, Chapter 1 Entrepreneurship
Entrepreneurship: A way of thinking and acting that is opportunity-obsessed, holistic in approach and leadership - balanced
3 Entrepreneurial actions begin at the nexus of a lucrative opportunity and an enterprising individual
Resources
Nature of entrepreneurship • Fundamental principle of the process: let the opportunity guide you
• Creation of growth and prosperity of business and nations
toward the level and the extent of resources needed (move away from
• Generally associated with entrepreneurial opportunities bootstrapping)
New businesses or small businesses which are the • Minimize and control rather than maximize and own (could create
result of an idea, new inventions, or products services cash flow problems)
• Recognizing the opportunity • build a good resource base to facilitate the startup process
• Creating something new (action) Entrepreneur/ team
• once opportunity is identified, works to start a business by putting
New product or process: new market entry
together the team and gathering required resources
• Offered to the market through a new organization or • The nature of the opportunity determines the size and shape of team
an existing organization • among all resources, only a good team can unlock a higher potential
with any opportunity and manage the pressures related to growth
• Risk of failure vs possibility of a reward
Profit driven or social in nature Creativity, communication and leadership
Key ideas when starting an entrepreneurial • The success of prospective business depends on ability of
entrepreneur to ensure balance, by applying creativity, leadership
venture Additionally: the entrepreneurial process
and maintaining effective communication.
Self efficacy (believe you can do this) 3 Help helps
Planning + action= success • Evident throughout value chain
2 1
Do well, do good
Business Plan
Sustainability: for
• 3 basic components integrated into a complete strategic plan
environment, community
Ambiguity
Fits and gaps
Exogenous forces
and society • not only for financial purposes
Provides language to communicate quality of the 3 driving forces of
model (opportunity, resources and team
Risk vs capital market capture
Entrepreneurial process
Opportunity • balancing act
• Creation of and recognition opportunities is at heart of process • risk can be minimized with a sound opportunity, enough resources
• Considerations: market readiness and consumer trends and behaviors and a great team
that seek new products or services
, Efficiency - driven economies
Key actions to becoming business owner
Brie model Russia, Brazil and China
-
Entrepreneurship is key to building a wealthy
. middle class
Retail, wholesale and large industries
..
Entrepreneurial activity is normally in middle
range
Innovation - driven economies:
Germany, Korea and USA
.
Focus on high value added manufacturing, a
large service sector and the provision of
high-end products and services to the local
Why small businesses are important to and export markets
our economy and community Entrepreneurial activity is normally average
to low
New jobs: A key employer (job creation)
Innovation: Creates creative disruptions Opportunity - driven entrepreneurship
Creation of new opportunities: Not only for entrepreneur • Entrepreneurs who are entering business to improve
but the communities they serve themselves financially
Different perspectives that drive Necessity-driven entrepreneurship
entrepreneurship • A person who became an entrepreneur because
Factor-driven economies: there is no prospect to get employment
Pakistan, Jamaica and Venezuela
·
Little manufacturing farming extracting raw materials
Entrepreneurship is essential to build personal wealth and
to break cycle of low wage jobs
Entrepreneurial activity is normally very high