2. Entrepreneurship
• Entrepreneurship is the willingness to take
risks and develop, organize and manage a
business venture in a competitive global
marketplace .
• An entrepreneur is someone that creates a
new business. Entrepreneurs need to have a
good understanding of their markets. They
find out what customers want and modify
their products in line with market
requirements.
3. Strategic Entrepreneurship
• Entrepreneurship involves identifying and exploiting
entrepreneurial opportunities.
• create the most value entrepreneurial firms need to act
strategically. This calls for an integration of entrepreneurial
and strategic thinking
• Strategic entrepreneurship is taking entrepreneurial actions
using a strategic perspective/thinking.
• Strategic entrepreneurship-involves engaging in simultaneous
opportunities and seeking and to design and implement
entrepreneurial strategies to create wealth.
4. Entrepreneurs Characteristics
• Entrepreneurs demonstrate several
characteristics, including those of being
optimistic, highly motivated, willing to take
risk and responsibility for their projects, and
courageous, etc
5. Entrepreneurial Mind-Set
• The entrepreneurial mindset is defined as ‘a
growth-oriented perspective through which
individuals promote flexibility, creativity,
continuous innovation and renewal’ (Ireland
et al., 2003:968).
6. Entrepreneurial Mind-Set-
Creativity
• Strategic entrepreneurship isfinding and maintaining acompetitive
advantagein aglobalised world. To successfully competeand survive
in aglobal world, entrepreneurs must focus on new initiatives, on
quality and differentiation of products and services is important.
• Globalization removes trade restrictions and tariffs, it creates
new opportunities, and challenges. However, only thosewho take
up theopportunitiescan beseen ashaving an entrepreneurial mind-
set. Regardless of firm size, entrepreneurs can find a place in
the global world.
7. Competitive Advantage
• Allows smaller entrepreneurial companies to
Providing products and services that differ in
– features and performance, and thus avoid
conflicting with bigger industry firms.
9. Entrepreneurial Culture
• Culture refers to attitudes and values which in the
case of entrepreneurship may be linked with
autonomy, creativity and sense of responsibility (soft
skills) and so on. It also refers to entrepreneurial
knowledge and skills and management competencies
which have to be acquired (hard skills).
• An entrepreneurial culture is an environment where
people are motivated to innovate, create and take
risks.
• In a business, an entrepreneurial culture means that
employees are encouraged to bring new ideas ,
create new products and take risks.
10. Entrepreneurial Culture
• Culture can be defined as the mix of norms,
values and beliefs that are shared by a
particular community [be it a business
community, a cultural (or ethnic) community,
a country, or a geographical region].
11. Entrepreneurial culture
Dimensions
• According to J. M. Toulouse (1990),
entrepreneurial culture is described by the
following set of attitudes:
1. Business activities are valued.
2. Individual and collective initiatives
3. Determination and perseverance
• 4. Balance between security and risk taking.
5. Stability and change
• Entrepreneurship culture is the culture that nurture and
develop an entrepreneurial spirit (individuals-group-
organization)
13. Developing Entrepreneurial
Culture• Entrepreneurial leaders must create a unique organizational culture that supports a global
mindset and continuous innovation. Successful 21st century organizations should develop
the entrepreneurial skills of administrators, faculty, staff and students by encouraging
entrepreneurial thinking and behavior. Entrepreneurial leaders must develop a culture
throughout organizations designed to:
– Create and communicate a vision that is relevant to the dreams and aspirations of
colleagues and constituents while encouraging individuals to develop their personal
goals and vision
– Inspire and motivate others to make the organizational vision a reality by creating a
sense of belonging and personal fulfillment
– Develop a global mindset in individuals and organizations that embraces innovation,
which includes change, technology, diversity, fun, creativity, collaboration and a strong
orientation towards the future
– Empower individuals by helping them develop a more internal locus of control, a higher
need for achievement and increased risk taking propensity while tapping into their
aspirations, passions, strengths and talents
– Leverage both human capital (knowledge, skills and abilities) and social capital
(networks and relationships) at the individual and organizational levels
– Value social responsibility, time and intuition
14. Business Culture
•
• helps individuals understand how to treat the customers,
• how they should treat each other,
• how they should act in their jobs,
• how to generally fit in and be successful within the business.
• An entrepreneurial culture is supported by people who have
a strong belief in their projects, who will invest their physical,
psychological and other resources (also including those of
others!) in their venture with a view to succeed.
15. Entrepreneur Culture
• In most cases, knowledge is transferred to
others in the organization to enhance the
entrepreneurial competence of the firm.
• Managers need to develop the capabilities of
individuals and enable them to expand their
knowledge.
16. Building Entrepreneurial Culture
• Sustaining an entrepreneurial culture starts with who you hire. It is
essential to carefully screen prospective employees to ensure that they
will fit within your culture.
• An entrepreneurial culture is sustained reward system, autonomy,
respect you give to employees, and by consistent communication about
vision for the company.
Creating an entrepreneurial culture creates a business that will continue
to grow by adapting to change and by actively pursuing new
opportunities in the market
17. Entrepreneur Leaders
• Entrepreneur Leaders are needed to establish new
ventures and to employ others while developing new
products, services and solutions.
• Entrepreneurial leaders individuals, may or may not
start a business, but are needed because they
behave or act in a proactive manner and move
organizations forward.
• In general, entrepreneurial leaders or individuals
have the ability to recognize and capitalize on
opportunities, innovate, take calculated risks, adapt
to rapid changes and organize resources to
achieve their goals.
18. Entrepreneurial Leadership
• Entrepreneurial leadership refers to individual
leaders who have the ability to create
dynamic, competitive organizations where
innovation and change are as common as
employee, customers and stakeholder support
(McGrath & MacMillan, 2000).
19. What Makes a Entrepreneurial
Culture?
• Leaders/ managers establish an
entrepreneurial culture. Entrepreneurial
culture inspires individuals and groups to
take risks, innovate and to engage in
corporate entrepreneurship.
• Entrepreneurial culture occurs when
individuals are empowered to create and
manage their own businesses.
20. Class Discussion
• How are administrators and instructors in
your organization learning to be more
entrepreneurial?
• What advice would you give your
organization do to help individuals learn to
be more entrepreneurial?
21. • Explain how strategic
entrepreneurship helps firms
create value
22. Strategic Entrepreneur
• To be entrepreneurial, firms must develop an
entrepreneurial mind-set among their managers
and employees.
• Managers must emphasize the management of
their resources, particularly human capital and
social capital.
• Emphasize the importance of knowledge to
identify and exploit opportunities as well as to
gain and sustain a competitive advantage
suggests that firms must have strong human
capital.
23. Strategic Entrepreneurship
• Research shows that by entering global
markets that are new to them, firms can learn
new technologies and management practices
and diffuse this knowledge throughout the
entire enterprise. Furthermore, the
knowledge firms gain can contribute to their
innovations.
24. Strategic Entrepreneurship
• Research shows that because of its economic
importance and individual motives,
entrepreneurial activity is increasing across
the globe. More women are becoming
entrepreneurs because of the economic
opportunity entrepreneurship provides and
the individual independence it affords. In the
United States, for example, women are the
nation’s fastest growing group of
entrepreneurs.
25. Strategic Entrepreneurship
• Cross-functional teams provide opportunities for
workers to think & act creatively.
• When handled effectively, downsizing can create
arrangements through which a firm is able to
focus efforts more on key tasks—e.g., those
required for innovation.
• Allocating significant levels of resources to R&D
can stimulate innovation.
26. Developing a Global Mindset and Cultivating
Continuous Innovation
• Innovation is more than being creative or
coming up with ideas. It is the ability to do
things differently, which generates change.
• Innovation is about coming up with new ideas, products,
collaborations, services and solutions that can be implemented
and used.
• According to a study conducted by IBM’s Global Business
Services (2006), innovation is vital to growth and sustainability
in the current era of rapid change and globalization. Innovation
has become essential to the success of individuals as well as
new and existing organizations.
27. INNOVATION
• Innovation strategy should match the culture
of an organization
• one of the most essential elements of
innovation is risk taking.
• Leaders must realize that innovation is work. It
is a constant process (Schramm, 2006), which
requires knowledge, focus, persistence and
purpose (Drucker, 1985). Innovation also
requires the ability to lead and execute
continuous change.
28. Innovation
• Innovation has an impact on firm outcomes.
• Innovation is a key source of competitive
success for firms competing in turbulent,
competitive markets.
• Innovation is intended to enhance a firm’s
strategic competitiveness and financial
performance.
• Research shows that firms in global industries
that invest more in innovation also achieve
greater returns
29. • that firms generally engage in three types of
innovative activity:
• invention, the act of creating or developing a
new product (good or service) or process idea
• innovation, the process of creating a
commercializable product from invention
• imitation, the adoption of innovation by
similar firms, which often leads to
standardization of the product or process and
lower prices—all of this while maintaining
many of the same features
30. Entrepreneurship opportunities
• Entrepreneurial opportunities represent
conditions in which new products or services
can satisfy a need in the market. The essence
of entrepreneurship is to identify and exploit
these opportunities.
31. Corporate entrepreneurship
• Strategic entrepreneurship is about
innovation and entrepreneurship within
established organizations. This phenomenon
is called corporate entrepreneurship, which is
the use or application of entrepreneurship
within an established firm.
32. INTERNATIONAL ENTREPRENEURSHIP
• Research shows that with increasing
globalization, a growing number of new
ventures are “born global” (i.e., started as an
international concern)
• However, the firm has a higher chance of
successfully competing in international
markets when its top executives have
international experience
34. Economic effects of globalization
• Economic effects of globalization on
Entrepreneurship are: more attention to
technology and the uses of IT.
• Political effects of globalization are: less
control of governments on educational system
and developing human rights.
35. Globalization & Entrepreneurship
Focus on three things:
1. The discovery of opportunities
2. The use of resources to exploit the
opportunities, and
3. The engagement with international
competition
Therefore, understanding the effect of globalization on
entrepreneurship can help entrepreneurs and
investors gain understand the opportunities and
risks in the global environment .
36. Defining Global Entrepreneurship
• Global entrepreneurship is a process whereby
companies are inclined to act more
entrepreneurial due to the effects of
globalization. This process requires
entrepreneurs to alter their operations while
applying innovative marketing strategies and
emphasizing on quality or product
specialization
37. Maintaining a Competitive Advantage
in International Entrepreneurship
• What could a firm/organization do to
maintain a competitive advantage in a Global
Entrepreneurship?
• Internal Innovation
• Research & Development
38. INNOVATION
• In most cases, innovation is developed
through Research and Development (R&D).
• Research shows that R&D is the most critical
factor in gaining and sustaining a competitive
advantage in some industries (e.g.,
pharmaceuticals).
39. Types of Innovations
• Incremental and Radical Innovation
•
• Most innovations are incremental. That is, they
build on existing knowledge bases and provide
small improvements in the current product lines.
• Alternatively, radical innovations usually provide
new significant technology and create new
knowledge. Radical innovations are rare
because of the difficulty and risk involved in
developing them.
40. Internal Corporate Venturing
• Internal corporate venturing represents the set of activities used to
create inventions and innovations within an organization
Internal corporate venturing involves two types of behaviors:
• Autonomous strategic behavior is a bottom-up process which
enables product champions to pursue new product ideas and
sponsor them through a political process until they achieve
commercial success.
•
• Induced strategic behavior is a top-down process where product
and process ideas are developed within the context of a firm’s
existing strategy, structure, and strategic vision.
41. • Autonomous strategic behavior is based on a
firm’s knowledge and resources that are the
sources of a firm’s innovation, so a firm’s
capabilities and competencies are the basis for
new products and processes.
• Product champions play a critical role in
advancing innovations within the firm.
• A product champion is a member of an
organization who has an entrepreneurial vision
(or mental image) of a new good or service and
seeks to create support for its commercialization.
42. Induced Strategic Behavior
•
• The second approach to creating internal corporate
venturing is induced strategic behavior, a top-down
process where the current strategy and structure
foster product innovations that are associated closely
with the firm’s current strategy and structure.
• In other words, strategy is filtered through the firm’s
existing structural hierarchy, a process that leads to
internal innovations that are highly consistent with the
firm’s current strategies.
43. IMPLEMENTING INTERNAL
INNOVATIONS
• Cross-Functional Product Development Teams
•
• Cross-functional teams facilitate efforts to
integrate activities associated with different
organizational functions (e.g., design,
manufacturing, and marketing).
• In addition, new product development processes
can be completed more quickly and the products
more easily commercialized when cross-
functional teams work effectively.
44. Barriers to Cross-Functional Teams
• There are two primary barriers that may prevent the use of cross-
functional teams as a means of integrating organizational functions:
• (1) Independent mind-set of team members
• (2) organizational politics.
• Organizational Politics may center on allocating resources to
different functions.
• Inter-unit conflict may result from aggressive competition for
resources among those representing different organizational
functions.
• Individuals from different functional departments have different
orientations on these dimensions and will view product
development activities in different ways.
45. Facilitating Integration and
Innovation
• Shared values and effective leadership are important to achieving
cross-functional integration and implementing innovation. Highly
effective shared values are framed around the firm’s vision and
mission, and they become the glue that promotes integration
between functional units. Thus, the firm’s culture should promote
unity and internal innovation.
• Strategic leadership is also highly important for achieving cross-
functional integration and promoting innovation. Leaders set goals
and allocate resources.
• The goals include integrated development and commercialization of
new goods and services. Effective strategic leaders also ensure a
high-quality communication system to facilitate cross-functional
integration.
46. How can firms create value from the
internal processes?
• Promote an entrepreneurial mind-set is necessary so that
managers and employees will consistently try to identify
entrepreneurial opportunities the firm can pursue by developing
new goods and services and new markets.
•
• Create Cross-functional teams promote integrated new product
ideas and commitment to their implementation.
• Promote effective leadership and shared values , which promote
integration and vision for innovation and commitment to it.
• Focus on the creation of value for the customers and shareholders
by developing new products
47. Creating Value from Innovation
• An entrepreneurial mind-set must be
developed so that managers and employees
seek to identify and exploit opportunities for
new goods and services and new markets.
• Cross-functional teams are important to
promote integrated new product, design,
ideas, and commitment
48. summary
• Entrepreneurs and small businesses are no
longer limited to domestic markets. In fact, it
is becoming a must for locally oriented
entrepreneurs to participate and compete in
the international market
49. Globalization
• Globalization is an inevitable multi-
dimensional process, and a new historical
experience which traversed (rises) economic
borders to cultural, and political space. It
affects different aspects of education system
such as economy, culture, and politic.
50. Effects of Globalization on
Entrepreneurship
• Economic effects of globalization on entrepreneurship are: more
attention to technology and the uses of IT. Political effects of globalization
are: less control of governments on educational system and developing
human rights. The cultural effects of globalization are: developing the
culture of western countries and shortening the local culture. It can be a
risk to the values of religion and nationality for schools in their curriculum.
• Globalization is not only an economical phenomena but it is the most
important aspect of economy. Some of the researchers believed
globalization of economy could be transmitted to the politic, culture
and society
51. Corporate Entrepreneurship?
• Define the term as the process by which
teams within an established company
conceive, foster, launch and manage a new
business that is distinct from the parent
company but leverages the parent’s assets,
market position, capabilities or other re-
sources
