This report is about entrepreneurship importance in all sizes businesses as the entrepreneur and intrapreneur role in management and innovation process. It describes the similarities and differences between being an entrepreneur and intrapreneur. As well this report presents a lot of examples how people decided to make them own business and how they were improving them first ideas with the entrepreneurship knowledge. It shows that is very important not just to be brave to take a risk and a challenge, but as well to make sure that entrepreneur's innovated product or service will be produced in the right place at the right time.
The report is trying to achieve the most important points of being successful entrepreneur/intrapreneur in a business. A lot of researches and analysis has been done to show and explain how it all works in a real life with real people. All evidence for this report were taken from many websites and books about successful businesses with explanations how those entrepreneurs or business owners got an idea to start business in that specific way and how they became so successful. Some of these people are used in this report as examples to show that there is nothing impossible in these days world that a human could not do.
Entrepreneurship, the Entrepreneur
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The terms 'entrepreneurship' and 'entrepreneur' are used very often today. Entrepreneurship is the process of creating something new of value by devoting the necessary time and effort, assuming the accompanying financial, physic and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence (Hisrich and Peters, 2002). It is seen as very important for world's economic growth and people social lives. The entrepreneur plays a key role in this game. This person as well can be called an agent of change. Creativity and innovation are two the most important points for the successful entrepreneur. He does not have to invent bicycle again, he has to change it so that it works better of fulfils a different need. As an example of successful entrepreneur can be used Michelle Mone, because she left school at age 15 with no qualifications to find full-time employment to help her father to pay all house bills and by the time she reached at age 20 she was already senior manager at Labatt Brewers, running the sales and marketing team. She decided that she will invent the more comfortable, more innovative, more attractive and more cleavage enhancing bra than any other on the market, and MJM International was already set up in November 1996 (Michelle Mone, nd).
Another very good example is Guy Schanschieff. He set up a nappy laundry service in 1992. He travelled across India and Australia with his idea for business. It was worse, when he tried to sell the service at antenatal classes. As he said "You might as well have stepped off a space ship. People thought you were mad". To succeed he needed to change his tack fast. His son was delivering clean nappies and collecting the dirty ones every week for five years but it was not profitable at all. So when a former costumer started her own business selling reusable nappies, but then changed her mind, Schanschieff moved quickly. He bought the business, Bambino Mio, was up and running by 1997. They got great deals for products making with American firms as Woolworths, but however later they had to start to make them on themselves. In 2003, Bambino Mio hit £1m in sales, as the company started selling overseas. Soon they began moving into Eastern Europe and Asia, and the products were selling very well. Turning over £3m, Bambino Mio now has 42 distributors in 60 countries worldwide. It will even be launching in China shortly (Money Week, nd).
Intrapreneur's meaning is "a person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk and innovation" (Intrapreneur, nd). Basically it means that intrapreneur is a human who sets up new products and services and present them to others as company owners. The main job of intrapreneur is to turn that special idea or project into a profitable experiment for the business. They are used by companies that are in need something new and profitable, that is why in these days a lot of small and large businesses are trying to make working environment, where employee would feel free to show them own ideas and would get an opportunity to become an intrapreneur . A great example of being intrapreneur is Terry Leahy. Aside from employment at Tesco as a shelf-stacker while a teenager, Leahy began his career with the company as a marketing trainee in 1979. After few years great job, he became a marketing director. Soon he was even promoted to a board-level position in marketing. Under Leahy's leadership Tesco adopted two new stores as Tesco Metro and Tesco Express. He made striking changes in the company: to build on the strengths of the home market, to sell non-food items, to offer banking and financial services, and to expand internationally. These key points impacted each other very profitably. Tesco's international operations expanded after Leahy became chief executive. The supermarket chains in Poland, Hungary, the Czech Republic, Slovakia, France, Thailand, Taiwan, Malaysia, and South Korea, Turkey, etc. In 2004 Tesco operated more than 440 stores in Europe and Asia, for a total of more than 2,300 stores worldwide. Under Leahy, Tesco's sales more than doubled between 1997 and 2004 (Reference for business, nd).
Differences between an entrepreneur and an owner-manager
Always on Time
Marked to Standard
People used to think that an entrepreneur and an owner-manager are in very common meaning, but in reality these terms mean completely different things. Entrepreneur is creative and innovative person, who has an idea and know the way how to make profit from it. He is not afraid of challenges or risks.
Owner-manager wants to make it safe. Usually he is using models of what is already done with lower risk.
Entrepreneur understands that he does not have to know everything about everything. He is just thinking that the person has to know where to look for information when he needs it. Entrepreneur is tending to work smarter instead of working harder. Owner-manager is more likely to believe that the formal education is they main key to success.
This table shows the biggest differences between small business owner (owner-manager) and entrepreneurs:
Objectives Â & Views
Small Business Owner
1. Primary Motivation
To Make a Living
To Make a Change and Impact
2. Personal Financial Goal
Exit Value of Company
3. Career Objective
4. Financing Strategy
SBA or Bank Loans
5. Business Strategy
Creating More Sales
6. View of Assets
Real Estate and Inventory
Employees & Customers
7. Risk Taking Profile
Willing To Fail
8. Employee Compensation
Market Rate or Below
Will Pay for Top Talent
9. Work Environment
Extension of Owner's Home
Fast Paced and Growth Focused
10. Investment Profile
Main Investor/Owner of Company
Investor/Involvement in Different Businesses
11. Daily Actions
Day to Day Manager
Strategy, Growth and Collaboration
12. Work Style
Long-Term and Enjoys Repetitive Tasks
Short-Term and a Serial Innovator/Inventor
(Biztech Day, 2011)
What makes a person to start their own business?
Usually a person to start new business motivates an idea to earn more money and to become a business-person. It can be called an opportunity to become rich and well-known person. Often that person, who decided to start new business, is not afraid of any risks, because he knows that any kind of businesses are kind of risky, so a business-person must be common with risks.
"IndependenceÂ is also another one reason why many decide to take the plunge into entrepreneurialism, and is also founded out of opportunity. For many, the freedom to make their own decisions in order to advance their own ideas is the greatest reason forÂ starting a business."( Amitabh Shukla, 2011)
What makes a person to start their own business?
Realization of profit
Lara Morganas analysis using "The Big Five" theoretical model
"The Big Five" theoretical model has been used to analyse an entrepreneur Lara Morgan.
Openness: Loran Morgan grown up and lived with all her family in Hong Kong, but because all her childhood she was traveling halfway round the world to school in Scotland, she became very independent and open person in early age. At the age of 18 years, she could not go to university, because her father declared a bankrupt, so she was studying the art of sales and at the age of 21 she was already managing a Yellow Pages team in 6 countries.
Conscientiousness: At the age of 23, she started her first business - Pacific Direct Ltd, which was manufacturing and selling toiletries and amenities to the hotel industry.
Extroversion: Loran Morgan got her passion for business and enterprise from her parents. As she is saying: "my parents being wonderful 'leaders by example' all attributed to my understanding of business today" (Lara Morgan, nd).
Agreeableness: She is very passionate about leadership, business growth, self and employee motivation. In 2005, when Lara Morgan achieved her first £1m profit, she celebrated it with her staff taking them to Barbados on all-expenses paid holidays.
Neuroticism: Lara Morgan all the time believed in success. She is thinking that a person, who wants to be successful in business, must keep trying all the time.
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This report stated that entrepreneurs, intrapreneurs and owner-managers are essentially important for world's economic growth. Without entrepreneurs and intrapreneurs costumers would not have such a big choice in markets and shops and the economic would dye. Every person who feels a passion for creativity, innovation and business can become a successful entrepreneur or intrapreneur. There is no need to have a huge capital in the beginning, because people, used as examples in this report, proved that if a person is passion about what he is doing, he can do everything in this world, the most important thing is just to believe to success.
Small Business Management and Entrepreneurship Stokes & Wilson 6th edition p33
Entrepreneurship Stokes, Wilson & Mador 2010 p94
Small Business Management and Entrepreneurship Stokes & Wilson 6th edition p44-46
Writing this assignment enriched my learning very much, because I found myself that I was not very good in researching for information and analysing it before. Now I feel more free to take a book and quick analyse what is it about and what would I need to use from it.
During my hard work, I noticed the big difference between entrepreneur and intrapreneur, because earlier they meant the same for me. Because of this reason I was afraid to start to write this assignment, but today I can strongly express my opinion about each other and discuss which one I would prefer to be.
This report as well started me to think who am I going to be in my life: an entrepreneur or a business owner? I found a lot of interesting and useful information about each other and it helps me to think about all my strengths and weaknesses in both positions. I think that the most helped me my chose examples, as these people proved me how everything is possible if only you really want it.
Writing this my first assignment for university made me feel stronger in studies and showed me that all of us, especially young people with high ambitious, should be keen in learning new things, because only hard working and learning something new every time, makes a person intelligent and interesting for others.