Entrepreneurship ch11.pptVIP

Part IV – Initiating  Entrepreneurial Ventures Chapter 11 – Assessment and Evaluation of Entrepreneurial Opportunities Chapter 12 – Legal Structures for New Business Ventures Chapter 13 – Legal Issues Related to  Emerging Ventures Chapter 14 – Sources of Capital for  Entrepreneurs Chapter 11 – Assessment and Evaluation of Entrepreneurial Opportunities The Challenge of New-Venture Start-Ups 600,000 new firms have emerged in the United States every year since the early 1990s. The U.S. Patent Office currently reviews more than 375,000 patent applications per year. The Elements Affecting New-Venture Performance Pitfalls in Selecting New Ventures Lack of Objective Evaluation No Real Insight into the Market Inadequate Understanding of Technical Requirements Poor Financial Understanding Lack of Venture Uniqueness Ignorance of Legal Issues Critical Factors for New-Venture Development Uniqueness Investment Sales Growth Lifestyle ventures Small profitable ventures High-growth ventures Product Availability Customer Availability Why New Ventures Fail Product/Market Problems Financial Difficulties Managerial Problems Types and Classes of First-Year Problems 1. Obtaining external financing 2. Internal financial management 3. Sales/marketing 4. Product development 5. Production/operations management 6. General management 7. Human resource management 8. Economic environment 9. Regulatory environment External Problems Experienced by Entrepreneurs Internal Problems Experienced by Entrepreneurs Determinants of New-Venture Failures Lack of mgt. skill Poor mgt. strategy Lack of capitalization Lack of vision Poor product design Key personnelincompetent Lack of mgt. skill Poor mgt. strategy Lack of capitalization Poor external market conditions Poor product design Poor product timing The Evaluation Process Asking th