Foundations and Forms of Entrepreneurship Lecture 1 PDF

Foundations and Forms of Entrepreneurship Lecture 1 Introduction to entrepreneurship commonly thought that entrepreneurship = founding a start-up “entrepreneurship is the pursuit of opportunity beyond resources controlled” —...

Foundations and Forms of Entrepreneurship Lecture 1 Introduction to entrepreneurship commonly thought that entrepreneurship = founding a start-up “entrepreneurship is the pursuit of opportunity beyond resources controlled” — Stevenson and Jarillo 1989 pursuit = someone that wants to do sth, sens of urgency, time is money, relentless focus opportunity = novel offering resources controlled = requires mobilisation think beyond, as an attitude or a mindset applies to many different contexts [startups, corporate, non profit and etc] emphasis on a set of behaviours rather than who is the entrepreneurial actor Picture of circles ? — different perspectives Foundations and Forms of Entrepreneurship 1  being an entrepreneur = being able to take risk great level of uncertainty and high pressure management What are the sources of novel opportunities? within organisations and industries: unexpected occurances incongruities process needs industry and market changes outside organisations and industries: Foundations and Forms of Entrepreneurship 2  demographic changes changes in perception - not necessarily in one industry new knowledge successfully ideas come from personal incidents and field observations for actual demand Unexpected occurences unexpected successes, failure and external events that ‘should not have happened’ but open the door for asking: can i make something out of this? Post-It!: the goal was to great a strong glue but by accident they treated glue that can easily stick to surfaces and be re-stick to others. Incongruities differences between what ‘ought’ to be, or between what and what everybody assumes it to be; likely to emerge qualitatively from observation Blockbuster video vs Netflix netflix realised that people lacked easily access video renting and so they ceased that opportunity and created a streaming platform Process needs a job to be done on a process to create, redesign, improve or perfect it; usually targets problems and task widely recognised as problematic Requirements: x Process must be clearly identifiable x There needs to be a ‘weak’ or ‘missing’ link in the process x The underlying need has to be not only felt but also understood (to define the specification of the solution) x Widespread realization that there needs to be a better way (high receptivity), that fits the way people do the work Slack: a communication platform for businesses that created a thread-based conversation and integration tool as emails are considered slow Foundations and Forms of Entrepreneurship 3  1. Weak/missing link: traditional method of communication in organisations (email, meetings, etc) were inefficient and slow creating delays in decision making and execution 2. underlying need: teams needed a more streamlined way to communicate 3. high receptivity: many teams recognised that email, chat apps, and task management tools weren’t working efficiently 4. opportunity: Slack’s creator designed a solution that targeted this cleat pain point by offering a platform that allowed for real-time collaboration, thread-based conversations, and integration with other tools Industry and market changes changes in consumer habits/preferences/desired, in the way things work whitin a given sector or in the structure of an industry [eg incumbents vs new entrants] Water bottles: small changes in consumer preferences can create new market opportunities in everyday products — people needed more fashionable and functional water bottles Demographic Changes changes in population, it size, age structure, composition, employment, educational status and inome more elderly people - less young people: so due to the growth of elderly their needs will become more addresses and therefore creates and opportunity exo-skeleton for older people so that they can continue working longer and a given position — a big biased that entrepreneurs only target young people — great resignation due to covid to be self employed Changes in perception changes in the meaning people ascribe to a fact or set of facts, which affects the way they see themselves and/or the environment; important to seize and leverage momentum plant-based products: for people having plant-based diet or have dietary restrictions — could be affect by demographic change as young people might be more drawn and Foundations and Forms of Entrepreneurship 4  conscious about craft-beer: used to be niche and not so wanted but nowadays craft beers are considered an art and are indulged by a larger amount of society New Knowledge new scientific, technic or social knowledge becoming available that cna be distilled into usable technology and commercialised as products, process or serve Companies like 23andMe and Ancestry have leveraged new knowledge in genetic science to offer DNA testing services that provide health insights, personalised medicine recommendations or ancestry data — some people create new knowledge for the sake of doing so and some people create new knowledge for the sake of commercialise — ChatGPT: the knowledge was already available but those people were able to commercialise it. The individual- environment relationship starting a new business is a highly personal decision that depends on and reflects: individual’s drive, competence and motivation perceptions of local business opportunities and the ease of starting a business awareness of one’s own skills and abilities however, new entrepreneurs create business within a context including: social values and frameworks that may promote or hinder an entrepreneurial mindset ecosystem that may provide or restrict access to recourses, including finance and expertise — Entrepreneurship can be a choice or necessity: be open minded — it is cool B) there is a relationship between the decision to start the new business and the local, regional and national environment that influences that decision directly (through access to resources) and indirectly (through its effects on social values and priorities) Foundations and Forms of Entrepreneurship 5  Location decision / External Enablers — VERY DIFFICULT TO FIND accurate failure data worldwide [survival biased], but some well known statistics report that: 9 out of 10 startups eventual fail 2/3 of startups never deliver a positive return to investors Top reasons why startups fail: 1. ran out of cash 2. no market need 3. got outcompeted 4. flawed business model 5. regulatory/legal challenges 6. cost issues 7. not the right team 8. product mistimed 9. poor product 10. disharmony among team or investors Foundations and Forms of Entrepreneurship 6  11. pivot gone bad 12. burned out or lacked the passion — Why? entrepreneurs tend to spend all their money before validating whether their idea targets a real need or figuring out how to build/sustain their competitive advantage Ideas as Hypotheses essentially, your idea is a working hypothesis a belief that a certain customer need [problem] exists and is worth solving, which you need to test by collecting data sources of data can include: observing customers conducting interviews and focus groups administering a buying surveys collecting secondary data from reports and internet concept testing and prototyping talking to different people: competitors, suppliers, industry experts, bankers, lawyers etc A scientific approach to enrepreneural strategy Foundations and Forms of Entrepreneurship 7