Overview
This lecture introduces entrepreneurial management, defining key terms, exploring the importance of management planning for startups, and outlining the stages of the entrepreneurial process.
Definitions
- An entrepreneur takes personal risk to create or innovate a business or enterprise.
- There are broad and narrow definitions of entrepreneurs, with some emphasizing self-employment and others requiring innovation and leadership.
- Management is the process of directing and facilitating people organized for a common purpose by combining efforts and resources.
- Management functions include getting things done through others, applying authority, and assuming responsibility.
Entrepreneurial Management
- Entrepreneurial management applies structured management practices to startups while maintaining innovation and creativity.
- Managing a new business differs from managing an established company, requiring adaptation of principles and methods.
- Entrepreneurial management plans provide clear goals, coordinate actions, improve resource use, set performance standards, and balance risk.
Benefits of an Entrepreneurial Management Plan
- Establishes clear short-term and long-term goals to motivate and guide the team.
- Coordinates actions by assigning responsibilities and identifying necessary tasks.
- Improves resource management by planning use of limited funds, staff, and time effectively.
- Creates performance standards through defined outcomes and timelines, allowing for progress checks and method adjustments.
- Balances risk by outlining how much personal investment or risk is acceptable for the entrepreneur.
The Entrepreneurial Process
- Entrepreneurship is an ongoing process, repeated with each new venture.
- Discovery: Identify and evaluate business opportunities, seeking broad input for optimal decisions.
- Developing a Business Plan: Create a detailed plan to serve as a benchmark and evaluation tool.
- Resourcing: Secure necessary financing and human resources for operations.
- Managing Company: Decide on management structure and start business operations to achieve set goals.
- Harvesting: Evaluate business growth, compare against plans, and decide on stability or expansion.
Key Terms & Definitions
- Entrepreneur — A person who assumes the risk of starting and operating a new business, often involving innovation.
- Management — The process and function of organizing people and resources to achieve organizational goals.
- Entrepreneurial Process — Steps followed to plan, launch, manage, and evaluate a new business venture.
- Business Plan — A comprehensive document outlining goals, strategies, and evaluation criteria for a new venture.
Action Items / Next Steps
- Review and understand the entrepreneurial process steps.
- Prepare for the continuation of the topic in the next lecture session.
- Read any provided references as directed by the instructor.