ENTERPRISE MANAGEMENT

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Who or what is anENTREPRENEUR?

What are the essential skills?How do they work?Can entrepreneurial behaviours be learned?What do you think?

What do entrepreneurs DO?

The supply Of Entrepreneurs

EntrepreneursConventionalLabour pool

Start-up

Fall-out

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The supply Of Entrepreneurs

EntrepreneursConventionalLabour pool

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Pull factors

Push factors

Inhibitors

Motivations For Starting a Business

“Pull Influences”

Desire for independence

Desire to exploit opportunity

Turning an hobby into a business

Financial incentive

Motivations For Starting a Business

“Push Influences”

Redundancy

Threat of unemployment

Disagreement with the employer

Entrepreneurship and the drive for change

The PossibleThe Actual

Tension

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Tension in the entrepreneurial process

Entrepreneurship and the drive for change

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Tension in the entrepreneurial process -

The financial dimension;

The personal dimension;

The social dimension

Entrepreneurial Ability in Individuals

These categories are:

Need for achievement

Need for autonomy/independence

Creativity

Moderate/calculated risk taking

Drive and determination

Entrepreneurial personal characteristics that can influenceperformance

the ‘great’ person social misfit personality type personality trait social development

The ‘great person’

Entrepreneurs may provide role models

Success makes them look ‘great’ people

Caution: this should not deny entrepreneurial success to others

Social misfit

A view that entrepreneurs: are unable to fit into existing social

situations are characterised by insecurity and

lack of self-esteem display rebellious and deviant behaviour

Caution: dangerous to generalise. For every entrepreneur who lived an unhappy childhood, another can be found who was quite comfortable.

Personality type - a view that entrepreneurship can be characterised into a small number of categories

extrovert vs introvert aggressive vs passive spontaneous vs reserved internally vs externally oriented

Note: practice shows that introverts are as likely to be entrepreneurs as extroverts.

So what?

There are many myths about ‘entrepreneurs’

They are not ‘born that way’ All of us can work in enterprising ways,

if... We want to Are encouraged to by those around us -

culture! Are able to learn to

Enterprise

Enterprise is recognising a problem or need as an opportunity

Finding or creating a solution Acting to make it happen May be through a business venture

or in another way - e.g. social enterprise

Enterpreneurial working:creating new value

Entrepreneurship is the activity of identifying or creating market opportunities

By bringing together resources in a venture and acting to exploit opportunities

Resulting in the creation of new value: Financial - as well as Social Creative Technological Environmental

Entrepreneurship as unlocking value

‘making creative connections between needs/opportunities and capabilities/resources

Entrepreneurship in the economy & society

Increasing value of innovation, technology, knowledge Reducing costs & timescales for transferring data &

materials - increase competitive opportunities Most big organisations no longer work effectively?

(private & public sector) Big organisations control most valuable resources Entrepreneurship is seen as vital for economic

regeneration - create innovations, demand, wealth, jobs? Entrepreneurs have to create opportunities, capture

resources & grow business ventures

Entrepreneurship and Management

Entrepreneurship is focused on identifying new opportunities, innovating, and acting to exploit market opportunities

Management is concerned with the direction, control, resourcing & administration of the business organisation

BOTH are needed for a business enterprise to achieve long term success

Entrepreneurial management

Entrepreneurial working

Opportunity focus Rapid innovation Creating customer

appeal Challenge the

orthodox

Managerial working Strategic focus Organisational

synergy Managing resources Managing

relationships Systematic value

management

Creation of new valueCreation of new value

The conceptual landscape

Creativity Divergent thinking generates new

associations & possibilities

Convergent thinking enables selection between alternatives

Ideas

Solution

Entrepreneurial innovation Creates or exploits new opportunity Provides unique or distinctive solution to

customer need Disruptive: changes the context (Schumpeter) Risk and uncertainty are prevalent conditions Timing and speed is critical Enhances the competitive advantage of the

enterprise - shapes the future Assessed by economic and customer criteria

Opportunity centred entrepreneurship

Process of how people learn whilst exploring and working on an opportunity.

It includes four clusters of activities: Personal enterprise - connecting

opportunities with goals and identity Creating & exploring opportunities Planning to realise opportunities Acting on opportunities

Opportunity centred entrepreneurship

The Entrepreneurial Process: action and success

Opportunity

OrganisationResources

The Entrepreneur

FitFocus

Configuration

The Entrepreneurial Process: action and success

Opportunity

OrganisationResources

EntrepreneurFailure

Success

Learning

Actions

Outcomes