Department of Business Administration - Chair for Entrepreneurship: A Primer in Entrepreneurship pptx

Department of Business Administration - Chair for Entrepreneurship
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Prof.Dr.UlrichKaiser
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UniversitätZürich
Fall2012
Department of Business Administration - Chair for Entrepreneurship
About Entrepreneurship – AnExample
ThefoundingteammetduringaneventorganizedbyVentureChallengeand
cameupwiththeideatoinstallatinycameraintoacomputingmousein
ordertoturnitintoascanningdeviceand increaseitsfunctionality.
Thecompany“Dacuda” hasbeen foundedin2008andhascounted13people
in2010.Thecompany’sproductissaidtohaveagreatchancetobecomethe
standardconfigurationoftheprospectivecomputingmouse.
HS12 Seite 2
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Source: /> />Department of Business Administration - Chair for Entrepreneurship
A Pi i
Et hi
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Part I
Part

I
Lecture
1
Lecture
1
AnIntroduction to Entrepreneurship
Prof.Dr.UlrichKaiser
Chair o
f
Entrepreneurship
UniversitätZürich
Fall2012
Department of Business Administration - Chair for Entrepreneurship
Agenda
1.IntroductiontoEntrepreneurship
1.1WhatisEntre
p
reneurshi
p
?
pp
1.2WhoisanEntrepreneur?
1.3WhybecomeanEntrepreneur?
1.4TypesofStartUpFirms
1.5MythsaboutEntrepreneurs
2 Entrepreneurship’s Importance
2

.
Entrepreneurship’s

Importance
3.TheEntrepreneurialProcess
HS12 Seite 4
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
Questions
Wh t th htitif t d tilfi ?
?
Wh
a
t
are
th
ec
h
arac
t
er
i
s
ti
cso
f
en
t
repreneursan
d

en
t
repreneur
i
a
l

fi
rms
?
?
?
Wh t ifl th dii t b t ?
?
?
Wh
a
t

i
n
fl
uences
th
e
d
ec
i
s
i

on
t
o
b
ecomeanen
t
repreneur
?
Wh i thiitt?
?
Wh
y
i
sen
t
repreneurs
hi
p
i
mpor
t
an
t

?
…to be answered intoday‘s lecture.
HS12 Seite 5
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
1.Introduction to Entrepreneurship

entre
prendre
between
to tak e
Entrepreneur
people who take onthe risk
b
b
d
ll
people who undertake atask
or
Entrepreneur
b
etween
b
uyers an
d
se
ll
ers
suchas starting anew venture
or
Ehi
process by which individuals pursue opportunities without regard
E
ntrepreneurs
hi
p
process


by

which

individuals

pursue

opportunities

without

regard

toresourcestheycurrentlycontrol
HS12 Seite 6
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
1.1What is Entrepreneurship ?
Inventorsand entrepreneurs differ from each other.
Inventor Entrepreneur
Aninventor creates
something new
Anentrepreneur assembles and
then integrates allresources
needed
to
transform
the

needed
to
transform
the
invention into avalibale business
HS12 Seite 7
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
1.1What is Entrepreneurship ?
Corporate
Entrepreneurship
practicedbyestablishedfirmswithanorientationtobehave
entrepreneurially
Entrepreneurship
entrepreneurially

Entrepreneurial
Intensity
describesthepositionofafirmonacontinuumfromhighly
conservative to highly entrepreneurial
Intensity
conservative

to

highly

entrepreneurial
Conservative
Firm

Entrepreneurial
Firm
Takeamore“waitandsee”posture
Conservative
Firm
Entrepreneurial
Firm
Proactive
Lessinnovative
Risk‐averse
Innovative
Risk‐taking
HS12 Seite 8
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
1.1What is Entrepreneurship ?
AppleInc. isa textbook example of anentrepreneurial firm.
©2012 AppleInc.
“
Innovation is the distinction
between a leader and a follower
„
between

a

leader

and

a

follower
.
Stev eJobs,Co‐f ounder and CEOAppleInc.
HS12 Seite 9
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
1.2Whois anEntrepreneur ?
Therearefourprimarycharacteristicsofasuccessfulentrepreneur.
Passionfor thebusiness
Product/customerfocus
Success
f
u
lEn
t
r
ep
r
e
n
eu
r
Success u
tepe eu
Executionintelligence
Tenacitydespitefailure
HS12 Seite 10
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)

©2008Prentice Hall
Department of Business Administration - Chair for Entrepreneurship
1.2Whois anEntrepreneur ?
Thenumberonecharacteristicsharedbysuccessfulentrepreneurs:
passionfortheirbusiness.
Thepassionfortheirbusinessstems
fromtheentrepreneur’sbeliefthat
thebusinesswillpositivelyinfluence
people’slives.
HS12 Seite 11
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
1.2Whois anEntrepreneur ?
SteveJob’semphasizestheimportanceofpassionforthebusiness’success.
HS12 Seite 12
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
1.2Whois anEntrepreneur ?
Successfulentrepreneursfocusonthetwoveryimportantelements‐ products
andcustomers.
Keenfocuson
p
roductsand
p
customersstemsfromthefactthat
mostsuccessfulentrepreneursare,
atheart,craftspeople.
HS12 Seite 13
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship

1.2Whois anEntrepreneur ?
Sincethefailurerateassociatedwithentrepreneurs’efforttotrysomethingnew
isnaturallyhigh,tenacityisveryimportant.
Developinganewbusinessmay
i ittibf
requ
i
reexper
i
men
t
a
ti
on
b
e
f
ore
successisattained;setbacksand
failuresareinevitably;thelitmus
test for entrepreneurs is the ability
test

for

entrepreneurs

is

the


ability

toperseverethroughsetbacksand
failures.
HS12 Seite 14
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
1.2Whois anEntrepreneur ?
Theabilitytofashionasolidbusinessideaintoaviablebusinessisakey
characteristicofsuccessfulentrepreneurs.
Theabilitytoeffectivelyex ecutea
business idea means
business

idea

means

• developingabusinessmodel
• puttingtogetheranewventure
team
team
,
• raisingmoney,
• establishingpartnerships,
• mana
g
in
g

finances
,
gg ,
• leadingandmotivatingemployees,
• translatingthought,creativity,and
imaginationintoactionand
bl l
HS12 Seite 15
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
measura
bl
eresu
l
ts
Department of Business Administration - Chair for Entrepreneurship
1.2Whois anEntrepreneur ?
DemographicsofEntrepreneursarechanging.
more
− women
− immigrants
−
youngsters
youngsters
− elderly
corporatedownsizing
desireamongolderwork ersformorepersonalfulfillment
need to earn additional income
Total Manufacturing Construc‐ Services
need


to

earn

additional

income
Total Hightech tion Total BRS
Sharefemale(in%) 21.6 19.1 24.6 9.7 23 18.1
HS12 Seite 16
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Source:Marmet (2006)
Department of Business Administration - Chair for Entrepreneurship
1.3Why become anEntrepreneur ?
There are three primary reasons to become anentrepreneur.
1. 2. 3.
Be my own boss Pursue own ideas Realize financial goals
Either people have the
Some people are naturally
People are looking
Either

people

have

the

long‐termambitionto
owntheirownfirmor

they have been
Some

people

are

naturally

alertandwhenthey
recognizeideasfornew
p
roductsorservices
,
the
y

People

are

looking

forwardtothefinancial
rewards;typicallythis
reasonissecondar
y
tothe
they


have

been

frustratedbyworking
intraditionaljobs.
p , y
haveadesiretoseethose
ideasrealized.
y
firsttwo(andoftenfails
toliveuptoitshype).
HS12 Seite 17
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
1.3Why become anEntrepreneur ?
HS12 Seite 18
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
1.4Types of StartUp Firms
Therearethreetypesofstart‐upfirms.
salary
substitute
firms
lifestyle
firms
entrepreneurial
firms
salary
‐

substitute
firms
lifestyle
firms
entrepreneurial
firms
Smallfirmsthatafford
their owner or owners
Firmsthatprovide
their owner or owners
Firmsthatbringnew
products and services
n
their

owner

or

owners

asimilarlevelof
incometowhatthey
wouldearnina
their

owner

or


owners

theopportunityto
pursueaparticular
lifestyleandearna
products

and

serv ices

tomarketbycreating
andseizing
o
pp
ortunities
definitio
n
conventionaljob
Drycleaners,
livingwhiledoingso.
Skiinstructors,golf
pp
Google,eBayand
e
conveniencestores,
restaurants,accounting
firms,retailstores,
hairstyling salons
pros,andtourguides

Starbucks
exampl
e
HS12 Seite 19
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
hairstyling

salons
Department of Business Administration - Chair for Entrepreneurship
1.5Myths about Entrepreneurs
Myth 1:Entrepreneurs ar e born,notmade.
This myth is based on the mistaken belief that some people are genetically
This

myth

is

based

on

the

mistaken

belief

that


some

people

are

genetically

predisposedtobeanentrepreneur.
Carl Friedrich Benz - a German engineer and
i
f
h
i
id
b
pi
onee
r
o
f
t
h
e automot
i
ve
i
n
d
ustry - was

b
orn
in 1844 to an unmarried mother (Josephine
Wailend). His father was Johann Georg Benz -
an
Engine
Driver
Carl Friedrich Benz
an
Engine
Driver
.
HS12 Seite 20
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
1.5Myths about Entrepreneurs
Nooneis“born”tobeanentrepreneur,buttherearecommon
personalitytraitsandcharacteristicsofsuccessfulen trepreneurs.
achievement motivated
alert
to
opportunities
optimistic disposition
persuasive
alert

to
opportunities
having astrongwork ethic
being

a moderate
risk
tak er
persuasive
promoter
resource
assembler
ti
being
a

moderate

risk
tak er
lengthy attention span
tenacious
resource
assembler
self‐confident
crea
ti
ve
decisive
ti
tenacious
tolerantof ambiguity
ii
HS12 Seite 21
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)

energe
ti
c
v
i
s
i
onary
Department of Business Administration - Chair for Entrepreneurship
1.5Myths about Entrepreneurs
Myth 2:Entrepre neurs are gamblers.
Entrepreneurs are usually moderate risk takers as are most people
Entrepreneurs

are

usually

moderate

risk

tak ers
,
as

are

most


people
.
HS12 Seite 22
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
1.5Myths about Entrepreneurs
Myth3:Entrepreneursaremotivatedprimarilybymoney.
Entrepreneurs do seek financial rewards; money is rarely the primary reason
Entrepreneurs

do

seek

financial

rewards;

money

is

rarely

the

primary

reason


entrepreneursstartnewfirms.
WaltDisney
HS12 Seite 23
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Department of Business Administration - Chair for Entrepreneurship
1.5Myths about Entrepreneurs
Myth4:Entrepreneursshouldbeyoungandenergetic.
While it is important to be energetic investors often cite the strength of
While

it

is

important

to

be

energetic
,
investors

often

cite

the


strength

of

theentrepreneur(intermsofbusinessexperience,skillandtalent)astheir
mostimportantcriterioninthedecisiontofundnewventures.
Moreoftenthannot,older,ratherthanyounger,entrepreneurshavethe
q
ualitiesthatinvestorsarelookin
g
for.
q g
Total Manufacturing Construc‐ Services
Total Hightech tion Total BRS
Averageage 39.4 40.1 42.9 38.6 39.5 39.7
HS12 Seite 24
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)
Source:Marmet (2006)
Department of Business Administration - Chair for Entrepreneurship
2Entrepreneurship‘s Importance
Entrepreneurshipisimportantforthestrengthandstabilityoftheeconomy.
Smallentrepreneurialfirmsareresponsiblefor55
percentofallUSinnovations.Theseinnovationshelp
working more efficiently and effectively
Innovation
working

more

efficiently


and

effectively
.
Economicactivityhasmovedincreasinglyinthedirectionof
smallerentrepreneurialfirms;possiblybecauseoftheabilityto
innovateandfocusonspecializedtasks.
Jobcreation
Todaymorethan97percentofallUnitedStatesexportersare
smallbusinesseswithfewerthan500employees.
Globalization
HS12 Seite 25
A Primer in Entrepreneurship, Prof. Dr. Ulrich Kaiser, Fall 2012 (Lecture1)