ENTREPRENEURIAL SKILLS ENT3001/3003/4003

1. ENTREPRENEURIAL SKILLSENT3001/3003/4003 LECTURE #3 INTRODUCTION TO ENTREPRENEURSHIP

2. INTRODUCTION TO ENTREPRENEURSHIP Objectives • Concept of Intrapreneurship • Creating an Intrapreneurial Environment • Benefits of Intrapreneurship • Rewarding Intrapreneurship • Creativity and Business • The creative process • Entrepreneurial rules to live by

3. Concept of Intrapreneurship

4. INTRAPRENEURSHIP • What is Intrapreneurship?

5. Intrapreneurship Also called Corporate Entrepreneurship • Entrepreneurial activities that receive organizational sanction and resource commitments for the purpose of innovative results

6. INTRAPRENEURSHIP • Existing businesses have the financial resources, business skills, and marketing & distribution system to commercialize innovation successfully.

7. What is Intrapreneurship? • Process involving the promotion of innovation and creativity within existingcorporations • Innovation and creativity re: • Ideas & products • Processes • Administrative procedures

8. Developments stimulating Intrapreneurship • Globalization • intense external competition from products & services from companies all over the world, forces companies to internal experimentation for growth & survival • Rapid evolution of knowledge and technology • Forces businesses to change internally to retain relevance • Younger more technology savvy employees available to drive new developments

9. Developments stimulating Intrapreneurship • Greater access to funding-more start-ups emerging – posing challenge to established businesses • Emergence of smaller more flexible companies formal & informal eating away market share of established companies

10. Profile of Intrapreneurs • They are the “dreamers who do” • Take hands- on responsibility for creating innovation • They figure out how to turn an idea into a profitable reality

11. Profile of Intrapreneurs • Action-oriented and committed to goals of the company- see their future intertwined with that of the company

12. Creating an Intrapreneurial Environment

13. Creating an Intrapreneurial Environment Tapping into the creative energies and talents of own workers • Create culture which demonstrates that responsibility for creating innovation rests not only on firm’s management • Recognition that innovation is a capability of the many

14. Creating and Intrapreneurial Environment Worker commitment necessary for Intrapreneurship • Commitment comes when there is encouragement and a feeling of belonging by workers • Approval and support of goals and vision by workers of company

15. Creating and Intrapreneurial Environment • Create a system of feedback and positive reinforcement • Emphasize individual responsibility • Give rewards based on results

16. Fostering an Intrapreneurship Culture Pre-Requistes for Intrapreneurship • Organization sanction • Flexible management • Adequate budget for entrepreneurial activities/projects • Setting explicit goals

17. Fostering an Intrapreneurship Culture Operational Strategies • Identify and motivate intrapreneurs/high achievers • Tolerate failure resulting from entrepreneurial experimentation • Use failure as a learning experience

18. Fostering an Intrapreneurship Culture Operational Strategies • Persist in getting ideas to market • Put people in small project teams • Reward innovative personnel • Promote innovative personnel

19. Fostering an Intrapreneurship Culture Operational Strategies • Encourage action • Reduce rigid procedure and bureaucratic red tape • Encourage informal communication and meetings

20. Fostering an Intrapreneurship Culture • Flatten corporate structure • Retrain manager as coach, teacher and mentor • Encourage experimentation, without penalties • Eliminate authoritarian management, replace with flexibility

21. Benefits of Intrapreneurship

22. Benefits of Intrapreneurship • Increased ability of company to compete effectively in local and international markets • Development of new products, services, processes and administrative processes • Expansion and growth of company

23. Benefits of Intrapreneurship • Financial success • Image & reputation that attracts the best people • Development of a creative work force, able to withstand competition

24. Benefits of Intrapreneurship • Promotes climate conducive to high achievers • Retention of best/motivated staff • Low staff turnover

25. Rewarding Intrapreneurship

26. Rewarding Intrapreneurship • Promote and give autonomy • Give recognition and awards to intrapreneurial employees • Create & give leadership responsibility for new divisions • Offer ownership to best workers-stock options, profit-sharing etc.

27. CLASS ACTIVITY Read the following cases/articles: • Studies in Entrepreneurship – 3M • Southwest Airlines: positively Outrageous Leadership

28. Reflections on the lesson Discuss: • How did the company create an Intrapreneurial Environment • What benefits did the company receive (for creating intrapreneuial culture) • How did the company reward Intrapreneurship

29. Reflections on the lesson Discuss: • What steps would you take to further promote Intrapreneurship at your place of work or at an organization with which you are familiar?

30. Creativity and business

31. Entrepreneurial Success • Achieved by - creating value in the marketplace through the process of combining resources in new & different ways to achieve a competitive edge over rivals • Applying creativity & innovation to solve problems & exploit opportunities is the secret for creating value in the marketplace

32. Creativity in Business • Is the ability to develop new ideas & discover new ways of looking at problems & opportunities.

33. CREATIVITY – IMPORTANT INGREDIENT IN ENTREPRENEURSHIP • WHAT IS CREATIVITY • A way of thinking about everything • Openness to change • Willing to try new things • Persistence in seeking possibilities • Open to brainstorming ideas • Dedication to doing it better • Thinking about what you see and hear

34. CREATIVITY • Generating something from nothing – The light bulb • Elaborating on the present – the keyboard • Putting old things together in new ways – The innovative vacuum cleaner or southern fried chicken • Taking something away to create something simpler or better – the jitterbug cell phone for elderly people

35. CREATIVITY – Questions to Spur the Imagination • Is there a new way to do it? • Can you adapt it? • Can you give it a new twist? • Can ideas be combined? • Can we put it to other uses? • What else could we make from this? • Are there other markets for it?

36. CREATIVITY – Concepts • Divergent vs. Convergent Thinking • Divergent thinking: • The ability to find as many possible answers to a particular problem e.g. Brainstorming, or from mathematics; partition and factorization • Convergent thinking: • The ability to find the best answer to a single problem e.g. Logical reasoning, or from Mathematics; addition, subtraction, multiplication and division

37. CREATIVITY Paradigm • A worldview, a mental model, a preconceived idea of what the world is, what it should be like and how it should operate. • To improve within a paradigm – adjust the fringes of what’s known. • To move between or change paradigms – change the foundations of knowledge and beliefs. Significant breakthroughs occur here!

38. CREATIVITY • Paradigm • Can block creative thinking

39. CREATIVITY • Entrepreneurs must always guard against traditional assumptions and perspectives about how things ought to be.

40. READ THE FOLLOWING ALOUD Past experience shapes the way we perceive the world around us. ONCE IN A A LIFETIME BIRD IN THE THE HAND PARIS IN THE THE SPRING TIME

41. CREATIVITY – IMPORTANT INGREDIENT IN ENTREPRENEURSHIP What do you see? The goblet or the famous twins

42. CREATIVITY – IMPORTANT INGREDIENT IN ENTREPRENEURSHIP Describe the lady you see in this drawing. How old is she, how attractive, what covering is on her head etc.

43. CREATIVITY • Entrepreneurs are able to throw off these shackles on creativity and see opportunities for creating viable businesses where most people see what they’ve always seen (or worse yet, they see nothing). Do you see Jesus in this picture?

44. CREATIVITY – CAN IT BE LEARNT • Research shows that almost anyone can learn to be creative • The brain has two hemispheres • The Left hemisphere • Responsible for logical thinking • The right hemisphere • Responsible for creative thinking

45. CREATIVITY • The right brain hemisphere • Responsible for creative thinking • Right brain thinking • Always asks “is there a better way” • Challenges custom routine & tradition • Is reflective, often seen staring out windows deep in thought • Play mental games- trying to see issues from a different perspective

46. CREATIVITY • The right brain hemisphere • Responsible for creative thinking • Right brain thinking (cont’d) • Realize that there may be more than one “right answer” • Uses seemingly unrelated ideas to develop innovative solutions to problems • Has the ability to rise above the daily routine to see an issue from a broader perspective then come back to focus on a problem area needing change.

47. LIMITERS OF INDIVIDUAL CREATIVITY • Searching for & recognizing only one right answer to a problem • Focusing on being logical all the time • Blindly following the rules • Constantly being practical • Viewing play as a frivolous waste of time • Avoiding ambiguity • Fearing looking foolish • Fearing mistakes and failure • Believing that “I’m not creative”

48. The Creative Process • Preparation • Read widely, develop an open mind, ideas come from cross fertilization of concepts in diverse fields

49. The Creative Process • Investigation • Study the problem & understand its basic components

50. The Creative Process • Transformation • Analyze; break the problem apart, identify similarities & differences in data collected