Thursday, 13 December 2018

Predictors of Entrepreneurial Success

Factors that may predict entrepreneurial success include the following:

 


Methods
  •     Establishing strategies for the firm, including growth and survival strategies
  •     Maintaining the human resources (recruiting and retaining talented employees and executives)
  •     Ensuring the availability of required materials (e.g. raw resources used in manufacturing, computer chips, etc.)
  •     Ensuring that the firm has one or more unique competitive advantages
  •     Ensuring good organizational design, sound governance and organizational coordination
  •     Congruency with the culture of the society

Market
  •     Business-to-business (B2B) or business-to-consumer (B2C) models can be used
  •     High growth market
  •     Target customers or markets that are untapped or missed by others

Industry

  •     Growing industry
  •     High technology impact on the industry
  •     High capital intensity
  •     Small average incumbent firm size

Team

  •     Large, gender-diverse and racially diverse team with a range of talents, rather than an individual entrepreneur
  •     Graduate degrees
  •     Management experience prior to start-up
  •     Work experience in the start-up industry
  •     Employed full-time prior to new venture as opposed to unemployed
  •     Prior entrepreneurial experience
  •     Full-time involvement in the new venture
  •     Motivated by a range of goals, not just profit
  •     Number and diversity of team members' social ties and breadth of their business networks

Company

  •     Written business plan
  •     Focus on a unified, connected product line or service line
  •     Competition based on a dimension other than price (e.g. quality or service)
  •     Early, frequent intense and well-targeted marketing
  •     Tight financial controls
  •     Sufficient start-up and growth capital
  •     Corporation model, not sole proprietorship

Status

  •     Wealth can enable an entrepreneur to cover start-up costs and deal with cash flow challenges
  •     Dominant race, ethnicity or gender in a socially stratified culture

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