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Chapter 20 Corporate
Entrepreneurship
Learning Outcomes
On completion of this chapter you will be able to:• Define the term Corporate Entrepreneurship• Discuss the different forms of Corporate Entrepreneurships• Discuss the corporate entrepreneurial life cycle• Understand the concept entrepreneurial intensity• Understand the role of a Corporate Entrepreneurship Culture• Explain the individual characteristic of the Corporate
Entrepreneur• Explain the constraints placed on Corporate
Entrepreneurship• Explain how Corporate Entrepreneurship can be promoted in
a company• Know how to measure a firm’s Corporate Entrepreneurship
Intensity
Corporate Entrepreneurship
Corporate Entrepreneurship is a term that is used to describe
entrepreneurial activity within an existing business.
Manager versus Corporate Entrepreneur
Manager Corporate Entrepreneur
• Vision• Calculated Risks
• Organising• Planning• Coordination• Control• Strong sense to report• Apply managerial principles • Strong sense of accountability
Forms of Corporate Entrepreneurship
• Internal Venturing – New business in existing firm
• New Venturing – New business added on existing business
• Strategic Venturing – redefine firm relationship with
internal and external environment
Corporate entrepreneurial cycle The different stages a company goes through
from being very creative to becoming very formal.
Corporate Entrepreneurial Intensity (CEI)
• The degree and frequency of entrepreneurial activity in an
existing business.
A company’s CEI will vary according to :
• Internal (type of management structure in place; decision
making routes, policies, rules and regulations in place); and
• External factors (competition, government legislation,
customer base) that they need to deal with.
Corporate Entrepreneurship Culture
Basic beliefs and assumptions about what the company is
Elements required to create an entrepreneurial
culture• Pay attention to the basics (for example regular feedback, recognition)
• Doing the right things (provide promised resources)• Know what is going on in your company• Encourage commitment and take responsibility• Create value through innovation and change• Empower staff (teaching, training and learning)• Forgive failures and provide freedom to employees to grow• Place a sense of urgency on all matters and guide
employees to focus on the future
Individual characteristics of the corporate entrepreneur
• Middleclass person
• Highly educated
• Some technical background
• Requires freedom
• Access to company resources
• Self-motivated
• Wants corporate recognition and rewards
Constraints on corporate entrepreneur
• Strategic Direction
• Systems
• Structures
• Policies and Procedures.
Ways to promote corporate entrepreneurship
• Allow employees to experiment with low risk opportunities.
• Listen to new employees and young people.
• Provide recognition
• Budged for new innovative ideas
Measuring Instruments
• Corporate Entrepreneurial Intensity
• Corporate Culture
Glossary
• Entrepreneurial Culture• Corporate entrepreneurship• Corporate entrepreneurial life cycle• Corporate culture• Corporate strategy• Corporate Venturing• Entrepreneurial Intensity• External corporate venturing• Internal corporate venturing• ‘Intrapreneurship’• ‘Intrapreneurial’ Characteristics• Policies and Procedures• Strategic Entrepreneurship• Structures• Systems