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    MGT 368 Lecture 4 - Corporate Entrepreneurship

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    The document discusses different types of entrepreneurship including small business, scalable startups, social entrepreneurship, and corporate entrepreneurship. It defines corporate entrepreneurship as developing new ideas and opportunities within large companies to improve profits and competitive position. The document also examines why corporate entrepreneurship is important, characteristics of an entrepreneurial environment, and challenges of corporate entrepreneurship.

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    MGT 368 Lecture 4 - Corporate Entrepreneurship

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    The document discusses different types of entrepreneurship including small business, scalable startups, social entrepreneurship, and corporate entrepreneurship. It defines corporate entrepreneurship as developing new ideas and opportunities within large companies to improve profits and competitive position. The document also examines why corporate entrepreneurship is important, characteristics of an entrepreneurial environment, and challenges of corporate entrepreneurship.

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    The document discusses different types of entrepreneurship including small business, scalable startups, social entrepreneurship, and corporate entrepreneurship. It defines corporate entrepreneurship as developing new ideas and opportunities within large companies to improve profits and competitive position. The document also examines why corporate entrepreneurship is important, characteristics of an entrepreneurial environment, and challenges of corporate entrepreneurship.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views23 pages

    MGT 368 Lecture 4 - Corporate Entrepreneurship

    Uploaded by

    abir hasan
    The document discusses different types of entrepreneurship including small business, scalable startups, social entrepreneurship, and corporate entrepreneurship. It defines corporate entrepreneurship as developing new ideas and opportunities within large companies to improve profits and competitive position. The document also examines why corporate entrepreneurship is important, characteristics of an entrepreneurial environment, and challenges of corporate entrepreneurship.

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    of 23

    MGT 368 Entrepreneurship

    Chapter 4:
    Corporate Entrepreneurship

    - MD Asif Hossain
    Topic for today

     Types of Entrepreneurship Businesses


     Corporate Entrepreneurship Definition
     Why Corporate Entrepreneurship are
    important/their Problems
     Corporate Entrepreneurship Environment
    Types of Entrepreneurship Business

     1. Small Business Entrepreneurship


     2. Scalable Startup Entrepreneurship
     3. Social Entrepreneurship

     4. Corporate Entrepreneurship

    Source: (Hoffman &


    Casnocha, 2012)
    https://www.youtube.com/watch?v=P_s_NdTNIqU
    Start-up Vs SMEs

     Startup is the determination to  SMEs is more structured


    grow quickly in a competitive
     SMEs are often paced at a
    industry using all of the
    slower growth rate and usually
    innovation
    work with a known formula
     The minds behind a startup are proven to be reliable.
    looking to explode onto the
    scene
     Being unique & being different
    is the key idea behind a startup
    company and they typically build
    on experience as they grow

    Source: Brighterbox.com [2021]


    1. Small Business Entrepreneurship

     Definition: Small Business includes grocery stores, Hairdressers, travel


    agents, storefront, bKash agents. They are anyone who runs his/her
    own business.
     They usually hire local employee/family and make a small profit.
     Their Definition of success- feed the family, live a happy life.
     SMEs accounts for 90.91 % of total business in Bangladesh
    (BSCIC,2009)
    2. Scalable Startup Entrepreneurship

     These are companies which take an innovative idea/vision and turn it


    into large profit by attracting big investments.
     They do so by taking away market share from competitors or creating a
    new market.
     From day one, they have the vision of changing the market.
     They hire the best and brightest.
     A lot of these companies are technological/app based. Thus, when they
    take off, and they are getting attention from unlimited customers, they
    are able to increase profit without incurring significant cost.
     Example: Facebook, Airbnb, even Uber.

    Source: Blank & Dorf, 2012


    3. Social Entrepreneurship

     Definition: Social entrepreneurs are innovators who


    focus on creating products and services that solve
    social needs and problems.
     Their goal is to make the world a better place, not
    take away market share or profit.
     Example: Grameen Bank
    4. Corporate Entrepreneurship

     Definition 1: Development of new ideas and opportunities within


    large or established businesses, directly leading to the improvement
    of organizational profitability and enhancement of competitive
    position or the strategic renewal of an existing business.
     Definition 2: Corporate Entrepreneurship is a process used to
    develop new businesses, products, services or processes inside of
    an existing organization to create value and generate new revenue
    growth through entrepreneurial thought and action.
    Examples of Corporate Entrepreneurship

    IBM exercises corporate


    entrepreneurship through leadership,
    strategy development and monitoring

    From the inception of Google,


    the company has relied on its
    employees for innovation
    Why Corporate Entrepreneurship is
    Important?
     An innovative idea and fund alone cannot guarantee sustainable
    growth over a long period of time.
     Therefore, you need an environment with resources, experience,
    funds and all necessary tools required to build a framework to
    support innovation and new business growth.
     On Social a level there is an increasing interest in "Doing your own
    thing" and doing it on your own terms.
    Corporate Entrepreneurship- 4 Key
    Elements:
     New Business Venturing
     Innovativeness
     Self-Renewal (Re-designing)
     Proactiveness - (Initiative/Risk-taking)
    Difference in Entrepreneurial and Traditionally
    Managed Firms

    Trial & Error in every stages


    Setting up the Corporate Entrepreneurship
    Environment

     Fostering Environment- Companies are pushing


    towards creating a much better work environment to
    increase efficiency and foster creativity.
     Example: Skitto Office (Sim Card for young people/
    Data focused- Grameen Phone)
    Characteristics of an Entrepreneurial
    Environment
     The organization operates  Has a multidiscipline
    on frontiers of technology teamwork approach
     New ideas are encouraged  Long time horizon
     Trial and error are  Volunteer program
    encouraged  Appropriate reward system
     Failures are allowed  Sponsors and champions
     No opportunity parameters available
     Resources are available and
    accessible
    Problems of Corporate Entrepreneurship

     New corporate ventures are difficult to blend with the


    existing company culture.
     Senior managers are often reluctant in embracing
    innovative ideas.
     Bureaucratic organizational structures present a
    challenge to corporate entrepreneurship.
     Sometimes Lack of freedom
     Lack of long term support from the organization
     Lack of support in terms of resources.
    Need for Leadership Characteristics
    in Successful Corporate Entrepreneurship

     Understands the environment


     Is visionary and flexible
     Creates management options
     Encourages teamwork
     Encourages open discussion
     Builds a coalition of supporters
     Persists
    Learning from Failure

     Individuals who can more quickly recover from the emotions of failure
    can more quickly and effectively learn from the experience and are
    often more motivated to try again.
     Using a dual process model, individuals are able to quickly able to cope
    with negative emotions.

    - Loss Orientation- Moving through the negative emotion through


    friends/family etc.
    - Restoration Orientation- Distracting yourself from current failures.
    Why has there been a shift in moving
    towards Entrepreneurship?
     Setting up a business is easier than ever before
     Technological improvement
     Seeking for independence
     More inspiration around us. (Example, Pathao; Daraz)
     Corporations are investing in sub ventures (Corporate
    Entrepreneurship) to keep their creative and brightest
    people in their organization.

    Entrepreneurship
    Summary
     Types of Entrepreneurship Businesses (Small Business Entrepreneurship,
    Scalable Startup Entrepreneurship, Social Entrepreneurship , Corporate
    Entrepreneurship)
     Start-up vs SME
     Corporate Entrepreneurship Definition
     Difference between Entrepreneurially from
    Traditionally Managed Firms
     Why Corporate Entrepreneurship are important/their Problems
     Corporate Entrepreneurship Environment
     There has been a shift in Entrepreneurship
    ANY QUESTIONS ?
    Further Reading

     https://www.bizjournals.com/bizjournals/how-to/growth-
    strategies/2014/11/4-reasons-why-people-start-their-own-
    businesses.html
     https://www.entrepreneur.com/article/234916
     Chapter 7- Entrepreneurship 10th Edition, Robert D.Hisrich

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