lecture 2 - entrepreneurship & the entrepreneurial process
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New Venture ThinkingTRANSCRIPT
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New Venture Thinking
Entrepreneurship &The Entrepreneurial Process
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WHAT IS ENTREPRENEURSHIP?
Question:
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Invent stu?
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Retire at 35?
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Raise venture capital?
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Save the world?
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[DEF] Entrepreneurship
Entrepreneurship is the act of exploring and expressing creative potential.
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[DEF] Entrepreneurship
Entrepreneurship is the act of building sustainable value systems.
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It is a key driver of social, economic, and human development
It is a key proponent of socio-systemic change
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What makes an Entrepreneur?
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Set of Tools
Set of Genes
?
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Entrepreneurship is a perspective
cc Pierre-Olivier Guido Daniele
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Reality is malleable
Human beings can participate in its formation and transformation
I have the potential to participate in this human process
The development of potentials and transformation of malleable reality is a constant process
Key Assumptions of the Entrepreneurial Perspective
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THE ENTREPRENEURIAL PROCESS
Entrepreneurship in action
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The entrepreneurial process is a term coined by academia to describe the new venture creation that is
associated with entrepreneurial activity.
- Hisrich and Peters (1992)
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Cox, Mueller, and Moss (2002)
Entrepreneurial Process
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Task 1: Conceive a unique idea for a business
Task 2: Identify market opportunities for a new business
Cox, Mueller, and Moss (2002)
Entrepreneurial Process
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Task 1: Conceive a unique idea for a business
Task 2: Identify market opportunities for a new business
Task 3: Plan a new business
Task 4: Write a formal business plan
Cox, Mueller, and Moss (2002)
Entrepreneurial Process
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Task 1: Conceive a unique idea for a business
Task 2: Identify market opportunities for a new business
Task 3: Plan a new business
Task 4: Write a formal business plan
Task 5: Raise money to start a business
Task 6: Convince others to invest in your business
Task 7: Convince bank to lend you money to start business
Task 8: Convince others to work in your new business
Cox, Mueller, and Moss (2002)
Entrepreneurial Process
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Entrepreneurial Process
Task 1: Conceive a unique idea for a business
Task 2: Identify market opportunities for a new business
Task 3: Plan a new business
Task 4: Write a formal business plan
Task 5: Raise money to start a business
Task 6: Convince others to invest in your business
Task 7: Convince bank to lend you money to start business
Task 8: Convince others to work in your new business
Task 9: Manage a small business
Task 10: Grow a successful business
Cox, Mueller, and Moss (2002)
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is it really this linear?cc Walkingsf
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While Cox and Muellers framework has by many been accepted as representative of the new venture creation
process (Kickul, Gundry et al. 2009), others critique its linear and static nature (Jouini, Paris et al. 2009) and suggest that it ignores the ongoing learning loop that takes place in the
entrepreneurial process (Minniti and Bygrave 2001).
- Lesevic (2009)
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Lumpkin et al (2004) applied theory of creativity to devise an iterative model of the entrepreneurial process
Consists of two phases: Discovery phase Formation phase
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Discovery phase: drives insight includes preparation, incubation and
recognition of opportunity(Csikszentmihalyi 1996)
Formation phase: drives concretisation includes evaluation and elaboration of
opportunity (Jouini, Paris et al. 2009)
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Dynamic moving between two phases through double-loop learning (Argyris and Schn 1976)
Hence: learning is essential to the entrepreneurial process
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Learning is a constant movement it is not based on knowledge.
- Jiddu Krishnamurti
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Discovery-driven process
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Discovery-driven process
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Discovery-driven process
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Discovery-driven process
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Your world now
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Your world now
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Learning!Your world now
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Knowledge-to-Assumption Ratio
Shes totally in love with my
personality
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K-o-A Ratio Knowledge-to-Assumption ratio Entrepreneurs operate in a space of high uncertainty Where theres uncertainty there will be assumptions
about the current and future states of reality Discovery-driven process: Test your assumptions to
improve your knowledge and lower uncertainty!
One of the key activities of the entrepreneurial
process is the improvement of that ratio by: testing assumptions through action driving knowledge to action
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WEEK 2: CONVERSATION
- How do you feel about the concepts presented today?
What do you take away?
- Entrepreneurs see the world with tainted eyes. Discuss.
- Think about a situation from an entrepreneurs life
in which douple-loop learning could be useful. What do you make of Krishnamurtis quote?
- How do you learn a new perspective?