Chapter-2-Types-of-Entrepreneurship

Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,All Rights Reserved,Fundamentals of Entrepreneurship,Oxford Fajar Sdn.Bhd.(008974-T),2013,1,*,CHAPTER,2,TYPES OF,ENTREPRENEURSHIP,Objectives,The objectives of this chapter are to:,disseminate and intensify knowledge on the different types of entrepreneurship and entrepreneurs,differentiate the differences based on entrepreneurial activities as well as the functions assumed by the entrepreneurs,Learning Outcomes,At the end of this chapter,students should be able to,:,classify the types of entrepreneurship and entrepreneurs into proper context without any difficulty,differentiate and articulate the different types of entrepreneurship and entrepreneurs that exist in the current entrepreneurship literature,explain the differentiating factors based on the respective entrepreneurial activities and functions of the entrepreneurs.,Introduction,Entrepreneurial activities in the form of producing goods and services for human needs,selling,trading or exchanging of goods were in existence since time immemorial.,Presently,entrepreneurship development is recognized as an important catalyst that can spur economic growth and prosperity especially in the countries that practise free market economy.,Introduction(cont.),Entrepreneurship by definition is a process of identifying the opportunity,converting the opportunity into marketable products or services using creative and innovative means and through the process creates value and wealth to the society.,Entrepreneurs are individuals who undertake entrepreneurial process.,Entrepreneurship versus Entrepreneur,Entrepreneurship refers to an entrepreneurial process while entrepreneur is the individual that executes the process.,Entrepreneurship entity or groupings can be categorized based on the type of entrepreneurial activities being carried out.,The entrepreneurship process may comprise several entrepreneurial activities which might differ from one organization to the other.,Types of entrepreneurs are best described in terms of their motives and their functions as entrepreneurs.,Types of Entrepreneurship,Corporate Entrepreneurship,Corporate entrepreneurship refers to the entrepreneurial activities carried out in large corporations.,Large companies have to continually expand and diversify their entrepreneurial activities in order to sustain its existence by creating new products or services to their customers.,Corporate Entrepreneurship(cont.),The introduction of entrepreneurial culture and process can be seen as an effort to,instigate renewal or innovation in the organization(Sharma&Chrisman,1999),explore research,take calculated risks and invest in new promising areas,create a working environment that can tolerate experimentation,uncertainty,risk and failures,Private or Independent Entrepreneurship,Private or independent entrepreneurship refers to:,the entrepreneurial activities of private or independent firms where the entrepreneurship process is most prevalent,The entrepreneurship process begins with,the identification of business opportunity,setting-up of the business entity,growing the business to a higher level,planning for the harvest strategy,The majority of the small and medium-sized enterprises in this country belong to this kind of entrepreneurship.,Independent entrepreneurship contributes to the nations economy in terms of providing jobs and value added initiatives.,Private or Independent Entrepreneurship(cont.),Intrapreneurship,Intrapreneurship can be defined as:,an innovative corporate management strategy that encourages employees within an organization to create new product ideasif employees ideas are approved,management will finance research and development of the product while sharing an equitable partnership arrangement with the employee,Intrapreneurship scheme allows and encourages entrepreneurial activities within the corporation or institution,Social Entrepreneurship,Social entrepreneurship refers to the entrepreneurial activities carried out by social enterprises,NGOs and charitable organizations.,The process involves recognition of a social problem and the application of the entrepreneurial approach to organize,create and manage a venture to achieve the social objectives or social ROI(return on investment).,Example of economic based social entrepreneurship project is the Grahmeen Bank in Bangladesh whose objective is to provide easy and cheap credit to poor women who are involved in micro business.,Other examples of societies and clubs are Students in Free Enterprise(SIFE),Society for the World Wild Life Protection(WWF),Society for welfare and aid for unfortunate groups like orphans,Palestinians,aborigines,urban and rural poor,There are also societies formed to cater to specific interests like the Malaysian Nature Society,Environmental Protection Society of Malaysia and Amnesty International for protection of human rights.,Social Entrepren