Entreprenerial behaviour.pptx

Entrepreneurial Behaviour Entrepreneurship and Culture Definition of culture Human culture can be described, however loosely, as a set of commonly held beliefs, attitudes, dispositions and modes of behaviour. The enduring set of values of a nation, a region, or an organisation...

Entrepreneurial Behaviour Entrepreneurship and Culture Definition of culture Human culture can be described, however loosely, as a set of commonly held beliefs, attitudes, dispositions and modes of behaviour. The enduring set of values of a nation, a region, or an organisation (George and Zahra, 2002) The collective programming of the mind, which distinguishes the members of one human group from another…. Culture, in this sense, includes systems of values; and values are among the building blocks of culture. (Hofstede) Entrepreneurship and national culture Culture has a profound influence on the entrepreneurial capacity of a society Societies usually do not have homogeneous cultural setting. Loucks (1981) - entrepreneurship is culture embedded, and therefore researchers on the entrepreneurship should be more interested in the cultural distinctions of the entrepreneurship phenomena, and differences in how values, beliefs, attitudes, shared norms and particularity of conditions, influence what they do. Davidsson and Wiklund (1995) - the most obvious source of the variations in the levels of entrepreneurship, are cultural values and cultural context Morrison (1998) - significant relationship between entrepreneurship and cultural specificity, and if discipline of entrepreneurship has to flourish, researchers should search more about the differences, rather than concentrating on similarities. Thomas and Muller ( 2000) - the potential for and frequency of entrepreneurship has been shown to be associated with the occurrence of certain culture specific variable Hofstede’s Cultural constructs Individualism extent to which people are concerned with their own well being and that of their immediate family Power distance extent to which the less powerful members of society accept that power is distributed unequally. Masculinity extent to which the dominant social values are achievement and success Uncertainty avoidance extent to which people feel threatened by uncertainty Hofstede’s Findings Societies, which score high on individualism and low on the power dimension, have a higher economic growth and a greater tendency to innovate. High individualism combined with the low power distance and weak uncertainty avoidance would encourage pro-innovative culture and entrepreneurship. Thomas and Muller (2000) - as cultures become less individualistic and more collectivist, people are more likely to identify with the group to which they belong, diminishing the degree of control that they feel over their environments, but not necessarily diminishing their entrepreneurial propensity Entrepreneurship and Organization culture Trompenaars and Woolliams (2003) model of organisational culture is based on two main dimensions one represents how egalitarian or hierarchical a culture is the other represents to which extent the culture is oriented towards the person or towards the task. Mapping culture according to this two dimensions produces four culture types, the incubator, the guided missile, the family and the Eiffel tower. Two of these culture types, the incubator and the guided missile have strong links with many aspects of entrepreneurship. Defining Entrepreneurship Johnson (2001) describes an entrepreneur as an individual who takes agency and initiative who assumes responsibility and ownership for making things happen is both open to and able to create novelty manages the risks attached to the process has the persistence to see things through to some identified end-point, even when faced with obstacles and difficulties. Entrepreneurship and Organization culture cont… Johnson sees some kind of attitude and behaviour as a requirement for entrepreneurship. The incubator: individual’s self-realization, commitment to oneself and professional recognition, are all key goals person-oriented culture -low degree of centralization and formalization which are both important for entrepreneurship. The guided missile also has strong relationship with entrepreneurship task-oriented culture, with a low degree of centralization and in its ideal type is task and project-oriented Organisational relationships are very results oriented, based on rational considerations and limited to the specific functional aspects of the people involved. Key goals are achievement and effectiveness and rank above the demands of authority, procedures, or people. Denison Model shows some evidence for the links between organizational culture and entrepreneurship focuses on the effect of organisational culture on organizational effectiveness and performance. divides organisational cultures into four dimensions and they are further divided into three sub-dimensions Denison Model Involvement empowerment, team orientation and capability development Consistency core values, agreement, and coordination and integration. Adaptability creating change, customer focus and organizational learning. Mission vision, strategic direction and intent, and goals and objectives. Firms performance and entrepreneurial orientation Some research shows a strong link between firm performance and entrepreneurial orientation Chow (2006) In terms of organizational characteristics, entrepreneurial orientation shows significant negative correlation with ownership type, firm age, firm size and environment. Non-state owned, smaller and younger firms tend to be associated with a higher level of entrepreneurial orientation Montes and Verdu Jover (2006) Organisational learning and innovation, driven by entrepreneurship, are positively related to organizational performance. Organizational innovation and organizational learning jointly promote organizational entrepreneurship and increase competitive advantage. The research shows the need for strengthening different strategic capabilities to achieve an adequate level of both organisational issues and thus improving performance and encouraging entrepreneurship. Exploring 9 Types Of Entrepreneurial Behavior 1. Unafraid of failure There is no better teacher than failure, and a common trait among entrepreneurs is that they are uncommonly unafraid to learn. Risk takers learn things that those who like to color inside the lines don’t. Notably, they learn how to pick themselves back up when they stumble; a valuable trait for anyone to have, but especially important for entrepreneurs. Starting and running a small business is tough, and no matter how much research you do beforehand, you’ll eventually come to a point where the only way to see if your business dream will work is to jump in and find out. 2. Happy to work hard When you start a business, you can proudly tell your buddies that you’re the founder and CEO. That’s the upside. The downside is, you’ll also get to tell them you’re the head of maintenance, accountant, CMO, legal counsel, security chief, HR director, payroll manager, conflict resolution specialist, secretary, and, in some cases, mom or dad. Running a business is a lot of hard work. However, if you’re working hard at something you love, to carve out the kind of life you want to lead, does it really seem like work? Exploring 9 Types Of Entrepreneurial Behavior cont.. 4. Brave Entrepreneurs will be forced to stand up for themselves against a lot of bullies. Banks, government officials, rivals, and lawyers will all try to push you around and tell you what you can and cannot do. If you’re afraid of them and their tough talk, you may end up folding up shop and running, or never setting up shop in the first place. True, an entrepreneur will seek counsel and learn applicable laws and regulations. After all, there is a difference between taking risks and breaking laws. And, there is a difference between bending to the conservative advice of others and fighting for your beliefs. All of the entrepreneurs that I’ve ever known aren’t afraid to stand up for what they believe in. 5. Lifelong learner Many entrepreneurs do what they know. They feel they can do it better than it’s ever been done before, so they set out to prove to the world they can. But it’s not the work they know that makes being an entrepreneur difficult. It’s the work they must learn to make the business survive. Stuff like having to learn payroll, navigate IRS business forms , pick up on accounting basics, and HR, and taxes, and on and on it goes, until the weight of all this new, diverse learning can be overwhelming. Some people hear that they’ll be in charge of all of this, and they run screaming in the other direction. Some hear they’ll be in charge of this, and they can’t wait to give it a try. Entrepreneurs learn a lot of things out of necessity, organize their time well, and find connections between it all. Exploring 9 Types Of Entrepreneurial Behavior cont.. 6. Great communicator You do not have to give the State of the Union address, but you should be able to give the state of your company in a way that all applicable business parties can understand. For the sake of full transparency, you should know that this was the hardest thing for me to learn. In fact, if you ask my marketing department, I’m still learning this! When I first started out, I got so nervous about public speaking that, if requested to give a eulogy, I’d rather be the guy in the casket than the one speaking next to it! But I knew that if my business was going to be a success, I had to be able to explain how my business model worked, inspire others with it, and motivate others to invest their time, money, and sweat into it. It took a very long time for me to grow at this, but I’m now a competent writer, and instead of disappearing into my shell, I can speak to large groups about my current business plans and past business successes. 7. Inquisitive Even when a speaker says they won’t be taking any questions, I raise my hand. I might even follow them off the stage or out of the building to get the answers I need. I thought this particular trait was unique to me, but after years of networking with entrepreneurs, I realize it’s common. Entrepreneurs are hungry for information and always have questions. That’s a good thing because there are so many unknowns when you start a business. Many of them can be resolved by searching the sea of entrepreneur stories already out there. Other questions will require subject matter experts to look at a specific situation and make a judgment call. The bottom line is, there will always be more to find out, which suits people who always have more questions quite well. Exploring 9 Types Of Entrepreneurial Behavior cont.. 8. Networker The age old saying of “it’s not what you know, it’s who you know” definitely applies when running a small business. If you are good at making friends and influencing people, you’ll have an easier time of it should you choose to be an entrepreneur. As competitive as business can be, many business people still search each other out to form bonds of mutual need and friendship. If you can make contacts and see how one person's problem might be another's solution, you’ll be a natural networker and entrepreneur. For example, maybe you know that a space is opening up soon in your building, and the landlord is anxious to find a new tenant. So you introduce the landlord to a colleague who is looking to expand his workspace. Your landlord’s problem might be your colleague’s solution —and you are the master networker who put the solution in motion. 9. Passionate This is the big one. It’s the one that makes all the frustration that can come with running a business feel like a walk in the park. You can be every single thing on this list, but if you’re not passionate about what you do, it won't be enough. You’ll quit, burn out, or walk away. Starting your own business, being an entrepreneur—they are lifestyle choices. You shouldn’t do it just for the money. There needs to be more than cash to get you through all the challenges and sacrifices. Instead, you should start a business because you are passionate about that specific business—what starting it can do for you, your life, and your family. And, if you are doing what you love, and you are good at it, the money will come in time.