Processes, Entrepreneurial Opportunity, Innovation

Abstract

Definitions and explanations of the entrepreneurial process occur frequently in entrepreneurship literature. Often “entrepreneurial process” and “process of new venture formation” are used as synonyms. However, this book will not adopt this definition, as the new venture or enterprise formation represents only a section of the entrepreneurial process. Many of the explanations are derived from phase or life-cycle based models. In a simplified study of an ideal case, the entrepreneurial process comprises all functions, activities and actions which are associated with the recognition of an entrepreneurial opportunity, its evaluation and corresponding development of a business idea, as well as with writing a business plan, establishing an organization and founding of the enterprise itself, taking into account the required resources, ensuring the viable market establishment of the enterprise and the achievement of growth (opportunity exploitation) [Katz/Gartner (1988); Shane/Venkataraman (2000); Brush (2001); Allen (2003)]. Note that the process to establish a venture in the market place involves substantial sector heterogeneity – the steps which are necessary for establishing a restaurant business will differ considerably from those required for founding a high-tech start-up. [A good discussion of industry-specific entrepreneurship, e.g., in the technology domain, is offered in Dorf/Byers (2008)]