BS417 - Entrepreneurial Resources

Entrepreneurship

a process of starting up and growing. It emphasizes the importance of money, people, information, etc. that must be acquired to launch and grow new venture.

Entrepreneurial Resources

used by the people who recognize opportunities and start businesses. They are: Human Social Physical Financial Technological Organizational

The entrepreneurial challenge

-new ideas can become great success story and result of signifcant wealth creation if company's resource position is strategically developed - entrepreneurs must first construct their resource base and build a foundation from which capabilities can be developed.

From Idea to Unique advantage

Before there is a company, there is an entrepreneur with an idea - the idea may meet percieved market opporunity, solve a social problem or just be a better way of doing things. One challenge is deciding which resources to focus on when building an initial resource base. Start ups need to focus on creating unique cababilities rooted in innovative combinations of resources.

Source Pyramid of value creation

(Top down) 1. Unique advantage - strategic assets that are valuable, rare and costly to imitate. 2. Strategic Assets - core competencies that contribute to value creating aspects of competitive adavantage 3. Core Competencies- capabulities that are crucial to firms mission and executed consistently well. 4. Capabilities - combinations of generic resources that enhance firm's abilities. 5. Generic Resources - easy to identify and access, given sufficient capital.

How entrepreneurs identify and develop resources

1. Assembling 2. Attracting 3. Combining 4. Transforming personal reources into organizational ones

Resource attributes: Simple versus Complex

SIMPLE -tangible -discrete -property-based -example: financial resources are quantifiable and tangible COMPLEX -Intangible -Systematic -Knowledge based -Example: Human resources are difficult to identify and measure plus largely intangible.

Resource attributes: Utilitarian versus Instrumental

UTILITARIAN -applied directly to the productive process or combined to deveop other resources -examples: machines, trucks and office space INSTRUMENT -Used specifically to provide access to other resources -Example: financial resources.

Resource Development Pathway

is a tool for analyzing the resource development trajectory based on resource types, dimensions and applications. The resource pyramid of value creation can show the level of resource development and create a strategy for extending personal resources to organizational resources and a unique advantage.

Entrepreneur

is the primary resource, and his/her expectations about the future drive decisions about strategic direction (and therefore accumulation)

Constructing an initial resource base

requires that resources be identified, assembled, and acquired to meet a percieved opportunity before they can be used to execute strategy.