Enterprise Development Section 1: Entrepreneurship and New Venture Creation

Most popular model for determining characteristics of entrepreneurs?

the big 5/ five factor model

who came up with the Big 5 or FFM

Tupes and Christal (1961)

List the personality traits associated with the FFM/Big 5

openness, conscientiousness, extraversion, agreeableness, neuroticism

Describe ‘The 5 Cognitive Distortions of People Who Get Stuff Done’ (3)

1. Michael C. Dearing 2012, 2. cognitive distortions are filters/lenses that influence thinking, shape perspective on reality and basis for action, 3. 1. personal exceptionalism, 2. dichotomous thinking, 3. correct overgeneralisation, 4. blank canvas thinking, 5. schumpeterianism

9 attributes of successful entrepreneurs accords to Timmons and Spinneli (2009)

1. courage, 2. commitment and determination, 3. leadership, 4. opportunity obsession, 5.tolerance of risk, 6. creativity and innovation, 7. self reliance, 8. adaptability, 9. motivation to excel

Name 3 models for determining the personality traits of successful entrepreneurs

1. Big 5/FFM - Tupes and Christal (1961), 2. Five cognitive distortions of pople who get stuff done - Michael C. Dearing (2012), 3. attributes of successful entrepreneurs - Timmons and Spinelli (2009)

Describe the personality traits model of successful entrepreneurs 

Timmons and Spinelli (2009); 1. courage, 2. commitment and determination, 3. leadership, 4. tolerance of risk, 5. opportunity obsession, 6. creativity and innovation, 7. adaptability, 8. self reliance, 9. motivation to excel 

Describe Hisrich & Peters (1998) key skills of Management Approach as key personality traits of entrepreneurs

1. technical, eg - writing, organising, team builidng, 2. business management, eg - planning, goal setting, marketing, finance, 3. personal entrepreneurial skills, eg - leadership, change management, risk taking

describe the Management Approach to explaining personality traits that make successful entrepreneurs (4)

1. views entrepreneurship as series of learned activities, 2. managerial ability is essential in rapid growth and maturity phase (planning, coordination and control), 3. opportunity focused, calculated risk taker, effective leader and team leader, 4. Hisrich and Peters (1998)

Entrepreneurship as a  process: the start-up process (5)

1. identifying and evaluating the opportunity, 2. developing the business concept and business plan, 3. determining the required resources, 4. acquiring the required resources, 5. managing the venture to achieve objectives 

Entrepreneurship as a process (3 stages)

1. process of creating a new venture, 2. start up process, 3. importance of timing 

5 success factors in a start-up

1. technical knowhow; education, experience, experimentation, 2. product/service idea with a good profit margin, 3. contacts; for technical, marketing an financial issues, with the process, business, customers or suppliers, 4. resources/finances; for fixed assets, research and development, for problems and delays or for business growth, 5. customer/market; effective ways of generating repeat business

4 sources of new venture ideas

1. prior work experience and background, 2. teaming up with a partner who has the product/idea, 3. obtaining rights or a franchise, 4. deliberate search; visiting trade shows, searching for market needs

Describe the Timmons Model of the entrepreneurial process (5)

1. entrepreneurial process is opportunity driven; driven by lead entrepreneur and an entrepreneurial team, 2. creative with its use of resources, 3. depends on fit and balance of team and resources, 4. starts with opportunity not money, strategy or business plan, 5. founder takes charge 

3 primary concepts from which Timmons Model of the Entrepreneurial Process is based off?

opportunity, resources and team

Timmons Model of the Entrepreneurial Process: the Opportunity (

1. the heart of the process; typically less than 10% of ideas pitched are investment worthy, 2. characteristics of a good opportunity; market demand, market size and structure (emerging and/or fragmented, barriers to entry and competitive advantages), 3. margin and operating structure (high operating margin differentiates opportunity from idea - target 40%+ gross margin, free cash flow, breakeven in 1-2 years, capital investments)

Characteristics of good opportunities (3)

1. market demand, 2. market size and structure; emerging and/or fragmented, barriers to entry and competitive advantages, 3. margin and operating structures; high operating margin differentiates an opportunity from an idea (target 40%+ gross margin, free cash flow, breakeven in 1-2 years, capital investment)