3.

02 Entrepreneurship and the Entrepreneurial Process

Objective 3.02 Understand the entrepreneurship and the entrepreneurial process.

Entrepreneurship The process of starting and running ones own business

Entrepreneur
An entrepreneur is an individual who undertakes the risk associated with creating, organizing, and owning a business

Steps in the Entrepreneurial Process

1. Discovery 2. Concept Development 3. Resourcing 4. Actualization 5. Harvesting

Steps in the Entrepreneurial Process

1. Discovery: The stage in which the entrepreneur generates Consider ideas, your hobbies recognizes or skills opportunities, and studies the market Conduct Surveys
and questionnaires Consider consumer needs and wants

Study demographics

Steps in the Entrepreneurial Process

2. Concept Development:
Develop a business plan: a detailed proposal describing the business idea Choose business location Will a patent or trademark be required?

Steps in the Entrepreneurial Process

3. Resourcing: The stage in which the entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture Hire startup, etc
Apply for loans, grants and assistance

Identify potential investors

employees

Steps in the Entrepreneurial Process

4. Actualization: The
stage in which the entrepreneur operates the business and utilizes resources to achieve its goals/objectives.
$$ Grand Opening $$

Day-to-Day Operations

Steps in the Entrepreneurial Process

5. Harvesting: The
stage in which the entrepreneur decides on ventures future growth, development, or demise

Steps in the Entrepreneurial Process

5. Harvesting:
What is your 5-year plan? Consider Expansion: Possibly add multiple locations Providing different products/services What is your 10-year plan? Will you go public ? NYSE or NASDAQ

Entrepreneurship Key Terms

Key Term
Entrepreneur Entrepreneurship Business ethics Code of ethics Innovation Statement Opportunity Small business

Definition
An individual who undertakes the risk associated with creating, organizing, and owning a business The process of starting and operating ones own business
Applying principles of right and wrong to situations in the workplace

A systematic set of rules and procedures used to guide the behavior of an individual, a business, or a culture A new or different product A written description of the purpose of a company and the managements philosophy. An idea that has commercial value Sometimes referred to as mom and pop businesses. Small businesses are generally started to create jobs for the owners. The stage in which the entrepreneur generates ideas, recognizes opportunities, and determines the feasibility of ideas, markets, ventures, etc. Data that describes a group of people in terms of their age, marital status, family size, ethnic background, gender, education, and income The stage in the entrepreneurial process in which the entrepreneur plans the venture, identifies needed resources using a business plan, and identifies strategies to protect intellectual property

Discovery

Demographics

Concept Development

Entrepreneurship Key Terms

Key Term
Resourcing

Definition
The stage in which the entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture startup, etc A business undertaking involving risk

Venture Actualization Harvesting Business plan Executive summary Start-up resources Capital

The stage in which the entrepreneur operates the ventures and utilizes resources to achieve its goals/objectives The stage in which the entrepreneur decides on a ventures future growth, development, or demise A proposal that describes a new business A brief description of the key points of the business plan Capital and resources needed to start a business Wealth in the form of money or property, used or accumulated in a business by a person, partnership, or corporation A proposal that describes a new business
A brief description of the key points of the business plan Capital and resources needed to start a business

Business plan Executive summary Start-up resources