Define Briefly the Entrepreneurial Process
Define briefly the entrepreneurial process.(5M )
The entrepreneurial process is a process of pursuing a new venture that involves more than just problem solving in a typical management position. An entrepreneur must find, evaluate, and develop an opportunity by overcoming the forces that resist the creation of something new. The process has four phases: 1. 2. 3. 4.
identification and evaluation of the opportunity, development of the business plan, determination of the required resources management of the resulting enterprise
List and explain the distinct phases in the entrepreneurial process.(15M) The entrepreneurial process has four phases which are: 1. 2. 3. 4.
identification and evaluation of the opportunity development of the business plan determination of the required resources management of the resulting enterprise
First, the entrepreneur must identify and evaluate the opportunity. Opportunity identification is the process by which an entrepreneur comes up with the opportunity for a new venture. This is a very difficult task. The entrepreneur must all by himself identify the opportunity because the opportunity did not suddenly appear. For example, the entrepreneur may doing a survey in order to identify lack of the existing product, doing a research to know or to explore current needs or demand from customer and others. Through the survey or research done, the entrepreneur may identify their opportunities. They also can innovate the product that they think is still lack in servicing the consumer and improvise it into a better product. Then, they must evaluate whether the opportunity entrepreneur receive fit the personal skill and goal of the entrepreneur using the opportunity analysis. Opportunity analysis, or what is frequently called an opportunity assessment plan, is one method for evaluating an opportunity. We must choose the opportunity that we believe we can implement it successfully.
Second is developing the business plan. Business plan is a description of the future direction of the business. A good business plan must be developed to show the defined opportunity. This is a very time consuming phase of the entrepreneurial process. A good business plan is essential to developing the opportunity and determining the resources required, obtaining those resources, and successfully managing the resulting venture. Next, the entrepreneur need to determine the resources required. They need to know what kind of resources that they required to implement the opportunity. Any resources that are impossible to get or use need to be differentiated from those that are just helpful. The risks associated with insufficient or inappropriate resources should also be assessed. Lastly is to manage the enterprise. After the resources are required the entrepreneur must use them to implement the business plan. The operational problems of the ongoing enterprise must also be examined. This involves implementing a management style and structure, as well as determining the key variables for success. A control system must be established, so that any problem areas can be quickly identified and resolved. Some entrepreneurs have difficulty managing and growing the business they created. It may be because of the lack in experience.
What excites you about being an entrepreneur? What are your major concerns?(10M) Being an entrepreneur is a really exciting job to do. Basically entrepreneur is an individual who takes initiative to bundle resources in innovative ways and is willing to bear the risk and or uncertainty to act. In my opinion, what really excites me being an entrepreneur is that I get to innate my ambition. For example, my ambition is to serve my society with my family secret asam pedas recipe. So, becoming entrepreneur really let meto achieve my ambition. As we will become really ambitious to let the society know our goods/service. We will always looking out for ways to make us stand out.. Being an entrepreneur, creating a product that people love, getting rich and being known for changing something is the ultimate satisfaction for people who are inherently ambitious. Next, being an entrepreneur will let me embrace my creativity. To become different from other entrepreneur, we need to be different from others. To become different, we need to become creative. Entrepreneurs continually have to be creative, whether its working with no money to get a project going and finding ways to partner with large companies. Nowadays, consumer is seeking for a uniqueness in a product. If you are a creative person, I am very sure that you can survive the business you run. Being an entrepreneur also let you become a risk taker. The very best entrepreneurs, with strings of companies and millions in the bank, are almost always the biggest risk takers. Without risk, there is no reward. As an entrepreneur we must not afraid of failure. We must always grab the opportunities to be succeed. If we succeed, after passing through all the barriers, we will feel the hardwork is paid off. And that feeling is really precious. Lastly, being an entrepreneur will let me the ability to see the bigger picture. When we are running our own business, we will face constant setbacks. we need t beo the kind of person who can see the bigger picture so these don't get you down.we also need to view finances, strategy and growth from a more holistic point of view so you can plan years into the future as all businesses should . what I try to point here is that, entrepreneurship teach you to become matured. Entrepreneurship will bring you mind standard to another level.
a. List and discuss the phase in an entrepreneurial process. Opportunity identification: the process by which an entrepreneur comes up with the opportunity for a new venture. Develop the business plan: the entrepreneur will develop the description of the future direction on the business. Resources required: determine the resources required by identifying resources gap and available suppliers and develop access toneeded resources. Manage the enterprise: develop the management style, understand the key variable for success, identify problems and potential problems, implement control systems and develop growth strategy.
b. State and explain three (3) pressures arising from an entrepreneur growing his business firm. (12M) One of the pressure that the entrepreneur facing is creating a highperformance business. Entrepreneurs often struggle with creating a highperformance business. The challenge, arises when someone in our business does not meeting expectations and has to be terminated because they couldn’t grow their skills as the business grew. According to RIS Media, entrepreneurs face an uphill battle in balancing loyalty and changing performance needs . . The entrepreneurs must learn that they can have a high performance business by having clear job expectations, a fair transparent, frequent feedback process and by giving people a fair chance to improve or to step into a role that they could do well. And it is not easy to earn those criteria. As the entrepreneur needs to work harder and harder to control every part of the business, so he or she can achieve their target. Another pressure that an entrepreneur needs to face is transitioning from owner to leader. When you get to the point where you’re delegating tasks and relying on your employees to drive your business, you must also transition from thinking of yourself as just a business owner and start developing as a leader and coach. Becoming a leader and coach is challenging, because both roles require emotional intelligence, people engagement, and the ability to relate to individuals in a way that they find meaningful.Coaching requires time to spend getting to know people, listening, understanding their customer and helping them. Coaching needs patience that many entrepreneurs are not able to achieve. It requires a continuation of mind shift from me, to entrepreneur.
Lastly is Recognizing and overcoming the common pitfalls associated with growth in business. As an entrepreneur, we need to continuously drive to go through all the barriers. Crucially, you need to ensure that the steps you take today don't create additional problems for the future. Effective leadership will help you make the most of the opportunities, creating sustainable growth for the future. It is true that an entrepreneur is a risk taker, but they also need to plan everything so that the road or path that they choose did not turn the business into an also-ran. An entrepreneur may want to carry out extra research before they decide anything.
Define superficial similarities and structural similarities. Which was noted as the more challenging for entrepreneurs?(10M) Superficial similarities exist when the basic elements of the technology match the basic elements of the market. While structural similarities, exist when the underlying mechanisms of the technology resemble the mechanism underlying of the market. The more challenging for entrepreneur is structural similarities. For example based on McGraw-Hill Entrepreneurship 9 th edition illustrated an example in a technology developed by space and computers engineers at NASA’s Langley Research Center that involves a very big and bulky flight simulators that are used by space shuttle pilots. This technology are superficial elements that are very similar to a market for airline pilots training in flight simulators. But, it has little superficial similarity with a target market of K-12 school children and their parents. K-12 school is K12, a term used in education and educational technology in the United States, Canada, and possibly other countries, is a short form for the publicly-supported school grades prior to college. Most communities in the United States and Canada (and wherever else the term is used) are just beginning to provide modern information technology at the K-12 levels. This flight simulators underlying the superficial situation. For example, attaching sensors to individual forefingers. It will monitor the electric conductivity of their skin that will send signals to computer processor in another machine with which the individual attract. This will bring into a network of a higher order relationships that reflect the overall capabilities of the technology. In terms of it aims and/or its uses. This technology are capable of helping shuttle pilots to improve their abilities to focus, pay attention and concentrate for an extended period. Examples of shuttle pilots are airline pilots and teenage driver. This
technology shares high levels of structural similarities with the target market of parents who did not seek to this. Tis opportunity only apply to the technology to the market of parents seeking nonpharmaceutical alternatives to treat and not obvious to individuals who were distracted from the deeper structural similarities by the superficial mismatch between the technology and the new market. 6.
Describe the difference between the causal process and the effectuation process.(10M) Causal process is a process that stars with a desired outcome and focuses on the means to generate that outcome. While effectuation process is a process that starts with what one has (who they are, what they know, and whom they know) and selects among possible outcomes. Examples of causal process according to Professor Saras Sarasvathy from University of Virginia, claims that entrepreneur do not always think through a problem in a way that starts with a desired outcome and focuses on the means to generate that outcome. Examples of effectuation process according to Professor Saras Sarasvathy are a chef are assigned to cook dinner. There are 2 ways that the task can be organized. For effectuation process, the host will ask the chef to look the ingredients and utensils that they have so they can decide what to cook for meal. So, the chef have to imagine the menus based on the ingredients and utensils, select the menu and then prepare the meal. This is known as effectuation process because it starts with given ingredients and utensils and then focuses on preparing one of many possible desirable meals. Lastly, examples of causal process with the same situation is that first, the host or client will picks out the menu in advance. Then, the chef need to list the ingredients needed, and the host will shop for them. Then, they will cook for the meal. known as causal process because it starts with a given menu and focuses on selecting between effective ways to prepare the meal.