3.02 Entrepreneurship and the Entrepreneurial Process Objective 3.02 Understand the entrepreneurship and the entrepreneurial process.

Entrepreneurship The process of starting and running one’s own business

Entrepreneur An entrepreneur is an individual who undertakes the risk associated with creating, organizing, and owning a business

Steps in the Entrepreneurial Process Discovery Concept Development Resourcing Actualization Harvesting

Steps in the Entrepreneurial Process 1. Discovery: The stage in which the entrepreneur generates ideas, recognizes opportunities, and studies the market Innovation Opportunity

Discovery Consider consumer needs and wants Consider your hobbies or skills Conduct Surveys and questionnaires – test the market Study demographics

Steps in the Entrepreneurial Process 2. Concept Development: Develop a business plan: a detailed proposal describing the business idea Code of ethics Executive summary Mission Statement We thrive in an environment of academic excellence where students are prepared to meet and exceed their future challenges.  We recognize each student's worth and develop life-long learners who make positive contributions to our changing society.

Concept Development Choose business location Will a patent or trademark be required?

Steps in the Entrepreneurial Process 3. Resourcing: The stage in which the entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture startup, etc Start-up resources

Apply for loans, grants and assistance Identify potential investors Resourcing Apply for loans, grants and assistance Identify potential investors Hire employees

Steps in the Entrepreneurial Process 4. Actualization: The stage in which the entrepreneur operates the business and utilizes resources to achieve its goals/objectives. $$ Grand Opening $$ Day-to-Day Operations

Steps in the Entrepreneurial Process 5. Harvesting: The stage in which the entrepreneur decides on venture’s future growth, development, or demise What is your 5-year or 10-year plan? Consider adding locations or providing different products/services Will you go public?

Check for Understanding

You are collecting, reviewing, and interpreting surveys you distributed last week about your new business idea. What stage of the entrepreneurial process are you in? Actualization Concept Development Discovery Harvesting

You are currently seeking people and companies to invest in your business venture. What stage of the entrepreneurial process are you in? Actualization Concept Development Discovery Resourcing

What is an example of an activity for a business person who is entering the harvesting stage of entrepreneurship? Considering opening a second store Gathering market research data about the product Having a grand opening for the business Seeking financial assistance from the Small Business Administration

Preparing a business plan for a new business, renting a building for the new store, and copyrighting the website for the new business are all classified as which stage of the entrepreneurial process? Actualization Concept Development Discovery Resourcing

Offering shares of stock to public investors and planning goals for the business during the next five years are examples of activities in which stage of the entrepreneurial process? Actualization Concept Development Harvesting Resourcing

Having a large grand opening sale or a summer clearance sale are examples of which stage of the entrepreneurial process? Actualization Concept Development Harvesting Resourcing