The Entrepreneurial Process

Patterns of Entrepreneurship
Chapter 1
 The Entrepreneurial Process

• Identify an Opportunity
• Develop the Concept - Write the Business
Plan
• Determine the resources Required
• Acquire the Necessary Financing/Partners
• Implement and Manage
• Harvest the Venture - Exit Strategy
2
 The Entrepreneurial Process
Changing Demographics
Identify an Opportunity Emergence of New Market
Process Needs
New Technologies
Regulatory Change
Social Change

New Product/Services
New Processes
Develop the Concept and
Enter New Markets
write the plan
New Organizational Structures/Forms
Use New Technologies
Use Sales or Distribution Channels
Start Writing the Plan
3
 The Entrepreneurial Process
Need for:
Determine the Required Marketing and Sales Expertise
Resources Technical Expertise
Financing Needs
Distribution Channels
Sources of Supply
Licenses, Patents, & Legal Protection
Complete the Business Plan

Debt Supplier Financing

Acquire the Necessary
Equity Joint Ventures
Financing/Partners
Outsourcing Partnerships
Leasing Barter

4
 The Entrepreneurial Process

Implementation of Plan/Pilot Program

Implement and Manage Monitor Performance
Payback to Resources Providers
Reinvestment
Expansion
Achievement of Performance Goals

Licensing of Rights
Harvest the Venture
Sell or Merge
Go Public
Shut down Venture

5
 Why Become an Entrepreneur

• For many individuals, there is the perception of

independence and freedom from the politics and
restrictions of corporate America.
• Being able "to do one's own thing," and make
one's own decisions, and
• exert greater control is an attractive alternative to
the conformity--real or imagined

6
 The Entrepreneurial Mindset

• "A key aspect of establishing an

entrepreneurial mindset is creating the
conditions under which everyone involved
is energized to look for opportunities to
change the business model”-Professor Rita
McGrath

7
 Commonly Shared Entrepreneurial
Characteristics

1.They passionately seek new opportunities always

looking for the chance to profit from change and
disruption in the way business is done.
2.They pursue opportunities with enormous
discipline..
3.They pursue only the very best opportunities and
avoid exhausting themselves and their
organizations by chasing after every option.

8
 Commonly Shared Entrepreneurial
Characteristics
4. The focus is on execution—specifically, adaptive
execution.

5. The entrepreneur engages the energies of

everyone in the company. .

9
 The Entrepreneurial Process: Framework
for Evaluating an Opportunity
Name of Project: __________________________________________________

Student Names: ________________ Telephone: ______________

________________ ______________
________________ ______________
________________ ______________
________________ ______________

Brief Description of Project: _________________________________________

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

10