Individual intentions towards entrepreneurship vs intrapreneurship - Free Essay Example

Sample details Pages: 11 Words: 3415 Downloads: 9 Date added: 2017/06/26 Category Business Essay Type Compare and contrast essay Did you like this example? Concept of Intrapreneurship Intrapreneurship is the same concept of Entrepreneurship with a main difference that Intrapreneurship is practiced within established organizations. From both definitions above, we can note that Entrepreneurs are opportunity driven. Opportunity comes from changes in the environment, and one characteristic of Entrepreneurs is that they are good at seeing patterns of change. Don’t waste time! Our writers will create an original "Individual intentions towards entrepreneurship vs intrapreneurship" essay for you Create order It is also evident that Entrepreneurs are not resource driven. For those who confuse an entrepreneur with a manger they are completely opposite: a manager achieves a goal given an amount of resources; the Entrepreneur asks for resources to achieve a goal! Difference between Intrapreneur and Entrepreneur: Intrapreneur is a person who focuses on innovation and creativity and who transforms an idea into a profitable venture, by operating within the organizational environment. Intrapreneurs, by definition, embody the same characteristics as the Entrepreneur, conviction, passion, and drive. If the company is supportive, the Intrapreneur succeeds. When the organization is not, the Intrapreneur usually fails or leaves to start a new company. An Intrapreneur thinks like an entrepreneur seeking out opportunities, which benefit the corporation. It was a new way of thinking, in making companies more productive and profitable. Main differences between entrepreneurship and Intrapreneurship: There are, of course, a few things that are different between Intrapreneurship and Entrepreneurship. For starters, the Intrapreneur acts within the confines of an existing organization. The dictates of most organizations would be that the Intrapreneur should ask for permission before attempting to create a desired future practice, the Intrapreneur is more inclined to act first and ask for forgiveness than to ask for permission before acting. One advantage of Intrapreneurship over Entrepreneurship is that Intrapreneurs typically finds a ready source of free resources within the organization which can be applied to the opportunity being exploited. Importance of Intrapreneurship nowadays Todays world is changing very fast that organizations are finding it hard to keep pace and compete, therefore they are looking towards   their Intrapreneurs to take increase their competition by creating new businesses, and entering new markets. Conceptualizing entrepreneurial employee behavior Entrepreneur Entrepreneur is a term applied to a person who is willing to launch a new venture or enterprise and accept full responsibility for the outcome. Leadership attributes The entrepreneur leads his company and shows leadership potentials by selecting managerial staff, the company strategy Management skills and the right choice of staff are essential for the success of an entrepreneur. Beside that an entrepreneur become a leader because they see available opportunities and stays well-positioned to take advantage of them. An entrepreneur may perceive that they are among the few to recognize or be able to solve a problem. Joseph Schumpeter saw the entrepreneur as innovators and popularized the uses of the phrase creative destruction to describe his view of the role of entrepreneurs in changing business norms. Creative destruction encompasses changes entrepreneurial activity makes every time a new process, product or company enters the market. Influences, personality traits, and characteristics The most significant influence on an individuals decision to become an entrepreneur is workplace peers and the social composition of the workplace. Entrepreneurs also often possess innate traits such as extroversion and a propensity for risk-taking. According to Schumpeter, an entrepreneur characteristically innovates, introduces new technologies, increases efficiency, productivity, or generates new products or services. An entrepreneur acts as a catalyst for economic change and research indicates that entrepreneurs are highly creative individuals who imagine new solutions by generating opportunities for profit or reward. There is a complexity and lack of cohesion between research studies that explore the characteristics and personality traits of, and influences on, the entrepreneur. Most studies, however, agree that there are certain entrepreneurial traits and environmental influences that tend to be consistent. Although certain entrepreneurial traits are required, entrepreneur ial behaviours are dynamic and influenced by environmental factors. Shane and VenKataraman (2000) argue the entrepreneur is solely concerned with opportunity recognition and exploitation; however, the opportunity that is recognized depends on the type of entrepreneur which Ucbasaran et al. (2001) argue there are many different types dependent on their business and personal circumstances. Psychological studies show that the psychological propensities for male and female entrepreneurs are more similar than different. Perceived gender differences may be due more to gender stereotyping. There is a growing body of work that shows that entrepreneurial behavior is dependent on social and economic factors. For example, countries which have healthy and diversified labor markets or stronger safety nets show a more favorable ratio of opportunity driven rather than necessity-driven women entrepreneurs. Empirical studies suggest that women entrepreneurs possess strong negotiating skills and c onsensus-forming abilities. Interviewing an entrepreneur/intrapreneur Summary Based on my discussions and interaction with Mr. MAWAD, I have analyzed his personality traits, background, motivation factors behind his entrepreneurial skills. Entrepreneurial feelings: The need for independence and acquiring sense of achievement were the prime factors for him for his entrepreneurial feelings. His risk taking attitude also supplemented the feelings. These can be suitably demonstrated by the following events in the life of Mr. Mawad: Doing small businesses like selling ballpen refills, firecrackers in his school days for his pocket money and thereby reducing his dependence on his parents for money His habit of doing small jobs helped him fund his education when his family was going through tough times His sense of being stuck in the organization with doing only administrative and mundane tasks as part of his work life Jumping at the first opportunity of being an entrepreneur when his ex-boss asked to join him His first venture is in IT, which has been his domain for last 8 years. He is now exploring opportunities in recycling waste. This shows his calculated risk taking capabilities Entrepreneurial background and characteristics: Family Environment Santosh Rane is first born His parents were supportive when he started doing small businesses in school and college days Though his family currently discourages entrepreneurship, his wife has been very supportive of his venture Education Santosh Rane is an engineer by his educational qualifications he has also done Diploma in Management Studies to gain exposure to management principles. This has provided him a good background to understand the nuances of running a business Personal Values Personal values are quite important to Santosh. Personal values such as integrity, commitment and endurance are the values that Santosh Rane looks for in partners His sense of commitment towards his employees who have placed their trust in him can be seen by his hesitation to take up riskier ventures. Work History His initial formative years of his career were spent in Chemical Industry where he was responsible for construction of projects within the company. This was a very high responsibility job. As the years progressed, Santosh realized that after a certain point growth stagnated in the Chemical industry and even the remuneration was not attractive in the core industry. He took a risk to get into IT industry to gain a jump in his salary. As he climbed the growth the ladder, he was again stuck up with managerial tasks which were managerial in nature. This lack of challenge, boredom, and frustration motivated him to launch his own venture. Motivation/Support Systems Motivations: Sense of Independence Money Need for achievement Drive and Zeal to do something that he loved Role Models: Narayan Murthy His maternal uncle who had started a small workshop Support Systems His wife His uncle His ex-employers Avartan Technologies Clients I will be interviewing my father for both being an intrapreneur (project manager in one of the biggest companies in Lebanon) and an entrepreneur for his own business Brief Profile of the Entrepreneur Name: Mr. Jean MAWAD Age:   53 years Education: Diploma in Civil Engineering Highway, minor degree in economics 1983 Work Experience: Ahdab Co. 1983 to 1992 Antoine Makhloof EST 1992 to present Current Enterprise Masters Hotel Ehden Entrepreneurial opportunities 1990 till date JM Civil engineering consulting 2010 till date Mr. Mawad, born in the North of Lebanon, comes from a very humble family consisting of his parents and his brother. His father was a farmer with lager assets. During his school days, he helped his father selling his goods, and convinced his uncle to exportation in his father business. He eventually went on to become a Civil Engineer one of the best Universities in Lebanon (USJ). The first job he got thanks to the recommendation of his maternal uncle, at Ahdab Co. Enterprises Profile Masters Hotel Ehden Masters Hotel is a mountainous mixed resort and hotel famous for its pristine surroundings and beautiful scenery. Ehden, a very busy summer town is one of the most sought after place in Lebanon to spend summer time. This fact is witnessed by the overcrowded hospitality places, such as hotels, restaurants, nightclubs and resorts during the whole summer period. In the neighborhood of the site there is the protected area of the Forest of Ehden which is famous for its biodiversity and majestic eco-system. It has become a worldwide destination for ecotourism and a safe-haven for researchers in botanic fields. Interview Would you tell me about yourself before you started your first venture? I am civil Engineer; know I am a project manager in a construction company that mainly works in roads and highway fields. I started in a civil engineering laboratory to fastly move to be a project manager, and in parallel started my own business, it has been 20 years now. Whom else did you know while you were growing up who had started or owned a business, and how did they influence you? Anyone later, after you were 21 years old? Starting of my own was always on my mind since childhood. But while working in the civil engineering field, I came to know many service contractors, manufacturers and vendors and interaction with them made me believe that I also can start of my own. Were your parents, relatives, or close friends entrepreneurial? How so? No one. In my family, it was always in generating profits for the existent capital, but not going into new businesses. I took the chance first and I succeeded till now. My wife has supported me all through my venture. Did you have role models? Yes, my maternal Uncle, who is hardly educated, supported me and helped me to convince my parents to give me a small capital to start my ventures. What was your education/military experience? In hindsight, was it helpful? In what specific ways? Being an engineer always helps me to do analysis in scientific way, though I may not be using all the knowledge that I have learnt from my engineering days. Education helps you to build confidence to learn new things. A commerce graduate usually shies away from technical content and while engineers also do same way for accounts. In my view one should receptive to acquire knowledge in different areas. Of course Technology and Finance are the key for any business. Did you have a business or self-employment during your youth? I started my first Business when I was in 21 before I graduate from university. It was about real estate, may father gave me a land and money to build a 6 stories building, this business was pretty none existent in my area, normally people build their own houses and have to contact all suppliers, I offered a full equipped house to clients, and that went for the next 4 years. I gave back the main investment to my father. This business gave me the idea of a Hotel. In particular, did you have any sales or marketing experience? How important was it, or a lack of it, to starting your company? I dont have any experience. But I never felt need of it, as every person does marketing every moment of his life, be it in his job or business. You continuously have to sell yourself. The only difference is, in business you need to have a scientific approach. Describe how you decided to create a job by starting your venture instead of taking a job with someone else I was working for 8 years for somebody and although I was satisfied with my growth, I thought growth would halt after 4 to 5 years and instead of being the liability to engineering I thought of adding value to myself and others. How did you spot the opportunity? How did it surface? A contractor that knows me from my previous job got the first big contract in highroad and he asked me to join as Project engineer. I jumped at the opportunity. And I got I great bonus, that helped me to grow up my hotel What were your goals? What were your lifestyle needs or other personal requirements? How did you fit these together? My lifestyle needs are no different than a common mans goals and I was blessed to have achieved those lifestyle needs by then. But my personal goals are not directly related to wealth. They are creating some space of your own and create jobs for others. If your income is low, then you align yourself to that, being from lower middleclass family, this is not challenge for me. How did you evaluate the opportunity in terms of the critical elements for success? The competition? The market? Did you have specific criteria you wanted to meet? I strongly believe that there are opportunities around you all the time. The point is whether you are ready to take that. Let me explain there are available seats for IIM every year but the opportunity exists only for those who are ready. Now Lebanon is passing through a phase which every country does only once in its lifetime and I am happy to be there at this point of time. So anything and everything that comes your way can be opportunity. But, only a few see it while others see it only when somebody makes use of it. Did you find or have partners? What kind of planning did you do? What kind of financing did you have? This was easy for me, my boss of the company was mostly ready to put money in my own business. Also I had my brother as an associate in the Hotel, but we split in the last year. Did you have a startup business plan of any kind? Please tell me about it. We did not have any business plan. We just jumped at the opportunity. Currently, we are in the process of building one. How much capital did it take? How long did it take to reach a positive cash flow and break-even sales volume? If you did not have enough money at the time, what were some ways in which you bootstrapped the venture (bartering, borrowing, and the like)? Tell me about the pressures and crises during that early survival period. I have borrowed over a 100 000$. I started with land capital, from my father, and I did have personal reserves for about 18 months period and that sailed me through at the personal front, in addition to some gain from the buildings project. How did any outside advisors make a difference in your company? Outside advisors can give a different view point to founders directions. This would not only help in our current business line but also in other diversifications that we plan to build in years to come. This would also help to build network and brand in Industry. Networking is very important and I think the first customer that you get is usually through networking. We are looking for advisors for our various initiatives. Now I am expanding the Hotel Capital by 500K$ to build a new facility. What did you perceive to be the strengths and Weaknesses of your venture? Dedicated team of founders who want to work together to make a company which is built on values is our strength. The weakness that I think Ive faced is the lack of ability to take bold decisions due to financial insecurity, in addition to political instability in Lebanon When you looked for key people as partners, advisors, or managers, were there any personal attributes or attitudes you were particularly seeking because you knew they would fit with you and were important to success? How did you find them? Honesty, commitment and endurance would be the only attribute I would look for. Rest fall in place automatically. Are there any attributes among partners and advisors that you would definitely try to avoid? Suspicious partners, Lack of Values, and always create legal commitments and clear rules for partnership! In terms of the future, do you plan to maintain? To expand? As I sad we are looking forward to build a new facility, actually weve started the project but were crrutenly in a little shortage of money. In your ideal world, how many days a year would you want to work? Please explain. I would like to take a break for 15 days for family and would like to dedicate about 20 days in a year for social work; rest I would want to work. Do you plan ever to retire? Would you explain? Well, I never want to retire. Though I would not like to work, I want to dedicate my last years of life for betterment of society and social work. Till 60 years of age I would work more for me and after 60 I would change the ratio. Have your goals changed? Have you met them? I believe in short term goals. They do give a sense of achievement and inspiration to do more in life. So yes, my goals always change once I achieved one. Yeah sometimes it takes more time to achieve a goal but I do achieve them as I have to move on. What do you learn from both success and failure? Learning is always from failures as one usually tends to take success for granted. Sometimes you may get success and next time doing same way you may not and you fail. So failure always makes you learn. What do you consider your most valuable asset, the thing that enabled you to make it? My attitude, patience, and self-belief. If you had it to do over again, would you do it again, in the same way? Yes, I would always like to jump in well and learn swimming rather than thinking whether to jump and finally do all planning and not jump at all or probably find out its too late to swim. I believe its better to do imperfect things that doing nothing perfectly. Once you are in it, you would find the best way to survive and succeed. Some people say there is a lot of stress being an entrepreneur. What have you experienced? How would you say it compares with other hot seat jobs, such as the head of a big company, or a partner in a large law or accounting firm? I dont agree, one can decide where to stop when being an entrepreneur. When you work for others, they control you and so its tough. What things do you find personally rewarding and satisfying as an entrepreneur? What have been the rewards, risks, and trade-offs? I could do the things the way I wanted to do, I am contended on that front.   There is nothing called risk, its always relative to a person. Patients health risk is Doctors opportunity is another way of looking at it. Its too early to reap in any monetary rewards; we have just started it yet. But, yes the satisfaction of doing something on your own is my biggest reward so far. Who should try to be an entrepreneur? And who should not? Person who believes in himself/herself should only go for it. Relying on somebody else may result in despair, as he/she would not be ready to accept failures. You and only you would be responsible for your successes or failures. What advice would you give an aspiring entrepreneur? Could you suggest the three most important lessons you have learned? How can I learn them while minimizing the tuition? I could say â€Å"Once started dont give up. You may reach goal late than others but you will reach there for sure. Also To become a successful entrepreneur, you should be patient and calm. you should avoid hastiness and rapid success. An individual should know how to manage his time efficiently. And last but not the least; an individual should be committed to his work. He should be committed and loyal to his words and fulfills his promises made to the customers.