I need a response to 2 peers this week for my New Business Venture and Entrepreneurship

© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. JWI 575 RTC – Week 1 Lecture Notes (1188) Page 1 of 5

JWI 575 New Business Ventures and Entrepreneurship

Week One Lecture Notes

© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. JWI 575 RTC – Week 1 Lecture Notes (1188) Page 2 of 5

ENTREPRENEUR OR INTRAPRENEUR? What it Means Michael Dell, the founder of Dell Technologies, once said, “Ideas are commodity. Execution of them is not.” Lots of enterprising people in the business world have a “big idea”—something that will change the way people conduct business. But getting that idea off the ground is easier said than done.

There are two possible avenues for launching a new business idea. The first is entrepreneurship, where you recognize a particular market need and create a business that satisfies that need. The second is intrapreneurship, where you launch your venture within an existing company. Both types of innovation can be powerful means for achieving your business goals, but each one requires a very different approach.

Why it Matters

• Understanding different types of innovation can show you the best way to launch your big ideas • Intrapreneurship and entrepreneurship involve a fundamentally different level of risk • Assessing how “entrepreneurial” you are ensures the right person is leading the right venture

“When launching something new, you have to go for it – ‘playing not to lose’ can

never be an option.”

Jack Welch

© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. JWI 575 RTC – Week 1 Lecture Notes (1188) Page 3 of 5

COMPARING INTRAPRENEURS AND ENTREPRENEURS

On the surface, the distinction between entrepreneurship and intrapreneurship seems fairly simple. Entrepreneurs create a new business entity; intrapreneurs create a new venture within an existing business. Let’s explore the implications of this distinction in more depth. As you will see, the two approaches to innovation require significantly different innovation styles and personality traits.

Anna Mazzone, Director at the Open Data Institute, defines entrepreneurs as “visionaries who can identify market problems and take the risk to build commercial solutions and get external investors to fund the build and growth of the company.” Entrepreneurs must have the passion and dedication to overcome major challenges as they build, develop, and manage their own new business. They must also have the network and communication skills to find and attract investors and partners to their venture.

Intrapreneurs, on the other hand, do not set up a new business. While they also develop new ideas and launch new products and services, they choose to build their innovative solutions from within a company that already exists. They are creating a new product line or service within an existing business and this gives them the freedom to start small and grow at a pace that works. They do not face the same pressure that entrepreneurs often do, to prove their concept and grow their business quickly, so as to attract the attention of an investor before the founder’s funds run out.

Intrapreneurs and entrepreneurs operate from different vantage points, facing different risks and challenges. While the two types of innovator have many personality traits in common, a key contrast is that they have a very different level of tolerance for risk.

How They Operate

Intrapreneurs work within an existing company culture. They have access to that company’s finances, personnel, and marketing resources. Unlike an entrepreneur, an intrapreneur does not necessarily have to worry about shoring up capital, raw materials, or employees. This makes for a less stressful innovation journey, especially if the firm encourages and supports intrapreneurial ventures. For example, Google famously encourages its employees to devote one fifth of their time to whatever side projects they want.

Entrepreneurs operate independently; there is no larger company to fall back on. Working outside the confines of an organization means that entrepreneurs are responsible for their own resources, especially financing. In fact, the vast majority of new businesses are started with entrepreneurs’ personal savings. Once their project is “off the ground,” funding can come from more varied sources, like venture capital and strategic partnerships. For example, in 2010, when Will Dean and his colleagues founded Tough Mudder, an endurance event company, they poured their last $10,000 into the company’s first event. Today, thanks to steady cash flow and a growing number of sponsorships, Tough Mudder is worth over $100 million.

© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. JWI 575 RTC – Week 1 Lecture Notes (1188) Page 4 of 5

Obstacles and Threats

One of the leading causes of failure among businesses, especially new businesses, is lack of resources. An entrepreneur must ensure they have the money to start their venture and to keep it operating for several years, until it breaks even. For some aspiring ventures, crucial components like vendor relationships and operating systems may have to be created from the ground up. Darío Okrent, head of digital banking at Banco Azteca, puts it bluntly: “When you are an entrepreneur, you have no network. If you fail, you might lose everything.”

An intrapreneur does have some backing from the parent company, and will not lose everything if they fail, but they face significant challenges of a different sort. Since intrapreneurs are working as the employee of a larger company, their biggest risk is related to their credibility and reputation. A poorly executed venture could cost them the goodwill and trust of their employers, and possibly it could cost them their jobs. Savvy intrapreneurs work carefully to build up credibility within their company and they structure development of their new venture so as to demonstrate success through small wins along the way.

Key Personality Traits

Entrepreneurs know how to interact with their environment and their colleagues to create an opportunity. They have the ability to present and promote their ideas in a manner that persuades others to believe in their vision and provide backing and resources. Jack and Suzy tell us that resourcefulness is important, but aspiring entrepreneurs must also be uniquely fearless; they need “cold-blooded courage, crazy passion, and irrational determination” to stand by their idea, even when they hear negative comments from the people around them over and over again. The Founder Institute, an early-stage accelerator program, has carried out personality tests on thousands of entrepreneurs, and has found three recurring traits: high fluid intelligence, a high degree of openness, and a moderate level of agreeableness.

Intrapreneurs, like their entrepreneurial counterparts, are resourceful risk-takers. They must be highly intelligent, creative, and aware of the constraints of the business environment. There are two personality traits, though, that stand out among intrapreneurs. The first trait is mannerliness; Jan Kennedy, CEO of the Academy for Corporate Entrepreneurship, defines this as being “compliant and sometimes pleasing towards other people, even people that you may not even like or don’t sell your vision to.” When you work in a company and have to gain buy-in from other stakeholders, this approach is crucial. The second key trait of an intrapreneur is being a person who operates as a “change catalyst.” Unlike entrepreneurs, who can operate fairly autonomously, intrapreneurs have to find ways to work within their parent company’s corporate culture and mission, while building something new and different. Therefore, they must be able to build consensus across an organization and they must know how to align their own strategy for the new venture with the parent company’s broader strategy.

© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University. JWI 575 RTC – Week 1 Lecture Notes (1188) Page 5 of 5

GETTING THE MOST OUT OF THIS WEEK’S CLASS

As you read the materials and participate in class activities, stay focused on the key learning outcomes for the week:

• Understand the difference between an entrepreneur and an intrapreneur The lessons you learn in this course will be invaluable for helping you actualize your big ideas, but entrepreneurs will apply those lessons differently than intrapreneurs. What unique skills does an entrepreneur need that an intrapreneur might not need? What are some common misconceptions people have about either of these roles? Is it easier to be one or the other? Starting a new business is certainly risky, but being an intrapreneur is risky in its own way.

• Compare generating new ventures within a company with launching a startup business Think about what your company does. How easy do you think it would be to a launch a new venture there? Do some venture ideas “fit better” with creation of a new business? How much freedom does an entrepreneur really have? What differences do you see between the way an entrepreneur comes up with an idea for their new business and the way an intrapreneur designs a new venture for their existing work environment? Are some industries more conducive to budding entrepreneurs than others?

• Assess your own entrepreneurial style and discover your strengths for innovation Jack tells us: “Leaders aren’t just born. They’re made.” Does the same principle hold true for innovators? Can someone learn how to be a successful entrepreneur or intrapreneur? Is there a singular “entrepreneurial style,” or can someone adapt the process of innovation to his or her particular strengths and personality? Based on your own self-assessment, what would you need to do to further develop your strengths for innovation? In what ways do you think that an innovation mindset might help you to advance as a business leader?