Personal resource bases of entrepreneurship

Fahim akhtar

Bases of entrepreneurship

• Resources • Personal resources

Personal resource bases

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

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-takingRisk 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.

Risk-taking

• Be a risk taker motivational

Locus of controlA person with an internal locus of control believes that he or she can influence events and their outcomes, while someone with an external locus of control blames outside forces for everything. This concept was brought to light in the 1950's by Julian Rotter.

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• 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

Situational characteristics• Perception of desirability• Perception of feasibility

Perception of desirability

• Culture, family, peer• Glassman Jewish family

Perception of feasibility

Women entrepreneurs • Personal difference• Organizational differences• Environmental differences

Process model• Strategic orientation• Commitment to the opportunity• Commitment of resources• Control of resources• Management structure• Reward philosophy

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).

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 scare • Resources needs commitment in right time

and right price

Management structure

Reward philosophy