Corporate Entrepreneurship/ Intrapreneurship This process leads to the birth of new businesses and to the transformation of companies through a renewal of their key ideas (Guth and Ginsberg. (Stevenson. Corporate Entrepreneurship Corporate Entrepreneurship (CE) is the process by which individuals inside organizations pursue opportunities without regard to the resources they currently control. 1990) . 1999) An entrepreneurial manager links up discrete pieces of new technical knowledge that would provide a solution to a customer problem and matches this technical capability with the satisfaction of a market and garners resources and skills needed to take the venture to the next stage. and Grousbeck.Roberts. . DIFFERENT TYPES OF ENTREPRENEURSHIP? • Entrepreneurial initiatives may emerge & grow from different sources on the basis of which there may be five types of entrepreneurship. . Administrative Entrepreneurship: This is in fact the traditional R& D management approach. Opportunistic Entrepreneurship: Ability to catch at the right time the fruits of the internal as well as external technological developments. Detecting at the very first time the promising innovative achievements and taking opportunity to adopt the same for raising the quality reducing the cost and thus marching ahead of many of the competitors. . It is the joint efforts of both the general management and scientific technical personnel to identify areas for R&D and the development of new products. techniques or the improvement of the existing one.1. 2. • 4.Imitative Entrepreneurship: This stresses the replication or creative imitation of innovative technical achievements made by another farm – done with appropriate modifications and refinements in case protected property rights are involved. These venture development units are intended as incubators for innovative.• 3-Incubative Entrepreneurship: This is nothing but the ability to initiate and nurture new venture developments within the original company with special care. it is innovative imitation and the internalization of externally made technological developments. In essence. high risk business endeavors and for providing an environment that is supportive of entrepreneurial efforts. . An executive characterized this particular approach to internal entrepreneurship as ‘learning from the innovators heartaches and prospering by refinements’. .• 5. diversification through horizontal or vertical integration by gaining access to others technological developments. Acquisitive Entrepreneurship: This is the ability of the internal management /entrepreneurs to acquire competitors’ technical capacities. Acquisitive entrepreneurs make accelerated growth. Corporative New Venture Units . Stage1: Stage2: Stage3: Stage4: Solo phase Network phase Bootleg phase Formal team phase Working informally Corporate support Individual nurtures idea Innovator seeks advice Team proposes idea Provides budget To establish feasible And support form To organization And mandate for team Innovation to Colleagues to For formal To pursue formal develop Develop the idea Development Development And support Of innovation Spontaneous Team . stage1: Stage2: initiation Feasibility development Idea generation by innovator Development team initiates Stage2 with budget Ad hoc team develops And company Preliminary model support Initial proposal Feasibility written Plan developed Corporate review by Committee on product innovation Corporate review by Committee on Product innovation Project approve For stage2 Project With team assigned denied Project And budget denied Approved for stage3 implement . Corporate Entrepreneurship Objectives – Cultivate innovation and creativity within enterprise – Creating an entrepreneurial organisation – Organising around teams – Assessing enterprises as “intelligent organisations” . Characteristics of Corporate Entrepreneurship •New business venturing •Innovativeness •Self renewal •Proactiveness . Components of Corporate Entrepreneurship •Strategic Direction •Initiative from below •Autonomous Business Creation . LIMITATIONS TO CORPORATE ENTREPRENEURSHIP • Entrepreneurs comfort: Entrepreneurs who have created the company must let go so that entrepreneurial managers can operate. (It is about breaking rules which entrepreneurs have created (Young. 1999) • Decision-making control:Balance needed between freedom for the entrepreneurial managers and maintaining the business on a constant strategic path. . ) • Internal politics: Entrepreneurial managers must be able to predict and understand internal resistance to change. 1989) • Rewards: Can the organisation offer the same rewards as those expected by entrepreneurs? (economic. Moves to start own venture? . CONT… (LIMITATIONS TO …. “Thrive on chaos” (Tom Peters. social and developmental). BARRIERS TO CORPORATE ENTREPRENEURSHIP •Resistance to change •The Inherent nature of large organizations •Lack of Entrepreneurial talent •Inappropriate compensation methods .