(Source: New Venture Creation by Jeffrey Timmons and Stephen Spinelli, Jr at the Banson College, Center for Entrepreneurship)
Entrepreneurship is a way of thinking, reasoning, and acting that is opportunity obsessed, holistic in approach and leadership balanced. Entrepreneurship results in the creation, enhancement, realization and renewal of value, not just from owners, but for all participants and stakeholders. At the heart of the process is the creation and/or recognition of opportunities, followed by the will and initiative to seize these opportunities. It requires a willingness to take risks – both personal and financial – but in a calculated fashion in order to constantly shift the odds of success, balancing the risk with the potential reward. Typically, entrepreneurs devise ingenious strategies to marshal their limited resources.
Despite the variety of businesses, entrepreneurs, geographies and technologies, Timmons identify central themes or driving forces that dominate this dynamic entrepreneurial process:
These are controllable components of the entrepreneurial process that can be assessed, influenced and altered. Founders and investors focus on these forces during careful due-diligence processes to analyse the risk and determine what chances can be made to improve a venture’s chance of success.
The Timmons Model of the Entrepreneurial Process is outlined in the attachment.