marvin ryder assistant professor, marketing & entrepreneurship mba p715 entrepreneurship week 2
DESCRIPTION
Psychological Triggers for Entrepreneurship - Continued 4)Need for money – earn more money, keep more of what one earns for others 5)Need to exploit an opportunity – take advantage of something that others are missing 6)Need for status/achievement – be an example to others, continue a family tradition Note: many entrepreneurs face life-long battles with low self-esteem – Entrepreneur’s paradox Source: Doss, Mazzarol, Volery – Triggers and Barriers Affecting Entrepreneurial Intentionality, 1997TRANSCRIPT
Marvin RyderAssistant Professor, Marketing & Entrepreneurship
MBA P715Entrepreneurship
Week 2
Psychological Triggers for Entrepreneurship1) Need for control – my hours, my locationSeems to be disproportionately important:
Middle child; moved frequently; rebellious, impulsive; perceived rejection by others; difficulty with authority
2) Need for creativity – realize a dream, use my talents, do something interesting
3) Need for employment – no job opportunities to match perceived skill set
Psychological Triggers for Entrepreneurship - Continued4) Need for money – earn more money, keep more
of what one earns for others5) Need to exploit an opportunity – take
advantage of something that others are missing
6) Need for status/achievement – be an example to others, continue a family tradition
Note: many entrepreneurs face life-long battles with low self-esteem – Entrepreneur’s paradox
Source: Doss, Mazzarol, Volery – Triggers and Barriers Affecting Entrepreneurial Intentionality, 1997
The Genesis of Entrepreneurship
Entrepreneur Perception ofOpportunity
ConsumerDemand
IndustryStructure
EnvironmentalTrends
VentureCreation
Window ofOpportunity
Barriers: 1) Lack of personal or financial capital 2) Compliance costs – taxes, fees, training 3) “Hard” reality – start-up too difficult, too much risk,
window too small
Types of Business Start-ups Product innovators – Hewlett-Packard, Ron Popeil,
Bill Gates Solo, self-employed entrepreneurs – plumber, consultant Resource exploiters – real estate developer, mining company Economy-of-scale exploiter – discount or big box store Workplace/workforce support – temp agency, machine shop Takover artists – buy a company and grow it – John Y. Brown and KFC Capital aggregators – T. Boone Pickens, Ross Perot,
Warren Buffett Market speculators Franchise entrepreneurs
Entrepreneurial Work EnvironmentLeadership Style Autocratic/DirectiveDecision-making Centralized/no delegation
Impulsive/little conscious planningOperating and strategic decisions have equal importance
Time Horizon Short – one day, one week, one monthPower Close to the entrepreneurWorkplace climate Highly uncertain/poor information flowsCorporate Structure
Lack of formal organization chart“Spider web” structure
Infrastructure Lack control & information systemsFew standard procedures & rulesLarge horizontal span of control