Theory
Reading Outcomes
Define what "entrepreneur" and "entrepreneurship" means to you
Summarize the process entrepreneurs use to generate ideas and shape them into opportunities
Part 1 - Absorb
Entrepreneur
What does this word "entrepreneur" mean to you?
The etymology of entrepreneur comes from the French, entreprendre, a verb meaning to undertake (Merriam-Webster). When we think of a person undertaking something, then we have someone who does something and takes action.
Definitions:
entrepreneur - one who organizes, manages, and assumes the risks of a business or enterprise
entrepreneurship - one who organizes, manages, and assumes the risks of a business or enterprise
entrepreneurial - having to do with relating to, characteristic of, or suited to an entrepreneur
entrepreneurial mindset- "a set of skills that enable people to identify and make the most of opportunities, overcome and learn from setbacks, and succeed in a variety of settings. Research shows that an entrepreneurial mindset is valued by employers, boosts educational attainment and performance, and is crucial for creating new businesses."
non-profit - not conducted or maintained for the purpose of making a profit
intrapreneurial - Intrapreneurship is the act of behaving like an entrepreneur while working within a large organization
Perhaps this is why entrepreneurship and innovation are so closely connected. Many innovative processes, products, and ideas come from entrepreneurial people who are looking to act, to do something, to improve and make the world better.
Innovation is about improving, changing, and making something work better or just creating something totally new.
Read "10 Ways Entrepreneurs Think Differently" an article by Jayson DeMers, Founder and CEO of AudienceBloom
Read the landing page from NFTE about an entrepreneurial mindset
Do
Reflect on the various meanings of entrepreneurship. You will put into your Entrepreneurial Reflection assignment that will be due AFTER completing the next set of assigned reading.
Entrepreneurs use an entrepreneurial mindset to solve problems.
Problems
Entrepreneurs solve problems or meet unmet needs. They provide solutions in a variety of ways that help ease the "pain" or frustration someone is experiencing and fills in. If an entrepreneur is offering something that someone else needs, then value is created.
When someone's problem (or need is met), they find value in this and may be willing to pay money, although it does not always have to be a monetary exchange.
Value is the relationship between the benefit that is provided to have a problem fixed (or need met) and the amount to which the person fixes the problem (or need).
Solutions
Solutions are what attempt to fix the problem or meet the need. Solutions start as ideas. Ideas can come and go, but opportunities are the ideas that are worked on and then presented to people with the problem or need.
As Richard Branson, founder of Virgin Records says, “Ideas are like buses, there is another one coming down the street.”
But, a solution isn't just an idea. A solution is an idea developed over time that brings enough value to people to become an opportunity or entrepreneurial endeavor of some sort. Think: for profit or nonprofit (see above).
The way an entrepreneur can communicate about this value translates into a value proposition statement.
A value proposition describes what the problem is and how your solution meets this problem. Additionally it should explain the main benefit the product/service provides. It should be to the point and able to be explained in less than a minute.
What is the problem that your solution addresses?
How does your solution solve this problem?
What is the main benefit your solution provides?
At its most simple explanation, you aren't a business (or enterprise or nonprofit) until someone is willing to pay for (or use) what you offer.
Why is someone willing to pay for or use what you are offering?
Because they understand a value in what is being offered.
For example:
What did you stop and buy this week at a store? Why did you stop?
Think for a minute, was it something you needed or just wanted?
I went to the grocery store today for milk. I stopped at the store on the corner which cost a little more than Market Basket because it was closer to me. This saved me time.
Need: milk
Solution: convenience store
Value: convenience, time saved
I went to Mill No 5 this weekend to get a present for my sister. I drove further and went out of my way because I knew I would find a cool necklace she would like at one of the local shops. I was willing to do this because I knew I would get something unique for her and that would make her happy.
Problem: need a cool gift
Solution: local shop
Value: unique and will make sister very happy
Part 3 - Absorb
No matter how an idea is generated, critical thinking skills are essential to understanding the breadth and depth of the problem.
Use these skills to help identify problems!
Where can you find problems to solve?
Find inefficiencies in the marketplace - are there things out there that don’t work well? How could you improve them? How could you take a product or service and make it better?
Find gaps in the marketplace - are there things missing?
Can you improve upon an existing idea?
Talk with people who have a particular problem. Listen. How could their problem be solved? Could you come up with a way to solve their problem? *NOTE: We call this customer discovery.
Talk with people already trying to solve their problems. They could be early adopters to your future solution. Could this way in which they are solving their problem be a gap in the marketplace or an improvement on something already out there? Could you brainstorm more solutions?
Could you take a unique spin off of other ideas out there? Could you make it even better?
Could you focus on social problems that mean something to you and figure out a way to help solve the problem by focusing on one aspect of it and trying to come up with a solution for that one part? Not sure what a social problem is? Read “What is a Social Problem?” from the University of Minnesota's open source book "Social Problems, Continuity and Change" here
Keep up with news and read articles, ideas can always pop up while understanding the problems, pains, and issues people face from all aspects of life.
Idea Generation
Great example problems:
Leftover hotel soaps
Excess of swimming pools going unused
Lack of access to basic medical supplies, equipment, and assistance for older adults
Dangerous microplastics are polluting our water supply, most of these come from washing our clothing
Too many cosmetics on counter while getting ready
Difficulty finding a variety of wigs
Fathers not knowing how to braid hair
Part 4 - Absorb
How do entrepreneurs use problem solving skills to find problems?
Review Spotting Potential Problems slide show
Part 5 - Absorb
CASE STUDY
Let's take a look at a local example of how acting entrepreneurially has created value and discover how an idea became an opportunity.
Learn more about LexSeeHer.
After you read the article, head to their website HERE.
While you explore consider the following:
What problem were they trying to solve?
Why was this problem important?
What is their solution?
Describe the type enterprise they created?
Do they make profit or provide a service?
What value does this solution provide to people?
What are they currently doing?
_Something Is Being Done_ monument in Lexington highlights historic women.pdf