OBS 114 Notes
Chapter 1 – Entrepreneurship
Entrepreneurship – The process of developing, organizing
and running a new business to generate profit while taking on
financial risk.
Entrepreneur - An individual who notices opportunities and
decides how to mobilise the resources necessary to produce
new and improved goods and services.
Nature of the entrepreneurship:
• Recognising the opportunity.
• Creating something new(action).
• New product or process; New market entry
• Offered to the market through a new organisation or an
existing one.
• Risk of failure vs possibility of a reward
• Profit driven or social in nature
Key ideas to consider when starting an entrepreneurial venture:
A small business has around 1-50 people and its owner
manages the business daily
•Believe in yourself -> Self-efficacy – a person’s belief in their
belief to achieve a goal
•Planning + Action = Success -> Plan before implementing
action.
•Help helps -> Ask for help from other entrepreneurs.
•Do well, do good for others -> when they start implementing
business activities
,Entrepreneurial process (Timmons process)
Aspects of the Entrepreneurial process:
Opportunity -
• Creation and recognition of opportunities is at the heart of the
process.
• Idea vs opportunity
• Considerations: Market readiness and consumer trends and
behaviours that seek new products or services.
ie: Net florist
, Resources -
• Fundamental principle of the model: let the opportunity guide
you toward the level and the extent of resources needed (move
away from bootstrapping: Using low-cost or free techniques to
minimize your cost of doing business). Bootstrapping ->
process of founding and running a business using personal
finances & operating revenue
• Minimize and control rather than maximise and own (cash
flow problems).
• Build a good resource base to facilitate the start-up process
Ie: Drip Footwear tried to expand to quickly -> sales did not meet
expenses so they have had to liquidate. Hence, they could not
cope financially.
Entrepreneur/Team -
• Once the entrepreneur identifies an opportunity, he/she works
to start a business by putting together the team and gathering
the required resources.
• The nature of the opportunity determines the size and shape
of the team.
• A good team as indispensable for success. “A bad team can
waste a great idea”.
Chapter 1 – Entrepreneurship
Entrepreneurship – The process of developing, organizing
and running a new business to generate profit while taking on
financial risk.
Entrepreneur - An individual who notices opportunities and
decides how to mobilise the resources necessary to produce
new and improved goods and services.
Nature of the entrepreneurship:
• Recognising the opportunity.
• Creating something new(action).
• New product or process; New market entry
• Offered to the market through a new organisation or an
existing one.
• Risk of failure vs possibility of a reward
• Profit driven or social in nature
Key ideas to consider when starting an entrepreneurial venture:
A small business has around 1-50 people and its owner
manages the business daily
•Believe in yourself -> Self-efficacy – a person’s belief in their
belief to achieve a goal
•Planning + Action = Success -> Plan before implementing
action.
•Help helps -> Ask for help from other entrepreneurs.
•Do well, do good for others -> when they start implementing
business activities
,Entrepreneurial process (Timmons process)
Aspects of the Entrepreneurial process:
Opportunity -
• Creation and recognition of opportunities is at the heart of the
process.
• Idea vs opportunity
• Considerations: Market readiness and consumer trends and
behaviours that seek new products or services.
ie: Net florist
, Resources -
• Fundamental principle of the model: let the opportunity guide
you toward the level and the extent of resources needed (move
away from bootstrapping: Using low-cost or free techniques to
minimize your cost of doing business). Bootstrapping ->
process of founding and running a business using personal
finances & operating revenue
• Minimize and control rather than maximise and own (cash
flow problems).
• Build a good resource base to facilitate the start-up process
Ie: Drip Footwear tried to expand to quickly -> sales did not meet
expenses so they have had to liquidate. Hence, they could not
cope financially.
Entrepreneur/Team -
• Once the entrepreneur identifies an opportunity, he/she works
to start a business by putting together the team and gathering
the required resources.
• The nature of the opportunity determines the size and shape
of the team.
• A good team as indispensable for success. “A bad team can
waste a great idea”.
