the entrepreneurial mindset - edx · pdf filetime research area | innovation &...

TIME Research Area | Innovation & Entrepreneurship Group (WIN)

School of Business and Economics

TIMEResearch Area | Innovation & Entrepreneurship Group (WIN)

The Entrepreneurial Mindset

Welcome


THE ENTREPRENEURIAL MINDSET

PITFALLS

IDEA

APPROACH

LEAN

START-UP

TEAM

GET YOURSELF

STARTED

Unfold your

entrepreneurial

personality

Create your business

idea and evaluate its

potential

Apply the process of

successful

entrepreneurs

Build your own team

and establish relevant

partnerships

Get your company

started in the best

possible way

Watch out for critical

obstacles of new

venture



PITFALLS

IDEA

APPROACH

LEAN

START-UP

TEAM

GET YOURSELF

STARTED

Unfold your

entrepreneurial

personality


MADE VERSUS BORN


READY FOR THE CHALLENGE?

I can’t stand that

much risk

I’m not sure…

We should launch a

business!

I don’t have time for

this…

This idea rocks…


WHO IS AN ENTREPRENEUR?

MICHAEL DELL

1965 born in Houston, TX

With 15: Disassembled first computer to see

how it works

Started to study Medicine

At age of 18: Sold PC upgrade kits in college

With 19: Founded Dell Computer Corp.

Initial investment $1000 [1] [2]



1955 born in San Francisco, CA

As kid: Reassembled electronics with father

During school: Met his future partner, both

interested in electronics and computer design

Age 21: Founded Apple Computer Corp. in

Job’s Garage

[3]

STEVE JOBS

[4]



Kein Bild verfügbar

1916 born in McGrath, MN

As kid: Moved with family to Oregon

Envisioned market for rental trucks without high

expenses

Was suspended from medical school

Age 29: Founded U-Haul with his wife

Initial investment $5000 [5]

LEONARD SHOEN

[6]


PERSONALITY IS CONGENITAL & SELF-THOUGHT

Extension of human capital

Mainly based on educational

background

Consists of time-stable elements

being consolidated as an adult

PERSONALITY Individual, congenital

CULTURE Group-specific, learned

HUMAN NATURE Universal, congenital

[7]

Three layers of mental conditioning

Entrepreneurs need specific entrepreneurial capabilities!


SAME ENTREPRENEURIAL MINDSET




[7]

Tory Burch

USA

[8]

Muhammad Yunus

Bangladesh

[9]


Western

Capitalistic

Individualistic

IDENTIFIED OPPORTUNITY IN FASHION

[10]




[7]

Tory Burch

USA

[8]

Wealthy family

Studied art history at Univ.

of Pennsylvania

Strong interest in fashion

Designed first clothes in

her kitchen in New York





[7]

IDENTIFIED OPPORTUNITY IN MICROFINANCE

[11]

Grew up in poor country

Studied Economics at

University of Dhaka

Went to USA with Fulbright

Scholarship

Came back to Bangladesh

to work against poverty

Grew up in poor country

Studied Economics at Univ.

of Dhaka

Went to USA

Came back to Bangladesh to

work against poverty

Asian

Socialistic

Collectivistic

Muhammad Yunus

Bangladesh

[9]


REFERENCES

[1] Hartmann Studios (2011): Michael Dell. URL: https://www.flickr.com/photos/oracle_images/6211618173/.

Access Date: 17.08.2016

[2] Wikipedia the Free Encyclopedia (2016): Michael Dell. URL: https://en.wikipedia.org/wiki/Michael_Dell.


[3] Yohe, M. (2010): Steve Jobs. URL: http://www.namespedia.com/image/Jobbs_8.jpg.


[5] Wikipedia the Free Encyclopedia (2016): Steve Jobs. URL: https://en.wikipedia.org/wiki/Steve_Jobs.


[5] U-Haul (2014): L.S. “Sam” Shoen. URL: http://myuhaulstory.com/2014/12/23/m-carty-u-haul-trailer-man/.


[6] Wikipedia the Free Encyclopedia (2016): Leonard Shoen. URL: https://en.wikipedia.org/wiki/Leonard_Shoen.


[7] Hofstede, G., Hofstede, G. J., & Minkov, M. (1991): Cultures and organizations: Software of the mind (Vol. 2).

McGraw-Hill.

https://www.flickr.com/photos/oracle_images/6211618173/



https://en.wikipedia.org/wiki/Michael_Dell

https://en.wikipedia.org/wiki/Michael_Dell

http://www.namespedia.com/image/Jobbs_8.jpg

http://www.namespedia.com/image/Jobbs_8.jpg

https://en.wikipedia.org/wiki/Steve_Jobs

https://en.wikipedia.org/wiki/Steve_Jobs

http://myuhaulstory.com/2014/12/23/m-carty-u-haul-trailer-man/












https://en.wikipedia.org/wiki/Leonard_Shoen

https://en.wikipedia.org/wiki/Leonard_Shoen


REFERENCES

[8] Heck, E.M. (2014). Tory Burch. URL: http://www.fastcompany.com/3033486/how-tory-burch-measures-up.


[9] Malmus, S. (2016): Muhammad Yunus. URL: http://bteam.org/team/professor-muhammad-yunus/


[10] Wikipedia the Free Encyclopedia (2016): Tory Burch. URL: https://en.wikipedia.org/wiki/Tory_Burch.


[11] Wikipedia the Free Encyclopedia (2016): Muhammad. URL: https://en.wikipedia.org/wiki/Muhammad_Yunus.


http://www.fastcompany.com/3033486/how-tory-burch-measures-up









https://social.yourstory.com/2014/03/6-lessons-young-social-entrepreneurs-muhammad-yunus/







https://en.wikipedia.org/wiki/Tory_Burch

https://en.wikipedia.org/wiki/Muhammad_Yunus


HOW DO ENTREPRENEURS

THINK?


THINK ALOUD EXPERIMENT

THINK ALOUD

EXPERIMENT

“The challenge then is really to pick your

partners, and package yourself early on before you

have to put a lot of capital out”

27 Expert

Entrepreneurs

Saras D. Sarasvathy Professor at The Darden

School, Univ. of Virginia

[2]

…Is there a difference between expert entrepreneurs vs. non-

expert entrepreneurs as concerns how they would deal with risks

& returns in highly uncertain situations?

[1]


NON ENTREPRENEURS ≠ EXPERTS

Define goals

Decision based on expected returns

…

ESTABLISHED

DECISION-MAKING PROCESS DIFFERENT APPROACH

Assess means

…

NON-ENTREPRENEURS EXPERT ENTREPRENEURS

…


DIFFERENT PROCESS

NON-ENTREPRENEURS EXPERT ENTREPRENEURS

Define resources 1

Decisions based

on resources

2

Create best

possible output

3

Define resources 3

Decisions based

on goals

2

Define goals 1

INPUT

OUTPUT


REFERENCES

[1] Dew, N., Read, S., Sarasvathy, S. D., & Wiltbank, R. (2009): Effectual versus Predictive Logics in

Entrepreneurial Decision-making: Differences between Experts and Novices. Journal of business venturing,

24(4), 287-309.

[2] University of Virgina (2016): Saras D. Sarasvathy. URL: http://www.darden.virginia.edu/faculty-

research/directory/saras-d-sarasvathy/. Access Date: 17.08.2016

http://www.darden.virginia.edu/faculty-research/directory/saras-d-sarasvathy/










THE ENTREPRENEURIAL

APPROACH


INFLUENCE ON BUSINESS ACTIVITY?

$0

$20

$40

$60

$80

$100

$120

$140

$160

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Pri

ce p

er

barr

el

Year

Development of Crude Oil Price

Financial Crisis

Oil Crisis

New Technologies

Global Price pressure

$ 4

$ 42

$ 144

$ 39

$ 35

$ 110

[1]


PLANNING HELPS PREPARING

DATA

Based on future expectations

Scenario 1

PLAN

Scenario n Scenario 2


TYPICAL PLANNING PROCESS

DEFINED

GOAL

DEFINE FUTURE GOAL

DERIVE WAY TOWARDS GOAL

GATHER RESOURCES NECESSARY

CARRY OUT PLAN

Detailed projection of goal

Means as derivative of specified goals


LIMITS OF PLANNING

Extensive research in relatively stable markets

Forecasts are based on proven and established empirical models

Forecasts build basis for financial, strategic, and production planning

[...] we had expected more favorable conditions.

Over the course of the year, the business

environment deteriorated as political and

macroeconomic challenges increased. Oil prices

and growth both dropped sharply. Sales and

earnings fell in this difficult environment [...]. [3]

Jürgen Hambrecht

Chairman of the Supervisory Board BASF

Annual Report 2015

[2

]

PLANNING IN LARGE COMPANIES EXAMPLE


WHAT IF MARKETS ARE NOT STABLE?

“[The Segway] will be to the

car what the car was to the

horse and buggy”

Dean Kamen,

Founder of Segway [4]

In the late 50’s, the French

car manufacturer SIMCA

imagined that nuclear-

powered cars would have

substituted traditional ones in

the 21st century.

“The satellites got off the

ground, but the business

never did.“

Tuck Aikin,

Journalist [5]


UNCERTAINTIES ARE INCREASING

Global markets

Less loyalty of customers/suppliers

Increasing competition

Pressure from financial markets

Shorter product life cycles


MITIGATE UNCERTAINTIES - HOW?

The

Entrepreneurial

Way!

THE ENTREPRENEUR LARGE COMPANY

“I had to give it a

full go and see

what happened.” Michel Dell [7]

DATA

Based on future expectations

Scenario 1

PLAN

Scenario n Scenario 2

Focus on planning and prediction

Focus on skills, knowledge, resources

[6]


WHAT MADE DELL A GREAT IDEA?

0

10

20

30

40

50

60

70

1985 1990 1995 2000 2005 2010

Net revenue of Dell Inc.

Idea ahead?

Billion

USD

[8]



PITFALLS

IDEA

APPROACH

LEAN

START-UP

TEAM

GET YOURSELF

STARTED

Unfold your

entrepreneurial

personality



PITFALLS

IDEA

APPROACH

LEAN

START-UP

TEAM

GET YOURSELF

STARTED

Unfold your

entrepreneurial

personality

Create your

business idea and

evaluate its potential

?


REFERENCES

[1] Crude Oil-Brent Cur. Month FOB U$/BBL - Price, taken from Thomson Reuters Datastream, 2016

[2] © BASF AG, 2016

[3] Report of the Supervisory Board, BASF Annual Report 2015

[4] Heilemann, J. (2001): Reinventing the Wheel. In: Time Magazine, Dec. 02, 2001

[5] Alkin, T. (2000): Iridium failure lesson for Entrepreneurs. In: The Gazette, May 08, 2000

[6] Hartmann Studios (2011): Michael Dell. URL: https://www.flickr.com/photos/oracle_images/6211618173/.


[7] Dell, M.: URL: http://www.investerarcitat.se/internet/michael-dell-2/. Access Date: 17.08.2016

[8] DELL INC. - NET SALES OR REVENUES (U.S.$), taken from Thomson Reuters Datastream, 2016


http://www.investerarcitat.se/internet/michael-dell-2/







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