Personal Resource Bases of Entrepreneurship

Entrepreneurship
Personal Resource Bases of
EntrepreneurshipPresented By: Viqar A. Usmani 1

Bases of Entrepreneurship
• Resources
• Personal resources
Presented By: Viqar A. Usmani 2

 Resources is a person, an asset, material or capital that
can be used to create value.
Types of
Resources
Physical Resources
Reputational Resources
Organizational Resources
Financial Resources
Human Resources &
Capabilities
Technological Resources &
Capabilities

• Tangible in nature, such as machines, buildings.
• These are either man-made or natural.
• Two types of Natural Resources:
• a) Biotic:-Which are obtained from biosphere
such as forests, animals, birds etc.
• b) Abiotic:- Which are non-Living in nature such
as land, water, air, minerals (gold, iron, copper)
Physical
Resources
• Derived from the public perception of our
venture that gets recognized by things such as
brand, person behind business & values of an
entrepreneur.
Reputational
Resources
• Approach towards planning, organizing,
controlling, and directing business affairs
• Refers to company’s reporting systems,
hierarchy, information flow, decision making
etc.
Organizational
Resources

• Refers to the abilities of a business to generate
internal funds and external capital
Financial
Resources
• The Knowledge, experience, exposure, trust
and talents available within a firm are vital
resources for creation of value and
competitive advantage.
Human
Resources &
Capabilities
• These are processes and systems to physically
transform resources into products & services
Technological
Resources &
Capabilities

Personal Resource Bases
Extend the boundaries of resource-based
theory to include the cognitive ability of
individual and entrepreneurs working
together

The Individual
The role that individuals play in entrepreneurship is undeniable.
Each person’s psychological, sociological, and demographic
characteristics contribute to or reduce from his or her abilities to
be an entrepreneur.
Personal experience, knowledge, education, and training are the
accumulated human resources that the founder contributes to
the enterprise.
The personal integrity of the entrepreneur and the way the
entrepreneur and the new venture are viewed by others are
captured in the person’s reputation.
The risk profile of the entrepreneur determines the initial
configuration of the venture—for example:
financing, product offerings, and staffing.

Although it is common to speak of the individual entrepreneur,
frequently the entrepreneur is not alone.
Entrepreneurs rely on a network of other people, other
businesspeople, and other entrepreneurs.
These contacts are personal resources that help the
entrepreneur to acquire additional resources and start his or her
business.
It is true that “who you know” and “who knows you” are
sometimes very valuable resources in new venture creation.

Psychological approaches to Entrepreneurial Success
• Need for achievement
• Risk-taking
• Locus of control

Need for achievement
• Praise and rewards for success
• Association of achievement with positive feelings
• Association of achievement with one's own competence
and effort, not luck
• A desire to be effective or challenged
• Intrapersonal Strength
• Desirability
• Feasibility
• Goal Setting Abilities

Risk-taking
Risk is the potential of gaining or losing something of value.
Values (such as physical health, social status, emotional well-being or
financial wealth) can be gained or lost when taking risk resulting from a
given action or inaction, foreseen or unforeseen.
Risk can also be defined as the intentional interaction with uncertainty.

Locus of control
A person with an
internal locus of control believes that he or she can influence
events and their outcomes,
external locus of control blames outside forces for
everything.
This concept was brought to light in the 1950's by Julian
Rotter.

Sociological Approach
• Negative displacement
• Positive pull
• Positive push
• Between things

Negative displacement
• Individual displaced in negative way may become
entrepreneurs
• Individuals or groups not fitting in may deliver
• Having no one to depend on, they depend on no one.
• In USA Vietnamese and Korean doing and delivering

Positive pull
• Positive indicators
• Environments, opportunities
• Mentor, teacher, guide
• Mentor raises the self esteem and
confidence

Positive push
• Situation that provide impetus and momentum
• Career path
• Industry path
• Knowledge about system,
people and process

Between things
National Group 1982 % 1987 %
Korean 6.8 10.2
Asian Indians 6.6 7.6
Japanese 4.9 6.3
Vietnamese 1.5 4.5
Filipino 1.4 2.3
Mexican 1.7 1.9

Between things –(Cont.)

Situational Characteristics
• Perception of desirability
Entrepreneurship must be seen as desirable if one is to pursue it. The
factors that affect the perceptions of desirability can come from the:
individual’s culture, family, peers and colleagues, or mentors.
• Perception of feasibility
Entrepreneurship must be seen as feasible if is to be undertaken.
Readiness and desirability are not enough.
Potential entrepreneurs need models and examples of what can
be accomplished.
They require support from others— emotional, financial, and
physical support.

Women
Entrepreneurs

Jehan Ara
Jehan Ara is one of the most famous
name when it comes to Pakistani female
entrepreneurs.
She is the active president and the
mastermind behind PASHA (Pakistan
Software Houses Association).
The company that focuses on IT by
providing software products and services
is the brainchild of Jehan Ara.
An entrepreneur, motivational speaker
and writer Jehan Ara is a known name of
marketing and communication for almost
three decades.

Sidra Qasim
Sidra Qasim is a young innovative
entrepreneur who introduced the
handcraft shoes on the internet.
Sidra is the co-founder of home town
Shoes company which is now known as
Markhor.
It is an exceptional portal which sells the
handcrafted shoes of Pakistani craftsmen
to the world. Isn’t that new and creative!?
Sidra Qasim along with partner Qasim Ali
have taken Pakistani handmade leather
shoes for men to the international
markets.
The firm has got enough recognition as
Sidra has major buyers from Europe
https://themarkhor.com/

Process Model
• Strategic orientation
• Commitment to the opportunity
• Commitment of resources
• Control of resources
• Management structure
• Reward philosophy

Model of entrepreneurial motivation
and the entrepreneurship process

Strategic Orientation
 Strategic Orientation (SOR) is a specific method to
develop strategies.
 It is a method based on the analysis of strengths,
weaknesses, opportunities and threats (SWOT).

The importance of strategic orientation
Two important conceptions of strategy:
 It is an ongoing process of evaluating the firm’s purpose (Miles
and Snow)
Evaluating, questioning, verifying and redefining the
firm’s interactions with its environment
Assumes organizational adaptation to environments
 Strategy allows the firm to adapt to dynamic, competitive, and
uncertain environments
Strategic orientations differ in risk disposition,
innovativeness and operational efficiencies
Types: defenders, prospectors, analyzers, reactors

Porter's five forces model defines the relevant components of the
environment
These competitive forces work at the industry level
• Existing companies
• Potential new companies
• Substitutes for products offered
• Suppliers and customers
Two adaptations are low cost and differentiation
The goal is to alter the firm’s position in the industry
in relation to competitors and suppliers

The importance of strategic orientation

There is also a view of strategy as resource based (Barney)
This involves gathering and making use of resources
and developing capabilities that competitors can’t easily imitate
The goal is superior market position
It links the firm closely to its suppliers and customers
Strategic orientation can be an issue of how firms position
themselves with respect to competitors
It focuses on the exploitation of firm-specific assets and
capabilities.

Commitment to the opportunity
• Exploitable set of circumstances with
uncertain outcome, requiring commitment
of resources and involving exposure to risk.

Commitment of resources

Control of Resources
• Resources are scarce
• Resources needs commitment in right time
and right price.

Remarkable performance doesn’t happen by accident.
Whether delivered individually or organizationally, it is always
preceded by commitment.
Think about the connection between commitment and
performance this way:
•Commitment is the price you are willing to pay to get
remarkable results.
•Performance reveals the price you have paid.
A remarkable performance reveals how highly you value (price)
your customer, spouse, child, boss, co-worker, or other goal
(athletics, music, academics, and so on).
•A poor performance reveals how little you value (price) those
same people or goals.
You are making the same choices daily.
Our challenge is to make smart, conscious investments of
commitment; to pay the right price at the right time and place.

Management structure

Reward Philosophy

Personal Resource Bases of Entrepreneurship

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