This document summarizes key concepts from Chapter 1 of the book "Technology Ventures: From Idea to Opportunity". It discusses that entrepreneurs provide the creative force needed for capitalism by identifying opportunities and putting new ideas into action. An opportunity is a situation with a good chance of success. For an entrepreneur to fully exploit an opportunity, they must have both entrepreneurial competence in recognizing opportunities and managing resources, as well as commitment to developing the enterprise. Intellectual capital, which includes employee skills and knowledge, management systems, and customer/supplier relationships, contributes to a firm's economic value along with entrepreneurial capital. Dynamic capitalism involves new firms forming, growing, and replacing old firms through creative destruction of old business models.

1. Technology Ventures: From Idea to OpportunityChapter 1: Summary
The empires of the future are the
empires of the mind.
Winston Churchill
What enables global capitalism?
The entrepreneur provides the creative force in order for
capitalism (free enterprise) to work. Entrepreneurs strive
to make a difference in our world and contribute to its
betterment. They are also motivated by achievement,
independence, and the accumulation of wealth.
Summary

2. Technology Ventures: From Idea to OpportunityChapter 1: concept
An entrepreneur is a person who undertakes the
creation of an enterprise or business that has the
chance of profit (or success).

3. Technology Ventures: From Idea to OpportunityChapter 1: concept
For an entrepreneur, a challenge is a call to respond
to a difficult task and the commitment to undertake
the required enterprise.

4. Technology Ventures: From Idea to OpportunityChapter 1: Table 1.2
For an entrepreneur, a challenge is a
call to respond to a difficult task and the
commitment to undertake the required
enterprise.
The Elements of Overcoming a Challenge
•Able to deal with a series of tough issues
•Ability to create solutions and work to perfect them
•Can handle many tasks simultaneously
•Resiliency in the face of set-backs
•Willingness to work hard and not expect easy solutions
•Possess well-developed problem solving skills
•Able to learn and acquire the necessary skills for the tasks
at hand

5. Technology Ventures: From Idea to OpportunityChapter 1: concept
An opportunity is a
favorable juncture of
circumstances with a good
chance for success or
progress. It is the job of
the entrepreneur to locate
new ideas and to put them
into action.
Thus, entrepreneurship may be
described as the identification and
exploitation of previously unexploited
opportunities.

6. Technology Ventures: From Idea to OpportunityChapter 1: Table 1-3
An Entrepreneur Test: Are you an entrepreneur?
Answer each question by checking Yes or No: Yes No
• When I am faced with a challenge, I am confident that I can work through it ___ ___
• I want to be financially independent and be rewarded for my accomplishments ___ ___
• Trying something new is attractive, even if the risk of failure is significant ___ ___
• I'd prefer to gain independence and control my destiny ___ ___
• Building a new enterprise is important to me ___ ___
• My experiences during my youth and early career have
shown me the benefits of starting a new enterprise ___ ___
• Starting a new business some day soon is always in my thoughts ___ ___
• I like working with others and can provide leadership when called upon ___ ___
• Our society and my family provide a strong, supportive base for my initiatives ___ ___
• I possess good technical skills and strong relationship skills in the industry
I wish to enter. ___ ___
Add your total score for Yes and No: ___ ___
Seven or more Yes answers indicate that you may be ready to act as an
entrepreneur in the near future.

7. Technology Ventures: From Idea to OpportunityChapter 1: Figure 1.1 - Finding the Right Opportunity
• Timely
• Solvable
• Important
• Profitable
• Favorable Context
• Like to do the tasks
• Like the challenge
• Committed to do what is
necessary
• Skilled at the needed
tasks
The
Sweet
Spot
An Attractive
Opportunity
Interests,
Passions,
Commitment Capabilities & Skills
Finding the Right
Opportunity

8. Technology Ventures: From Idea to OpportunityChapter 1: Entrepreneurial Capital
Entrepreneurial Capital
EC = Ecomp x Ecomm
► Ecomp = Entrepreneurial competence is the ability to:
1) to recognize and envision taking advantage of
opportunity and
2) to access and manage the necessary resources to
actually take advantage of the opportunity
► Ecomm = Entrepreneurial commitment is a dedication
of the time and energy necessary to bring the enterprise to
initiation and fruition.

9. Technology Ventures: From Idea to OpportunityChapter 1: Economic Value
Economic Value = Opportunity x Entrepreneurial Capital
After T years the market value is:
MV = M x C x EV
= M x C x Ecomp x Ecomm
where:
M = management efficiency and effectiveness
C = context

10. Technology Ventures: From Idea to OpportunityChapter 1: concept
The intellectual capital of an organization is
the talents of its people, the efficacy of its
management systems, the effectiveness of its
customer and supplier relations, and the
technological knowledge employed and shared
among its people and processes.

11. Technology Ventures: From Idea to OpportunityChapter 1: Figure 1.2 – A Model of the Economy
Economy
Beneficial
Outputs
Undesired Waste
Outputs
Natural Capital
Financial Capital
Intellectual Capital

12. Technology Ventures: From Idea to OpportunityChapter 1: Figure 1.3 – Transforming available inputs into desired outputs
Products
&
Services
The Firm OutputsInputs
Raw Materials
Components &
Modules
Financial Capital
Physical Assets
Technologies

13. Technology Ventures: From Idea to OpportunityChapter 1: Figure 1.4 – Causal Diagram
Causal Diagram
a) y increases as x increases
b) y decreases as x decreases
c) Entrepreneurial activity leads to
increasing prosperity
Entrepreneurial
Activity
Prosperity
(c)
(a) (b)
y y
xx
Intellectual
Capital
Entrepreneurial Capital
+
+
+
+
-

14. Technology Ventures: From Idea to OpportunityChapter 1: Figure 1.5
THE FIRM'S INTELLECTUAL CAPITAL
Human Capital Organizational Capital Social Capital
Customers
Workers and
Associates
Firm's
Mission
and
Purpose
Suppliers
Market
Technology
Society
Competitors
The Firm’s Intellectual Capital
Human Capital Organizational
Capital
Social Capital
A firm’s theory of its
business is how it
understands its total
activities, resources
and relationships.

15. Technology Ventures: From Idea to OpportunityChapter 1: concept
Dynamic Capitalism is the process of wealth
creation characterized by the dynamics of new,
creative firms forming and growing and old, large
firms declining and failing.
Creative Destruction is the entrepreneurial
activity of destroying old models and creating new
models of doing business.

16. Technology Ventures: From Idea to OpportunityChapter 1: Principle 1
Principle 1
The entrepreneur develops an enterprise with the
purpose of creating wealth and prosperity for all
participants – investors, customers, suppliers,
employees, and themselves – using a combination
of intellectual and entrepreneurial capital.

17. Technology Ventures: From Idea to OpportunityChapter 1: Venture Challenge
VENTURE CHALLENGE
Select a high-potential opportunity that interests you and then use it for the
venture challenge exercises at the end of each chapter. For example, you
might consider one of these current trends in science and technology: mobile
data applications, internet telephony, video podcasting, web services, nano-
technology, clean technologies (including fuel cell, battery and solar),
pandemic flu and biodefense treatments, and advancements in stem cell
research.
1) Describe the opportunity that attracts you and why you think it is a new
venture opportunity.
2) Describe the competencies and skills you and your team members
possess.
3) What important stakeholders will you need to be successful?
4) Describe the passion and commitment you have for the opportunity.
5) Is this a good opportunity for you?

18. Technology Ventures: From Idea to OpportunityChapter 1: DVD Video
DVD Video
“The Genesis of Palm Computer”
Jeff Hawkins (Palm Computer)