Contents Chapter 1 ....................................................................................................................................................... 2

Introduction .................................................................................................................................................. 2

Chapter 2 ....................................................................................................................................................... 3

Literature Review .......................................................................................................................................... 3

2.1 Entrepreneurial Process ...................................................................................................................... 3

2.2 Application of the Timmons Model .................................................................................................... 3

2.3 ODDS OF SUCCESS ............................................................................................................................... 4

2.4 Three Critical factors of Entrepreneurship ......................................................................................... 4

2.3.1 The Opportunity Factor ................................................................................................................ 5

2.3.2 The Team Factor .......................................................................................................................... 5

2.3.3 The Resources Factor ................................................................................................................... 6

2.4 Critical Analysis of the Timmons model .............................................................................................. 6

2.4.1. Factors for business enterprise ................................................................................................... 7

2.4.2 Analysis of Opportunity ............................................................................................................... 7

2.4.3 Marketing of the venture ............................................................................................................. 8

Chapter 3 ....................................................................................................................................................... 9

Conclusion ..................................................................................................................................................... 9

Bibliography ................................................................................................................................................ 10

List of Figures

Figure 1: Timmons Model ............................................................................................................................. 4

Figure 2: The opportunity factor ................................................................................................................... 5

Figure 3: Application of Timmons model ...................................................................................................... 7

Figure 4: VRIO Analysis ................................................................................................................................. 8

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Chapter 1

Introduction

We are going through the age of entrepreneurship (Libial, 2003). Approximately as many as 600 million peopleglobally are either dynamically connected in trying to begin a novel venture or were managers of any kind of business (Timmons, Zacharakis, & Spinelli, 2004). More than a thousand new companies are growingeach hour of alloperational day in the world. Businesspersons are driving anuprising that is converting and renovating economies around the globe. Entrepreneurship is the spirit of free initiativeas the birth of new companiesprovides a market economy its strength. The importantfeatures in the Timmons model are the founding teamand theentrepreneur, the opportunity, and the means that are gathered to start the new business. If we analyze carefully key element of Timmons model is the entrepreneur. If the entrepreneur has the precisematerial, he or she will purposefullyquest for prospects, and after finding appropriate opportunity, form it to becomea marketable element, or a high-potential venture, according to Timmons (Timmons, Zacharakis, & Spinelli, 2004). The entrepreneur then collects the means that are essential to begin an enterprise to benefit fromthe opportunity. According to the Timmons model the entrepreneur and the supplier of funds will be compensated with returns, and that together are responsible for the risks and struggle connected with beginning, funding, and constructing the enterprise. The entrepreneurs are typically bearer of higher return commiserating the risk of the business.In asupremestate, all this is measured in a business plan beforehand the business is operative (Audretsch & Acs).

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Chapter 2

Literature Review

2.1 Entrepreneurial Process

Entrepreneurship is the method ofreasoning, thinking, and performing that is based upon opportunities, complete in method and dealt with balanced leadership(Timmons, Zacharakis, & Spinelli, 2004). Entrepreneurship effects in the formation, improvement, comprehension and regeneration of value, not just from proprietors, but from all the stakeholders. At the core of the procedure is the formation and recognition of prospects, trailed by the motivation and creativity to grasp the opportunities. It necessitates a disposition to take both financial and personal risk which has to be in a calculated manner in order to continuallymove the odds of success, to mitigate the risk with the impendingrecompense. Normally, entrepreneurs inventimaginativeplans to organize their restricted resources(Libial, 2003). In spite of the variation ofentrepreneurs, businesses, technologies andgeographies Timmons recognizevital themes or driving forces that govern this vibrant entrepreneurial procedure:

Entrepreneurship is driven by opportunity Driven by a lead entrepreneur and his team A creative process It is stingy on the resources Entrepreneurship depends upon the balance of this elements The process is incorporated and all-inclusive

These are manageableconstituents of the entrepreneurial process that can be measured and modified.Initiators and financiers emphasize on these forces during vigilant analysis of the risk and define what efforts can be made to increaseendeavor’s probability of success.

2.2 Application of the Timmons Model

The Timmons framework of Entrepreneurship reflects upon opportunities, teams, and resources as the most crucial aspects which are available to any entrepreneur that

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grasps the success of the business and also resides upon the skill of the entrepreneur to balance these crucial aspects.

2.3 ODDS OF SUCCESS

The Timmons framework of entrepreneurshipsources itself on the entrepreneur. The entrepreneur examines for an opportunity, and on finding it, shapes the opportunity into a potential venture by forming up a working team and congregating the essential resources to commence the enterprise based on the opportunity. The entrepreneur takes several risks. Firstly he or she is sacrificing his or her career. They are taking their personal cash towards the business which is also at the risk. Alongside the investment of time and effort is also very much important. The Timmons model roots itself on the principle that the entrepreneur receives rewards in accordance of the risk and effort they make for a successful venture(Timmons, Zacharakis, & Spinelli, 2004).

And that’s how the Timmons Model of Entrepreneurship works in appraisal of the triumph of any business.

Figure 1: Timmons Model

2.4 Three Critical factors of Entrepreneurship

In the Timmons model there are three crucial factors which the model has mentioned as the most important interrelated factors for any successful enterprise. Those are the

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opportunity factor, the team factor and the resources factor. Brief discussion of this factor and its application is given below

2.3.1 The Opportunity Factor

Timmons model of entrepreneurship considers that entrepreneurship is driven by opportunity. And the opportunity is shaped by the market interaction. Any good idea may not be a profitable business opportunity and the primary market responseregulates the prospects of the idea. Any idea befits feasibility only when it is fastened in products or services that generate or enhance value to customers, along with that remains durable,attractive and timely(Timmons, Zacharakis, & Spinelli, 2004).

Figure 2: The opportunity factor

2.3.2 The Team Factor

After a successful identification of an opportunity, the entrepreneur form team to start a business by selecting required people and gathering the necessary resources. The scope and nature of the opportunity regulates the size and profile of the team.

Timmons model statessuperiorsignificance on the team and reflects a good team as vital for success of any venture. A bad team can waste a profound idea. Among all resources, only a worthy team can reveal a higher prospec with any opportunity and achieve the relevant growth(Timmons, Zacharakis, & Spinelli, 2004).

There are two major roles of the team along with other critical factors are:

Eliminating the obscurity and insecurity of the opportunity through creative processes

Leading to manage the existing resources in the most operationalmethod by interrelating with exogenous forces and other uncontrollable forces

A Belief that

Achievement is

Possible

Recognizinga

desiredfuture

stateinvolving growthor

change

OPPURTUNITY

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2.3.3 The Resources Factor

The Timmons model changes the prevalentidea of gathering extensive resources for any startup. Rather this model decreases the risk of initiating a venture and inspires bootstrapping or beginning with minimal resources as a way to achieveeconomicbenefits.

The advantages of bootstrapping includes following:

Market costs are driven down Implanting controland leanness into the venture Boosting creative properties to attain more usingrestricted amount of capital and

other resources

Some of the applied methods of such bootstrapping include instead of buying company might go for leasing equipment, working on free available space rather than renting.

Like the development of the team, thetype and size of opportunity regulate the amount and extent of possessions required. While better resources are scarce, ventures with high prospective opportunities and a good executive team will have no difficultydrawing money and other resources.

The entrepreneurs work is not to “maximize and own” rather they work to “minimize and control”. The character of the entrepreneur in dealing with the resources containconstructing a good resource base to draw from when necessary and drawing up an effective business plan using a “fit and balance” method that balances the available resource with the opportunity and the prospective of the venture(Christensen & Richardson, 2003).

2.4 Critical Analysis of the Timmons model

After analyzing the Timmons model we can have an in depth insight about the entrepreneurial process. It is self-contained and comprehensive. The three critical factors can be designed in sequence. So we find that any entrepreneur can go for building a successful business following the Timmons model of entrepreneurship. Here we can define the steps using the Timmons model. Firstly the entrepreneur is the most important factor of any business. He or she looks for opportunity. The entrepreneur analyzes opportunity its prospects and relevant risks. After that he or she plans for the venture. Collects requires resources. Finds our financer and prepare the business model. And in the last step he takes action towards the completion of the venture. The entrepreneur is responsible for the whole process. The efficiency of the entrepreneur can take the venture to be most successful but inefficiency can make it a loss project too. Timmons model has also emphasized on the team of entrepreneurs as the team is also very much important in the entrepreneurial process.

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Figure 3: Application of Timmons model

2.4.1.Factors for business enterprise

Several factors are very much important for any business enterprise. Such are Human

resource, financial requirements, technological requirements and supply chain

management. In the Timmons model human resource is the mostly important part for

any business to form. He mentioned that the entrepreneur and his team’s efficiency

determine the success of any business. For the financial purpose Timmons model

dictate that minimal required capital to manage the procedure and bootstrapping for the

processes. Technology definitely gives any process an edge. Another most important

factor which is missing in the Timmons model is the legal requirements. This comes

with the efficiency and effectiveness of the entrepreneur team. For proper maintenance

and for utilizing the resources the supply chain should be maintained effectively.

2.4.2 Analysis of Opportunity

After finding an opportunity the entrepreneur must analyze the opportunity for its

economic and business prospect. VRIO model can be very helpful for this purpose. In

the VRIO model based on the Value, Rarity, Imitating possibility and organization is

analyzed about the business and that provide some insight about the business.

Following flow chart provide a good description about VRIO analysis.

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Figure 4: VRIO Analysis

2.4.3 Marketing of the venture

For any business marketing is very much important. For any successful marketing and

brand creation Kotler has mentioned the 3i model. In which the 3i has specific

requirement. Such are:

Brand Identity: this measures how the customer is aware of the brand and the

products or services.

Brand Integrity: This measures the wholeness and the value any brand creates in the

consumer life.

Brand Image: This measures how the customers feel about the brand.

These three factors are very much important for successful creation of any brand. So

after forming the venture the entrepreneur and his team should consider about these

Brand element.

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Chapter 3

Conclusion

Most of the entrepreneurstry to gatherallmeansrequired to start a business before

beginninga new venture. The Timmons framework of entrepreneurship rebates this

concept and embraces three factors as vital: an opportunity driven by market,

obtainability of a qualifiedgroup and sufficientpossessions. These crucial elements of

entrepreneurship persistintertwined, with any alteration of one elementdevising an

influence on the other elements(Timmons, Zacharakis, & Spinelli, 2004).The fact is that

prospect, group, and possessionsrarely match. Timmons frameworkdeliberates that the

key responsibility of the entrepreneur to create a match of the three crucialaspects of

entrepreneurship at the correct phase. Accomplishment of the commercial venture

depends on the aptitude of the entrepreneur to confirmequilibrium by relatingleadership

and creativity, and by preservingoperational communications.Timmons frameworkroots

itself on the entrepreneur. The entrepreneur quests for prospects, and upon

finding,forms the prospect into a potential venture by forming a team and collecting the

necessary resources to commence a business that benefit fromthe opportunity. In the

procedure of beginning the business, the entrepreneur threats his or her occupation,

personal cash flow and net worth. The Timmons model bases itself on the principle that

the entrepreneur receivesrecompenses in commensuration with the risk and struggle

connected in initiating and financing the Enterprise.

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Bibliography Audretsch, D., & Acs, Z. (n.d.). Handbook of entrepreneurship research. In Springer Science-Business

Media. Newyork.

Christensen, P., & Richardson, T. (2003). Defining Entrepreneurship. Journal of Small Business

Management.

Libial, F. (2003). From entrepreneurship to entreprenology. Newyork.

Timmons, J. A., Zacharakis, A., & Spinelli, S. (2004). Business Plans That Work: A Guide For Small

Business. McGraw Hill.