THE
ENTREPRENEURIAL
VENTURE
SECOND EDITION
READINGS SELECTED BY
William A. Sahlman,
Howard H. Stevenson,
Michael J. Roberts, and
Amar Bhide
Han/prrl Rucinoqs School
HARVARD BUSINESS SCHOOL PRESS
Boston, Massachusetts
CONTENTS
Introduction
1
William A. Sahlman, Howard H. Stevenson, Michael J. Roberts, and Amar Bhide
PART ONE
ENTREPRENEURSHIP—WHAT IS IT?
1
A Perspective on Entrepreneurship
,
7
Howard H. Stevenson
2
Entrepreneurship Reconsidered: The Team as Hero
23
Robert B. Reich
3
Capital Market Myopia
35
William A. Sahlman and Howard H. Stevenson
4
The Questions Every Entrepreneur Must Answer
65
Amar Bhide
5
Why Be Honest If Honesty Doesn't Pay
Amar Bhide and Howard H. Stevenson
80
viii
CONTENTS
6
The Road Well Traveled
94
Amar Bhide
.7
Making Business Sense of the Internet
Shikhar Ghosh
101
PART TWO
STRATEGIES AND TACTICS FOR STARTING, ACQUIRING, AND GROWING
THE VENTURE
,
SECTION A
EVALUATING NEW VENTURE OPPORTUNITIES
8
Developing Start-up Strategies
121
Amar Bhide
9
Some Thoughts on Business Plans
138
William A. Sahlman
10
How to Write a Winning Business Plan
177
Stanley R. Rich and David. E. Gumpert
11
Purchasing a Business: The Search Process
189
Michael J. Roberts and Ennis ). Walton
SECTION B
MARSHALING REQUIRED RESOURCES
12
Attracting Stakeholders
211
Amar Bhide and Howard H. Stevenson
13
Bootstrap Finance: The Art of Start-ups
Amar Bhide
223
14
The Financial Perspective: What Should Entrepreneurs Know?
William A. Sahlman
238
CONTENTS
15
Venture Capital
262
Constance Bagley and. Craig Dauchy
16
Aspects of Financial Contracting in Venture Capital
304
William A. Sahlman
17
The Legal Protection of Intellectual Property
326
Michael J. Roberts
18
The Horse Race Between Capital and Opportunity
•'
335
William A. Sahlman
19
Strategy vs. Tactics from a Venture Capitalist
351
Arthur Rock
SECTION C
M A N A G I N G THE G R O W I N G ENTERPRISE
20
The Challenge of Growth
361
Michael J. Roberts
21
Managing Transitions in the Growing Enterprise
377
Michael J. Roberts
22
Building the Self-Sustaining Firm
392
Amar Bhide
23
Going Public
404
Constance Bagley and Craig Dauchy
24
Why Sane People Shouldn't Serve on Public Boards
441
William A. Sahlman
25
How Small Companies Should Handle Advisers
450
Howard H. Stevenson and William A. Sahlman
26
Bankruptcy: A Debtor's Perspective
Howard H. Stevenson and Michael J. Roberts
459
CONTENTS
PART THREE
INNOVATION AND ENTREPRENEURSHIP IN THE LARGER COMPANY
27
Tough-Minded Ways to Get Innovative
481
Andrall E. Pearson
28
Discovery-Driven Planning
493
Rita Gunther McGrath and Ian C. MacMillan
29
Disruptive Technologies: Catching the Wave
506
Joseph L. Bower and Clayton M. Christensen
I'
30
Managing for Creativity
521
Teresa M. Amabile
31
The Business of Innovation: An interview with Paul Cook
537
William Taylor
PART FOUR
ENTREPRENEURSHIP IN THE NONPROFIT SECTOR
32
Virtuous Capital: What Foundations Can Learn from Venture
Capitalists
555
Christine W. Letts, William Ryan, and Allen Grossman
33
Starting a Nonprofit Venture
566
Alice Oberfield and J, Gregory Dees
34
Surviving Success: An Interview with the Nature
Conservancy's John Sawhill
Alice Howard and Joan Magretta
580
Index
595
0
