Entrepreneurship is something that has been hyped as of late and many enter head on into it without understanding its various aspects and face certain loss. Research have pointed out that with 100 new startups over 90% of it fail. This has resulted from the misbalance between academic intelligence and practicality (Spinelli, Jr. & Adams). Timmons model talks about how to reduce the risk of such paramount level of business failure by understanding the importance of three basic factors that affect new venture which are opportunities, teams and resources. Any entrepreneur that understands the risk factors involved and can balance these three aspect will have higher rate of success in new startups.
A new venture has to climb over the uncertainty hill, the only thing that will help an entrepreneur to reach the other side to the opportunity would be the team and resources. Resources is a vague word and could mean a lot of things. According to a journal in Chinese entrepreneurship, students who start new venture will require resource in terms of information, human resource and finance. They can only get this through network of entrepreneurs who are in fact the university instructors, advisors and their social networks (Fan-qi, Xiang-zhi, & Li, 2011). People should also be aware as not to let the shadow of money to affect the long term profit.
Similarly entrepreneurs must be able to justify an idea with an opportunity. Not all ideas are opportunity and so understanding the potential of the idea to generate profit and how much of investment and time is required would be important. Most of the time people are so emotionally attached to their idea that they do not clearly see that the idea is a dead end but still keep investing in it.
Team is a part of the trio that is vital for the success. It is in itself a balancing act. Team can either make or break the business. Even in my experience I have seen a lot of business that have stopped due to ineffective team dynamics and ideas. Three friends of mine in my locality, purchased a restaurant and with such zeal initiated a new venture. Two were working and covered the early morning and late night shift while one covered the whole day. Their discussion was to pay the full day working partner remuneration as the other two were holding full time jobs. Around 8 months down, they had a falling out as the full day worker felt he was the only one working and giving time. The income was satisfactory but could not be increased and the remaining partners did not have confidence to leave their job. As the team broke so did the business.
These three components require trust, communication, leadership and rules to function. Without these the three components will also not function well. Timmons model was initially written as a thesis paper and over the year has been improved. The basic trio are still the same but the inter connection and relationship between them have been improved.
References
Fan-qi, Z., Xiang-zhi, B., & Li, S. (2011). Study on entrepreneurial process model for SIFE student team based on Timmons model. Journal of Chinese Entrepreneurship; Bingley , 204-214.
Spinelli, Jr., S., & Adams, R. (n.d.). New Venture Creation . New York City: McGraw-Hill Irwin.
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.
Entrepreneurship is something that has been hyped as of late and many enter head on into it without understanding its various aspects and face certain loss. Research have pointed out that with 100 new startups over 90% of it fail. This has resulted from the misbalance between academic intelligence and practicality (Spinelli, Jr. & Adams). Timmons model talks about how to reduce the risk of such paramount level of business failure by understanding the importance of three basic factors that affect new venture which are opportunities, teams and resources. Any entrepreneur that understands the risk factors involved and can balance these three aspect will have higher rate of success in new startups.
A new venture has to climb over the uncertainty hill, the only thing that will help an entrepreneur to reach the other side to the opportunity would be the team and resources. Resources is a vague word and could mean a lot of things. According to a journal in Chinese entrepreneurship, students who start new venture will require resource in terms of information, human resource and finance. They can only get this through network of entrepreneurs who are in fact the university instructors, advisors and their social networks (Fan-qi, Xiang-zhi, & Li, 2011). People should also be aware as not to let the shadow of money to affect the long term profit.
Similarly entrepreneurs must be able to justify an idea with an opportunity. Not all ideas are opportunity and so understanding the potential of the idea to generate profit and how much of investment and time is required would be important. Most of the time people are so emotionally attached to their idea that they do not clearly see that the idea is a dead end but still keep investing in it.
Team is a part of the trio that is vital for the success. It is in itself a balancing act. Team can either make or break the business. Even in my experience I have seen a lot of business that have stopped due to ineffective team dynamics and ideas. Three friends of mine in my locality, purchased a restaurant and with such zeal initiated a new venture. Two were working and covered the early morning and late night shift while one covered the whole day. Their discussion was to pay the full day working partner remuneration as the other two were holding full time jobs. Around 8 months down, they had a falling out as the full day worker felt he was the only one working and giving time. The income was satisfactory but could not be increased and the remaining partners did not have confidence to leave their job. As the team broke so did the business.
These three components require trust, communication, leadership and rules to function. Without these the three components will also not function well. Timmons model was initially written as a thesis paper and over the year has been improved. The basic trio are still the same but the inter connection and relationship between them have been improved.
References
Fan-qi, Z., Xiang-zhi, B., & Li, S. (2011). Study on entrepreneurial process model for SIFE student team based on Timmons model. Journal of Chinese Entrepreneurship; Bingley , 204-214.
Spinelli, Jr., S., & Adams, R. (n.d.). New Venture Creation . New York City: McGraw-Hill Irwin.