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Risk + proactiveness

Dimensions of Entrepreneurship:

1. Risk

Risk indicates elements of uncertain outcomes or events that is inherent in the process of exploiting an opportunity and starting a bus iness

Entrepreneurs take risks in order to obtain the higher rewards that come from higher risk but are CRE!"# to evaluate the risk first.

$uccess comes from taking a calculated% carefully&thought out approach to risk where everything possible is done to identify and minimi'e potential

problems

Dimensions of Entrepreneurship:

(. )ro&activeness

)ro&activeness refers to the propensity *proneness+ to act on information% ideas and opportunities in a timely and speedy manner

cting at the right time and in the right manner on the superiority of an idea or opportunity can differentiate between better success or less success or

even between success and failure

Idea Evaluation & Development Phase

,his phase is characteri'ed by efforts to better understand what it will take to bring the idea or opportunity into a full&fledge economic activity or business

-n technology entrepreneurship% some key activities at this stage include

1. doing the research and development work to invent or innovate a new technology&based product% process or service . preparing the initial

technology blueprint /. concept testing (. )rototyping 0. market testing

The Economic Inputs

atural capital

1. Consist basically of natural resources such as minerals% fuels and energy

. Can also include nature2s biological capacity to produce *e.g. oxygen+ or absorb *e.g. pollution+

/. s such this natural capital can be irreversibly depleted through neglect or irresponsible usage

!inancial capital

1. Refers to financial assets such as money and shares

. Can include exclusive use of technological designs and products that have financial value

-ntellectual capital

1. Refers to knowledge that is accessible within an business because it has been recorded *e.g. in documents and reports+% explained *e.g. through knowledge

sharing processes + and disseminated *e.g. through inter&team or inter&department pro3ect or research work+

Phases of the Creative Process

)hase 1: 4ackground or 5nowledge ccumulation

$tudy the background of the sub3ect matter

,his may re6uires extensive reading% discussion with experts% practitioners% academicians% researchers in the field% attending workshops and seminars%

exploring various unrelated areas etc.

,hese explorations expose entrepreneurs to a variety of perspectives on the sub3ect matter.

)hase : ,he 7ind -ncubation )rocess

n individual immerse himself or herself in the data% allowing the subconscious mind to muse or ponder on the information gathered.

8$leep on it9 getting away from the sub3ect matter and letting the subconscious mind working on it allows creativity to spring forth.

-ncubation can be induced by: engaging in ;mindless activities2 such as painting the house or cutting grass% meditate or play sports or board games. ,he

rationale is new ideas often emerge when we are busy doing something unrelated to the matter.

)hase /: ,he -dea Experience

,his is when the person discovers the solution or the idea. ,he idea may appear out of the blue or it may comes incrementally.

t this phase% the person begins to formulate the solution.

7ost of the time it is difficult to tell the movement from phase to phase /. ,o expedite movement to idea experience a person can try to daydream and fantasies about the pro3ect and always keep a notebook to record emergence

of ideas at odd hours.

)hase (: Evaluation and -mplementation

,his phase is the most difficult and re6uires courage% discipline < perseverance.

,here are a lot of possibilities of failures.

-deas are modified and tested before the best workable idea is put into a f inal form and successfully implemented.

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Sources of Innovation

1. =ithin the company or industry

"nexpected occurrence & unexpected discovery such as penicillin

-ncongruities > the gap between what is and what should be? arise whenever a difference exists between expectations < reality.

)rocess needs > re6uire entrepreneurs to innovate and answer a particular needs such as time&saving devices

$tructural change > caused by industry and market changes due to new developments such as advances in technology.

. =ithin the social environment

Demographic changes > for example changes in population% consumer preference and geographical locations.

)erceptual changes > perceptions can cause mood swings and ma3or changes in ideas% for example fitness cra'e is resulted by perceived needs to be

healthy < physically fit

ew knowledge > the basis of development of something brand new.

/. Characteristic of radical innovation

!undamental rethink o 4ased on disruptive technologies o Experimentation and play@make&believe

eed to be nurtured for long periods o =orse initial performance% potential big gains o Create new markets

Examples

ir )roducts > oxygen separation technology o nalog Devices > ir 4ag ccelerometer o Dupont > 4iodegradable polymer%

display technology o Aeneral Electric > Digital B&ray

Characteristics of an Attractive Opportunit

,imely & a current need% unmet demand or problem *e.g. vaccine for bird flu% drugs to prevent obesity+

$olvable & a problem that can be solved in the near future with accessible resources *e.g. a cure for cancerous diseases% a more efficient public transport to reduce

congestion and traffic 3ams+

-mportant & ,he customer deems their problem or need important to them *e.g. energy&saving air conditioner or petrol saving devices that work+

)rofitable & the customer will pay for the solution and allow the enterprise to profit *e.g. security products% multi function printers+

Context & a favorable regulatory and industry situation *e.g. on&line business transaction % genuine investment schemes that promised high returns+

Evaluate the Opportunit !Internal "actors#

-nternal factors that include:

Capabilities

the ability or 6uality *knowledge% experience% and skill+ necessary to develop the business venture

Resources

include financial% physical% and human resources consistent with the magnitude of the business venture

-nterest

the will% commitment% and passion to pursue the business venture

Opportunit pull !market driven#

ccurs when there is a need or problem that re6uires a solution. n

example is the need for a pharmaceutical that can mitigate or cure the effects of

-D$. ,his type of opportunity can be called opportunity pull% since the si'e ofthe opportunity draws opportunity seekers to attempt to exploit it.

Capa$ilit push !technolo% driven#

ccurs from the discovery of a capability or resource that can be

applied to a problem or need. n example of this type of opportunity is the

discovery of a new technology% such as digital television. ,his type ofopportunity can be called a capability push% since it flows from a capability or

resource availability.