The New Business Venture MGT 2230

Chapter 3
Entrepreneurial Intentions & Corporate Entrepreneurship

The Robert Mondavi Story, Page 55-57

THE INTENTION TO ACT ENTREPRENEURIALLY

Entrepreneurial Intentions. The motivational factors that influence individuals
to pursue entrepreneurial out comes.
Entrepreneurial Self Efficacy. The conviction that on can successfully execute
the entrepreneurial process.
Perceived Desirability. The degree to which an individual has a favorable or
unfavorable evaluation of the potential entrepreneurial out comes. If the outcome
is perceived as favorable, the stronger the intention to act entrepreneurially.

ENTREPRENEUR BACKGROUND & CHARACTERISTICS

Education
There are many who feel that many have made it with very little education. There
are many examples.
Research proves that education is important in the upbringing of the entrepreneur.
Education will provide a good background for the venture.
The degree may not be in the same field as the venture.
The ability to communicate clearly with both written and spoken word is also
important in any entrepreneurial activity.
Education is valuable because it facilitates the integration and accumulation of
new knowledge. This will assist the entrepreneur in adapting to new situations.
If the individual believes their education makes entrepreneurial action more
feasible, they are more likely to become entrepreneurs.

Personal Values
Entrepreneurs tend to be effective leaders but this does not distinguish them from
successful managers.
Entrepreneurs have a different attitude towards management and business in
general.
Entrepreneurs focus on opportunity and individualism as opposed to the
bureaucratic organization.
Very important to the entrepreneur is ethics and ethical behavior.

Age
Most initiate their entrepreneurial careers betweens the ages of 22 and 45.
It can be done later if the person has the high energy needed to launch a new
venture successfully.
There are age milestones when entrepreneurs are inclined to start their venture;
25, 30, 35, 40 &45.
Work History
Plays a role in the growth and eventual success of the new venture.
Previous Technical and industry experience is important.
However, a lack of challenge or promotional opportunities is often the main
motivators to launch the venture.
As the venture grows, management and financial skills become increasingly
important.
Throughout your venture, you are exposed to many other new ventures.
Previous start up experience is important to judge the feasible of the next venture.

ROLE MODELS & SUPPORT SYSTEMS

Role models are individuals influencing an entrepreneur’s career choice and style.
Role models can serve as a support and advisory system.

Moral Support Network

Individuals who provide psychological support to the entrepreneur.
Play a critical role during the lonely and challenging times ahead.
They can provide encouragement, understanding and even assistance.
These are people that you can confide in without fear of criticism.

Professional Support Network

Individuals who help the entrepreneur in business activities.
A mentor is a coach and advocate who is an expert in the field.
Good advice can be cultivated by establishing a network of business associates.
Suppliers are another important component in a professional network.
Trade associations can provide professional support.
Personal affiliations to groups whose mission matches your views.
It is important to recognize that entrepreneurial activity is embedded in networks
of interpersonal relationships.

MALE VERSUS FEMALE ENTREPRENEURS (Page 65 Table 3.1)

Women now start new ventures at a higher rate than men.
SBA reports that%28 of private companies are owned by women.
1/3 of women owned businesses are in the health care and social services field.
Men are motivated by the drive to control their own destiny.
Women tend to be motivated by the need to achievement arising from job
frustration in being held back.
Departure Points. The activities occurring when the venture is needed.
For men the new venture is often an outgrowth of a present job.
Women are driven by enthusiasm for a new venture as opposed to practical
experience. This makes the transition more difficult.
Men will find investors through bank loans and personal loans.
Women rely solely on personal assets or savings.
Men usually field ventures in manufacturing, finance or technical areas and tend
to be inflexible.
 Women will work more towards administrative activities and tend to be more
tolerant and flexible.
Men will list business associates as their most important supporters.
Women will list spouse, and close friends as their important supporters.

MONORITY ENTREPRENURSHIP
Understanding the differences in the behavior of various ethnic groups is
important.
Asians are #1, Hispanics #2, and African Americans #3 in startups.
One study found minority business owners tend to be younger and better educated
and had family backgrounds similar to white business owners.
One study found that minority business owners were the oldest child in a blue
collar family.
Some ethnic entrepreneurs have access to established community resources.
Minority businesses from 1981 – 2002 have quadrupled.

ENTREPRENEURIAL INETNTIONS WITHIN EXISTING ENVIRONMENTS

Fostering entrepreneurship creates an environment that makes action both feasible
and desirable.

Causes
1. Social Level. Increased interest in “doing your own thing” and on your
own terms. Frustration can make an individual less productive.
2. Cultural. When meaning for the job is not provided, the individual will
often search for an institution that can provide it.
3. Business levels. It is a method of stimulating and then capitalizing on
individuals in an organization who think that things can be done
differently.

Traditional Corporate Culture versus Entrepreneurial Culture - Page 71 Table 3.2

Corporate Culture. The environment of a particular organization.
Entrepreneurial Culture. The environment of an entrepreneurial orientated firm.
Traditional Managers. Managers in a non-entrepreneurial organization.

Homework
Answer the following questions in detail.
1) Who are your role models and what impact have they had on your decisions?
2) Why is this person a role model for you?
3) What is your plan to create an additional role model in your life to help guide
you through the next phase of your education or work life?