Chapter 14 Entrepreneurial Growth Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

Post-startup options for an entrepreneurial business Stay With Company Start Another Venture Sell Seek Other Employment Become a Manager Startup Maintain Exit Day-to-Day Management Become an Entrepreneurial Leader Grow Take Alternate Position in the Firm Exit Day-to-Day Management Options for Venture Options for Founder Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

A model of driving forces of growth Opportunity Domain Organizational Resources and Capabilities Stakeholders Execution Environmental Conditions Uncertainty Leadership Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

Control system’s components Accounts receivables and collections policies An inventory management system Account payables policies Assessment of performance and expenditures Metrics to track trends in cash, receivables, inventory, payables, expenditures and performance Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

Payment made to Suppliers Cash Conversion Cycle Average Inventory Collection Period + Cash Conversion Cycle = Average Receivables Processing Period – Average Payables Period Payment Received from Customers Inventory Received Sale 98 Days 53 Days Days in Inventory Days Sales Outstanding 98 Days 53 Days Days in Payables Cash Conversion Period Payment made to Suppliers Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

Yankee Candle’s Opportunity Domain Geographic Expansion Regional National International New Products New Candles Home Fragrance Gifts Distribution To Gift Shops Direct through retail, online, catalogs Wholesale Candles Acquisition Gifts for fundraising market Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

The Entrepreneur vs. Manager vs. Entrepreneurial Leader Locates new ideas Maintains current operations Leverages core business while exploring new opportunities Starts a business Implements the business Starts businesses within an ongoing organization Opportunity driven Resource driven Capability and opportunity driven. Leverages capabilities and builds new ones to expand opportunity domain Establishes and implements a vision Plans, organizes, staffs, controls Establishes a vision and empowers others to carry it out Builds an organization around the opportunity Enhances efficiency of organization Maintains entrepreneurial ability as organization grows. Ensures culture, structure, systems are conducive to entrepreneurship; removes barriers Leads and inspires others Supervises and monitors others Develops and guides entrepreneurial individuals; bridges between individuals and groups with diverse expertise and orientation Orchestrates change in the competitive environment Maintains consistency and predictability Orchestrates change in both the organizational and competitive environment Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

Transition from Entrepreneur to Entrepreneurial Leader Creates and implements vision for a new organization Crisis Provides specific direction to employees Lack of trust, responsibility Crisis Relies on specialized expertise of others to implement details Role ambiguity, confusion about objectives Crisis Grants authority and responsibility to managers for achieving objectives Reduced cooperation among groups; leader failing to bridge groups and articulate central vision Crisis Sets vision and allows others to participate in setting objectives; empowers and guides, but oversees execution Failure to adapt organization to enable entrepreneurship; failure to develop and support entrepreneurs Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

Appointing management Promote your old employees May not be competent for the position 1 Hire outside management Old employees may not accept newcomers 2 Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©