Session09 corporate andsocialentrepreneurship


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  • Session09 corporate andsocialentrepreneurship

    1. 1. Session 9. Corporate and Social Entrepreneurship Prof. Dr. Bernhard Katzy Winter 2011
    2. 2. Entrepreneurship Prof. Dr. Bernhard Katzy 14/03/2011 Entrepreneurship and Opportunity Recognition Transformation and Entrepreneurship Theories of Entrepreneurship Corporate and Social Entrepreneurship Entrepreneurship
    3. 3. An overview <ul><li>Quick Test </li></ul><ul><li>Corporate Entrepreneurship </li></ul><ul><li>Social Entrepreneurship </li></ul><ul><li>Entire Course Summary </li></ul><ul><li>PRESENTATION OUTLINE </li></ul>Prof. Dr. Bernhard Katzy 14/03/2011
    4. 4. Reading engagement <ul><li>2 questions 10 minutes </li></ul><ul><li>QUICK TEST </li></ul>Prof. Dr. Bernhard Katzy 14/03/2011
    5. 5. Corporate Entrepreneurship/1 Introduction <ul><li>Theoretical routes - Stevenson and Jarillo (1990) </li></ul><ul><li>Different names given to entrepreneurship within existing organizations : </li></ul><ul><li>corporate entrepreneurship (Burgelman, 1984; Hornsby, Kuratko and Zahra, 2002; Stopford and Baden-Fuller, 1994) </li></ul><ul><li>intrapreneurship (Antoncic and Hisrich, 1999; Carrier, 1994; Pinchot, 1985) </li></ul><ul><li>internal corporate entrepreneu rship (Jones and Butler, 1992; Lumpkin and Dess, 1996) </li></ul><ul><li>entrepreneurial management (Stevenson and Jarillo, 1990) </li></ul>Prof. Dr. B. Katzy 14/03/2011 Synonyms for Corporate Entrepreneurship
    6. 6. Corporate Entrepreneurship/2 Definition <ul><li>“ An application of entrepreneurial principles within organizations” </li></ul>Prof. Dr. B. Katzy 14/03/2011
    7. 7. Corporate Entrepreneurship/3 Instruments <ul><li>Corporate entrepreneurship is a management style </li></ul><ul><li>Conditions for pursuit </li></ul><ul><ul><ul><ul><ul><li>hyper-competition (D’Aveni, 1997) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>high dynamics </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Instruments </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>corporate venture capital </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>project offices in tech & consulting companies </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>human resource department for creativity </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>incubators </li></ul></ul></ul></ul></ul>Prof. Dr. B. Katzy 14/03/2011
    8. 8. Corporate Entrepreneurship/3 Pursuit of CE <ul><li>Entrepreneurial companies have to manage inside their organizations: </li></ul><ul><li>the market for ideas ( going from resource allocation to resource attraction ) </li></ul><ul><li>the market for capital ( giving funding for nontraditional opportunities to those passionate about them ) </li></ul><ul><li>the market for talents ( giving the employees the opportunity to move around in the company and work on the projects that are interesting to them ) </li></ul>Prof. Dr. B. Katzy 14/03/2011 [Hamel, 1999]
    9. 9. Corporate Entrepreneurship/4 Examples <ul><li>Cultivate ideas internally </li></ul><ul><li>Utilize the power of creativity </li></ul><ul><li>20% of time to work on the projects that interest employees </li></ul><ul><li>Teams self form around the best ideas </li></ul><ul><li>Market-based principles guarantee that the best ideas get funding </li></ul>Prof. Dr. B. Katzy 14/03/2011 Management style o f [ ]
    10. 10. Social Entrepreneurship/1 Definition <ul><li>“ No better text for a history of entrepreneurship could be found </li></ul><ul><li>than the creation of the modern university, and especially the </li></ul><ul><li>modern American university” </li></ul><ul><li> </li></ul><ul><li> [P. Drucker in Innovation and Entrepreneurship, 1985] </li></ul>Prof. Dr. B. Katzy 14/03/2011 Definition
    11. 11. Social Entrepreneurship/1 Definition <ul><li>“ Social entrepreneurship is an entrepreneurship for social impact and value” </li></ul><ul><li>Still </li></ul><ul><ul><ul><ul><ul><li>innovation </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>opportunity discovery </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>risk and uncertainty </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>alertness and arbitrage </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>judgmental decisions </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>remain </li></ul></ul></ul></ul></ul>Prof. Dr. B. Katzy 14/03/2011
    12. 12. Social Entrepreneurship/2 Social entrepreneurs <ul><li>Social entrepreneurs: </li></ul><ul><li>Create social value </li></ul><ul><li>Innovate for society </li></ul><ul><li>Recognize the fact that there is something ‘wrong ’ in their society and it needs to be changed </li></ul><ul><li>Solve real-life problems on a society-wide scale </li></ul><ul><li>Radically change their communities, society and the world </li></ul>Prof. Dr. B. Katzy 14/03/2011
    13. 13. Social Entrepreneurship/3 Impact <ul><li>2009 USA </li></ul><ul><ul><ul><ul><li>volunteers dedicated nearly 8.1 billion hours to volunteer service </li></ul></ul></ul></ul><ul><ul><ul><ul><li>dollar value of this service was app. $169 billion (using the 2009 Independent Sector valuation of $20.85 per hour) </li></ul></ul></ul></ul>Prof. Dr. B. Katzy 14/03/2011 []
    14. 14. <ul><li>Why </li></ul><ul><li>The Academy aims to promote social innovation through entrepreneurial thinking and action. </li></ul><ul><li>How </li></ul><ul><li>The already existing activities in the field of social entrepreneurship should be bundled and on that basis reach new target groups through joint activities with other formats. </li></ul><ul><li>By what </li></ul><ul><li>Three areas &quot;Motivation & Training&quot;, “Start-up support”, and “Network & Partners&quot; </li></ul>Social Entrepreneurship/4 Examples Prof. Dr. B. Katzy 14/03/2011
    15. 15. Social Entrepreneurship/4 Examples Prof. Dr. B. Katzy 14/03/2011 Areas of the SE-Academy – Overview Development of project ideas for marketable & sustainable concepts Motivation & Training Start-up Support Networks <ul><li>Certificate Programme &quot;Social innovation“ </li></ul><ul><li>Targeted workshops </li></ul><ul><li>Establishment and development of a community with a focus on &quot;social innovation” </li></ul><ul><li>Partnerships </li></ul><ul><li>Idea scouting </li></ul><ul><li>Start-up advice at all stages </li></ul><ul><li>Mentoring by external superviso rs </li></ul>Profitable exchange of all target groups Knowledge & expertise   transfer
    16. 16. Social Entrepreneurship/4 Examples <ul><li>Aims: </li></ul><ul><ul><ul><ul><li>Enhance healthcare </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Reduce extreme poverty </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Expand educational opportunities and access to IT </li></ul></ul></ul></ul>Prof. Dr. B. Katzy 14/03/2011 []
    17. 17. <ul><li>System of solidarity lending </li></ul><ul><li>Values embodied in Sixteen Decisions </li></ul><ul><li>No legal instrument between borrows and Grameen Bank, the system operates on trust </li></ul><ul><li>Grameen Bank Data Series 2007-2009 (Million USD) </li></ul>Social Entrepreneurship/4 Examples Prof. Dr. B. Katzy 14/03/2011 [] Performance Indicator 2007 2008 2009 Cumulative Disbursement (All Loans) 6685.51 7591.32 8741.86 Housing Loan Disbursement During the Year 1.4 2.21 2.43 Total Deposits (Balance) 756.61 933.89 1200.49 Number of Members 7411229 7670203 7970616 Percentage of Female Members 97 97 97 Number of Villages covered 80678 83566 83458 Number of Branches 2481 2539 2562 Profit/Loss (For the Year) 1.56 18.99 5.38
    18. 18. Course summary <ul><li>Innovation Management: </li></ul><ul><li>Introduction to Innovation </li></ul><ul><li>Basic Innovation Concepts </li></ul><ul><li>Organization of Innovation </li></ul><ul><li>Innovation System </li></ul><ul><li>Governance of Innovation </li></ul><ul><li>Entrepreneurship: </li></ul><ul><li>Theories of Entrepreneurship </li></ul><ul><li>Opportunity Recognition and Creation Theory </li></ul><ul><li>Entrepreneurship and Transformation </li></ul><ul><li>Corporate and Social Entrepreneurship </li></ul>Prof. Dr. B. Katzy 14/03/2011 Topics covered
    19. 19. Feedback <ul><li>Please provide your overall feedback about the course “Innovation </li></ul><ul><li>Management & Entrepreneurship” </li></ul><ul><li>what you liked </li></ul><ul><li>what can be improved </li></ul><ul><li>your impression about the course assignments </li></ul>Prof. Dr. B. Katzy 14/03/2011
    20. 20. Papers referred to in this lecture <ul><li>Antoncic, B. and Hisrich R.D. (1999). Intrapreneurship: construct refinement and cross-cultural validation. Journal of Business Venturing , 16, 495–527. </li></ul><ul><li>Burgelman, R.A. (1984). Designs for corporate entrepreneurship in established firms. California Management Review , 26,154–166. </li></ul><ul><li>Carrier, C. (1994). Intrapreneurship in large firms and SMEs: a comparative study. International Small Business Journal , 12, 54–61. </li></ul><ul><li>D’Aveni, R. (1997). Waking up to the new era of hypercompetition. The Washington Quarterly , 21 (1), 183–195. </li></ul><ul><li>Drucker, P. (1985). Innovations and entrepreneurship . New York: Harper & Row. </li></ul><ul><li>Hamel, G. (1999). “Bringing Silicon Valley inside”. Harvard Business Review , September-October, 70-84. </li></ul><ul><li>Hornsby, J.S., Kuratko, D.F. and Zahra, S.A. (2002). Middle managers perception of the internal environment for corporate entrepreneurship: assessing a measurement scale. Journal of Business Venturing , 17, 253–273. </li></ul><ul><li>Jones, G.R. and Butler, J.E. (1992). Managing internal corporate entrepreneurship: an agency theory perspective. Journal of Management, 18, 733-749. </li></ul><ul><li>Lumpkin, G.T. and Dess, G.G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review , 21, 135–172. </li></ul><ul><li>Pinchot, G. (1985). Intrapreneuring: Why you don’t have to leave the corporation to become an entrepreneur. New Your: Harper and Row. </li></ul><ul><li>Stevenson, H.H. and Jarillo, J.C. (1990) A paradigm of entrepreneurship: entrepreneurial management, Strategic Management Journal , Special issue, 11, 17–27. </li></ul><ul><li>Stopford, J.M. and Baden-Fuller, C.W.F. (1994). Creating corporate entrepreneurship. Strategic Management Journal , 15, 521-536. </li></ul>Prof. Dr. Bernhard Katzy 14/03/2011