ENTREP REVIEWER
CHAPTER 2:
TOPIC: THE PROCESS OF BECOMING AN
ENTREPRENEUR
 The Entrepreneurial Process- Our
approach to the entrepreneurial process, or
the set of decisions and actions that you
might follow as a guide to developing or
adjusting your venture, is fluid, not static.
 What is that process?
• prepare and follow an action plan
• make sound decisions and adjustments
along the way
• persevere through challenges and crises
to ensure a successful journey
The Entrepreneurial Process: Venture Life Cycle
and Product Life Cycle
9 STAGES OF THE ENTREPRENURIAL LIFE CYCLE
Stage 1. STARTUP- startup activities are related to
our perceptions about a potential idea, how we
develop your idea, and how you might recognize
appropriate opportunities.
- At this stage, the crucial activity is defining the
opportunity to develop your concept into a
realizable business venture with a strong potential
for success.
Stage 2: DEVELOPMENT- Now that we have
confidence in our idea, it is time to develop a
structure to determine what type of venture will
work best for the idea.
THE BUSINESS MODEL identifies how a business
will build revenue, deliver value, and receive
compensation for that
Stage 3: RESOURCING- Resources include financial
support, support and selection of a manufacturing
location or facility.
Stage 4: MARKET ENTRY- Market entry the launch
of our venture is often undertaken in a soft launch,
or soft open, within a limited market to minimize
exposure to unforeseen challenges. As an
entrepreneur, you are presenting our new venture to
a specific market to see how well it is received and
supported.
- One of our most important responsibilities at this
point is managing your cash flow, or the money
coming into and going out of a business, as cash is
essential for the success of the venture.
Stage 5: GROWTH- The growth stage includes
making decisions that support the future growth of
your venture. In the growth stage, our decisions
reflect the scalability of our venture.
TOPIC: THE ENTREPRENEURIAL JOURNEYS AND
PATHWAYS
OVERVIEW OF THE ENTREPRENEURIAL
JOURNEY:
 SELF-EMPLOYMENT AS AN
ENTREPRENEURIAL JOURNEY- This
suggests that self-employment, where an
individual works for themselves rather than
for an employer, can be viewed as a
challenging and exciting path similar to an
entrepreneurial journey.
 INDEPENDENT CONTRACTOR- a person
who provides work similar to an employee
without being part of the payroll for the
contracting business.
  STARTING YOUR ENTREPRENEURIAL
JOURNEY- Refers to the beginning of a
person's pursuit of entrepreneurship.
 ENTREPRENEURIAL VENTURE- means any
type of new business, organization, project,
or operation of interest that includes a level
of risk in acting on an opportunity that has
not previously been established.
 LAO TZU- every journey begins with a
single step
You are unique. Even if two similar people
attempted to launch identical ventures, the
results would likely not be the same.
Selecting an entrepreneurial career
requires honesty, reflection, and a
tendency to be action oriented
 ENTREPRENEURIAL JOURNEY AS A TRIP-
This metaphorically likens the experience
of entrepreneurship to a journey or trip. It
emphasizes that entrepreneurship is not
just a destination but a process with
various stages and challenges.
The Entrepreneurial Journey is your
exploration to discover if Entrepreneurship
is right for you.
Entrepreneurial Journey as Seven (7) specific
Steps:
Step 1: Inspiration (What is your motivation for
becoming an entrepreneur?)
Step 2: Preparation (Do you have what it takes to
be an entrepreneur?)
Step 3: Assessment (Do you have what it takes to
be an entrepreneur?)
Step 4: Exploring Resources (What resources and
characteristics do you need to make this venture
work?)
Step 5: Business Plan (What type of business
structure and business model will your venture
have?)
Step 6: Navigation (In what direction will you take
your venture? Where will you go for guidance?)
Step 7: Launch (When and how will you launch your
venture?)
KEY TERMS:
1. Benchmarking – is a method of tracking target
expectation with actionable results.
2. Target Market – a specific group of consumer for
whom we envision developing a product or services.
3. Trial Run – offering the product or service for sale
within a limited market on a test basis.
4. Business Plan – a written document that describes in
detail about your business. A written roadmap for the
firm from marketing, financial and operational
standpoints.
TOPIC: ENTREPRENEURIAL PATHWAYS
ENTREPRENEURIAL PATHWAYS refer to the various
routes and strategies that individuals or groups take to
initiate, develop, and succeed in their entrepreneurial
endeavors.
SIX (6) COMMON BUSINESS CREATION PATHWAYS:
1. BOOTSTRAPPING- is the process of building a
business from scratch without attracting investment or
with minimal external capital.
2. MINIPRENEURSHIP- typically involves starting a very
small business or side project, often operated by a single
individual, with the goal of generating additional income.
3. A NEW BUSINESS START-UP- involves creating and
launching a brand-new business entity, often from
scratch or based on an innovative idea or identified
market gap.
4. ACQUIRING AN EXISTING VENTURE- involves
purchasing an established business from its current
owner or shareholders.
5. BUYING A FRANCHISE- involves purchasing the right
to operate a business under an established brand,
business model, and set of processes, typically offered
by a franchisor.
6. ESTABLISHING A SOCIAL VENTURE- involves creating
a business with a primary mission to address specific
social or environmental issues, alongside generating
revenue.