Entrepreneurial Behavior (theory and interactive practice on effectuation)

Pori, 7 – 8 April 2014, Finland

Ing. Matthijs H.M. Hammer M.Sc.Senior lecturer EntrepreneurshipSchool of Business, Building & TechnologyPhD ResearcherFaculty of Product Innovation Management

• Short general introduction

• Theory:• What is Entrepreneurship?• How to behave like them?• How to learn this?

• Practice:• Casus: You!

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About Saxion Universities

EnschedeApeldoornDeventer

Three locations in theeastern part of the country:

•Enschede•Deventer•Apeldoorn

Bridge position between the Netherlands and Germany

Saxion University of Applied Sciences

History as a Textile region

Characteristics of Saxion:• Comprehensive university, predominantly

undergraduate level• Focus on profession-oriented education through

teaching & undergraduate research• Professional Masters’ programmes in key fields• Regional focus for all programmes, national

profile in key fields• Quality education under public scrutiny and

accreditation

Public funding, History dates back to 187523,125 students, 2,232 faculty and staff12 Schools, 6 research centres

Schools and academic programs

• School of Business Building & Technology

• School of Governance & Law• School of Health• School of Applied Psychology

and Human Resources Management

• School of Social Work• School of Education

• School of Creativity & Technology• School of Finance & Accounting• Hospitality Business School• School of Life Science, Engineering &

Design• School of Marketing & International

Management• School of Environmental Planning &

Building 

12 Schools:

•125 Bachelor / Master programmes in Dutch.•27 Bachelor / Master international programmes in English.•Various Bachelor / Master programmes in German•Non-degree programmes

Small Business & Retail Management

• For the last 12 years continually chosen as the best Entrepreneurship program in the country. (Source: Studiegids Hoger Onderwijs Ministry of Education the Netherlands, 2011)

• Voted in October 2009 as the best performing study program in the entire field of commerce/economy in The Netherlands (8.3 out of 10) (Source: Elsevier, october 2009)

Winner of Dutch Wijnand Wijnen education award for most innovative university program concept.

Small Business & Retail Management

Winner of several innovation awards for student companies

Small Business & Retail Management

A kind question for youDo you want to co-operate in applied research on

Entrepreneurship?

Please fill-out the form provided.

First part is about your thoughts on entrepreneurshipSecond part for statistical processing.

Thank you.

Task 1

Individual task, please do NOT co-operate!

Take a blank piece of paperTake a pen

Draw an entrepreneur

results

>99% human being

Where from: >80% Man

Where from: >80% Suite

Where from: >80% Tie

Where from: >80% Smiling / success

Task 2

Please do co-operate now

Make small groups Draw an entrepreneur

Results

3 levels:

•Items above personal level (common wealth / added

value).

•Items on personal level (happiness / lucky / good life)

•Items below personal level (money/ office / factory)

What is the item below?

Prototyping

+ +

Prototyping

What is an entrepreneur?

Prototyping

• Object or pattern recognition (Matlin, 2002)• Combination of attributes associated with an object or

pattern (Solso, 1999)

Question?• What is a prototype of an business opportunity?

Entrepreneurial processV

AL

UE

CR

EA

TIO

N

Opportunity recognition

Opportunity preparation

Opportunity exploitation

(Shane & Venkataraman, 2000)

ExampleSee possibilities Tackle opportunities

Know where to find it. Successful application

VA

LU

EC

RE

AT

ION

Opportunity recognition

Opportunity preparation

Opportunity exploitation

CTO/COOCulture Capital

CFO

Economic Capital

CEO

Strategic Capital

CMOSocial Capital

Relates to knowledge, technologyorganization, culture,

Relates to vision, missionInfluence, power

Relates to finance, cash flow, costs

Relates to networks on multiple aggregation Levels in markets

But remember…..

Vision without Action

Actionwithout Vision

DaydreamDaydream NightmareNightmare

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.

Different ways of development

Falcon

Source: N. Vloon, 2002Goose

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)

Step up to Saxion.

Effectuation(decision making heuristics learned by

expert entrepreneurs in uncertain, disruptive situations)

Matthijs Hammer, senior lecturer EntrepreneurshipSource: Stuart Read, Professor of Marketing

www.effectuation.org

Step up to Saxion.

Where to Start

• Causal principles (blue) what is taught in business school

• Effectual principles are always in red

Step up to Saxion.

• Means. The basis for decisionsand new opportunities:– Who I am– What I know– Whom I know

Where to Start• Goals. Given (based on predictions)

Step up to Saxion.

• Affordable Loss. Calculate downside potential and risk no more than you can afford to lose.

Risk, Return and Resources• Expected Return.

Calculate upside potentialand pursue the (riskadjusted) best opportunity.

Step up to Saxion.

Partnership. Build your “future” together with customers, suppliers and even prospective competitors.

Attitude Toward OthersCompetition. Set up

transactionalrelationships with customers and

suppliers.

Step up to Saxion.

34

Surprise

• Leverage Surprises.Surprises can present new opportunities.

• Avoid Surprises.

Step up to Saxion.

Underlying Logic & What to Do

To the extent we can predict the future, we can control it.

PLAN

To the extent we can control the future, we don’t need to predict it.

CO-CREATE

Step up to Saxion.

Effectuation(decision making heuristics learned by

expert entrepreneurs in uncertain, disruptive situations)

Step up to Saxion.

Step up to Saxion.

Step up to Saxion.

Step up to Saxion.

Task

1. Make small groups.2. Respond to the request:

From the city of Pori you are asked to develop a brand new / innovative and low cost-risk toerism attraction, museum, park or concept.

3. Prepare a pitch of 1 minute.

Thank You for your Attention