2.01 Coming up with new ideas 2.01 – How do entrepreneurial discovery strategies help become opportunities become profitable ventures?

Define the entrepreneurial discovery process Definition for entrepreneurial discovery – the process of systematically scanning for technological, political, and regulatory, social, and demographic changes to discover opportunities to produce new goods and services The entrepreneurial discovery process is a way to recognize and define a market need.

Entrepreneurs are the mechanism by which our economy turns demand into supply They recognize consumer wants and see the economic opportunities in satisfying them They are a principal source of venture capital Contributions of entrepreneurial discovery to society

Your turn to write Name some ways that you know that new products changed your world.

Entrepreneurs usually start with their own funds and then seek out contributions from public and private investors Entrepreneurs provide jobs Successful entrepreneurs change society Henry Ford – was able to mass produce the automobile to be purchased by anyone and revolutionized the manufacturing industry Henry Ford – was able to mass produce the automobile to be purchased by anyone and revolutionized the manufacturing industry Steve Jobs – 1976 Steve Jobs and Steve Wozniak set out to create the Apple computer in their garage and instead started an industry Steve Jobs – 1976 Steve Jobs and Steve Wozniak set out to create the Apple computer in their garage and instead started an industry Contributions of entrepreneurial discovery to society

Entrepreneurs seem to demonstrate the following characteristics Commitment and determination Leadership Opportunity obsession Tolerance of risk, ambiguity and uncertainty Creativity, self-reliance and ability to adapt Motivation to excel

Entrepreneurs capitalize on the following Life experiences Person’s position in a social network Nature of the search process a person uses Ability to focus on the opportunities

Your turn to write Which of these characteristics do you have? What in your life proves that you have them? What life experience do you have that could benefit someone else? What opportunities do you see?

Technological changes Invention of the computer chip Invention of the computer chip Political changes President Obama’s use of YouTube President Obama’s use of YouTube Legal changes How much access should the Government have to your s? How much access should the Government have to your s? Changes that occur with entrepreneurial discovery

Regulatory changes Should eBay and Amazon sales be taxed? Should eBay and Amazon sales be taxed? Social changes The Facebook initiated Arab Spring The Facebook initiated Arab Spring Demographic changes Today’s students are technologically advanced and socially awkward Today’s students are technologically advanced and socially awkward Changes that occur with entrepreneurial discovery

Scientific vs. Circumstantial Discovery Scientific discovery occurs when a physical or technological observation is made Edison noticing that a static electricity discharge gives off light Edison noticing that a static electricity discharge gives off light Circumstantial discovery occurs when an observation is made based on specific knowledge of time, place, or circumstance People who don’t smoke tend to live longer People who don’t smoke tend to live longer

Areas of Entrepreneurial Discovery The reorganization of any industry – obsolescence and invention create new industries The conquest of a new source of supply of raw materials or components – Andrew Carnegie and the steel industry The opening of a new market – NAFTA created open borders for trade

Areas of Entrepreneurial Discovery The introduction of a new method of production Henry Ford’s assembly line Henry Ford’s assembly line The introduction of a new good or a new quality of a good The iPhone 1 The iPhone 1

Stages of entrepreneurial processes DiscoveryEvaluationExploitation