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Entrepreneurs
• Which are you?– There are those that make it happen– There are some that watch it happen– Then there are the others that wonder what
happened
• Entrepreneurs ‘Make it Happen’
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The ‘cave-person’ perspective of entrepreneurship
• Economic growth • Innovation• Limited resources• Other people’s resources
a few thousand years later . . . . . .
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Invention vs Innovation
"An innovation is distinguished from an invention. An innovation brings something new into use, whereas an invention brings something new into being.”
(Rogers, 1962)
“The criteria for success of an invention are technical, whereas for an innovation the criteria are commercial.”
(Burgelman & Sayles, 1986)
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Entrepreneurship
“The carrying out of new combinations we call enterprise; the individuals whose function it is to carry them out we call entrepreneurs.”
Schumpeter 1911
“Entrepreneurship is a process by which individuals – either on their own or inside organizations – pursue opportunities without regard to the resources they currently control.”
Stevenson and Jarillo 1990
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Opportunity Evaluation Roadmap
Entrepreneurship
Exploitation of Opportunities
Innovation
Evaluation of Opportunities
Creativity
Identification of Opportunities
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Pet Rocks – The Invention
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Pet Rocks – The Innovation
• Rock sourcing strategy• Packaging strategy• Marketing strategy• Distribution strategy• Funding strategy• Economic analysis• PROJECTED PROFITS
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Pet Rocks – Entrepreneurship
• Get money• Get rocks• Get packaging made• Get printing done• Get distribution• Get retailers• Get promotion• Etc.
MAKE MORE MONEY
Entrepreneurs make it happen!!
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I havean
idea
E N
T H
U S
I A
S M
It works!
The customerlikes it!
It’s notproprietary
The fieldtrial worked!
Failuresin the field
trial
We haveA fix
It works!
New costsLook great
They need allthe sizes?
The bosshates the
project
No, heloves it!
The marketestimate
was wrong
We have an order!
DeliveriesAre late
We’llmake it
They like it
We needdocumentation
‘Several’ failuresreported
Problems solved
Documentationdone!
We have allthe sizes
…and the approvals
…and inventory
…and orders
Yesit is!
Ref: Thierry Volery 2003
The Entrepreneurship Process
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Idea Productivity
3000
500
100
10
5
Log scale
Raw
Ideas
(unw
ritt
en)
Ideas
Subm
itte
d
Sm
all
Pro
ject
s
Larg
e D
evelo
pm
ents
Majo
r D
evelo
pm
ents
Launch
es
Succ
ess
1Ref: Thierry Volery 2003
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Corporate Entrepreneurship
"Entrepreneurship is studied for a variety of reasons, but the overriding reason for current interest in the topic is the widespread belief that entrepreneurship activity stimulates general economic development as well as the economic performance of individual firms.”
(Covin and Slevin 1991, p. 9)
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Risk vs Uncertainty
“the essence of entrepreneurship involves responsibility for 'uncertainty' - facing un-measurable and unquantifiable risks rather than betting on situations (as in a casino) where the odds have been well established by many prior trials”
Knight (1921)
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Why Corporate Entrepreneurship?
• Most companies don’t survive past 50 years– Demand evolves– Competition develops– They don’t reinvent themselves fast enough
• CE required to evolve and reinvent– Entry to new markets– Creative destruction of existing business
• Research suggests CE associated with– Improved corporate financial performance– Reduced systematic risk
Ref Zahra 1991, Foster & Kaplan 2001
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Types of Corporate Entrepreneurship
• Front-line Entrepreneurship– External Corporate Venturing– Intrapreneuring– Internal Corporate Venturing
• Top-down Entrepreneurship– Strategic Renewal– Cultural Renewal
Ref Covin & Miles 2001, Birskishaw 2004
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Evolution of CE
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Independent vs. Corporate Entrepreneurship
Independent Entrepreneurship
• Key Risk– Business Funding– Personal Funding
• Resource Needs– Funding– Customers– Market Access– Infrastructure
Corporate Entrepreneurship
• Key Risk– Corporate Support– Career
• Resource Needs– Trust– Reputation/Brands– Staff– Knowledge– Contacts
Ref Spring & Gillin 2005
TANGIBLETANGIBLE INTANGIBLEINTANGIBLE
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Corporate Entrepreneurship - Focus
• Corporate Culture– Attitude to risk & uncertainty– Institutional trust– Attitude to failure
• Management of Intangible Assets
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Senior Management, Intangibles & CE
Top-Down Entrepreneurship
Front-Line Entrepreneurship
Strategy Skills Culture Trust
Implementation
Research in progress suggests that management of Intangible Assets is key to CE. Hence…
