3.02 Entrepreneurship and the Entrepreneurial Process

Objective 3.02 Objective 3.02 Understand the entrepreneurship and the entrepreneurial process.

EntrepreneurshipEntrepreneurship

• The process The process of starting and of starting and running one’s running one’s own businessown business

EntrepreneurEntrepreneur• An entrepreneur is an An entrepreneur is an

individual who individual who undertakes the risk undertakes the risk

associated with associated with creating, organizing, creating, organizing,

and owning a businessand owning a business

Steps in the Entrepreneurial Steps in the Entrepreneurial ProcessProcess

1.1. DiscoveryDiscovery

2.2. Concept Concept DevelopmentDevelopment

3.3. ResourcingResourcing

4.4. ActualizationActualization

5.5. HarvestingHarvesting

Steps in the Entrepreneurial Steps in the Entrepreneurial ProcessProcess

11. . DiscoveryDiscovery: The : The stage in which stage in which the the entrepreneur entrepreneur generates generates ideas, ideas, recognizes recognizes opportunities, opportunities, and studies the and studies the marketmarket

Consider your hobbies or skills

Consider consumer needs and wants

Conduct Surveys and questionnaires

Study demographics

Steps in the Entrepreneurial Steps in the Entrepreneurial ProcessProcess

2. 2. Concept DevelopmentConcept Development: : – Develop a business plan: Develop a business plan:

a detailed proposal a detailed proposal describing the business describing the business ideaidea

– Choose business locationChoose business location

– Will a patent or trademark Will a patent or trademark be required?be required?

Steps in the Entrepreneurial Steps in the Entrepreneurial ProcessProcess

3. 3. ResourcingResourcing:: The The stage in which the stage in which the entrepreneur entrepreneur identifies and identifies and acquires the acquires the financial, human, financial, human, and capital and capital resources needed resources needed for the venture for the venture startup, etc startup, etc

Identify Identify potential potential investorsinvestors

Hire Hire employeesemployees

Apply for Apply for loans, loans, grants and grants and assistanceassistance

Steps in the Entrepreneurial Steps in the Entrepreneurial ProcessProcess

4. 4. ActualizationActualization:: The The stage in which the stage in which the entrepreneur entrepreneur operates the operates the business and business and utilizes resources to utilizes resources to achieve its achieve its goals/objectives.goals/objectives.

$$ Grand Opening $$

Day-to-Day Operations

Steps in the Entrepreneurial Steps in the Entrepreneurial ProcessProcess

5. 5. HarvestingHarvesting:: The The stage in which the stage in which the entrepreneur entrepreneur decides on decides on venture’s future venture’s future growth, growth, development, or development, or demisedemise

Steps in the Entrepreneurial Steps in the Entrepreneurial ProcessProcess

5. Harvesting:5. Harvesting:

What is your 5-year plan?Consider Expansion:• Possibly add multiple locations• Providing different

products/servicesWhat is your 10-year plan?Will you go public ? NYSE or

NASDAQ