An entrepreneur worked as a designer and gets to know the three- dimensional printing technology. After talking to a friend who works as a surgeon the entrepreneur starts a company that produces bone replacement materials.
a) The entrepreneur’s opportunity recognition was probably influenced by his network which frequently happens.
b) The entrepreneur’s opportunity recognition was probably influenced by his network which rarely happens.
c) The entrepreneur’s opportunity recognition was probably influenced by his previous experience which rarely happens.
d) The entrepreneur’s opportunity recognition was probably a pure coincidence.
Why is having an idea essential but not sufficient for opportunities to emerge?
-> need to cosider coomercial viability, potential market demand profitability, competition, sustainability
-> need to be acted upon
WHat does the process from idea to opportunity look like?
What is risk?
probability of an outcome is possible to calculate or is knowable
What is uncertainty?
the probability of an outcome is not possible to determine or is unknowable
What are characteristics of the opportunity development process?
continuous process of shaping and developing the idea
engagement of other social actors to further develop the idea
-> asking for feedback
different insights shape the raw idea into a valid opportunity
don’t be afraid to change the idea
What are three actions involved in the opportunity development process? And what is the goal?
refine
elaborate
change
=> gradual reduction of uncertainty surrounding the business idea
Which four actions are part of the opportunity development and planning? And what is the aimed outcome?
goal setting
proactive action planning
outcome of business planning
process of business planning
=> positive and significant relationship with venture performance and/or growth
Goal setting - What does SMART stand for?
Action planning - how are goals best achieved?
goals -> broken down in sub-goals
and plans how to achieve sub-goals
What is goal intention?
“ I intend to achieve X “
e.g.: have at leat 1 business opportunity within 1 month which at least 5 people from 3 groups would consider
What is goal implementation intention?
When situation Y arises, I will perform response Z
Dealing with uncertainty - What are the 4 principles of the effectuation framework?
Start with means - What is causation?
=> start with a desired outcome
=> focus on means to generate the outcome
Start with means - What is effectuation?
=> start with resources
=> select among possible outcomes
Affordable loss - What is causation?
=> calculate upside potential and pursue the (risk adjusted) best opportunity
Affordable loss - What is effectuation?
=> calculate downside potential and risk no more than you can afford to lose
What are three actions to take to “risk little and fail cheap”?
limitations of investments
minimizing costs
use of low-cost (or free) resources
Form partnerships - What is causation?
=> set up transactional relationships with customers and suplliers
Form partnerships - What is effectuation?
=> build your future together with customers, suppliers, and even competitors
Leverage surprises - What is causation?
=> avoid surprises
Leverage surprises - What is effectuation?
=> surprises and even failures can represent new opportunities
What does an effectuative approach look like in action? (summary)?
Last changeda year ago
