Lesson 1, Chapter 1.
Entrepreneurship : The capacity (skills) and willingness (high risk, high reward) to
develop, organize and manage a business venture along with any of its risks in
order to make a profit
- In combination of land, labor, natural resources (inputs or factors of
production) and capital can produce profit. Outputs of entrepreneurship
will be; Satisfaction, profits, happy customers, Added value.
Key “Vision” Questions
1. Target market? Market size, who is the customer?
2. What problem can you solve for customers?
3. How do you design and manufacture your product?
4. How do customers acquire your product?
5. How do you scale your production?
6. How do you intend to “exit”?
Types of Entrepreneurs
- Community: address a critical community need
- High-growth: connect local communities to national and international
markets more effectively than nearly any other existing industry
- Hobby: related to activities they enjoy as pastimes
- Lifestyle: related to a style of living that reflects the values of a person or
group
- Minority: culturally specific goods or services
- Social: provide solutions to community and national needs
- Student: provide insight into a market that would otherwise be overlooked
- Women: gender specific solutions
Successful entrepreneurs guide their startups in a variety of ways,
including:
- Clearly articulating their organizational vision values and behavior
- Empowering their team transactional leadership
- Specifying organizational risk tolerance risk management
- Entrepreneurial culture motivation & enthusiasm
- Chain of command quick and effective
- Entrepreneurial team closely working together
- Intraorganizational two-way communication
,Discovery or basic research. An increment to preexisting knowledge, to
advance understanding.
Invention something non-obvious or new.
Innovation A market-disrupting, goal-directed way of doing business.
NETC: The 4 drivers of Innovation.
1. Emerging technologies (
2. Competitor actions (Competitors provide a benchmark, or a source of
copying success)
3. New requirements
4. External environment (The political, economic, cultural, or technological
environment)
Impact of geographic locations is important as certain geographic areas may be
associated with different cultures of risk-taking and career norms.
9 Entrepreneurial Framework Conditions
1. Availability of financial resources, such as grants, loans, crowdfunding, and
angel investor
2. Government policy
3. Government entrepreneurship programs
4. Entrepreneurship education
5. R&D transfer
6. Commercial and legal infrastructure
7. Entry regulation (market dynamics, openness)
8. Physical infrastructure
9. Cultural and social norms
,Investors often want to know about your profitable exit strategy, even before
they will consider investing.
When you know what your business is exactly worth you know how to negotiate
an exit strategy.
Lesson 1, Chapter 2.
The 4 key components of Entrepreneurial Ecosystems
External Factors that Aff ect Entrepreneurial Ecosystems
, Moore defined a business ecosystem as an economic community supported by a
foundation of interacting organizations and individuals – the organisms of the
business world.
Entrepreneurial activity leads to economic growth and helps to reduce poverty,
create a middle class, and foster stability. It is in the interest of all governments
to implement policies to foster entrepreneurship and reap the benefits of its
activity.
The most successful strategies to encourage entrepreneurship.
- Tax policies (If you put extra taxes on bigger companies with no growth
and smaller taxes on the smaller companies that do show growth).
- Regulatory policies (Reduce the cost/time of compliance with fewer
government regulations)
- Access to capital (such as the SBA in the USA).
- Legal protection of property rights.
Creating a friendly business culture.
1. Offer financial incentives for the creation of business incubators.
2. Make information available
3. Enhance the status of entrepreneurs and businessman in society.
Key recommendations for government policy in fostering
entrepreneurial ecosystems.
1. Make the formation of entrepreneurial activity a government priority.
2. Ensure that government policy is broadly focused.
3. Allow for natural growth, not top-down solutions.
4. Ensure all industry sectors are considered, not just high-tech:
5. Provide leadership but delegate responsibility and ownership.
6. Develop policy that addresses the needs of both the business and its
management team.
A cluster is a geographic concentration of related companies, organisations
and institutions in a particular field that can be present in a region, state or
nation. Clusters arise because they raise a company’s productivity. Innovation
clusters are sector and spatial concentrations of business and non-business
enterprises that allow the exchange of ideas and information across product
or service networks.
Entrepreneurship : The capacity (skills) and willingness (high risk, high reward) to
develop, organize and manage a business venture along with any of its risks in
order to make a profit
- In combination of land, labor, natural resources (inputs or factors of
production) and capital can produce profit. Outputs of entrepreneurship
will be; Satisfaction, profits, happy customers, Added value.
Key “Vision” Questions
1. Target market? Market size, who is the customer?
2. What problem can you solve for customers?
3. How do you design and manufacture your product?
4. How do customers acquire your product?
5. How do you scale your production?
6. How do you intend to “exit”?
Types of Entrepreneurs
- Community: address a critical community need
- High-growth: connect local communities to national and international
markets more effectively than nearly any other existing industry
- Hobby: related to activities they enjoy as pastimes
- Lifestyle: related to a style of living that reflects the values of a person or
group
- Minority: culturally specific goods or services
- Social: provide solutions to community and national needs
- Student: provide insight into a market that would otherwise be overlooked
- Women: gender specific solutions
Successful entrepreneurs guide their startups in a variety of ways,
including:
- Clearly articulating their organizational vision values and behavior
- Empowering their team transactional leadership
- Specifying organizational risk tolerance risk management
- Entrepreneurial culture motivation & enthusiasm
- Chain of command quick and effective
- Entrepreneurial team closely working together
- Intraorganizational two-way communication
,Discovery or basic research. An increment to preexisting knowledge, to
advance understanding.
Invention something non-obvious or new.
Innovation A market-disrupting, goal-directed way of doing business.
NETC: The 4 drivers of Innovation.
1. Emerging technologies (
2. Competitor actions (Competitors provide a benchmark, or a source of
copying success)
3. New requirements
4. External environment (The political, economic, cultural, or technological
environment)
Impact of geographic locations is important as certain geographic areas may be
associated with different cultures of risk-taking and career norms.
9 Entrepreneurial Framework Conditions
1. Availability of financial resources, such as grants, loans, crowdfunding, and
angel investor
2. Government policy
3. Government entrepreneurship programs
4. Entrepreneurship education
5. R&D transfer
6. Commercial and legal infrastructure
7. Entry regulation (market dynamics, openness)
8. Physical infrastructure
9. Cultural and social norms
,Investors often want to know about your profitable exit strategy, even before
they will consider investing.
When you know what your business is exactly worth you know how to negotiate
an exit strategy.
Lesson 1, Chapter 2.
The 4 key components of Entrepreneurial Ecosystems
External Factors that Aff ect Entrepreneurial Ecosystems
, Moore defined a business ecosystem as an economic community supported by a
foundation of interacting organizations and individuals – the organisms of the
business world.
Entrepreneurial activity leads to economic growth and helps to reduce poverty,
create a middle class, and foster stability. It is in the interest of all governments
to implement policies to foster entrepreneurship and reap the benefits of its
activity.
The most successful strategies to encourage entrepreneurship.
- Tax policies (If you put extra taxes on bigger companies with no growth
and smaller taxes on the smaller companies that do show growth).
- Regulatory policies (Reduce the cost/time of compliance with fewer
government regulations)
- Access to capital (such as the SBA in the USA).
- Legal protection of property rights.
Creating a friendly business culture.
1. Offer financial incentives for the creation of business incubators.
2. Make information available
3. Enhance the status of entrepreneurs and businessman in society.
Key recommendations for government policy in fostering
entrepreneurial ecosystems.
1. Make the formation of entrepreneurial activity a government priority.
2. Ensure that government policy is broadly focused.
3. Allow for natural growth, not top-down solutions.
4. Ensure all industry sectors are considered, not just high-tech:
5. Provide leadership but delegate responsibility and ownership.
6. Develop policy that addresses the needs of both the business and its
management team.
A cluster is a geographic concentration of related companies, organisations
and institutions in a particular field that can be present in a region, state or
nation. Clusters arise because they raise a company’s productivity. Innovation
clusters are sector and spatial concentrations of business and non-business
enterprises that allow the exchange of ideas and information across product
or service networks.
