ENTREPRENEURIAL ENTREPRENEURIAL PROCESSPROCESS

INSPIRING CREATIVE AND INNOVATIVE MINDS

@ 2007 Zaidibahari FPPSMUTMHak cipta terpelihara

The Entrepreneurial ProcessThe Entrepreneurial Process

Deciding to become an entrepreneur

Developing successful business ideas

Moving from an idea to an entrepreneurial firm

Managing and growing the entrepreneurial firm

Step 1

Step 2

Step 3

Step 4

Sources of Opportunities

Entrepreneurial Entrepreneurial OpportunityOpportunity

A situation in which a person can exploit a favourable set of circumstances or new business idea that has the potential to generate a profit, through the creation of new products or services or business

• Exist when there is room to offer a product or service in a particular market which fulfill customers’ demand

• Two situations:– Product or service available but unable to

meet customer demands and preferences.– Customers need product or service that

can help to solve their problems.

Entrepreneurial OPPORTUNITIESEntrepreneurial OPPORTUNITIES

opportunitiesopportunities

Social ChangeSocial Change

Ready availability of established, Non-proprietary technology

Ready availability of established, Non-proprietary technology

New Market & Distribution ChannelNew Market & Distribution Channel

Economic Change

Economic Change

Sources of OpportunitiesSources of Opportunities

• Step 1 : Identifying the needs and wants• Step 2 : Scanning the environment and

evaluating of self and community• Step 3 : Screening of business opportunities• Step 4 : Selecting a business opportunity

and preparing a business plan

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Opportunity Recognition ProcessOpportunity Recognition Process

Environmental Trends

EconomicSocial

TechnologicalPolitical

Legal

Environmental Trends

EconomicSocial

TechnologicalPolitical

Legal

Personal Characteristics of an entrepreneur

ExperienceCognitive

Social NetworkCreativity

Personal Characteristics of an entrepreneur

ExperienceCognitive

Social NetworkCreativity

Business, Product or Service

Opportunity Gap

Business, Product or Service

Opportunity Gap

New Business, Product &

service Ideas

New Business, Product &

service Ideas

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Internal

StructureCulture

Resources

Micro/Industrial

Customers

Government Agencies

NGOs

Financial Institutions

Suppliers

Competitors

Macro/ExternalMacro/ExternalSocio-Cultural

Political & Legislation

Economy

Technology

External EnvironmentExternal Environment

globalglobalglobalglobalnationalnationalnationalnational locallocallocallocal

General Macroeconomic Condition?

Labour Market?

Interest Rate?

Currency value?

Industrial players?

International/

Export mkt?Competitiveness?

Economic

External EnvironmentExternal Environment

Socio-CulturalSocio-CulturalTechnologicalTechnological

Demographic Demographic ChangeChange

Demographic Demographic ChangeChange

Social TrendSocial Trend

Process Process InnovationInnovation

Process Process InnovationInnovation

Pure Invention

Pure Invention

External EnvironmentExternal Environment

Political/legislationPolitical/legislationPolitical/legislationPolitical/legislation

Global IssuesGlobal IssuesNational IssuesNational Issues

taxationtaxation

regulationregulation

Trade agreement

Trade agreementPolitical riskPolitical risk

Trade barriers &

tariff

Trade barriers &

tariff

Micro EnvironmentMicro Environment

ConsumersConsumers

CompetitorsCompetitors

SuppliersSuppliersFinancial Institutions

Financial Institutions

Government Agencies

Government Agencies

Non-Government Organisations

Non-Government Organisations

individuals

industrialLocal

Regional

National/int’l

MonitoringMonitoring

Policies

Policies

Supports: Technical, financial, etc

Supports: Technical, financial, etc

Materials Services

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TheTheUnexpectedUnexpected

TheTheUnexpectedUnexpected TheThe

IncongruousIncongruousTheThe

IncongruousIncongruous

Sources of OpportunitiesSources of Opportunities

opportunitiesopportunities

Process NeedProcess NeedProcess NeedProcess Need

Industry & Industry & mkt Structuresmkt Structures

Industry & Industry & mkt Structuresmkt Structures

DemographicsDemographicsDemographicsDemographics

Change in Change in PerceptionPerception

Change in Change in PerceptionPerception New New

knowledgeknowledgeNew New

knowledgeknowledge

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Creation & length

Real & Perceived

values

Risk & Return

Personal skills & goals

Competitive Situation

Evaluating OpportunitiesEvaluating Opportunities

• List as many needs and wants of UTM students:– Food– Shelter– Entertainment– Study– Transportation– Personal life– Professional development