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Global EntrepreneurshipDeveloping Global Mindset for Entrepreneurs
Brian David Butler
Teaching
Brian Butler is currently a professor with Forum-Nexus which is co-sponsored by the IQS Business School of the Ramon Llull University in Barcelona and the Catholic University of Milan He teaches classes on International Finance and Global Entrepreneurship in Europe every July and January
In Miami Brian has taught Finance Economics and Global Trade at Thunderbirdrsquos Global MBA program in Miami
He previously worked as a research analyst at the Columbia University Business School in New York City
brianbutlerforum-nexuscombriandbutlergmailcomLinkedInbriandbutlerSkype briandbutler
Brian David Butler
International
A global citizen Brian was born in Canada raised in Switzerland (where he attended international British school) educated through university in the US started his career with a Japanese company moved to New York to work as an analyst married a Brazilian and has traveled extensively in Latin America Asia Europe and North America
Brian currently lives in Recife Brazil where he is teaching classes on ―Global Entrepreneurship at the university ―Faculdade Boa Viagem
brianbutlerforum-nexuscombriandbutlergmailcomLinkedInbriandbutlerSkype briandbutler
KookyPlan ndash wiki for Entrepreneurs
Global Entrepreneurship
developing the global mindset for
entrepreneurs
Class 2
Saturday March 13th 2010
Resources wwwkookyplancom
notes
bull Everyone should have received my email with the updated course syllabus
bull Exam ndash will come mostly from my lecturesbull My presentations will all be placed online I will
email you the link wwwslidesharenetbull Discuss next two weekendsbull Make-up schedule during weeksbull Group projects ndash
Students should make teams Change allow one country to be Brazil (new)
1 Introduction definitions
Review from last classhellip
Facebook vs MySpace case study
Who can summarize
―what was the importance of international strategy for Facebook when competing with MySpace for market dominance in the US
Who can explain what we meant by ―network effects
International strategy = key
―Most of Facebooklsquos growth is international where theylsquove executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace by contrast expands via a command-and-control infrastructure that puts people on the ground in each new international market)
Facebook growth international
bull International Growth
bull More than 70 translations available on the site
bull About 70 of Facebook users are outside the United States
bull Over 300000 users helped translate the site through the translations application
httpwwwfacebookcompressinfophpstatistics
Facebook growth international
bull International growh = key to winning vscompetition
bull Massive growth in users
bull Network effect = value of companyhellip leads to more investmenthellipleads to better user experiencehellipleads to more users
Network effect
bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it
bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case
bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Brian David Butler
Teaching
Brian Butler is currently a professor with Forum-Nexus which is co-sponsored by the IQS Business School of the Ramon Llull University in Barcelona and the Catholic University of Milan He teaches classes on International Finance and Global Entrepreneurship in Europe every July and January
In Miami Brian has taught Finance Economics and Global Trade at Thunderbirdrsquos Global MBA program in Miami
He previously worked as a research analyst at the Columbia University Business School in New York City
brianbutlerforum-nexuscombriandbutlergmailcomLinkedInbriandbutlerSkype briandbutler
Brian David Butler
International
A global citizen Brian was born in Canada raised in Switzerland (where he attended international British school) educated through university in the US started his career with a Japanese company moved to New York to work as an analyst married a Brazilian and has traveled extensively in Latin America Asia Europe and North America
Brian currently lives in Recife Brazil where he is teaching classes on ―Global Entrepreneurship at the university ―Faculdade Boa Viagem
brianbutlerforum-nexuscombriandbutlergmailcomLinkedInbriandbutlerSkype briandbutler
KookyPlan ndash wiki for Entrepreneurs
Global Entrepreneurship
developing the global mindset for
entrepreneurs
Class 2
Saturday March 13th 2010
Resources wwwkookyplancom
notes
bull Everyone should have received my email with the updated course syllabus
bull Exam ndash will come mostly from my lecturesbull My presentations will all be placed online I will
email you the link wwwslidesharenetbull Discuss next two weekendsbull Make-up schedule during weeksbull Group projects ndash
Students should make teams Change allow one country to be Brazil (new)
1 Introduction definitions
Review from last classhellip
Facebook vs MySpace case study
Who can summarize
―what was the importance of international strategy for Facebook when competing with MySpace for market dominance in the US
Who can explain what we meant by ―network effects
International strategy = key
―Most of Facebooklsquos growth is international where theylsquove executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace by contrast expands via a command-and-control infrastructure that puts people on the ground in each new international market)
Facebook growth international
bull International Growth
bull More than 70 translations available on the site
bull About 70 of Facebook users are outside the United States
bull Over 300000 users helped translate the site through the translations application
httpwwwfacebookcompressinfophpstatistics
Facebook growth international
bull International growh = key to winning vscompetition
bull Massive growth in users
bull Network effect = value of companyhellip leads to more investmenthellipleads to better user experiencehellipleads to more users
Network effect
bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it
bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case
bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Brian David Butler
International
A global citizen Brian was born in Canada raised in Switzerland (where he attended international British school) educated through university in the US started his career with a Japanese company moved to New York to work as an analyst married a Brazilian and has traveled extensively in Latin America Asia Europe and North America
Brian currently lives in Recife Brazil where he is teaching classes on ―Global Entrepreneurship at the university ―Faculdade Boa Viagem
brianbutlerforum-nexuscombriandbutlergmailcomLinkedInbriandbutlerSkype briandbutler
KookyPlan ndash wiki for Entrepreneurs
Global Entrepreneurship
developing the global mindset for
entrepreneurs
Class 2
Saturday March 13th 2010
Resources wwwkookyplancom
notes
bull Everyone should have received my email with the updated course syllabus
bull Exam ndash will come mostly from my lecturesbull My presentations will all be placed online I will
email you the link wwwslidesharenetbull Discuss next two weekendsbull Make-up schedule during weeksbull Group projects ndash
Students should make teams Change allow one country to be Brazil (new)
1 Introduction definitions
Review from last classhellip
Facebook vs MySpace case study
Who can summarize
―what was the importance of international strategy for Facebook when competing with MySpace for market dominance in the US
Who can explain what we meant by ―network effects
International strategy = key
―Most of Facebooklsquos growth is international where theylsquove executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace by contrast expands via a command-and-control infrastructure that puts people on the ground in each new international market)
Facebook growth international
bull International Growth
bull More than 70 translations available on the site
bull About 70 of Facebook users are outside the United States
bull Over 300000 users helped translate the site through the translations application
httpwwwfacebookcompressinfophpstatistics
Facebook growth international
bull International growh = key to winning vscompetition
bull Massive growth in users
bull Network effect = value of companyhellip leads to more investmenthellipleads to better user experiencehellipleads to more users
Network effect
bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it
bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case
bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
KookyPlan ndash wiki for Entrepreneurs
Global Entrepreneurship
developing the global mindset for
entrepreneurs
Class 2
Saturday March 13th 2010
Resources wwwkookyplancom
notes
bull Everyone should have received my email with the updated course syllabus
bull Exam ndash will come mostly from my lecturesbull My presentations will all be placed online I will
email you the link wwwslidesharenetbull Discuss next two weekendsbull Make-up schedule during weeksbull Group projects ndash
Students should make teams Change allow one country to be Brazil (new)
1 Introduction definitions
Review from last classhellip
Facebook vs MySpace case study
Who can summarize
―what was the importance of international strategy for Facebook when competing with MySpace for market dominance in the US
Who can explain what we meant by ―network effects
International strategy = key
―Most of Facebooklsquos growth is international where theylsquove executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace by contrast expands via a command-and-control infrastructure that puts people on the ground in each new international market)
Facebook growth international
bull International Growth
bull More than 70 translations available on the site
bull About 70 of Facebook users are outside the United States
bull Over 300000 users helped translate the site through the translations application
httpwwwfacebookcompressinfophpstatistics
Facebook growth international
bull International growh = key to winning vscompetition
bull Massive growth in users
bull Network effect = value of companyhellip leads to more investmenthellipleads to better user experiencehellipleads to more users
Network effect
bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it
bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case
bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Global Entrepreneurship
developing the global mindset for
entrepreneurs
Class 2
Saturday March 13th 2010
Resources wwwkookyplancom
notes
bull Everyone should have received my email with the updated course syllabus
bull Exam ndash will come mostly from my lecturesbull My presentations will all be placed online I will
email you the link wwwslidesharenetbull Discuss next two weekendsbull Make-up schedule during weeksbull Group projects ndash
Students should make teams Change allow one country to be Brazil (new)
1 Introduction definitions
Review from last classhellip
Facebook vs MySpace case study
Who can summarize
―what was the importance of international strategy for Facebook when competing with MySpace for market dominance in the US
Who can explain what we meant by ―network effects
International strategy = key
―Most of Facebooklsquos growth is international where theylsquove executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace by contrast expands via a command-and-control infrastructure that puts people on the ground in each new international market)
Facebook growth international
bull International Growth
bull More than 70 translations available on the site
bull About 70 of Facebook users are outside the United States
bull Over 300000 users helped translate the site through the translations application
httpwwwfacebookcompressinfophpstatistics
Facebook growth international
bull International growh = key to winning vscompetition
bull Massive growth in users
bull Network effect = value of companyhellip leads to more investmenthellipleads to better user experiencehellipleads to more users
Network effect
bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it
bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case
bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Resources wwwkookyplancom
notes
bull Everyone should have received my email with the updated course syllabus
bull Exam ndash will come mostly from my lecturesbull My presentations will all be placed online I will
email you the link wwwslidesharenetbull Discuss next two weekendsbull Make-up schedule during weeksbull Group projects ndash
Students should make teams Change allow one country to be Brazil (new)
1 Introduction definitions
Review from last classhellip
Facebook vs MySpace case study
Who can summarize
―what was the importance of international strategy for Facebook when competing with MySpace for market dominance in the US
Who can explain what we meant by ―network effects
International strategy = key
―Most of Facebooklsquos growth is international where theylsquove executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace by contrast expands via a command-and-control infrastructure that puts people on the ground in each new international market)
Facebook growth international
bull International Growth
bull More than 70 translations available on the site
bull About 70 of Facebook users are outside the United States
bull Over 300000 users helped translate the site through the translations application
httpwwwfacebookcompressinfophpstatistics
Facebook growth international
bull International growh = key to winning vscompetition
bull Massive growth in users
bull Network effect = value of companyhellip leads to more investmenthellipleads to better user experiencehellipleads to more users
Network effect
bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it
bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case
bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
notes
bull Everyone should have received my email with the updated course syllabus
bull Exam ndash will come mostly from my lecturesbull My presentations will all be placed online I will
email you the link wwwslidesharenetbull Discuss next two weekendsbull Make-up schedule during weeksbull Group projects ndash
Students should make teams Change allow one country to be Brazil (new)
1 Introduction definitions
Review from last classhellip
Facebook vs MySpace case study
Who can summarize
―what was the importance of international strategy for Facebook when competing with MySpace for market dominance in the US
Who can explain what we meant by ―network effects
International strategy = key
―Most of Facebooklsquos growth is international where theylsquove executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace by contrast expands via a command-and-control infrastructure that puts people on the ground in each new international market)
Facebook growth international
bull International Growth
bull More than 70 translations available on the site
bull About 70 of Facebook users are outside the United States
bull Over 300000 users helped translate the site through the translations application
httpwwwfacebookcompressinfophpstatistics
Facebook growth international
bull International growh = key to winning vscompetition
bull Massive growth in users
bull Network effect = value of companyhellip leads to more investmenthellipleads to better user experiencehellipleads to more users
Network effect
bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it
bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case
bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
1 Introduction definitions
Review from last classhellip
Facebook vs MySpace case study
Who can summarize
―what was the importance of international strategy for Facebook when competing with MySpace for market dominance in the US
Who can explain what we meant by ―network effects
International strategy = key
―Most of Facebooklsquos growth is international where theylsquove executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace by contrast expands via a command-and-control infrastructure that puts people on the ground in each new international market)
Facebook growth international
bull International Growth
bull More than 70 translations available on the site
bull About 70 of Facebook users are outside the United States
bull Over 300000 users helped translate the site through the translations application
httpwwwfacebookcompressinfophpstatistics
Facebook growth international
bull International growh = key to winning vscompetition
bull Massive growth in users
bull Network effect = value of companyhellip leads to more investmenthellipleads to better user experiencehellipleads to more users
Network effect
bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it
bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case
bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Facebook vs MySpace case study
Who can summarize
―what was the importance of international strategy for Facebook when competing with MySpace for market dominance in the US
Who can explain what we meant by ―network effects
International strategy = key
―Most of Facebooklsquos growth is international where theylsquove executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace by contrast expands via a command-and-control infrastructure that puts people on the ground in each new international market)
Facebook growth international
bull International Growth
bull More than 70 translations available on the site
bull About 70 of Facebook users are outside the United States
bull Over 300000 users helped translate the site through the translations application
httpwwwfacebookcompressinfophpstatistics
Facebook growth international
bull International growh = key to winning vscompetition
bull Massive growth in users
bull Network effect = value of companyhellip leads to more investmenthellipleads to better user experiencehellipleads to more users
Network effect
bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it
bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case
bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
International strategy = key
―Most of Facebooklsquos growth is international where theylsquove executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace by contrast expands via a command-and-control infrastructure that puts people on the ground in each new international market)
Facebook growth international
bull International Growth
bull More than 70 translations available on the site
bull About 70 of Facebook users are outside the United States
bull Over 300000 users helped translate the site through the translations application
httpwwwfacebookcompressinfophpstatistics
Facebook growth international
bull International growh = key to winning vscompetition
bull Massive growth in users
bull Network effect = value of companyhellip leads to more investmenthellipleads to better user experiencehellipleads to more users
Network effect
bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it
bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case
bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Facebook growth international
bull International Growth
bull More than 70 translations available on the site
bull About 70 of Facebook users are outside the United States
bull Over 300000 users helped translate the site through the translations application
httpwwwfacebookcompressinfophpstatistics
Facebook growth international
bull International growh = key to winning vscompetition
bull Massive growth in users
bull Network effect = value of companyhellip leads to more investmenthellipleads to better user experiencehellipleads to more users
Network effect
bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it
bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case
bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Facebook growth international
bull International growh = key to winning vscompetition
bull Massive growth in users
bull Network effect = value of companyhellip leads to more investmenthellipleads to better user experiencehellipleads to more users
Network effect
bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it
bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case
bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Network effect
bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it
bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case
bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Global strategies vs
Localization
What are ―global industries
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Globalization
bull ―international borders and trade barriers came down
bull Communism fell bull Protectionist walls in Latin America and elsewhere
were dismantled bull Governments took a back seat to broader market
forcesbull Thomas Friedman declared that the Internet and
other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Globalization
Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally
Such industries as computer manufacture where the products are standardized are prime candidates for global competition
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Globalization
bull Types of ldquoglobalrdquo industries
bull Luxury consumer goodsbull Pharmaceuticalbull Technology
Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Globalization
bull Not Americanization
bull Note that globalization does not equal americanization
proof is that there are just as many sushi restaurants as Mc Donalds
and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Globalization -- why
bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated
bull As a result we see new opportunities for even small companies to compete
globally
But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Localization
Sometimes a company can make much more money by ―localizing their productshellip but at what cost
bull Note it costs $$ to localize (translate) and you might loose economies of scale
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Localization
bull Examples
Consumer goods
Food
Perfumes
Local tastes preferences languageshellip
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Localization
bull counter trend in retailing
consumers are resisting globalization
going to the other extreme localization in which products are just sourced locally grown locally produced locally
consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Localization v Globalization ndash how
much to localize
bull How much localization of your product should you make If you are marketing a truely global brand then maybe you
dont want to change very much
But maybe local requirements mean that you could sell more if you would modify your product
Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets
How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
bull Localization leads to more sales but globalization leads to more efficiency
bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the
product the same to every customerbull The more you adapt the product marketing mix the higher
your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes
bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make
Localization v Globalization ndash how
much to localize
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Localization
bull Example
bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Localization
bull How much localization is necessary
bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex
bull note that even Mercedez Benz is forced to localize
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
2 The ldquoentrepreneur mindsetrdquo
Critical thinking patterns of entrepreneurshellip
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
The ldquoentrepreneur mindsetrdquo
bull Importance of
critical thinking
idealism
trend awareness
problem solving
bull The importance of Critical Thinking for innovation
bull ―Fail fast and ―global learning
bull Brainstorming
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Critical thinking
bull Habit to ask ―what is wrong
bull Look for problems
bull Try to ―poke holes in story
bull What are the ―assumptions Are they realistic
bull What could be done better next time
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Idealism
bull How ―should the world be
bull Donlsquot just look at the way thing arehellip
bull Dream how they ―should be
bull Is there a gap
bull If so what can should be done to fix
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
trend awareness
bull What is changing
bull Are you aware of the changes
bull Are you ready for the challenges
bull Will it be you who takes advantage of the opportunities
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Problem solving
bull Great entrepreneurs are ones that solve problems
bull Best ideas come from personal problems
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Why solve problems
bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified
Y Combinator httppaulgrahamcomstartupmistakeshtml
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Why solve problems
bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work
So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was
Y Combinator httppaulgrahamcomstartupmistakeshtml
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
ldquofast failingrdquo
bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―
bull The idea Dont be afraid to try new business but if its going to fail donlsquot be
afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years
The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)
The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly
If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new
businesses popular within the startup community of Silicon Valley USA
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
fast failing
bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself
bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
fast failing
bull Numbers
bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Brain-storming
bull process of generating LOTS of ideas quickly
bull Think outside of the box
bull Original thinking
bull Key ndash donlsquot be afraid of uncommon thoughts
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Brainstorming
bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Keys to successful (focused)
brainstorming
1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new
ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a
time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible
in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum
6 think out of the box out of the roomout of this worldencourage wild ideas
7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now
is better than a perfect prototype a month from now)
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce
the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group
bullbull Focus on quantity This rule is a means of enhancing divergent
production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution
bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas
bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions
bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
2 why be an entrepreneur
Class participationhellip
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Review last week
bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global
bull Class discusshellip
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure
and close proximity to global trends would keep us ahead of changing consumer demands
manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources
use flexibility to service customers before and after the sale allowing them to customize their products
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
ldquoThinking global for entrepreneursrdquo
bull Example furniture company should look for global efficiencies and world wide centers of excellence
bull ideal structure For my management structure I would need to be flexible
enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences
I would try to develop my worldwide learning and realize that design innovations could come from everywhere
I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)
But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Why become an entrepreneur
bull Class discussion ndash summarize here
1
2
3
4
5
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
What are Entrepreneurs ldquolikerdquo
(personal characteristics attributes)
bull Class discussion ndash summarize here
1
2
3
4
5
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
What it means to be an
entrepreneur
bull An Entrepreneur
is someone with big ideas and a strong belief that they can make it happen
An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns
httpkookyplanpbworkscom
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Risk
bull Entrepreneurship is about taking risk
bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture
httpkookyplanpbworkscom
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Types of entrepreneurs1 Lifestyle Entrepreneurs
Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)
2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek
to go national or go global These entrepreneurs will find stiff competition from existing
firms and will succeed only if they find a way to change the rules of the game
They seek to create their own opportunities and to disrupt others business plans
These are the ones that often get venture capital fundinghttpkookyplanpbworkscom
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
bull Characteristics of typical Entrepreneurs
bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs
bull A desire to achieve The push to conquer problems and give birth to a successful venture
bull Hard work It is often suggested that many entrepreneurs are workaholics
bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an
organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce
bull Nurturing quality Willing to take charge of and watch over a venture until it can stand
alonebull Acceptance of responsibility
Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
bull Characteristics of typical Entrepreneurs
bull Reward orientation Desire to achieve work hard and take responsibility but also with a
commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect
bull Optimism Live by the philosophy that this is the best of times and that anything is
possiblebull Orientation to excellence
Often desire to achieve something outstanding that they can be proud ofbull Organization
Are good at bringing together the components (including people) of a venture
bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge
their success and achievement
httpkookyplanpbworkscom
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Great for a resume (CV)
bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
bull 1 Vision
bull 2 Passion
bull 3 Purpose
bull 4 Adaptability
bull 5 Leadership Skills
bull 6 Networking Savvy
bull 7 Determination
bull 8 Positive attitude
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
What is an ldquoentrepreneurrdquo
bull Entrepreneurship merges the visionary and the pragmatic
bull It requires knowledge imagination perception practicality persistence and attention to others
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
What is an ldquoentrepreneurrdquo
bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them
bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
What is an ldquoentrepreneurrdquo
bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation
httpkookyplanpbworkscom
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
What is an ldquoentrepreneurrdquo
bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea
bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others
httpkookyplanpbworkscom
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Can you teach
ldquoentrepreneurshiprdquo
Study from Kauffman Foundation
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
bull Entrepreneurs are among the most celebrated people in our culture
bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications
bull These company founders and innovators fuel economic growth and give the nation its competitive edge
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
In high esteem
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
But Can Entrepreneurs Be Made
Can you teach someone to be an entrepreneur
The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Saying NO
―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students
And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs
Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes
bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)
bull Their parents were academics lawyers factory workers priests bureaucrats etc
bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
On the other handhellip
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively
Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)
bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that
entrepreneurship can be taughtrdquo
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Saying ldquoYESrdquo
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Creating the ldquoclusterrdquo
bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs
bull This aims to dramatically increase the ability of small businesses to become big businesses
bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors
bull The goal is to educate entrepreneurs and surround them with a powerful network
bull This is like a Y Combinator on steroids
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Family + genes ndash important
bull More important are you social and professional networks
―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―
VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs
bull Were all of these people born to be entrepreneurs as well I donlsquot think so
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
What mattershellip
bulleducation
bullexposure to entrepreneurship
bullnetworks
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
bull NO
bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need to start early
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
NO
bull Level of Education does matter mdash but not the college they graduate from
bull Significant difference between companies started by founders with just high-school diplomas and the rest
bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Do you need a Harvard Education
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Profile of successful (high-growth)
entrepreneurs
bull Company founders tend to be middle-aged and well-educated and did better in high school than in college
bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents
bull Most entrepreneurs are married and have children
bull Early interest and propensity to start companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Profile of successful (high-growth)
entrepreneurs
bull Top 4 Motivations for becoming entrepreneurs
1 building wealth
2 owning a company
3 startup culture and c
4 capitalizing on a business idea
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Profile of successful (high-growth)
entrepreneurs
bull Not important or less-important factors
1 inability to obtain employment
2 encouragement from others
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Profile of successful (high-growth)
entrepreneurs
bull One common factor
1 Most had significant industry experience when starting their companies
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Industry experience
bull suggestion
1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)
Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Profiles of Entrepreneurs
bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Profile of successful (high-growth)
entrepreneurs
bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different
Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)
Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)
Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group
Techcrunchcom by Vivek Wadhwa on Feb 27 2010
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Homework from last class
Student presentations (each student to present)
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Homework review
3-questions exercise
bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide
bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Class Schedule Topics to cover
The ldquoThree Questionsrdquo framework
bull The ―three questions framework
1 ―what is the problem and what are you going to do about it
2 ―What is the trend and how are you going to get in front of it
3 ―what is great here somewhere else and where else could it work how are you going to
localize it Where else could you bring this idea and find success
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Problem solving
Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Trends
Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models
global changes technology communications capital markets
regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
WIWH ndash localizing business models
bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Homework Review ndash class participation
bull Each student to present Front of class Top 2 ideas
bull Students watching should Think critically Ask questions Challenge assumptions
bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Homework review ndash my observations
Most did well locally
Struggled globally
Most did well looking at (a) problems and (c) ideas to transfer
But struggled with ―trends
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Where to look for more trends and
inspiration hellip
bull Some of my favorite siteshellip
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Inspiration Mundo SA (globo)
httpglobonewsglobocomJornalismoGN0JOR315-1766500html
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Springwise
httpspringwisecomideas
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Springwise
bull Who is it for
Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you
httpspringwisecomideas
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Springwise
bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand
bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries
bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands
httpspringwisecomideas
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Trendwatchingcom
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
A Brazilian versionhellip
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
VC thought-leaders
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
More Homework
Sorry
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Homework 1
3-questions exercise ndash AGAIN ndash try
to improve 2nd timebull Identify at least (1) major problem (1) major trend
and (1) transferrable idea in
bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or
worldwide
bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
3-questions exercise ndash AGAIN ndash try to
improve 2nd time
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Homework 2
Group Project
bull Pick your group (3 students)bull All groups must deliver the following
Proposed product service Proposed 2 countries Outline of major issues (cultural technological
political economichellipfor why it may or may not work)
Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Homework 3
Social Media projectbull To get ready for next class presentation on how global
entrepreneurs can use social media to attract global clients
bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and
entrepreneurship
bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations
Due Tursday May 1st (before easter)
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
International IQ moment
Great stuff abroad you should know exists
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Why
bull Travel abroad (in person online through media)
Above allhellip learn to be curious about international places people cultures businesses events politics etc
Increase your international IQ every day
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Santorini Greece
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Santorini Greece
bull Volcano
bull Greek Island
bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
International IQ moment
Great stuff abroad you should know exists
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Mount St Michael France
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Mount St Michael France
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles
Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in
Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before
modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount
bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]
bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles