Entrepreneurship Practice Model

Practice of Entrepreneurship

• Distinction exists between enterprise ownership and entrepreneurship.
• Key elements include Systematic Innovation, Change-Oriented Management, Opportunity-Focused Strategies, and Empowering Leadership.
• These elements interact and collectively define the practice of entrepreneurship.

Systematic Innovation

• Systematic innovation involves a deliberate search for innovative opportunities from both internal and external environments.
• It emphasizes organized analysis of changes that can lead to economic or social innovations.
• Monitoring of sources for innovation includes unexpected successes and failures, incongruities, process needs, and industry structure changes.
• Gbeja identifies four internal sources of innovation:
  • Unexpected outcomes
  • Incongruities between perceived and actual realities
  • Innovations driven by process needs
  • Sudden changes in market structures
• Three external sources include demographics, shifts in perception and meaning, and new knowledge.
• Reliability and predictability of sources vary, with unexpected successes being the most reliable.

Change-Oriented Management

• Change-oriented management refers to policies that must be established within entrepreneurial organizations.
• Requires a distinct management style that embraces systematic and purposeful approaches.
• Drucker posits that entrepreneurial principles apply universally, regardless of the organization type, whether large or small, public or private.
• In Nigeria, entrepreneurial management often lacks effective policies fostering an innovative culture.
• An entrepreneurial climate sees innovation as an opportunity, not a threat, urging managers to seek new ideas actively.

Opportunity-Focused Strategies

• Opportunity-focused strategies outline specific approaches for addressing external environments.
• Key strategies identified by Drucker include:
  • Creative imitation
  • Entrepreneurial judo
  • Ecological niches
  • Adapting to changing values and characteristics
• These strategies, while distinct, share intersecting principles and face unique limitations.

Empowering Leadership

• Empowering leadership is crucial for fostering an entrepreneurial mindset among employees.
• These four core elements of entrepreneurship should be internalized by individuals to cultivate entrepreneurial behaviors.
• Leadership plays a pivotal role in creating an environment conducive to innovation and autonomy within both public and private enterprises.

Learn about the practice of entrepreneurship, including systematic innovation, change-oriented management, opportunity-focused strategies, and empowering leadership. Understand the key elements of entrepreneurial practice and how they relate to each other.