ENTREPRENUERSHIP

LEARNING OBJECTIVES

SYEDA AQSA ALI

3rd YEAR
BBA VI
SUBMITTED TO: MA’AM SHEHNAZ
 CHAPTER NUMBER 1:

OBJECTIVE NO 1:

To explain the importance of entrepreneur’s for economic growth?

Everything you need to know about the role of entrepreneurs in economic development.
Economic development essentially means a process of upward change whereby the real per
capita income of a country increases over a period of time. Entrepreneur plays a vital role in
economic development. Entrepreneurs serve as the catalysts in the process of industrialization
and economic growth. Technical progress alone cannot lead to economic development, unless
technological breakthroughs are put to economic use by entrepreneurs.

 Entrepreneurship is important, as it has the ability to improve standards of living and

create wealth, not only for the entrepreneurs but also for related businesses.

 Entrepreneurs also help drive change with innovation, where new and improved
products enable new markets to be developed.

 Too much entrepreneurship (i.e., high self-employment) can be detrimental to economic

development.

1. Capital Formation:

Entrepreneurs mobilize the idle savings of the public through the issues of industrial securities.
Investment of public savings in industry results in productive utilization of national resources.
Rate of capital formation increases which is essential for rapid economic growth. Thus, an
entrepreneur is the creator of wealth.

2. Improvement in Per Capita Income:

Entrepreneurs locate and exploit opportunities. They convert the latent and idle resources like
land, labor and capital into national income and wealth in the form of goods and services. They
help to increase net national product and per capita income in the country, which are important
yardsticks for measuring economic growth.

3. Generation of Employment:

Entrepreneurs generate employment both directly and indirectly. Directly, self-employment as

an entrepreneur offers the best way for independent and honorable life. Indirectly, by setting up
large and small scale business units they offer jobs to millions. Thus, entrepreneurship helps to
reduce the unemployment problem in the country.

4. Balance Regional Development:

Entrepreneurs in the public and private sectors help to remove regional disparities in economic
development. They set up industries in backward areas to avail various concessions and
subsidies offered by the central and state governments.

5. Improvement in Living Standards:

Entrepreneurs set up industries which remove scarcity of essential commodities and introduce
new products. Production of goods on mass scale and manufacture of handicrafts, etc., in the
small scale sector help to improve the standards of life of a common man. These offer goods at
lower costs and increase variety in consumption.

6. Economic Independence:

Entrepreneurship is essential for national self-reliance. Industrialists help to manufacture

indigenous substitutes of hitherto imported products thereby reducing dependence on foreign
countries. Businessmen also export goods and services on a large scale and thereby earn the
scarce foreign exchange for the country.

7. Backward and Forward Linkages:

An entrepreneur initiates change which has a chain reaction. Setting up of an enterprise has
several backward and forward linkages. For example- the establishment of a steel plant
generates several ancillary units and expands the demand for iron ore, coal, etc.

OBJECTIVE NO 2:

To introduce the concept of entrepreneurial edge within individuals

TO INTRODUCE THE CONCEPT OF AN ENTREPRENEURIAL EDGE WITHIN

INDIVIDUALS;

It is also known as Actionable Entrepreneurial Learning. Entrepreneurial Edge is dedicated to

offering outstanding self-paced, online courses that enable you to develop your business more
effectively and efficiently. Every course is created with real-life examples designed to provide
actionable take-away so you can put your knowledge to work right away. It will help in seeing
their strengths and weaknesses and help to overcome them. Learning is the skill of life. You
learn you succeed.
OBJECTIVE NO 3:

To examine the entrepreneurial revolution taking place today

ENTREPRENEURIAL REVOLUTION TODAY:

The idea of the Entrepreneur Revolution is that the rules that created commercial success in the
past have radically changed. Doing what worked yesterday may not bring you success tomorrow.
An entrepreneur is simply someone who spots an opportunity and acts to make it into a
commercial success. A revolution is a great shift in society, where an old system is thrown out
and a new one is embraced. In all of history, the real fortunes are made in revolutionary times.
The difference with this revolution is that it presents a chance for wealth to spread to a lot more
people. The tools, technology and opportunities that have shown up recently are designed to
empower people lots of people.

We are living in the age of the Startup and the beginning of the entrepreneurial revolution.

Success will be determined by the four forces of

 Globalization
 Digitalization
 Collaboration
 Mindset

The biggest challenge though to overcome is Mindset – we need to re-wire our brains. But when
we are successful, we as entrepreneurs will be able to make huge positive contributions to our
communities, to help those who are in need, to create new opportunities and to transcend
humanity.

Entrepreneur Revolution means taking the initiative to do something that you love, something
that you’re good at, and something that will make you money. This master class in gaining an
entrepreneurial mindset will show how to change the way you think, the way you network, and
the way you make a living.

 Includes new statistics, activities, case studies, and research

 Takes a look at how the brain can affect the entrepreneurial mindset
 Offers new ideas for entrepreneurs starting a new business
 Helps you shake off old ideas and make a great, independent leap forward

This inspiring and practical book shows you how to break free from The Industrial Revolution
mindset, quit working so hard, follow your dream—and make a fortune along the way.
OBJECTIVE NO 4:
To illustrate the entrepreneurial environment

ENTREPRENEURIAL ENVIRONMENT:

Entrepreneurial Environment is a combination of factors that play a role in the development of

entrepreneurship. It refers the availability of assistance and support services that facilitate the
start-up process. The available literature on entrepreneurial environments can be grouped into
three broad streams:

 General environmental conditions for entrepreneurship.

 Environmental conditions of a particular country or region
 The role of public policy in shaping the entrepreneurial environments.

GENERAL ENVIRONMENTAL CONDITIONS:

General environmental condition that may influence entrepreneurship includes:

 Legal and institutional frameworks for efficient functioning of private enterprises.

 Presence of experienced entrepreneurs and skilled labor force.
 Accessibility of suppliers and customers or new markets
 High degree of competition among firms
 Favorable government policies
 Provision of training and support services
 Supportive infrastructure

ENVIRONMENTAL ANALYSIS
Positive environment

Encourages entrepreneurial development and growth

This is called entrepreneurial motivation

OBJECTIVE NO 5:

To highlight some of the latest trends in entrepreneurial research

 More Specialized Business Education

 Younger Entrepreneurs
 More Internet Media Outfits
 Mobile Businesses
 Hyper local Specialty Shops
 Green Businesses
 Entrepreneur communities flourish Raw Materials.
 Market.
 Infrastructure
 Mobile Commerce
 Social Commerce
 The Gig Economy

OBJECTIVE NO 6:

To understand the trends those occur in entrepreneurship education

1. Experiential learning to develop an entrepreneurial mindset

Educational institutes will design their curriculum in a way that it will push students out of the
classrooms and embrace learning by doing it.

2. Setting up of e-cells and incubation centers

Currently, only a handful of educational institutes have e-cells and incubation centers where
students can tinker and play with innovation, can build prototypes and validate their ideas.

3. Participation in student entrepreneurship boot camps

Educational institutes, especially those who have monetary or space constraints to offer
dedicated entrepreneurial education on campus will consider sending their students to startup
boot camps.

4: MBA Transformation and New Course Formats

According to many analysts, the era of classic MBA program expectations at least experiences a
serious transformation, if not sunset. The fact is that the very format of these programs, which
are offered in all business schools in the world, no longer meets the real needs of students. That
is why a number of MBA programs may be closed in the future, and the format of the remaining
ones will be converted. MBA programs will be replaced by more modern and relevant
specialized master’s programs, certificate and diploma courses, as well as non-gradual short-
term courses of various specializations.
 CHAPTER NUMBER 2:

OBJECTIVE NO 1:
To examine the historical development of entrepreneurs and of entrepreneurship

Entrepreneurship is not a concept that has a tightly agreed definition. In modern common usage
an ‘entrepreneur’ is ‘a person who undertakes an enterprise, especially a commercial one, often
at personal financial risk’. The first entrepreneurs can be traced back to nearly 20,000 years ago.

OBJECTIVE NO 2:
To explore and debunk the myths of entrepreneurship

Myth #1: Entrepreneurs raise money from venture capitalists Venture capital money is on the
list, but personal loans, credit, friends, and family far outweigh the venture capitalist funding. If
you want to be a successful entrepreneur, you need to put up your own money.

Myth #2: Entrepreneurs know exactly what they want, and how to get it. Maybe some
entrepreneurs have a laser-focused goal and a clear plan for getting there. But that’s not normal.
In fact many entrepreneurs have no clue how to achieve their entrepreneurial passions.
Entrepreneurship is a process of trying, failing, trying again, and succeeding, trying again, and
trying again.

Myth #3: Entrepreneurs are their own boss. Nobody is their own boss. Everyone has someone
they report to. The Biggest advantage of being an entrepreneur.

Myth #4: Entrepreneurs are usually rich. Nope. Some entrepreneurs might become rich, but
they certainly don’t start that way.

Myth #5: Entrepreneurs have great ideas. Some people may not attempt to start their own
business because they don’t have a unique idea. You don’t need to reinvent the wheel to be an
entrepreneur. There’s nothing wrong with taking an existing idea and making your own business
out of it.
OBJECTIVE NO 3:

To define and explore the major schools of entrepreneurial thought

MACRO VIEW:

Environmental School Of Thought:

This school of thoughts asserts that an entrepreneur’s success is the direct influenced by his or
her environment.

The Financial/Capital School Of Thought:

This school of thoughts reckons that an entrepreneur can only get somewhere if he or she

• Has capital

• Knows how to grow it

• Knows how to manage it

The Displacement School of Thought:

This school of thought, which I think is quite fascinating, revolves around a situation where a
person feels left out or displaced.

MICRO VIEW:

The micro view of entrepreneurship focuses on the individuals.

The Entrepreneurial Trait School of Thought:

This area absolutely fascinates academics. They feel one can uncover specific characteristics that
make an entrepreneur an entrepreneur.

Value Opportunity School of Thought:

This is almost a hybrid macro/micro school of thought. It simply asserts that an entrepreneur’s
ability to spot, see and execute on a market pain influences his or her success as an
entrepreneur.
OBJECTIVE NO 4:
To explain the process approaches to the study of entrepreneurship

Strategic Formulation School of Thought:

This school holds that an entrepreneur’s ability to target unique markets, with a unique strategy
is the ultimate determinant of success.

1. Sociological Approach:

2. Psychological Approach

3. Political Approach

4. Composite Approach

1. Sociological Approach: The sociological approach to the study of entrepreneurship

deals with social and cultural factors responsible for the nature and growth of entrepreneurship
development in a society. It attempts to understand as to why a social structure and culture
facilitates or inhibits entrepreneurial development. It believes that laws of development lie in
the social structure and culture of a region.

2. Psychological Approach: We have understood by now that the entrepreneur is not a

common person. He has a typical personality with creative, managerial and imaginative skill
who can innovate and contribute positively to an industrial project. This kind of personality
develops in a person who has strong motivation for achievement.

3. Political Approach: The political approach to entrepreneurship deals with the issues
involved in relationships between entrepreneurship development and the state particularly in
the context of the role of the latter in the development of entrepreneurs. The role of the
government is crucial in deciding the nature and rate of development.

4. Composite Approach: The entrepreneurship is a complex phenomenon. None of the

approaches discussed above has been able to explain the entrepreneurial dynamics fully. Due to
their non-holistic nature, they have failed to offer the precise laws of supply and success of
entrepreneurship.
OBJECTIVE NO 5:

To set forth a comprehensive definition of entrepreneurship

Entrepreneurship refers to the concept of developing and managing a business venture in order
to gain profit by taking several risks in the corporate world. Simply put, entrepreneurship is the
willingness to start a new business. Entrepreneurship has played a vital role in the economic
development of the expanding global marketplace.
 CHAPTER NUMBER 3:
OBJECTIVE NO 1

TO UNDERSTAND THE ENTREPRENEURIAL MINDSET IN ORGANIZATIONS

ENTREPRENEURIAL MINDSET IN ORGANIZATIONS:

TO UNDERSTAND THE ENTREPRENEURIAL MIND-SET IN ORGANIZATION

The global economy is creating profound and substantial change for organizations and
industries around the world. These changes force companies to carefully consider their objective
and to devote close attention to selecting and monitoring strategies that have a high probability
of satisfying multiple stakeholders. The new century sees business strategies highly focused on
innovation.

Factors in the emergence of the entrepreneurial economy:

1. The rapid evolution of knowledge and technology promoted high-tech

entrepreneurial startups.
2. Demographic trends adding fuel to the proliferation of newly developing ventures.
3. The venture capital market became an effective funding mechanism.
4. American industry began to learn how to manage entrepreneurship.

OBJECTIVE NO 2

TO ILLUSTRATE THE NEED FOR ENTREPRENEURIAL THINKING IN

ORGANIZATIONS

Having entrepreneurial thinking skills and putting them to good use is not important for
business owners alone but for everyone pursuing a successful career. Employees with such skills
stand out because they tend to think creatively and take ownership of their jobs as well as
performance. Following are some benefits of entrepreneurial thinking skills that can translate
into employee satisfaction, positive work environment, and ultimately profits for the
organization:
• Entrepreneurial thinking helps you stay ahead of others at work. It helps you tackle the
ever increasing competition and rise through ranks. Your ability to identify problem quicker and
provide solution timely is likely to put forward the best of you in front of your employer.

• It allows for more flexibility in you. Entrepreneurial thinking can change your attitude
towards th organization as well as yourself. Through the flexibility that it allows, it enables you
to adapt to the changing environment such as the changes in competitive landscape, market
dynamics, and consumer trends/demands etc. Little or no time is wasted in resistance towards
the change, speeding up your career growth.

1. Thinking like an entrepreneur will help you right from the beginning

You have a plan for your business, you’ve figured out all the details, and you’re ready to start
making money, but it’s normal to feel worried or anxious about your new venture. Here’s where
you should begin to channel your inner entrepreneur! Creating that entrepreneurial mindset will
help you to think about what you’re doing and why. It will help you to know where you would
like your business to lead you, and what risks you’re willing to take to succeed. If you know the
answers to these questions, you’ll be ready to tackle all the challenges your new business throws
at you.

2. An entrepreneurial mindset will help you in other areas of your life

Being willing to take risks and accept failure is a unique skill that isn’t relevant solely in the
business world. Incorporating an entrepreneurial mindset into your everyday life will help you
to minimize the importance of failure and rejection in your life. It will also help you to keep
moving forward even when things are difficult. Additionally, being able to plan ahead and
foresee potential problems (a key part of an entrepreneurial mindset) will help you to live a
more organized, less stressful life. In turn, this will help you to better run your business.

OBJECTIVE NO 3

TO DEFINE THE TERM CORPORATE ENTREPRENEURSHIP

CORPORATE ENTREPRENEURSHIP

Corporate entrepreneurship, or intrapreneurship as it is often referred to, is the concept of

supporting employees to think and behave like entrepreneurs within the confines of an existing
organizational structure. Employees with the right vision and skills are encouraged to identify
opportunities and develop ideas which lead to innovative new products, services or even new
lines of business.

OBJECTIVE NO 4

TO DESCRIBE THE CORPORATE OBSTACLES PREVENTING INNOVATION

WITHIN CORPORATIONS

• Missed Innovation Strategy : One of the most important elements of taking your
organization from an emerging newcomer to an established brand, is your company’s innovation
strategy. Constant innovation enables your business to remain constantly proactive rather than
reactive. An innovation strategy helps to define the direction of innovation and the
implementation of operations. Without an innovation strategy in place, your organization may
be missing the mark, and a misalignment of your innovation efforts is a risk you are taking.

• Lack of Time and Resources: Many individuals think that innovation and
implementing new ideas consume a lot of time and they are not ready to invest any time cost.
Some businesses have time cost and amazing ideas but they do not have enough financial or
human resources to transform their ideas into a successful venture

OBJECTIVE NO 5

TO HIGHLIGHT THE CONSIDERATION INVOLVED IN THE REENGINEERING

CORPORATE THINKING

LACK OF DIVERSITY:

The third warning sign relates to lack of diversity. This often shows up in corporate hiring
practices and excludes great candidates due to elements including age, gender, ethnicity and
sexual orientation. In addition to the inherent diversity that people are born with, companies
may also discriminate against acquired diversity where people’s prior employers and countries
of work experience may be counted against them as well.
FEAR OF CHANGE:

Change is at the heart of innovation, and yet, as a company grows bigger, shaking up the status
quo becomes a little more difficult than when it was in the early startup phase. "Even when
everyone agrees [a change] is for the better ... you are affecting the habits and routines of
hundreds of individuals, as well as the legacy platforms that they have been using," said, CEO of
presentation management company . "We are all creatures of habit and treasure the consistency
of routine. Innovation usually breaks that routine and can sometimes feel like a threat."

LACK OF BUDGET:

At many of the largest companies, in industries like aerospace and technology, limited budgets
are not an obstacle. Over decades, these industries have built up large R&D functions that are
expected to crank out new ideas that the company will be able to leverage. But nearly 40% of the
respondents to our survey said their innovation efforts had an annual budget of under $5
million, and 23% were below the $1 million mark. (We asked respondents to include both
salaries of team members and direct spending.) Many of those lower budgets are in industries
that haven’t historically had an R&D department, like retail, hospitality, and financial services.

OBJECTIVE NO 6

TO DESCRIBE THE SPECIFIC ELEMENTS OF A CORPORATE

ENTREPRENEURIAL STRATEGY

A corporate entrepreneurial strategy has three elements

1. An entrepreneurial strategic vision

2. Pro-entrepreneurship organizational architecture
3. Entrepreneurial processes and behavior exhibited across the organizational
hierarchy

1) DEVELOPING THE VISION

The first step in planning an entrepreneurial strategy for the enterprise is sharing the vision of
innovation that the corporate leaders wish to achieve.39 Since corporate entrepreneur results
from the creative talents of people within the organization, employees need to know about and
understand this vision. Shared vision is a critical element for a strategy that seeks high
achievement. This shared vision requires identification of specific objectives for corporate
entrepreneur strategies and of the programs needed to achieve those objectives.
2) ENCOURAGING INNOVATION

Innovation is the specific tool of the entrepreneur. Therefore, corporations must understand and
develop innovation as the key element in their strategy. One way to understand this concept is to
focus on two different types of innovation: radical and incremental.

3) RADICAL INNOVATION

It is the launching of major breakthroughs that radically transform an industry, such as wireless
Internet, iPods, videophones, Post-it notes, disposable nappies, optical fibers, CT scanners,
mobile phones, NutraSweet, even overnight mail delivery. They were all radical innovations at
the early stages of their diffusion and adoption. They took experimentation and determined
vision. They could be ‘managed’ only with difficulty, but they had to be recognized, nurtured and
guided.

4) INCREMENTAL INNOVATION

It refers to the systematic transformation of an existing product or service into newer or larger
markets. These are all products at advanced stages of them product life cycles. Examples include
microwave popcorn, packaging beads (to replace Styrofoam), frozen yoghurt and so forth.
Sometimes an incremental innovation will actually take over after a radical innovation
introduces a breakthrough. Think of how many incremental versions of Microsoft Windows
there have been! The structure, marketing, financing and formal systems of a corporation can
help implement incremental innovation.

OBJECTIVE NO 7

TO EXAMINE THE METHODS OF DEVELOPING MANAGERS FOR CORPORATE

ENTREPRENEURSHIP

THE INTERACTIVE PROCESS OF CORPORATE ENTREPRENEURSHIP

1) TO DESCRIBE THE SPECIFIC ELEMENTS OF A CORPORATE

ENTREPRENEURIAL STRATEGY?

DEVELOPING THE VISION

The first step in planning an entrepreneurial strategy for the enterprise is sharing the vision of
innovation that the corporate leaders wish to achieve.39 Since corporate entrepreneur results
from the creative talents of people within the organization, employees need to know about and
understand this vision. Shared vision is a critical element for a strategy that seeks high
achievement. This shared vision requires identification of specific objectives for corporate
entrepreneur strategies and of the programs needed to achieve those objectives.

2) ENCOURAGING INNOVATION

Innovation is the specific tool of the entrepreneur. Therefore, corporations must understand and
develop innovation as the key element in their strategy. One way to understand this concept is to
focus on two different types of innovation: radical and incremental.

• RADICAL INNOVATION

It is the launching of major breakthroughs that radically transform an industry, such as wireless
Internet, iPods, videophones, Post-it notes, disposable nappies, optical fibers, CT scanners,
mobile phones, NutraSweet, even overnight mail delivery. They were all radical innovations at
the early stages of their diffusion and adoption. They took experimentation and determined
vision. They could be ‘managed’ only with difficulty, but they had to be recognized, nurtured and
guided.

• INCREMENTAL INNOVATION

It refers to the systematic transformation of an existing product or service into newer or larger
markets. These are all products at advanced stages of them product life cycles. Examples include
microwave popcorn, packaging beads (to replace Styrofoam), frozen yoghurt and so forth.
Sometimes an incremental innovation will actually take over after a radical innovation
introduces a breakthrough. Think of how many incremental versions of Microsoft Windows
there have been! The structure, marketing, financing and formal systems of a corporation can
help implement incremental innovation.
 CHAPTER NUMBER 4

OBJECTIVE NO 1:

SOCIAL ENTREPRENEURSHIP MOVEMENT:

Social entrepreneurship is attracting growing amounts of talent, money, and attention, but
along with its increasing popularity has come less certainty about what exactly a social
entrepreneur is and does. The reasons behind the popularity of social entrepreneurship are
many. On the most basic level, there’s something inherently interesting and appealing about
entrepreneurs and the stories of why and how they do what they do.

Social Entrepreneurship Examples

Some contemporary well-known and lesser-known social entrepreneurs include:

• TOMS: When the company was founded, it applied its “one for one” concept to shoes. For
every pair of TOMS shoes purchased, the company donated a pair to a needy child. The
company has since expanded the one for one concept to eye wear, coffee, and tote bags.

• Grameen Bank: Founder Muhammad Yunus provides micro-loans to those in need to help
them develop financial self-sufficiency. Yunus received a Nobel Prize for his work in 2006.

• Badala.org: Founded by Joelle McNamara while she was still in high school, Badala.org is an
e-commerce site that creates jobs for African women by selling the products they make.
Products range from jewelry to wooden kitchen utensils.

Characteristics

According to the Schwab Foundation for Social Entrepreneurship, social entrepreneurs share
several characteristics. They:

• Achieve large scale social change.

• Focus on the social or ecological change they want to make while earning money to
support the change.
• Innovate when looking for a solution to a social problem.
• Use feedback to adapt and refine.

While popularized by Gen X, social entrepreneurs have long existed in history. 19th century
innovators Florence Nightingale and landscape architect Frederick Law Olmsted are considered
social entrepreneurs.
OBJECTIVE NO 2:

To delve into the concept of shred value

Shared value is a business strategy designed to solve social issues profitably.

It does this by leveraging the resources and innovation of the private sector to create new
solutions to some of society’s most pressing issues. In doing so, it creates a more prosperous
environment in which to operate, making business more sustainable and resilient.

• An academic concept:

Originally an academic concept, the idea was co-created by Harvard Business School Professors
Michael Porter and Mark R. Kramer and was introduced in 2011 in the Harvard Business Review
article ‘Creating Shared Value. The establishment of shared value came after the global financial
crisis, when capitalism and the reputation of business were under siege. Shared value made the
radical proposition that corporate success and improved social and environmental conditions
are in fact inherently linked – and when achieved together, they could dramatically enhance our
future prosperity. The concept has since been adopted by global business.

• Shared value in practice

Shared value is all about doing business differently , in a way the rest of the market is not.To
create shared value, a company must transform its business model into a self-resourcing value
creation model; where it is designed to solve social challenges through the business itself.
Shared value policies and principles can be adopted by Government and not-for-profits too;
both of which can serve as valuable partners in delivering reliable and meaningful change at
scale.
OBJECTIVE NO 3:

To discuss the challenges of social enterprise

CHALLENGES OF SOCIAL ENTREPRENURSHIP:

Social enterprises are fast emerging as an entity of the alternative economy. When the
traditional economic systems of a country or market-based solutions fall short to ensure well-
being in the society, social enterprises can spearhead disrupting models to solve burgeoning
social problems. But the social enterprises face a myriad of challenges and adversities. Some of
these challenges are more contextual and some are generic in nature. Among the many
challenges the following four appears to be more obvious and general regardless of the context
and other influencing factors

• Raising funds in times of austerity. Across the world, investors and donors are looking
for rapid and larger impact growth.

• Building and following a ground up business plan.

• Investing in the right people.

• Process Management & Planning for Growth.

• Balancing the vision with business

OBJECTIVE NO 4:

To introduce the global opportunities and challenges for social entrepreneurs

CHALLENGES:

1) Finding funding: There isn’t a business in the world that didn’t wish it had
more money to invest in expansion and achieving its mission statement.
Unfortunately, when it comes to social enterprises this is usually a much bigger
concern than for corporate enterprises. There are two major challenges when it
comes to acquiring funding: convincing investors that not seeing a return for 5-7
years is worth the investment and standing out in a crowd of high-quality
competition all vying for support for their critical issue.

2) Overcoming suspicion: Social enterprises are often met with distrust. The
public often questions their true intentions. Charities wonder why they aren’t non-
profit. Some media give them little coverage and assume they’ll fail and fizzle away.
 This is a unique business hurdle to overcome before you’ve even really got started.
Solving the problem of initial suspicion requires proving you’re invested in the cause
and moved by the issue. One way to do this is to offer customers the option to choose
where their money is going. Rather than looking like an all-powerful business leader
who thinks they know best, listen to customers and show you have support from
experts.

3) Finding good manufacturers: Unaccounted for additional costs can be a

death blow for a business, shutting them down before they get a chance to begin their
mission. Take e-commerce as an example once again, the cost of production can be a
huge challenge if you’re selling a quality product with specific requirements.
Considering all the additional costs of running e-commerce, it can be hard to make it
worthwhile. This can lead to you looking for a good manufacturer in a price range
they simply don’t exist in.

4) Remaining true to your mission: So, there’s a clear issue that’s bothering
you and you have a killer idea to solve it. It’s often said that the simplest business
ideas are the best, and that’s no different for social enterprises. Moving away from
the initial great idea can kill a business and it’s something social entrepreneurs need
to be equally wary of. As your enterprise grows and receives more outside funding it’s
natural to feel you can do more, or you may feel pressured to expand by your
investors

5) Lack of clarity in message: Your social enterprise is all about the message. A
social enterprise can fail to attract funding and an audience through a lack of clarity
in its message. Without the message you’re just another online store, software
service, or half-thought start-up, the goal of your social enterprise is what sets you
apart and can’t be sacrificed. Weak messaging can destroy a good-intentioned
mission like it can destroy a brand.

OPPORTUNITIES:

Global entrepreneurs are opportunity-minded and open-minded, able to see different points of
view and weld them into a unified focus. Due to globalization, Social enterprises are now given a
platform to support existing movements, and create infrastructures that support and empower
already existing collaborations. Social enterprises are better able to make change because many
of these issues are emerging on a global scale. They rise above national differences to see the big
picture of global competition. English is the primary language of global entrepreneurship and
they have mastered a working knowledge of others.
OBJECTIVE NO 5:

METHODS OF ENTERING THE INTERNATIONAL ARENA:

1. Direct Exporting. Direct exporting is selling directly into the market you have chosen
using in the first instance you own resources. ...
2. Licensing.
3. Franchising.
4. Partnering.
5. Joint Ventures.
6. Buying a Company.
7. Piggybacking.
8. Turnkey Projects.

Direct exporting: Producing the product in the home country and just shipping the surplus to a
new country is the easiest way to enter foreign markets. This market entry strategy can be
perfect for brand new companies who do not have enough funds to take risks

CHAPTER NUMBER 5:
OBJECTIVE NO 1:

To introduce the four major types of innovation: invention, extension, duplication and
synthesis.

The four major types of innovation:

• Invention

• Extension

• Duplication

• Synthesis

1) INVENTION: Totally new product, service, or process

E.g.: Wright brothers-airplane.

2) EXTENSION: New use or different application of an already existing product, service, or

process

E.g.: Ray Kroc-McDonald's Mark Zuckerberg, Facebook

3) DUPLICATION: Creative replication of an existing concept

E.g.: Wal-Mart-department stores Gateway- personal computers Pizza Hut-pizza parlor

4) SYNTHESIS: Combination of existing concepts and factors into a new formulation or use

E.g.: Fred Smith-FedEx Howard Schultz, Starbucks.

OBJECTIVE NO 2:
To define and illustrate the sources of innovation for entrepreneurs.

1) The Unexpected

The market place is the number one area to look for opportunities. A good manager should be
constantly studying the market. Is a particular product or service in greater or lesser demand
than anticipated? Why? Is there a way we can exploit this unexpected success? What has to
happen if we want to convert this success into an opportunity?

2) The Incongruity

There is a discrepancy between what is and what should be. This is a key to developing wildly
successful businesses but it’s tricky. Facebook is a company that nailed it. Prior to the social
network’s prolific rise MySpace was the dominant player, but it had its downfalls. Facebook
wisely noted what MySpace was vs. what should be and built that platform. The end result? A
company that just had an IPO versus. one that has fallen off considerably.

One of the best places to look for incongruity is in your own customers. Their complaints and
unmet wants are all the hints you need.

3) Process Need

Process need involves identifying your company’s process weak spots and correcting or
redesigning them. This is a task oriented solution meaning that the source of innovation comes
from within your existing capabilities and ways of doing business – not the market.

An example might be a restaurant that identifies that people wait too long for their entrees and
so decides to hire another chef to speed up creation times.

Essentially your company will want to look for all weak links and eliminate them.

4) Industry and Market Structure Change

Your industry and the market are in continual flux. Regulations change and some product lines
expand while others shrink. Firms should continually be on the watch for this.

One example is deregulation. When a previously regulated industry becomes open there is
historical precedence for companies that enter early to be very successful. Other things to watch
out for are the convergence of multiple technologies and structural problems that occur from
time to time (often immediately following an industry boom).
5) Demographics

We constantly see changes occur in populations, income levels, human capital (education) and
age ranges. Smart firms are constantly paying attention to this.

When it comes to the baby boomers businesses have been following them constantly as they got
older. At present they are one of the largest as well as the most affluent demographic groups
with high levels of disposable income.

Combining demographic data with segmentation and targeting is a powerful method of

accurately meeting a target market’s desires.

6) Changes in Perception, Meaning, and Mood

Over time populations and people change. The way they view life changes, where they take their
meaning from, and how they feel about things also is modified over time and smart companies
must pay attention to this in order to capitalize (and avoid becoming forgotten, a relic of ages
past).

7) New Knowledge

As the speed of technological revolution increases there will be an ever increasing number of
opportunities that open up. The internet has been the most notable one in the last couple
decades but there have been a plethora of other industries and opportunities pop up as a result
of this technological revolution.

OBJECTIVE NO 3:

To review some of the major myths associated with innovation and to define the 10
principles of innovation.

Myth #1 Innovation is about the newest thing. Sometimes a great innovation is indeed a “step-
change”: the motorized vehicle that displaces the horse and buggy. But most innovation is
incremental. From my own favorite, life-improving innovation-the curved shower rod—to just
about any product or service you can name, little improvements and developments are being
introduced all the time. …
Myth #2 Innovation is a solo activity. Consistent with our tendency to think of innovation
solely in terms of mind-blowing new inventions, we often think of innovators as geniuses,
oddballs with wild ideas and wilder hair. People who occupy the far end of the innovation
spectrum were probably less easily tamed by our school systems and may therefore be less
comfortable in corporate environments. But even mavericks and mad scientist types need other
people to implement the innovations they’ve dreamed up, and usually, those other people wind
up incrementally improving their inventions in some way. …

Myth #3 Innovations can’t be taught. Every day, people like Colonel Rolf Smith teach
organizations, businesses and individuals how to get in touch with their inner innovator. But
teaching innovative thinking isn’t like teaching Math or French—it’s more a matter of teaching
people how to harness their existing natural curiosity in order to unleash their innate capacity
for innovation.

Myth #4 Innovation is top-down. Remember the flocking theory? Flying in formation, birds on
the periphery—where the risks are, and where you can see more—send messages and warning
signals to bring flying in the center, where it’s more protected and safer. Similarly, in a fast-food
restaurant, the clerk at the counter cottons on long before anyone at head office does that the
new trays are flimsy and hard to stack. In a hospital, the nurses may resist washing their hands
unless there’s a way to communicate both up and down the food chain that the problem is the
harsh cleanser they’re made to use. Smart companies like Four Seasons and Whole Foods
explicitly recognize that the closer an employee is to the end-user, the more likely he or she is to
have concrete ideas about how to innovate—and the more important it is for the higher-ups to
listen.

Myth #5 you can’t force innovation. It’s very true that you can’t tell others to start innovating
pronto, and expect much good to come of it. But you can create an environment that encourages
and rewards curiosity and therefore promotes engagement and innovation.

Myth #6 Change is always good. Tell that to the product team that dreamed up New Coke. The
funny thing about that epic failure was that the beverage itself actually tested well—people liked
the stuff. What didn’t fly was the implication that there was something wrong with Old Coke. …
The sheer math on ideas suggests that about half of them will be lousy. But that’s not
catastrophic unless the lesson taken is that there’s no point in continuing to dream up anything
new, and it’s safer to stick with what’s always worked in the past.

Myth #7 Innovation isn’t for everyone. Let’s put this one to rest forever. Remember how kids in
developing countries respond to the Socket? When they see the ball, they almost immediately
start asking questions and dreaming up their own innovations. Innovative thinking is
contagious. It’s a bug that anyone can catch.

Since our ancestors first stood upright, humans beings have been innovating: more and better
tools, different and improved circumstances, more effective and efficient ways of doing things.
It’s pretty silly to think we’ve suddenly all lost that basic drive now that we’ve hit the twenty-first
century. If anything, our capacity to innovate is now exponentially greater because of our
unprecedented ability to share information and ideas, which also makes it much easier to take
something from one field and apply it to another.

OBJECTIVE NO 4:

TO EXAMINE ROLE OF CREATIVITY & TO REVIEW THE MAJOR COMPONENTS

OF THE CREATIVE PROCESS; KNOWLEDGE ACCUMULATION; INCUBATION
PROCESS; IDEA EXPERIENCE; EVALUATION; & IMPLEMENTATION:

•Role of creativity: Creativity enables entrepreneurs to find some of the path breaking
discoveries. As such, it's essential to allow collisions and blur to take place to transcend
boundaries set by disciplines. That way, it's easier for an entrepreneur to get new perspectives
towards solving a financial or operational problem. The major components of the creative
process include: knowledge accumulation, incubation process, idea experience, and evaluation
and implementation.

• Knowledge Accumulation: is very important in the creative process. This includes

researching extensively on the background of a variety of fields that one might be interested in
creating. Ways to do this would be: Internet research, attending meetings and seminars, and
developing a subject library for future reference.

• Incubation Process: allows an individual to have their subconscious mull over the
tremendous amounts of information that they have gathered in the preparation phase. Idea
experience: is often times the most exciting step in the creative process. This is where the idea or
solution that one is seeking is discovered.

• Evaluation and Implementation: is the final stage of the creativity process. It is the most
difficult step and it involves a great deal of courage, self-discipline, and perseverance. Often
time’s implementation involves a lot of failure and rejection. Succeeding in this process is very
worthwhile for an entrepreneur.

• My Experience: As an entrepreneur, I have used the creative process various times. The
moment that required the most creative thinking is when I created a report of 20 items that
bugged me the most and what I would do to improve each of them, and a report of how to
improve a really cool product that already exists. This required a lot of creative thinking because
it was hard for me to find ways to innovate already existing products.

OBJECTIVE NO 5:

TO PRESENT WAYS OF DEVELOPING PERSONAL CREATIVITY

Several things can be done to improve your creative talents. By recognizing some of the habits
and mental blocks that stifle creativity is one of the most helpful. Of course, as with most
processes, your development will be more effective if you regularly practice exercises designed to
increase your creative abilities. The following section will help you to improve your awareness of
some of the thought habits that limit your creativity and to assist you in developing a
personalized creativity improvement program.

• RECOGNIZING RELATIONSHIP

If you wish to improve your creativity, it helps to look for different or unorthodox relationships
among the elements and people around you. This activity involves perceiving in a relational
mode. You can develop this talent by viewing things and people as existing in a complementary
or appositional relationship with other things and people.

• DEVELOPING A FUNCTIONAL PERSPECTIVE

A creative person tends to view things and people in terms of how they can satisfy his or her
needs and help complete a project. If you wish to become more innovative and creative, you
need to visualize yourself in a complementary relationship to the things and people of world.
You must learn to look at them in terms of how they complement you in your attempt to satisfy
your own needs to complete your project.

• USING YOUR BRAINS

The right brain hemisphere helps an individual understand analogies, image things, and
synthesize information. The left brain hemisphere helps the person analyze, verbalize, and use
rational approaches to problem solving. They are integrated through a group of connecting
nerve fibers called corpus callosum. Because of this connection and the nature of the
relationship between the activities of each hemisphere, each hemisphere should be viewed as
existing and functioning in a commentary relationship with the other hemisphere.

• ELIMINATING MUDDLING MIND SETS

Mental habits block or impede creative thinking and it is important to eliminate muddling
mindsets. It has been estimated that adults use only 2 to 10 percent of their creative potential.
Another inclination is to point out the negative components of a new or different idea because of
the psychological discomfort associated with change. Some common mental habits that inhibit
creativity and innovation are either/or thinking, stereotyping and probability thinking. These
habits tend to muddle creative thoughts processes and different thought processes must be used
to enhance creative thinking.

• THINKING OUTSIDE THE BOX

Thinking outside the box is never easy, nor is it merely a reflection of mental brightness. To
leave your psychological comfort zone and explore 'solutions in the unknown world on the
outside requires large measures of mental agility, boldness and creativity – and/or a leader who
makes life in the old box so uncomfortable that getting out is the only option. The future rests in
those willing and able to do so.
 CHAPTER NUMBER 6:

OBJECTIVE NO 1:

Explain the concern for ethical and societal issues

ETHICAL ISSUES:

1. Lack of infrastructure.

A large corporation that has been operating for many years and has hired a Corporate
Compliance Officer (CCO) with a budget and monitoring authority and dedicated staff can strive
in an organized manner for ethical compliance, or at least seek to do so.

2. Funders and investors

When an entrepreneur is embarking on a startup concept, she is trying to launch a product into
the market and she must determine whether she will seek funding from private equity or
government research and development grants.

3. Technology/Privacy

With developments in technological security capability, employers can now monitor their
employees’ activity on their computers and other company-provided electronic devices.

4. Harassment and Discrimination in the Workplace

Employment Opportunity Commission (EEOC) defines many different types of discrimination

and harassment statutes that can have an effect on your organization, including but not limited
to:

• Age: applies to those 40 and older, and to any ageist policies or treatment that takes
place.
• Disability: accommodations and equal treatment provided within reason for
employees with physical or mental disabilities.
• Equal Pay: compensation for equal work regardless of sex, race, religion, etc.
• Pregnancy: accommodations and equal treatment provided within reason for
pregnant employees.
• Race: employee treatment consistent regardless of race or ethnicity.
• Religion: accommodations and equal treatment provided within reason regardless of
employee religion.
• Sex and Gender: employee treatment consistent regardless of sex or gender identity.
SOCIAL ISSUES:

1) Non-transparent reporting

Because the social sector is starved for funding, there is often a push to report the best findings
possible in order to maximize the likelihood of the next round of funding. It is not that anyone
misrepresents their results (ok, some do) but the link between positive findings and future
survival funding is perilous. Again, this dynamic undercuts experimentation and innovation.

2) The media loves new non-profits

The media is fascinated with large businesses, but not with large social enterprises. Media
stories tend to focus on small or new enterprises that feature a narrative of human compassion,
a new technology or a new use of a technology. The social sector is an elephant graveyard for
such short-term stories.

3) Complex agendas

In the private sector, if you design a better product, venture capitalists come to you with cash
and expectations for returns on that capital. In the social sector, investors come to a social
entrepreneur and say: "we love what you have built, but here are our priorities that must be
included in your business execution". Social entrepreneurs are then tasked with bending their
models to serve the needs of the funding community over the needs of those it is their mission to
serve. This misalignment is distracting to the scaling efforts of social enterprise and does not
allow the entrepreneur to direct growth in the most efficient and effective manner to meet social
needs.

4) The structure of the sector does not promote innovation

Social entrepreneurship, like every other sector, needs to encourage experimentation and risk.
The value of this and its impact on innovation is visible in nearly every field from health to
education to the agricultural and industrial sectors.
OBJECTIVE NO 2:

Describe the contemporary ethical environment

CONTEMPORARY ETHICAL ENVIRONMENT:

It can look descriptively at moral behavior and judgments; it can give practical advice
(normative ethics), or it can analyses and theories about the nature of morality and ethics.
Contemporary study of ethics has many links with other disciplines in philosophy itself and
other sciences.

Contemporary Ethical Issues

• Welfare and charity.

• Addictive Substances: Alcohol, drugs, tobacco
• Abortion
• Suicide
• Animal Rights What rights should animals have. ETC

OBJECTIVE NO 3:

Discuss how organization shape ethical conduct

How Organizations Shape Ethical Conduct

You only have to open the newspaper or turn on the television to understand the importance of
ethics in business relationships. From employee theft to insider trading, the ethical culture of
organizations is being challenged every day. As a result of the ethical misconduct companies are
suffering from damaged reputations, lost business, demoralized workforce, and diminished
market values.

Business Ethics: the study and evaluation on decision making by businesses according to moral
concepts and judgments. Or more simply put?. Learning what is right or wrong and then doing
the right thing! Ethic Awareness is the foundation of an ethical climate. Through ethical
awareness, employees learn how to identify problems and how to resolve them. Establishing a
code of conduct is one way an organization can support ethic awareness. A code of conduct
typically addresses issues pertaining to; preferred style of dress, avoiding illegal drugs, following
instructions of superiors, being reliable and prompt, maintaining confidentiality, not accepting
personal gifts from stakeholders as a result of company role, avoiding racial or sexual
discrimination, avoiding conflict of interest, complying with laws and regulations, not using
organization property for personal use, not discriminating against ethical, organization,
employees, ethics, organizations, conduct, decision, code, action, ethic, business, one, codes,
training, though, take, position, management, make, leadership, way, values, review,
responsibility, culture, been, vision, promotes, problem, preferred, place, philosophy, making,
integrity, foundation.

OBJECTIVE NO 4:

Discuss how business can act responsibly to satisfy society

Responsibility of business towards society:

CONSUMERS:

Consumer entrepreneurship involves the self-creation of user value. Finally, instead of seeking
value-creating opportunities for an exchange, they sought opportunities for self-creating their
own user value in other words, they act as consumers of their own value-creation process.

ENVIRONMENT:

Entrepreneurship environment refers to the various facets within which enterprises- big,
medium, small and other have to operate. The environment therefore, influences the enterprise.
By and large, an environment created by political, social, economic, national, legal forces, etc.
influences entrepreneurship.

EMPLOYEE:

They are entrepreneurial employees. For startup founders, business owners, or managers, hiring
an entrepreneurial employee is akin to hiring dynamite. Though they are sometimes unwieldy,
intimidating, and may even outpace you, you can't argue with their potential and power.
OBJECTIVE NO 5:

Explain the ethical responsibilities of businesses to investors and the financial

community

The main reason why investors and the financial community are concerned about this is because
it can affect the profitability of a business. Investors are, of course, looking to invest money in
profit. Protecting investor interests and strengthening their trust is paramount. Ethical conduct
is vital to the ongoing viability of capital markets. Regulatory reform may go some way to
combatting the misconduct in the industry but that alone is insufficient. Individuals and firms
must develop a ‘culture of integrity’ that permeates all levels of their operations. This will
promote the principles of stewardship of investor assets, and work in the best interests of
clients, above and beyond strict compliance with the law. A strong ethics-based culture that
helps people engage in and promote ethical behavior will foster trust, lead to robust global
capital markets, and ultimately benefit society. Professions can only exist within an industry
when those acting with transparency, integrity, candor, and trust reach a critical mass. CFA
Institute has long championed these values. The organization believes that the investment
industry should work for the ultimate benefit of society, and that cannot be achieved without the
highest possible standards and ethics.
Questions For Final Exam
Maximum marks: 40

Q1. Define and discuss entrepreneurship and entrepreneurial

activity in Pakistan with examples.

ENTREPRENEURSHIP:
Entrepreneurship is the act of creating a business or businesses while building and scaling it to
generate a profit. But as a basic entrepreneurship definition, that one is a bit limiting. The more
modern entrepreneurship definition is also about transforming the world by solving big
problems. Like bringing about social change or creating an innovative product that challenges
the status quo of how we live our lives on a daily basis. The meaning of entrepreneurship
involves an entrepreneur who takes action to make a change in the world. Whether startup
entrepreneurs solve a problem that many struggle with each day, bring people together in a way
no one has before, or build something revolutionary that advances society, they all have one
thing in common: action. It’s not some idea that’s stuck in your head. Entrepreneurs take the
idea and execute it. Entrepreneurship is about execution of ideas.

5 characteristics of an entrepreneur:

• Motivation. Entrepreneurs are by nature motivated.

• Passion. Passion is another characteristic of entrepreneurs.
• Vision. The best entrepreneurs have a vision as to what they want to achieve, how
they can accomplish their objectives, and whom they need on their side to reach their
goals.
• Confidence.
• Decision Making.

ENTREPRENEURIAL ACTIVITIY IN PAKISTAN WUTH EXAMPLES:

Total early stage Entrepreneurial Activity or TEA rate (the sum of the nascent entrepreneurship
rate and the new business manager rate) in Pakistan was 9.07 %. This is lower than the average
TEA rates for the factor driven economies (1 4.22 %) and efficiency driven economies (13.8 %)

For example:

1) GEEKS ROOT, a solutions-focused company, was established in 2010. We provide

complete business solutions, which enables businesses to leverage leading-edge.
 2) Sastaticket.pk founded in 2016, is an online travel agency. It provides convenient air
travel, hotel, and holiday packages. Sastaticket.pk has secured an investment of $1.5
million from Gobi Partners, a China-based venture capital fund.
3) Well.pk is an e-commerce retailer which deals with groceries, apparel & electronics. It
successfully secured an investment of $1 million from angel investors, Noor Abid and
Nadeem Hussain.
4) Patari: Pakistan's largest Pakistani music streaming platform. Founders are Khalid
Bajwa, Humayun Haroon, Iqbal Talaat, Faisal Sherjan.

Q2. Discusses different approaches to entrepreneurship

To explain the process approaches to the study of entrepreneurship

Strategic Formulation School of Thought:

This school holds that an entrepreneur’s ability to target unique markets, with a unique strategy
is the ultimate determinant of success.

1. Sociological Approach:
2. Psychological Approach
3. Political Approach
4. Composite Approach

1. Sociological Approach: The sociological approach to the study of entrepreneurship

deals with social and cultural factors responsible for the nature and growth of entrepreneurship
development in a society. It attempts to understand as to why a social structure and culture
facilitates or inhibits entrepreneurial development. It believes that laws of development lie in
the social structure and culture of a region.

2. Psychological Approach: We have understood by now that the entrepreneur is not a

common person. He has a typical personality with creative, managerial and imaginative skill
who can innovate and contribute positively to an industrial project. This kind of personality
develops in a person who has strong motivation for achievement.

3. Political Approach: The political approach to entrepreneurship deals with the issues
involved in relationships between entrepreneurship development and the state particularly in
the context of the role of the latter in the development of entrepreneurs. The role of the
government is crucial in deciding the nature and rate of development.

4. Composite Approach: The entrepreneurship is a complex phenomenon. None of the

approaches discussed above has been able to explain the entrepreneurial dynamics fully. Due to
their non-holistic nature, they have failed to offer the precise laws of supply and success of
entrepreneurship.
Q3. What are the opportunities and challenges for social
entrepreneurs internationally?
CHALLENGES:

1) Finding funding: There isn’t a business in the world that didn’t wish it had more
money to invest in expansion and achieving its mission statement. Unfortunately, when it comes
to social enterprises this is usually a much bigger concern than for corporate enterprises. There
are two major challenges when it comes to acquiring funding: convincing investors that not
seeing a return for 5-7 years is worth the investment and standing out in a crowd of high-quality
competition all vying for support for their critical issue.

2) Overcoming suspicion: Social enterprises are often met with distrust. The public
often questions their true intentions. Charities wonder why they aren’t non-profit. Some media
give them little coverage and assume they’ll fail and fizzle away. This is a unique business hurdle
to overcome before you’ve even really got started. Solving the problem of initial suspicion
requires proving you’re invested in the cause and moved by the issue. One way to do this is to
offer customers the option to choose where their money is going. Rather than looking like an all-
powerful business leader who thinks they know best, listen to customers and show you have
support from experts.

3) Finding good manufacturers: Unaccounted for additional costs can be a death blow
for a business, shutting them down before they get a chance to begin their mission. Take e-
commerce as an example once again, the cost of production can be a huge challenge if you’re
selling a quality product with specific requirements. Considering all the additional costs of
running e-commerce, it can be hard to make it worthwhile. This can lead to you looking for a
good manufacturer in a price range they simply don’t exist in.

4) Remaining true to your mission: So, there’s a clear issue that’s bothering you and
you have a killer idea to solve it. It’s often said that the simplest business ideas are the best, and
that’s no different for social enterprises. Moving away from the initial great idea can kill a
business and it’s something social entrepreneurs need to be equally wary of. As your enterprise
grows and receives more outside funding it’s natural to feel you can do more, or you may feel
pressured to expand by your investors

5) Lack of clarity in message: Your social enterprise is all about the message. A social
enterprise can fail to attract funding and an audience through a lack of clarity in its
message. Without the message you’re just another online store, software service, or half-
thought start-up, the goal of your social enterprise is what sets you apart and can’t be
sacrificed. Weak messaging can destroy a good-intentioned mission like it can destroy a
brand.
OPPORTUNITIES:

Global entrepreneurs are opportunity-minded and open-minded, able to see different points of
view and weld them into a unified focus. Due to globalization, Social enterprises are now given a
platform to support existing movements, and create infrastructures that support and empower
already existing collaborations. Social enterprises are better able to make change because many
of these issues are emerging on a global scale. They rise above national differences to see the big
picture of global competition. English is the primary language of global entrepreneurship and
they have mastered a working knowledge of others.

Q4. Define the corporate entrepreneurship, what are the specific

elements of corporate entrepreneurship strategy?

CORPORATE ENTREPRENEURSHIP

Corporate entrepreneurship, or intrapreneurship as it is often referred to, is the concept of

supporting employees to think and behave like entrepreneurs within the confines of an existing
organizational structure. Employees with the right vision and skills are encouraged to identify
opportunities and develop ideas which lead to innovative new products, services or even new
lines of business.

TO DESCRIBE THE SPECIFIC ELEMENTS OF A CORPORATE

ENTREPRENEURIAL STRATEGY?

1) DEVELOPING THE VISION

The first step in planning an entrepreneurial strategy for the enterprise is sharing the vision of
innovation that the corporate leaders wish to achieve.39 Since corporate entrepreneur results
from the creative talents of people within the organization, employees need to know about and
understand this vision. Shared vision is a critical element for a strategy that seeks high
achievement. This shared vision requires identification of specific objectives for corporate
entrepreneur strategies and of the programs needed to achieve those objectives.

2) ENCOURAGING INNOVATION

Innovation is the specific tool of the entrepreneur. Therefore, corporations must understand and
develop innovation as the key element in their strategy. One way to understand this concept is to
focus on two different types of innovation: radical and incremental.

3) RADICAL INNOVATION
It is the launching of major breakthroughs that radically transform an industry, such as wireless
Internet, iPods, videophones, Post-it notes, disposable nappies, optical fibers, CT scanners,
mobile phones, NutraSweet, even overnight mail delivery. They were all radical innovations at
the early stages of their diffusion and adoption. They took experimentation and determined
vision. They could be ‘managed’ only with difficulty, but they had to be recognized, nurtured and
guided.

4) INCREMENTAL INNOVATION

It refers to the systematic transformation of an existing product or service into newer or larger
markets. These are all products at advanced stages of them product life cycles. Examples include
microwave popcorn, packaging beads (to replace Styrofoam), frozen yoghurt and so forth.
Sometimes an incremental innovation will actually take over after a radical innovation
introduces a breakthrough. Think of how many incremental versions of Microsoft Windows
there have been! The structure, marketing, financing and formal systems of a corporation can
help implement incremental innovation.