3 Different types of Entrepreneurship

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Lesson 1.3.1: Intrapreneurship

Transcript

As you may have noticed over the last two modules, there has been a fair amount of discussion and debate around the scope of what an entrepreneur does give who they are and how entrepreneurship can impact the world in which we live. Are entrepreneurs exclusively those who start businesses? Or are they creative thinkers and doers? While the term “Entrepreneurship” may have originally been used in reference to those trying to launch a product or service on Dragon’s Den, in the 21st century it is considerably broader.

According to Martiarena (2013) “the recognition of intrapreneurial activities has widened the notion of entrepreneurship by incorporating entrepreneurial activities undertaken within established organizations to the usual view of entrepreneurship as new independent business creation.” (p. 27). Intrapreneurship, then, is a form of entrepreneurship that occurs within existing organizations, but intrapreneurs are generally considered to be “significantly more risk-averse than entrepreneurs, earn lower incomes, perceive fewer business opportunities in the short term and do not consider that they have enough skills to succeed in setting up a business” (Martiarena, 2013, p. 33).

Merriam-Webster (n.d.) defines an intrapreneur as “a corporate executive who develops new enterprises within the corporation” (Intrapreneur, n.d.); however, some might consider some employees who are not corporate executives to also be intrapreneurs if they demonstrate entrepreneurial behavior within the company they work for.

An example of an intrapreneur could be an employee or a director and an organization that sees a problem within that organization and knows that a change needs to happen and then what they do is def define the rationale and create the opportunity for that change to happen and see it through.

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Lesson 1.3.2: Social Entrepreneurship

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Social entrepreneurship involves employing the principles of entrepreneurship to create organizations that address social issues.

Martin and Osberg (2007) defined a social entrepreneur as an individual who targets an unfortunate but stable equilibrium that causes the neglect, marginalization, or suffering of a segment of humanity; who brings to bear on this situation his or her inspiration, direct action, creativity, courage, and fortitude; and who aims for and ultimately affects the establishment of a new stable equilibrium that secures permanent benefit for the targeted group and society at large. (p. 39)

Martin and Osberg’s (2007) definition encompasses for-profit and not-for-profit organizations created by these entrepreneurs and also some government initiatives, but it excludes entities that exist solely to provide social services and groups formed to engage in social activism. An idealized definition of social entrepreneurship developed by Dees (2001) is informative in that it supports Martin and Osberg’s (2007) definition while complementing it with a set of criteria against which organizations can be assessed to determine whether they are socially entrepreneurial.

Social entrepreneurs “use their skills not only to create profitable business ventures but also to achieve social and environmental goals for the common good” (Zimmerer & Scarborough, 2008, p. 25). They are “people who start businesses so that they can create innovative solutions to society’s most vexing problems, see themselves as change agents for society” (Scarborough, Wilson, & Zimmer, 2009, p. 745).

A great example of social entrepreneurship is several organizations that fall under b corp status b corp status are organizations that exist to not only generate profit but also have a positive impact on the world around them have a look at b corp organizations to find out more.

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Lesson 1.3.3: Indigenous Entrepreneurship

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Swanson and Zhang (2014) described a range of perspectives on what Indigenous entrepreneurship means and what implications it holds for social and economic development for Indigenous people. Indigenous entrepreneurship might simply be entrepreneurship carried out by Indigenous people (Peredo &Anderson, 2006), but it can also refer to the common situation where Indigenous entrepreneurs—sometimes through community-based enterprises—start businesses that are largely intended to preserve and promote their culture and values (Anderson, Dana, & Dana, 2006; Christie & Honig, 2006; Swanson & Zhang, 2011).

Dana and Anderson (2007) expanded upon that notion when they described Indigenous entrepreneurship as follows:

There is rich heterogeneity among Indigenous peoples, and some of their cultural values are often incompatible with the basic assumptions of mainstream theories.

Indigenous entrepreneurship often has non-economic variables. Some Indigenous communities’ economies display elements of egalitarianism, sharing, and communal activity. Indigenous entrepreneurship is usually environmentally sustainable; this often allows Indigenous people to rely on immediately available resources and, consequently, work in Indigenous communities is often irregular. Social organization among Indigenous peoples is often based on kinship ties, not necessarily created in response to market needs. (p. 601)

Lindsay (2005) described Indigenous entrepreneurship as something even more complex:

Significant cultural pressures are placed on Indigenous entrepreneurs. These pressures will manifest themselves in new venture creation and development behavior that involves the community at a range of levels that contribute toward self-determination while incorporating heritage, and where cultural values are an inextricable part of the very fabric of these ventures. Thus, the Indigenous “team” involved in new venture creation and development may involve not only the entrepreneur and the business’ entrepreneurial team but also the entrepreneur’s family, extended family, and/or the community. Thus, in Indigenous businesses, there are more stakeholders involved than with non-Indigenous businesses. For this reason, Indigenous businesses can be regarded as more complex than non-Indigenous businesses and this complexity needs to be reflected in defining entrepreneurship from an Indigenous perspective (p. 2).

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Lesson 1.3.4: Community-Based Enterprises and Community-Based Entrepreneurship

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Peredo and Chrisman (2006) described community-based enterprises (CBEs) as emerging from “a process in which the community acts entrepreneurially to create and operate a new enterprise embedded in its existing social structure” (p. 310). CBEs emerge when a community works collaboratively to “create or identify a market opportunity and organize themselves in order to respond to it” (p. 315). These ventures “are managed and governed to pursue the economic and social goals of a community in a manner that is meant to yield sustainable individual and group benefits over the short and long term” (p. 310).

CBEs are positioned in a sector of the economy that is not dominated by a profit motive, often because there is little profit to be made, or by the government.

Modern societies are comprised of three distinct, but overlapping sectors (Mook, Quarter, & Richmond, 2007; Quarter, Mook, & Armstrong, 2009; Quarter, Mook, & Ryan, 2010): Businesses operating in the private sector primarily strive to generate profits for their owners by providing goods and services in response to market demands. “While this sector provides jobs, innovation, and overall wealth, it is not suited to addressing most social problems because there is usually no profit to be made by doing so” (Swanson & Zhang, 2012, p. 177). The public sector redistributes the money it collects in taxes to provide public goods and to serve needs not met by the private sector. “While this sector provides defense, public safety, education and a range of other public needs and social services, it has limited capacity to recognize and solve all social needs” (Swanson & Zhang, 2012, p. 177). The remaining sector—referred to by a variety of names including the third sector, the citizens’ sector, the voluntary sector, the non-profit sector, and more recently by Mintzberg, the plural sector (Mintzberg, 2013; Mintzberg & Azevedo, 2012)—is comprised of organizations that deliver goods and services the other sectors do not provide and are either owned by their members (with limited or no potential for individuals or small groups to gain a controlling interest in the organization) or not owned by any individuals, governments, businesses, other organizations, or any particular entity at all.

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Lesson 1.3.5: Family Business

Transcript

Chua, Chrisman, and Steier (2003) reported that “family-owned firms account for a large percentage of the economic activities in the United States and Canada.

Besides the significant component of Canadian and other economies that are made up of family-owned businesses, these entities might be distinct from other forms of entrepreneurship in several ways. While more research is required to better understand the distinctions, family businesses might be characterized by the unique influences family members have on how their firms operate and by the distinctive challenges they face that make them behave and perform differently than other categories of businesses (Chua et al., 2003).

As you can see, entrepreneurship can manifest in many forms that are well outside of starting a business or selling a product. Entrepreneurship is a way of thinking creatively, and taking action to make things happen!

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Activity 1.3.1: Read/Watch/Listen – Reflect

Today is all about taking some time to sit with the types of entrepreneurship you have learned about from the content above, as well as from some additional entrepreneurial resources provided below. Similar to the Read/Watch/Listen – Reflect activities in Modules 1 and 2, this is all done with the intent to develop your personal definition of Entrepreneurship at the end of the module. Pay close attention to the type(s) of entrepreneurship that resonates with you, and is particularly appealing. Remember, at the end of this module you will be developing either a 250-word document, infographic, or a three-minute presentation on your personal definition of Entrepreneurship.

The key steps are:

1. Research the links below
2. Identify the type of entrepreneurship that resonates with you as being appealing and inspiring
3. Reflect on why this type is appealing and inspiring
4. Reflect on how this type relates to your own draft definition of entrepreneurship (does it change it? support it? why?)
5. Reflect on how you can apply this type to create your own entrepreneurial success over the next 18 months

Resources:

• Read this article on Nine Different Types of Entrepreneurship
• Read this survey on Family Business
• Watch this video on the Surprising Habits of Original Thinkers
• Watch this video on Local Eco-Entrepreneurship
• Watch this video on How Doctors can Help Low-Income Patients (and Still Make Money)

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Activity 1.3.2: Reflection

As a reminder, journaling can be a really powerful way to learn because it gets us to pause and reflect not only on what we have learned but also on what it means to us. Journaling makes meaning of material in a way that is personal and powerful. We are going to take a slightly different approach for this journal, which focuses on developing an action plan given your previous two journal reflections. Here, you will develop a plan of action for immediate learning challenges, such as the unit assignments featured in this course. Recall in the past two journals you reflected on key learning (not content) aspects you found challenging. You will reconsider your strengths, weaknesses, and key learnings and determine specific steps to prepare and complete the oncoming learning challenge of defining entrepreneurship for yourself. Your journal entries should be either 300 to 500 written words or a video that is approximately 5 minutes.

Using your past two journal reflections and your learning experience in Module 3, reflect on the following:

1. Concepts that were easy to understand and why
   • If there was not a particular concept that was easy to understand, reflect on why this was the case
2. Concepts that were difficult to understand and why
   • If there was not a particular concept that was difficult to understand, reflect on why this was the case
3. Develop a meaningful plan with clear and specific actions you need to take, how you will take them, and when you will take them, to address any challenges or weaknesses before you complete your Unit 1 Assignment: Define Entrepreneurship.

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Unit 1 Assignment

The purpose of this assignment is to connect all of the dots that you have been learning about and engaging with over the past three modules when it comes to what entrepreneurship is in why it matters. You are going to develop your own definition of entrepreneurship. Remember, this is not about finding the right answer, or providing a definition that was developed by someone else, but rather this is about developing your own definition. Your submission should be about 250 words, which is one page double spaced, or it could be done as an infographic, or a two-three minute presentation. If you are doing this as part of a formal course and have a different approach that you would like to take for developing this assignment, please check with your instructor.