Entrepreneurship

📖 4 Entrepreneurial Process Stages [Model]

📖 4 Entrepreneurial Process Stages [Model]
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The entrepreneurial process stages that needs to happen to start a business is not easy for anyone. Many people have reasons to be an entrepreneur, many say the things that should be done, and a few are the ones who really do what is needed to start. It is very common to see people who think, but a few who act. The entrepreneurial process stages can be developed one step at a time, but some entrepreneurs are the ones who continue on this lifestyle.

The entrepreneurial spirit is on those who decide to take one step ahead to achieve success. It is a long-term process, that visionaires will have to keep on working to transform their environment. There are several models created by academics, that shows what is the entrepreneurial process about.

Entrepreneurial process definition

The entrepreneurial development of a person goes beyond education, which requires various factors to take place this complex process. I added the definition of William Bygrave, a professor at Babson College, about the entrepreneurial process.

The entrepreneurial process is a set of stages and events that follow one another. These entreprenurial process stages are: the idea or conception of the business, the event that triggers the operations, implementation and growth.  A critical factor that drive the development of the business at each stage as with most human behavior, entrepreneurial traits are shaped by personal attributes and environment.

The attitudes of the people are those who are shaping their own surroundings, if an entrepreneur looks for the characteristics of successful people, their chances of success increase.

Entrepreneurial process stages

In the rest of the article it can be found two models that reflect what the entrepreneurial process is. In this section I will mention the stages of the model of the University of Pretoria, trying to simplify main points that an entrepreneur should consider.

1. Idea generation

The entrepreneur begins to wonder why there is not available a product or service, why not improve certain things, how to generate income to cover their expenses, etc. Thousands of questions might rise, so them will help to identify opportunities to meet the market needs. In previous years, there where not enough amount of goods and services. It was a little bit easier to position a business, however now it requires a search for information and market analysis to see the possibility of success.

It is possible that at this point in the entrepreneurial process, there are many people, since the generation of ideas can be much easier. However, the step towards a decision making is where many can stop and perhaps even abandon the idea from the starting a business.

2. Decision making and business planning

A critical point in the entrepreneurial process is deciding to start the project. Be active and stay motivated are the main factors for the entrepreneur to start landing his idea. Asking what resources are needed and where he will get them, is vital to generate at least one way forward for the entrepreneur. The development of the business plan will mark only a guide that can be used as reference.

3. Project creation

The project is conducted when the entrepreneur decides to seek and obtain resources. Getting financiation is difficult, and perhaps one of the main obstacles to start a business. When the entrepreneur begins to invest the resources and and begin operating, it is a point release of stress, as the entrepreneur will see the first steps of his company.

4. Management and control

After having pass through the first months of operation, the company will see if it decreases, maintains or increases in sales. The entrepreneur should strive to maintain revenue growth before worrying about having a nice office. Managing a business is not easy, but the experience that entrepreneurs acquire over time will surely ease the handling of all resources.

Perhaps one could say that the entrepreneurial process ends here, but I think it is no longer an entrepreneur, and he becomes a full businessman or businesswoman.

The entrepreneurial process model by Hisrich and Peters

One of the models on the entrepreneurial process is of Robert Hisrich, a professor at the Thunderbird School of Global Management and Michael P. Peters author of several books on entrepreneurship. This model establishes the various factors and events surrounding the entrepreneurial process.
Entrepreneurial process by Hirish y Peters

The entrepreneurial process model of the University of Pretoria

Within the study and analysis of the University of Pretoria, they made its own model, which mixes different ideologies of different authors to adapt their entrepreneurial model. This model stands out more for its definition of stages and events throughout the process.

Entrepreneurial process by Pretoria University

4 Entrepreneurial process events stages

Within the entrepreneurial process, there are different events that are generated along the process.

1. Innovation

It is the time when the entrepreneur generates the innovative idea, identifies the market opportunity, and look for information. Also, it begins to see the feasibility of ideas, the ability to get value from it and how to generate the development of the product or service.

2. Triggering event

This event is the gestation time of the project. The entrepreneur begins to motivate himself to start a business and to decide to proceed with. The business plan is created, as well as the identification of the resources required, the project risk, the source of the funds and how they would use them.

3. Implementation

This event includes the incorporation of resources and arm the project to launch their new business to the market. The strategy and business plan begin to develop day by day, and the use of resources are invested in favor of building a successful company.

4. Growth

The ideal event for any entrepreneur is to see how their company is constantly growing. The activities of the previous event, ideally lead the business to a stage of maturity to maximize profitability for better benefits. Growth is the stage of the entrepreneurial process in which is reflected time and effort spent by the entrepreneur. At this time, to keep up the pace of the business growth, the entrepreneur must keep up his personal development to continue also his internal growth.

The Entrepreneurial Process Video Example

References

Brazilian Administration Review

University of Pretoria

The Author

Carlos Barraza

Carlos Barraza

Business Administration and International Marketing graduated from Tecnológico de Monterrey & Hochschule Pforzheim. Social Media Institute and Hubspot certified. Entrepreneur and blogger.

3 Comments

  1. June 15, 2016 at 10:29 am — Reply

    Enhorabuena, es un buen aporte, creo que expones con gran acierto los pasos del “proceso emprendedor”para principiantes o “recien llegados”.

    Ahora bien, y aunque sea un post para principante, hecho en falta referencias a otras disciplinas o circunstancias que concurren en este “proceso emprendedor” como es la vertiente psicológica (todos pasamos días malos y de frustración) y, en especial, la faceta legal o jurídica.

    Me ha llamado la atención esta última, la del tema legal porque es el sector al que me dedico y, desde la experiencia, hay bastantes lagunas o falta de información y asesoramiento jurídico para los emprendedores.

    Estaría genial un post sobre este tema. Un gran post y una gran web, mis felicitaciones.

    Un saludo.

    • June 15, 2016 at 5:53 pm — Reply

      Gracias por tu comentario Florentino. Vaya que lo que rodea a un emprendedor es muy complejo que un post no me basta para describir todo lo que vivimos. Ciertamente, los aspectos legales son un punto que están dentro de las listas de prioridades de los emprendedores y varía de país a país. El área jurídica no es un tema de mi expertise, pero sin duda buscaré después desarrollar un post del tema, o bien si gustan podrían enviarme algún artículo suyo y con gusto lo agrego al blog. Saludos!

      • June 16, 2016 at 9:24 am — Reply

        Es cierto, un post no alcanza a cubrir todas facetas del día a día de un emprendedor, quizás un blog en exclusiva tampoco sea suficiente, jeje. En cuanto a la posibilidad de publicar un artículo sobre temas legales o jurídicos, nosotros estaríamos encantados de poder colaborar con tu blog. Si te parece, podemos concretar un poco los detalles y nos ponemos manos a la obra.

        Nuevamente, enhorabuena por el post.
        Un saludo.

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