CH.1 Entrepreneurship: A Field, an Activity, and a Way of Life
Define Entrepreneurship as a field of business.
Entrepreneurship, as a field of business, seeks to understand how opportunities to create
(e.g., new products or services, new markets, new production processes
or raw materials, new ways of organizing existing technologies) arise and are discovered
or created by
, who then use various means to
exploit or develop
them, thus producing a wide range of effects.
Identify key activities that differentiate entrepreneurs from non-entrepreneurs.
Identifying an opportunity
that is potentially valuable in the sense that it
can be exploited in practical business terms and yield sustainable profits.
Exploiting or developing this opportunity
Being able to
run a new business successfully
after it comes into
Describe the process perspective of entrepreneurship. List and explain the major phases
of this process. What are the activities involved in each phase?
Entrepreneurship is a process that unfolds over time and moves through
distinct but closely interrelated phases.
Key phases in this process:
Recognition of an opportunity
Opportunities for new ventures often emerge out of changes in a
wide range of economic, technological, governmental, and social
factors. Even though these trends and changes may seem, at first
glance, to be related, successful entrepreneurs perceive meaningful
patterns that point to potentially profitable business opportunities.
The opportunity is the potential to create something new that
comes from either macro factors, policies, new knowledge, new
technology, or own individual discoveries. The greater the
opportunity, the greater the reward.
Deciding to Proceed and Assembling the Essential Resources
An initial decision to preceed – to do something active about the
idea or opportunity. Specific individuals make this decision and act
Entrepreneurs must assemble a wide array of required
Basic information (about markets, competitors,
environmental and legal issues)
Human resources (partners, initial employees)
Gathering these resources is one of the most crucial phases of
Making the linkage from the third person opportunity to first