The document discusses entrepreneurship and outlines several key points: - There are two main types of entrepreneurial goals: maintaining ongoing business operations or sustaining business growth through expansion. - Business plans must consider numerous factors such as the target market, production requirements, financial needs, and risks to address. - Entrepreneurship involves both rewards like independence and wealth creation, as well as risks such as financial or career failures. - Intrapreneurial organizations encourage entrepreneurial thinking within their existing structure by empowering employees, rewarding new ideas, and having a shared vision.

1. Entrepreneurship
You want to do this on your own??
Hospitality Operations: Careers in the World’s Greatest Industry, 1/e ©2005 Pearson Education, Inc.
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
Two Types of Entrepreneurial Goals
• To develop a business that meets the financial
needs of themselves and their families (goal:
maintenance of on-going operations).
• To learn whether success can be duplicated
by business expansion (goal: sustained
business growth).
©2005 Pearson Education, Inc.
Hospitality Operations: Careers in the World’s Greatest Industry, 1/e
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458 OH- 33.1
All About Entrepreneurs
• They have entrepreneurial talent but do not
want to start their own business.
• They work best in organizations that give
them responsibility for a defined part of the
business.
• Example: a general manager of one unit in a
multi-unit restaurant chain who participates in
a profit-sharing plan.
Hospitality Operations: Careers in the World’s Greatest Industry, 1/e ©2005 Pearson Education, Inc. OH- 33.2
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
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2. A Recipe for the Entrepreneurial Process
Hospitality Operations: Careers in the World’s Greatest Industry, 1/e ©2005 Pearson Education, Inc. OH- 33.3
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
Business Plans Must Consider
Numerous Factors
• Characteristics and size of the potential market
• A market plan
• Production and service requirements
• How the new organization will be organized
• Financial (start-up and working capital) requirements
• Mission, goals, and objectives for the new business
• Background information about the origin of the new
business
Hospitality Operations: Careers in the World’s Greatest Industry, 1/e ©2005 Pearson Education, Inc. OH- 33.4
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
Still More Factors to Consider in Business Plans
• Detailed listing of products and services to be provided
• Background and qualifications of the proposed management
team
• Marketing strategy
• Design and development plans
• Operating plans
• Schedule of completion dates for major aspects of the
business plan
• Applicable risks, problems, and challenges that need to be
addressed and alternatives for addressing them
Hospitality Operations: Careers in the World’s Greatest Industry, 1/e ©2005 Pearson Education, Inc. OH- 33.5
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
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3. Entrepreneurial Risks
• Financial Risks
• Career Risks
• Personal Risks
• Psychological Risks
Hospitality Operations: Careers in the World’s Greatest Industry, 1/e ©2005 Pearson Education, Inc. OH- 33.6
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
Entrepreneurial Rewards
• The possibility of financial success that
yields wealth not otherwise possible
• Personal and professional satisfaction that
comes from a sense of achievement
• Community status
• Independence gained from being one’s
own boss
• Control over one’s life
Hospitality Operations: Careers in the World’s Greatest Industry, 1/e ©2005 Pearson Education, Inc. OH- 33.7
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
Reasons for New Business Failure
Hospitality Operations: Careers in the World’s Greatest Industry, 1/e ©2005 Pearson Education, Inc. OH- 33.8
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
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4. Traits of Intrapreneurial Hospitality Organizations
• They have a realistic vision that is widely
understood by and shared with their staff
members.
• They have recruited staff members with
entrepreneurial talents and abilities.
• They emphasize teamwork.
• They reward success and do not punish persons for
creative efforts to improve the organization.
Hospitality Operations: Careers in the World’s Greatest Industry, 1/e ©2005 Pearson Education, Inc. OH- 33.9
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
What Do Intrapreneurs Do?
They:
• Dream or think about ideas that could improve the operation
• Obtain ideas from others
• Take ownership in ideas
• Know when they need to obtain approval
• Experiment with new ideas
• Look for short-term successes
• Understand the environment
• Encourage open discussion with their team members
• Build a coalition of support
• Recognize the importance of persistence
• Recognize the importance of the team
• Keep their boss informed
©2005 Pearson Education, Inc.
Hospitality Operations: Careers in the World’s Greatest Industry, 1/e
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458 OH- 33.10
Putting It All Together: An Evolution in Management Style
©2005 Pearson Education, Inc.
Hospitality Operations: Careers in the World’s Greatest Industry, 1/e
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458 OH- 33.11
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