A Framework for Entrepreneurship 27
and the strategies they employ. This resource-based theory is described in greater detail
in Chapter 2, where we also examine different types of resources and capabilities, and
explore the relative importance of each.
Chapter 3 explains the environment for entrepreneurship as having two interrelated
components: (1) a remote environment that cannot be controlled by the entrepreneur,
and (2) a competitive environment in which the entrepreneur executes his or her strate-
gies and plans. The importance of environmental scanning and a model for scanning are
also presented in this chapter. Chapter 4 details exactly how entrepreneurs go into busi-
ness by looking at the strategies they pursue. We will also introduce the Information
Rules strategies that are critical to the success of ventures based on information. Chapter
5 explains the basics of writing the business plan. The plan is required for all new ven-
tures and it signifies the transition from planning to implementation. We offer an exam-
ple of a business plan as the appendix to Chapter 5.
After Chapter 5, we make the transition from the formulation of venture strategy to
the implementation phase. Chapter 6 examines the marketing-entrepreneurship inter-
face. We examine how the success of the venture is enhanced with effective marketing.
We also cover many of the marketing, sales, and pricing strategies that are critical for the
new venture. The advent of electronic commerce and the Internet has changed forever
the nature of starting a business for those who incorporate technology into their opera-
tions and products. We will focus on information-related businesses and see how the
combination of having rare, valuable, and hard-to-copy information and the Internet
provide new opportunities for entrepreneurs.
Chapter 7 describes the foundations of entrepreneurial financing, including debt,
equity, and cash flow. Chapter 8 continues the discussion of financial issues by looking
at how investors and entrepreneurs view each other, and describes how they are likely to
want to structure a financial deal. The chapter also covers legal and taxation issues.
Chapter 9 explores the new venture’s organization. We will look at how some orga-
nizations are strong from the start and have characteristics that enable them to persevere
through many business cycles. Our discussion is based on Collins and Porras’s book,
Built to Last. Chapter 10 describes corporate venturing and intrapreneurship. We see
how large organizations try to keep fresh so they can remain innovative and entrepre-
neurial. In this final chapter, we introduce the Balanced Scorecardconcepts.
The 10 chapters are followed by a selection of cases drawn from real situations and
business plans. These cases illustrate the possibilities and opportunities facing entrepre-
neurs.
A FINAL WORD
Not everyone will succeed as an entrepreneur, and sometimes the people who do suc-
ceed do so only after a number of painful attempts. As the introductory quote illustrates,
studying entrepreneurship and being an entrepreneur are two different things. The odds
of success are quite different in these two endeavors, and the outcomes are evaluated by
different criteria. However, the student of entrepreneurship should realize that he or she
can be a successful entrepreneur. Previous academic achievement is not a requirement.
