Chapter 1 pgs 2 23 Fuzzy Front End the period of time prior to firm birth The activities undertaken at this point are often unclear and subject to change as more information is obtained Modeled in economic terms the amount of investment an individual is willing to make in a new product venture is a function of the probability of its success the value of that success and the cost of failure Uses this time to calculate the probability of success as an entrepreneur Gartner Conceptual Framework most closely reflects the approach taken in this text Gartner proposes that the entrepreneurial process is affected by the three major categories of variables the individual entrepreneur and what they bring to the process the environment which consists of all of the external variables that affect the process such as industry suppliers and markets and the organization which is all the strategic aspects of the new venture such as focus resources and strategic partnerships Green Power money is flowing toward green solutions for all manner of problems that challenge the goal of sustainable society Eco iconic marketing is about developing a product and brand that makes it possible for consumers who but it instantly recognized as having eco status Usually these products involve a story that creates meaning and draws the consumer to the product Another example is e concierges companies that help consumers go green in every aspect of their life Knowledge Economy the new millennium ushered in this Brought about by increased globalization and competitive shift to more knowledge based economic activity In the new economy the primary resource is knowledge rather than raw materials and physical labor Entrepreneurship capital is essential to the new business models that monetize knowledge Morris Lewis and Sexton School of Thought an integrated input output model that looks at which variables are put into the process in order to achieve a certain level of entrepreneurship Nascent Entrepreneurship an indivual who intends to start an indiviaul business New Venture Formation figure 1 4 characterized by four stages and three transitions or decisions points First transition point occurs when an individual acting independently or as an employee of a firm decides to start a business Technological Revolution 1970 s brought by the introduction in 1971 of the intel microprocessor the personal computer and apple 2 computer Increasing pressure on business the government ushered in a new era of business regulation Chapter 2 pgs 24 44 Corporate Ventures like entrepreneurial like venture inside large companies are distinct from other type of projects that these firms take one Involve activites that are typically new to company so the risk of failure is high Also a high degree of uncertainty Simulate entrepreneurial environment required for innovation to occur the skunk works intrapreneurship and acquisition Entrepreneurial mystique Intrapreneurship another name for corporate entreprenuership Network Brokers serve as gateways to other networks Also known as opinion leaders exert influence between groups or networks rather than within groups Reasons for starting a business out of necessity or driven by opportunity Risk uncertainty regarding loss risk is a relative term goal is to reduce the level of risk in any venture Serial Entrepreneur an entrepreneur who starts one business and then moves on to start another often one that builds on the experience acquired through a previous venture Like the thrill of starting a business prefer to leave management issues to someone else Skunk Works type of corporate venture an autonomous group is given the mandate to find and develop new products for the company that may even be external to the company s core competencies Typically operate outside the traditional lines of authority more flexible fast and creative work environment Traditional Entrepreneur starting a business out of necessity or driven by opportunity typical way to start a business unlike home based serial nonprofit and corporate entrepreneurs Value Chain all the businesses involved in the production of a product or service from raw materials through delivery to the final customer Weak Ties entrepreneurs acquaintances or business contacts not social contacts but very important because move forward faster with the help or support of weak ties Chapter 3 pgs 45 63 Action Plan a series of small experiments to provide feedback and help them test and rework the original ideas until they best meet the needs of the customer Seeff stage 5 of the creation process implementing the action plan to turn the idea into reality Brainwriting collaborative activity that involves getting ideas down on paper and then organizing the ideas and creating themes Each individual writes 3 ideas on 3 Post its Everyone take 3 Post its they didn t create looks at them and write 3 new ideas on Post its Process repeats for several rounds until all Post its are placed on a white board which beings the process of finding common themes and combining ideas Business Associates a personal network friends associates acquaintances Rich source of innovative ideas Refine ideas direct to resources Built from a concentrated effort of entrepreneurs to go out and meet new people daily Contemplation quiet time on a regular basis trains the mind to shift quickly into the creative mode and helps make creative thinking a habit Creation Theory entrepreneurs are the actors they create opportunities via their actions reactions and experiments around new products services and business models Act and then monitor how customers respond to actions Willing to generalize from small samples take more risk with less information and rely on their own abilities to develop the opportunity Creativity basis for invention enables entrepreneurs to differentiate their businesses from competitors critical skill for recognizing or creating opportunity Discovery Theory opportunity arises from shifts in external factors in the market or industry such as regulation technological changes and changes in customer preferences Opportunities are waiting for an entrepreneur to discover them so require a more systemic approach to scanning the environment Alertness awareness Decision making under high levels of risk Disruptive Innovations make previous technology and ways of doing this obsolete and in general can find no identifiable market in the earliest stages of development Often patented Internet