Entrepreneurship

Entrepreneurship is a dynamic process that involves

change and creation

Entrepreneurship can be defined as the

identification, evaluation and exploitation of
previously unexploited opportunities. The focus is on
creation of a new enterprise or business as well as
the wealth associated with it. Essential dimensions
or ingredients include willingness to take calculated
risk, the skill to apply creative solutions and new
ideas and finally, being pro-active to act on
opportunities while others are still confused or
unaware of the potential at hand.
 Entrepreneurship
Entrepreneurship encompasses several dimensions
or ingredients that help explain what makes it a
unique concept

The key dimensions of entrepreneurship include:

- Risk
- Creativity & innovation
- Opportunity exploitation
- Proactiveness
 Dimensions of Entrepreneurship:
Risk
 Risk indicates elements of uncertain outcomes or
events that is inherent in the process of exploiting an
opportunity and starting a business

 Entrepreneurs take risks in order to obtain the

higher rewards that come from higher risk but are
careful to evaluate the risk first.

 Success comes from taking a calculated, carefully-

thought out approach to risk where everything
possible is done to identify and minimize potential
problems
 Dimensions of Entrepreneurship:
Creativity & Innovation
 Entrepreneurship is characterized by newness or
the specific effort of bringing something new and
something different to the market.

 Being creative and innovative are essential

dimensions of newness

 Creativity focuses on thinking of new things while

innovation focuses on doing new things
 Dimensions of Entrepreneurship:
Opportunity Exploitation
 Entrepreneurship is focused on taking
advantage or exploiting of previously
unexploited opportunities

 The exploitation of opportunities often result

in the creation of a new enterprise or
business as well as the wealth associated
with it

 The new enterprise should be beneficial to

the society and make a positive change
 Dimensions of Entrepreneurship:
Proactiveness
 Pro-activeness refers to the propensity to act
on information, ideas and opportunities in a
timely and speedy manner

 Acting at the right time and in the right manner

on the superiority of an idea or opportunity can
differentiate between better success or less
success or even between success and failure
 Entrepreneurial Process
 The entrepreneurial process, in general
,encompasses all the cognitive (thinking) and
behavioral (action) steps from the initial
emergence of a rough business idea until the
creation of a new business venture or the
process is terminated.
 Entrepreneurial Process
 The entrepreneurial process is generally
composed of three key phases
 The idea generation or idea discovery
phase
 The idea evaluation and development
phase
 The idea exploitation phase

 The following figure shows the entrepreneurial

process with examples of activities at each
stage
 Entrepreneurial Process
Idea Search & Idea Evaluation & Idea Exploitation
Generation Phase Development Phase Phase

Idea Discovery Research & Development Business Start-up

(Invention/Innovation)
Idea Screening Technology
Concept Testing
Commercialization
Prototyping
Monitoring &
Test Marketing Evaluation
Technology Blueprint
 Entrepreneurial Process:
Idea Formation/Discover Phase
 This phase is also known as the opportunity formation
or opportunity discovery phase

 Both the terms ‘idea’ and ‘opportunity’ indicate the

possibility of bringing something new to the market

 Individuals or groups of individuals enter this phase by

either:
 Actively searching for business possibilities that they can offer
in a better, more creative or efficient form or
 Discovering a solution for their own problem experienced at
work, play or in the marketplace that has the potential of
being shared with others who are willing to pay for the
solution
 Entrepreneurial Process:
Idea Formation/Discover Phase

 This phase is characterized by

efforts to better understand what it
will take to bring the idea or
opportunity into a full-fledge
economic activity or business
 Intrapreneur
(Corporate Entrepreneur)

In 1978, management consultant, Gifford

Pinchot, invented the new word Intrapreneur to
refer to an intra-corporate entrepreneur while
he was attending The School for Entrepreneurs
in Tarrytown, New York.
April 17, 1982, in an article in the Economist,
Norman Macrae gave credit to Gifford Pinchot
as the inventor of the word "intrapreneur".
 Intrapreneur
(Corporate Entrepreneur)
In 1992, the third edition of the American Heritage
dictionary of the English Language added the word
“Intrapreneur” to its dictionary as below:
in-tra-pre-neur (InÕtre-pre-nur) n. A person within
a large corporation who takes direct responsibility
for turning an idea into a profitable finished product
through assertive risk-taking and innovation
[intra(corporate) + (ENTRE)PRENEUR.] -inftrapre-
nouri-al adj. -intra-pre-neuri-al-ism n. -in'trapre-
neuri-al-ly adv.
 Intrapreneur
(Corporate Entrepreneur)
It is reported that several large corporations have
started to embrace this form of intra-corporate
entrepreneurship. 3M is the best known example
Intrapreneurship is the process by which individuals
pursue a new business opportunity (or by setting up
intraprises) from within an existing company, with
resources of that company.
It uses the advantages of both small and big scale
business. In a broad sense, intrapreneurship refers to all
kinds of forms of semi-autonomy and semi-responsibility
within corporations.
 Intrapreneurship
Advantages to the corporation
“To remain competitive, companies have to
accelerate their innovation process. In companies
where distances between decisions makers,
researchers, production people and marketeers
are large, innovation may be at risk.
Intrapreneurship is a good way of integrating these
activities, reducing innovation costs and
broadening the scope of innovation.”
Dr. Hielke S. van der Meulen, theme co-ordinator Intrapreneurship, NCE
 Intrapreneurship
Advantages to the employees
“Intrapreneuring is an excellent opportunity for
creative employees with entrepreneurial spirit,
management qualities, and a sense of belonging
to their company.

If companies don't want to loose these high-

potentials, they have to provide them with the
necessary resources and room for maneuver.”

Dr. Hielke S. van der Meulen, theme co-ordinator Intrapreneurship, NCE

 Intrapreneurship
You don’t have to leave your company to
fulfill your entrepreneurial dream
If you have the great entrepreneurial
qualities and spirit to convince your
company to endorse you as their
intrapreneur, you need not leave them,
unless you have other better reasons to do
so