- Illustrate the key components of the Practice of Entrepreneurship


[SLIDE 1]

The Practice of Entrepreneurship provides a way for entrepreneurs to embrace and confront uncertainty rather than to avoid it. It emphasizes smart action over planning and is a method that can learned over time. Although this is far from a guarantee for success, it does offer five powerful assurances.<ol>
<li>You will act sooner, even when you don't know exactly what to do.</li>
<li>For those things you can do, you will; and for those things you can't, you will try</li>
<li>You will try more times because trying early is a low-cost experiment</li>
<li>You will fail sooner, enabling better, higher quality information to be incorporated into the next iteration</li>
<li>You'll experiment with new ideas simultaneously.</li>
</ol>

[SLIDE 2]

Now that we understand the difference between the method and practice of entrepreneurship, we can identify the main components of The Practice of Entrepreneurship. The entire structure is shown in this figure, but let's look at each component in detail. 


[SLIDE 3]

First, identify your desired impact on the world. This can be anything:<ul>
<li>To be successful?</li>
<li>To build something new?</li>
<li>To achieve something larger than yourself?</li>
</ul>
Rarely is entrepreneurship about making money. In general, the reasons why people start businesses go much deeper. Some people pursue what they love, others seek autonomy, while others still have a strong desire to bring something new to market. The profit motive does not give rise to sustainable businesses in the long-term because entrepreneurship requires motivation that comes from deep within. 


[SLIDE 4]

Second, start with the means at hand. Remember that entrepreneurs following the creation logic do not wait until they have everything they need – they use what they have. To understand your resource base, you can ask yourself the following questions:<ul>
<li>Who am I?</li>
<li>What do I know?</li>
<li>Whom do I know?</li>
</ul>

[SLIDE 5]

Third, describe the idea today. This is connected to understanding your current resources. What this means is asking yourself:

What can you start to do today with what you have today?


[SLIDE 6]

Since perceptions of risk are relative, it can be difficult to calculate risk and use it support decision-making. This is why entrepreneurs are advised not to try to calculate risk, but instead to calculate affordable losses. This means calculating what they are willing to give up in case things go wrong.


[SLIDE 7]

There is no need to take big actions or extreme risks. The first action is just a small start to get going, and all other actions that follow are also small. Once you know your affordable loss, you control all the risk


[SLIDE 8]

The sixth component is to network and enroll others in your journey. The Practice of Entrepreneurship is about collaboration and co-creation rather than competition.

Sharing your ideas and enrolling others in your journey increases your resource based, expands the possibilities and validates your ideas.


[SLIDE 9]

Using the skill of reflection, assess your performance as you practice. Recognize that failures occur and each failure provides a learning experience. Expect setbacks and celebrate the learning that comes from each experience.


[SLIDE 10]

One question always arises: How do I know when I should stop? The answer is easy. Quit only if you no longer have the desire inherent in your impact statement, or if you have exceeded your affordable loss. Otherwise, the real question you will need to answer is: What are you going to do next?