Introduction to Entrepreneurship

Eat your own fruit

Once a disciple was complaining up to his master.

You always tell us stories, but you never reveal its meaning.

The master replied:

Would you like someone offer you chewed fruit?

Anthony de Mello

"No one can understand the meaning for your. Not even your master. You have to do it by yourself"

What is Entrepreneurship?

It is the process of recognizing, seizing, pursuing and exploiting opportunities

without regard of the resources you currently control.

Entrepreneurs assemble and then integrate all the

resources needed the money, the people, the business model, the strategy to transform an invention or an

idea into a viable business.

Corporate Entrepreneurship

Entrepreneurial Firms Conservative Firms

Proactive

Innovative

Risk taking

Take a more wait and see

posture

Less innovative

Risk averse

Why Entrepreneurial courses?

More people is involved in entrepreneurial ventures.

Entrepreneurial activitis has a strong economic impact.

According to the 2010 GEM study, 7.6% of Americans are actively engaged in starting a business or are the owner/manager of a business that is less than three years old.

What types of start-up firms do you know?

Most of the people who launch a new venture report that they do so because of the existence of a market opportunity.

Almost 40% of new ventures fails during the first two years. Why?

WHY TO BECOME AN ENTREPRENEUR?

WHY?

MONEY: FINANCIAL REWARD

FREEDOM: PURSUE YOUR

OWN IDEAS

INDEPENDENCE: DESIRE TO

BE YOUR OWN BOSS

CONTROL

CREATE

HELP

WHY NOT?

RISK

FAILURE

OPPORTUNITY COST

RIDICULE

PEER PRESS

FAMILY INFLUENCE

Course objectives

Learn how to recognize, define and test opportunities.

Develop ideas into business concepts that create value.

Develop operating plans for each of the functional areas of the

company.

Determine the feasibility of the business concept through

industry, market, trend, economic and breakeven analyses.

Prepare a succinct and effective oral and/or written

presentation explaining the viability of the business concept.

Textbook

Entrepreneurship: Successfully Launching New Ventures, Barringer & Ireland, Pearson Prentice Hall. ISBN-13: 978-0-13-608353-5

Business Model Generation Osterwalder and Pigneur ISBN: 978-2-8399-0580-0

The Grades

Course Requirements Weights

Mid-term exam 20%

Final-exam 25%

Participation / Quizzes 15%

Individual assignment 1 - Elevator Pitch 5%

Group project: - Selection of the idea 5% - Canvas Model 50%

o Segments & Value Proposition (10%) o Channels & Customer Relationships (15%) o Revenue Streams & Key Resources (20%) o Key Activities, Key Partners & Cost Structure

(25%) o Canvas Model (30%)

- Feasibility Analysis 45%

25%

Individual assignment 2 Individual report 5%

Individual assignment 3 CSR initiatives 5%

Total 100%

How to succeed

You need to demonstrate commitment and hard work.

Complete assignments on time!

Late assignments are only given credit if you have a doctors statement to prove that you have been ill.

Come to class. Come on time. Stay for the whole class and participate in class discussion (ask and answer questions). Attendance is mandatory.

Remember your responsibility is to read the assigned material before the class start.

If you need to miss class for some legitimate reason, please contact a classmate to find out what we covered.

Study well for the exams.

Be highly committed during the entire semester.

Submit an excellent final assignment. Start the process with your team right after the elevator pitch presentations.

Individual business idea and elevator pitch (5%)

Each student in the class must come up with a business idea and a related concept statement (2 pages)

Can be any kind of a business idea you think would be interesting and worth pursuing Best ideas have growth potential.

http://www.wayra.org http://peru.ashoka.org/ http://www.kickstarter.com/ http://appin.com

Every student delivers an elevator pitch about his / her idea and hands in a two page concept statement to the professor.

After hearing everyones business ideas, we will form groups of five students. The groups will prepare the final feasibility analysis & business pitch based on one selected idea.

Deadline: Week 2 of the summer semester.

Final group assignment: Feasibility analysis

The final assignment consists of two parts:

A presentation

10 minute presentation in class

A written feasibility analysis (about 20 pages).

What is the pain your idea is relieving?

Assess the market (customers, competition, industry trends) for your new business idea;

Describe your basic revenue model

Evaluate whether you and your management team possess the characteristics most common to entrepreneurial success.

Deadline written report: Final week

Group report.

Presentations:

Grapes vs. Stones

What do you think are the characteristics of a successful entrepreneur?

Classify them in Soft or Hard skills

What do you think are the characteristics of a successful entrepreneur?

Entrepreneur who recognized an opportunity.

Passion and hard work.

Previous experience.

Build the adequate team. Be a team player.

Willingness to partner with and to listen to others.

Networking.

http://www.youtube.com/watch?v=KuNQgln6TL0

MANAGERS vs. ENTREPRENEURS

The Manager Planner Coordinator Organizer Supervisor Staffer Budgeter Evaluator Strategist Motivator

The Entrepreneur Visionary Opportunity-seeker Creator Innovator Calculated risk-taker Resource leverager Change agent Adaptive

The Entrepreneurial

Manager

http://www.youtube.com/watch?v=e-mewxxGUVM

E&Y (2011): Nature or Nurture What was your age when you started your first venture?

http://www.youtube.com/watch?v=pPoGb8ZQtVg

Survey on 685 respondents. All entrepreneurs. The respondents represent more than 30 countries and 25 industrial segments. 58 of the respondents can be categorized as high growth entrepreneurs.

E&Y (2011): Nature or Nurture Did you transition into being an entrepreneurial leader, or have you always

been an entrepreneurial leader?

E&Y (2011): Nature or Nurture What are the most important qualities of an entrepreneurial leader?

Characteristics of Successful Entrepreneurs

Four Primary Characteristics

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

Primary Characteristics of a Successful Entrepreneur

Passion for their business: The process of starting a new firm is demanding. Entrepreneurship is not for the person who is partially committed. (For

example, Kumon). It is important to recognize possible flaws or possible risks.

Product/customer focus: It is essential to have good products with the capacity of satisfy

customers. Tenacity despite failure.

Execution intelligence:

The ability to fashion a solid business idea into a viable business and effectively execute it:

Developing a business model. Putting together a new business team. Raising money, Establishing partnerships, Managing finances, Leading and motivating employees

E&Y (2011): Nature or Nurture What are the most important qualities of an entrepreneurial leader?

Computadora de Vuelo del Apollo 11

AGC RAM 2KB de RAM y Almacenamiento 32 KB

http://www.youtube.com/watch?v=g25G1M4EXrQ

The Power of a Vision

What do you think are the qualities of an entrepreneurial leader?

Know to recognize an opportunity. Passion and hard work. Previous experience. Build the adequate team. Be a team player. Willingness to partner with and to listen to

others. Networking. Know to take decision with incomplete

information and high levels of uncertainty and complexity.

E&Y (2011): Nature or Nurture Biggest challenges to start-up success?

E&Y (2011): Nature or Nurture What specific forms of education or sources of learning provided you with the skills

needed to build successful business?

Types of Start-Up Firms

Examples: Restaurants, dry cleaners, hairstyle salons

Examples: Ski instructors, golf pros and tour guides

Human capital affects firm survival through selection processes and through increase in efficiency and productivity:

General human capital:

Years of schooling.

Years of work experience.

Specific human capital:

Industry specific human capital

Prior self employment experience (thorough their own experience, leadership experience, parental self employment).

Bruderl, J. Preisendorfer,P. Ziegler R. Survival chances of newly founded business

Organizational ecology theory:

Firms face liabilities of newness young firms have a high risk of failure.

Entering through acquisition vs. de novo.

Entering through some type of affiliation.

Firms face liabilities of smallness. Lack of access to key resources.

Initial size of the firm.

Type of strategies used:

Specialist vs. generalist.

Innovator vs. imitators.

National markets vs. local markets.

Bruderl, J. Preisendorfer,P. Ziegler R. Survival chances of newly founded business

Youll learn how to identify new venture opportunities and take the first steps to launching an innovative company.

What is the coolest thing I'll learn in this course?

http://www.youtube.com/watch?v=G8gRkJ9cnzo

1. Is not a phenomenon, entrepreneurship it is in our potential to act.

2. Start with your available means (Who you are?, What do you know? Who do you know?, not from fictitious ideas o mystical goals.

3. Submit your actions to one great idea. Develop many possible goals of solutions of problems.

4. Instead of expected return, identify affordable lose.

5. Dont keep your idea in secret. Exchange your goal and your basic means.

6. Co-creation, develop with additional means and news goals with partners.

7. Business plan do not reduce uncertainty, but prevent desirable goal and the unplanned.

8. Luck is part of the success, but with entrepreneurial method you can turn the fortune wheel more times.

9. You are not born entrepreneurial but can learn to deal with uncertainty.

10. If you co-create the future as entrepreneur, dont have to predict it.

10 Myths of Entrepreneurship

The Entrepreneurial Process

The Entrepreneurial Process Consists of Four Steps

Step 1: Deciding to become an entrepreneur.

Step 2: Developing successful business ideas.

Step 3: Moving from an idea to an entrepreneurial firm.

Step 4: Managing and growing the entrepreneurial firm.

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

Steps in the Entrepreneurial Process

Step 1 Step 2

Developing Successful Business Ideas

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

Steps in the Entrepreneurial Process

Step 3 Step 4

Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall

Para lograr el xito tienes que tener: Un sueo (intuicin), tener fe (coraje),

hacer el esfuerzo para lograrlo

(compromiso en el tiempo)!

Miguel Angel Cornejo