The financials that are common in the business world are those that track past performance. With these statements, if we know past performance, we can better predict future performance. For a prospective business that has not previously existed, on the other hand, preparing financial statements is much more difficult. There is no past history to build on, there are no real numbers to start with, and it is not certain how the venture will materialize. It is not likely the numbers will be correct, so why do this? The main reasons for creating financials fall into internal and external arguments: 1. Your numbers reflect your positioning and business model. They can inform you about the viability of your business and help you determine whether and how to move forward. While some numbers are likely to be wrong, your initial approach to the business is also likely to be wrong in some aspects. If these numbers can help put you on a more viable path (sooner rather than later), this information is undeniably valuable. 2. Investors and other stakeholders will want to understand the viability of your business and how you intend to pursue the opportunity. They want to know that you have thought through the economic representation of your business model and that you have done your homework in crafting logical financials. While most sophisticated investors and other experts often believe entrepreneurs are overly optimistic with financial projections, they also want to see how ambitious you are in your thinking about launching the business.

Linktone was formed in September 1999 to develop text messaging applications and content for the Chinese market. Starting as a division within Intrinsic China Technology Ltd., a Shanghai-based wireless technology company, it was spun out as an independent venture in April 2001. After two years in the market, the company saw its revenues grow, but it was not yet profitable and faced intense competition. In 2003, Raymond Yang, a successful businessman and entrepreneur in both China and Silicon Valley, California, joined Linktone as CEO. He brought some of the management style he had adopted in Silicon Valley, built a national sales network to work with local service provider offices, and sourced new products from Chinese, Japanese, and Western content providers. The mobile telecommunications market was undergoing explosive growth and constant change in China at the time, and acquisition activity was accelerating. Yang was considering an acquisition offer from China.com, a NASDAQ-traded Chinese service provider, and also the possibility of taking Linktone public on the NASDAQ.

Abstract: Fan Ye has opened a U.S. sales office for the company his father founded in China: Suns International, a manufacturer of electronic switches. While competition in China was based almost solely on cost, Fan knew this would not be enough to break into the U.S. market-particularly in Suns' industry, where the cost of failure was high. Consequently, he decided to obtain the certifications needed to ensure Suns' product would meet U.S. standards. This gamble paid off as Suns attracted OEM customers like Honeywell and Otis Elevator. A main issue and decision point in the case is triggered by Suns taking over the exclusive supply of foot switches to Grainger, a major electronics catalog. ProSwitch, a U.S.-based family business that lost the Grainger account to Suns, has asked to meet with Fan, presumably to talk about a possible cooperative relationship. Fan must now decide whether to compete or cooperate with ProSwitch and what approach to take in the meeting.

LoJack is a corporation founded in 1978, which was the global leader in the development and delivery of a system that tracked and recovered stolen vehicles headed for chop shops. Despite their leadership position, company management was well aware of the risk they faced by being so closely aligned with the volatile US auto industry. In the early 2000s, the company undertook a venturing strategy that had produced four new business units. The case addresses the details about the product and its competition. It also outlines the new opportunities that were available to LoJack in the form of untapped markets and geographic expansion.

Corporate entrepreneurship necessarily entails both risk and high levels of uncertainty; yet, established organizations are typically positioned as efficient engines that function best via cautious and routine progress, which can hinder attempts to inject innovative ideas into mature businesses. As such, conscious effort is required to build a corporation's capacity for sustainable entrepreneurship. While a few exceptional companies have built and maintained an enduring capability for entrepreneurship, the majority of firms possess a general resistance to these initiatives. Commitment to entrepreneurship may cycle between high or moderate support for the activity, to floundering interest or disbanded initiatives, as conditions in the internal and external environment shift. This cycling pattern, unfortunately, prevents the development of enduring capabilities. Herein, it is revealed how companies can progress their entrepreneurial capabilities over time, adjusting and improving them as the firm learns and adapts to change. To accomplish this, companies must develop strategic objectives to guide entrepreneurs, a management structure to support their work, and processes that inform assessment and decision making. Through an Evolve and Connect model, these three contexts can adjust to shifts in the external environment and the changes and progress happening within the organization. Over time, however, managers need to maintain a link between entrepreneurial activity and the organization's mainstream.