ENTREPRENEURSHIP VENTURE LIFE CYCLE By: Elisante Ole Gabriel (Tanzania)

Key Issues about the Venture Cycle There are static and dynamic forces which need a special attention of the entrepreneur There are static and dynamic forces which need a special attention of the entrepreneur Entrepreneur needs to manage for changes and not changes Entrepreneur needs to manage for changes and not changes The growth stage of the venture is more sophisticated with competition and dilemmas The growth stage of the venture is more sophisticated with competition and dilemmas At a certain stage, you need to decide whether to do more innovation or allow decline At a certain stage, you need to decide whether to do more innovation or allow decline

Stages of the VC - Model There are five key stages (just typical) (i) New Venture Development (ii) Start-up Activities (iii) Growth of the Venture (iv) Stabilization (v) Innovation or Decline

New venture dvt Stage Creativity and assessment Creativity and assessment Resource base analysis Resource base analysis Networking including vertical marketing Networking including vertical marketing Vision, Mission, Objectives, Strategies & Tactics Vision, Mission, Objectives, Strategies & Tactics

Start-up Stage Formal Business plan Formal Business plan Searching for capital (Analyse the risks) Searching for capital (Analyse the risks) Marketing research Marketing research Developing a working team Developing a working team Identifying any core competencies for Competitive Advantage Identifying any core competencies for Competitive Advantage

Growth Stage Any modification on he operating strategy Any modification on he operating strategy Positioning and re-positioning Positioning and re-positioning Knowing more details about he competitors (Survival of the fittest) Knowing more details about he competitors (Survival of the fittest)

Stabilization Stage Increased competition Increased competition High bargaining power of customers High bargaining power of customers Saturation of the market Saturation of the market The entrepreneur needs to think where will the business be in the near future The entrepreneur needs to think where will the business be in the near future It is a stage preceding a great dilemma: to innovate or exit the business It is a stage preceding a great dilemma: to innovate or exit the business

Innovation or Decline? stage Without innovation the clear option is ‘death’ Without innovation the clear option is ‘death’ Possibility of acquiring or being acquired Possibility of acquiring or being acquired Might design new products for new markets (Diversification) Might design new products for new markets (Diversification)Conclusion ALL STAGES ARE STRATEGIC POINTS OF THE VENTURE HENCE A NEED FOR SPECIFIC STRATEGIES FOR EVERY STAGE! Finally