DIGITAL ENTREPRENEURSHIP #1
What is Entrepreneurship?
- Entrepreneurship has been classified into 3 different streams in literature:
- “The pursuit of an opportunity without concern for current resources or capabilities” [Stevenson, Roberts + Grousebeck 1985]
- “The creation of organisations, new organisations come into existence” [Gartner 1990]
- “The processes whereby an individual, or a group of individuals, in association w/ an existing organisation, create a new organisation or strategic renewal or innovation within that organisation” [Sharma + Christman 1999]
- All these perspectives are included when people start to create a new business: idea generation, sense + identify opportunity, products or services + targeted market
- Entrepreneurship need to be continued to keep market share: e.g BlackBerry had 20.7% of worldwide market share in 2009, but 0% in 2016
Idea Generation
- "Big things have small beginnings"
Good business ideas are generally:
- Creative: new, not easily replicated + have first-mover advantage
- Feasible: not difficult to implement, consistent w current technological landscape
- Impactful: have potential to change the existing market
What determines a good business idea?
- Commercial viability: idea must work within the constraints of a start-up business. Inventions may require such large amounts of start-up capital that they're untenable, or may not be able to be commercialised if they're unable to be made + sold profitably/linearly
- Serves a purpose: must solve a problem or there's unlikely to be any demand. Value must be clear and customers must recognise it
- Potential for further growth: could manifest as an expanded product range or activity in new markets. Operating in an expanding sector is preferable. Must also be able to leverage to the Internet to increase sales + expand customer base
- Able to generate a profit: must be commercially viable. Investors won't back you without research that factors in how much it will cost to make the product + how much it will sell for
Opportunity + Ideas
What can an opportunity be?
- An unsolved problem/gap in the market
- Demand-based from customers
- Knowledge-based w new tech or innovations
- An interest or hobby that can be monetised
How is opportunity discovered?
- Prior experience
- Information asymmetry: one party has better/more information that the other when making decisions + transactions
What must an opportunity be?
- It must have timing
- It must be attractive
- It must be durable
What should a Business Plan Draft include?
- Ideas: what they are
- Scope: the boundary, + how big it is
- Related Trends: social, economic or political trends
- Key Stakeholders: potential clients and partners
- Barriers: technical, cultural, regulatory
- Positioning: in what context + market
- Competition: potential competitors
- Funding: investors, funding bodies
- Timing: when to enter the market
Products or Services
Services/Products should be developed in regards to:
- Specific solutions in reality
- Their level [individual, firm or hybrid]
- Response from customers + market
- Variety [a wide range to suit different targets]
- New developments of services/products
- Need to consider target segments: the context, which particular segments + how to deliver to them