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MGT602 - Entrepreneurship - Lecture Handout 15

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  1. To explain the aspects of the entrepreneurial process.
  2. To explain the differences between entrepreneurial and managerial domains.
  3. To explain the organizational environment conducive for entrepreneurship.
  4. To identify the general characteristics of an Entrepreneur.
  5. To explain the process of establishing entrepreneurship in an organization.


A sound idea for a new product or service, properly evaluated, is essential to successfully launch a new venture. Some of the more frequently used ideas for new entrepreneur include consumers, existing companies, distribution channels, the federal government and research and development


Potential entrepreneurs should pay close attention to the final focal point of the idea for a new product or service the potential consumer. This can be an informal or formal survey of consumers expressing their opinions. Care should be taken to ensure that the idea represents a large enough market.

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MGT602 - Entrepreneurship - Lecture Handout 02

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  1. To introduce the concept of entrepreneurship and its historical development.
  2. To explain the entrepreneurial decision process.

Desirability of New Venture Formation

(Aspects of a situation that make it desirable to start a new company)

The perception that starting a new company is desirable results from an individual’s culture, subculture, family, teachers and peers.
American culture places a high value on being your own boss, being a success and making money therefore, it is not surprising to find a high rate of company formation in the United States. On the other hand in some countries making money is not as valued and failure may be a disgrace. The rate of business formation in these countries is not as high. Many subcultures that shape value systems operate within a cultural framework.
Studies indicate that a high percentage of founders of companies had fathers and/or mothers who valued independence. Encouragement to form a company is also gained from teachers, who can significantly influence individuals. An area having a strong educational base is also a requirement for entrepreneurial activity. Peers are important, also, as is an area with an entrepreneurial pool and peer-meeting place.

Possibility of New Venture Formation

(Factors making it possible to create a new venture)

  • Although the desire of new venture formation derived from the individual’s culture, subculture, family, teachers and peers needs to be present before any action is taken, the second feature necessary centers around this question “What makes it possible to form a new company?”

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