Final Review - What is entrepreneurship? An entrepreneur:...

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Unformatted text preview: What is entrepreneurship? An entrepreneur: One who organizes, manages, assumes the risks of a business / enterprise takes risk. COMBINES various input factors (product, process, market, organization form) in an innovative manner to generate value to the customer exceeding the cost of the input factors, resulting in the creation of wealth o PREDICATED on change. TECHNOLOGICAL POLITICAL & INSTITUTIONAL SOCIAL & DEMOGRAPHIC New firms do best in conditions of: a. High levels of technological innovation (THIS IS NOW) b. Rapidly growing markets c. Young industries (ESTABLISHED FIRMS ARE POWERFUL but sluggish and inflexible .) Entrepreneurial Phases 1. Opportunity recognition Decision to proceed 2. Amass resources 3. Launch business 4. Build up the business 5. Reap the rewards Techniques for opportunity recognition Entrepreneurs are autonomous , and are able to follow their ideas and do what they want. This allows them to discover, and follow any business ideas they may have. Build a broad and rich knowledge base Organize knowledge Increase access to information Create connections between the knowledge you have Build practical intelligence Temper eagerness for hits with wariness of false alarms. Entrepreneurs do better when they launch products based on novel solutions to customer needs in new markets. Capital Questions 60% need less than $5,000 to get started. 3% need more than $100,000 HOW DO I GET THE MONEY? Friends, Fools, Family Angels 1 Individualist being able to think on your own. SAY WHAT YOU MEAN , MEAN WHAT YOU SAY. Autonomous being able to succeed on your own MEAN WHAT YOU DO , DO WHAT YOU MEAN. Investors Looking for: 1. Motivation 2. Passion 3. Honesty 4. Experience 5. Large market 6. Appropriate strategy 7. Compelling product description Business plan 1. Background 2. Marketing 3. Competition 4. Development 5. Management 6. Financial information 7. Risk factors 8. Harvest or exit 9. Scheduling & milestones 10. Conclusion Successful Startups Intellectual property & unique resources Startup team o Complementary & similar o Relevant experience & skills o Networks o Balanced personality traits Board of Directors KEY HIRES o CEO, CFO, CIO o Acquiring quickly needed experience and expertise Investors, consultants, government programs Maintain motivation - EXPECTANCY THEORY o Provide training & resources o Recognize & reward good performance o Provide rewards employees value o Job design structure jobs so they increase peoples interest Retention strategies (LESS TURNOVER) o Developing excellent reward systems Merit pay plans Bonuses, awards, stock options Team-based incentives Profit sharing ESOP HIGH LEVEL OF LOYALTY 2 Improve group decisions o Devils advocacy o Avoiding group think List pertinent information before beginning Appoint a sergeant-at-arms Resolving conflict Manage stress...
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This note was uploaded on 05/07/2008 for the course AEM 1200 taught by Professor Perez,p.d. during the Fall '06 term at Cornell University (Engineering School).

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Final Review - What is entrepreneurship? An entrepreneur:...

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