ebt 3.02 five stages of the entrepreneurial process
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five Stages of the Entrepreneurial ProcessTRANSCRIPT
3.02 Entrepreneurship and the Entrepreneurial Process
Objective 3.02 Objective 3.02 Understand the entrepreneurship and the entrepreneurial
process.
EntrepreneurshipEntrepreneurship
• The process of The process of starting and starting and running one’s running one’s own businessown business
EntrepreneurEntrepreneur
• An entrepreneur is an An entrepreneur is an individual individual who who undertakes the risk associated with undertakes the risk associated with creating, organizing, and owning a creating, organizing, and owning a businessbusiness
Steps in the Entrepreneurial Steps in the Entrepreneurial ProcessProcess
1.1. DiscoveryDiscovery
2.2. Concept Concept DevelopmentDevelopment
3.3. ResourcingResourcing
4.4. ActualizationActualization
5.5. HarvestingHarvesting
Steps in the Entrepreneurial Steps in the Entrepreneurial ProcessProcess
11. . DiscoveryDiscovery:: The stage in which the The stage in which the entrepreneur entrepreneur generates ideasgenerates ideas, , recognizes opportunitiesrecognizes opportunities, and , and studiesstudies the marketthe market
Innovation
Opportunity
DiscoveryDiscovery
Consider your hobbies or skills
Consider consumer needs and wants
Conduct Surveys and questionnaires – test the
market Study demographics
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Steps in the Entrepreneurial Steps in the Entrepreneurial ProcessProcess
2. 2. Concept DevelopmentConcept Development: : – Develop a Develop a business planbusiness plan:: a a
detailed proposal describing detailed proposal describing the business ideathe business idea
Executive summary
Code of ethics
Mission Statement
Concept Development Concept Development
– Choose business Choose business locationlocation– Will a patent or trademark be required?Will a patent or trademark be required?
Steps in the Entrepreneurial Steps in the Entrepreneurial ProcessProcess
3. 3. ResourcingResourcing:: The stage in which the The stage in which the entrepreneur identifies and acquires entrepreneur identifies and acquires the the financialfinancial, , humanhuman, and , and capitalcapital resources needed for the venture resources needed for the venture startup, etc startup, etc
Start-up resourcesStart-up resources
ResourcingResourcing
Identify potential Identify potential investorsinvestors
Hire Hire employeesemployees
Apply for loans, Apply for loans, grants and grants and assistanceassistance
Steps in the Entrepreneurial Steps in the Entrepreneurial ProcessProcess
4. 4. ActualizationActualization:: The stage in which The stage in which the entrepreneur operates the the entrepreneur operates the business and utilizes resources to business and utilizes resources to achieve its goals/objectives.achieve its goals/objectives.
$$ Grand Opening $$
Day-to-Day Operations
Steps in the Entrepreneurial Steps in the Entrepreneurial ProcessProcess
5. 5. HarvestingHarvesting:: The stage in which the The stage in which the entrepreneur decides on venture’s entrepreneur decides on venture’s future future growthgrowth, , developmentdevelopment, or , or demisedemise
What is your 5-year or 10-year plan?
Consider adding locations or providing different products/services
Will you go public?
Check for UnderstandingCheck for Understanding
You are collecting, reviewing, and interpreting surveys you distributed last week about your new business idea. What stage of the entrepreneurial process are you in?
A.A. ActualizationActualization
B.B. Concept Development Concept Development
C.C. DiscoveryDiscovery
D.D. Harvesting Harvesting
You are currently seeking people and companies to invest in your business venture. What stage of the entrepreneurial process are you in?
A.A. ActualizationActualization
B.B. Concept Development Concept Development
C.C. DiscoveryDiscovery
D.D. Resourcing Resourcing
What is an example of an activity for a businessperson who is entering the harvesting stage ofentrepreneurship?
A.A. Considering opening a second storeConsidering opening a second store
B.B. Gathering market research data about the Gathering market research data about the productproduct
C.C. Having a grand opening for the businessHaving a grand opening for the business
D.D. Seeking financial assistance from the Small Seeking financial assistance from the Small Business AdministrationBusiness Administration
Preparing a business plan for a new business, renting a building for the new store, and copyrighting the website for the new business are all classified as which stage of the entrepreneurial process?
A.A. ActualizationActualization
B.B. Concept Development Concept Development
C.C. DiscoveryDiscovery
D.D. Resourcing Resourcing
Offering shares of stock to public investors and planning goals for the business during the nextfive years are examples of activities in which stage of the entrepreneurial process?
A.A. ActualizationActualization
B.B. Concept Development Concept Development
C.C. Harvesting Harvesting
D.D. Resourcing Resourcing
Having a large grand opening sale or a summer clearance sale are examples of which stage of theentrepreneurial process?
A.A. ActualizationActualization
B.B. Concept Development Concept Development
C.C. Harvesting Harvesting
D.D. Resourcing Resourcing