ENTREPRENEURIAL PROCESS

Entrepreneurial Process

Entrepreneurial Process

Entrepreneurial Process

The enterprise career is like a corridor with many doors towards new opportunities. Entrepreneurs can not know before starting an enterprise how many new opportunities each corridor will offer. That is why it will be clever to start new enterprise slowly and with caution. The corridor principle means that the most important goal for new entrepreneurs is to learn how they make a business than maximize immediate outcomes and profits. (Kuvaja & Saurio 2004)According to some research results entrepreneurs start to learn at once after starting business activities. Ronstadt (1988) reveals that common business advisers and also business plans give unrealistic advice, if we think needs of most start- up entrepreneurs and that is why we also have to understand corridor principle in our career and venture establishing process. The corridor principle presents a model to the linear single venture career model. Venture career is a linear model and career consists of a pre-start-up period, a start-up period and a post-start period.

Discussion

According to Lamont (1972) entrepreneurs do not learn only from experience but they also profit from it. That means those entrepreneurs who have started their second enterprise and have more experiences tend to do better than the entrepreneurs on their first business. The reason is that they have learned a lot in the corridor of venture career and they are able to use these experiences. Learning (new knowledge) builds up the property in almost all business activities. Many researches have demonstrated the causal relation between knowledge and competitive advantage and knowledge is also identified as the most fundamental strategic asset of the company, which all the other assets depend on (Lamont 2005). This corridor principle moves a person along a venture corridor that allows him or her to see intersecting corridors leading to new career or business opportunities that they could not see before hand. Occasionally, a person may have identified these opportunities but they do not come true until the business has been established. Some see more attractive opportunities and new career or venture corridors open to him/her (Lähdemäki 2003) The minimum economic returns (profits) of earlier ventures can be lower when these ventures are checked later. Entry to subsequent ventures possesses higher (more acceptable) returns to the entrepreneur. The evidence thus far available, indicates that the creation of subsequent ventures or opportunities occurs relatively quickly when corridors of opportunity become visible.

Elements of Entrepreneurship

  Entrepreneurial ventures are organizations that are pursuing opportunities, are characterized by innovative practices, and have growth and profitability as their main goals. Small businesses are independently owned, operated, and financed; have fewer than 100 employees; don't necessarily engage in any new or innovative practices; and have relatively little impact on their industry. (McGovern 2006)

  Entrepreneurship is important in the United States because it impacts innovation, the number of new start-ups, and job creation. Entrepreneurship is important globally because research shows that the level of entrepreneurial activity in a country affects its economic ...