RIFT VALLEY UNIVERSITY

DEPARTMENT OF MASTERS OF BUSINESS ADMINISTRATION

ASSIGNMENT FOR INTREPRENEURSHIP AND ENTERPRISE DEVELOPMENT

CLASS

CHAPTER SUMMERIZATION

NAME ID.NO

ESRAEL KENA 0050/21

Section A

SUBMITTED TO; FEYERA A. (Phd)

Sebeta, Oromia, Ethiopia

Dec 23, 2022

 CHAPTER SUMMARY

Difficulties in developing from an entrepreneur to a leader

Entrepreneurial leadership involves the organization and motivation of firms operation
systems and employees to achieve the firms core values.

Entrepreneurs and leaders

 An entrepreneur is a person who spots an opportunity and shows initiative and a willingness
to take risks in order to benefit from the potential rewards.
 A leader is a person that can inspire others and motivate them to meet objectives.

Many entrepreneurs find it difficult to move being an entrepreneur to a leader, reasons include;

 Reluctance to handover control making it difficult to delegate

 Loss of autonomy in decision making
 Learning to trust others and not feel a need to constantly oversee everything or micro
manage

A mature firm is a company that is well-established in its industry, with a well-known product and
loyal customer following.

Business maturity is the process by which an organisation transforms from the inside out to take full
advantage of the opportunities.

Entrepreneurial leadership is a mind-set that focuses organizations on turning problems into

opportunities that create economic and social value.

It’s a process in which an organizing a group of people to achieve a common goal using proactive
entrepreneurial behaviour by optimising risk, innovating to take advantage of opportunities, taking
personal responsibility and managing change within a dynamic environment for the benefit of an
organization

Leading like an entrepreneur;

 Always involves creation of values through change of assets to develop a new business
 Always involves inspiring employees to capture that business opportunity.

 Entrepreneurial leadership will accelerate achievement of organizational goals, enhance

organizational performance.

 Entrepreneurial leadership starts with having an entrepreneurial mind-set.

Entrepreneurial mind-set:- Is a set of skills that enable people to identify and make the most
opportunities, overcome and and learn from setbacks, and succeed in a variety of setting.

 Leading like an entrepreneur requires

 Internal locus of control

 Tolerance for ambiguity

 Consistence drive to create, build or change things

 Passion for an opportunity

 Sense of urgency/impatience- wanting to ‘just do it’

 Perseverance

 Resilience

 Optimism
 INNOVATION

Creativity, Inventions and Innovation

Creativity is the ability to bring something new into existence.

Inventions is creation of something new and results in new knowledge.

Innovations is creation of something new and results in new knowledge.

Creativity, Inventions and Innovations are primary functions of entrepreneurships.

Technology, Innovation, Science and Development: - Is one of the most important factors for economic
development.

 Technology is the systematic study of techniques for making and doing things (concerned with
the fabrication and use of artifacts)

 Science is the systematic attempt to understand and interpret the world (it depends upon the
skills of literacy and numeracy)

 Technology is as old as mankind, science developed with the development of civilization.

Technology, Innovation, Science and Development

 Technological development and innovation is one of the most important factors for economic
development

 Long-term economic growth is the result of an increase and accumulation of technological

knowledge

 The contribution of raw materials, and/or labor, has steadily declined in providing that
competitive edge to new products

 Technological development and innovation is one of the most important factors for economic
development

 Long-term economic growth is the result of an increase and accumulation of technological

knowledge

 The contribution of raw materials, and/or labor, has steadily declined in providing that
competitive edge to new products

Factors and Conditions for an Innovative, Supportive and Enabling Environment

  Education

 Information and transfer of knowledge

 Government policies, including tax policy, supportive legal and regulatory framework

 Industrial, technological and R&D infrastructure

 Efficient intellectual property system

 Recognition & rewards

 Company climate and culture

 Work force and labor environment

 Entrepreneurial spirit

 Availability of funds and financial resources

Creativity and Invention Challenge to Stability

By nature man is torn between:

 Security where he seeks shelter

 Adventure where he takes risks

o Price for each contrasting outcome

o Assessed risks

 Being creative is risky - higher price, but also higher reward

Creativity and Innovation Challenge for Public Policy Makers

 Facilitate rather than regulate

 Give companies and entrepreneurs more freedom to experiment

 Guarantee a fair share of invention and innovation benefits to inventors and creators

 Positive attitude towards failures and risk

 To encourage inventors and creators to join efforts with entrepreneurs in developing

innovative ideas

Inventions
  Creating something new that did not exist before
 New solutions to existing problems
 Result of human creativity and curiosity
 Successful inventions - demand driven

Few inventions

break-through pioneering inventions

 new industries

 new business

 new markets

Most inventions - incremental development of technology

 improved quality

 better performance

 higher productivity

 more customer satisfaction

 reduced cost

Obstacles to Innovation

 Conservative and hierarchical structures hostile to innovation

 New ideas threaten the profits of existing products and services

 larger organizations tend to apply the NIH factor (NIH=Not Invented Here) to get rid of uninvited
innovators (= troublemakers).

 New ideas are eroded by subtle discouragement rather than by explicit vetoes (application of
organizational antibodies to neutralize the irritating viruses):

 withholding of funding,

 general nay-saying,

 subtle signals that it might not be 'career smart' to associate with an innovation project"

 Often innovators do not get recognition, "but a R&D effort that fails is never forgotten"
 Inventors not able to present ideas in business terms; many do not even see the business
benefits of their ideas

 Innovators are seen as "irritating viruses" or “troublemakers” in the corporate environment.

 Companies ignore innovations when they do not fit into any of their existing business profiles

 The budget allocation process is designed to support existing businesses