Dollinger index

82 ENTREPRENEURSHIP

In summary, the entrepreneur must be knowledgeable about a variety of political

issues, particularly those related to securing, protecting, and disposing of resources. The

effect of political power on property rights is of primary concern. Table 3.2 presents the

four levels at which political and governmental analysis should be performed.

STAKEHOLDER ANALYSIS

How many different individuals, groups, and interests can influence the survival, devel-

opment, and profitability of the new venture? Quite a few. In this section, we will dis-

cuss stakeholders and stakeholder analysis.

Stakeholder analysis helps the entrepreneur identify which groups and interests are

friendly to the new venture and which are hostile. It enables the entrepreneur to see

whether any groups have an immediate affinity for the product or service, and whether

this affinity can be translated into a market. The analysis also reveals trends regarding

consumer attitudes and behavior for the new venture’s products, competing products,

and complementary goods.

Seven Dimensions

Stakeholders’ influences can be both positive and negative. Not all stakeholders are alike.

Stakeholders may vary along the following seven dimensions^12 :

Resource capability: The degree to which stakeholders have access to resources that

help influence businesses or agencies that can be categorized in the same way as

described in Chapter 2 (financial, physical, technical, reputational, human, and

organizational; rare, valuable, hard to copy, and nonsubstitutable).

Extent of influence: The degree to which the interest group is able to promote its agen-

da. Some stakeholders are organized as lobbying groups and have enormous influ-

ence—for example, the National Rifle Association or Mothers against Drunk

Driving.

Degree of organization: The extent to which stakeholders are organized for collective

action locally, regionally, and nationally. Some stakeholders are very well organized

State and

Global National Region al Local

Trade barriers Taxation Taxation Taxation

Trade agreements Regulation Securities law Zoning

Tariffs and duties Antitrust legislation Licensing

Political risk Patent protection Incentives

Government

spending

TABLE 3.2 Political and Governmental Concerns