Description
Factors in entrepreneurial process, Jeffry Timmons Model of Entrepreneurial Process, Entrepreneurial process, Difference between managerial and entrepreneurial behavior, Entrepreneur – personality factors
ENTREPRENEUR
Approach It is not important to define entrepreneur but it is important to describe entrepreneurship as a phenomenon.
Who is an entrepreneur ?
Entrepreneur is a person -
? One who innovates i.e. develops something new
? One who takes initiative
? One who arranges resources through social and economic mechanisms
? One who converts these resources into some outcomes ? One who accepts the risks and failures
ENTREPRENEURSHIP
What is entrepreneurship ?
It is a „process? of ? Creating something new – involves creativity and innovation – and continuity
? Arranging resources
? Creating an organization – profit making non profit making or not for profit making, etc. ? Acceptance of risks and uncertainties – after failure what next ?
Entrepreneurship
“Entrepreneurship is a way of thinking, reasoning,
and acting that is opportunity obsessed, holistic in approach, and leadership balanced.”
(Babson College & Harvard Business School)
Entrepreneurship results in creation, enhancement, realization, and renewal values, not only for owners but for all participants and stakeholders.
More thoughts on „entrepreneurship?
Entrepreneurship is about dealing with paradoxes – Finding opportunity within low opportunity Money making by money loosing Success through failures Planning vs. remain alert for unplanned events Creativity for discipline Sense of urgency with patience & perseverance Creative destruction
Who is a successful „entrepreneur? ?
High Inventor Creativity and Innovation Promoter Low Low High Manager
Entrepreneur
General Management skills, business knowledge, and networks
ENTREPRENEURIAL PROCESS
The factors in „entrepreneurial? process
PURPOSE
MOTIVATION
CREATIVITY & MOTIVATION
Opportunity – seeing & exploiting Planning – actions & problems Doing – Arranging Resources Working with known & unknown channels Managing problems & failures, etc.
GROWTH
Strategic Thinking & Actions – Growth Plan
Customer Focus
Social Plans, etc. MUST GO IN HOLISTIC WAY BEFORE COMMITTING ANYTHING
DETERMINATION
Jeffry Timmons Model of Entrepreneurial Process
Communication
Opportunity
Resources
Business Plan
Ambiguity Fits and Gaps Exogenous Forces
Creativity
Uncertainty Teams Financial Resource Context
Leadership
Entrepreneurial process
? For greater knowledge and more effective learning
?
Value creation: The driving force –
Entrepreneurial process is opportunity driven Driven by a lead entrepreneur and an entrepreneurial team It is resource parsimonious and creative It depends on fits and balance among these It is integrated and holistic
?
Change the odds –
Change the odds Business plan provides communication process and quality of the three driving forces – opportunity, resource and team The balance is critical Entrepreneurship is a dynamic process
Entrepreneurial process
The Opportunity – The entrepreneurial process is opportunity driven. ? Market demand is one of the key ingredient to measure the opportunity ? Market structure and size help in defining the market (and the possible fit) ? Financial analysis helps to differentiate an opportunity from an idea
Opportunities – ? Identification – growth as a market phenomenon ? Discovery – new product vs. new market matrix ? Creation – market creation
Entrepreneurial process
Resources: Creative and Parsimonious –
Need to have all the resources in place to succeed in the venture!
? Money follows high potential and well conceived opportunities to be lead by a strong management team ? Successful entrepreneurs devise creative and stingy strategies to gain control on the resources ? Investors and successful entrepreneurs say “too much money too early”
Entrepreneurial process
The Entrepreneurial Team – Entrepreneurial team is a key ingredient in the highly potential ventures
? There is shortage of great teams (plenty entrepreneurs, technology, money and venture capital are available)
? Wrong people will not work on good idea
? An entrepreneurial leader – learns and teaches faster and better, deals with adversities, exhibits integrity and honesty and build entrepreneurial culture in the organization
Entrepreneurial process
Importance of fits and balances –
A fit and balance among these three driving forces is important
? This imagery helps in constant balancing which is rare. This is intuitive and planned process both. ? An important entrepreneurial talent about the enterprise building process includes strategic and managerial implication of striking a balance and fragility. ? Needs continual assessment, revised strategies and tactics and experiential approach.
Entrepreneurial process
Importance of timing – This unique combination occur in real time (and not in a hypothetical plane)
? The decisiveness in recognizing and seizing opportunity make all difference
? But there is no perfect time to take advantage ? Opportunity is a moving target
Difference between managerial and entrepreneurial behavior
Key Dimensions Strategic Orientation Commitment to Opportunity Commitment to Resources Entrepreneurial Domain Driven by perception of opportunity Revolutionary with a short duration Multi-staged with minimal exposure at each stage Episodic use or rent of required resource Flat with multiple informal networks Managerial Domain Driven by resource currently controlled Evolutionary with a long duration Single staged with complete commitment upon decision Ownership or employment of required resources Formalized hierarchy
Control of Resources
Management Structure
Entrepreneur – personality factors
Characteristics –
? Perseverance and determination
? Ability to take calculated risks ? Need to achieve ? Initiative and taking responsibility ? Orientation to clear goals ? Creativity ? Honesty and integrity ? Independence (and more)
Entrepreneur – what do they do?
1. 2. 3. 4. Entrepreneurs make significant difference Entrepreneurs are creative and innovative Entrepreneurs spot and exploit opportunities Entrepreneurs find resources to exploit opportunities 5. Entrepreneurs establish good network 6. Entrepreneurs are determined to face adversities 7. Entrepreneurs manage risks 8. Entrepreneurs have control on the business 9. Entrepreneurs put their customers first 10. Entrepreneurs create capital (wealth)
Entrepreneurship
? Can succeed and fail ? Old and new firms ? Small and large firms ? Fast and slow growing
? For profit and not for profit
? Entrepreneurs settle dilemma, need mental agility
? Entrepreneurship is about continuous renewal
? Entrepreneurs are never satisfied ? Work like a symphony orchestra
The Entrepreneurial mind and action?
? Successful entrepreneurs have wide range of personality types
? No psychological study supported one specific personality type
? Entrepreneurs do not necessarily need specific inherent skills but need some specific acquired skills
? Successful entrepreneurs share some common traits – hard work, intense commitment, and determined perseverance
? They strive for integrity, thrive on competitive desire to excel and win, dissatisfied with status quo and seek opportunity for improvement, use failure as a tool for learning ? They believe that personally they can make enormous difference in the final outcomes
Session Ends
doc_169100743.pptx
Factors in entrepreneurial process, Jeffry Timmons Model of Entrepreneurial Process, Entrepreneurial process, Difference between managerial and entrepreneurial behavior, Entrepreneur – personality factors
ENTREPRENEUR
Approach It is not important to define entrepreneur but it is important to describe entrepreneurship as a phenomenon.
Who is an entrepreneur ?
Entrepreneur is a person -
? One who innovates i.e. develops something new
? One who takes initiative
? One who arranges resources through social and economic mechanisms
? One who converts these resources into some outcomes ? One who accepts the risks and failures
ENTREPRENEURSHIP
What is entrepreneurship ?
It is a „process? of ? Creating something new – involves creativity and innovation – and continuity
? Arranging resources
? Creating an organization – profit making non profit making or not for profit making, etc. ? Acceptance of risks and uncertainties – after failure what next ?
Entrepreneurship
“Entrepreneurship is a way of thinking, reasoning,
and acting that is opportunity obsessed, holistic in approach, and leadership balanced.”
(Babson College & Harvard Business School)
Entrepreneurship results in creation, enhancement, realization, and renewal values, not only for owners but for all participants and stakeholders.
More thoughts on „entrepreneurship?
Entrepreneurship is about dealing with paradoxes – Finding opportunity within low opportunity Money making by money loosing Success through failures Planning vs. remain alert for unplanned events Creativity for discipline Sense of urgency with patience & perseverance Creative destruction
Who is a successful „entrepreneur? ?
High Inventor Creativity and Innovation Promoter Low Low High Manager
Entrepreneur
General Management skills, business knowledge, and networks
ENTREPRENEURIAL PROCESS
The factors in „entrepreneurial? process
PURPOSE
MOTIVATION
CREATIVITY & MOTIVATION
Opportunity – seeing & exploiting Planning – actions & problems Doing – Arranging Resources Working with known & unknown channels Managing problems & failures, etc.
GROWTH
Strategic Thinking & Actions – Growth Plan
Customer Focus
Social Plans, etc. MUST GO IN HOLISTIC WAY BEFORE COMMITTING ANYTHING
DETERMINATION
Jeffry Timmons Model of Entrepreneurial Process
Communication
Opportunity
Resources
Business Plan
Ambiguity Fits and Gaps Exogenous Forces
Creativity
Uncertainty Teams Financial Resource Context
Leadership
Entrepreneurial process
? For greater knowledge and more effective learning
?
Value creation: The driving force –
Entrepreneurial process is opportunity driven Driven by a lead entrepreneur and an entrepreneurial team It is resource parsimonious and creative It depends on fits and balance among these It is integrated and holistic
?
Change the odds –
Change the odds Business plan provides communication process and quality of the three driving forces – opportunity, resource and team The balance is critical Entrepreneurship is a dynamic process
Entrepreneurial process
The Opportunity – The entrepreneurial process is opportunity driven. ? Market demand is one of the key ingredient to measure the opportunity ? Market structure and size help in defining the market (and the possible fit) ? Financial analysis helps to differentiate an opportunity from an idea
Opportunities – ? Identification – growth as a market phenomenon ? Discovery – new product vs. new market matrix ? Creation – market creation
Entrepreneurial process
Resources: Creative and Parsimonious –
Need to have all the resources in place to succeed in the venture!
? Money follows high potential and well conceived opportunities to be lead by a strong management team ? Successful entrepreneurs devise creative and stingy strategies to gain control on the resources ? Investors and successful entrepreneurs say “too much money too early”
Entrepreneurial process
The Entrepreneurial Team – Entrepreneurial team is a key ingredient in the highly potential ventures
? There is shortage of great teams (plenty entrepreneurs, technology, money and venture capital are available)
? Wrong people will not work on good idea
? An entrepreneurial leader – learns and teaches faster and better, deals with adversities, exhibits integrity and honesty and build entrepreneurial culture in the organization
Entrepreneurial process
Importance of fits and balances –
A fit and balance among these three driving forces is important
? This imagery helps in constant balancing which is rare. This is intuitive and planned process both. ? An important entrepreneurial talent about the enterprise building process includes strategic and managerial implication of striking a balance and fragility. ? Needs continual assessment, revised strategies and tactics and experiential approach.
Entrepreneurial process
Importance of timing – This unique combination occur in real time (and not in a hypothetical plane)
? The decisiveness in recognizing and seizing opportunity make all difference
? But there is no perfect time to take advantage ? Opportunity is a moving target
Difference between managerial and entrepreneurial behavior
Key Dimensions Strategic Orientation Commitment to Opportunity Commitment to Resources Entrepreneurial Domain Driven by perception of opportunity Revolutionary with a short duration Multi-staged with minimal exposure at each stage Episodic use or rent of required resource Flat with multiple informal networks Managerial Domain Driven by resource currently controlled Evolutionary with a long duration Single staged with complete commitment upon decision Ownership or employment of required resources Formalized hierarchy
Control of Resources
Management Structure
Entrepreneur – personality factors
Characteristics –
? Perseverance and determination
? Ability to take calculated risks ? Need to achieve ? Initiative and taking responsibility ? Orientation to clear goals ? Creativity ? Honesty and integrity ? Independence (and more)
Entrepreneur – what do they do?
1. 2. 3. 4. Entrepreneurs make significant difference Entrepreneurs are creative and innovative Entrepreneurs spot and exploit opportunities Entrepreneurs find resources to exploit opportunities 5. Entrepreneurs establish good network 6. Entrepreneurs are determined to face adversities 7. Entrepreneurs manage risks 8. Entrepreneurs have control on the business 9. Entrepreneurs put their customers first 10. Entrepreneurs create capital (wealth)
Entrepreneurship
? Can succeed and fail ? Old and new firms ? Small and large firms ? Fast and slow growing
? For profit and not for profit
? Entrepreneurs settle dilemma, need mental agility
? Entrepreneurship is about continuous renewal
? Entrepreneurs are never satisfied ? Work like a symphony orchestra
The Entrepreneurial mind and action?
? Successful entrepreneurs have wide range of personality types
? No psychological study supported one specific personality type
? Entrepreneurs do not necessarily need specific inherent skills but need some specific acquired skills
? Successful entrepreneurs share some common traits – hard work, intense commitment, and determined perseverance
? They strive for integrity, thrive on competitive desire to excel and win, dissatisfied with status quo and seek opportunity for improvement, use failure as a tool for learning ? They believe that personally they can make enormous difference in the final outcomes
Session Ends
doc_169100743.pptx