ENT 4000 - An introductionFrom idea to enterprise

What is entrepreneurship?

Entrepreneurship can be defined as an activity which involves the process of discovery and exploitation of a new opportunityEntrepreneurship defined (Scott Shane, 2003)

An entrepreneur is a person who undertakes the creation of an enterprise or business; a person who identify and exploit opportunities

Schumpeterian entrepreneurshipCreative destruction (creates economic disequilibrium)Requires new information InnovativeMore seldomInvolves creation (invention, etc.)

Kirznerian entrepreneurship Contributes to create market equilibriumDoes not require new information Less innovativeMore commonDoes not involve creation - limited to the discovery of an unmet demand in the market

An opportunity is a favorable juncture (point in time) of circumstances with a good chance for success or progress. It is the job of the entrepreneur to locate new ideas and to put them into action. Thus, entrepreneurship may be described as the identification and exploitation of previously unexploited opportunities.

TimelySolvableImportantProfitableFavorable Context

Like to do the tasksLike the challengeCommitted to do what is necessary

Skilled at the neededtasks

TheSweetSpotAn Attractive OpportunityInterests, Passions, CommitmentCapabilities & SkillsFinding the Right Opportunity

The capacity to see ventures through to fruitionThe capacity to identify opportunitiesThe capacity to co-ordinate resourcesErikson, T. Venture Capital Journal (2001)The concept of entrepreneurial capital

Entrepreneurial capital is a (multiplicative) function of entrepreneurial competence and entrepreneurial commitmentErikson, T. 2002. Journal of Business Venturing

The intellectual capital of an organization is the talents of its people, the efficacy of its management systems, the effectiveness of its customer and supplier relations, and the technological knowledge employed and shared among its people and processes.

In other words, IC = HC + OC + SCThat is, intellectual capital is a function of human capital, organisationsal capital, and social capital.

Products&ServicesThe (role of the) FirmOutputsInputsRaw MaterialsComponents &ModulesFinancial CapitalPhysical AssetsTechnologies

Transformation Based On:Intellectual CapitalEntrepreneurial Capital

Dynamic Capitalism is the process of wealth creation characterized by the dynamics of new, creative firms forming and growing and old, large firms declining and failing. Creative Destruction is the entrepreneurial activity of destroying old models and creating new models of doing business.

Principle 1The entrepreneur develops an enterprise with the purpose of creating wealth and prosperity for all participants investors, customers, suppliers, employees, and themselves using a combination of intellectual and entrepreneurial capital.

Complete the following tasks in order to select a favorable opportunity for yourself or your team.

Describe an opportunity that is attractive to you.

Describe the competencies and skills you and your team members possess.

Describe the passion and commitment you have for the opportunity.

Is this a good opportunity for you?