The Entrepreneurial Process Chapter Three Chapter Three Dowling Dowling BA 560 BA 560 Fall Term 2006 Fall Term 2006
Dec 22, 2015
The Entrepreneurial Process
Chapter ThreeChapter Three
DowlingDowlingBA 560BA 560
Fall Term 2006Fall Term 2006
BA560 Venture Planning Prof. DowlingBA560 Venture Planning Prof. Dowling 22
Entrepreneurship DefinedEntrepreneurship Defined
EntrepreneurshipEntrepreneurship—a way of thinking, —a way of thinking, reasoning, and acting that is reasoning, and acting that is opportunity obsessed, holistic in opportunity obsessed, holistic in approach, and leadership balancedapproach, and leadership balanced
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Entrepreneurship ResultsEntrepreneurship Results
Value:Value:– CreationCreation– EnhancementEnhancement– RealizationRealization– RenewalRenewal
For:For:– OwnersOwners– StakeholdersStakeholders– All ParticipantsAll Participants
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Entrepreneurial RequirementsEntrepreneurial Requirements
Willingness to take risksWillingness to take risks– Personal Personal – FinancialFinancial– CalculatedCalculated
Shift the odds of successShift the odds of success
Balancing risks with rewards Balancing risks with rewards
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Classic Entrepreneurship: The Classic Entrepreneurship: The StartupStartup
Raw startup companyRaw startup company—an innovative idea that —an innovative idea that develops into a high growth companydevelops into a high growth company
Qualities of a startup companyQualities of a startup company– Strong leadership from the main entrepreneurStrong leadership from the main entrepreneur– Complementary talents and outstanding teamwork Complementary talents and outstanding teamwork
of team membersof team members– Skill and ingenuity to find and control resourcesSkill and ingenuity to find and control resources– Financial backing to chase opportunityFinancial backing to chase opportunity
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The Entrepreneurial ProcessThe Entrepreneurial Process
It is It is opportunityopportunity driven driven
It is driven by a It is driven by a lead entrepreneurlead entrepreneur and an and an entrepreneurial teamentrepreneurial team
It is resource It is resource parsimoniousparsimonious and and creativecreative
It depends on the It depends on the fitfit and and balancebalance among these among these
It is It is integratedintegrated and and holisticholistic
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Think Big for Higher Potential Think Big for Higher Potential VenturesVentures
Don’t think too smallDon’t think too small
Smaller often means higher failure oddsSmaller often means higher failure odds
Getting the odds in your favor Getting the odds in your favor
Entrepreneurship should not be a job Entrepreneurship should not be a job substitutesubstitute
Odds for survival, growth, and a higher level of Odds for survival, growth, and a higher level of success, changes when the ventures reaches success, changes when the ventures reaches a size of 10-30 people with $2-$3 million in a size of 10-30 people with $2-$3 million in revenuesrevenues
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Exhibit 3.3Exhibit 3.3
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Exhibit 3.4Exhibit 3.4
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Exhibit 3.5Exhibit 3.5
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Exhibit 3.6Exhibit 3.6
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Exhibit 3.7Exhibit 3.7
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Exhibit 3.8Exhibit 3.8
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The Entrepreneurial TeamThe Entrepreneurial Team
An entrepreneurial leaderAn entrepreneurial leader
Learns and teaches—faster, betterLearns and teaches—faster, better
Deals with adversity, is resilientDeals with adversity, is resilient
Exhibits integrity, dependability, honestyExhibits integrity, dependability, honesty
Builds entrepreneurial culture and organizationBuilds entrepreneurial culture and organization
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The Entrepreneurial TeamThe Entrepreneurial Team
Quality of the TeamQuality of the Team
Relevant experience and track recordRelevant experience and track record
Motivation to excelMotivation to excel
Commitment, determination, and persistenceCommitment, determination, and persistence
Tolerance of risk, ambiguity, and uncertaintyTolerance of risk, ambiguity, and uncertainty
CreativityCreativity
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Minimize and Control Minimize and Control versusversus Maximize and OwnMaximize and Own
Unleashing creativityUnleashing creativity
Financial resourcesFinancial resources
AssetsAssets
PeoplePeople
Your business planYour business plan
Think cash last!Think cash last!
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ExhibitExhibit 3.9 (a)3.9 (a)
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Exhibit 3.9Exhibit 3.9 (b)(b)
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Exhibit 3.9Exhibit 3.9 (c)(c)
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Exhibit 3.9Exhibit 3.9 (d)(d)
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Entrepreneur’s Fit and BalanceEntrepreneur’s Fit and Balance
Mind-setMind-set
Know-howKnow-how
Relevant experienceRelevant experience
Track record of teamTrack record of team
Track record of resourcesTrack record of resources
Attractiveness of the venture opportunityAttractiveness of the venture opportunity