Entrepreneurship, the process of creating a new business or organization, can occur in various contexts, including for-profit businesses, non-profit organizations, and government agencies (Saylor.org, 2023). In the context of government, entrepreneurship can drive innovation and efficiency in public services, while in non-profits, it can lead to the development of new programs and services that address social issues (Saylor.org, 2023). Social entrepreneurship, a specific type of entrepreneurship, focuses on creating social value and addressing societal problems through business ventures (Saylor.org, 2023).
Key Facts
- Idea Generation: This is the initial phase where entrepreneurs come up with new ideas or identify opportunities for a business venture.
- Opportunity Evaluation: Once an idea is generated, entrepreneurs evaluate the potential of the opportunity by assessing its feasibility, market demand, competition, and potential risks.
- Planning: In this phase, entrepreneurs develop a detailed business plan that outlines the objectives, strategies, financial projections, and operational requirements of the venture.
- Company Formation/Launch: After the planning phase, entrepreneurs take the necessary steps to legally establish their company, secure funding, set up operations, and launch their products or services.
- Growth: Once the company is launched, entrepreneurs focus on growing their business by expanding their customer base, increasing sales, improving operations, and exploring new opportunities for innovation and expansion.
The entrepreneurial process consists of three essential facets: opportunity identification, venture planning and preparation, and resourcing the venture and taking action (Saylor.org, 2023). Opportunity identification involves identifying and evaluating potential business opportunities, while venture planning and preparation entail developing a business plan and securing the necessary resources (Saylor.org, 2023). Resourcing the venture and taking action involve acquiring the necessary financing, assembling a team, and implementing the business plan (Saylor.org, 2023).
Levers of Opportunity Identification
Entrepreneurs can identify opportunities using various levers, including:
- Elimination: Removing or reducing existing features or costs from a product or service.
- Reduction: Minimizing the consumption of resources or time associated with a product or service.
- Creation: Introducing new features or benefits to a product or service.
- Raising: Enhancing the quality or value of a product or service.
- Keeping: Maintaining key features or benefits of a product or service that customers value (Saylor.org, 2023).
Market Disruption
Firms can disrupt existing markets through different strategies:
- New-market creation: Identifying and targeting a new customer segment with a unique product or service.
- New-market disruption: Entering an existing market with a product or service that offers a different value proposition and creates a new market segment.
- Low-end disruption: Targeting the low-end of an existing market with a product or service that offers a lower price and fewer features (Saylor.org, 2023).
References:
- Duke Fuqua School of Business. (n.d.). The Entrepreneurial Process. Retrieved from https://sites.fuqua.duke.edu/dukeven/selected-topics/the-entrepreneurial-process/
- Saylor.org. (2023). What Do Entrepreneurs Do? Retrieved from https://saylordotorg.github.io/text_international-business/s15-02-what-do-entrepreneurs-do.html
- Kwantlen Polytechnic University. (n.d.). Entrepreneurial Process. Retrieved from https://kpu.pressbooks.pub/introtoentrepreneurship/chapter/entrepreneurial-process/
FAQs
What is the entrepreneurial process?
The entrepreneurial process involves identifying an opportunity, developing a business plan, and acquiring the resources necessary to launch and operate a new venture.
What are the key components of the entrepreneurial process?
The key components of the entrepreneurial process include opportunity identification, venture planning and preparation, and resourcing the venture and taking action.
What is opportunity identification?
Opportunity identification involves identifying and evaluating potential business opportunities.
What is venture planning and preparation?
Venture planning and preparation entail developing a business plan and securing the necessary resources.
What is resourcing the venture and taking action?
Resourcing the venture and taking action involve acquiring the necessary financing, assembling a team, and implementing the business plan.
What are some of the challenges entrepreneurs face during the entrepreneurial process?
Entrepreneurs may face challenges such as identifying viable business opportunities, securing funding, building a strong team, and navigating market competition.
What are some of the rewards of being an entrepreneur?
Entrepreneurs can experience rewards such as the satisfaction of creating something new, the opportunity for personal and professional growth, and the potential for financial success.
What are some tips for aspiring entrepreneurs?
Aspiring entrepreneurs should focus on developing a strong business idea, conducting thorough market research, building a solid team, and being prepared to face challenges and adapt to change.