3.

02 Entrepreneurship and the Entrepreneurial Process

Objective 3.02 Understand the entrepreneurship and the entrepreneurial process.

Entrepreneurship
The process of starting and running ones own business

Entrepreneur
An entrepreneur is an individual who undertakes the risk associated with creating, organizing, and owning a business

Steps in the Entrepreneurial Process

1. Discovery 2. Concept Development 3. Resourcing 4. Actualization 5. Harvesting

Steps in the Entrepreneurial Process

1. Discovery: The stage in which the entrepreneur generates ideas, recognizes opportunities, and studies the market
Innovation Opportunity

Discovery

Consider your hobbies or skills

Consider consumer needs and wants

Conduct Surveys and questionnaires test the market

Study demographics

Steps in the Entrepreneurial Process

2. Concept Development:
Develop a business plan: a detailed proposal describing the business idea

Code of ethics
Executive summary

Mission Statement
We thrive in an environment of academic excellence where students are prepared to meet and exceed their future challenges. We recognize each student's worth and develop lifelong learners who make positive contributions to our changing society.

Concept Development
Choose business location Will a patent or trademark be required?

Steps in the Entrepreneurial Process

3. Resourcing: The stage in which the entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture startup, etc

Start-up resources

Resourcing
Apply for loans, grants and assistance

Identify potential investors

Hire employees

Steps in the Entrepreneurial Process

4. Actualization: The stage in which
the entrepreneur operates the business and utilizes resources to achieve its goals/objectives.

$$ Grand Opening $$
Day-to-Day Operations

Steps in the Entrepreneurial Process

5. Harvesting: The stage in which the
entrepreneur decides on ventures future growth, development, or demise
What is your 5-year or 10-year plan?

Consider adding locations or providing different products/services

Will you go public?

Check for Understanding

You are collecting, reviewing, and interpreting surveys you distributed last week about your new business idea. What stage of the entrepreneurial process are you in? A. B. C. D. Actualization Concept Development Discovery Harvesting

You are currently seeking people and companies to invest in your business venture. What stage of the entrepreneurial process are you in?

A. B. C. D.

Actualization Concept Development Discovery Resourcing

What is an example of an activity for a business person who is entering the harvesting stage of entrepreneurship?

A. Considering opening a second store B. Gathering market research data about the product C. Having a grand opening for the business D. Seeking financial assistance from the Small Business Administration

Preparing a business plan for a new business, renting a building for the new store, and copyrighting the website for the new business are all classified as which stage of the entrepreneurial process? A. B. C. D. Actualization Concept Development Discovery Resourcing

Offering shares of stock to public investors and planning goals for the business during the next five years are examples of activities in which stage of the entrepreneurial process? A. B. C. D. Actualization Concept Development Harvesting Resourcing

Having a large grand opening sale or a summer clearance sale are examples of which stage of the entrepreneurial process?

A. B. C. D.

Actualization Concept Development Harvesting Resourcing