Chapter 7: Global Entrepreneurship and Intrapreneurship PDF

CHAPTER 7 GLOBAL ENTREPRENEURSHIP AND INTRAPRENEURSHIP  Main Focus in this Chapter  CHAPTER 7: COVERAGE Entrepreneurship A versus Intrapreneurship Main Focus in this Chapter  CHAPTER 7: COVERAGE...

CHAPTER 7 GLOBAL ENTREPRENEURSHIP AND INTRAPRENEURSHIP  Main Focus in this Chapter  CHAPTER 7: COVERAGE Entrepreneurship A versus Intrapreneurship Main Focus in this Chapter  CHAPTER 7: COVERAGE Entrepreneurship A versus Intrapreneurship Main Focus The environments of in this Chapter B Entrepreneurship and Intrapreneurship  CHAPTER 7: COVERAGE Entrepreneurship A versus Intrapreneurship Main Focus The environments of in this Chapter B Entrepreneurship and Intrapreneurship Intrapreneurial C environment requisites  Entrepreneurship 01 Versus Intrapreneurship  LESSON OBJECTIVE: 1. Differentiate Entrepreneurship from Intrapreneurship. 2. Distinguish between an Entrepreneur and a small business owner. 3. State and debunk the myths of Entrepreneurship. Creativity and innovation are closely linked as part of a creation process, but they are not the same: Creativity - Is seen in one's ability to solve challenges or problems with novel solution ideas. Creativity cannot be measured and it is subjective. Innovation - Its most basic level, means "new" and is measurable because an innovation is the spontaneous creation of something new a new product, an idea, a process, a method: something out-of-the-box. Creativity and innovation are closely linked as part of a creation process, but they are not the same: Shawn Hunter - The author of Out Think: How Innovative Leaders Drive Exceptional Outcomes, defines creativity as "the capacity of act of conceiving something original or unusual. Shawn Hunter defined innovation as the implementation or creation of something new that has realized value to others. Creativity cannot be measured and is subjective. While the Innovation is measurable and objective. Differentiate Entrepreneurship from Intrapreneurship: Entrepreneurship is concerned with starting new businesses Entrepreneurs art on their own. while Intrapreneurs are working for companies Entrepreneurs do not have a guaranteed monthly paycheck and failure means complete failure and no fall back Entrepreneur is a French word that means to "undertake." Intrapreneurship is a grade/type of entrepreneurship within a given system or entity. Balanced dimensions of the right level assure graded sustainable intrapreneuring (GSI) for optimal output. Distinguish between an Entrepreneur and a small business owner. The entrepreneur, the linchipin of the economy, is an important part of our economic system. Linchpin is a person or thing that holds something together the most important part of a complex situation or system. Entrepreneurs rely on creativity and innovation to a much greater extent than small-business owners. Small business owners typically enter elished het markets, providing a more traditional product or traditional service to a local market. State and debunk the myths of Entrepreneurship There are 8 of myths about entrepreneurship given: 1. Entrepreneurs are born, not made. 2. Entrepreneurs are aggressive risk takers. 3. Entrepreneurs must invent something new. 4. Entrepreneurs make more money. 5. Being first is essential. 6. A good product means a successful business. 7. It takes a lot of money to start a business. 8. Age is a limit 1. Entrepreneurs are born, not made. The most prevalent myth about entrepreneurs is that they are bom, not made. This means entrepreneurship is innate, not learned. that you are bome into a business family and you cerry the genies of an entrepreneur. You cannot study how to be an entrepreneur. This is not true. A person can learn the art of entrepreneurship through hard work, commitment, determination, and strong will. 2. Entrepreneurs are aggressivé risk takers. As we had discussed, thinking that entrepreneurs are aggressive risk takers is far from the truth. They are certainly an adventurous group, but not aggressive risk takers. Most entrepreneurs are more comfortable with managed risk. 3. Entrepreneurs must invent something new. Another common myth about entrepreneurship is that one should have a new and unique invention or idea to start a successful business. However, while something new is beautiful, it is not a requirement to start a new business. Entrepreneurship is all about solving problems and providing an answer to a problem, which nobody thought was possible. 4. Entrepreneurs make more money. True, they do, but not during the early years. The typical entrepreneur eams less than he would earn if working as an employee at the very start of his entrepreneurial endeavor. In fact, most businesses do not make money during their first years of operation, say the first three to five years. 5. Being first is essential. There in a saying that who gets to the market first gain the mos because as the old cliché goes, "the early bird catches the worm. This is what we have studied as the first mover advantage. And while being "first" counts, being fist is not always the best, nor is it essential. Research by Joe Tabet, presented at INSEAD's Global Entrepreneurship Forum has shown that the so-called first mover advantage is a myth: Googls eBay, and Swatch are examples of successful businesses that entered the markets later. 6. A good product means a successful business. A good product is nice, but it is not everything, because, as we have studied, marketing needs 7Ps and product is only one of the seven Relying solely on a good product to make a business successful is not right. 7. It takes a lot of money to start a business. While it is impractical to think that a business can be started with no money, it is also not true that you need a huge amount of money to start your own business. In fact, there are many companies which started their business by simply borrowing or with meager amounts that become successful. 8. Age is a limit. Being young and restless to become a successful entrepreneur is a misconception. There is a long list of successful people to prove that age does not matter. The founder of Kentucky Fried Chicken (KFC,) Harland David Sanders, started his now massively famous company at the age of 62, while Robert Noyce co-founded Intel at the age of 41. According to a Global Entrepreneurship Monitor report, more number of older adults are self-employed, compared to younger people.  The Environments of 02 entrepreneurship and Intrapreneurship  LESSON OBJECTIVE: 1. Describe the environment of entrepreneurship and intrapreneurship. 2. Explain why politics is both a science and an art. 3. Discuss ways political activity can shape entrepreneurial decisions and outlook.  As entrepreneurs are an important part of the economic system, entrepreneurship plays a key role in economic development Environment refers to the surroundings in which a person, animal, or past lives or the conditions under which a business operates. Entrepreneurship Intrapreneurship environment refers to the various facets within which entrepreneurship and intrapreneurship operate and survive. Since intrapreneurships a grade/type of entrepreneurship, what applies to the entrepreneurship environment applies equally as well to the intrapreneurship environment. The characteristics of entrepreneurship are: Vision Drive Hard work Knowledge Conscientious planning Dynamism Positivism and maybe a certain degree of a gambler's instinct for achieving results. An entrepreneur needs a clear perception of the economic opportunities and should have the investment capacity to pursue these opportunities. An environment that will promote entrepreneurship should be developed to tap the talents and skills of would be entrepreneurs. A study of sociopolitical and economic environment has a great social and economic significance to the growth of entrepreneurship. Like our PESTLE analysis, the entrepreneurial environment is influenced by politics, economics, analysis, technology, and law, plus infrastructure. we will combine economics and social as they both affect society. therefore, we will have socioeconomic as on of the aspects of the entrepreneurial environment. POLITICAL Political - The word “politics” comes from the greek word “polis” which means “city state” in the ancient world city-state are small countries regarded as centers of culture and civilization where people interact under a unified government. Politics is the art and science of government It is an art because it involves the process through which the government skillfully addresses the needs of society by carefully allocating benefits,rewards, and penalties. David Easton was referring to when he defirie politics as the "authoritative allocation of values." As a science It is a systematic body of knowledge that deals with the government and the regulation, maintenance and development, and defense and augmentation of the state.  Here are some of the biggest ways that political activity can shape entrepreneurial decisions and outlook: 1. Demographic insights In as much as politicians are put to power by the people. they tend to be reflections of who we are as a people. political change in government or in Congress represents the rise or fall of a particular demography, which could be valuable to an enterprising entrepreneur. 2. Periods of activity or inactivity in legislation The creation, change, or removal of legislation could have a huge impact on businesses, especially for start-ups, which are mostly small entrepreneurial ventures. Economic development opportunities are usually provided by legislation through grants, incentives, or exemptions. Entrepreneurs need to pay attention to what laws are being passed or restructured so that they will know which direction to take.  Here are some of the biggest ways that political activity can shape entrepreneurial decisions and outlook: 3. Fears on new developments Political tumult often leads to fear and fear leads to the rise of new needs. Satisfying these needs may need new which entrepreneurs could take advantage of. In a political era where people feel unsafe, people would be willing to spend money for security. And in an era where they feel silenced and ignored, they may be more likely to invest in products that make them feel seen and heard. 4. Excitement over new developments Similarly, new developments stir people's excitement and their needs may change in different ways. If people believe wages will increase, they may spend more on luxury items, or if they expect the stock market to boom, they may invest in securities. Here are some of the biggest ways that political activity can shape entrepreneurial decisions and outlook: 5. Cultural attitudes and buying decisions Politician's leadership has the potential to shape an entire generation of cultural attitudes and beliefs. They have the power to subtly reshape key demographics and the way an entrepreneur responds to these changes can have an impact on the entrepreneur's overall success. 6. Entrepreneurs need to pay attention to how consumer spending and cultural attitudes evolve and change and respond to these changes; in fact, the entrepreneurs can take these changes as opportunities to Implement their innovative ideas. SOCIO-ECONOMICS Socio-economic means the interaction of social and economic factors. Economic relates to trade, industry, and the creation of wealth. An economic system is an organized way in which a country allocates resources and distributes goods and services across the whole nation, It includes the combination of several institutions, entities, agencies, decision-making processes, and patterns of consumption that make up the economic structure of a specific country. Socioeconomic factors are the social and economic experiences and realities that help mold one's personality, attitudes, and lifestyle. Factors such as health status, income, environment, and education are studied by sociologists in terms of how they each affect human behaviors and circumstances.  Among the socioecoriomic factors that will affect eritrepreneurship are the following 1. Level of education Educational levels influence economic social status an higher paying jobs tend to require advanced or specialized education Other than social status, education gives credit to someone who possesses an education fit for a particular problem. Education also can contribute to deAs such, the level of education of a particular market affects the outcomes of entrepreneurial endeavors in that market. 2. Income and occupation As level of education affect incomes and occupations, incomes and occupations affect one's socioeconomic status. Net income is a direct contributor to what a single person or family can afford to spend; it determines their purchasing power.  Among the socioecoriomic factors that will affect eritrepreneurship are the following 3. Health and lifestyle - Health status is a definite measurerment of socioeconomie status. Because of poor health brought on by genetic predispositions, accidents, or lifestyle choices, a person may be rendered stagnant. Quality of neighborhoods While environment does not have to determine socioeconomic status, it is often a reflection of it. 4. Neighborhood is another leading socioeconomic factor. Neighborhoods are often grouped socially among people with similar incomes and, often, similar backgrounds. There are lower income neighborhood: Middle income neighborhoods High-income neighborhoods. TECNOLOGY Technology advancement leads to efficient use of resources. Industries worldwide has become conscious of the need to use renewable resources and utilize nonrenewable resources within planned limits. Public enterprises are protected from failure by implicit or explicit subsidies and they are expected to create employment opportunities for political reasons. But allowing public enterprises to operate inefficiently will mean very heavy costs in the long run. Remember that capital accumulation is necessary for expanded reproduction. On the private sector side, not only small enterprises, but even big private enterprises have to compete to survive.  LEGAL Developed and developing countries seek to facilitate an environment that motivates entrepreneurs to achieve entrepreneurial success. A major component of this desired environment is the legal environment. For a legal environment to be efficient to support entrepreneurship, it should provide entrepreneurs with rights and protections and it should offer simple legal procedures for start-ups. This legal environment should include strict intellectual property rules and simple business registration procedures. A proper entrepreneurial ecosystem needs to be established by minimizing obstacles that restrain and prevent entrepreneurial engagement  INFRATRUCTURE Infra means "below," so Infrastructure is the "underlying structurer of a country and its economy, the fixed installations that it needs in order to function. These include roads, bridges, dams, the water and sewer systems, railways and subways, airports, and harbors. Certain types of infrastructure have varying influences in different sectors: Particular infrastructure policies can be used to facilitate regional start-up activities and to foster start-up activities in desired industries. A country's infrastructure is very important for entrepreneurs to grow and thrive. company's organizational structure and resources Infrastructure does not simply apply to the physical systems a country has. Van de Ven (1993) says it includes the following: Institutional rrangements to legitimate, regulate, and standardize a new technology. Pulic resource endowments of basic scientific knowledge finanancing mechanisms, and a pool of competent labor. Propritary research and development (R&D), manufacturing, marketing, and distribution functions by private entrepreneurial firms to commercialize the innovation for protid As we have studied.  Intrapreneurial 03 Environment Requisites  LESSON OBJECTIVES: 1. Discus what the intrapreneurial environment requisites are. 2. Exlain how innovation develops nerapreneurial spirit. 3. Elabrate on how the physical environment can spawn intrapreneurship. 4. Elucidate on why top management support is essential in building an intrapreneurial organizational culture. INTRAPRENEURIAL ENVIRONMENT REQUESITES Entrepreneurship works in a wider, bigger environment than intrapreneurship. Entrepreneurships exist in a sector other than the company, industry, country or even international markets. On the other hand, intrapreneurship is concentrated in a single and inside a particular company. For an intrapreneur to succeed, there are requisites to follow: 1. Innovation 2. Originality and experimentation 3. Top management support 4. Availability of resources 5. Teamwork 6. Evaluation and reward 7. Nurture an innovative company culture 1. Innovation Additionally, companies have relied on the research and development department to come up with all the ideas. Today, however, ideas are encouraged and even expected from everyone. People are as innovative as you allow them to be and if you empower your staff to chase their “eureka” moments (moments of sudden, triumphant discovery, inspiration, or insights), you will soon find yourself of everyone’s job descriptions. Workplace innovation needs to be strategic and should be a core part of your company’s culture. Organizational culture refers to the set of philosophies, beliefs, attitudes, and behaviors that members of the organization exhibit, promote, and adopt. Culture is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time and are considered valid no matter what the employee’s responsibilities are, every single one of them should be able to connect the company innovation strategy and his or her job description. An innovative strategy sets out guiding principles for how the company will grow its market share through product and service innovation. And a good strategy helps to clarify what is expected is expected of employees at every level of the company when it comes to problems solving. The physical working environment is just as important as management or leadership when it comes to encouraging innovation. Office design and layout can make a huge difference when it comes to innovation. 2. Originality and experimentation The spirit of intrapreneurship cannot be forced on individuals but should originate. Ideas are “spur of the moment” thing and belongs to no one else but to the person who got the idea. In experimentation, trial and error must be encouraged and failures should not be frown upon. Mistakes and errors are innate in new ideas; that is why people should experiment to alter plans in order to achieve success. 3. Top management support The support and encouragement from top management is critically for intrapreneurial activities to prosper and succeed. Without management support, a successful intrapreneurial environment cannot be created in a company. 4. Availability of resources Progress and success should have the needed resources available. The different Ms of Management- men, money, methods, materials, markets, media, and moment (time)- should be made available to intrapreneurs and should be given the necessary workforce to put plans to effects. And companies need to have budget for innovation. 5. Teamwork The teamwork approach needs to be encouraged for success of intrapreneurial activities in the organization, top management support in this respect would be overwhelming important especially when employees see that their efforts and collaboration are encouraged and supported by the management, the drive to succeed is maximized. 6. Evaluation and reward Success takes a long time. As such, the company should set a longtime horizon for evaluating success of intrapreneurial ideas and activities. More importantly, the company should institute a reward program for rewarding intrapreneurs so that they become more motivated to contribute to the growth of the company. 7. Nurture an innovative company culture Intrapreneurs are creative people who, mostly, work not on the path companies are treading, but outside the company’s comfort zone. They look for an unknown opportunities and markets collecting valuable insights into the competitive landscape. They identify opportunities and threats, which are unseen and might, otherwise, be missed and they exploit them. The intrapreneurs personal drive helps to foster productive and highly engaged teams, develop other employees, and as a result, drive impressive growth for the company. MEMBERS Rona mae Espinosa Ralph vincent Bernales Grazelle Leonoras Lera Joy Abuan CHAPTER 7: GLOBAL ENTEPRENEURSHIP AND INTRAPRENEURSHIP THANK YOU