Looking at entrepreneurship, we have highlighted what entrepreneurship means on a global scale. Also, how it can provide benefits on a societal level, and draw from a supportive entrepreneurial culture. Then we examined startup formation types, and how an initial opportunity generates entrepreneurial intent and progress into action. Having touched on a very broad overview of macro elements in an entrepreneurial environment, we will now start to explore some micro entrepreneurial processes.
What is meant by the entrepreneurial process?
The entrepreneurial process is dynamic and is all about the founder/ founding team; the opportunity and opportunity evaluation; needed resources for starting the venture; and a business model that pulls all elements together. It is an integrated holistic process that aims to balance all elements in a business model. It allows the firm to be (1) economically sustainable, (2) care for the environment, (3) support the community, and (4) provide benefits to society at large.
Furthermore, these elements can be controlled if it can be assessed, influenced and altered. Ultimately, one want to provide a better fit with the situational conditions (market demand, mostly driven by customer pains). Therefore, the entrepreneurial process reflects a fluid relationship between all the elements in the business model. Meaning that it is a continuous process of matching capabilities and resources internal to the firm to the changes in the macro environment.
This emphasises the need to continuously monitor core elements in the entrepreneurial process. Allowing one to manage and adapt the business model as changes arise and disrupt equilibrium. The three driving forces in the entrepreneurial process are (1) the opportunity, (2) resources, and (3) the founder or founding team.
So what does this mean?
The opportunity arises from the market segment that best matches the customer pain with the market offering.
Resources come in many forms such as capital (financial), skill (people), access (social connections), assets (building, equipment, supplies, stock etc.).
The founder or founding team is a key ingredient in the entrepreneurial process.
In the next blog, each driving force will be discussed separately and in more detail. We will also say more about the relationships between them to provide a better understanding of the complexities in the entrepreneurial process.