Social Entrepreneurship for Young Entrepreneurs

Source: Stiftung Entrepreneurship 2014

Entrepreneurship

And

Social Entrepreneurship

Source: Faltin 2011

Agenda:

Wednesday: Entrepreneurship – New Paradigms Social Entrepreneurship

Thursday: Thinking as an entrepreneur How to develop an entrepreneurial idea



What do you need

to become

an entrepreneur ?


Invention,research findings, new technologies,new ideas

„raw material“

developing and refininga business model

entrepreneurial design

acceptance by customers,competition

economicsuccess

economicfailure

the market

Success Factors for Start-Ups

Source: Faltin 2011

Our

'Brains

Beats

Capital'

Method

Source: Faltin 2011

The New Paradigms of Entrepreneurship

Entrepreneurship vs.Business Administration

Starting up using components

Concept-creative Startups


Very few people have the brains for both:for entrepreneurship as well as

for business administration

Focus on Entrepreneurship,Not Business Administration


Welche Steuern muss ich zahlen?Wie kann ich mein Unternehmen finanzieren?

Einführung in die busy-Software.Finanzplanung

Unternehmen und Organisation

Wie organisiere ich meine Gründung richtig?

Marketing für Existenzgründer

Einführung in ArbeitsrechtÜberblick über das deutsche Unternehmensrecht

Theorie und Praxis der Mitarbeiterführung

Steuerliche Probleme für Gründer

Förderrichtlinien der deutschen Ausgleichsbank

Einführung Rechnungswesen 1Strategisches Management

Interkulturelles Management

Zielgruppenanalyse

DatenbankmanagmentControlling und Qualitätssicherung

MitarbeitermotivationVergütungs- und Anreizsysteme

DatensicherungssystemeInternationaler Zahlungsverkehr

Public relations

Workload Reduction ManagementRisk management

Outsourcing

Business-to-Business-Marketing

Research and DevelopmentSWOT-AnalyseBoring People Reduction Management

Increase complexity and loss of supervision strategy

Five-Forces-Analyse

Business Plan

accounting

reading a balance sheet

controlling

negotiating with financial institutions

legal problems

professional experience in the field of the business

managing employees

creating team spirit

negotiating with suppliers

keeping inventory on hand

equipment maintenance

marketing skills

communicating with customers

reacting to complaints

representing the company in the public and media

Traditional descriptions of knowledge requirements

for entrepreneurs

?


„Selbständig sein heißt,

alles selber machen,

und das ständig“


The counter-argument

How can I judge somebody‘s qualification if I do not have the specialized knowledge

of the subject in question?

Source: Faltin 2011

Business Management

(or common sense?)

• Use ressources economically

• Organize efficiently

• Admin correctly

• Recognize warning signs


The time and attention that you need for standard business administration

is better used forcuriosity, awareness, recognition of new trends and, last not least, for leisure time

and reflection


There are millions of masters of business administration,

but only few masters of new concepts.

Source: Faltin 2011

Leaders do the right things,

managers do things right

Peter Drucker

Source: Faltin 2011

What are responsibilities of a manager

And

What should the entrepreneur do

?


not

IN

the business !

Working ON

The business


The art and scienceof being a modern entrepreneur

Awareness for new trends

Recognizing new developments

- in technology

- in competition and market environment

Creating new innovative conceptsManaging their implementation

Creating enthusiasm, curiosity, humor, a sense of joy, optimism in his or her company

Source: Faltin 2011






In the age of Internet

the entrepreneur is more

like an artist, like a composer,

not a narrow-minded business nerd.


Video


Are you capable ofbuilding an industrial complex?


outsource secreterial services

use service providers(for transport, storage, packaging, shipment)

delegateaccounting

The entrepreneur as a composer

Business Administration

Projektwerkstatt GmbH

An example: the RatioDrink company

Use components!


Entrepreneurship by components„The powerful Entrepreneur“

Almost no investment

Almost no fixed costs

There are costs only when sales occur

From the beginning professional and highly efficient, virtual and global


Old Economy

Gründen mit Komponenten


Re-Think

your start-up / organization

in components

!


Can you be

a component

For other entrepreneurs

?

Source: Faltin 2011


Entrepreneurship vs. Business Administration




Video


The term

“concept-creative”

refers to thoroughly elaborated, innovative

concepts (in contrast to initial ideas).

Such concepts are rare, not easily available


Over 200.000 customers

93% by word-of-mouth

20 employees

Turnover in 2008: 8.5 m. Euro

Biggest mail order tea house in Germany since 1995

Biggest importer of Darjeeling tea in the world since 1998

www.teekampagne.de


The Business Model:

• Function, not convention

• High-Tech, High-Touch (a virtual office with a personal secretary)

As a result, the company has cost savings of 90%

Operates more than 5000 offices350 employees

Successful from the start, despite difficult market environment

www.ebuero.de

Source: Faltin 2011

Concept-creative Organizations:

- Ratiodrink, E-buero, ePortrait, PaperC, Direktzu, Waschkampagne, Laktasekampagne

- Ford, IKEA, Aldi

- Google, Facebook, Skype, Twitter, YouTube

- Greenpeace, Amnesty International,

Foodwatch, Transparency International,

WWF, Wikipedia


“Update an industry”


Criteria for an excellent business model

1. Secure a competitive edge

1. Have a concept how to deal with imitators(“me-too“ business models)

1. Prepare for technological obsolescence

1. Prepare for economic obsolescence


Criteria for a High Potential Entrepreneurial Design

• Scalability

• Simplicity

• Minimize risk

experimental pre-start

intelligent prototyping


Most entrepreneurs succeed

by pursuing ideas

that are not only sound business opportunities

but also fit with

their personal criteria, desired life style

and values

Karl H. Vesper

Source: Faltin 2011






The Golden Opportunity

Emphasize on entrepreneurship!

(The production facilities are located in developing countries anyway)


The European Paradox

Mountains of research findings and patents

- but few people making use of it

Ejermo and Kander, 2006,Audretsch, 2007


Questions?

Pause


Entrepreneurship

And

Social

Entrepreneurship


How are

social entrepreneurs

different from

'business' entrepreneurs

?


What has a

social entrepreneur

And

A 'Business' entrepreneur'

In common

?


Those driven

by the pursuit of money only

will not

have a long enough breath

(a prerequisite for successful entrepreneurs).

Richard Olsen

Founder of the Research Institute

for Applied Economics, Switzerland


Create something original that stands out,

something with a lasting value.

Above all, you want to be proud of your product.

Such was my business philosophy .

Richard Branson


Go for a cause.

Make meaning!

Guy Kawasaki


We should build our understanding of social entrepreneurship on the strong tradition of

entrepreneurship theory and research.

Social entrepreneurs are one species in the genus entrepreneur.

They are entrepreneurs with a social mission.

Dees, Martin and Osberg, Boschee and McClurg,

Alvord, Brown and Letts

Source: Faltin 2011

What can we learn

from the field of 'Entrepreneurship'

For '

Social Entrepreneurship'?


To be independent And

self-sustainable!


Social Entrepreneurship is not:

collect donationsand spend them for good causes


Charity does not solve poverty.Moreover charity does sustain poverty,

because it robs the entrepreneurial spirit of the poor.

Muhammad Yunus


We are facing piles of problems, e.g.:

climate change,

shortage of industrial resources, peak oil,

shortage of water, pollution,

increasing inequality –

to name just a few


What

Problems

Are

you

working

on

?


Let‘s be realistic:

Will our governments, our existing institutions and big companies

solve these problems?


We should no longer leave the economic fieldto conventional business people only.

They are not up to the challenges we face.


If people understood economics,

there would be a revolution by tomorrow.

Karl Marx Henry FordHenry Ford 2011based on Henry Ford


We need new types of entrepreneurs –

call them social, environmental, political or even cultural entrepeneurs –

that create new avenues and solutions


We need „creative destruction“

of an economy / society which is driven by greed,

unsustainable use of resources

and

exploitation of the weakness of people

and

their sense of inferiority.

Source: Faltin 2011






Home Assignment

'Entrepreneurship Training':

Make your holidays, 'Verein', sport, daily activities

. . .

More entrepreneurial

!


Questions?


Entrepreneurial Designfor

Social Entrepreneurs

- From an initial idea to a sustainable, concept-creative business model -

Source: Faltin 2011





Source: Faltin 2011

Opening the idea

Methoden zur Erarbeitung des Entrepreneurial Design

Try new sightlines

search for analogies and re-combine

Tune in with your personality

„Tuning in with society‘s values“


Method: Win-Win Situations

Principle: „Connect Exhibitionists and Voyeurists“


Classical Example:

Trade


Example:Turkish Supermarket

Success through integration :

• Language

• Understanding the culture of the customers

• Sympathy through own identity

• . . .


Trading platform for Israelis and Palaestins


Method: Where are weakness,

There are also strenghts.

Use the strenghts!


Example:

Dialog im Dunkeln

Slum-Kids in Manila

. . .


Method: Fullfilling more than one function

Example: Opening hoursNature naturally fullfills more than one function!


Example: Opening Hours

• Selling Matraces = Hotel • Sympathy for the entrepreneur

. . .


Method: Turn work into fun


Example:

Re-think a farm

Earthworm / Guppies farming

own land

harvest together

Sell vegetables from other farmsUse the magic of the night

Use Events

Artists in Residence

meeting with friends vs. Selling

...


Method: „Use less“

E. g.: Product package of coffee. . .


Method: “Connectivity”

Modern societies cause loneliness

Understand people´s desire for connectivity.





Questions?

Pause

Source: Faltin 2011

Opening the idea

Methoden zur Erarbeitung des Entrepreneurial Design

Try new sightlines

search for analogies and re-combine

Tune in with your personality

„Tuning in with society‘s values“


„Open the idea“

Example: Café

Try new sightlines:

• Economically efficienctly

• ecological

• Health

• Connectedness


Thinking as an

entrepreneur


What does it need

to think

entrepreneurial ?


All children are born artists,the problem is to remain an artist as we grow up.

Pablo Picasso


The trick is creativity, simplicity and vision.

Take a different view of the world.

Be curious, learn and free yourselfof conventional rules.


Finding your passion changes everything.

Ken Robinson


Modern neurobiology states that dealing with passion increases the capacity and ability of the brain (by producing new synapses and additional

connections between them ).

Gerald Huether, a world-renowned neurobiologist, University of Goettingen


People often overlook their special talents.

Because it’s so easy for them to do it– no endeavour, no hard work necessary.


Try to get the clarity and power

to understand your own potentials

as early in life as possible


Do good for society.Get recognition and reputation.

Emphasize on your strengths.Delegate what you don‘t like to do.

Balance business and pleasure.Work and life.

And that‘s the way to becomeeconomically successful.


The essence of entrepreneurship

is being different.

Marc Casson


The real act of discovery

consists not in finding new lands

but in seeing with new eyes.

Marcel Proust


Societies are based on cultural values.

To be a really successful entrepreneur,your business ideas have to tune in

with society‘s values

Source: Faltin 2011

We had no money - thus we needed to be creative!

Richard BransonBusiness is like Rock´n´Roll

Source: Faltin 2011

The first idea usually is not the one that you bring to market.

You need a hundred ideas to get one that makes an impact

Glorianna Davenport

Source: Faltin 2011

Tolerate Ambiguity


You are a fool –

until your idea becomes

a success

Mark Twain

Source: Faltin 2011

Business ist wie Rock‘n Roll

Buchtitel von Richard Branson‘s Autobiographie

Source: Faltin 2011

Das Berater-Dilemma

Source: Faltin 2011

Find sparringspartners!

Go for theproof of concept first.

Only thereafter,start investing in big scale


Rapid Prototyping:

Example: Häkel-Oma( High-tech with High-touch)


Economics of attentation

Source: Faltin 2011

Create something original that stands out,

something with a lasting value.

Above all, you want to be proud of your product.

Such was my business philosophy .

Richard Branson


Find ways of attracting attention

In modern society the media are the key for attracting attention;

paid advertisements are a poor and expensive substitute.

Use your personal background, the innovative aspects of your product

Play as unconventional, as unorthodox as possible


The message: You can go to the beach

we will take care of your office


The modern entrepreneur has more in common with an artist

than with the traditional business manager


Economics of authenticity


Link to the people,

avoid the context of commercialization


Don‘t sell products.

But if you stubbornly believe in products,

use them as transmitters for experience,

for a story


Link to the traditional roots, the authenticity,

the cultural heritage, the contemporary arts

There are incredible values to discover

that work in your favor:

the vitality, the vibrancy,

the spiritedness, the magic.


Just to remind us:

Culture is the base of everything


Economics of sympathy


Let‘ s allow our ideasto shape a better world


Join the Entrepreneurship Campus

www.entrepreneurship.de

Entrepreneurship Summit

11. & 12. Oktober 2014


Entrepreneurship

Education


How can we prepare for an almost unpredictable future?


Education is about empowerment


Education is not about teaching, subjects, – it’s first and foremost about empowerment of people


If education is about empowerment, lecturing is not enough.

It even can alienate students.


Subjects are stored in human memory when they are used.

Hence, subjects need to be applicable, fitted into students abilities and social environments

so that they can apply it in the present or near future (in contrast to applying it in a distant future).


I noted that numbers made sense to me

only when I was confronting concrete problems.

Suddenly, those numbers came to life,

it was fun working with them.

In school, though, I used to be a real idiot

as far as math was concerned.

Richard Branson


We are born with powers of imagination, intelligence, feeling, intuition, spirituality,

and of physical and sensory awareness.

Our educational systems use only a fraction of these powers.

Ken Robinson


All children are born artists,the problem is to remain an artist as we grow up.

Pablo Picasso


Ken Robinson – Changing Education Paradigms




Quite a number of students can think well onlywhen they are moving their bodies.


Elvis Presley was not allowed to join his school‘s choir.

The teachers said,

his voice would ruin the sound.


Paul McCartney always loved music,

but he never enjoyed music lessons at school.


Learning environments are at their best when they arouse imagination and passion.


Finding your passion changes everything.

Ken Robinson


Modern neurobiology states that dealing with passion increases the capacity and ability of the brain (by producing new synapses and additional

connections between them ).

Gerald Huether, a world-renowned neurobiologist, University of Goettingen


People often overlook their special talents.

Because it’s so easy for them to do it– no endeavour, no hard work necessary.


It should be a prime task of the educational system

to help to recognize

and nurture those talents.


The authorities still believe that the traditional academic curricula are essential

for economic growth, for competitiveness and to help students get jobs.


mathematics

the sciences

the languages

the arts

humanities

They believe in the old hierarchy of subjects




The concept of so-called modern education was created in the age of the industrial revolution.



It’s a too narrow paradigm and doesn’t prepare for the future.


The European Paradox

Mountains of research findings and patents

- but few people making use of it

Ejermo and Kander, 2006,Audretsch, 2007


Only 20% of our start-ups survive the first 5 years.

Glorianna DavenportMIT Media Laboratory


Don‘t emphasize too much on technology!

Glorianna Davenport


The development of an innovative entrepreneurial idea is,

above all, a creative process.

Its engineering is comparable to an artistic creative act.

Karl H. Vesper


An empty sackcannot stand upright.

Benjamin Franklin


There are thousands of masters of business administration,

but only a few masters of new concepts.


Business is like Rock‘n Roll

Title of Richard Branson‘s autobiography


Entrepreneurs are the poets and packagers of new ideas.

Bob Schwartz


Don’t create conformity. It will not be a helpful qualification to master the future.




We need to establish an educational system that nurtures creativity rather than undermines it.


It is essential to personal fulfilment to live a life that has purpose and meaning

where you dwell in your own individuality and celebrate the person that you are.

Ken Robinson


Thank you for your attention


Old Economy

Gründen mit Komponenten