SomeSomeBig Picture ThoughtsBig Picture Thoughts

About EntrepreneurshipAbout Entrepreneurship

© 2005 Mark T. Schenkel© 2005 Mark T. Schenkel11

Big Picture Impact on Your CareerBig Picture Impact on Your Career Strategic planning and implementation are Strategic planning and implementation are

relevant to executives in all firmsrelevant to executives in all firms IntrapreneurshipIntrapreneurship Innovation Innovation

(product/process/service/system/administrative/etc.)(product/process/service/system/administrative/etc.) Skunk works – Learn to create your own ideal jobSkunk works – Learn to create your own ideal job

95+% of firms are SME’s95+% of firms are SME’s

~ 1 Million New Start-Ups Every Year in the U.S.~ 1 Million New Start-Ups Every Year in the U.S.

Analysis

StrategyFormulation

Eval., Review,& Feedback

Implementation

The Entrepreneurial Process: The Entrepreneurial Process: Iterative & in Constant FluxIterative & in Constant Flux

The Entrepreneurial Process The Entrepreneurial Process (Moore, 1986)(Moore, 1986)

PersonalJob dissatisfactionLob lossEducationAgeCommitment

PersonalAchievementLocus of controlAmbiguityRisk takingPersonal valuesEducationExperience

SociologicalNetworksTeamsParentsFamilyRole Models

PersonEntrepreneurLeaderManagerVisionary

OrganizationalTeamStrategyStructureCultureProducts

EnvironmentCompetitorsCustomersSuppliersInvestorsBankersLawyers

EnvironmentCompetitionResourcesIncubatorGovernment

EnvironmentOpportunitiesRole modelsCreativity

Innovation Triggering Event Implementation Growth

Necessity influencesNecessity influencesRetirement, RelocationRetirement, Relocation

Desirability InfluencesDesirability InfluencesPersonalityPersonalityCulture/SubcultureCulture/SubcultureFamily/PeersFamily/Peers

Possibility FactorsPossibility FactorsGovernmentGovernmentBackgroundBackgroundR&D and Marketing ExpertiseR&D and Marketing ExpertiseRole ModelsRole ModelsFinancesFinances

Broad Drivers of New Broad Drivers of New Venture Formation DecisionVenture Formation Decision

Motivation/Support SystemsMotivation/Support Systems

MotivationMotivationAchievement Achievement (messy results)(messy results)

IndependenceIndependenceJob satisfaction/controlJob satisfaction/control

Role ModelsRole ModelsSupport NetworksSupport Networks

MoralMoralProfessionalProfessional *Functional Vs. Emotional/Support*Functional Vs. Emotional/Support

Problems Facing New VenturesProblems Facing New Ventures OperationsOperations

Competition from big businessCompetition from big business Labor qualityLabor quality Poor salesPoor sales Labor costsLabor costs

Regulations and Red TapeRegulations and Red Tape TaxesTaxes InsuranceInsurance FinancesFinances InflationInflation OtherOther

How to Fail in Business: Top Ten on How to Fail in Business: Top Ten on the Road to Ruinthe Road to Ruin

1. 1. Lack of overall strategic planning

2. “Low-price leader” myopia

3. Lack of focus and direction: Both with regard to the business and the customer

4. Failure to follow-up on leads

5. The “I can do it all” syndrome

6. Inaccurate planning assumptions

How to Fail in Business: The Top How to Fail in Business: The Top Ten on the Road to RuinTen on the Road to Ruin

7. Lack of implementation plans (including tasks, timetables, budgets, and responsibilities)

8. Confusing objectives and strategies (goals not stated in quantifiable terms)

9. Inadequate capitalization; borrowing without a payback plan

10. Lack of contingency planning

Some Difficult Personality Types to Some Difficult Personality Types to Watch Out For . . . Watch Out For . . .

Shotgun SamQuickly Identifies New/Promising Opportunities, But Rarely Follows Through

Simplicity SueThinks Everything Is A Lot Simpler Than Is, Feels Can Create Business Easily

Prima Donna PaulSo In Love With Own Idea Feels Everyone Out to Steal It And Take Advantage Of Him

Ralph The RookieWell-Grounded In Theory But Lacks Real-World Business Experience

Meticulous MaryUsed To Having Things Under Control, Can’t Handle Catastrophe, Ambiguity

Underdog EdNot Comfortable Actually Transforming Invention Into Tangible Business Success

Hidden Agenda Harry

Does Not Have Right Motives/Objectives For Developing Expediting New Enterprise

Inventor IrvingMore Inventor Than Entrepreneur. More Concerned With Invention Itself.