Entrepreneurial Process IM The entrepreneurial process "is a course of action that involves all functions, activities and actions associated with identifying and evaluating perceived opportunities and the bringing together of resources necessary for the successful formation of a new firm to pursue and seize the said opportunities (Bygrave, 1997:2; Cornwall & Naughton, 2003:62)." Personal Achievement Personal Risk taking dissatisfaction Sociological Locus of control Job Networka Teama Personal Entrepreneur Organizational Team Leader Ambiguity tolerance Risk taking Personal values Education Job loss Parents Family Manager Strategy Structure Commitment Education Role models Vision Culture Products Age Commitment Experience Innovation Environment Opportunities Role models Creativity Triggering event Environment Competition Resources Incubator Implementation Government policy Growth Environment Competitors Customers Suppliers Investors Bankers Lawyers Resources Government policy Figure 1. Model of Entrepreneurial Process. Source. Based on Carol Moore's model, presented in "Understanding Entrepreneurial Behavior," in J. A. Pearce II and R. B. Robinson, Jr., eds., Academy of Management Best Papers Proceedings, Forty sixth Annual Meeting of the Academy of Management, Chicago, 1988. This model shows that the process starts with innovation followed by triggering event, implementation and growth. This further shows how a person could get the idea through his experiences or his relentless search. Pursuing the idea also depends on factors like family. friends, career status, opinion leaders, economic conditions and resources. The triggering event is the situation that somehow forced and led the person to pursue the idea. These situations could include changes in job status. Many were fired and forced to do entrepreneurial activities and eventually became successful. This triggering event could have different forms for different people. The implementation is also influenced by several environmental conditions like policies, competition, resources and other personal reasons. The growth stage of the Model of Entrepreneurial Process is also influenced by personal and organizational elements. Organizational elements could include team performance, organizational structure and culture among others. Moreover, these stages required several activities and demanded a number of skills. The table below shows the respective activities and skills from each stages. Stages Entrepreneurial Process - Stage 1 E Entrepreneurial Process - Stage 2 Activities 1. Getting the idea 2. Opportunity identification (idea/scanning the environment, identifying the opportunity, developing the opportunity, evaluating the opportunity and evaluating the team) 3. Opportunity development 4. Opportunity evaluation 5. Assessment of the entrepreneurial team UNCIT TA OMNIA VERITA 1. Motivation to become an entrepreneur 2. Planning 950 3. Gathering resources Skills 1. Technical skills 2. Communication 3. Problem solving 4. Motivation (need for achievement) 5. Adaptability to change 6. Time management skills 7. Financial management 8. Human resources 9. Marketing 10. Networking 1. Technical skills (T/S) 2. Problem solving 3. Numeracy and literacy 4. Communication skills 5. Motivation (need for achievement) 6. Adaptability to change 7. Learning abilities 8. Decision-making skills 9. Negotiating skill 10. Financial management 11. Human resources 12. Legal Skills required for success in stage 3 Entrepreneurial Process - Stage 4 1. improving organizational capabilities 2. implementing a management style in order to grow managerial competencies 3. setting up production processes 4. setting up structures and systems 5. ensuring quality control 6. waste elimination and cost effectiveness activities 7. dealing with distributors and suppliers 8. selling to customers 9. collecting the finance 10. resolving operational problems 11. fending off competitors 12. steering the organization towards its goals and determining the key variables for success VINCIT OMNIA VERIT TAGUM CIT 1950 1. Market expansion 2. Technological change 3. Garnering resources 4. Operations 13. Marketing 14. Networking 15. Planning 16. Role model interpretation 17. Ability to gather and control resources 18. Calculated risk taking 1. Technical skills (T/S) 2. Problem solving 3. Decision making skills 4. Motivation (need for achievement) 5. Time management 6. Negotiating skills 7. Communication skills 8. Adaptability to change 9. Learning abilities 10. Business systems management 11. General management 12. Financial management 13. Human resources management skills 14. ICT skills 15. Marketing 16. Networking 17. Operational 18. Planning 19. Value chain management 20. Creativity 21. Innovation 22. Opportunity recognition 23. Role model interpretation 24. Ability to gather and control resources 25. Calculated risk taking 1. Technical Skills (T/S) 2. Problem solving 3. Adaptability to change 4. Learning abilities 5. Organizational development TAGUM UM C 5. Numeracy and literacy 6. Motivation (need for achievement) 7. Time management 8. Communication skills 9. Negotiating skills 10. Decision making skills 11. Business systems management 12. General management 13. Financial management 14. ICT skills 15. Marketing 16. Networking 17. Operational 18. Research and development 19. Creativity 20. Innovation 21. Opportunity recognition 22. Ability to gather and control resources 23. Calculated risk taking From the above table, it can be noticed that only the motivation as a skill is considered important in all of the stages in the entrepreneurship process. Moreover, marketing is deemed important in all stage except in stage 2. The gathering of resources started to become an important skill from stage 2 until stage 4. Opportunity identification is considered important in stage 1 and 4. Furthermore, human resources management, financial management and technical skills are deemed necessary in stage 3 and 4. Creativity can be seen as an important skill for stage 1 and 3. Lastly, communication, operations and innovation skills are considered key skills in stage 3.