Employ entrepreneurial discovery strategies to generate feasible ideas for business ventures/products. 2.01 Part I
Entrepreneurial Discovery • The process of systematically scanning for technological, political and regulatory, social, and demographic changes to discovery opportunities to produce new goods and services.
Explain the contributions of entrepreneurial discovery to society Examples: More Efficient Use of Resources Increased Productivity
Contributions of Entrepreneurial Discovery to Society • Entrepreneurs are the mechanism by which our economy turns demand into supply. They recognize consumer wants and see the economic opportunities in satisfying them. • Entrepreneurs are a principal source of venture capital. As part of the process of planning and setting up a new business, entrepreneurs gather resources. Money is one of the most important of these resources. Entrepreneurs usually start with their own funds and then seek out contributions from private investors. Allen, K.R. & Meyer, E.C. (2006). Entrepreneurship and small business management (p. 10). Woodland Hills, CA: Glencoe/McGraw-Hill.
Contributions, Cont. • Entrepreneurs provide jobs. • The most successful entrepreneurs change society. In 1976, Steven Jobs and Steven Wozniak set out to create Apple, the first personal computer. In less than five years, they had created a whole industry comprised of hundreds of related businesses and thousands of new jobs. Today it is hard to imagine a workplace without at least one personal computer.
Changes that Encourage Entrepreneurial Discovery • Any time things change, there is an opportunity for entrepreneurship. We need look no further than the internet to discover that. The Internet was a technological change that opened up the door (and is still opening doors) to new ideas such as Facebook, Google, eBay, webcasts, etc.
Ask students to identify ways in which the following types of change have led to entrepreneurial discovery: • Political change: election of a new U.S. President • Social change: majority of mothers and fathers working outside the home • Demographic change: use of Spanish language increasing rapidly in U.S.
Performance Activity • Identify a change occurring in your community that has encouraged entrepreneurial discovery. Determine what type of change it is (e.g., technological, political, legal, social, demographic, etc.), and identify new businesses or products that have been developed in response to that change. Discuss your insights with a classmate, and submit your findings to your instructor for review.
Venture Capital RETURN TO PREVIOUS SLIDE • Money provided by investors to startup firms and small businesses with perceived long-term growth potential. This is a very important source of funding for startups that do not have access to capital markets. It typically entails high risk for the investor, but it has the potential for above-average returns. • Investopediaexplains 'Venture Capital' • Venture capital can also include managerial and technical expertise. Most venture capital comes from a group of wealthy investors, investment banks and other financial institutions that pool such investments or partnerships. This form of raising capital is popular among new companies or ventures with limited operating history, which cannot raise funds by issuing debt. The downside for entrepreneurs is that venture capitalists usually get a say in company decisions, in addition to a portion of the equity. Read more: http://www.investopedia.com/terms/v/venturecapital.asp#ixzz1yuSIGpPo