The Entrepreneurial start-up process The Five Key Components

The Entrepreneur Driving force of the start-up process. Recognizes an opportunity. Gathers resources to take advantage of the opportunity. Creates a company to execute the opportunity in the marketplace.

The Environment Four environmental factors affect a new venture’s ability to start and grow. Nature of the Environment: uncertain, fast-changing, stable, or highly competitive. Availability of Resources: skilled labor, start-up capital, and sources of assistance. Ways to Realize Value: favorable taxes, good markets, and supportive governmental policies. Incentives to Create New Businesses: Enterprise Zones.

The Opportunity Opportunity: Idea that has commercial potential. Opportunities have potential when there is demand for the product. Idea + Market = Opportunity

Start-Up Resources The necessary people and capital must gathered when the entrepreneur is ready to start the business. Start-Up Resources include: capital, skilled labor, management expertise, legal and financial advice, facility, equipment, and customers needed to start a business.

The New Venture Organization New Venture Organization = Company Company is the foundation that supports all of the products of the new business. Through the company the entrepreneur creates value that benefits the owners, employees, customers, and economy.