Introduction
Establishing a fully fledged enterprise is process. According to Hisrich, Robert, Peters, and Shepherd (2005) entrepreneurial development is much more than diligent management of the enterprise. Enterprise development follows four distinct phases. As such it is akin to a journey. The first phase involves the identification of existing opportunities, which is followed by development of the business plan.
Once the plan is in place the entrepreneur must identify the necessary resources that the enterprise needs to thrive. Business management is the last phase on enterprise development process. In view of Hisrich et al.’s (2005) model, this paper will evaluate the entrepreneurship development process of two businesses in the IT industry.
Noldus IT has a mission to provide the best IT tools that facilitate data collection in scientific disciplines such as neurosurgeon, pharmacology, ergonomics among other human and animal behavioral sciences (Noldus IT 2011). Since inception Noldus IT has operated under a business model informed by asset parsimony, a concept that allows businesses to effectively utilize scarce resources.
Pharming, initially known as GenPharm, develops technologies concerning biopharmacology. The firm target is to develop technologies that would help cure extraordinary but fatal medial conditions. Due to the nature of its business, the firm has to establish partnership with crucial partners such as the Dutch government, education institutions as well as financial institutions (Pharming Group NV 2011).
Identifying opportunities
For Noldus IT, the business opportunity was noted by chance. Initially a keen software engineering student discovered the market niche for computer software while in the process of completing doctoral studies. The student initially developed biotechnological softwares as part of doctoral research work, but found out that they could be sold to clients met during seminars, conferences and lectures.
After discovering a ready market for such products, the student sought to establish week ties between large corporate business and technologies available for such processes. Thus through such week ties, Noldus IT business found business opportunities (Elfring and Hulsink 2003).
Pharming saw business opportunities in the uncertainty created by lack of establishing corporate links with strong partners in the medical field. Pharming linked with strong partners and in the process acquired tacit knowledge especially on software needs in the medical field.
Through sharing of such knowledge, Pharming found a ready market for medical IT tools that involved treating rare medical disorders (Elfring and Hulsink 2003).
Developing the business plan
Following the identification of a business opportunity, entrepreneurs need to draft a workable plan. The purpose of the business plan is to map out how the existing business opportunity will be exploited as well as identifying the resources required (Hisrich et al. 2005). The development of the Noldus IT was not instantaneous.
Making the business plan for Noldus IT revolved around opportunities identified in developing softwares for scientific data collection in scientific disciplines such as neurosurgery. Drawing up the business plan also drew lessons from extensive research work by the founder. While Noldus business plan saw opportunities through research, Pharming business idea was developed around relationship building.
As such, the firm’s business plan mapped clearly the mechanism of establishing links and forge working relationships with financial institutions, universities and relevant government institutions (Elfring and Hulsink 2003).
Identification of resources required
Just as it did when identifying business opportunities, Pharming identified the establishment of strong ties as the most suitable way to source the necessary resources it needed for its business venture. Pharma saw its urgent resources as competent software engineers, business premises and capital in terms of money.
As such the firm urgently sought to acquire these resources through establishing links with resourceful business partners. As such, through ties established with educational institutions such as Leyden University it acquired the most qualified personnel. From the government of the Netherlands and the American financial partners, Pharming acquired the necessary funds as well as business premises.
Similarly, Noldus IT established ties with training institutions to acquire competent staff. Through, Wageningen University, Noldus IT was able to access softwares engineers relatively cheap. For financial and other infrastructural resources, Noldus IT approached private individuals who funded it operations from startup (Elfring and Hulsink 2003).
Business management
The last and arguable the most complex entrepreneurial development stage is business management phase. In this phase, entrepreneurs have to identify and develop the right business model suited for that kind of enterprise (Hisrich et al. 2005).
For Noldus IT, implementation of the business plan on meager resources meant that the entrepreneurship had to be built on a business model that could operate with such scarce resources. In view of the limited resources, managers at Noldus IT identified asset parsimony as the most suitable business model. Pharming seems to have its goals along establishing links and business partnership as the most suitable business model.
From inception Pharming heavily relied in identifying suitable but stronger business partners from which the company would benefit. The company had identified tangible markets for medical technologies and had also sought to identify the real opportunities that existed within the biotechnological industry. Furthermore, Pharming had identified vast markets within the medical and agribusiness sectors.
However, it needed a model to utilize these opportunities. As such, it vigorously sought to establish links with suitable business partners from the medical industry agribusiness, education sector as well as the corporate world. These partners acted as valuable sources of various types of resources, including financial, knowledge and infrastructural (Elfring and Hulsink 2003).
Comparative analysis
In view of Hisrich et al.’s (2005) entrepreneurship development model, several comparisons can be drawn from Noldus IT and Pharming. The growth and development of these two enterprises seem to follow Hisrich et al.’s (2005) four phase model from identifying opportunities through to business management phase. Similary, there are further comparisons that can be drawn from within the four phases.
In regard to identifying business opportunities, the two firms saw existing markets in science and research industry. As such the two firms develop technologies that enhance scientific data collection, management and manipulation.
Additionally the two companies have heavily relied on institutions of higher learning to provide some of the vital resources in form of human capital. Wageningen University and Leyden University thus became vital partner s for the two firms.
Conclusion
Hisrich et al.’s (2005) four phase model identifies four stages that can also be argued as the natural stages of successful business growth and development. The growth and development process of many enterprises can be seen to follow this model.
While the model is not a key pointer towards successful enterprises, it highlights the stages through which entrepreneurship success is built. This assertion is true for Noldus IT and Pharming. The development process of these two enterprises, when analyzed Vis a Vis Hisrich et al.’s (2005) four-phase model, confirms the assertion there in.
Reference List
Elfring, T., & Hulsink, W. 2003. Networks in Entrepreneurship: The Case of High- technology Firms. Small Business Economics. Web. Web.
Hisrich, P., Robert D., Peters, M., & Shepherd, D., 2005, Entrepreneurship. New York: McGraw-Hill Irwin.
Noldus IT 2011. About Noldus Web. Available from https://www.noldus.com/about-noldus .
Pharming Group NV., 2011. Health science products. Web. Available from https://www.pharming.com/ .