VENTURE CHALLENGE

Select a high-potential opportunity that interests the group and then use it for the one page business proposal description of the opportunity. For example, you might consider one of these current trends in science and technology: mobile data applications, internet telephony, video podcasting, web services, nanotechnology, clean technologies (including fuel cell, battery and solar), pandemic flu and biodefense treatments.

1) Describe the opportunity that attracts you and why you think it is a new venture opportunity.
2) Describe the competencies and skills you and your team members possess. 3) What important stakeholders will you need to be successful? 4) Describe the passion and commitment you have for the opportunity. 5) Is this a good opportunity for you?

Looking back This is the entrepreneurial age

- Initiating change in the structure of business and society Entrepreneurs are driving a revolution that is transforming and renewing economies worldwide Entrepreneurship is the essence of free enterprise - steady stream of brilliant entrepreneurs and innovators - job creation - new venture formation - Venture and growth capital - building entrepreneurial society - economic weapon

Looking back What is entrepreneurship?

- economic function approach - psychological and sociological profile - entrepreneurial behavior approach
The pursuit of opportunity without regard to resources currently controlled

- strategic orientation - the commitment to opportunity - resource commitment process - concept of control over resources - concept of management, and reward policy

Characteristics of Successful Entrepreneurs

Passion for the business Product/customer focus

Successful entrepreneur

Tenacity despite failure

Execution Intelligence

The Myths of Entrepreneurship

Myth 1: Entrepreneurs Are Doers, Not Thinkers Myth 2: Entrepreneurs Are Born, Not Made Myth 3: Entrepreneurs Are Always Inventors Myth 4: Entrepreneurs Are Academic and Social Misfits Myth 5: Entrepreneurs Must Fit the Profile Myth 6: All Entrepreneurs Need Is Money

The Myths of Entrepreneurship Myth 7: All Entrepreneurs Need Is Luck Myth 8: Ignorance Is Bliss For Entrepreneurs Myth 9: Entrepreneurs Seek Success But Experience High Failure Rates Myth 10: Entrepreneurs Are Extreme Risk Takers (Gamblers)

Entrepreneurshipa way of thinking, reasoning, and acting that is opportunity obsessed, holistic in approach, and leadership balanced The entrepreneurial process involves all the functions, activities, and actions associated with perceiving opportunities and creating organizations to pursue them

Flow of Topics

Entrepreneurial Management (A Framework for Entrepreneurship)

Entrepreneurial Process

Entrepreneurial Perspective

Opportunity Recognition

Entrepreneurial Mind

Resources and Business Plan

Entrepreneurial Manager

Launching the Venture Managing the Entrepreneurial Venture

Critical Factors for starting a new venture

Personal Attributes
Achievement Locus of Control Ambiguity Tolerance Risk taking Education Experience

Sociological

Environment

Networks Teams Parents Family Role Models Culture

Opportunities Role Models Creativity Competition Incubator Govt. Policy

Innovation

Triggering event

Implementation

Growth

The Entrepreneurial Process

It is opportunity driven It is driven by a lead entrepreneur and an entrepreneurial team It is resource parsimonious and creative It depends on the fit and balance among these It is integrated and holistic

ENTREPRENEURIAL PROCESS
Conducting Opportunity Analysis Developing the Plan and setting up the company State the vision Market analysis Evaluate competition Research pricing strategies

Writing business plan Set up the company Financial Human Materials Marketing issues challenges of growth strategies for growth

Acquiring Resources

Managing the Entrepreneurial Venture

Harvesting

Exit Strategy

Issues Affecting Entrepreneurship in Action

Characteristics of todays economy
Legal factors The changing world of work Social responsibility and ethics

Entrepreneurial Context

Important Characteristics of Todays Economy

What forces are driving todays economy?
What are the implications?

What will it take to be successful in this context?

Entrepreneurial Context

Driving Forces of Todays Economy

The Role of Information
Technological Trends Globalization Changing Demographics

Entrepreneurial Context

Implications of the Driving Forces of Todays Economy

Continual turbulence and change
Reduced need for physical assets Vanishing distance Compressed time

Entrepreneurial Context

Critical Success Factors

Four critical success factors for succeeding in todays economy
1. The ability to embrace change

2. The ability to be creative and innovative

3. Vision and leadership 4. Total quality culture

The Timmons Model of the Entrepreneurial Process

Communication
Opportunity Business Plan Fits and gaps Resources

Ambiguity Creativity

Exogenous forces Leadership

Entrepreneur/ team

Uncertainty

Capital market context

Founder (1)

Opportunity

Market demand to measure opportunity Market structure and size to define an opportunity customer payback less than one year market share and growth potential is customer reachable?

Margin analysis Differentiate an Opportunity from idea

emerging/fragmented barrier to entry

low cost provider/ High margin low capital requirement early break even Value added

Resources

Minimize and control vs maximize ownership Unleashing Creativity

Determining resources Needs and acquiring resources

entrepreneurial frugality: low overhead high productivity minimal ownership of capital assets Financial People Assets

Profit Potential

The Entrepreneurial Team

An entrepreneurial leader
Learns and teachesfaster, better Deals with adversity, is resilient Exhibits integrity, dependability, honesty Builds entrepreneurial culture and organization

The Entrepreneurial Team

Quality of the Team
Relevant experience and track record Motivation to excel Commitment, determination, and persistence Tolerance of risk, ambiguity, and uncertainty Creativity

The Entrepreneurial Team

Quality of the Team
Team focus of control Adaptability Opportunity obsession Leadership Communication