This document discusses the entrepreneurial process and intrapreneurship. It defines the four phases of the entrepreneurial process as identifying and evaluating opportunities, developing a business plan, determining required resources, and managing the enterprise. It also outlines the differences between entrepreneurial and managerial decision making. There is increased interest in intraprepreneurship due to social, cultural, and business pressures for flexibility and growth within organizations. Establishing an intrapreneurial culture and climate within a company involves securing management commitment, identifying supported ideas, using technology, training employees, rewarding performance, and evaluating units.

1. ENTREPRENEUR AND BUSINESS
PLANNING
Chapter 2:
THE ENTREPRENEURIAL AND
INTRAPRENEURIAL MIND
Prepared by:
Prof. SEYED ALI FALLAHCHAY

2. THE ENTREPRENEURIAL PROCESS
The process of starting a new venture is embodied in
the entrepreneurial process, which involves more than
just problem solving in a typical management position.
An entrepreneur must find, evaluate, and develop an
opportunity by overcoming the forces that resist the
creation of something new.

3. Aspects of Entrepreneurial process
The process has four distinct phase:
1) Identification and evaluation of the opportunity
2) development of the business plan,
3) determination of the required resources, and
4) management of the resulting enterprise.

4. Identify and Evaluate the Opportunity
Opportunity Identification and evaluation is a very
difficult task. Most good business opportunities do not
suddenly appear, but rather results from an
entrepreneur’s alertness to possibilities or, in some
cases, the establishment of mechanism that identify
potential opportunities.

5. Steps to identify and evaluate the opportunity
• Opportunity assessment
• Creation and length of opportunity
• Real and perceived value of opportunity
• Risk and returns of opportunity
• Opportunity versus personal skills and goals
• Competitive environment

6. Develop a Business Plan
A good business plan must be developed in order to
exploit the defined opportunity. this is very time-
consuming phase of the entrepreneurial process.
A good business plan is essential to developing the
opportunity and determining the resources required,
obtaining those resources, and successfully managing
the resulting venture.

7. Steps to develop Business Plan
• Title page
• Table of contents
• Executive Summary
• Major Section
• Appendixes
1. Description of Business
2. Description of Industry
3. Technology Plan
4. Marketing Plan
5. Financial Plan
6. Production Plan
7. Organization Plan
8. Operational Plan
9. Summary

8. Determination of the required resources
The resources needed for addressing the opportunity
must also be determined. This process starts with an
appraisal of the entrepreneur’s present resources. Any
resources that are critical need to be differentiated
from those that are just helpful. Care must be taken not
to underestimate the amount and variety of resources
needed. The downside risks associated with insufficient
or inappropriate resources should also be assessed.

9. Steps to Determine Resources Required
• Determine resources needed.
• Determine existing resources.
• Identify resource gaps and available suppliers.
• Develop access to needed resources.

10. Manage the Enterprise
After resources are acquired, the entrepreneur must
use them to implement the business plan. The
operational problems of the growing enterprise must
also be examined. This involves implementing a
management style and structure, as well as
determining the key variables for success. A control
system must be established, so that any problem areas
can be quickly identified and resolved.

11. Steps to Manage the Enterprise
• Develop management style.
• Understand key variables for success.
• Identify problems and potential problems.
• Implement control systems.
• Develop growth strategy.

12. Managerial Vs. Entrepreneurial decision making
Five different dimensions between entrepreneurial decision
making and managerial styles:
• strategic orientation
• commitment to opportunity
• commitment of resources
• control of resources
• management structure
Managerial styles are called the administrative domain.
Administrative domain is the way manager make decisions.

13. CAUSES FOR INTEREST IN
INTRAPRENEURIALSHIP
These differences in entrepreneurial and managerial
domains have contributed toward an increased interest
in intrapreneurship. This interest has intensified due to
a variety of events occurring on social, cultural, and
business levels.
On a social level , there is an increasing interest in
“doing your own thing” and doing it on one’s own
terms. Individuals who believe strongly in their own
talents frequently desire to create something of their
own. They want responsibility and have a strong need
for individual expression and freedom in their work
environment.

14. When this freedom is not there, frustration can cause
that individual to become less productive or even leave
the organization to achieve self-actualization
elsewhere.
The resistance against flexibility, growth, and
diversification can, in part, can be overcome by
developing a spirit of entrepreneurship within the
existing organization, called intrapreneurship. An
increase in intrapreneurship reflects on an increase in
social, cultural, and business pressures.

15. Corporate Vs. Intrapreneurial Culture
Corporate Culture
- is the environment of a particular organization.
Shared values and norms:
• Hierarchical in nature
• Established procedures
• Reporting systems
• Line of authority and responsibility
• Instructions
• Control mechanism.

16. Intrapreneurial culture
- Is the environment of an entrepreneurial-oriented
organization.
Shared values and norms:
• Flat organizational structure with networking
• Team work
• Sponsors
• Mentors abounding
Note: Close-working relationship help to establish an
atmosphere of trust that facilitates the accomplishment
of visions and objectives.

17. Climate for Intrapreneurship
• Organization operates on frontiers of technology
• New ideas encouraged
• Trial and error encouraged
• Failures allowed
• No opportunity parameters – barrier to new product
creation and development
• Resources available and accessible
• Multi-discipline teamwork approach
• Long-time horizon
• Volunteer program
• Appropriate reward system
• Sponsors and champions available
• Support of top management

18. Intrapreneurial Leadership Characteristics
• Understand the environment
• Visionary and flexible
• Creates management options
• Encourages teamwork
• Encourages open discussion
• Build a collision of supporters
• Persists

19. Establishing Intrapreneurship in the Organization
1. To secure a commitment to intrapreneurship in the
organization by top, upper, and middle
management levels.
2. Ideas and general areas that top management are
interested in supporting should be identified, along
with the amount of risk money that is available to
develop the concept further.
3. A company need to use technology to make it more
flexible.
4. The organization should have a group of interested
managers who will train employees as well as share
their experiences.

20. 5. The organization needs to develop ways to get closer to
its customers.
6. An organization that want to become more
intrapreneurial must learn to be more productive with
fewer resources.
7. The organization needs to establish a strong support
structure for intrapreneurialship.
8. Support must also involve trying the rewards to the
performance of the intrapreneurial unit.
9. The organization need to implement an evaluation
system that allows successful intrapreneurial unit to
expand and unsuccessful ones eliminated.
Establishing Intrapreneurship in the Organization