Week 3: Entrepreneurship and Companies’
Success
Key Points for Discussion
• Entrepreneurship from the top
• Intrapreneurship
• Acquiring entrepreneurs
• Successful intrapreneurship
• Financing entrepreneurs and entrepreneurial teams
• Tools for entrepreneurs
Entrepreneurship from the top
Case: Under the leadership of Rafael del Pino, Ferrovial went from a
construction and real estate company toward a much bigger and stable
infrastructure company. Key to the process was the highly leveraged
acquisition of BAA (with the major airports of the UK, including Heathrow)
Entrepreneurship from the top
through a hostile takeover.
Successful cases like this can also be considered entrepreneurial
management (Nueno and Rodríguez, 2007).
Intrapreneurship
Some companies have maintained venture capital units that in many
cases are used to attract entrepreneurs who have ideas that could
become interesting opportunities for the company.
These venture capital units can be a bridge to negotiate with these
entrepreneurs a possible acquisition of their startups by the parent
company.
Venture Capital (VC) is a type of private equity financing provided to early-stage, high-
potential startups and businesses with strong growth prospects. It is typically offered by
venture capital firms, angel investors, or institutional investors in exchange for equity
(ownership stake) in the company.
Acquiring entrepreneurs
• Large companies are supporting entrepreneurs in a different way however. It
is more and more frequent that large companies acquire entrepreneurial
ventures while, in some cases, reducing their R&D.
• It may lead to a more efficient use of funds, passing part of them to
acquisitions of startups that had already proven their concepts in the
market.
Successful intrapreneurship
• We live in the era of information. The availability of information contributes to
flatten organizations.
• The solution is team work.
➢ Team work can be promoted in flat organizations.
➢Availability of information (about the company, about the competition and
about the industry) can be facilitated in a regular and organized way.
➢Company structure, meetings, training and events can be organized in a
way that they contribute to cross lines and facilitate team work.
Financing entrepreneurs and entrepreneurial teams
• New instruments are also appearing: crowfunding, special bonds and
business angel networks.
• New ventures require financing. Sometimes they help rejuvenate a mature
company. Abengoa created the successful internal venture Telvent; later
sold Telvent to Schneider, thus contributing to reduce its own financial
leverage. But, to be born, new ventures need funding.
Financing entrepreneurs and entrepreneurial teams
• New instruments are also appearing: crowfunding, special bonds and
business angel networks.
Example:
• The first Chinese company to be listed in NASDAQ was Mindray, an
entrepreneurial venture launched by Xu Han to produce medical diagnostic
equipment. Xu Han used Mindray’s listing in New York NASDAQ as a strong
capitalizer for its global deployment but, above all, in the US market.
• Entrepreneurs like Jack Ma from Alibaba had reached valuation records in
international public markets.
Tools for entrepreneurs
“Business Plan,”
➢ A kind of step-by-step comprehensive guide to start the company. Once a
company is in motion, the conventional management knowledge is
applicable: from good accounting through ambitious strategic planning, going
through efficient operations, good management of adequately motivated
people, correct addressing of customers through marketing and sales, and
fitting the whole project within the correct financial scheme.
The Business Plan Template
Supplemental Discussion
• Entrepreneurship is a key driver of innovation and long-term success.
➢It’s about creating and capturing value through innovation.
• The importance of leadership in entrepreneurship.
➢Successful companies cultivate an entrepreneurial mindset at
all levels.
• Businesses that adopt an entrepreneurial culture can thrive in
competitive markets.
➢Leadership plays a crucial role in making entrepreneurship a
sustainable and scalable practice.
Defining Entrepreneurship
Entrepreneurship is the process of identifying and seizing opportunities
to create value.
Why It Matters:
1. Economic Growth: Entrepreneurship drives job creation and market
expansion.
2. Innovation: Businesses must continuously innovate to remain
competitive.
3. Competitive Advantage: Companies that think entrepreneurially
adapt better to change.
The Link Between Entrepreneurship and Business Success
An entrepreneurial mindset helps
businesses:
1. Identify new market opportunities. • Amazon (customer-
2. Innovate beyond traditional centric innovation).
business models. • Tesla (disrupting the auto
3. Sustain competitive advantage in industry).
the long run. • Google (continuous
technological innovation).
Key Entrepreneurial Characteristics for Success
•Vision & Strategy – Seeing opportunities others miss.
•Risk-taking & Resilience – Embracing uncertainty.
•Innovation & Adaptability – Continuously improving.
•Leadership & Teamwork – Inspiring people and building strong
teams.
Entrepreneurial Leadership & Corporate Strategy
•Successful companies embed entrepreneurship in their culture.
•Leaders encourage intrapreneurship—employees acting like
entrepreneurs.
Example: Google’s "20% Time" policy, allowing employees to work on
innovative projects.
Challenges in Entrepreneurship
Common Challenges: Solutions for Success:
1.Financial Constraints – Limited 1. Leverage partnerships and
funding for new ventures. funding sources.
2.Market Competition – Large 2. Build a strong brand and
companies dominate markets. unique value proposition.
3.Scaling Issues – Growing too fast or 3. Focus on scalability from
too slow. the start.
Role of Leadership Development in Entrepreneurship
•Leadership training shapes an entrepreneurial
mindset.
•Key leadership qualities for entrepreneurs:
•Creativity & Critical Thinking – Finding unique solutions.
•Resilience & Adaptability – Managing setbacks.
•People-Centric Leadership – Inspiring teams.
Conclusion
Entrepreneurship is and will remain very relevant for companies and
society. Entrepreneurship is a way to introduce innovation in society
and into existing companies, a way to identify new opportunities
which satisfy the needs of people and society (health care, education,
leisure, basic needs, etc.) and transform them into new companies. As
a consequence, entrepreneurship creates new jobs and often better
jobs.
