Entrepreneurial Culture for Entrepreneurship Mcom Sem 3 Delhi University
Entrepreneurial Culture for Entrepreneurship Mcom Sem 3 Delhi University – Culture is a hot buzzword among corporate and entrepreneurial companies alike. It’s what everyone is striving for, what brings on the loyalty, what attracts and keeps the really awesome employees.
Definitions of Entrepreneur :
Different authors have given different definitions of entrepreneur. Some of the main definitions are given below :
(1) American Heritage Dictionary, defines entrepreneur as a person who organises, operates and assumes the risk for a business venture.”
(2) Richard Cantillon, described the entrepreneur an agent buying and selling goods at uncertain prices.”
(3) J.B. Say, defined an entrepreneur as the economic agent who unites all means of production, the labour, the capital or land and earns profit. He has compared entrepreneur with a farmer.”
(4) According to Peter F. Drucker, “Entrepreneurship is neither an art nor a science, it is a process. It is a practice. It has a knowledge base. Knowledge in entrepreneurship is a means to an end. Indeed what constitutes knowledge in practice is largely defined by the ends, that is by the practice.”
(5) A.H. Cole, described, entrepreneurship as the purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or organise a profit oriented business unit for the production or distribution of economic goods and services.”
Entrepreneurial Culture for Entrepreneurship Mcom Sem 3 Delhi University
Entrepreneurship is an important engine of growth in the economy. In this lesson, you’ll learn about what an entrepreneur is and the key characteristics and skills that a successful entrepreneur possesses
Fostering an Entrepreneurial Culture within Your Organization
Entrepreneurial Culture for Entrepreneurship Mcom Sem 3 Delhi University – “entrepreneurial” describes a skill and mind-set characterized by innovation, creativity, calculated risk-taking, and an empowered staff. The term applies to individuals, teams, and entire organizational cultures. An entrepreneurial culture is what many companies hope for. Certainly, in the fast-moving and competitive technology industry, an entrepreneurial culture is what most organizations should strive for. an organizational culture does not grow on its own. It must be nurtured. An organization’s culture must be deliberately cultivated through concerted action including modeling, structure, constant communication, and positive reinforcement.Entrepreneurial Culture for Entrepreneurship
12 Ways to Foster a More Entrepreneurial Culture
1. Hire Aspiring Entrepreneurs
It’s no coincidence that aspiring entrepreneurs are attracted to the startup environment. These types are eager to gain experience and tend to see opportunities in markets or the industry where others don’t. Bring them in, and empower them to flex their entrepreneurial muscles within your organization.
2. Make Employees Feel Like Partners
Give everyone in your company equity, and motivate them to view your company as their company. You really need to believe that everyone at your company is your partner and treat them that way.
3. Empower and Encourage Employees
Empower your employees with more responsibilities, and encourage them to make decisions on their own. Encourage creativity, reward your employees when they make good business decisions and use their mistakes as learning opportunities.
4. Be Open to Micro-failures
I try to create an environment in which employees know that I am open to micro-failures in the macro-pursuit of success. If people are afraid to take risks, then we aren’t going to grow as quickly or smartly as possible. But people don’t always believe that making mistakes is OK. I strive to give them proof that it is, so they can let go of any fears and try new ways of getting the job done.
5. Give Incentives to Employees
What’s in it for them? If they’re proactive, go the extra mile and really impact your company positively — what do they get out of it? Incentives can include raises, bonuses (time off, a paid holiday, etc.), stock options, promotions and even public recognition of one’s efforts.
6. Lead by Example
You need to lead by example, take a few risks, and then let those ideas materialize. In some cases, your risks will fail; you need to show your team that failure is OK. They should embrace it, fail fast and get back on it. The only way your employees will feel like taking risks is if they know that failing will not be looked at in a bad light.
7. Give Employees a Voice
By giving employees voices, listening to their ideas and implementing them, you can encourage a culture of “intrapreneurs.” Seeing that they are an integral part of the company — whether it’s saving money by using a different vendor or creating a new process to streamline production –
8. Make It Safe to Share Ideas
Create a culture where new ideas are welcomed and not shut down. You want every employee to feel like she can make a difference with her idea rather than depend on the founder or management team for the next big idea.
9. Give Employees Ownership
To create a culture of entrepreneurs, you have to give employees ownership of projects and follow their recommendations. We encourage an entrepreneurial mindset by having employees take turns being “Sensei” and leading a professional development training session.
10. Ask Them for Their Recommendation
Nearly all employees can present information; rock stars will prepare a recommendation. When team members bring back information, ask them, “What do you think?” You’ll create a culture of thinking beyond the current step toward next steps and implications.
11. Create a Startup Culture
Entrepreneurial Culture for Entrepreneurship Mcom Sem 3 Delhi University – If you want to have intrapreneurs in your organization, you need to foster an atmosphere of entrepreneurship. This can be done through articles you share with the team, weekly meetings and, most importantly, mentorship. Creating a library of books about entrepreneurship helps as well.
12. Make Hires Draw an Owl
There is a great Internet meme that we use as a hiring philosophy called “How to Draw an Owl.” Step one: Draw two circles. Step two: Draw the rest of the owl. We need people who can self-direct and get things done, even if it isn’t the way we’d ideally do it.
Building an Entrepreneurial Culture
Entrepreneurial Culture for Entrepreneurship Mcom Sem 3 Delhi University – Culture is important for an entrepreneurial venture because it is the mechanism that institutionalizes the values of its founders. Culture serves to socialize new employees. It helps them understand how they should treat the customers, how they should treat each other, how they should act in their jobs, and how to generally fit in and be successful within the business.
If managed properly, culture also improves the performance of the business. Culture is an important part of the overall strategy of the business and helps ensure a growing organization will continue to meet the expectations of customers that were established by the entrepreneur during the early start-up of the venture.
For many businesses their success has been built on the entrepreneurial nature of the business. Since it is important to keep the entrepreneurial nature of the business, as that is what has gotten the business this far, it is important to create a culture of entrepreneurship.
To create an entrepreneurial culture based on four pillars.
- Authenticity — Demonstrate your sincerity by being enthusiastic about entrepreneurial strategies and actions pursued by the business.
- Commitment to People – “An entrepreneurial culture is based on the idea that each individual can be a powerful force for change in the organization,” said Prosek. Support the professional development of your staff, celebrate exceptional work, and don’t forget to have fun.
- Commitment to the Business — Align an individual’s interests with those of the business. “At my firm, we have a program called Commission for Life™,” explains Prosek, “Which encourages new-business generation: Anyone who books a meeting that results in a new client gets 5 percent of the revenue for the life of the business.”
- Continuous Effort — The work of building a company’s culture never ends.
Maintaining Entrepreneurial Culture
Entrepreneurial Culture for Entrepreneurship Mcom Sem 3 Delhi University – Once you have healthy, trusted and informed employees, don’t let the culture that’s evolving just be. It needs to be watched so that it grows as you intended. The trick is standing back, but not too far back. In maintaining your culture, consider these rules.
- Let the team build itself. Within that safe, comfortable, open environment, let employees grow together without being made to.
- Participate without controlling. Let the culture thrive, without your either meddling with it or ignoring it.
- Don’t forget the little things. Culture is made up of many small actions that, when put together, create something larger than the sum of the parts. There are many things a CEO can do to make employees feel a part of the company. Some are just common courtesies: hallway conversations, saying “hello” in the morning, opening doors, asking after people’s families and partners. Others are little extras, such as flowers to say thank you and happy-birthday e-mail messages. Eating lunch with employees, helping spouses find jobs and participating in team events show that you, the CEO, are involved with your employees.
How is cultural entrepreneurship spreading in India?
Entrepreneurial Culture for Entrepreneurship Mcom Sem 3 Delhi University – India has had a few mature, advanced cultural sectors for a while. Film and music were both enthusiastically adopted very soon after Independence and those industries have grown to be world-class. Restaurants were also universally present, along with iconic eateries in every city. The change that we are seeing now is the growth of new cultural sectors: an explosion in publishing, breakthroughs in animation, a revival in comics, a bit of growth in fashion, a slow boil in gaming, and very importantly, a massive influx of recreation spaces which was led by the incredible growth experienced by cafes in the last decade.
How is cultural entrepreneurship different from normal entrepreneurship?
Entrepreneurial Culture for Entrepreneurship Mcom Sem 3 Delhi University – There are many similarities, and one crucial difference. The difference is this: since cultural products deal with the taste of the consumer, there is every possibility they will fail. You just do not have a model to predict success, and the difference between a hit and a flop is so large that you can’t build a proper NPV/ROI calculation. This scares away institutional investors, not because the risk of failure is so much more than, say, internet technology, but because they feel like they cannot predict it, that they don’t have control.