Discuss whole process of the entrepreneurial process. Explain the specific rules of a.) opportunities b.) resource c.) team and discuss this elements related to each other.
Through the Entrepreneurial Process, it is important to understand each component, or driving force of the Timmons Model. We begin with a discussion of opportunity.
THE OPPORTUNITY: Identification and Evaluation
At the heart of the entrepreneurial process is the Opportunity. Generally, entrepreneurs possess distinct cognitive processing skills and capacity that aid opportunity recognition and exploitation. It is focused on the on the individuals prosperity to recognized opportunity through a process of discovery and posited that entrepreneurs are alert individuals that able to identify opportunities when markets are of disequilibrium.
In short, the greater the growth, size, durability and robustness of the gross and net margins and free cash flow, the greater the opportunity. The more imperfect the market, the greater the opportunity. The greater the rate of change, the discontinuities, and chaos, the greater is the opportunity. The greater the inconsistencies in existing service and quality, in lead times and lag times, and the greater the vacuums and gaps in information and knowledge, the greater is the opportunity. Assuming that the opportunity is present, successful opportunity capture depends on the opportunity resource base.
RESOURCES: Creative and Parsimonious
The type of resource needed for new venture creation goes beyond the demand for financial resources; thinking cash first is often the demise of the new venture. Gathering other, more specific, resources in a creative fashion will often be a source of competitive differentiation. However, the goal is to develop resources that are valuable, inimitable, durable and value capturing leading to competitive superiority. For the new venture, resources evolve from bootstrapped, and continuously upgraded.
THE ENTREPRENEURIAL TEAM
The model of team formation, like resources previously discussed, must be mapped to the opportunity. Different modes of entrepreneurial team formation exist. First, the lead entrepreneur has the business idea and then builds a team to develop the new venture. Second, a team of entrepreneurs recognize an opportunity and develops the idea to fruition. Finally, team is developed over a period of time. As with the discussion on resources, the ability to develop a high performing entrepreneurial team is often defend on the lead entrepreneur's social network. That the diversity of an entrepreneur's network is correlated to the scope of perceived opportunities available. Strong ties are considered to be direct relationships such as family, friends, and colleagues. Conversely, weak ties are indirect relationships such as venture capitalist, trade association and banks. It has been argued that too many strong ties and not enough weak ties can limit the entrepreneur and his potential for resource acquisition because strong ties are often with like-minded individuals.
Leave a Reply