- Definition of Entrepreneurship: the pursuit of opportunity without regard to resources currently controlled.
- Six Critical Dimensions of Business Practice:
- Strategic Orientation
- Commitment to Opportunity
- Resource commitment process
- Control of resources
- Management structure
- Reward Philosophy
Strategic orientation
What pressures a firm to become more Entrepreneurial?
- Diminishing Opportunities
- Rapidly Changing:
- Technology
- Consumer Economics
- Social Values
- Political Rules
What pressures a firm to become more Administrative?
- Social Contract
- Performance Criteria
- Planning Systems
Commitment to Opportunity (What is an opportunity?)
What pressures a firm to become more Entrepreneurial?
- Move quickly
- Short Decision Windows
What pressures a firm to become more Administrative?
- Multiple constituencies
- Risk Reduction
- Management of fit
Commitment of Resources (What resources are necessary?)
What pressures a firm to become more Entrepreneurial?
- Maximize value creation by minimizing resource
- Accept more risk!
What pressures a firm to become more Administrative?
- Careful analysis
- Large scale commitment
Control of Resources (What do I need to own, borrow, or steal?)
What pressures a firm to become more Entrepreneurial?
- How to get by with minimal resources under control
- Beg, borrow, steal!
What pressures a firm to become more Administrative?
• Coordination
• Efficiency
• Industry structures
Management structure (How do we manage the operation?)
What pressures a firm to become more Entrepreneurial?
- Coordinate resources (outside company)
- Flexibility
- Employee Independence
What pressures a firm to become more Administrative?
- Defined authority / responsibility
- Organized Culture
- Reward Systems
Reward Philosophy (How and when do we harvest?)
What pressures a firm to become more Entrepreneurial?
- Financial Backers
- Individual Expectations Competition
What pressures a firm to become more Administrative?
- Societal Norms
- Impacted Information
- Demands of Public shareholders