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

2. 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, Entrepreneurship, New York: Wiley. ©

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

4. 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, Entrepreneurship, New York: Wiley. ©

5. 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, Entrepreneurship, New York: Wiley. ©

6. 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, Entrepreneurship, New York: Wiley. ©

7. 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, Entrepreneurship, New York: Wiley. ©

8. 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, Entrepreneurship, New York: Wiley. ©

9. 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, Entrepreneurship, New York: Wiley. ©