presentation riga 2013
DESCRIPTION
Erasmus Intensive Programme: “Fostering the entrepreneurial spirit in Europe through development of entrepreneurial sales personality” Riga, 10 – 23 November 2013 LatviTRANSCRIPT
Prevention of Entrepreneurial Failure
in the start-up phase
Erasmus Intensive Programme:
“Fostering the entrepreneurial spirit in Europe through development of
entrepreneurial sales personality”
Riga, 10 – 23 November 2013
Latvia
Ing. Matthijs H.M. Hammer M.Sc.
Senior lecturer Entrepreneurship
School of Busuness, Builsing & Technology
PhD Researcher
Faculty of Product Innovation Management
Menu
• Introduction
• Recall of last week
• Theoretical background
• Focus on: ‘Entrepreneurial Sales Personality’
• IDP, Business Plan YOU!
• Talent Development
• Your App’s-store
• Application in this week: Business Plan YOU!
Introduction
• Present yourself, maximum 30 seconds
• Present your group, 1 minute
• Present your groups result until now, 1minutes & 30 sec.
• Present your groups ambition, minimum 2 minutes
Recall of last week
• Please tell about:
• IDP
• Effectuation
• Business Plan You!
• Accounting
• Entrepreneurial personality
• Leadership
Recall of last week
• Entrepreneurial process
• Opportunity recognition
• Opportunity preparation
• Opportunity exploitation
• Difficult?
So, what do you want need more ….
A high failure rate
Business closure rates by time trading
(Cressy, 2006)
49,5% 5 year failure rate Insee (Sine)
60 % 5 year failure rate Statistique Canada (PALE)
39 % 2 year failure rate BTS (Tunisian Solidarity Bank )
50 % 5 year failure rate CBS (Statistics Netherlands)
50 % 4 year failure rate U.S. Census Bureau (BITS)
Diversity of proxy measuring failure
(bankruptcy, closure, exit, insolvency, discontinuity, etc.)
Theoretical background
Causes of Entrepreneurial Failure:
• mismanagement, unrealistic expectations, finance
and lack of innovation (Cardon, Stevens, & Potter, 2011).
• Lack of strategic resources (Michael & Combs, 2008),
• planning strategies (van Gelder et al, 2007),
• pride (Hayward et al, 2006),
• not able to cope with uncertainty (Mc Grath, 1999)
• over-optimism and overconfidence (Muir, 2007).
Theoretical background
Prevalence of discriminant approach (positivism) (Cooper et al.,1994 ; Duchesneau & Gartner, 1990 ; Dahlqvist et al., 2000 ; Littunen et al.,
1998 ; Lussier, 1995 ; Lussier & Pfeifer, 2000 ; Reid, 1999 ; Wetter & Wennberg, 2009)
Success/Failure = f(X1,X2,X3,..Xn)
X1 ?
X2 ?
X3 ?
Xn ?
Y
Success/Failure
??? Survivors/Exitors
Entrepreneurship policy of “picking winners”
The “ideal predictive and discriminant factor” opposing successful and failing
entrepreneurs does not exist.
it impossible to predict exactly how the entrepreneurs will fail.
Theoretical background
Questions to address:
• So what?
• How does it imply me?
• How does this affect with the Entrepreneurial Sales
Personality?
• An answer: looking from an interpretative approach. (Askim-Lovseth & Feinberg, 2012; Cardon et al., 2011; Cope, 2011; Crutzen,
2009; Mantere et al., 2013; Seshadri, 2007; Singh et al., 2007; Zacharakis et al.,
1999)
Theoretical background
Dimensions
Theoretical
foundation
Emotive
approach
GAGT
Concept of
failure
Failure
causes
Deception
Entrepreneurial
Motivation
Voluntarist
approach
RBV
Deficiency
Entrepreneurial
Resources
Determinist
approach
PEOT
Entrepreneurial
context
Discontinuity
Source: Khalil, 2010
Voluntary exit
Involuntary exit
ECONOMIC SUCESS
OF THE NEW VENTURE
Positive
Exit strategy
Continuity with
Economic
Difficulties
Exit due to a psychological
distress
Exit to avoid
an increasing
economic losses
Entrepreneur's self satisfaction
Low new venture economic
performance
High new venture economic
performance
Continuity with
Psychological
Distress
ECONOMIC FAILURE OF THE NEW VENTURE
1 3
4
PSY
CH
LOG
ICA
L SUC
ESS
OF TH
E ENTR
EPR
ENEU
R
PSY
CH
LOG
ICA
L FAILU
RE O
F THE
ENTR
EPR
ENEU
R
Entrepreneurs' self Deception
2
Continuity with
Psy-ecomomic
Distress
Continuity with
Entrepreneurial succes
Exit due to a
psy-ecomomic
distress
2’
3’
4’4
IDP, Business Plan YOU!
? 5 minutes break for chemical dependencies and biological necessities.
Resume
• To reduce failure-rates in the start-up phase, compose
the best entrepreneur(ial team) available.
How?
• Talent Development
WHAT IS A TALENT?
Give examples!
A talent is:
• Old Greek: a weight or sum of money of that weight.
Later the disposition or ´gift of God´. (van Dale, 2009)
• Best & Brightest. (Knegtmans, 2009)
• Exceptional disposition (Wikipedia, 2010).
• Relative.
• Talent (Dutch, English, French, African, Catalonian, Russian, German,
Romanian, Icelandic, Czech, Danish, Polish, Estonian, Norwegian)
• Fi: lahjakkuus, Lv: Talants, Lt: Talentas
Facts
• Be willing to is more important than be able to. (Knegtmans, 2009)
Example See possibilities Tackle opportunities
Know where to find it. Successful application
Facts
• Training has more effect than Genetic factors.
• Top talent = (talent * mentality) / ego (T. van het Hek, 2000)
• Talent is gained by internal motivation and long,
effective and focused training.
• Be willing to is more important than be able to. (Knegtmans, 2009)
How to develop?
What to develop?
• Your talents! Exercise 1a
• But: what are Your talents?
• How to distinguish them?
Exercise 1a: Write down YOUR talents.
The Competent Egg
Knowledge
Application
Behaviour
Talent
Source: N. Vloon, 2002
Structure
Context
What suites You?
• What do You like?
• What distinguishes You?
• What is appreciated?
• Problem:
You don´t know for yourself.
Identify Your talents
• Use tools as:
– 360° Feedback
– Personal SWOT
– Explicit Your context
Exercise 1b: Describe Your context.
Exercise 2 5 minutes each
You: tell Your Neighbour about your job (or sports).
Neighbour: write down where he is positive, explores
fun, smiles, is exciting, etc. Ask for examples, achieved
goals, feedback from colleagues.
At the end, ask for his perceived personal strong points
and weak points (about 3 aspects each).
Exercise 1 b and 2, are determining your
relevant talents.
How to develop?
Difficulties
• SME-issues:
– No HRM-department
• job coach
• assessment centres
– No broad scope of specialists
– Limited places to work (fte)
• job rotation
• spare time for development
• exemplary roles
Talent development in SME´s
Today
Near
Future
Pers. SW
360° feedback
context
far
Future
Talent
Talent
needed
Pers. goals
Business goals
Talent
development
Different ways of development
Falcon
Source: N. Vloon, 2002 Goose
Development in SME´s
• Training in the same context, maintain the talent.
• Training in a different (future orientated) context,
increase the talent, makes it more valuable.
Exercise 3
Exercise 3:
1. Write down your talents today
2. Write down your personal goals and objectives
3. Determine one of your talent to develop
4. Describe a way to practice that talent (knowledge, skill,
behavior) in another context then your current
professional activity.
5. Do it, with motivation and drive!
Summery
1. Determine what your motivation is; what make you
have fun.
2. Determine your relevant talents.
3. Determine what is your goal.
4. Create training activities in another professional
context.
5. Do it! (with motivation and drive)
Your App’s store
1. What is an App’s?
Applicability Approvals (2 * App = App’s)
2. What are they?
Proof of successful application of your talents /
competencies.
3. How do they look?
Your App’s store
Status Name Description
C Concept No evidence of competence
B Believe Poor evidence of competence
A Awareness Some evidence of competence
AA Applicability Approvals Proofed evidence of competence, in
simple, single context
AAA Advanced Applicability
Approvals
Proofed evidence of competence, in
complex, multiple context
Source: Vloon & Hammer, 2013
Lessons learned
1. Determine what your motivation is; what make you
have fun.
2. Determine your relevant talents.
3. Determine what is your goal.
4. Create training activities in another professional
context.
5. Do it! (with motivation and drive)
6. Make your improvements App’s store ready
7. Sell yourself to the winning team of stakeholders
Thank You
for your
Attention