Chapter 1 – Entrepreneurial Management
• An entrepreneur is someone who conceives of new or improved goods or services and
exhibits the initiative to develop that idea by making plans and mobilizing the necessary
resources to convert the idea into reality
• Entrepreneurs can implement changes within existing organizations and create entirely
new ones, potentially fostering whole new industries and ways of doing things.
Three reasons why people become entrepreneurs
• The recipe for entrepreneurial success has two main ingredients:
1) an opportunity for a new product or service that creates value for society, and
2) an organizational plan that identifies and facilitates assembling the necessary
resources to pursue the opportunity
3) In addition to the above, entrepreneurship requires a third factor: a motivated
entrepreneur. Once a study found that the three main reasons that motivate
entrepreneurs to start a new business are relevant to our discussion of the FBL,
TBL, and SET approaches to management.
• According to the entrepreneurs in this study, perhaps unexpectedly, financial gain is
only the third most important reason for starting a new business
• The most important reason entrepreneurs identify for starting their business is related
to their desire for autonomy and better work
• The second-most important reason entrepreneurs identify for starting their new
business is to address challenges and pursue opportunities that are related to a SET
approach
The study does not include founders of non-profit organizations or other social enterprises,
which are entrepreneurial organizations created intentionally and specifically to pursue a
social or environmental wellbeing mission
,Types of Entrepreneurs
1) the scope of their ambition
2) their propensity to start multiple new organizations
3) their desire to work within existing organizations
Scope
• Some entrepreneurs, called growth-oriented entrepreneurs, are distinguished by a
strong and clear intention to grow a new organization into a large and influential force
in their industry
• Micropreneurs seek to develop successful and viable organizations, but not large
ones; they do not include size in their definition of success
• One common approach to becoming a micropreneur is to purchase a franchise.
Franchising involves a franchisor selling a franchisee a complete package to set up
an organization, including such things as using its trademark and trade name, its
products and services, its ingredients, its technology and machinery, as well as its
management and standard operating systems
• Scope or ambition refers to how large the entrepreneur intends for the new
organization to grow; it does not refer to which of the three management approaches
is used
,Multiplicity
• Another characteristic that helps to differentiate among entrepreneurs is their
propensity to start multiple organizations
• Many entrepreneurs are monopreneurs who start a viable organization in order to
manage it for the rest of their career
• Other entrepreneurs, however, find more satisfaction in starting new organizations
than in managing them indefinitely. Serial entrepreneurs start many organizations
Launch Point
• The final characteristic that distinguishes entrepreneurs is whether they create a new
organization or work within an existing one
• When we think of entrepreneurs, we usually think of the classic entrepreneur, who
starts an entirely new organization to pursue a new product or service idea
• However, many new ideas, products, and services are launched from within existing
organizations. Such ventures are started by intrapreneurs, persons who exhibit
entrepreneurship within an existing organization.
Many new products or services created by organizations, as well as spin-off and
subsidiary firms, are the result of intrapreneurship
All types of entrepreneurs must address all 4 functions of management.
Entreprenerurial Start-up plan: Identifies an entrepreneurial opportunity and describes a
detailed management plan for acting on that opportunity.
, MGMT Intro to Business Management
Chapter 2
• An entrepreneur is someone who conceives of new or improved goods or services and
exhibits the initiative to develop that idea by making plans and mobilizing the necessary
resources to convert the idea into reality
• Entrepreneurs can implement changes within existing organizations and create entirely
new ones, potentially fostering whole new industries and ways of doing things.
Three reasons why people become entrepreneurs
• The recipe for entrepreneurial success has two main ingredients:
1) an opportunity for a new product or service that creates value for society, and
2) an organizational plan that identifies and facilitates assembling the necessary
resources to pursue the opportunity
3) In addition to the above, entrepreneurship requires a third factor: a motivated
entrepreneur. Once a study found that the three main reasons that motivate
entrepreneurs to start a new business are relevant to our discussion of the FBL,
TBL, and SET approaches to management.
• According to the entrepreneurs in this study, perhaps unexpectedly, financial gain is
only the third most important reason for starting a new business
• The most important reason entrepreneurs identify for starting their business is related
to their desire for autonomy and better work
• The second-most important reason entrepreneurs identify for starting their new
business is to address challenges and pursue opportunities that are related to a SET
approach
The study does not include founders of non-profit organizations or other social enterprises,
which are entrepreneurial organizations created intentionally and specifically to pursue a
social or environmental wellbeing mission
,Types of Entrepreneurs
1) the scope of their ambition
2) their propensity to start multiple new organizations
3) their desire to work within existing organizations
Scope
• Some entrepreneurs, called growth-oriented entrepreneurs, are distinguished by a
strong and clear intention to grow a new organization into a large and influential force
in their industry
• Micropreneurs seek to develop successful and viable organizations, but not large
ones; they do not include size in their definition of success
• One common approach to becoming a micropreneur is to purchase a franchise.
Franchising involves a franchisor selling a franchisee a complete package to set up
an organization, including such things as using its trademark and trade name, its
products and services, its ingredients, its technology and machinery, as well as its
management and standard operating systems
• Scope or ambition refers to how large the entrepreneur intends for the new
organization to grow; it does not refer to which of the three management approaches
is used
,Multiplicity
• Another characteristic that helps to differentiate among entrepreneurs is their
propensity to start multiple organizations
• Many entrepreneurs are monopreneurs who start a viable organization in order to
manage it for the rest of their career
• Other entrepreneurs, however, find more satisfaction in starting new organizations
than in managing them indefinitely. Serial entrepreneurs start many organizations
Launch Point
• The final characteristic that distinguishes entrepreneurs is whether they create a new
organization or work within an existing one
• When we think of entrepreneurs, we usually think of the classic entrepreneur, who
starts an entirely new organization to pursue a new product or service idea
• However, many new ideas, products, and services are launched from within existing
organizations. Such ventures are started by intrapreneurs, persons who exhibit
entrepreneurship within an existing organization.
Many new products or services created by organizations, as well as spin-off and
subsidiary firms, are the result of intrapreneurship
All types of entrepreneurs must address all 4 functions of management.
Entreprenerurial Start-up plan: Identifies an entrepreneurial opportunity and describes a
detailed management plan for acting on that opportunity.
, MGMT Intro to Business Management
Chapter 2
