S1: Experiencing Entrepreneurship: Responsible for half of all innovation.

Credited with 95 percent of all radical innovation. Led to the creation of major
new inventions and technologies

Timmons Model

New Venture Creation

Creates economic and social mobility. Is opportunity-centered and rewards
talent and performance. Entrepreneurship is not about religion, gender, skin
color, social class, or national origin. Women and a number of ethnic and
racial groups are excelling at entrepreneurship
A View of Entrepreneurship
A way of thinking, reasoning, and acting that is opportunity obsessed, holistic
in approach, and leadership balanced. At the core, is the creation and/or
recognition of opportunities and the ability to seize opportunities
The Entrepreneurship Process: Emergence, Start, Grow, Manage, Harvest
Develop an Entrepreneurial Mindset: helps to succeed in all business
endeavors. An entrepreneurial mindset is not only needed for starting a
business, but also for excelling as an employee in an existing business
regardless of organization type, size, or age. How are you thinking and acting?
Bruyat-Julien: Can we use the term entrepreneur at this stage, when there is intent but as yet no new value creation? We do not think so. At the
beginning of the process: Individual (I) New value creation (NVC), Then at the same time, constrained and created by the object constructed:
Individual (I) New value creation (NVC). This is an entrepreneurial process located within its environment and time.
Jaruzelski - R&D spending: how well innovation investments actually pay off. As a consequence, R&D is often seen as a black box, where large
sums of money go in and innovative products and services only sometimes come out. Align what you do in R&D with what you do in business
Three types of innovation strategies: Need Seekers (superior understanding about customers: Apple), Market Readers (creating value through
incremental innovations to products already proven: Samsung), Technology Drivers (leverage their R&D investments:Siemens)
S2: Creativity & Cocreation: Being an entrepreneur would enhance your life and feed your creative energies. Critical aspects of the
entrepreneurial mind. Crativity: Left (logic, sequential, language) vs Right brain (creativity, imagination, arts).
Gemmell, Socio-Cognitive Dynamics of Entrepreneur: technology entrepreneurs use social behaviors, techniques, and cognitive processes to
generate, validate, and refine ideas for new products, occurs when trusted partners exchange and refine ideas through shared cognition.
Ward, Cognition, creativity, and entrepreneurship: Paradox: Humans have the capacity to move beyond what exists to generate and implement
new ideas. Attempts at creativity reveal unnecessarily limited thinking. Conceptual combination: Combining concepts may be an attribute of the
creative, but it is also a basic capacity available. example, new word combinations (mouse pad). Analogical reasoning: transformational power
of analogies derives, at least in part, from the fact that good analogies connect the familiar and novel domains at very deep levels.
S3: Opportunity Discovery & Creation
On being different (diff. and positioning): Companies shouldnt treat citizens only as customers, should take responsibility for trade-off to society.
Entrepreneurship, innovation and leadership: Being part of a community (ingroup versus outgroup). Seth Godin: Entrepreneurs have to focus on
the tribe/community they wanna lead. Being aware that you are part of a tribe is an important starting point to understand the role of leadership.
Customer Journey as innovation opportunity: Getting to know your customer more deeply can lead to more business opportunities.
Innovation can also be stimulated by getting more inside information about the customer. See Customer Journey (Zaltmann).
Timmons & Adams - The Opportunity: Creating, Shaping, Recognizing, Seizing: Most new ventures are works in process and art, Speed, reflex,
and adaptability are crucial, key to succeeding is failing quickly and recouping quickly, best entrepreneurs specialize in making new mistakes.
Baron - Opportunity Recognition as Pattern Recognition: How do entrepreneurs identify opportunities for new business ventures? using
cognitive frameworks to perceive connections between unrelated events or trends in the external world ("connect the dots" bet ween changes in
technology, demographics, etc.). This pattern recognition perspective on opportunity identification is useful:
First, 3 factors play a role in opportunity recognition: engaging in search for opportunities; alertness to them; and prior knowledge of an industry.
Also helps explain interrelations between these factors. Second, a pattern recognition perspective helps explain why some persons identify
specific opportunities. Third, a pattern recognition framework suggests ways which entrepreneurs can be trained to recognize opportunities.
Baron: Proposition 1: Opportunities emerge from a pattern of changing conditions in PEST and demographic because of a confluence of
conditions which didnt exist previously, but is now present. Baron: Proposition 2: Recognition of opportunities depends on cognitive structures
through previous life experience. Serve as "templates" that enable specific individuals to perceive connections between unrelated changes or
events. In other words, they provide the cognitive basis for "connecting the dots" into patterns suggestive of new business opportunities
S4: Opportunity Validation and Selection
Timmons & Adams - Seizing Venture Opportunities: 2 screening methodologies, Quick Screen and Venture Opportunity Screening Exercises
(VOSE), that can help determine whether ideas are potential opportunities. Apply the opportunity criteria, articulate with creativity and depth,
determine whether best idea has sufficient potential and assess whether believe can sufficiently alter the idea and strategy to create a good fit.
Ardichvili - A theory of entrep. opportunity ID & development: 8 phases of Dubins theory building: 1: units of the theory, 2: laws of interaction, 3:
boundaries of the theory, 4: system states of the theory, 5: propositions of the theory, 6: empirical indicators, 7: hypotheses, and 8: research
Entrepreneurs identify business opportunities to create and deliver value for stakeholders in prospective ventures. Ability t o spot suboptimal
deployment of resources may help an entrepreneur begin to develop an opportunity

The creation of successful businesses follows a successful opportunity development process, is cyclical and iterative, could also lead to
recognition of additional opportunities or adjustments
Factors that influence core process of opportunity recognition and business formation: 1. entrepreneurial alertness; 2. information asymmetry
and prior knowledge; 3. social networks; 4. personality traits, including optimism and self-efficacy, and creativity; and 5. type of opportunity itself.
Corbett - Experiential Learning Within the of Opportunity Identification and Exploitation: Why do some people recognize opportunities while
others don't? because of knowledge, cognition, and creativity. Hayek stated that knowledge is not given to anyone in totality. Cognition, in
contrast to managers, entrepreneurs use heuristics (mental shortcuts) and biases in their decision making, connection between knowledge and
cognition, Ward add the concept of creativity.
Csikszentmihalyis elements of creativity: preparation (not planned nor intentional), incubation (cognitively thinkg about idea to solve a problem),
insight (Aha! moment), evaluation (assess whether the concept is worth pursuing), and elaboration (the creative insight actually realized).
Kolb defines experiential learning as a process by which knowledge is created through the transformation of experience.
S5: Value Creation and Business Models
Value creation: Value chain (Porter: generic description of activities, identifying activities, analyzing competitive position and ways to enhance
value or decrease cost in value activities), Value network (set of inter-organizational relationships that are necessary to create a product or
service: Understanding cost/price structures, Identifying profit pools, The make or buy decision and Partnering and relationships), Value shop
Business models: Business model categories, definitions, canvas.
Clinton & Whisnant - Business Model Behavior: Whati s a business model? Osterwalder and Pigneur, Business Model Generation.3 It defines
business models as the fundamental structures for how companies create, deliver and capture value.
Discern 20 business model innovations in 5 categories related to sustainability:

Environmental Impact: Closed-Loop Production, Physical to Virtual, Produce on Demand, Re-materialization

Social Innovation: Buy One-Give One, Cooperative Ownership, Inclusive Sourcing

Base of the Pyramid: Building a Marketplace, Differential Pricing, Microfinance, Micro-Franchise

Financing Innovation: Crowdfunding, Freemium, Innovative Product Financing, Pay for Success, Subscription Model

Diverse Impact: Alternative Marketplace, Behavior Change, Product as a Service, Shared Resource
S6: Mobilizing resources. How entrepreneurs & financial backers get the odds for success in their favor, defying the familiar pattern of failure.
Klotz - New Venture Team (NVT): define a new venture as a firm that is in its early stages, entrepreneurial teams as two or more individuals
who have a significant financial interest and participate actively in the development of the enterprise.
NVT describe the group of individuals that is chiefly responsible for the strategic decision making and ongoing operations of a new venture.
Reasons why the new venture presents a Unique Nature: First, there are few substitutes and blockers of leadership in new ventures. Second,
new venture context is characteristic of weak social situations which there are few established norms, Thus, NVTs shape the culture of the
organization. Third, because NVTs have arguably greater managerial discretion and wider latitude of action than most teams .
NVTs has employed an upper echelons (UE) from strategic management, exploring the relationship of top man agement team TMT
characteristics and behaviors with firm performance.
NVT Inputs: most NVT research has examined the initial inputs of such teams. NVT Prior Experience: NVT members, ventures are often
founded by teams of friends, family, work colleagues sharing similar backgrounds and experiences. Diversity prior experience as well. NVT
Social Capital: Networks outside the NVT, connections and linkages to key resource partners play an important role in the identification of
entrepreneurial opportunities. Additional NVT Inputs: ethnic immigrants on NVTs positively associates with the adoption of a prospector
strategy, new ventures with more founding members holding a balanced amount of equity in the firm achieved superior IPO performance.
NVT Mediators: Team processes refer to activities through which members work together to convert resources into meaningful outcomes,
Emergent states refer to cognitive and affective properties that teams possess at any given point in time.
NVT Outcomes: three most commonly used outcome variables used in the studies reviewed are growth in sales (34%), profitability (32%), and
number of employees (15%). Just over half of these studies used at least one firm performance outcome as an indicator of NVT effectiveness
S7: Open Innovation & Strategy Development Chesbrough: External knowledge orientation based on internal knowledge. Benefits for large
companies: sharing costs, sharing risks, faster product introduction, financial rewards for licensing, IP knowledge used by 3rd parties.
S8: Innovation and IP (Intellectual Property):
Protecting innovation: Firms must decide whether and how to protect their tech innovations. Helps a firm retain control. Sometimes not
protecting a technology is to the firms advantage, may encourage others to support the technology and increase its likelihood.
Appropriability: How a firm is able to capture the rents from its innovation. Determined by how easily or quickly competitors can copy. Some are
difficult to copy. How: Patents for New inventions, Copyright for Original artisticor creative forms, Trade marks for Distinctive identification of
products or services, Registered designs for External appearances, Trade secrets for Valuable information not known to the public.
Patent Laws around the World: Paris Convention for the Protection of Industrial Property, Patent Cooperation Treaty (PCT), Berne Convention.
Advantages of Protection: greater rent appropriability, invest in other value chain things, firm control over the evolution of the technology
Advantages of Diffusion: May accrue more rapid adoptions if produced by multiple firms, Technology might be improved by other firms.
S9: Growth & Internationalization
Growth: Entrepreneurs doesnt experience substantial growth due to many dont aspire to grow or fail. Fonbrun: Rapid growth in employment
creates managerial problems growing firms are challenged to strike a balance between multiple pulls when designing their managerial systems.
Going international: Incremental process of acquisition and use of knowledge on foreign markets. Should be gradually expanded. But some
ventures dont have this problem because they were international from start. Moen: Born Global or Gradual Global?