Technology Ventures: From Idea to EnterpriseChapter 1: Summary There are risks and costs to a program of action. But they are far less than the long- range

Technology Ventures: From Idea to EnterpriseChapter 1: Summary

There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction.

John F. Kennedy

What drives global entrepreneurship?

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.

Summary

Economic Growth & the Technology EntrepreneurEconomic Growth & the Technology Entrepreneur

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Chapter 1: concept

Entrepreneurs are people who identify and pursue solutions among problems, possibilities amongneeds, and opportunities among challenges.


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Technology Ventures: From Idea to Enterprise

Chapter 1: concept

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


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Chapter 1: Table 1.5

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


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Chapter 1: concept

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.


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Chapter 1: Figure 1.1 - Finding the Right Opportunity

• Timely

• Solvable

• Important

• Profitable

• Favorable Context

• Like to do the tasks

• Like the challenge

• Committed to do what is necessary

• Skilled at the neededtasks

TheSweetSpot

An Attractive

Opportunity

Interests, Passions, Commitment Capabilities & Skills

Finding the Right Opportunity


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Chapter 1: Table 1.8 – Example of New Opportunity Evaluation


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Chapter 1: Entrepreneurial Capital

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.


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Chapter 1: Economic Value

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 effectivenessC = context


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Chapter 1: concept

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.


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Chapter 1: Figure 1.2 – A Model of the Economy

Economy

Beneficial Outputs

Undesired Waste Outputs

Natural Capital

Financial Capital

Intellectual Capital

Economy

Entrepreneurs asagents of progress


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Chapter 1: Figure 1.3 – Transforming available inputs into desired outputs

Transformation Based On:Intellectual CapitalEntrepreneurial Capital

Products

&

Services

The Firm OutputsInputs

Raw Materials

Components &Modules

Financial Capital

Physical Assets

Technologies


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Chapter 1: Figure 1.4 – Firm’s Intellectual Capital

THE FIRM'S INTELLECTUAL CAPITAL

Human Capital Organizational Capital Social Capital

Customers

Workers and Associates

Firm's Mission

and Purpose

Suppliers

Market

Technology

Society

Competitors

The Firm’s Intellectual Capital

Human Capital

Organizational Capital

Social Capital

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


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Chapter 1: Figure 1.5

Waves of innovation throughout history


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Chapter 1: concept

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.


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Chapter 1: Principle 1

Principle 1The 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.


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Technology Ventures: From Idea to OpportunityChapter 1: Venture Challenge

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, nano-technology, 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?


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Chapter 1: DVD Video

DVD Video

“Entrepreneurial Skills Learned”

Mark Zuckerberg (Facebook)


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Documents

Technology Ventures: From Idea to EnterpriseChapter 1: Summary There are risks and costs to a program of action. But they are far less than the long- range