personal resource bases of entrepreneurship

Entrepreneurship

Personal Resource Bases of Entrepreneurship

Presented By: Viqar A. Usmani 1

Bases of Entrepreneurship

• Resources

• Personal resources


Resources is a person, an asset, material or capital that can be used to create value.

Types ofResources

Physical Resources

Reputational Resources

Organizational Resources

Financial Resources

Human Resources &Capabilities

Technological Resources &Capabilities


• Tangible in nature, such as machines, buildings.

• These are either man-made or natural.

• Two types of Natural Resources:

• a) Biotic:-Which are obtained from biosphere such as forests, animals, birds etc.

• b) Abiotic:- Which are non-Living in nature such as land, water, air, minerals (gold, iron, copper)

Physical Resources

• Derived from the public perception of our venture that gets recognized by things such as brand, person behind business & values of an entrepreneur.

Reputational Resources

• Approach towards planning, organizing, controlling, and directing business affairs

• Refers to company’s reporting systems, hierarchy, information flow, decision making etc.

Organizational Resources


• Refers to the abilities of a business to generate internal funds and external capital

Financial Resources

• The Knowledge, experience, exposure, trust and talents available within a firm are vital resources for creation of value and competitive advantage.

Human Resources & Capabilities

• These are processes and systems to physically transform resources into products & services

Technological Resources & Capabilities


Personal Resource Bases

Extend the boundaries of resource-based theory to include the cognitive ability of individual and entrepreneurs working

together


The IndividualThe role that individuals play in entrepreneurship is undeniable.

Each person’s psychological, sociological, and demographic

characteristics contribute to or reduce from his or her abilities to

be an entrepreneur.

Personal experience, knowledge, education, and training are the

accumulated human resources that the founder contributes to

the enterprise.

The personal integrity of the entrepreneur and the way the

entrepreneur and the new venture are viewed by others are

captured in the person’s reputation.

The risk profile of the entrepreneur determines the initial

configuration of the venture—for example:

financing, product offerings, and staffing. Presented By: Viqar A. Usmani 7

Although it is common to speak of the individual entrepreneur,

frequently the entrepreneur is not alone.

Entrepreneurs rely on a network of other people, other

businesspeople, and other entrepreneurs.

These contacts are personal resources that help the

entrepreneur to acquire additional resources and start his or her

business.

It is true that “who you know” and “who knows you” are

sometimes very valuable resources in new venture creation.


Psychological approaches to Entrepreneurial Success

• Need for achievement

• Risk-taking

• Locus of control


Need for achievement• Praise and rewards for success

• Association of achievement with positive feelings

• Association of achievement with one's own competence and effort, not luck

• A desire to be effective or challenged

• Intrapersonal Strength

• Desirability

• Feasibility

• Goal Setting Abilities


Risk-taking

Risk is the potential of gaining or losing something of value.

Values (such as physical health, social status, emotional well-being or financial wealth) can be gained or lost when taking risk resulting from a given action or inaction, foreseen or unforeseen.

Risk can also be defined as the intentional interaction with uncertainty.


Locus of control

A person with an

internal locus of control believes that he or she can influenceevents and their outcomes,

external locus of control blames outside forces foreverything.

This concept was brought to light in the 1950's by JulianRotter.


Sociological Approach

• Negative displacement

• Positive pull

• Positive push

• Between things


Negative displacement

• Individual displaced in negative way may become entrepreneurs

• Individuals or groups not fitting in may deliver

• Having no one to depend on, they depend on no one.

• In USA Vietnamese and Korean doing and delivering


Positive pull

• Positive indicators

• Environments, opportunities

• Mentor, teacher, guide

• Mentor raises the self esteem and

confidence


Positive push• Situation that provide impetus and momentum

• Career path

• Industry path

• Knowledge about system,

people and process


Between thingsNational Group 1982 % 1987 %

Korean 6.8 10.2

Asian Indians 6.6 7.6

Japanese 4.9 6.3

Vietnamese 1.5 4.5

Filipino 1.4 2.3

Mexican 1.7 1.9


Between things –(Cont.)


Situational Characteristics

• Perception of desirabilityEntrepreneurship must be seen as desirable if one is to pursue it. The factors that affect the perceptions of desirability can come from the:

individual’s culture, family, peers and colleagues, or mentors.

• Perception of feasibility

Entrepreneurship must be seen as feasible if is to be undertaken. Readiness and desirability are not enough.

Potential entrepreneurs need models and examples of what can be accomplished.

They require support from others— emotional, financial, and physical support.


Women Entrepreneurs


Jehan Ara

Jehan Ara is one of the most famous

name when it comes to Pakistani female

entrepreneurs.

She is the active president and the

mastermind behind PASHA (Pakistan

Software Houses Association).

The company that focuses on IT by

providing software products and services

is the brainchild of Jehan Ara.

An entrepreneur, motivational speaker

and writer Jehan Ara is a known name of

marketing and communication for almost three decades.


Sidra Qasim

Sidra Qasim is a young innovative

entrepreneur who introduced the

handcraft shoes on the internet.

Sidra is the co-founder of home town

Shoes company which is now known as

Markhor.

It is an exceptional portal which sells the

handcrafted shoes of Pakistani craftsmen

to the world. Isn’t that new and creative!?

Sidra Qasim along with partner Qasim Ali

have taken Pakistani handmade leather

shoes for men to the international

markets.

The firm has got enough recognition as Sidra has major buyers from Europe

https://themarkhor.com/Presented By: Viqar A. Usmani 24

Process Model

• Strategic orientation

• Commitment to the opportunity

• Commitment of resources

• Control of resources

• Management structure

• Reward philosophy


Model of entrepreneurial motivation and the entrepreneurship process


Strategic Orientation

Strategic Orientation (SOR) is a specific method to develop strategies.

It is a method based on the analysis of strengths, weaknesses, opportunities and threats (SWOT).


The importance of strategic orientation

Two important conceptions of strategy:

It is an ongoing process of evaluating the firm’s purpose (Miles

and Snow)

Evaluating, questioning, verifying and redefining the

firm’s interactions with its environment

Assumes organizational adaptation to environments

Strategy allows the firm to adapt to dynamic, competitive, and

uncertain environments

Strategic orientations differ in risk disposition,

innovativeness and operational efficiencies

Types: defenders, prospectors, analyzers, reactors


Porter's five forces model defines the relevant components of the environment

These competitive forces work at the industry level

• Existing companies

• Potential new companies

• Substitutes for products offered

• Suppliers and customers

Two adaptations are low cost and differentiation

The goal is to alter the firm’s position in the industry in relation to competitors and suppliers


The importance of strategic orientation


There is also a view of strategy as resource based (Barney)

This involves gathering and making use of resources and developing capabilities that competitors can’t easily imitate

The goal is superior market position

It links the firm closely to its suppliers and customers

Strategic orientation can be an issue of how firms position themselves with respect to competitors

It focuses on the exploitation of firm-specific assets and capabilities.


Commitment to the opportunity

• Exploitable set of circumstances with uncertain outcome, requiring commitment of resources and involving exposure to risk.


Commitment of resources


Control of Resources• Resources are scarce

• Resources needs commitment in right time and right price.


Remarkable performance doesn’t happen by accident.

Whether delivered individually or organizationally, it is always

preceded by commitment.

Think about the connection between commitment and

performance this way:

•Commitment is the price you are willing to pay to get

remarkable results.

•Performance reveals the price you have paid.

A remarkable performance reveals how highly you value (price)

your customer, spouse, child, boss, co-worker, or other goal

(athletics, music, academics, and so on).

•A poor performance reveals how little you value (price) those

same people or goals.

You are making the same choices daily.

Our challenge is to make smart, conscious investments of

commitment; to pay the right price at the right time and place.Presented By: Viqar A. Usmani 35

Management structure


Reward Philosophy


personal resource bases of entrepreneurship

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