Marketing & Entrepreneurship
Session 2:
Understanding Entrepreneurship
Shahid Rasul
www.bradford.ac.uk/management
Session Outline
•Review
•Role of Government
•Small v Growth Firms
•Entrepreneurship Process
•Entrepreneurship as a subject
Review
People
Process
Purpose
Business
Science
Enterprise Creation
[Entrepreneurs]
Community
Social & Civic
Personal Enterprise
Enterprising
People
Entrepreneurship
[Innovation & Marketing]
Education
Theatre & Arts
Corporate
Entrepreneurship
Sport
Military
Social & Economic
Wealth Creation
Principles
Exploration
Entrepreneurship
Any attempt at new business or new venture
creation,
such as self-employment, a new business
organisation,or
the expansion of an existing business by an
individual,
teams of individuals, or established businesses.
Global Entrepreneurship Monitor
www.gemconsortium
Continuum of Entrepreneurial Activity
Necessity
Conventional
Creative
Opportunist
Serial
Necessity Reluctantly thrust into self-employment through circumstances.
Ekes out a living but would prefer to be employed. It may be for a brief
period of time, circumstances require self employment.
Conventional: self-employed, but stick with conventional products and
ideas to meet lifestyle needs
Creative: seeks success, but within the limits of personal or professional
values e.g. artistic entrepreneurs, social entrepreneurs
Opportunist: Spots opportunity and pursues growth to support personal
status needs e.g. financial success, social impact
Serial: constantly challenging assumptions, developing new
products/services, seek rapid growth, however defined
Small Business v Entrepreneurial Ventures
Innovation
Strategic
Objectives
Growth
Potential
Entrepreneurial Venture
Small Business
Lifestyle Firms
v
Growth Firms
Adapted from Strategic Entrepreneurship - Philip A.Wickham
History of Entrepreneurship
Entrepreneurship
...is businessman going about the ordinary business of life
...is to destroy the existing economic equilibrium in an act of
creative destruction ... and to profit from the new order
...is by definition the creation of new organisations
...is the process of identifying and exploiting profit opportunities
…is a way of thinking, reasoning and acting that is opportunity
obsessed, holistic in approach and leadership balanced
...equals economic and social mobility
Entrepreneurship
…is the ability to create and build something from
practically nothing. It is initiating, doing, achieving,
and building an enterprise or organisation, rather than
just watching, analysing or describing one. It is the
knack for sensing an opportunity where others see
chaos, contradiction and confusion.
Timmons (2003)
...is about creating and managing vision and
communicating the vision to other people. It is about
demonstrating leadership, motivating people and
being effective in getting people to accept change
Wickham (2004)
Entrepreneurship
The pursuit of opportunity beyond the
resources you currently control!
HBS working definition
What is an opportunity?
• A desired future
state that is
different from the
present
• A belief that
achievement of
that state is
possible
Opportunity
• Depends on the person
• Depends on the environment
• Depends on access to the required
resources
• Depends on timing
Steps to Business Success
Development
How will you develop your
business?
Promoting
Can you sell your idea?
Planning
How will you implement
your idea?
Customers
Is there a market?
Motivation
Do you have drive?
PERSONAL EVALUATION
IDEAS &
OPPORTUNITIES
BUSINESS PLANNING
START-UP
GROWTH
Attributes
Finding
Understanding the Market
Implementation
Team Building
Skills & Competencies
Generating
Forecasting the money
Raising Finance
Managing
Experiences
Researching
Managing the resources
Location
Expansion
Resources
Evaluating
Business Strategy
Dealing with realities
Systems
Ability & Capability
Selecting & Protecting
Business Structure
Opening & marketing
Learning
Vision & Focus
Business Model
Legal Issues
Networking
Communication
INNOVATION
Entrepreneurial Process
Opportunities
You
Unlocking
Value
Resources
Entrepreneurial Process
Entrepreneurial Spiral
Opportunities
Creative Thinking - Inventor
Marketing Plan - Gap
Production
Marketing
Growth Plan – Under
utilised resources
Business Plan - Investor
Sources of Finance
Adapted from Entrepreneurs Toolkit – Rory Burke
As a Field of Study
Shane & Venkatraman define entrepreneurship, as
a field of study, seeks to understand how
opportunities to create something new (e.g. new
products or services, new markets, new production
processes or raw materials, new ways of
organising existing technologies) arise and are
discovered or are created by specific persons, who
then use various means to exploit or develop them,
thus producing a wide range of effects.
(Baron & Shane: 4)
Common Themes in Definitions of Entrepreneurship
The Entrepreneur
Process
Uniqueness
Innovation
Understanding
Entrepreneurship
Organisation Creation
Profit or Not for Profit
Growth
Creating Value
Locating entrepreneurship as a subject
BUSINESS
MANAGEMENT
Strategy
Economics
Finance
Marketing
Managing people
Knowledge
management
ENTERPRISE IN
SOCIETY
Public policy
International development
Regional development
Business incubation
ENTERPRISE
MANAGEMENT
New venture
creation
Small business
management
Business growth
ENTREPRENEURSHIP
EDUCATION
Enterprise in
schools, colleges &
higher education
Lifelong &
workbased learning
CREATIVITY
New ideas & future
possibilities
Expression &
imagination
INNOVATION
Applied problem
solving
Using creative ideas
& technologies
Intellectual property
EMERGING FORMS OF
ENTREPRENEURSHIP
Social enterprise
Corporate venturing
Sustainable enterprise
Entrepreneurial management
International entrepreneurship
Entrepreneurship for women
Another Approach….
A holistic, beneficiary focused,
approach to value adding &
wealth creation?
Take what YOU need & enjoy the
journey.