Ent 431

Group 5

Ray

Reich

Small

Spalding

Springirth

Wilson

1. The conceptualization of entrepreneurship as a process entails two necessary components. Identify and define these two requirements.

        The conceptualization of entrepreneurship as a process entails two necessary components. These two components are Entrepreneurial Agent and Event. The entrepreneurial agent is “the agent is an individual or group who assumes personal responsibility for bringing the event to fruition” (Corporate Entrepreneurship & Innovation). These are the individuals who are the main possibility of the idea actually coming to life and becoming either a business or a product to add to the dimensions that they already have. The entrepreneurial event is “the event refers to the creation of the new product, service, process, or entity” (Corporate Entrepreneurship & Innovation). This is the actual process of how the project really comes to life. Without the agent or the event then there would not be any kind of products, services, or even a process for the consumers to get or use. This whole idea relates to the definition of entrepreneurship, which is “the process of creating value by putting together a unique combination of resources to exploit an opportunity” (Corporate Entrepreneurship & Innovation). In order to have the idea of entrepreneurship you will need the actual agent(s) or event(s) to create this process of how much someone is willing to pay for a product, the recourses being internal and creating them being external, and the seeking of the right opportunity to make that product or service.

2. Identify and define the three general categories of NPOs (give examples)

        The three NPOs are Philanthropic, Advocacy, and Mutual Benefit Organizations. The first NPO is Philanthropic which relates to “donating resources, which can be tangible or intangible for the betterment of those in need. This is also mainly motivated by humanitarian purposes as well” (Corporate Entrepreneurship & Innovation). The meaning behind philanthropy is that “Philo” means love and “Anthropic” means the people and them together stands for the meaning behind the love for mankind. This relates to the term philanthropic because the organization is helping the people who are in need to make the environment for the better. The second NPO is Advocacy which is defined as “supporters of causes or initiatives (agencies that protect the environment, end spousal abuse, protect animals, or champion a political case)” (Corporate Entrepreneurship & Innovation). Advocacy relates to the fact that companies are for the idea of helping others who are stuck in a situation that they cannot get out of. The third NPO is Mutual Benefit and this is defined as “Agencies that provide services to constituencies, some time for free, often below actual cost” (Corporate Entrepreneurship & Innovation). The Mutual Benefit agencies are also related to the public sector organizations as well because an example of this would be country clubs that will have the members pay an annual fee, or a huge membership fee just to use their equipment for the whole year without having to pay any extra, and these options are only open to people who plan to have a membership. The money gained from the membership fees are then put back into the country club so then the country club has the option to innovate their resources and expand upon the club.

3. What is the Brooks (2009) definition of social entrepreneurship?

Brooks definition of social entrepreneurship is defined as “new and novel mixes of opportunities, challenges, ideas, and resources in pursuit of potentially explosive (nonfinancial rewards” (Corporate Entrepreneurship & Innovation).  Social entrepreneurship is demonstrated through innovations that entail risks by furthering social good and meeting social needs.        

The establishment of NPO’s and changes to already established nonprofits is also viewed through social entrepreneurship.  Some examples include implementation of fees for services, the launch of new enterprises, creative expansion of services and networks, resource sharing and blended funding streams, incorporating new technologies into operations and development of performance metrics to capture social return on investment.

Social entrepreneurs are continuously searching for new opportunities.  They tend to seek development of society as well as contributing to those in need.  Risk-taking tolerance is greater, so they will seek the opportunities that are challenging and solve the cause to why the challenge is occurring.  Social entrepreneurs according to the textbook “generate both economic and social benefits that all stakeholders find valuable” (Corporate Entrepreneurship & Innovation).

4. Identify 5 (there are more than 5, but 5 is all that are required) key differences that distinguish public sector organizations from private companies.

A number of characteristics distinguish the public-sector organizations from private companies.  The differences that occur between the two as stated by the textbook “raise questions regarding not simply whether entrepreneurship can be applied in public enterprises, but whether it should be applied.  Diversity exists among both sectors especially those among the private sector.

Five key differences include private sector organizations do not have a profit motive, instead, are guided by social and political objectives.  Since diversity is achieved in public sectors it is hard to measure whereas private companies measure the input from sponsors or public.

The second difference is public sector organizations have less exposure to the market and its incentives for cost reductions, operating economies and efficient resource allocation; resources tend to be allocated based on equity considerations and political pressures.

Third, public sectors receive funds indirectly from an involuntary taxpayer rather than directly from a satisfied and voluntary customer.

Fourth, public sectors have difficulties in identifying the organization’s “customer” as there are a number of different publics being served.  Private companies design programs and conspire with clients and constituents to achieve more staff and budget.

Fifth, public sectors face risk/reward trade-offs that strongly favor avoiding mistakes.  The private companies tend to have tunnel vision and are unable to see how any risks fits into the overall range of risk in the world and fail to consider trade-off possibilities.

5. What is the definition developed in the textbook for public sector entrepreneurship?

Public sector entrepreneurship, as defined in the book, “is the process of creating value for citizens by bringing together unique combinations of public and/or private resources to exploit social opportunities.” Public sector entrepreneurship is creating value for their citizens but, differently than the value created for social entrepreneurship. There are three perspectives that address the key aspects of public sector entrepreneurship that the book mentions. All three are as follows: 1) “an active approach to administrative responsibility that includes generating new sources of revenue, providing enhanced services, and helping to facilitate increased citizen education and involvement; (2) “a continuous attempt to apply resources in new ways so as to heighten the efficiency and effectiveness of public institutions;” and (3) the ability of public officials to spot market opportunities and, through follower “manipulation,” act upon them.” All of these three definitions three have major themes that appear, (1) entrepreneurship is ongoing; (2) entrepreneurship is a process, and (3) the end result is innovative proactive behavior. These different themes align with the mainstream entrepreneurship literature. An example of a public sector entrepreneurship is the “Big Dig” construction megaproject in Boston.