Introduction to Entrepreneurship

What is an Entrepreneur?
ENTREPRENEURSHIP
Insane perseverance(determination) in the face of total rejection.

What Is An Entrepreneur?
ENTREPRENEUR
A vision-driven individual who assumes significant personal and financial risk to start or expand a business.

What Is An Entrepreneur?
ENTREPRENEURSHIP
The pursuit of opportunity through innovation, creativity and hard work without regard for the resources currently controlled.

Entrepreneurship
Entrepreneurship: a way of thinking, reasoning, and acting that is: opportunity obsessed and leadership balanced

Entrepreneurs: Born or Made?

Is there inborn talent required? Assume that the answer is YES:
then we can identify the main characteristics if we have them, fine - no others need to apply! we could start spotting talent in kindergarten we could "stream" these people we could discourage people without these talents
6

Entrepreneurs: Born or Made?

Assume the answer is NO:
then schools could teach anyone would be a "profession" like law or medicine companies could establish "nurseries" for them government "incubators" would be successes

The real answer lies somewhere in-between

Talent and education is the way
7

Who is an Entrepreneur?
Situational more than personality
Flexibility
Age Distribution for Starting Company

Ability

20

25

30

35

40

45

Age

Who is an Entrepreneur?
Managers Opportunities
Future Goals
Change Status Quo

Possible

Entrepreneur

Satisfied manager

Perceived Capability
Blocked
Frustrated manager Classic bureaucrat

Burch's Entrep. Personality Traits

1.A desire to achieve

Conquer problems, create successful venture Their workload is very hard to match

2.Hard work

3.Nurturing quality 4.Acceptance of responsibility

Morally, legally and mentally accountable Want be rewarded for their efforts
10

5.Reward orientation

Burch's Entrep. Personality Traits

6.Optimism

Anything is possible Pride in something first class They are wholly "take charge" people

7.Orientation to excellence

8.Organization

9.Profit orientation

Profit primarily a gauge of performance

11

Failure? So what!
Failure seen differently in America & Europe.
In Europe it is a major set-back U.S. expected (required even!) Canada - in between but tending to U.S.

Our System:
Many entrepreneurs had been "blue collar" Many come from families of entrepreneurs Many are immigrants or their children But, there are no "rules" that ensure success

Universally, entrepreneurs shake off failure!

12

Failure as Learning Process

Ignore it, then start again
Some find it easy to blame someone else

In public, always optimistic

Especially with funders Agonise over what went wrong in private

Willingness to disregard the rules

Start from first principles.

Ability to "bend, not break" rules of life

13

Classic Entrepreneurship: The Startup

Raw startup companyan innovative idea that develops into a high growth company Qualities of a startup company
Strong leadership from the main entrepreneur Complementary talents and outstanding teamwork of team members Skill and ingenuity to find and control resources Financial backing to chase opportunity

14

Desirable and Acquirable Attitudes and Behaviors

Commitment and determination Leadership Opportunity obsession Tolerance of
Risk Ambiguity Uncertainty

Creativity, self-reliance, and adaptability Motivation to excel

15

The Entrepreneurial Process

It is opportunity/market driven It is driven by a lead entrepreneur and an entrepreneurial team It is resource parsimonious and creative It depends on the fit and balance among these It is integrated and holistic

16

The Timmons Model of the Entrepreneurial Process

Communication
Opportunity (2)
Ambiguity

Business Plan Fits and gaps

Team (3)

Resources (4)
Exogenous forces

Creativity
Uncertainty

Leadership
Capital markets

Founder (1)

17

Enlightened Serendipity
Being in the right place At the right time, Recognizing it, and Acting upon it, APPROPRIATELY and PASSIONATELY!!!
18

Course Evaluation & Technology

Grading
40%: Class Participation (including attendance) 10%: Weekly Quizzes on Reading 20%: Midterm Exam 30%: Project

Technology Needed:
Word Processing Spreadsheet Graphics and PowerPoint

19

Attendance Policy
Two absences = one full grade drop A third absence = an additional grade drop Four absences = Failure NOTE:
There are NO excused absences. 2 lates and/or early departures = 1 absence.

I WILL FAIL YOU IF I HAVE TO!

20

Cellphone Policy
OK if it rings
I dont expect you to remember to turn it off

BUT!
Dont answer your phone in class! Dont step into the hall to talk

Also
No text messaging

21

Next Class
Homework
Read Chapter 11: Buying an Existing Business Read Chapter 12: Franchises & Other Alternatives

October 12
Recognizing Opportunities Buy an Existing Businesses Open a Franchise Other Alternatives Quiz on Chapters 11 & 12!
22