THE ENTREPRENEURIAL AND

INTRAPRENEURIAL MIND
Lecturer
Tahirah Kanwal
Department of Management Sciences
 THE ENTREPRENEURIAL PROCESS

The process of starting a new venture is

embodied in the entrepreneurial process,
which involves more than just problem solving
in a typical management position. An
entrepreneur must find, evaluate, and develop
an opportunity by overcoming the forces that
resist the creation of something new.
 Aspects of Entrepreneurial process

The process has four distinct phase:

1) Identification and evaluation of the
opportunity
2) development of the business plan,
3) determination of the required resources, and
4) management of the resulting enterprise.
 Identify and Evaluate the Opportunity

Opportunity Identification and evaluation is a

very difficult task. Most good business
opportunities do not suddenly appear, but
rather results from an entrepreneur’s alertness
to possibilities or, in some cases, the
establishment of mechanism that identify
potential opportunities.
 Steps to identify and evaluate the
opportunity
• Opportunity assessment
• Creation and length of opportunity
• Real and perceived value of opportunity
• Risk and returns of opportunity
• Opportunity versus personal skills and goals
• Competitive environment
 Develop a Business Plan
A good business plan must be developed in
order to exploit the defined opportunity. this is
very time consuming phase of the
entrepreneurial process.
A good business plan is essential to developing
the opportunity and determining the resources
required, obtaining those resources, and
successfully managing the resulting venture.
 Steps to develop Business Plan
Title page
1. Description of Business
• Table of contents
2. Description of Industry
• Executive Summary 3. Technology Plan
• Major Section 4. Marketing Plan

• Appendixes 5. Financial Plan

6. Production Plan
7. Organization Plan
8. Operational Plan
9. Summary
 Determination of the required resources

The resources needed for addressing the opportunity

must also be determined. This process starts with an
appraisal of the entrepreneur’s present resources. Any
resources that are critical need to be differentiated
from those that are just helpful. Care must be taken not
to underestimate the amount and variety of resources
needed. The downside risks associated with insufficient
or inappropriate resources should also be assessed.
 Steps to Determine Resources Required

• Determine resources needed.

• Determine existing resources.
• Identify resource gaps and available suppliers.
• Develop access to needed resources
 Manage the Enterprise

After resources are acquired, the entrepreneur must

use them to implement the business plan. The
operational problems of the growing enterprise must
also be examined. This involves implementing a
management style and structure, as well as
determining the key variables for success. A control
system must be established, so that any problem areas
can be quickly identified and resolved.
 Steps to Manage the Enterprise
• Develop management style.
• Understand key variables for success.
• Identify problems and potential problems.
• Implement control systems.
• Develop growth strategy.
 Managerial Vs. Entrepreneurial decision
making
Five different dimensions between entrepreneurial decision
making and managerial styles:
• strategic orientation
• commitment to opportunity
• commitment of resources
• control of resources
• management structure
Managerial styles are called the administrative domain.
Administrative domain is the way manager make decisions.
 CAUSES FOR INTEREST IN
INTRAPRENEURIALSHIP

These differences in entrepreneurial and managerial domains

have contributed toward an increased interest in
intrapreneurship. This interest has intensified due to a variety
of events occurring on social, cultural, and business levels.

On a social level , there is an increasing interest in “doing your

own thing” and doing it on one’s own terms. Individuals who
believe strongly in their own talents frequently desire to
create something of their own. They want responsibility and
have a strong need for individual expression and freedom in
their work environment.
When this freedom is not there, frustration can cause
that individual to become less productive or even
leave the organization to achieve self-actualization
elsewhere.
The resistance against flexibility, growth, and
diversification can, in part, can be overcome by
developing a spirit of entrepreneurship within the
existing organization, called intrapreneurship. An
increase in intrapreneurship reflects on an increase in
social, cultural, and business pressures.
 Corporate Vs. Intrapreneurial Culture

Corporate Culture
- is the environment of a particular organization.
Shared values and norms:
• Hierarchical in nature
• Established procedures
• Reporting systems
• Line of authority and responsibility
• Instructions
• Control mechanism.
Intrapreneurial culture
- Is the environment of an entrepreneurial-oriented
organization.
Shared values and norms:
• Flat organizational structure with networking
• Team work
• Sponsors
• Mentors abounding
Note: Close-working relationship help to establish an
atmosphere of trust that facilitates the accomplishment
of visions and objectives.
 Climate for Intrapreneurship
• Organization operates on frontiers of technology
• New ideas encouraged
• Trial and error encouraged
• Failures allowed
• No opportunity parameters – barrier to new product creation and
development
• Resources available and accessible
• Multi-discipline teamwork approach
• Long-time horizon
• Volunteer program
• Appropriate reward system
• Sponsors and champions available
• Support of top management
Intrapreneurial Leadership Characteristics

• Understand the environment

• Visionary and flexible
• Creates management options
• Encourages teamwork
• Encourages open discussion
• Build a collision of supporters
• Persists
 Establishing Intrapreneurship in the
Organization
1. To secure a commitment to intrapreneurship in the
organization by top, upper, and middle management levels.
2. Ideas and general areas that top management are interested
in supporting should be identified, along with the amount of
risk money that is available to develop the concept further.
3. A company need to use technology to make it more
flexible.
4. The organization should have a group of interested
managers who will train employees as well as share their
experiences.
 Establishing Intrapreneurship in the
Organization
5. The organization needs to develop ways to get closer to its
customers.
6. An organization that want to become more intrapreneurial must
learn to be more productive with
fewer resources.
7. The organization needs to establish a strong support structure for
intrapreneurialship.
8. Support must also involve trying the rewards to the performance
of the intrapreneurial unit.
9. The organization need to implement an evaluation system that
allows successful intrapreneurial unit to expand and unsuccessful
ones eliminated.
END