Entrepreneurship Chap 2
Entrepreneurship Chap 2
Entrepreneurship Chap 2
• Technical people
Step 1. Identify and Evaluate
the Opportunity (Contd.)
• Evaluation allows the entrepreneur to do a
risk-return assessment to find out if the
return is worth the risk.
• Cause of opportunity maybe:
– Technological change
– Market shift
– Government
– Competition
Step 1. Identify and Evaluate
the Opportunity (Contd.)
• Market size and the length of the window-
of-opportunity form the primary basis for
determining risks and rewards.
– Risks reflect the market, competition,
technology, and amount of capital involved.
– The amount of capital forms the basis for the
return and rewards.
– Follow on products become very important for
a firm expanding or diversifying
Step1. Identify and Evaluate
the Opportunity (Contd.)
• Finally the opportunity must fit the personal
skills and goals of the entrepreneur
• Opportunity Analysis is not a business plan,
it is typically:
– Shorter
– Focus on the opportunity not the entire venture
– Provide basis for deciding to act or not
Step1. Identify and Evaluate
the Opportunity (Contd.)
• Opportunity Analysis involves answering
the following questions:
– What market need does it satisfy?
– Your personal observations regarding the need?
– What social condition underlies the market
need?
– What market research data describes this need?
– What patents might be available to fulfill this
need
Step 1. Identify and Evaluate
the Opportunity (Contd.)
- What competition exists in the market?
- How would you describe behavior of the
competition?
- What does the international market look like?
- What does the international competition look
like
- Where is the money to be made in this
opportunity?
Step 2. Develop the Business
Plan
• Covered in greater detail in Chapter 7.
Consists of the following:
Title Page
Table of Contents
Executive Summary
1.0 Description of Business
2.0 Description of Industry
Step 2. Develop the Business
Plan
3.0 Marketing Plan
4.0 Financial Plan
5.0 Production Plan
6.0 Organization Plan
7.0 Operational Plan
8.0 Summary
Appendices (Exhibits)
Step 3. Determine the
Resources Required
• Evaluate the available resources
• Critical resources must be distinguished
from the helpful resources
• How the resources will be acquired
• Alternative suppliers along with their needs
should be identified
Step 4. Manage the Enterprise
• Implement a management style.
• Entrepreneurship within an
organization is called
Intrapreneurship
Corporate Versus Intrapreneurial Culture