New Venture Thinking

Entrepreneurship &The Entrepreneurial Process

WHAT IS ENTREPRENEURSHIP?

Question:

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 Tools

Set of Genes

?

Entrepreneurship is a perspective

cc Pierre-Olivier Guido Daniele

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

Key Assumptions of the Entrepreneurial Perspective

THE ENTREPRENEURIAL PROCESS

Entrepreneurship in action

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)

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

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)

is it really this linear?cc Walkingsf

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

Learning!Your world now

Knowledge-to-Assumption Ratio

Shes totally in love with my

personality

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?