Professional Documents
Culture Documents
3-1
Part
Two
The Opportunity
3-2
The Opportunity
Screen and Choose opportunities with great care
Venture capital investors fund no more than 1 or 2
percent of the ventures they review
Good opportunities have risks and problems
The perfect deal has yet to be seen
Take steps to eliminate problems early during
opportunity screening
3-3
Chapter
3
The Entrepreneurial
Process
3-4
Entrepreneurship Defined
Entrepreneurshipawayofthinking,
reasoning,andactingthatisopportunity
obsessed,holisticinapproach,and
leadershipbalancedforthepurposeofvalue
creationandcapture.
(Thisdefinitionofentrepreneurshiphasevolvedoverthepastthreedecadesfromresearch
byJeffryA.TimmonsatBabsonCollegeandtheHarvardBusinessSchoolandhas
recentlybeenenhancedbyStephenSpinelli,Jr.formerViceProvostforEntrepreneurship
andGlobalManagementatBabsonCollege,andcurrentPresidentofPhiladelphia
University).
3-5
Entrepreneurship Results
Value:
Creation
Enhancement
Realization
Renewal
For:
Owners
Stakeholders
All Participants
3-6
Entrepreneurial Requirements
Willingness to take risks
Personal
Financial
Calculated
3-7
3-9
Beyond Startups
Giant firms of the past (IBM, Digital Equipment
Corporation, Sears, AT&T) once thought to be
invincible, have been reduced in size and scope
by waves of entrepreneurial ventures.
Large companies face shrinking payroll while
new ventures add jobs.
New entrepreneurial rivals are changing the
pace of business as usual.
3-10
3-11
3-12
Paradoxes of Entrepreneurship (1 of
3)
An opportunity with no or very low potential
can be an extremely big opportunity.
To make money you have to first lose money.
To create and build wealth, one must give up
wealth.
To succeed, one first has to experience failure.
3-13
Paradoxes of Entrepreneurship (2
of 3)
Entrepreneurship requires considerable
consideration, preparation, and planning, yet
is basically an unplannable event.
For creativity and innovativeness to prosper,
strictness and discipline must accompany the
process.
Entrepreneurship requires a bias toward
action and a sense of urgency, but also
demands patience.
3-14
Paradoxes of Entrepreneurship (3
of 3)
The greater the organization, discipline, and
control, the less you will control your
ultimate destiny.
To realize the long-term equity value, you
have to forgo the temptations of short-term
profitability.
3-15
3-16
3-17
3-18
3-19
3-20
3-21
3-22
3-23
3-24
3-25
3-26
Sustainability as a Base
Achievingeconomic,environmentalandsocialgoals
Withoutcompromisingthesameopportunityforfuture
generations
Drivenbymanyfactors
Byunderstandingthesefactors,theentrepreneurbuildsa
firmerbasegirdingtheventureforthelongterm
3-27
3-28
3-29
3-30
3-31