The document discusses creating an entrepreneurial culture to support small and medium enterprises (SMEs). It defines entrepreneurial culture as a set of shared values and attitudes that view an entrepreneurial way of life as desirable. An entrepreneurial way of life involves greater freedom, responsibility, and uncertainty. Government and corporate cultures often conflict with small business realities through rigid rules and bureaucracies. Developing an entrepreneurial culture requires agencies to adopt entrepreneurial strategies like decentralized decision-making, partnerships, and a bottom-up approach to better understand and support entrepreneurs.
2. • Enterprise or Entrepreneurial Culture- “set of values
,beliefs and attitudes commonly shared in a society
which underpin the notion of an entrepreneurial ‘ way
of life’ as being desirable and in turn support the
pursuit of effective entrepreneurial behavior by
individual or groups”.
• For example: In the field of management training and
development to stress the important influence of the
organizational culture in shaping the effectiveness of
training interventions.
Enterprise Culture
3. An entrepreneurial way of life should be fostered by programmes
aimed to stimulate the development of entrepreneurship and small
businesses which involves:
• Greater freedom in making decisions
• Greater control over what is to be done and bear a greater
responsibility for the results.
• Living in a situation where rewards will be linked directly and
immediately to whether the customer buys the service or product.
The entrepreneurial ‘way of life’
4. Overall living each day with greater uncertainty and inability to
control the actions of a wide range of stakeholders upon whom the
success of a business depend.
Working long, irregular hours in order to meet unexpected targets
A position where learning happens under pressure from customers ,
suppliers, bankers and by the process of solving problems and
generally ‘learning by doing’ .
5. Entrepreneur are characterized by:
• Opportunity seeking
• Opportunity grasping
• Proactive in taking initiatives
• Take intuitive decisions with limited information.
• Managing effective networks
• Have commitment.
Effective entrepreneurial behavior
6. • All Entrepreneurs are however not moral or ethical
in their demeanor
• Example cited in this article are of the drug mafia
and drug traffickers which in a way extends to
black marketing and all nefarious activities.
• So can we say that the above mentioned
behaviors were effective entrepreneurial
behaviors ??
• Entrepreneurial behavior to be effective, has to contribute to
social and economic development of the community.
Effective entrepreneurial
behavior
7. Stakeholders are defined as all those institutions
and individuals who have a direct interface with
or may be directly affected by the activities of the
SME or the agency.
Without deliberate intent they may set rules and
regulations which substantially constrain effective
entrepreneurial behavior.
There is little point in developing individual
entrepreneurs if their key influences are hostile to
the entrepreneurial way of life.
Actors in the stakeholder’s
environment
8.
9. Most business development agencies operating in
the field of entrepreneurship development claim
their customers were entrepreneurs ,their support
organizations like NGO’s, customers, but the most
demanding customers are the supplier of the
resources, donor agencies…the grant giver, the
government, the funder organization and so on..
A key issue : Donors‟ „ways of doing things‟ may be
in conflict with those of the more informal
entrepreneur.
Is there a ‘cultural’ problem
10. • What then are the qualities that are associated
with entrepreneurs ?
Government / Corporate Small Business Reality
Order Untidiness
Formal Informal
Accountability Trust
Information Judgment
Demarcation Overlap
Planning Intuition
Corporate Strategy Strategic Awareness
Control Autonomy
Standards Personal Observation
Transparency Ambiguity
Position Ownership
The Culture Problem
11. • Rules and bindings like this exposes the
business interest of entrepreneur
• They are like the Two poles that seldom
meet
• The niceties of legal machinery and
bureaucratic norms are strong in most
countries which acts as deterrents.
• This more often than not kills business ideas
and disillusions entrepreneurs
• For instance in India, a Government
contract is given to individuals who can
deliver at the most economical rates
12. The rules , the regulations, the bonds deter
the entrepreneur in having relationship with
the donor organizations.
Agencies that are tied to this supply side
culture may find that they cannot flexibly
innovate, make up things and change
direction as they go along.
13. Adapting to a bureaucratic culture is costly
for the small firm.
The cultural moorings between the two
different segments have to be aligned for
fostering trust and promoting business
dealings
14. Developing empathy with entrepreneurial
“way of life”
Code of moral and ethical conduct
Broad Strategic Development
Holistic Management Style
Strategic Awareness
Better understanding
Importance of decentralized power structures
Importance of decision making
What can be done?
15. Four Keys Strategies are :-
• Building an entrepreneurial
organization.
• Applying Holistic
Management.
• Developing learning
partnerships and circles.
• Developing a bottom up
approach.
Agency strategies for pursuing
the enterprise culture
16. • Visible
• Politically supported
• Facilitator
• Offering direct benefits to public
• Partnership with key stakeholders
• Offering relevant coverage
• Operating an entrepreneurial “Know-Who” set of
effective relationships
• Able to convey the achievements of the agency
• To be seen as an entrepreneurial organization with
innovative ideas
The Development Agency as a
Community Entrepreneur
17. • For developing the “Enterprise Culture” in
the community, the emphasis must be
upon creating „learning opportunities‟.
• Agency must become a learning
organization by its openness to
involvement with and learning from
relevant actors and their stake holders
environment
• Agencies must know how things work and
must study how relationships can be
improved
The Agency as Facilitator for
Entrepreneurial Learning
18. • Organizing knowledge around the „need to
know‟ of specific actors & customers.
• Building relationship learning between SME
and relevant stakeholders
• “The World of Learning” therefore becomes
the “The World of Work” and “Life World" of
the entrepreneur.
19. • Enterprise culture is a notion of great
significance for small business
development.
• The root is to recognize the Entrepreneur‟s
way of life and its implication for the
organizational design of the SME support
system.
• An effective Entrepreneurial behavior
focuses on achieving net social and
economic gain of the society.
Conclusion
20. Partnerships for SME promotion should be
created strategically with the SME‟s
stakeholder development in mind.
Partnerships with local and national actors
should be seen as a strategic action for the
long term sustainability.
21. Enterprise Culture cannot be taught but,
in the best of entrepreneurial traditions,
become embedded via a process of
experience