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Chapter 2

The Entrepreneurial and

Intrapreneurial Mind

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 Entrepreneurial Process
1) Identify/Evaluate Opportunity

2) Develop Business Plan

3) Determine Resources Required

4) Manage The Enterprise

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McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

 Opportunity Analysis
Market Need?
Personal Observation
Underlying Social Conditions
Market Research Data
Assess Competition- Patents?
Where Money To Be Made
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 Decision Making
Manager vs. Entrepreneur
Domain- Administrative vs.
Entrepreneurial
Strategic Orientation
Commitment to Opportunity
Commitment of Resources
Control of Resources
Management Structure
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“Intrapreneurship”
Instilling
Entrepreneurial
Spirit Within An
Existing
Organization To
Innovate And Grow.
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 Organizational Culture
Corporate Intrapreneurial
Climate/Reward Develop Vision,
System Favors Goals, & Plans
Conservatism Suggest, Try,
Follow Experiment
Instructions, No Flat Organizational
Initiative Structure-
Hierarchy Of Networking &
Authority Teamwork
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Cultural Norms/Values
Corporate Intrapreneurial
Fragmented Whole
Instruction Vision
Controlled In Control
Outer-Directed Inner-Directed
Alienation Responsibility
“Chores” Enthusiasm/Motivation
Defined Limits Space/Freedom
Interference Trust
Distrust Belief In People
Expendable Expandable
Limiting People Growing People 2-8
Interest In Intrapreneurship
Rising Interest in “Doing Your
Own Thing”
Corporation
 Support To Retain Creative
Employees
 Fund Startups
Hypercompetition
Corporate vs. Intrapreneurial
Culture
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Intrapreneurial Activities
New Business Venturing
Innovation
Self-Renewal
Proactive
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 Climate for Intrapreneurship
• Technology • Multidiscipline Teams
• New Ideas • Long Time Horizon
Encouraged • Volunteer Program
• Trial/Error • Appropriate Reward
Encouraged System
• Failure Allowed
• Sponsors/Champions
• No Opportunity
Parameters Available
• Resources Available & • Support of Top
Accessible Management

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 Intrapreneurial Leaders
Understand Environment
Have Vision/Flexibility
Create Management Options
Encourage Teamwork
Encourage Open Discussion
Build Coalitions
Persist
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Establishing Intrapreneurship

Commitment of Top Management

Identify Ideas/Areas Interested In
Supporting
Use Technology For Flexibility
Managers Share/Train Employees
Get Closer to Customers
Be More Productive With Less
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 Evaluating
Intrapreneurship Proposals
Corporate Fit Competitive
Initial Threat
Investment
Experienced Proprietary
Venture Technology
Champion
Gross Margin
Experience With
Product/Service Rate Of Return
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 Barriers To
Intrapreneurship
Inherent Nature of Large
Organizations
No Long-Term Commitment
Lack Of Autonomy For Decision
Making
Lack of Intrapreneurial Talent
Inappropriate Compensation Methods
Constrained Environment
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