CHAPTER ONE

THE ENTREPRENEURIAL PROCESS

NADEEM AHMED
nadeemahmed_78
Entrepreneurship

French word entreprendre = ‘undertook’

the risk of new enterprise

Entrprendeur = contractors
 Entrepreneurship

The process of planning, organizing,

operating and assuming the risk of a
business venture
5 Stages in Entrepreneurial Process
Stage 1: Conducting Opportunity Analysis
Stage 2: Developing the Plan and Setting up the
company
Stage 3: Acquiring Financial Partners/Sources of
Funding
Stage 4: Determine the resources Required and
Implementing the Plan
Stage 5: Scaling and Harvesting the Venture
 5 Stages in Entrepreneurial Process

Stage 1: Conducting Opportunity Analysis

 Innovate and create the vision

 Conduct market analysis and research
 Evaluate the competition
 Research pricing and sales strategies
 5 Stages in Entrepreneurial Process
Stage 2: Developing the Plan and Setting up the
company

 Set goals and objectives

 Start writing the plan
 Investigate new processes and technologies
 Determine pricing, market and distribution
channels
5 Stages in Entrepreneurial Process
Stage 3: Acquiring Financial
Partners/Sources of Funding

 “Bootstrap” the company

 Secure early-stage funding
 Secure growth funding
 5 Stages in Entrepreneurial Process
Stage 4: Determine the resources Required and
Implementing the Plan

 Determine value of licenses, patents, and copyrights

 Prepare the organization for growth
 Develop a business model to maximize value retention
 Manage the finances
 5 Stages in Entrepreneurial Process
Stage 5: Scaling and Harvesting the Venture

 Prepare a full business plan

 Discuss options alternatives
 Sell or merge
 Go public
 Form a strategic alliance

 Communicate the opportunity

 Why to Become Entrepreneur?
 do your own thing
 make your own decisions
 Exert greater control over your working
environment
 come out of slow progressing career
 get a sustained growth and mobility
 seek flexibility in their lives
 create a huge financial rewards
 Types of Entrepreneurs
Aspiring Entrepreneurs

Lifestyle Entrepreneurs

Growth Entrepreneurs
 Types of Entrepreneurs

Aspiring Entrepreneurs

 Still doing job – not made the leap from

current employment into the uncertainty
of startup
Types of Entrepreneurs
Lifestyle Entrepreneurs
(small businesses or mom-and-pop shops

 develop an enterprise fitting their individual

circumstances and style of life.
 intend to earn income for themselves & family
 develop ventures for community well-being
Half of such businesses are home-based:

• Service firms from consulting practices to

graphic design firms (50%)
• Sales (17%)
• Technical & administrative support (15%)
• Repair service (11%)
• Arts (05%)
Types of Entrepreneurs

Growth Entrepreneurs

 have both the desire and ability to grow

fast and as large as possible
 are most dynamic job generators
 Growth Entrepreneurs

 the ‘gazzeles’
 David Birch: In US 300,000 entrepreneurial companies
with more than 50 employees – growing at a rate of
more than 20% a year
Entrepreneurial Mindset and Commonly
Shared Characteristics
Explore Your Own Entrepreneurial Style