The Timmons model is used as a guiding framework to explore issues related to the entrepreneurial process by understanding, analyzing, identifying and evaluating the potential venture (Spinelli, et al., 2007). This model considers opportunities, teams and resources as three important factors for entrepreneurship and the success of an entrepreneur depends on his/her ability to balance these factors. The identification, evaluation and exploitation of opportunities need to be balanced by resource acquisition and team development to make an entrepreneur project successful (Yadav, 2015).
Opportunity identification and evaluation is the heart of entrepreneurial process which is influenced by existing market knowledge, experience in serving markets and understanding of customers’ needs and wants. But it is important to understand that good ideas are not necessarily good opportunities. Opportunities need to be attractive, timely and durable that can be used to generate profit by offering something of value to the customers (Spinelli, et al., 2007). For example: Someone may have the idea to produce electric vehicle but it can be considered as opportunity only if there is need for the product backed up by economic and emotional values it carries and growth potential.
Once the opportunities are identified, the entrepreneur need to make sure that it has the resources available to convert the available opportunity into profitable venture. However it is not necessary that we need to own every resources that are to be used in the process. If we can convince people that our idea will work, the financial resources can be acquired through networks or angel investors. In addition, private equity can also be used for acquiring resources. The entrepreneur should pay attention on developing valuable, inimitable, durable and value capturing resources that can help the company gain competitive advantage in long run (Spinelli, et al., 2007).
As an entrepreneur, one has to look over multiple things and doing everything alone is not possible. So, there should be a team working towards achieving the same goal. The selection of team members is greatly affected by the social networking of the leader. A good team can turn an average idea into brilliant business while incompetent team can lead to failure of the best business ideas. If the team members are willing to learn from one another, resilient, deal with adversity, exhibit dependability and honesty and build inclusive organizational culture, the identification of opportunities and resource acquisition become easier (Spinelli, et al., 2007).
Thus, as an entrepreneur one needs to focus on these forces to improve chances for success. The leadership of the entrepreneur plays major role on identification of opportunities, resource acquisition and team building. S/he is the one responsible for maintaining fit and balance among these variables to attract key players in the team and redefine risk-return equation (Spinelli & Adams).
References
Spinelli, S., & Adams, R. J. (n.d.). New Venture Creation: Entrepreneurship for the 21st Century (Nineth ed.). Irwin: McGraw Hill Education.
Spinelli, S., Neck, H. M., Timmons, J. A., Minniti, M., Zacharakis, A., Rice, M. P., & Habbershon, T. G. (2007). Entrepreneurship: The Engine of Growth (First ed.). United States: Praeger Publishers.
Yadav, M. P. (2015, January). Model of Entrepreneurial Success: A Review and Research Agenda. Journal of Advanced Academic Research (JAAR), 2 , 40-69.
For further actions, you may consider blocking this person and/or reporting abuse
We're a place where students share, stay up-to-date, learn and grow.
The Timmons model is used as a guiding framework to explore issues related to the entrepreneurial process by understanding, analyzing, identifying and evaluating the potential venture (Spinelli, et al., 2007). This model considers opportunities, teams and resources as three important factors for entrepreneurship and the success of an entrepreneur depends on his/her ability to balance these factors. The identification, evaluation and exploitation of opportunities need to be balanced by resource acquisition and team development to make an entrepreneur project successful (Yadav, 2015).
Opportunity identification and evaluation is the heart of entrepreneurial process which is influenced by existing market knowledge, experience in serving markets and understanding of customers’ needs and wants. But it is important to understand that good ideas are not necessarily good opportunities. Opportunities need to be attractive, timely and durable that can be used to generate profit by offering something of value to the customers (Spinelli, et al., 2007). For example: Someone may have the idea to produce electric vehicle but it can be considered as opportunity only if there is need for the product backed up by economic and emotional values it carries and growth potential.
Once the opportunities are identified, the entrepreneur need to make sure that it has the resources available to convert the available opportunity into profitable venture. However it is not necessary that we need to own every resources that are to be used in the process. If we can convince people that our idea will work, the financial resources can be acquired through networks or angel investors. In addition, private equity can also be used for acquiring resources. The entrepreneur should pay attention on developing valuable, inimitable, durable and value capturing resources that can help the company gain competitive advantage in long run (Spinelli, et al., 2007).
As an entrepreneur, one has to look over multiple things and doing everything alone is not possible. So, there should be a team working towards achieving the same goal. The selection of team members is greatly affected by the social networking of the leader. A good team can turn an average idea into brilliant business while incompetent team can lead to failure of the best business ideas. If the team members are willing to learn from one another, resilient, deal with adversity, exhibit dependability and honesty and build inclusive organizational culture, the identification of opportunities and resource acquisition become easier (Spinelli, et al., 2007).
Thus, as an entrepreneur one needs to focus on these forces to improve chances for success. The leadership of the entrepreneur plays major role on identification of opportunities, resource acquisition and team building. S/he is the one responsible for maintaining fit and balance among these variables to attract key players in the team and redefine risk-return equation (Spinelli & Adams).
References
Spinelli, S., & Adams, R. J. (n.d.). New Venture Creation: Entrepreneurship for the 21st Century (Nineth ed.). Irwin: McGraw Hill Education.
Spinelli, S., Neck, H. M., Timmons, J. A., Minniti, M., Zacharakis, A., Rice, M. P., & Habbershon, T. G. (2007). Entrepreneurship: The Engine of Growth (First ed.). United States: Praeger Publishers.
Yadav, M. P. (2015, January). Model of Entrepreneurial Success: A Review and Research Agenda. Journal of Advanced Academic Research (JAAR), 2 , 40-69.