GROUP-5TANVI RAJANJALI KUMARIANIRUDH TAKKARRAJ SEKHARCREATING AN ENTREPRENEURIALCULURE IN SUPPORT OF SMEs-ALLAN GIBB
• Enterprise or Entrepreneurial Culture- “set of values,beliefs and attitudes commonly shared in a societywhich underpin the notion of an entrepreneurial ‘ wayof life’ as being desirable and in turn support thepursuit of effective entrepreneurial behavior byindividual or groups”.• For example: In the field of management training anddevelopment to stress the important influence of theorganizational culture in shaping the effectiveness oftraining interventions.Enterprise Culture
An entrepreneurial way of life should be fostered by programmesaimed to stimulate the development of entrepreneurship and smallbusinesses which involves:• Greater freedom in making decisions• Greater control over what is to be done and bear a greaterresponsibility for the results.• Living in a situation where rewards will be linked directly andimmediately to whether the customer buys the service or product.The entrepreneurial ‘way of life’
Overall living each day with greater uncertainty and inability tocontrol the actions of a wide range of stakeholders upon whom thesuccess of a business depend. Working long, irregular hours in order to meet unexpected targets A position where learning happens under pressure from customers ,suppliers, bankers and by the process of solving problems andgenerally ‘learning by doing’ .
Entrepreneur are characterized by:• Opportunity seeking• Opportunity grasping• Proactive in taking initiatives• Take intuitive decisions with limited information.• Managing effective networks• Have commitment.Effective entrepreneurial behavior
• All Entrepreneurs are however not moral or ethicalin their demeanor• Example cited in this article are of the drug mafiaand drug traffickers which in a way extends toblack marketing and all nefarious activities.• So can we say that the above mentionedbehaviors were effective entrepreneurialbehaviors ??• Entrepreneurial behavior to be effective, has to contribute tosocial and economic development of the community.Effective entrepreneurialbehavior
Stakeholders are defined as all those institutionsand individuals who have a direct interface withor may be directly affected by the activities of theSME or the agency. Without deliberate intent they may set rules andregulations which substantially constrain effectiveentrepreneurial behavior. There is little point in developing individualentrepreneurs if their key influences are hostile tothe entrepreneurial way of life.Actors in the stakeholder’senvironment
Most business development agencies operating inthe field of entrepreneurship development claimtheir customers were entrepreneurs ,their supportorganizations like NGO’s, customers, but the mostdemanding customers are the supplier of theresources, donor agencies…the grant giver, thegovernment, the funder organization and so on.. A key issue : Donors‟ „ways of doing things‟ may bein conflict with those of the more informalentrepreneur.Is there a ‘cultural’ problem
• What then are the qualities that are associatedwith entrepreneurs ?Government / Corporate Small Business RealityOrder UntidinessFormal InformalAccountability TrustInformation JudgmentDemarcation OverlapPlanning IntuitionCorporate Strategy Strategic AwarenessControl AutonomyStandards Personal ObservationTransparency AmbiguityPosition OwnershipThe Culture Problem
• Rules and bindings like this exposes thebusiness interest of entrepreneur• They are like the Two poles that seldommeet• The niceties of legal machinery andbureaucratic norms are strong in mostcountries which acts as deterrents.• This more often than not kills business ideasand disillusions entrepreneurs• For instance in India, a Governmentcontract is given to individuals who candeliver at the most economical rates
The rules , the regulations, the bonds deterthe entrepreneur in having relationship withthe donor organizations. Agencies that are tied to this supply sideculture may find that they cannot flexiblyinnovate, make up things and changedirection as they go along.
Adapting to a bureaucratic culture is costlyfor the small firm. The cultural moorings between the twodifferent segments have to be aligned forfostering trust and promoting businessdealings
Developing empathy with entrepreneurial“way of life” Code of moral and ethical conduct Broad Strategic Development Holistic Management Style Strategic Awareness Better understanding Importance of decentralized power structures Importance of decision makingWhat can be done?
Four Keys Strategies are :-• Building an entrepreneurialorganization.• Applying HolisticManagement.• Developing learningpartnerships and circles.• Developing a bottom upapproach.Agency strategies for pursuingthe enterprise culture
• Visible• Politically supported• Facilitator• Offering direct benefits to public• Partnership with key stakeholders• Offering relevant coverage• Operating an entrepreneurial “Know-Who” set ofeffective relationships• Able to convey the achievements of the agency• To be seen as an entrepreneurial organization withinnovative ideasThe Development Agency as aCommunity Entrepreneur
• For developing the “Enterprise Culture” inthe community, the emphasis must beupon creating „learning opportunities‟.• Agency must become a learningorganization by its openness toinvolvement with and learning fromrelevant actors and their stake holdersenvironment• Agencies must know how things work andmust study how relationships can beimprovedThe Agency as Facilitator forEntrepreneurial Learning
• Organizing knowledge around the „need toknow‟ of specific actors & customers.• Building relationship learning between SMEand relevant stakeholders• “The World of Learning” therefore becomesthe “The World of Work” and “Life World" ofthe entrepreneur.
• Enterprise culture is a notion of greatsignificance for small businessdevelopment.• The root is to recognize the Entrepreneur‟sway of life and its implication for theorganizational design of the SME supportsystem.• An effective Entrepreneurial behaviorfocuses on achieving net social andeconomic gain of the society.Conclusion
Partnerships for SME promotion should becreated strategically with the SME‟sstakeholder development in mind. Partnerships with local and national actorsshould be seen as a strategic action for thelong term sustainability.
Enterprise Culture cannot be taught but,in the best of entrepreneurial traditions,become embedded via a process ofexperience