ENES 140 Lecture Notes - Lecture 1: Opportunity Cost

• School: University of Maryland
• Department: Engineering Science
• Course: ENES 140
• Professor: James Green

Document Summary

Undertaking the creation of an enterprise or business that has the chance of profit or success. As defined by harvard professor howard stevenson, entrepreneurship is the pursuit of opportunity beyond resources controlled. Money : 97% of the worlds millionaires are entrepreneurs, however, law, computer science and engineering majors make more money, so there is a large risk. Opportunity analysis: look at primary and secondary research. Catch-22 it is difficult to reduce risk without resources, but it can also be difficult to persuade resource owners to commit to a venture with high risk. Lean experimentation (cid:396)ely o(cid:374) (cid:862)(cid:373)i(cid:374)i(cid:373)u(cid:373) (cid:448)ia(cid:271)le p(cid:396)odu(cid:272)t(cid:863) to (cid:396)esol(cid:448)e (cid:396)isks (cid:395)ui(cid:272)kly a(cid:374)d with limited resource expenditure. Staged investing entrepreneurs can address risks sequentially by expending only the resources need to meet a given milestone before committing resources for the next milestone. Partnering - allows entrepreneurs to leverage anothe(cid:396) o(cid:396)ga(cid:374)izatio(cid:374)"s (cid:396)esou(cid:396)(cid:272)es a(cid:374)d thereby shifts risks to parties better able/more willing to bear them.