THE ENTREPRENEURIAL START-UP PROCESS

The Five Key Components

The Entrepreneur

Driving force of the start-up process. Recognizes an opportunity. Gathers resources to take advantage of

the opportunity. Creates a company to execute the

opportunity in the marketplace.

The Environment

Four environmental factors affect a new venture’s ability to start and grow. Nature of the Environment: uncertain, fast-

changing, stable, or highly competitive. Availability of Resources: skilled labor,

start-up capital, and sources of assistance. Ways to Realize Value: favorable taxes,

good markets, and supportive governmental policies.

Incentives to Create New Businesses: Enterprise Zones.

The Opportunity

Opportunity: Idea that has commercial potential.

Opportunities have potential when there is demand for the product.

Idea + Market = Opportunity

Start-Up Resources

The necessary people and capital must gathered when the entrepreneur is ready to start the business.

Start-Up Resources include: capital, skilled labor, management expertise, legal and financial advice, facility, equipment, and customers needed to start a business.

The New Venture Organization New Venture Organization = Company Company is the foundation that supports

all of the products of the new business. Through the company the entrepreneur

creates value that benefits the owners, employees, customers, and economy.