The Entrepreneurial Process

Dr Noor Muhammad

Model of Entrepreneur Process?

A model of the entrepreneurial process
PERSONAL

PERSONAL

SOCIOLOGICAL

PERSONAL

ORGANIZATIONAL

Achievement
Locus of Control
Ambiguity Tolerance

Risk Taking

Networks

Entrepreneur

Job Dissatisfaction

Teams
Parents

Leader

Risk Taking
Personal Values
Education

Education
Age
Gender

Family

Commitment

Team
Strategy
Structure
Culture
Products

Role Models

Vision

Experience
Opportunity recognition

INNOVATION

Job Loss

Manager

Advisors

Commitment
Resources

TRIGGERING EVENT

IMPLEMENTATION

GROWTH

ENVIRONMENT

ENVIRONMENT

ENVIRONMENT

Opportunities
Role Models
Creativity

Economy
Competition

Competitors
Customers
Suppliers
Investors
Bankers
Lawyers
Resources
Government policy

Resources
Incubator
Government policy

Economy
Based on Carol Moore's Model (Moore 1986)

Factors Influencing an Entrepreneur

Personal
Attributes

Higher internal locus of control

Desire for financial success
Desire to achieve self-realization
Desire for recognition
Joy of innovation
Risk tolerance

Environmental
Factors

Local, regional, or national attitudes

Social and cultural pressures for or against
risk taking
Access to entrepreneurial role models
Responsibilities to family and community

Remember: No single type of person is best suited for entrepreneurship.

Entrepreneurs come from all walks of life!

Before Committing, Entrepreneurs Must

1) Assess their own financial reality
Live with little or no salary?
What external financial commitments are there?
2) Identify key contacts in their networks
Take an inventory of the resources in ones network
3) Reach out to sources of free advice and feedback
Who can help or advise?

Doctrine of the Timmons Model

1) The Opportunity

Is there a clear customer need?

Is the timing right: team ready, market ready?
Combine these factors with the execution of the business plan to make an
idea an opportunity

2) The Lead Entrepreneur and Management Team

Experience within the proposed industry?
Investors prefer to see a track record of driving growth and profits
An A team with a B idea is almost always better than the opposite
3) The Resources
Capital, technology, equipment, and most importantly people
Low overhead, high productivity, and controlling, but not owning resources
Find ways to get things done faster, cheaper or better!

Launching a New Venture:

New Venture Creation and the
Entrepreneur

New Venture Creation

Students are expected to be able to:
1. Analyse and discuss relevant principles, methods and
challenges of business venture creation;
2. Translate a business idea into a written business plan;
3. Explain and defend a business plan to a panel of assessors.

Project Assessment
Component 1:
Individual Task

5%

Component 2:
Complete Project
Team Presentation
Submission Deadline: 31/03/2014

10%
5%

Your Project Journey

Ideas & Opportunity

Promoting the
Business

Growing the Business

Conducting Market
Research

Sources of External
Finance

Open Session

The Business Model

The Business Plan

Overview &
Preparation

Final Presentations