Project Management

1. © 2002 by Prentice Hall 1-1
Entrepreneursh
ip
THE DYNAMIC PROCESS OF VISION, CHANGE, AND CREATION. IT REQUIRES AN APPLICATION
OF ENERGY AND PASSION TOWARD THE CREATION AND IMPLEMENTATION OF NEW IDEAS
AND CREATIVE SOLUTIONS. ESSENTIAL INGREDIENTS INCLUDE THE WILLINGNESS TO TAKE
CALCULATED RISKS – IN TERMS OF TIME, EQUITY, OR CAREER; THE ABILITY TO FORMULATE
AN EFFECTIVE VENTURE TEAM; THE CREATIVE SKILL TO MARSHAL NEEDED RESOURCES;
THE FUNDAMENTAL SKILL OF BUILDING A SOLID BUSINESS PLAN; AND, FINALLY, THE VISION
TO RECOGNIZE OPPORTUNITY WHERE OTHERS SEE CHAOS, CONTRADICTION, AND
CONFUSION.

2. © 2002 by Prentice Hall 1-2
Age of Gazelles
 A business firm with at least 20 percent sales growth
each year, starting with a base of at least $100,000.
 High growth
 Leaders in Innovation

3. © 2002 by Prentice Hall 1-3
Importance of Newtworking
 Who?
 Friends
 Contacts
 Professional Associations or Groups
 Memberships
 Why?
 Build Resource Base
 Future Reference
 Mentoring
 How?
 Maintain Contact Resource File
 Join Organizations
 Attend Meetings, Forums, and other Events

4. © 2002 by Prentice Hall 1-4
CEO in Terms of
Entrepreneurship
 Create Endless Opportunities
 Catch Every Obstacle

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A New Generation of Entrepreneurs
 They are comfortable with new technologies
 They welcome change
 They think differently
 They are independent
 More interested in business ownership than
any previous generation
 Many have entrepreneurial heroes

6. © 2002 by Prentice Hall 1-6
Basic Risks Entrepreneur’s Face
 Financial
 Career
 Family and Social
 Psychic

7. © 2002 by Prentice Hall 1-7
Characteristics of Entrepreneurship
 Creation
 Innovation
 Resource leveraging
 Organization building
 The pursuit of gain
 Risk & uncertainty

8. © 2002 by Prentice Hall 1-8
Creation
 New products or services
 New methods or technologies
 New markets targeted and opened
 New sources of supply and resources
 New forms of industrial organization created

9. © 2002 by Prentice Hall 1-9
Characteristics of Entrepreneurs
Then . . .
 Small business founder
 Boss
 Lone Ranger
 Secretive
 Self-reliant
 Seat-of-the-pants
 Snap decisions
 Male ownership
 Idea-driven
 Trade knowledge
 Automation and efficiency
© 2002 by Prentice Hall 1-3

10. © 2002 by Prentice Hall 1-10
Characteristics of Entrepreneurs
© 2002 by Prentice Hall 1-3
. . . and Now
 True entrepreneur
 Leader
 Networker
 Open
 Inquisitive
 Business plan
 Consensus builder
 Mixed & dispersed ownership
 Execution-driven
 Business knowledge
 Innovation

11. © 2002 by Prentice Hall 1-11
Sam Walton’s 10 Rules of Business
1. Commit to your business and believe in it.
2. Share profits with partners and employees.
3. Motivate partners - challenge them and keep score.
4. Communicate everything.
5. Appreciate associates with well-chosen words.
6. Celebrate successes.
7. Listen to everyone and get them talking.
8. Exceed customers’ expectations.
9. Control expenses.
10. Break all the rules (Rules 1- 9 are not for everyone).

12. © 2002 by Prentice Hall 1-12
5 Dimensions of Quality
 Transcendent Approach
 Question the nature of things
 Product-based Approach
 Product attributes are key
 User-based Approach
 Quality is in the eye of the beholder
 Manufacturing-based Approach
 Conformance to standards is key
 Value-based Approach
 Cost-value relationship is key

13. © 2002 by Prentice Hall 1-13
Dimensions of New Venture Creation
Individual
Characteristics
Environmental
Constraints
Organization
New
Venture
Creation
Environment

14. © 2002 by Prentice Hall 1-14
Dimensions of New Venture Creation:
Individual Characteristics
Personal resource base:
 Need for achievement
 Locus of control
 Propensity for taking risk
 Knowledge
 Experience
 Reputation
New
Venture
Creation

15. © 2002 by Prentice Hall 1-15
Dimensions of New Venture Creation:
Individual Characteristics (cont’d)
Sociological factors:
 Perceptions of desirability
 Perceptions of feasibility
 Role models and mentors
 Entrepreneurial parents
 Networks and contacts
New
Venture
Creation

16. © 2002 by Prentice Hall 1-16
Dimensions of New Venture Creation:
Individual Characteristics (cont’d)
Demographics:
 Age
 Gender
 Education
New
Venture
Creation

17. © 2002 by Prentice Hall 1-17
Dimensions of New Venture Creation:
Organization
Strategies:
 Generic strategies
 Overall cost leadership
 Differentiation
 Focus
 Functional level strategies
 Financial
 Marketing
 Organizational
New
Venture
Creation

18. © 2002 by Prentice Hall 1-18
Dimensions of New Venture Creation:
Organization (cont’d)
Strategies:
 Primary entry wedges
 New product or service
 Parallel competition
 Franchise entry
 Minor entry wedges
 Isolating mechanisms
 Culture
New
Venture
Creation

19. © 2002 by Prentice Hall 1-19
Dimensions of New Venture Creation:
Environment
Resources in the environment:
 Venture capital availability
 Availability of financial resources
 Presence of experienced entrepreneurs
 Technically skilled labor force
 Larger urban areas
 Large industrial base
 Accessibility of suppliers
 Accessibility of customers
 High occupational and industrial differentiation
 Proximity of universities
 Availability of land or facilities
 Accessibility of transportation
 Attitude of the area population
 Availability of supporting services
New
Venture
Creation

20. © 2002 by Prentice Hall 1-20
Dimensions of New Venture Creation:
Constraints in the Environment
Barriers to entry:
 Governmental influences
 Rivalry among existing competitors
 Pressure from substitute products
 Bargaining power of buyers
 Bargaining power of suppliers
New
Venture
Creation