ENTREPRENEURSHIP

MANAGEMENT

Prof Bharat Nadkarni

Session 5
 Entrepreneurship Management
Entrepreneur and Intrapreneur
What is Intrapreneurship ?
• It is a corporate entrepreneurship
• It is entrepreneurship in existing business
• They bridge a gap between a manager and an inventor.
• Their contribution is in taking new ideas and even working
prototype and turning them into profitable products and
businesses.
• When the ideas have become solid and functioning
businesses, intrapreneurs tend to grow bored. At this point,
they often need proven managers to maintain and develop
business while they go back to building new ventures for
others to manage.
 Entrepreneurship Management

As a corp. entrepreneurship – an organisation seeks to

expand/ grow by exploring new opportunities through new
combinations of its existing resources.
• It is a tool for stimulating and capitalizing on individuals in
an organisation who believe that something can be done
differently and in a better way.

An Entrepreneur operates in an open world whereas an

intrapreneur operates within the organisation.
For Entrepreneur, the liability is total whereas for
Intrapreneur the liability is limited to his contract with
his employers.
 Entrepreneurship Management
An Intrapreneurs profile
• Vision
• Motivation
• Bias to act
• Skills
• Locus to control
• Locus to risk
• Failure and mistakes
• Goal – setting
• Innovation
 Entrepreneurship Management
Advantages of Intrapreneurship
• Intrapreneurial ideas offer a way to build onto or improve
the corp. business
• Capital for the idea is easy to come from internal sources
within a corp. identity
• The established corporate image helps to boost the
chances of success of an intrapreneur idea.
• Corporates offer economies of scale in marketing,
distribution and service.
• Corporates offer the unique advantage of multidisciplinary
teamwork. The intrapreneur retains the job security but as
well enjoys the freedom and prosperity.
 Entrepreneurship Management
Intrapreneurial Environment
• Organization operates on frontiers of technology
• New ideas encouraged
• Trial and error encouraged
• Failures are allowed
• Resources available and accessible
• Multidiscipline teamwork approach
• Long time horizon
• Appropriate reward system
• Support of top management
 Entrepreneurship Management
Comparison between Entrepreneurial,
Intrapreneurial and Managerial functions
• primary motives
• time orientation
• activity
• risk
• status
• failure and mistakes
• decisions
• who serves
• relationship with others
• family history
 Entrepreneurship Management

Comparison between Entrepreneurial, Intrapreneurial and Managerial functions

Managerial Intrapreneurial Entrepreneurial

Primary motives promotional and other Independence and ability to Independence,
traditional corporate rewards advance in the corp. rewards opportunity and money
like office, staff, power

Time orientation Short term - meeting quotas
and budgets, W/M/Q and
annual planning horizon
Activity Delegates and supervises
rather than direct involvement
Between Manager and
Entrepreneur, depending on
urgency to meet self imposed
and corp. timetable
Direct involvement, more than
delegation
Survival and achieving
5-10 yrs growth of
business
Direct involvement

Risk Careful Moderate risk taker Moderate risk taker

 Entrepreneurship Management
Comparison between Entrepreneurial, Intrapreneurial and Managerial functions

Managerial Intrapreneurial Entrepreneurial

Status Concerned about status Not concerned about traditional Not concerned about
symbols status symbols, desires status symbols
independence

Failures and mistakes Tries to avoid mistakes and Attempts to hide risky projects Deals with failures and
surprises from view until ready mistakes
Decisions Usually agrees with those in Able to get others to agree to Follow dreams with
upper management positions help achieve dreams decisions

Who serves Others Self, Customers and Sponsors Self and Customers

Relationship with others Hiararchy as basic relationship
Family history Family members worked with
organisations
Transactions within hiararchy
Entrepreneurial small business,
professional or farm
background
Transactions and deal
making as basic
relationship
Entrepreneurial small
business, professional
or farm background
 Entrepreneurship Management
Question Bank I
2. Discuss the qualities of a successful entrepreneur vis-à-
vis a successful manager in Indian context.
3. What are the challenges faced by women entrepreneurs
and what is their contribution in the semi-urben and
rural area of India.
4. “Entrepreneurs influence economic development and
productivity”. Offer your comments with examples
5. What do you understand by the term corporate
entrepreneurship ? Explain how business environment
and management culture influence corporate
entrepreneurship.
6. Explain the nature and development of
entrepreneurship.
 Entrepreneurship Management
Short notes
2. Entrepreneurship training programmes
3. Intrapreneur
4. “ Failure is the beginning of entrepreneurship”
5. Need for achievement
6. Gender bias in entrepreneurship
7. Creativity and Innovation in entrepreneurship
8. Opportunities for new entrepreneurs in agro based
industries
9. Importance of Risk management in entrepreneurship
10. Personality traits and competancies of entrepreneur.
11. Business plan
 Entrepreneurship Management

Entrepreneurship in Rural Areas

Issues

6. Population Growth
7. Population below the poverty line
8. Agriculture work force- small and marginal farmers
9. Disguised employment
10. Migration of farm workers to the urban areas
 Entrepreneurship Management
The basic entrepreneurial principles should be applied to
rural development. This would result in :
• Better distribution of farm produce resulting in the rural
prosperity
• Entrepreneurial occupation for rural youth resulting in
reduction of disguised employment and alternative
occupations for rural youth.
• Formations of big cooperatives like Amul for optimum
utilisation of farm produce
• Optimum utilisation of local resource in entrepreneurial
ventures by rural youth or involving rural youth.
 Entrepreneurship Management

The support system

Ex ; Amul, MAFCO

The enclave projects

Time schedules
Synchronisation among agriculture produce
Processing & shipping demand the tightest discipline
Stoppers – local politics & lethargy in bureaucracy
 Entrepreneurship Management
Profile of a Rural Entrepreneur

• Should not be an individualist. Should have a group

orientation. Should consider the rural society not as his
market but as his own large family
• Should practice management style where the concern
for people is the highest
• Should have a strong commitment for rural
development
• Social gain, philanthrophy should be the focus.