Chapter 2 The entrepreneurial process. The topics discussed in this chapter are: Describe the process of moving from an idea to a business plan; understand the components of a sound business model; identify some of the best practices for high-growth, high-performance firms; understand the importance of timing in venture success; describe the use of a SWOT analysis as an initial “litmus test”;. | Entrepreneurship Canadian Edition William D. Bygrave, Andrew Zacharakis, Sean Wise 1 The Entrepreneurship Process Chapter 2 2 2 3 Learning Objectives Critical Factors for Starting a New Enterprise Learning Objective Identify the critical factors for starting a new venture. Evaluating Opportunities for New Businesses Learning Objective Evaluate the opportunity for a new business. Determining Resource Needs and Acquiring Resources Learning Objective Identify the resources needed for a new business. Profit Potential Learning Objective Evaluate the profit potential of a new business. Ingredients for a Successful New Business Learning Objective Identify the factors for a successful new business. 3 Entrepreneur Startup Margin 10 Ds and 9 Fs Scalability Flexible Debt vs Equity Cash flow The Timmons Model The Entrepreneurial Process Adversity Quotient Internal Locus of Control Creative Destruction Key Concepts 4 4 The Entrepreneurship Process 5 5 First used in 1723, today the term entrepreneur implies qualities of leadership, initiative and innovation in business. Economist Robert Reich has called team-building, leadership, and management ability essential qualities for the entrepreneur 1934: Joseph Schumpeter—Innovators who change the status quo to set up new products and new services and an entrepreneur is willing and able to convert a new idea or invention into a successful innovation. Entrepreneur: someone who perceives an opportunity and builds an organization to pursue that opportunity. Entrepreneurship is the process of starting a business or other organization. The entrepreneur chooses/develops a business model, acquires the human and other required resources and is fully responsible for its success or failure Entrepreneurship involves all the functions, activities, and actions associated with perceiving opportunities and creating organizations to pursue them. These include: Market and customer research Service and product innovation Team . | Entrepreneurship Canadian Edition William D. Bygrave, Andrew Zacharakis, Sean Wise 1 The Entrepreneurship Process Chapter 2 2 2 3 Learning Objectives Critical Factors for Starting a New Enterprise Learning Objective Identify the critical factors for starting a new venture. Evaluating Opportunities for New Businesses Learning Objective Evaluate the opportunity for a new business. Determining Resource Needs and Acquiring Resources Learning Objective Identify the resources needed for a new business. Profit Potential Learning Objective Evaluate the profit potential of a new business. Ingredients for a Successful New Business Learning Objective Identify the factors for a successful new business. 3 Entrepreneur Startup Margin 10 Ds and 9 Fs Scalability Flexible Debt vs Equity Cash flow The Timmons Model The Entrepreneurial Process Adversity Quotient Internal Locus of Control Creative Destruction Key Concepts 4 4 The Entrepreneurship Process 5 5 First used in 1723, .
