Technology Ventures: From Idea to OpportunityChapter 1: Introduction

ENT 4000 - An introduction

From idea to enterprise

Technology Ventures: From Idea to OpportunityChapter 1: concept

What is entrepreneurship?

Technology Ventures: From Idea to OpportunityChapter 1: Introduction

Entrepreneurship can be defined as an activity which involves the process of discovery and exploitation of a new opportunity…

Entrepreneurship defined

(Scott Shane, 2003)

Technology Ventures: From Idea to OpportunityChapter 1: concept

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

• Schumpeterian entrepreneurship– Creative

destruction (creates economic disequilibrium)

– Requires new information

– Innovative– More seldom– Involves creation

(invention, etc.)

• Kirznerian entrepreneurship – Contributes to

create market equilibrium

– Does not require new information

– Less innovative– More common– Does not involve

creation - limited to the discovery of an unmet demand in the market

Technology Ventures: From Idea to OpportunityChapter 1: concept

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.

Technology Ventures: From Idea to OpportunityChapter 1: Figure 1.1 - Finding the Right Opportunity

• Timely

• Solvable

• Important

• Profitable

• Favorable Context

• Like to do the tasks

• Like the challenge

• Committed to do what is necessary

• Skilled at the neededtasks

TheSweetSpot

An Attractive Opportunity

Interests, Passions, Commitment Capabilities & Skills

Finding the Right Opportunity

Technology Ventures: From Idea to OpportunityChapter 1: Exercise 1.3

The capacity to see ventures through to fruition

The capacity to identify opportunities

The c

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o c

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Erikson, T. Venture Capital Journal (2001)

The concept of entrepreneurial capital

Technology Ventures: From Idea to OpportunityChapter 1: concept

Entrepreneurial capital is a (multiplicative) function of entrepreneurial competence and entrepreneurial commitment

Erikson, T. 2002. Journal of Business Venturing

Technology Ventures: From Idea to OpportunityChapter 1: concept

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.

Technology Ventures: From Idea to OpportunityChapter 1: concept

In other words, IC = HC + OC + SC

That is, intellectual capital is a function of human capital, organisationsal capital, and social capital.

Technology Ventures: From Idea to OpportunityChapter 1: Figure 1.3 – Transforming available inputs into desired outputs

Transformation Based On:Intellectual CapitalEntrepreneurial Capital

Products

&

Services

The (role of the) Firm OutputsInputs

Raw Materials

Components &Modules

Financial Capital

Physical Assets

Technologies

Technology Ventures: From Idea to OpportunityChapter 1: concept

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.

Technology Ventures: From Idea to OpportunityChapter 1: Principle 1

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.

Technology Ventures: From Idea to OpportunityChapter 1: Exercise 1.3

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

1.Describe an opportunity that is attractive to you.

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

3.Describe the passion and commitment you have for the opportunity.

4.Is this a good opportunity for you?