Risk + proactiveness

Dimensions of Entrepreneurship:
1. Risk

Risk indicates elements of uncertain outcomes or events that is inherent in the process of exploiting an opportunity and starting a business
Entrepreneurs take risks in order to obtain the higher rewards that come from higher risk but are CAREFUL to evaluate the risk first.
Success comes from taking a calculated, carefully-thought out approach to risk where everything possible is done to identify and minimize potential
problems

Dimensions of Entrepreneurship:
4. Pro-activeness

Pro-activeness refers to the propensity (proneness) to act on information, ideas and opportunities in a timely and speedy manner
Acting at the right time and in the right manner on the superiority of an idea or opportunity can differentiate between better success or less success or
even between success and failure

Idea Evaluation & Development Phase

1.

This phase is characterized by efforts to better understand what it will take to bring the idea or opportunity into a full-fledge economic activity or business
In technology entrepreneurship, some key activities at this stage include
doing the research and development work to invent or innovate a new technology-based product, process or service
2. preparing the initial
technology blueprint 3. concept testing
4. Prototyping
5. market testing

The Economic Inputs

1.
2.
3.

1.
2.

1.

Natural capital
Consist basically of natural resources such as minerals, fuels and energy
Can also include natures biological capacity to produce (e.g. oxygen) or absorb
(e.g. pollution)
As such this natural capital can be irreversibly depleted through neglect or irresponsible usage
Financial capital
Refers to financial assets such as money and shares
Can include exclusive use of technological designs and products that have financial value
Intellectual capital
Refers to knowledge that is accessible within an business because it has been recorded (e.g. in documents and reports), explained (e.g. through knowledge
sharing processes ) and disseminated (e.g. through inter-team or inter-department project or research work)

Phases of the Creative Process

Phase 1: Background or Knowledge Accumulation

Study the background of the subject matter

This may requires extensive reading, discussion with experts, practitioners, academicians, researchers in the field, attending workshops and seminars,
exploring various unrelated areas etc.
These explorations expose entrepreneurs to a variety of perspectives on the subject matter.

Phase 2: The Mind Incubation Process

An individual immerse himself or herself in the data, allowing the subconscious mind to muse or ponder on the information gathered.
Sleep on it getting away from the subject matter and letting the subconscious mind working on it allows creativity to spring forth.
Incubation can be induced by: engaging in mindless activities such as painting the house or cutting grass, meditate or play sports or board games. The
rationale is new ideas often emerge when we are busy doing something unrelated to the matter.

Phase 3: The Idea Experience

This is when the person discovers the solution or the idea. The idea may appear out of the blue or it may comes incrementally.
At this phase, the person begins to formulate the solution.
Most of the time it is difficult to tell the movement from phase 2 to phase 3.
To expedite movement to idea experience a person can try to daydream and fantasies about the project and always keep a notebook to record emergence
of ideas at odd hours.

Phase 4: Evaluation and Implementation

This phase is the most difficult and requires courage, discipline & perseverance.
There are a lot of possibilities of failures.
Ideas are modified and tested before the best workable idea is put into a final form and successfully implemented.

Sources of Innovation
1.

Within the company or industry

Unexpected occurrence - unexpected discovery such as penicillin
Incongruities the gap between what is and what should be; arise whenever a difference exists between expectations & reality.
Process needs require entrepreneurs to innovate and answer a particular needs such as time-saving devices
Structural change caused by industry and market changes due to new developments such as advances in technology.

2.

Within the social environment

Demographic changes for example changes in population, consumer preference and geographical locations.

Perceptual changes perceptions can cause mood swings and major changes in ideas, for example fitness craze is resulted by perceived needs to be
healthy & physically fit

New knowledge the basis of development of something brand new.

Characteristic of radical innovation

Fundamental rethink
o Based on disruptive technologies
o Experimentation and play/make-believe

Need to be nurtured for long periods

o Worse initial performance, potential big gains
o Create new markets

3.

Examples

Air Products oxygen separation technology

o Analog Devices Air Bag Accelerometer
display technology
o General Electric Digital X-ray

o Dupont Biodegradable polymer,

Characteristics of an Attractive Opportunity

Timely -

a current need, unmet demand or problem (e.g. vaccine for bird flu, drugs to prevent obesity)

Solvable - a problem that can be solved in the near future with accessible resources (e.g. a cure for cancerous diseases, a more efficient public transport to reduce
congestion and traffic jams)
Important - The customer deems their problem or need important to them (e.g. energy-saving air conditioner or petrol saving devices that work)
Profitable - the customer will pay for the solution and allow the enterprise to profit (e.g. security products, multi function printers)
Context - a favorable regulatory and industry situation (e.g. on-line business transaction , genuine investment schemes that promised high returns)
Evaluate the Opportunity (Internal Factors)
Internal factors that include:
Capabilities

the ability or quality (knowledge, experience,

and skill) necessary to develop the business venture

Resources

include financial, physical, and human resources consistent with the magnitude of the business venture

Interest

the will, commitment, and passion to pursue the business venture

Opportunity pull (market driven)

Occurs when there is a need or problem that requires a solution. An
example is the need for a pharmaceutical that can mitigate or cure the effects of
AIDS. This type of opportunity can be called opportunity pull, since the size of
the opportunity draws opportunity seekers to attempt to exploit it.

Capability push (technology driven)

Occurs from the discovery of a capability or resource that can be
applied to a problem or need. An example of this type of opportunity is the
discovery of a new technology, such as digital television. This type of
opportunity can be called a capability push, since it flows from a capability or
resource availability.