Chapter-2

Chapter Objectives
1. To describe the entrepreneurial mind-set.
2. To present the major sources of information useful in
profiling the entrepreneurial mind-set
3. To identify and discuss the most commonly cited
characteristics found in successful entrepreneurs
4. To discuss the “dark side” of entrepreneurship
5. To identify and describe the different types of risk
entrepreneurs face as well as the major causes of stress
for these individuals and the ways they can handle
stress
6. To examine entrepreneurial motivation
The Entrepreneurial Mindset
• Entrepreneurial Mindset
• Describes the most common characteristics associated with
successful entrepreneurs as well as the elements associated
with the “dark side” of entrepreneurship.
• Who Are Entrepreneurs?
• Independent individuals, intensely committed and determined
to persevere, who work very hard.
• They are confident optimists who strive for integrity.
• They burn with the competitive desire to excel and use failure
as a learning tool.
A corporate entrepreneur mindset
Involves thinking and acting like an entrepreneur within a corporate environment. This means being
innovative, adaptable, and willing to take calculated risks to drive growth and create value within the
organization. It often involves challenging the status quo, seeking out new opportunities, and being
proactive in solving problems. Corporate entrepreneurs also prioritize collaboration, leveraging resources,
and fostering a culture of experimentation and learning within the company.

1.Innovation
2.Risktaking
3.Adaptability
4. Resourcefulness
5. Collaboration
6. Persistence
7. Customer-centricity
8. Continuous learning
9. Strategic Vision:
10. Empowerment:
11. Ethical Leadership:
12. Resilience:
13. Networking:
14. Agility:
15. Measurable Outcomes
Entrepreneurial mindset Example
 Ex: 1.Working women started chemical free make up by observing the near and dear friends &
2.Collecting infn. In various way is difficult ex: tomorrows party dress purchase & for later party more options to
purchase
1)Creativity Ex: Ice cream basundi, ice cream jamun mix,
chease panipuri
2)Saloon shop-hair washing service: +ve & -ve
Ex: After SSLC which stream to select, search in different sources
Ex:1) Going out with friends without revealing with parents-intuition
2) Cravings to eat Manchuria-satisfaction
Ex:1) Buying car, bike 2) Which subject to study 3)Animation course
Ex: Whether to start saree or crop top business, identify strengths & weeknesses
Ex: Ajay started huge textile business without evaluating the present market scenario
 Entrepreneurial Stress
• Entrepreneurial stress refers to the specific pressures and challenges faced
by entrepreneurs in starting and running their own businesses.
Causes or sources of stress:
• Entrepreneurial stress can manifest in various ways and impact different
aspects of an entrepreneur's life. Some common sources and effects of
entrepreneurial stress include:

1)Financial pressure 5)Pressure to succeed

2)Uncertainty and risk 6)Isolation/loneliness
3)Work-life balance 7)Managing employees
4) Competition 8) Time management
Dealing with stress/How to overcome stress
ØIdentify the sources of stress Time management
ØStay organized Stay connected
ØPractice relaxation techniques Seek professional help
ØLimit multitasking Take breaks
ØStay flexible Practice meditation
ØCelebrate small wins Prioritize tasks
ØMaintain perspective-situation Delegate tasks
ØSeek feedback & support Engage in hobbies
 Entrepreneurial Ego

• Entrepreneurial ego refers to the sense of self-importance or

inflated self-esteem that some entrepreneurs may develop as
a result of their entrepreneurial activities and successes.

• While confidence and belief in oneself are important for

entrepreneurial success, an overly inflated ego can have
negative consequences.
Entrepreneurial Ego
 Here are some aspects of entrepreneurial ego to
consider:
ØOverconfidence
ØDifficulty in receiving feedback
ØLack of empathy
ØResistance to change
ØIsolation/no support expected
ØRisk-taking behaviour
ØDifficulty in delegation
ØImpact on relationships
Entrepreneurial motivation
• The decision to be have entrepreneurially the result of the
interaction of several factors.
ØPersonal environment
ØPersonal characteristics
ØPersonal goals
ØBusiness environment
Figure
2.2 A Model of Entrepreneurial Motivation
vThe individual compares his perception of the probable outcomes
with the personal expectations
vThe individual looks at the relationship between the entrepreneurial
behaviour he or she would implement and the expected outcomes
vAccording to the model, entrepreneurial expectations are finally
compared with the actual and perceived firm outcomes.
vFuture entrepreneurial behaviour is based on the results of all these
comparisons.
vWhen outcomes meet or exceed expectations, the entrepreneurial
behaviour positively reinforced.
vHe is motivated to continue to behave entrepreneurially.
vWhen outcomes fail to meet expectations, his motivation will be
lower, will have a corresponding impact on the decision to continue.
Hierarchy of terminology in corporate entrepreneurship
 Conceptualizing Corporate
Entrepreneurship Strategy
• A vision-directed, organization-wide reliance on
entrepreneurial behavior that purposefully and continuously
rejuvenates the organization and shapes the scope of its
operations through the recognition and exploitation of
entrepreneurial opportunity.

• It requires the creation of congruence between the

entrepreneurial vision of the organization’s leaders and the
entrepreneurial actions of those throughout the organization.
Corporate Entrepreneurship Strategy
Process
Jeffery G.Covin, R.duane Ireland, Donald F.Kuratko developed the
model illustrating how a corporate entrepreneurship strategy is
manifested through the presence of three elements.

1. Entrepreneurial strategic vision

2. Pro entrepreneurship organisational architecture
3. Entrepreneurial innovative processes and behaviour across the
hierarchy
Corporate Entrepreneurship Strategy Process
Corporate Entrepreneurship Strategy
Process-contd…
ØThe model suggest that internal individual entrepreneurial cognitions
& External environmental conditions are initial impetus for adapting a
CE strategy.
ØAnd the outcomes are assessed to provide justification for the
strategy’s continuance, modification, or rejection
ØCommitment of individuals –Leads to success
ØCE strategy find the ethos for existing co. and made the changes
drastically by eliminating tradition methods
ØImplement new procedures and processes-discover new motivational
system
ØExternal conditions are thoroughly considered while
adopting the strategies
ØNew motivational strategy encourages
§ creativity
§ Risk taking
§ Team work
§ Informal network increasing
§ Designed to increased productivity
ØEntrepreneurs actions throughout the orgn. Facilitated with existence
of a pro entrepreneurship organisational architecture

ØCE strategy is about creating self renewing orgns. by encourage

potential skills
ØBalancing the exploitation of current entrepreneurial opportunities
with search of future entrepreneurial opportunities
ØTop management strategies will have tremendous effect on middle
and lower level employees
ØThe breakage may be CE strategies /linkages between and these
elements
Conceptualizing a Corporate Entrepreneurial
Strategy (cont’d)
• Critical steps of a corporate entrepreneurial strategy:
1. Developing the vision
2. Encouraging innovation
3. Structuring for an intrapreneurial climate
4. Developing individual managers for corporate
entrepreneurship
5. Developing venture teams.
1. Developing a vision: Shared Vision
 2.Encouraging innovation :Types of
Innovation
• Radical Innovation
• The launching of inaugural breakthroughs.
• These innovations take experimentation and determined vision,
which are not necessarily managed but must be recognized and
nurtured.
• Incremental Innovation
• The systematic evolution of a product or service into newer or
larger markets.
• Many times the incremental innovation will take over after a
radical innovation introduces a breakthrough.
 3.Structuring for a Corporate Entrepreneurial Environment

• Reestablishing the drive to innovate:

• Invest heavily in entrepreneurial activities that allow new
ideas to flourish in an innovative environment.
• Provide nurturing and information-sharing activities.
• Employee perception of an innovative environment is
Institutionalizing the critical.
• Corporate Venturing
• process of embracing the goal of growth through
development of innovative products, processes, and
technologies with an emphasis on long-term prosperity.
Intrapreneurial Development: Joint Function of Individual and
Organizational Factors
4. Developing Individual Managers for Corporate Entrepreneurship

Elements of developing Individual Managers :

• Management support
• Autonomy/work discretion
• Rewards/reinforcement
• Time availability
• Internal organizational boundaries
 Sustaining Corporate
Entrepreneurship
• Sustained Corporate Entrepreneurship Model
• Based on theoretical foundations from previous strategy
and entrepreneurship research.
• Considers the comparisons made at the individual and
organizational level on organizational outcomes, both
perceived and real, that influence the continuation of the
entrepreneurial activity.
• Transformational trigger
• Something external or internal to the company that initiates the
need for strategic adaptation or change.
 Developing Innovative (I) Teams
• Innovative (I) Team
• A semi-autonomous self-directing, self-managing, high-
performing group of two or more people who formally
create and share the ownership of a new organization.
• The leader is called a “product champion” or an “corporate
entrepreneur.”
• Collective Entrepreneurship
• Individual skills are integrated into a group; this collective
capacity to innovate becomes something greater than the
sum of its parts.
A Model of Sustained Corporate Entrepreneurship
Table
3.2 Sources of and Solutions to Obstacles in Corporate
Venturing
Traditional Management
Practices
Enforce standard procedures
to avoid mistakes
Manage resources for efficiency
and ROI
Control against plan
Plan for the long term
Manage functionally
Avoid moves that risk
the base business
Protect the base business
at all costs
Judge new steps from
prior experience
Compensate uniformly
Promote compatible individuals
Adverse
Effects
Innovative solutions blocked,
funds misspent
Competitive lead lost,
low market penetration
Facts ignored that should replace
assumptions
Nonviable goals locked in,
high failure costs
Entrepreneur failure and/or
venture failure
Missed opportunities
Venturing dumped when base
business is threatened
Wrong decisions about competition
and markets
Low motivation and inefficient
operations
Loss of innovators
Recommended
Actions
Make ground rules specific
to each situation
Focus effort on critical issues
(e.g., market share)
Change plan to reflect new learning
Envision a goal, then set interim
milestones, reassess after each
Support entrepreneur with managerial
and multidiscipline skills
Take small steps, build out from
strengths
Make venturing mainstream,
take affordable risks
Use learning strategies,
test assumptions
Balance risk and reward,
employ special compensation
Accommodate “boat rockers”
and “doers”