marvin ryder assistant professor, marketing & entrepreneurship
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MBA P715 Entrepreneurship Week 2. Marvin Ryder Assistant Professor, Marketing & Entrepreneurship. Psychological Triggers for Entrepreneurship. 1)Need for control – my hours, my location Seems to be disproportionately important: - PowerPoint PPT PresentationTRANSCRIPT
Psychological Triggers for Entrepreneurship1) Need for control – my hours, my location
Seems 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 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, 1997
The Genesis of Entrepreneurship
EntrepreneurPerception 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 Takeover 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/Directive
Decision-making Centralized/no delegation
Impulsive/little conscious planning
Operating and strategic decisions have equal importance
Time Horizon Short – one day, one week, one month
Power Close to the entrepreneur
Workplace climate Highly uncertain/poor information flows
Corporate Structure
Lack of formal organization chart
“Spider web” structure
Infrastructure Lack control & information systems
Few standard procedures & rules
Large horizontal span of control