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Unit 2: Classifications and Models of Entrepreneurship

(but without any formal organizational ownership) enables teams to pursue opportunities on Notes
their own in so far as they fit the organization’s strategic frame. In the most evolved versions of
the enabler model, companies provide the following: clear criteria for selecting which
opportunities to pursue, application guidelines for funding, decision-making transparency,
both recruitment and retention of entrepreneurially minded employees and, perhaps above all,
active support from senior management.

2.2.3 The Advocate Model

What about cases in which funding isn’t really the issue? In the advocate model, a company assigns
organizational ownership for the creation of new businesses while intentionally providing only
modest budgets to the core group. Advocate organizations act as evangelists and innovation
experts, facilitating corporate entrepreneurship in conjunction with business units.

2.2.4 The Producer Model

A few companies such as IBM, Motorola and Cargill pursue corporate entrepreneurship by
establishing and supporting formal organizations with significant dedicated funds or active
influence over business-unit funding. As with the enabler and advocate models, an objective is
to encourage latent entrepreneurs. But the producer model also aims to protect emerging projects
from turf battles, encourage cross-unit collaboration, build potentially disruptive businesses
and create pathways for executives to pursue careers outside their business units.
Self Assessment

Fill in the blanks:
7. The basic premise of the …………….. model is that employees across an organization will
be willing to develop new concepts.

8. Advocate organizations act as evangelists and innovation experts, facilitating
……………………. entrepreneurship in conjunction with business units.
9. The ……………….. model works well only in trusting corporate cultures.

10. Dedicating resources and processes enables teams to pursue opportunities on their own in
so far as they fit the organization’s ………………… frame.

2.3 Problems Faced by Entrepreneurs in India

The problems faced by Indian entrepreneurs are depicted below:

Figure 2.2: Problems Faced by Entrepreneurs in India

Source: http://kalyan-city.blogspot.com/2012/04/what-are-challenges-before-indian.html

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