International Entrepreneurship Course Notes PDF

International Entrepreneurship Course Notes: Prepared by K.S. Powell International Entrepreneurship Course Notes: Written by K.S. Powell Do not distribute outside of the course without instructor’s permission (e.g., do not post on websites such a...

International Entrepreneurship Course Notes: Prepared by K.S. Powell International Entrepreneurship Course Notes: Written by K.S. Powell Do not distribute outside of the course without instructor’s permission (e.g., do not post on websites such as “Course Do not distribute outside of the course without instructor permission (e.g., do not post on websites such as “Course Hero” or similar) Hero” or similar) Topic: Topic The entrepreneurial 1: The process entrepreneurial process Overview: Overview:Over Overthe the decades, decades, the the field of entrepreneurship field of entrepreneurshiphas hasfocused focusedononhowhowentrepreneurs’ entrepreneurs’ characteristics, and/or the context in which entrepreneurs operate, affect entrepreneurial characteristics, and/or the context which entrepreneurs operate, affect entrepreneurship and activities and outcomes (Storey, entrepreneurial outcomes1982). More1982). (Storey, recently, Morethe field ofthe recently, entrepreneurship has adopted field of entrepreneurship hasthe flexible adoptedview that entrepreneurship the more flexible view that isentrepreneurship characterized by is acharacterized general entrepreneurial by a general process, and individual entrepreneurs’ entrepreneurial characteristics process, and or the contextcharacteristics individual entrepreneurs’ may affect entrepreneurship, or the context maybutaffect the process remains similar entrepreneurship, but the(Baron process&remains Shane, 2005; similarMorris (Baron&&Kuratko, 2002). Shane, 2005; In essence, Morris the various & Kuratko, 2002). areas of In essence, this idea entrepreneurship means study andthat the various practice (e.g., areas smallofbusiness entrepreneurship study and start-up and practice entrepreneurship, (e.g., small corporate business and start-up entrepreneurship, socialentrepreneurship, entrepreneurship, corporate entrepreneurship, and international social entrepreneurship) differ in entrepreneurship, terms and international of the characteristics entrepreneurship) of entrepreneurs and theirdiffer in terms contexts, of the but the characteristics general of process remains entrepreneurs the same. and their contexts, but the general process remains the same. 1.1. Defining Defining“entrepreneurship” Entrepreneurship asas a process. a process. Entrepreneurship:“The Entrepreneurship: “the process processbybywhich whichindividuals individuals,-either eitheronontheir theirown ownoror inside of of inside organizations- pursue opportunities without regard to the resources the currently control.” organizations, pursue opportunities regardless of the resources they currently control.” (Stevenson & (Stevenson & Jarillo, Jarillo,1989) 1989) 2. Stages/steps in the entrepreneurial process: There have been many published 2. Stages/steps in the entrepreneurial process: There have been many published descriptions and flow charts listing various parts of the general entrepreneurial process descriptions and flow charts listing various parts of the general entrepreneurial process (e.g., Baron & Shane), but for this course we will use the stages as described by Morris (e.g., and Kuratko. Shane, 2005), but we will use the stages as described by Morris and Baron & Kuratko (2002). Stages in the “entrepreneurial process”: Stages in the “entrepreneurial process”: 1. Identifying 2.Identifying 3.Assessing 4.Acquiring 5.Implementing 6.Harvesting an a business resource resources & managing the concept or opportunity concept requirements the concept venture a.a. Stage Stage1:1:Identifying Identifying an opportunity: opportunity:There Peopleis may almost never something observe entirely new, new entrepreneurial but often people opportunities observe because of new entrepreneurial opportunities technologies, knowledge, because of economic, new political, social, technologies, knowledge, environmental, economic, changes. and/or demographic social, political, If theseenvironmental, opportunities and/or can potentially demographic generate changes. economic valueIf these in theopportunities canand form of profits potentially generate are socially economic acceptable value (i.e., do not in the form violate moralofnorms profitsor and are socially laws), acceptable then they (i.e., do not opportunities. are entrepreneurial violate moral norms or laws),2:then b. Stage they are entrepreneurial Identifying opportunities. a business concept: During this stage, the entrepreneur b. identifies Stage 2: Identifying a business concept: a potential “business model” that During wouldthis stage, allow the to them entrepreneur create profits from identifies a potential “business the entrepreneurial opportunity. model” that would allow them to create profits from the entrepreneurial opportunity. c. Stage 3: Assessing resource requirements: During this stage, entrepreneurs must c. identify Stage 3:complementary Assessing resource requirements: resources During this stage, (e.g., information/data, entrepreneurs financial must resources, human identify the complementary resources (e.g., information/data, financial resources, resources, technology, specialized know-how, government permission/licenses, human resources, technology, specialized know-how, government relationships, etc.) necessary to develop their chosen business model and capture the entrepreneurial opportunity. After identifying resources and a business model,  entrepreneurs can write a “business plan”, which documents how the entrepreneurs will develop their new venture to pursue and capture and profit from the opportunity. d. Stage 4: Acquiring resources: At this critical stage, entrepreneurs gain access to, or acquire, necessary complementary resources identified during the previous stage. e. Stage 5: Implementing and managing the concept/venture: This stage is the “doing” stage, where a new venture is launched and begins trading or using the previously identified business model. This stage also (often) involves growth, which requires a continuous process of learning, adjusting, and identifying/acquiring additional resources. This process of growing a newly launched venture can be described as “scaling” (as in, increasing the size or “scale” of the venture) the business. f. Stage 6: Harvesting the concept/venture: At some point, founders may want to exit their business. Ideally, the exit strategy they use should allow them to “harvest” rewards for their time, energy, talent, and financial investment in the venture. There are numerous exit strategies that allow entrepreneurs to harvest their investment. Topic 1 References: Baron, R.A., & Shane, S.A. (2005). Entrepreneurship: A process perspective, 1st edition. Mason, OH: Thomson South-Western. Morris, M.H., & Kuratko, D.F. (2002). Corporate entrepreneurship. Orlando, FL: Harcourt. Stevenson, H., & Jarillo, J.C. (1989). A paradigm of entrepreneurship: Entrepreneurial management. HBS Working Paper, 89-040, Harvard Business School. Storey, D.J. (1982). Entrepreneurship and the new firm. London, Praeger.