Entrepreneurship involves venturing capital in a prolonged and complex process. Starting from the initial investment in the pilot project, the investment stages extend all over until effective divestment of the company is achieved. In the case of Apple Computers Inc, Steve Jobs applied his skills of a cognitive entrepreneur to take his company through the following five stages.
Stage1: Identifying the investment opportunities (seed)
This stage involves the initial level of investment required to bring an idea to the lime light. Every entrepreneur who understands the five ways to effectuation understands the importance of this. In the case of Steve Jobs, he set up his initial work-station through revenues generated from the sale of his personal microbus.
Stage 2: Analysis of the investment
This stage comes next after risking implementing the initial idea. It involves analyzing the behavior of the idea. In the case of Steve Jobs, after launching the Apple I, he used the proceeds to invest in the manufacture and the marketing of the next model, the Apple II. This follows in the second principle in the effectuation cycle, the affordable loss principle, which helps in deciding the workability of an entrepreneurial venture.
Stage 3: The decision to invest
If the analysis stage comes out positive, a dynamic entrepreneur now makes the decision to manufacture en-mass. This requires a balance between cognitive and managerial skills present in all dynamic entrepreneurs. In Apple Computers Inc, this stage is represented by Steve Jobs introduction of Apple III and LISA computers after his speculation of a good market for them.
Stage 4: The follow up of the investments made
Once production output is expanded, it is upon the entrepreneur to ensure that it does not fall down below its attained production...