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THE ENTREPRENEURIAL AND INTRAPRENEURIAL MIND

LEARNING OBJECTIV ES

1. To explain the aspects of the entrepreneurial process.
2. To explain the differences between entrepreneurial and managerial domains.
3. To explain the organizational environment conducive for entrepreneurship.
4. To identify the general characteristics of an Entrepreneur.
5. To explain the process of establishing entrepreneurship in an organization.

ENTREPR E NEURIAL PROCESS

The entrepreneurial process involves finding, evaluating, and developing an opportunity by overcoming the strong forces that resist the creation of something new.

Phase 1: Identifying and Evaluating the Opportunity

Most good business opportunities result from an entrepreneur being alert to possibilities. Some sources are often fruitful, including consumers and business associates. Channel members of the distribution system-retailers, wholesalers or manufacturer’s reps-are also helpful.
Technically-oriented individuals often identify business opportunities when working on other projects. Each opportunity must be carefully screened and evaluated-this is the most critical element of the entrepreneurial process.

Read more: MGT602 - Entrepreneurship - Lecture Handout 04

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Related Content: MGT604 - VU Lectures, Handouts, PPT Slides, Assignments, Quizzes, Papers & Books of Management of Financial Institutions

The Leasing Sector in Pakistan and its Role in Capital Investment

From the Third World perspective where a major source of economic capital is a form of foreign or local debt, Leasing acts as a hybrid form of debt cum investment. In the 80’s, when Pakistan floated its first leasing company, the characteristic of ‘asset-based’ financing made it a more ‘Islamic’ form of lending. (Asset based lending is a permitted form of debtfinancing
in Islam). From the perspective of developmental finance, Leasing provided an alternative to interest based debt.

Leasing as investment indicator

Hypothetically, since leasing is directly related to the acquisition of an asset, indicating the Aggregate Investment in Leasing (AIL) of the leasing sector, in a country and at a point in time, would indicate the amount of incremental and fresh capital investment in a year. Hypothetically, we may ignore ‘leakages’ such as rescheduling and duplicate leasing.

The aggregate figure for ‘Investment in Leasing’ for the leasing sector in Pakistan has been ranging between PKR18bn to PKR25bn over the past three years. We do not have statistics regarding the exact percentage of new investment in plant and machinery or other income generating assets. I think I can safely estimate about 90% of the AIL is plant and machinery. Of-course, the AIL is only indicative of new capital investment if compared with the same over the previous year. A fairly rough estimate of incremental capital investment would therefore be an average of Rs3billion per year. This does not mean all new investment in a year. That would be much higher since part of the AIL would be paid back, depending on the life of the lease contract.

Read more: MGT604 - Management of Financial Institutions - Lecture Handout 34