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
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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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Technology Ventures: From Idea to Enterprise
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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Technology Ventures: From Idea to Enterprise
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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Technology Ventures: From Idea to Enterprise
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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Technology Ventures: From Idea to Enterprise
Chapter 1: Table 1.8 – Example of New Opportunity Evaluation
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Technology Ventures: From Idea to Enterprise
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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Technology Ventures: From Idea to Enterprise
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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Technology Ventures: From Idea to Enterprise
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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Technology Ventures: From Idea to Enterprise
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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Technology Ventures: From Idea to Enterprise
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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Technology Ventures: From Idea to Enterprise
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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Technology Ventures: From Idea to Enterprise
Chapter 1: Figure 1.5
Waves of innovation throughout history
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Technology Ventures: From Idea to Enterprise
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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Technology Ventures: From Idea to Enterprise
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 Enterprise
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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Technology Ventures: From Idea to Enterprise