New Venture Thinking!

Entrepreneurship &! The Entrepreneurial Process"

Question:"

WHAT IS ENTREPRENEURSHIP?!

Invent stu"?!

Retire at 35?!

Raise venture capital?!

Save the world?!

[DEF] Entrepreneurship"

"

Entrepreneurship is the act of exploring and expressing creative potential.!

[DEF] Entrepreneurship"

"

Entrepreneurship is the act of building sustainable value systems."

! It is a key driver of social, economic, and human development! ! It is a key proponent of socio-systemic change!

What makes an Entrepreneur?!

Set of Genes!

?!

Set of Tools!

cc Pierre-Olivier! Guido Daniele"

Entrepreneurship is a perspective!

Key Assumptions of the Entrepreneurial Perspective!

! Reality is malleable" ! Human beings can participate in its formation and transformation" ! I have the potential to participate in this human process" ! The development of potentials and transformation of malleable reality is a constant process"

Entrepreneurship in action"

THE ENTREPRENEURIAL PROCESS!

! " The entrepreneurial process is a term coined by academia to describe the new venture creation that is associated with entrepreneurial activity.! ! ! !
! - Hisrich and Peters (1992)"

Entrepreneurial Process!

Cox, Mueller, and Moss (2002) "

Entrepreneurial Process!

Task 1: Conceive a unique idea for a business Task 2: Identify market opportunities for a new business

Cox, Mueller, and Moss (2002) "

Entrepreneurial Process!

Task 1: Conceive a unique idea for a business Task 2: Identify market opportunities for a new business

Task 3: Plan a new business Task 4: Write a formal business plan

Cox, Mueller, and Moss (2002) "

Entrepreneurial Process!

Task 1: Conceive a unique idea for a business Task 2: Identify market opportunities for a new business

Task 3: Plan a new business Task 4: Write a formal business plan

Task 5: Raise money to start a business Task 6: Convince others to invest in your business Task 7: Convince bank to lend you money to start business Task 8: Convince others to work in your new business

Cox, Mueller, and Moss (2002) "

Entrepreneurial Process!

Task 1: Conceive a unique idea for a business Task 2: Identify market opportunities for a new business

Task 3: Plan a new business Task 4: Write a formal business plan

Task 5: Raise money to start a business Task 6: Convince others to invest in your business Task 7: Convince bank to lend you money to start business Task 8: Convince others to work in your new business

Task 9: Manage a small business Task 10: Grow a successful business

Cox, Mueller, and Moss (2002) "

cc Walkingsf!

is it really this linear?!

While Cox and Muellers framework has by many been accepted as representative of the new venture creation process (Kickul, Gundry et al. 2009), others critique its linear and static nature (Jouini, Paris et al. 2009) and suggest that it ignores the ongoing learning loop that takes place in the entrepreneurial process (Minniti and Bygrave 2001).!

- Lesevic (2009)"

! Lumpkin et al (2004) applied theory of creativity to devise an iterative model of the entrepreneurial process" ! Consists of two phases: "
! Discovery phase" ! Formation phase"
"

! Discovery phase: drives insight"

! includes preparation, incubation and recognition of opportunity! (Csikszentmihalyi 1996) "

! Formation phase: drives concretisation"

! includes evaluation and elaboration of opportunity (Jouini, Paris et al. 2009)"
"

! Dynamic moving between two phases through double-loop learning # (Argyris and Schn 1976)" ! Hence: learning is essential to the entrepreneurial process"
"

Learning is a constant movement # it is not based on knowledge.! !

- Jiddu Krishnamurti"

Discovery-driven process!

Discovery-driven process!

Discovery-driven process!

Discovery-driven process!

Your world now!

Your world now!

Your world now!

Learning!

Shes totally in love with my

personality

Knowledge-to-Assumption Ratio!

K-o-A Ratio"
! Knowledge-to-Assumption ratio"
! Entrepreneurs operate in a space of high uncertainty" ! Where theres uncertainty there will be assumptions about the current and future states of reality" ! Discovery-driven process: Test your assumptions to improve your knowledge and lower uncertainty!"

" ! One of the key activities of the entrepreneurial process is the improvement of that ratio by:"
! testing assumptions through action" ! driving knowledge to action"

WEEK 2: CONVERSATION!
" -! How do you feel about the concepts presented today? What do you take away?" " -! Entrepreneurs see the world with tainted eyes. Discuss." " -! Think about a situation from an entrepreneurs life! in which douple-loop learning could be useful. What do you make of Krishnamurtis quote?" -! How do you learn a new perspective?" "