Steps in the Entrepreneurial Process
1. Discovery
2. Concept Development
3. Resourcing
4. Actualization
5. Harvesting
Steps in the Entrepreneurial Process
1. Discovery: The stage in which the
entrepreneur generates ideas,
recognizes opportunities, and studies
the market
Idea
Innovation Opportunity
What is An Idea, Opportunity and Innovation ?
An idea is a concept for a product or service that doesnít
exist or is not currently available in a market niche. It
may be a brand-new concept or an improvement of a
current product or service.
In contrast, an opportunity is an idea for a new product or
service with a market that is willing to pay for that
product or service so that it can form the basis of a
profitable business.
Innovation is the process of making changes to something
that adds value to customers.
2-3
What is an Opportunity?
An opportunity has four essential qualities
2-4
Three Ways to Identify an Opportunity
Jeans/Electric cars Energy problem Electric cars
2-5
Discovery
Consider consumer
Consider your needs and wants
hobbies or
skills
Conduct Surveys and
questionnaires – test the Study
market demograp
hics/
Steps in the Entrepreneurial Process
2. Concept Development:
Develop a business plan: a detailed
proposal describing the business
idea
Objective
Executive summary
Mission Statement
Concept Development
Choose business location
Will a patent or trademark be required?
Steps in the Entrepreneurial Process
3. Resourcing: The stage in which the
entrepreneur identifies and acquires
the financial, human, and capital
resources needed for the venture
startup, etc
Start-up resources
Resourcing
Apply for loans,
grants and
assistance
Identify potential
investors
Hire
employees
Steps in the Entrepreneurial
Process
4. Actualization: The stage in which
the entrepreneur operates the
business and utilizes resources to
achieve its goals/objectives.
$$ Grand Opening $$
Day-to-Day Operations
Steps in the Entrepreneurial
Process
5. Harvesting: The stage in which the
entrepreneur decides on business’s
future growth/ development, or
demise
What is your 5-year or 10-year plan?
Consider adding locations or providing different
products/services
Will you go public?
s
Differences between entrepreneurship and wage
employment career options
WAGE EMPLOYMENT ENTREPRENEURSHIP
1.Work for Others 1.Own Boss
2.Follow Instructions 2.Make own plans
3.Routine Job 3.Creative activity
4.Earning is fixed, never 4.Can be negative sometimes,
negative generally surplus
5.Does not create 5.Creates Wealth, contributes
wealth To GDP
6.Can choose from- 6.Can choose from-
Public Sector, Industry
Private Sector Service Enterprise
Invention VS Innovation
Invention can be defined as the creation of a
product or introduction of a process for the first
time.
Innovation on the other hand, occurs if someone
improves on or makes a significant contribution
to an existing products, process or service.
Types of Innovation
Type Description Examples
Invention Totally new product, service, Wright brothers—airplane
or process Thomas Edison—light bulb
Alexander Graham Bell—telephone
Extension New use or different development from the mainframe
application of an computer to the desktop, then laptop
already existing and more recently the notebook
product, service, or computer.
process
Duplication Creative replication of an the adaptation of the franchise from
existing concept fast food industry to the education
industry.
Synthesis Combination of existing The fax machine, the combination of
concepts and factors into a existing technologies has given rise
new formulation or use to a new product technique
(telephone + photocopier = fax)
The Dark Side of Entrepreneurship
The Entrepreneur’s Confrontation with Risk
Financialrisk versus profit (return) motive varies in
entrepreneurs’ desire for wealth.
Career risk—loss of employment security
Family and social risk—competing commitments of
work and family
Psychic risk—psychological impact of failure on the
well-being of entrepreneurs
Stress and the Entrepreneur
Entrepreneurial Stress
The extent to which entrepreneurs’ work demands and
expectations exceed their abilities to perform as venture
initiators, they are likely to experience stress.
Causes of Entrepreneurial Stress
Loneliness
Engagement /Immersion in business
People problems
Need to achieve
Dealing with Stress
Networking
Getting away from it all
Communicating with employees
Finding satisfaction outside the company
Delegating
Exercising Rigorously
