Creating NewBusinesses

Entrepreneurial Orientation

• EO refers to the processes, practices, and decision-

making styles of organizations that act entrepreneurially.

• What are the key characteristics of people or

organizations that think entrepreneurially?• Autonomy

• Competitive aggressiveness

• Innovative

• Proactive

• Risk-taking

Why be an Entrepreneur?• Independence. 38%. Have your voice, Self-expression• Passion to create• Exciting/Challenging, Want risk• Profit• Exploit opportunities, fill a need, find a niche• Snowed heard a sales pitch• Speed to market• Social entrepeneurship / intrinsic value• Leave a legacy, family business, maintain a legacy• Pride, ownership• Freedom (escaping a bad situation)• Tax benefits• As an investment• Women entrepreneurs

What prevents people from doing so?• Financial insecurity• Fear of failure and of the unknown• Lack of resources (financial, talent, confidence)• Too many ideas/resources (never pulling the trigger)• Strong competition• Government and red tape• Negative influences (friends, social networks)• Looking around at others• Family obligations (opportunity costs)• Complacency• Time commitment• Don’t want to wear all the hats

Where do ideas come from?

• Meeting a demand• From your current career (50%)• Solutions to problems• Passion• Grad class / education• Innovation, new applications & technologies• Improving efficiency• Other people. other business• Inspiration, values• Improving llives

Internal vs External

Which is better? Why?A. Outside-In. Looking for needs in the marketplace

and then relating those opportunities to your own capabilities as an entrepreneur.

PESTEL

B. Inside-Out. Evaluating your own capabilities and then looking at what new products or services you might be able to offer to the market.

How to Evaluate a New Venture?• Current sales• How much you are paying yourself• Competition• When will I see ROI, compared to other owners• Looney Tunes projections?• Comodity vs value add?• Money already spent• Product/Service Feaibility• Distribution plan• Operating agreements, Alliances• Resources (capital, PP&E) and what is needed• Available market, segmentation of market• Launch plan

-Personal interest/knowledge-Equity, Decision-making control-Vision/mission-My time-Projected margins-Team, reputation, experience*-Commitment-Risks-Protection-Timing-Threats-Growth rate