From idea to enterprise
ENT 4000 - An introduction
Chapter 1: Introduction
Technology Ventures: From Idea to Opportunity
What is entrepreneurship?
Chapter 1: concept
Technology Ventures: From Idea to Opportunity
Entrepreneurship defined
Entrepreneurship can be defined as an activity
which involves the process of discovery and
exploitation of a new opportunity…
(Scott Shane, 2003)
Chapter 1: Introduction
Technology Ventures: From Idea to Opportunity
An entrepreneur is a person who undertakes the
creation of an enterprise or business; a person who
identify and exploit opportunities…
Chapter 1: concept
Technology Ventures: From Idea to Opportunity
• Schumpeterian
entrepreneurship
– Creative destruction
(creates economic
disequilibrium)
– Requires new
information
– Innovative
– More seldom
– Involves creation
(invention, etc.)
• Kirznerian
entrepreneurship
– Contributes to create
market equilibrium
– Does not require new
information
– Less innovative
– More common
– Does not involve
creation - limited to
the discovery of an
unmet demand in the
market
An opportunity is a
favorable juncture (point in
time) of circumstances with
a good chance for success
or progress. It is the job of
the entrepreneur to locate
new ideas and to put them
into action.
Thus, entrepreneurship may be
described as the identification and
exploitation of previously unexploited
opportunities.
Chapter 1: concept
Technology Ventures: From Idea to Opportunity
An Attractive
Opportunity
•
Timely
•
Solvable
•
Important
•
Profitable
•
Favorable Context
Finding the Right
Opportunity
The
Sweet
Spot
•
Like to do the tasks
•
Like the challenge
•
Committed to do what is
necessary
Interests,
Passions,
Commitment
Chapter 1: Figure 1.1 - Finding the Right Opportunity
•
Skilled at the needed
tasks
Capabilities & Skills
Technology Ventures: From Idea to Opportunity
The capacity to co-ordinate resources
The concept of entrepreneurial capital
The capacity to identify opportunities
The capacity to see ventures through to fruition
Erikson, T. Venture Capital Journal (2001)
Chapter 1: Exercise 1.3
Technology Ventures: From Idea to Opportunity
Entrepreneurial capital is a (multiplicative)
function of entrepreneurial competence and
entrepreneurial commitment
Erikson, T. 2002. Journal of Business Venturing
Chapter 1: concept
Technology Ventures: From Idea to Opportunity
The intellectual capital of an organization is
the talents of its people, the efficacy of its
management systems, the effectiveness of its
customer and supplier relations, and the
technological knowledge employed and shared
among its people and processes.
Chapter 1: concept
Technology Ventures: From Idea to Opportunity
In other words, IC = HC + OC + SC
That is, intellectual capital is a function of human
capital, organisationsal capital, and social capital.
Chapter 1: concept
Technology Ventures: From Idea to Opportunity
Inputs
The (role of the) Firm
Outputs
Raw Materials
Components &
Modules
Financial Capital
Transformation Based On:
Intellectual Capital
Entrepreneurial Capital
Physical Assets
Products
&
Services
Technologies
Chapter 1: Figure 1.3 – Transforming available inputs into desired outputs
Technology Ventures: From Idea to Opportunity
Dynamic Capitalism is the process of wealth
creation characterized by the dynamics of new,
creative firms forming and growing and old, large
firms declining and failing.
Creative Destruction is the entrepreneurial
activity of destroying old models and creating new
models of doing business.
Chapter 1: concept
Technology Ventures: From Idea to Opportunity
Principle 1
The entrepreneur develops an enterprise with the
purpose of creating wealth and prosperity for all
participants – investors, customers, suppliers,
employees, and themselves – using a combination
of intellectual and entrepreneurial capital.
Chapter 1: Principle 1
Technology Ventures: From Idea to Opportunity
Complete the following tasks in order to select a
favorable opportunity for yourself or your team.
1.Describe an opportunity that is attractive to you.
2.Describe the competencies and skills you and your team
members possess.
3.Describe the passion and commitment you have for the
opportunity.
4.Is this a good opportunity for you?
Chapter 1: Exercise 1.3
Technology Ventures: From Idea to Opportunity