nature and importance of entrepreneurs-2

8/8/2019 Nature and Importance of Entrepreneurs-2

1/19

1-1

The Nature and ImportanceThe Nature and Importanceof Entrepreneursof Entrepreneurs


2/19

1-2

Development of EntrepreneurshipDevelopment of Entrepreneurship

Earliest PeriodEarliest Period-- Marco PoloMarco Polo

Middle AgesMiddle Ages-- Theater,Theater,Architectural WorksArchitectural Works

1717thth CenturyCentury-- MississippiMississippiCompanyCompany

1818thth CenturyCentury-- Edison & WhitneyEdison & Whitney

1919thth & 20& 20thth CenturiesCenturiesOrganize/OperateOrganize/Operate

InnovationInnovation


3/19

1-3

Environmental FactorsEnvironmental FactorsAffecting OrganizationsAffecting Organizations

HypercompetitionHypercompetition

Changing TechnologyChanging Technology

Short Product Life CyclesShort Product Life Cycles

New MarketsNew Markets

Changing Employee Drives/MotivesChanging Employee Drives/Motives

Focus on Sales/ProfitsFocus on Sales/Profits

Available CapitalAvailable Capital


4/19

1-4

EconomiesEconomiesMarketMarket--OrientedOriented ControlledControlled

CUBACUBAUNITED STATESUNITED STATES

MarketMarket

ConditionsConditions

InnovationInnovation

OrientationOrientation

InvestmentInvestment

CommunityCommunity

EntrepreneurshipEntrepreneurship

CultureCulture


5/19

1-5

Market ConditionsMarket ConditionsLarge MarketLarge Market

Easy To Form CompanyEasy To Form Company

Positive Tax StructurePositive Tax StructurePositive Media CoveragePositive Media Coverage

Code of Business/Contract LawCode of Business/Contract Law

Strong Govt.Strong Govt. AgenciesAgencies-- NoNoCorruptionCorruption

StandardStandard--Setting AssociationsSetting Associations

Individual Investment MentalityIndividual Investment Mentality


6/19

1-6

Principles forPrinciples forSuccessful New VentureSuccessful New Venture

1)1) Define MarketDefine Market2)2) Durable ProductsDurable Products--

18 Month Customer18 Month CustomerPaybackPayback

3)3) Market Growth =Market Growth =3030--50% in 5 Years50% in 5 Years4)4) Patent ProtectionPatent Protection5)5) No ProductNo Product

SubstitutionsSubstitutions

AvailableAvailable6)6) Products VariantsProducts Variants7)7) No StrongNo Strong

CompetitionCompetitionPresentPresent

8)8) Quick MarketQuick MarketDominanceDominance

9)9) Gross Margin 30Gross Margin 30--

50%50%10)10)Staged FinancingStaged Financing

11)11)ROI = 10X in 5 YearsROI = 10X in 5 Years(25(25--30%/Year)30%/Year)

12)12)Positive Cash FlowPositive Cash Flowin 18 Monthsin 18 Months

13)13)Strong ManagementStrong Managementin Industryin Industry


7/19

1-7

InfrastructureInfrastructureNeeded for InnovationNeeded for Innovation

LongLong--Term ThinkingTerm Thinking

Investment CommunityInvestment CommunityBanksBanks

Venture CapitalistsVenture Capitalists

Informal/Informed PrivateInformal/Informed Private

Investors (Angels)Investors (Angels)


8/19

1-8

Entrepreneurship CultureEntrepreneurship Culture

More NewMore New

Ventures ThanVentures Than

Anywhere In TheAnywhere In The

WorldWorld

ConcentratedConcentrated

AreasAreas


9/19

1-9

Successful EntrepreneurSuccessful Entrepreneur

Initiates Creation ProcessInitiates Creation Process

Devotes Time/EffortDevotes Time/Effort

Assumes RiskAssumes Risk

Receives RewardsReceives Rewards

IndependenceIndependence SatisfactionSatisfaction

MoneyMoney


10/19

1-10

Entrepreneurial DecisionEntrepreneurial Decision

PresentPresent

LifestyleLifestyle

New EnterpriseNew EnterpriseDesirableDesirable

PossiblePossible

CatalystCatalyst


11/19

1-11

Drivers of NewDrivers of NewVenture FormationVenture Formation

Desirability InfluencesDesirability InfluencesCulture/SubcultureCulture/Subculture

Family/PeersFamily/Peers

TeachersTeachers

Possibility FactorsPossibility FactorsGovernmentGovernment

BackgroundBackgroundMarketingMarketing

Role ModelsRole Models

FinancesFinances


12/19

1-12

Types of StartupsTypes of Startups

LifestyleLifestyle

FoundationFoundation

High PotentialHigh Potential

GazellesGazelles


13/19

1-13

Entrepreneur &Entrepreneur &Economic DevelopmentEconomic Development

ProductProduct--Evolution ProcessEvolution Process

Iterative SynthesisIterative Synthesis

InnovationInnovation TechnologicalTechnological

BreakthroughBreakthrough

GovernmentGovernment

Technology TransferTechnology Transfer

IntrapreneurshipIntrapreneurship vs. Entrepreneurshipvs. Entrepreneurship


14/19

1-14

Product EvolutionProduct Evolution

Need RecognitionNeed Recognition

Initiate InnovationInitiate Innovation DevelopmentDevelopment

Press To InventPress To Invent

IndustrialIndustrial


15/19

1-15

Careers/EducationCareers/Education

Life SpaceLife Space

Work/OccupationWork/Occupation

Individual/PersonalIndividual/Personal

NonworkNonwork/family/family

Skills RequiredSkills Required

TechnicalTechnicalBusiness ManagementBusiness Management

PersonalPersonal


16/19

1-16

Skills RequiredSkills Requiredof Entrepreneurof Entrepreneur

TechnicalTechnicalBusinessBusiness

ManagementManagement PersonalPersonal

WritingWriting PlanningPlanning Inner ControlInner Control

OralOral

CommunicationCommunication

DecisionDecision

MakingMakingRisk TakingRisk Taking

Monitoring TheMonitoring TheEnvironmentEnvironment

HumanH

umanRelationsRelations InnovativeInnovative

Use TechnologyUse TechnologyMarketingMarketing

(Selling)(Selling)

ChangeChange--OrientedOrientedVisionaryVisionary


17/19

1-17

Ethics & Social ResponsibilityEthics & Social Responsibility

EthicsEthics-- Behavior/Morals inBehavior/Morals in

BusinessBusiness

Value SystemValue SystemPeer PressurePeer Pressure

Social NormsSocial Norms

CompetitorsCompetitors

Individual vs. CommunityIndividual vs. Community


18/19

1-18

FutureFuture

Entrepreneurial EducationEntrepreneurial Education

GovernmentGovernment-- PromotionPromotion

Societys SupportSocietys Support

CorporateCorporate IntrapreneurshipIntrapreneurship


19/19

1-19

Entrepreneurial UniversitiesEntrepreneurial Universities

ActivitiesActivities

SeminarsSeminars

ConsultingConsulting

ResearchResearch

Case DevelopmentCase Development

Technology DevelopmentTechnology Development

& Transfer& Transfer

Joint Ventures &Joint Ventures &

Strategic AlliancesStrategic Alliances

StructuresStructures Business AssistanceBusiness Assistance

CentersCenters IncubatorsIncubators Innovation CentersInnovation Centers

Industrial ParksIndustrial Parks Enterprise DevelopmentEnterprise Development

CentersCenters Venture Capital ExchangesVenture Capital Exchanges

InputsInputs

Guest LecturesGuest Lectures Board ofBoard of

Advisors/TrusteesAdvisors/Trustees InternshipsInternships Student ProjectsStudent Projects Source of FundsSource of Funds

nature and importance of entrepreneurs-2

Documents