibility •Establishing an ethical strategy

•Corporate Venturing

Corporate entrepreneurial efforts that lead to new business organizations within the corporate organization

•Entrepreneurs

Create ventures much as an artist creates a painting. •Are formed by the lived experience of venture creation.

•Corporate Innovation

Developing entrepreneurial spirit within the organization •Generating, developing, and implementing new ideas and behaviors

•Critical steps of a corporate entrepreneurial strategy:

Developing the vision 2.Encouraging innovation 3.Structuring for an entrepreneurial climate 4.Preparing individual managers for corporate innovation 5.Developing venture teams

•Entrepreneurial Activity in the United States: Growth in Small Businesses

Entrepreneurs create over 400,000 new businesses each year. •28.8 million small firms provide 48% of private-sector jobs and make up 99.7% of employing firms. •Over the past 5 years, minority-owned firms increased 45.6% and women-owned businesses increased 20.1%. 25 million Americans are starting or running new ventures; 14 million are running established ventures

Entrepreneurship

Entrepreneurship is the process of creating value by bringing together a unique package of resources to exploit an opportunity. The pursuit of opportunity occurs without regard to resources currently controlled.

•Complexity of Ethical Decisions

Extended consequences •Multiple alternatives •Mixed outcomes •Uncertain ethical consequences •Personal implications

•The Entrepreneur's Confrontation with Risk

Financial risk versus profit (return) motive varies in entrepreneurs' desire for wealth. •Career risk—loss of employment security. •Family and social risk—competing commitments of work and family. •Psychic risk—psychological impact of failure on the well-being of entrepreneurs.

Gazelles

Gazelles are the goal of all entrepreneurs. Gazelles receive venture capital. Gazelles were never mice. Gazelles are high tech. Gazelles are global.

•Entrepreneurship

Impacts economic measures for growth, innovation, and internationalization. •Requires confidence in opportunities and determination. •Needs both dynamism and stability for the creation of new businesses and the exit of nonviable ones. •Requires a variety of business phases and types and different types of entrepreneurs including women and various age groups. •Works best when there is a strong set of basic economic requirements in place to reinforce efficiency enhancers. •Flourishes when there is broad societal acceptance of the entrepreneurial mind-set.

•Who Are Entrepreneurs?

Independent individuals, intensely committed and determined to persevere, who work very hard. •Confident optimists who strive for integrity. •They burn with the competitive desire to excel and use failure as a learning tool.

•Linkages in the model:

Individual entrepreneurial cognitions of the organization's members 2.External environmental conditions that invite entrepreneurial activity 3.Top management's entrepreneurial strategic vision for the firm 4.Organizational architectures that encourage entrepreneurial processes and behavior 5.The entrepreneurial processes that are reflected in entrepreneurial behavior 6.Organizational outcomes that result from entrepreneurial actions

•Efficiency-Driven Phase

Industrialization and increased economies of scale •Capital-intensive large organizations

Restoration Orientation

Involves both distracting oneself from thinking about the failure event and being proactive toward secondary causes of stress.

•Ethical rationalizations used to justify questionable conduct involve believing that the activity:

Is not "really" illegal or immoral •Is in the individual's or the firm's best interest •Will never be found out •Helps the firm so the firm will condone it

•Reasons for management to adhere to a high moral code:

It is good business because unethical practices have a corrosive effect, not only on the firm itself, but on free markets and free trade which are fundamental to the survival of the free enterprise system. •Improving the moral climate of the firm will eventually win back the public's confidence in the firm.

•Cognition

Mental functions, processes (thoughts), and states of intelligent humans—attention, remembering, producing and understanding language, solving problems, and making decisions.

•The New Generation of Entrepreneurs:

Millennipreneurs—under age 35 and define success by the positive social or environmental impacts of their business •Ultrapreneurs—focus on environmental and social concerns •Serialpreneurs—have four or more operating companies •Boomerpreneurs—55 years or older and convinced their business has a positive social impact

•Ways Entrepreneurs Cope with Stress

Networking •Getting away from it all •Communicating with employees •Finding satisfaction outside the company •Delegating •Exercising rigorously

Corridor principle:

New pathways or opportunities will arise that lead entrepreneurs in different directions

•Corporate Entrepreneurship

New venture creation within the organization •Transformation of organizations through strategic renewal

•Framework of Frameworks Approach

Offers a more dynamic view of entrepreneurship. •Allows for the profession to move forward. •Identifies the static and dynamic elements of new theories, typologies, or frameworks of importance.

•Social Cognition Theory

Posits that knowledge structures (mental models of cognitions) can be ordered to optimize personal effectiveness within given situations.

•Sources of Ethical Dilemmas

Pressure from inside and outside interests •Changes in societal values, mores, and norms

•Global Entrepreneurship Monitor (GEM):

Provides an annual assessment of the entrepreneurial environment of over 100 countries and 70 economies. •Accounts for 75% of the world's population and 90% of the world's GDP. •250 million entrepreneurs worldwide will potentially create more jobs.

•Ethics

Provides the basic rules or parameters for conducting any activity in an "acceptable" manner •Represents a set of principles prescribing a behavioral code of what is good and right or bad and wrong •Defines "situational" moral duty and obligations

Promote ethical employee behaviors by:

Providing flexibility, innovation, and support of initiative and risk taking •Removing barriers for entrepreneurial middle managers •Including an ethical component to corporate trainin

•Response to rapid, discontinuous, and significant changes in companies' external and internal environments in a global economy:

Restructure of operations in fundamental and meaningful ways •Introduction of corporate entrepreneurship or intrapreneurship •Continuous innovation that allows for pathways to accelerate their pace and cope with competition in world markets

•Critical Elements

Share the vision. •Corporate leaders must share the vision of innovation. •Organization leaders clearly articulate the vision. •Managers and employees develop specific objectives.

•Ethical Codes of Conduct:

Statements of ethical practices or guidelines to which an enterprise adheres. •Are becoming more prevalent in industry. •Are proving to be more meaningful in terms of external legal and social development. •Are more comprehensive in terms of their coverage. •Are easier to implement in terms of the administrative procedures used to enforce them.

•Dynamic States Approach

Stresses dependency of venture on environment and the interaction of: •The dominant logic of the firm •The business model •Value creation

•Metacognitive Model

Study of the higher-order cognitive process that resulted in the entrepreneur framing a task effectually, and thus why and how a particular strategy was included in a set of alternative responses to the decision task (metacognition).

•Factor-Driven Phase

Subsistence agriculture and extraction businesses •Heavy reliance on labor and natural resources

•Organizational barriers that invite unethical behaviors:

Systems •Structures •Policies and procedures •Culture •Strategic direction •People

•Cognitive Adaptability

The ability to be dynamic, flexible, and self-regulating in one's cognitions given dynamic and uncertain task environments.

•Entrepreneurial Stress

The extent to which entrepreneurs' work demands and expectations exceed their abilities to perform as venture initiators, they are likely to experience stress.

•Radical Innovation

The launching of inaugural breakthroughs. These innovations take experimentation and determined vision, which are not necessarily managed but must be recognized and nurtured

•Entrepreneurship

is an integrated concept that permeates an individual's business in an innovative manner.

•Entrepreneur

is derived from the French entreprendre, meaning "to undertake." •The entrepreneur is one who undertakes to organize, manage, and assume the risks of a business. •Although no single definition of entrepreneur exists and no one profile can represent today's entrepreneurs, research is providing an increasingly sharper focus on the subject.

•Entrepreneurship

is more than the mere creation of business:• Seeks opportunities •Takes risks beyond security •Has the tenacity to push an idea through to reality

•The manager

produces results through employees by developing and implementing effective systems and, by interacting with employees, enhances their self-esteem and ability to produce good results.