Link to the [[full article|/static/files/MBI/Module%2010/Resource%20maps%20and%20financing%20ecotypes.pdf]] In one of the definitions of [[Entrepreneurship]] the focus is on opportunity recognition without regards for the resources currently controlled. To capitalize the opportunities the entrepreneur will need to put together a set of resources, from the needed technology to the means of production (inputs, machines, plants) management skills and marketing channels. Resourcing the business needs to become a second nature of the entrepreneur, following the identification of opportunities themselves and the decision to pursue them. There are some differences in how entrepreneurial ventures differ from other businesses: # Risk ## A big company will not bet its survival on a high risk venture. ## Entrepreneurial ventures have higher exposure to uncertainty at the product (technology, untested prototypes) and on the market side (unknown market potential, customer adoption) # Growth ## Rapid growth consumes phenomenal amounts of resources ## Stretches all functional systems to their limits and beyond ## The combination of high resource needs and severe constraints on management an operational systems can have disastrous consequences for unprepared companies Traditional bankers lack the skills to judge these differences to their merits. They also lack incentives as they usually are exposed to the risks but are not necessarily benefit from the profits. [[Equity capital]] usually does not come cheap, because investors want to be rewarded for the additional risk. Understanding what each possible source of capital expects from an investment is a crucial step in resourcing the business. The art is to combine different requirements from different sources into a financial deal that meets every capital suppliers demands. The author proposes a [[General framework for mapping resources]] to help create this challenging mix. By using the 12 dimensions of this framework he then maps [[Different sources of capital]] to their merit in the different phases of the venture.