MBA P715
Entrepreneurship
Week 2
Marvin Ryder
Assistant Professor, Marketing
& Entrepreneurship
Psychological Triggers for
Entrepreneurship
1) Need for control – my hours, my location
Seems to be disproportionately important:
Middle child; moved frequently; rebellious,
impulsive; perceived rejection by others;
difficulty with authority
2) Need for creativity – realize a dream, use my
talents, do something interesting
3) Need for employment – no job opportunities
to match perceived skill set
Psychological Triggers for
Entrepreneurship - Continued
4) Need for money – earn more money, keep more
of what one earns for others
5) Need to exploit an opportunity – take advantage
of something that others are missing
6) Need for status/achievement – be an example to
others, continue a family tradition
Note: many entrepreneurs face life-long battles
with low self-esteem – Entrepreneur’s paradox
Source: Doss, Mazzarol, Volery – Triggers and Barriers Affecting
Entrepreneurial Intentionality, 1997
The Genesis of Entrepreneurship
Industry
Structure
Entrepreneur
Perception of
Opportunity
Consumer
Demand
Venture
Creation
Environmental
Trends
Window of
Opportunity
Barriers: 1) Lack of personal or financial capital
2) Compliance costs – taxes, fees, training
3) “Hard” reality – start-up too difficult, too much risk,
window too small
Types of Business Start-ups
 Product innovators – Hewlett-Packard, Ron Popeil,
Bill Gates
 Solo, self-employed entrepreneurs – plumber, consultant
 Resource exploiters – real estate developer, mining company
 Economy-of-scale exploiter – discount or big box store
 Workplace/workforce support – temp agency, machine shop
 Takover artists – buy a company and grow it – John Y. Brown
and KFC
 Capital aggregators – T. Boone Pickens, Ross Perot,
Warren Buffett
 Market speculators
 Franchise entrepreneurs
Entrepreneurial Work Environment
Leadership Style
Autocratic/Directive
Decision-making
Centralized/no delegation
Impulsive/little conscious planning
Operating and strategic decisions have
equal importance
Time Horizon
Short – one day, one week, one month
Power
Close to the entrepreneur
Workplace climate
Highly uncertain/poor information flows
Corporate Structure
Lack of formal organization chart
“Spider web” structure
Infrastructure
Lack control & information systems
Few standard procedures & rules
Large horizontal span of control