CH 1 and 2 Recognizing opportunities and idea generation
Entrepreneur
1. Definition: process where individuals pursue opportunities regardless of how much money they have.
2. Process (4):
a. Decide to be entrepreneur
b. Develop successful business idea: recognizing idea, feasibility, business plan, industry competitor analysis, developing business plan
c. Move from idea to launching the firm
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CH 1 and 2 Recognizing opportunities and idea generation
Entrepreneur
1. Definition: process where individuals pursue opportunities regardless of how much money they have.
2. Process (4):
a. Decide to be entrepreneur
b. Develop successful business idea: recognizing idea, feasibility, business plan, industry competitor analysis, developing business plan
c. Move from idea to launching the firm: asses financial strengths and viabilities, build a team, get the financing
d. Manage and grow firm: intellectual properties, prepare the evaluation of the challenges of firm growth, strategies for firm growth
3. Reasons (3):
a. Pursue their own idea
b. Be their own boss
c. Make money, financial rewards
4. Personal traits (4):
a. Passion
b. Product/customer focusà see product opportunities and to see them through to completion, most entrepreneurs are, at heart, craftspeople.
c. Tenacity despite failureà entrepreneurs try new stuff thus failure rate is high
d. Execution intelligenceà management team has to be focused enough not to be distractedà the same time flexible enough to respond to market
5. Core traits before opening the business (4)
a. Prior industry experience
b. Cognitive factors
i. Idea recognition
| ii. |
Entrepreneurial alertness: Ability to see opportunities without deliberateresearch |
| c. |
Social network |
i. Strong ties
1.
Weak ties |
Likeminded people |
ii. |
1. Better for business partners and workers
d. Creativity: Creativity is the process (5 PIIEE) of generating a novel or useful idea
i. Preparation à Preparation is the background, experience, and knowledge that an entrep. brings to the opportunity recognition process
ii. Incubation à A person considers an idea or thinks about a problem
iii.
iv.
v. |
Insightà When the solution to a problem is seen or an idea is born
Evaluationà An idea is subjected to scrutiny and analyzed for its viability
Elaboration à Idea is put into a final form: The details are worked out and the idea is transformed into something of value,a product |
6. Myths (5)
a. Born not made
b. Gamblers
c. Young
d. Money motivated
e. Love spotlight
7. Entrepreneurial Firms (3):
a. Proactive
b. Innovative
c. Risk taking
8. Conservative firms (3)
a. Wait and see approach
b. Less innovative
c. Risk averse
9. Types of start up firms (3)
a. Salary substitutes: dry cleaners, depanneur, restaurants, accounting firm.
b. Lifestyle: yay surfing and Instagram all day
c. Entrepreneurial firms: Provide products or service to the market, seizing an opportunity regardless of resources owned
10. Opportunity: An opportunity is a favourable set of circumstances that creates a need for a new product, service, or business.
11. Opportunity characteristics (3 TADA)
a. Attractive
b. Timely
c. Durable
d. Adds value
12. How to finds opportunities (3)
a. Observe trends: economic forces, social, techno, political
b. Find a niche, fill a gap
c. Solve a p
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