1. Managing Entrepreneurship and Innovation 1. The Opportunity: Frameworks for Entrepreneurial Activity

2. Key definitions If entrepreneurship is ‘the pursuit of opportunity without regard to resources currently controlled’, then the nature of the ‘opportunity’ is crucial Seizing the opportunity for a new venture is a strategic orientation requiring speed of thought & action

3. Contents of the lecture Relevant qualities of the entrepreneur Why are there gaps in the market? Opportunities by default & design Identifying gaps in the market Selecting the best ideas

4. The Entrepreneur I Strategic windows of opportunity for teams or individual entrepreneurs may include: retirement from employment financial independence industry expertise positional authority functional expertise completed an MBA...

5. The Entrepreneur II Action may be driven by: diminishing opportunity streams, so need to find new ones rapid change in e.g. technology, taste, law He or she may be: opportunistic and cunning creative and innovative (or all of these)

6. The Entrepreneur III He or she is committed to the opportunity so acts quickly, and gets out fast too. Early recognition of opportunity driven by: need to be 1 st movers in the market swift decision avoids costs of late entry risk is managed to hasten entry & exit few stakeholders allow flexible decisions

7. Why are there gaps in markets? Organisational theory says: firms are cultures, so have ways of seeing- they have habits, blind spots & rigidities Classical economic theory says: entrepreneurs are arbitrageurs taking advantage of market inefficiencies but leaving gaps is rational for established firms, as integrating new ideas costs £££s

8. Opportunities by default Scale: gaps are too small for big firms Inertia: big firms are too slow to innovate Corporate culture & politics: internal constraints within firms hamper innovation Perception: few see opportunities, or have enough initiative to pursue them Government: regulation of monopolies or new subsidies alters the marketplace

9. Opportunities by design Clear routes exist for entrepreneurial innovators to initiate new ventures: New product or service Improved product or service New means of production New distribution channel Creating value, not just lowering costs

10. Identifying gaps in the market Strategies exist to help formulate innovative ideas for entrepreneurial success: analysis of market & product possibilities looking outside well-known growth areas thinking laterally about the obvious employers/customers as ‘idea generators’ visualisation, or creative day-dreaming

11. Selecting the best ideas Most entrepreneurial ventures fail, so picking potential winners is vital: do enough customers want what you sell? can you protect your idea or raise barriers to competitor entry? is the business viable in the long term? how manageable are the risks? how much can you afford to lose?

12. Conclusion Opportunities arise by design or default: factors push/pull entrepreneurs into action Successful ventures require: commitment, flexibility & speed clearly-defined gaps in the market sharp analysis & keen appreciation of risk courage & a fair degree of luck...

13. Sources Used Wickham, Strategic Entrepreneurship 2 nd edition, chaps. 13-16 S. Birley & D. Muzyka, eds., Mastering Entrepreneurship (Prentice Hall, 2000) chap. 2 M. Harvey & R. Evans, ‘Strategic windows in the entrepreneurial process’, Journal of Business Venturing 10 (5) (1995)