The Heptalogical Model of Entrepreneurship

Entrepreneurship starts with a social or market problem that some people, ideally many, perceive.

An opportunity is made of objective elements that exist whether anyone perceives them or not, but they are disconnected and need a novel way to be coordinated.

An idea is a subjective notion, formed by one person, that coordinates the elements of the opportunity and fills the gaps between them.

The concept unites the opportunity and the idea in a core transaction: how the venture serves its market or constituency and generates value, makes money, or makes social impact.

The mission is a narrative that explains why the venture and its founders are motivated to engage the problem, not just what the venture does.

Guided by a strong mission, the model is how the venture grows and adapts, building a diversified set of operations that subsumes multiple concepts and is more robust to change.

Planning and forecasting become easier when the earlier elements are clear, and mission-based diversification gives a sounder basis for forecasting performance.