The empires of the future are the empires of the mind.

Winston Churchill

Summary
What enables global capitalism? The entrepreneur provides the creative force in order for capitalism (free enterprise) to work. Entrepreneurs strive to make a difference in our world and contribute to its betterment. They are also motivated by achievement, independence, and the accumulation of wealth.

Chapter 1: Summary

Technology Ventures: From Idea to Opportunity

An entrepreneur is a person who undertakes the creation of an enterprise or business that has the chance of profit (or success).

Chapter 1: concept

Technology Ventures: From Idea to Opportunity

For an entrepreneur, a challenge is a call to respond to a difficult task and the commitment to undertake the required enterprise.

Chapter 1: concept

Technology Ventures: From Idea to Opportunity

For an entrepreneur, a challenge is a call to respond to a difficult task and the commitment to undertake the required enterprise.
The Elements of Overcoming a Challenge

Able to deal with a series of tough issues Ability to create solutions and work to perfect them Can handle many tasks simultaneously Resiliency in the face of set-backs Willingness to work hard and not expect easy solutions Possess well-developed problem solving skills Able to learn and acquire the necessary skills for the tasks at hand

Chapter 1: Table 1.2

Technology Ventures: From Idea to Opportunity

An opportunity is a favorable juncture of circumstances with a good chance for success or progress. It is the job of the entrepreneur to locate new ideas and to put them into action. Thus, entrepreneurship may be described as the identification and exploitation of previously unexploited opportunities.

Chapter 1: concept

Technology Ventures: From Idea to Opportunity

An Entrepreneur Test: Are you an entrepreneur? Answer each question by checking Yes or No:

When I am faced with a challenge, I am confident that I can work through it I want to be financially independent and be rewarded for my accomplishments Trying something new is attractive, even if the risk of failure is significant I'd prefer to gain independence and control my destiny Building a new enterprise is important to me My experiences during my youth and early career have shown me the benefits of starting a new enterprise Starting a new business some day soon is always in my thoughts I like working with others and can provide leadership when called upon Our society and my family provide a strong, supportive base for my initiatives I possess good technical skills and strong relationship skills in the industry I wish to enter.

Yes
___ ___ ___ ___ ___ ___ ___ ___ ___

No

___ ___ ___ ___ ___ ___ ___ ___ ___

Add your total score for Yes and No:

___
___

___
___

Seven or more Yes answers indicate that you may be ready to act as an entrepreneur in the near future.
Chapter 1: Table 1-3 Technology Ventures: From Idea to Opportunity

An Attractive Opportunity

Timely Solvable Important Profitable Favorable Context

Finding the Right Opportunity

The Sweet Spot

Like to do the tasks Like the challenge Committed to do what is necessary Skilled at the needed tasks

Interests, Passions, Commitment

Chapter 1: Figure 1.1 - Finding the Right Opportunity

Capabilities & Skills

Technology Ventures: From Idea to Opportunity

Entrepreneurial Capital EC = Ecomp x Ecomm Ecomp = Entrepreneurial competence is the ability to:
1) to recognize and envision taking advantage of opportunity and 2) to access and manage the necessary resources to actually take advantage of the opportunity

Ecomm = Entrepreneurial commitment is a dedication

of the time and energy necessary to bring the enterprise to initiation and fruition.
Chapter 1: Entrepreneurial Capital Technology Ventures: From Idea to Opportunity

Economic Value = Opportunity x Entrepreneurial Capital

After T years the market value is: MV = M x C x EV = M x C x Ecomp x Ecomm

where: M = management efficiency and effectiveness C = context

Chapter 1: Economic Value

Technology Ventures: From Idea to Opportunity

The intellectual capital of an organization is the talents of its people, the efficacy of its management systems, the effectiveness of its customer and supplier relations, and the technological knowledge employed and shared among its people and processes.

Chapter 1: concept

Technology Ventures: From Idea to Opportunity

Natural Capital

Economy Economy Beneficial Outputs

Financial Capital

Entrepreneurs as agents of progress

Undesired Waste Outputs

Intellectual Capital

Chapter 1: Figure 1.2 A Model of the Economy

Technology Ventures: From Idea to Opportunity

Inputs
Raw Materials Components & Modules Financial Capital Physical Assets Technologies

The Firm

Outputs

Transformation Based On: Intellectual Capital Entrepreneurial Capital

Products

&
Services

Chapter 1: Figure 1.3 Transforming available inputs into desired outputs

Technology Ventures: From Idea to Opportunity

+
x (a)

y x

(b)

Prosperity

+
+

Entrepreneurial Activity

Causal Diagram
a) y increases as x increases b) y decreases as x decreases

Intellectual Capital

Entrepreneurial Capital

c) Entrepreneurial activity leads to increasing prosperity

(c)

Chapter 1: Figure 1.4 Causal Diagram

Technology Ventures: From Idea to Opportunity

THE FIRM'SIntellectual INTELLECTUAL CAPITAL The Firms Capital Human Capital Human Capital Organizational Capital Organizational Social Capital Social Capital

Capital

Society Firm's Mission and Purpose

Workers and Associates

Market

Customers

Technology Suppliers

Competitors

A firms theory of its business is how it understands its total activities, resources and relationships.

Chapter 1: Figure 1.5

Technology Ventures: From Idea to Opportunity

Dynamic Capitalism is the process of wealth creation characterized by the dynamics of new, creative firms forming and growing and old, large firms declining and failing. Creative Destruction is the entrepreneurial activity of destroying old models and creating new models of doing business.

Chapter 1: concept

Technology Ventures: From Idea to Opportunity

Principle 1 The entrepreneur develops an enterprise with the purpose of creating wealth and prosperity for all participants investors, customers, suppliers, employees, and themselves using a combination of intellectual and entrepreneurial capital.

Chapter 1: Principle 1

Technology Ventures: From Idea to Opportunity

VENTURE CHALLENGE
Select a high-potential opportunity that interests you and then use it for the venture challenge exercises at the end of each chapter. For example, you might consider one of these current trends in science and technology: mobile data applications, internet telephony, video podcasting, web services, nanotechnology, clean technologies (including fuel cell, battery and solar), pandemic flu and biodefense treatments, and advancements in stem cell research. 1) Describe the opportunity that attracts you and why you think it is a new venture opportunity. 2) Describe the competencies and skills you and your team members possess. 3) What important stakeholders will you need to be successful? 4) Describe the passion and commitment you have for the opportunity. 5) Is this a good opportunity for you?

Chapter 1: Venture Challenge

Technology Ventures: From Idea to Opportunity

DVD Video
The Genesis of Palm Computer Jeff Hawkins (Palm Computer)

Chapter 1: DVD Video

Technology Ventures: From Idea to Opportunity