Entrepreneurship

Entrepreneurship is a dynamic process that involves

change and creation

Entrepreneurship can be defined as the

identification, evaluation and exploitation of
previously unexploited opportunities. The focus is on
creation of a new enterprise or business as well as
the wealth associated with it. Essential dimensions
or ingredients include willingness to take calculated
risk, the skill to apply creative solutions and new
ideas and finally, being pro-active to act on
opportunities while others are still confused or
unaware of the potential at hand.
 Entrepreneurship
Entrepreneurship encompasses several dimensions
or ingredients that help explain what makes it a
unique concept

The key dimensions of entrepreneurship include:

- Risk
- Creativity & innovation
- Opportunity exploitation
- Proactiveness
 Dimensions of
Entrepreneurship:
 Risk indicates elements of uncertain outcomes or
Risk
events that is inherent in the process of exploiting an
opportunity and starting a business

 Entrepreneurs take risks in order to obtain the

higher rewards that come from higher risk but are
careful to evaluate the risk first.

 Success comes from taking a calculated, carefully-

thought out approach to risk where everything
possible is done to identify and minimize potential
problems
 Dimensions of
Entrepreneurship:
Creativity
 Entrepreneurship & Innovation
is characterized by newness or
the specific effort of bringing something new and
something different to the market.

 Being creative and innovative are essential

dimensions of newness

 Creativity focuses on thinking of new things while

innovation focuses on doing new things
 Dimensions of
Entrepreneurship:
Opportunity
 Entrepreneurship Exploitation
is focused on taking
advantage or exploiting of previously
unexploited opportunities

 The exploitation of opportunities often result

in the creation of a new enterprise or
business as well as the wealth associated
with it

 The new enterprise should be beneficial to

the society and make a positive change
 Dimensions of
Entrepreneurship:
Proactiveness
 Pro-activeness refers to the propensity to act
on information, ideas and opportunities in a
timely and speedy manner

 Acting at the right time and in the right manner

on the superiority of an idea or opportunity can
differentiate between better success or less
success or even between success and failure
Entrepreneurial Process
 The entrepreneurial process, in general
,encompasses all the cognitive (thinking) and
behavioral (action) steps from the initial
emergence of a rough business idea until the
creation of a new business venture or the
process is terminated.
Entrepreneurial Process
 The entrepreneurial process is generally
composed of three key phases
 The idea generation or idea discovery
phase
 The idea evaluation and development
phase
 The idea exploitation phase

 The following figure shows the entrepreneurial

process with examples of activities at each
stage
Entrepreneurial Process
Idea Search & Idea Evaluation & Idea Exploitation
Generation Phase Development Phase Phase

Idea Discovery Research & Development Business Start-up

(Invention/Innovation)
Idea Screening Technology
Concept Testing
Commercialization
Prototyping
Monitoring &
Test Marketing Evaluation
Technology Blueprint
Entrepreneurial Process:
Idea Formation/Discover Phase
 This phase is also known as the opportunity formation
or opportunity discovery phase
 Both the terms ‘idea’ and ‘opportunity’ indicate the
possibility of bringing something new to the market
 Individuals or groups of individuals enter this phase by
either:
 Actively searching for business possibilities that they can offer
in a better, more creative or efficient form or
 Discovering a solution for their own problem experienced at
work, play or in the marketplace that has the potential of
being shared with others who are willing to pay for the
solution
Entrepreneurial Process:
Idea Formation/Discover Phase

 This phase is characterized by

efforts to better understand what it
will take to bring the idea or
opportunity into a full-fledge
economic activity or business
 Intrapreneur
(Corporate Entrepreneur)

In 1978, management consultant,

Gifford Pinchot, invented the new
word Intrapreneur to refer to an
intra-corporate entrepreneur
while he was attending The
School for Entrepreneurs in
April 17, 1982, in
Tarrytown, New York.an article in the
Economist, Norman Macrae gave
credit to Gifford Pinchot as the
inventor of the word
 Intrapreneur
(Corporate Entrepreneur)
In 1992, the third edition of the
American Heritage dictionary of the
English Language added the word
“Intrapreneur” to its dictionary as
in-tra-pre-neur
below: (InÕtre-pre-nur)
n. A person within a large
corporation who takes direct
responsibility for turning an idea into
a profitable finished product through
assertive risk-taking and innovation
[intra(corporate) +
(ENTRE)PRENEUR.] -inftrapre-nouri-
 Intrapreneur
(Corporate Entrepreneur)
It is reported that several large
corporations have started to embrace
this form of intra-corporate
entrepreneurship.
Intrapreneurship is3Mtheisprocess
the bestbyknown
which
example
individuals pursue a new business
opportunity (or by setting up
intraprises) from within an existing
company, with resources of that
company.
It uses the advantages of both small and
big scale business. In a broad sense,
 Intrapreneurship
Advantages to the
corporation
“To remain competitive, companies
have to accelerate their innovation
process. In companies where
distances between decisions
makers, researchers, production
Intrapreneurship is a good
people and marketeers areway of
large,
integrating these
innovation may beactivities,
at risk. reducing
innovation costs and broadening the
scope of innovation.”
Hielke S. van der Meulen, theme co-ordinator Intrapreneurship, NCE
 Intrapreneurship
Advantages to the
employees
“Intrapreneuring is an excellent
opportunity for creative employees
with entrepreneurial spirit,
management qualities, and a sense
If
ofcompanies don't
belonging to want
their to loose
company.
these high-potentials, they have to
provide them with the necessary
resources and room for maneuver.”

Dr. Hielke S. van der Meulen, theme co-ordinator

Intrapreneurship
You don’t have to leave your
company to fulfill your
entrepreneurial dream
If you have the great
entrepreneurial qualities and
spirit to convince your
company to endorse you as
their intrapreneur, you need
not leave them, unless you
have other better reasons to