Entrepreneurship
March 17 – 18, 2007
MBA Universidad Federico Santa Maria, Santiago, Chile
FACULTY:
Kim D. Westmoreland
Executive Professor, Babcock Graduate School of Management
Wake Forest University, Winston-Salem, NC
Contact:
kim.westmoreland@mba.wfu.edu
Overview: Entrepreneurship (ENT) is an eclectic field, drawing from such areas as strategy, economics,
psychology, and business functional domains (marketing, finance, and operations). There is more to
entrepreneurship than luck and hard work or being born that way. It is a cohesive process of creativity, calculated
risk taking, and planning. In this course, we will develop frameworks for understanding the entrepreneur and the
entrepreneurial process, and for preparing business plans.
Entrepreneurship is the dynamic process of creating incremental wealth. This wealth is created by individuals who
assume the major risks in terms of equity, time and/or career commitment of providing value for some product or
service. The product or service itself may or may not be new or unique but value must somehow be added by the
entrepreneur by securing and allocating the necessary skills and resources.
“It’s not the critic who counts, nor the observer who watches from a safe distance. Wealth is created only by
doers in the arena who are marred with dirt, dust, blood and sweat. These are producers who strike out on their
own, who know high highs and low lows, great devotions, and who over-extend themselves for worthwhile causes.
Without exception, they fail more than they succeed and appreciate this reality even before venturing out on their
own. But when these producers of wealth fail, they at least fail with style and grace, and their gut soon recognizes
that failure is only a resting place, not a place in which to spend a lifetime. Their places will never be with those
nameless souls who know neither victory nor defeat, who receive weekly paychecks regardless of their week’s
1
performance, who are hired hands in the labor in someone else’s garden. These doers are producers and no matter
what their lot is at any given moment, they’ll never take a place beside the takers, for theirs is a unique place,
alone, under the sun. They are entrepreneurs!”
Joseph Mancuso
Learning Objective: Managers tend to be mainly concerned with the accumulation of resource. In contrast,
entrepreneurs are concerned with the relentless pursuit of opportunities. Learning to identify and act on new
opportunities is the primary objective of this course. This is of particular importance in the current period of
rapid start-up of new ventures whose business model revolves around capturing more of an industry value chain
through the use of internet and similar information technologies.
By the conclusion of this course, you should come to grips with your potential role as an entrepreneur and acquire
the skills to systematically analyze new opportunities for commercialization. You will develop your own mental
model for screening ideas and your own personal strategy of ENT.
This is a lot to cover in seven sessions, so the pace will parallel that of the phenomenon we are studying.
Grading: We will keep your score by measuring how well you perform in such areas as creativity (formulating,
diagramming, and presenting an original business model), applying analytical concepts, and generalizing and applying
concepts from the entire course. Specifically your grade will be determined by:
Topic
Business Model Project
Total Points
2
Points
100
100
Business Model Exercise, Due for Class # 6: By this time in the MBA program you should be coming to grips with
the prospects of being involved in entrepreneurial activity either within a company you will work for upon or in a
start-up venture of your own.
As a way to get the creative juices flowing, I would like each team (in groups of 3-5) to develop a graphic business
model of your “dream” company / division / industry, or a start-up entrepreneurial opportunity you would like to
pursue (refer to the readings by Chesbrough for definitions of “Business Model”). I want your model to be one of
substance, arising from opportunities you have identified within such areas as: financial service offerings,
software applications, health care delivery, education, ethnic market services, use of new intellectual property,
biotechnology, and outsourcing.
This is by no means an exhaustive list to choose from. I am looking for a business model that can grow to some
significance that would require venture capital funding. Avoid restaurants and lifestyle businesses. The goal of
your presentation is to create excitement about your business model and attract interest from venture capitalist.
Using Power Point, Please include the following: (I would suggest one slide for each of the following)
 Draw a graphical representation of the business model that includes your thoughts on how you intend to create
value and why your solution is better than what is currently in practice.

3
Identify
o
o
o
o
o
o
each of the 6 elements of your business model outlined in the Chesbrough Article:
Value Proposition-What is our product or service?
Target Market-Who is the customer?
Value Chain-Where is Manufacturing and Distribution?
Value Network-Who are my Partners?
Costs/Margins-How do we make money?
Competitive Strategy-How to win?

Answer how Sahlman’s 4 key factors of success apply to your business model:
o The People
o The Opportunity
o The Context
o The Risk and Reward (How will we make money)

Create a Brand image-Invent a slogan or tag line

End with a slide that discusses next steps for your project
Also include a brief explanation (no more than one page, in English).
Come prepared to make your Power Point presentation in a 3-5 minute elevator pitch, plus 5 minutes of Q & A, for a
10 minutes total. Each person on your team must have a speaking role in the presentation.
Provide me with a printed copy of your Power Point Slides and one-page summary of your business model (in
English). Make sure to include the names of each team member.
4
Reading Material: Following are the required readings for this course.
Included in handouts:
Session 1
 ENT Questionnaire-Complete and bring to class
 ENT Glossary
 “The ENT Revolution” Timmons
 “The ENT Process” Timmons
Session 2
 “Creativity Regained” (Zades)
 “Get Creative” (Business Week)
Session 3
 Adhesion Technologies Business Plan
Session 4
 “The business model” (Chesbrough)
Session 5
 “How to write a great business plan” (Sahlman)
Session 6
 “The Elevator Pitch” (Mandel)
Suggested additional reading:
“Writing a Convincing Business Plan” (Barron’s Business Library)
“New Venture Creation” Timmons and Spinnelli
5
Class Schedule: Universidad Federico Santa Maria, Chile: Entrepreneurship
Session/Time
Focus
Activity / PPP
Readings and Other
March 17, Saturday
1. 8:00 – 10:00
ENT process and
Discussion
“The ENT Revolution” Timmons
getting started
PPP: Ent Process
“The ENT Process” Timmons
ENT Aptitude Test
This will be a chance for us to introduce ourselves to each other and to begin the process of discovering the
ENT
2. 10:15 – 12:15
Creativity
Discussion
“Creativity Regained” (Zades)
PPP: Creativity
“Get Creative” (Business Week)
Exercise – Pasta
DVD – “Basketball”
Learn techniques for uncovering new business ideas and how to screen them for commercial potential.
3. 12:30 – 14:30
Confessions of a
Serial ENT
4. 16:30 – 18:30
The Business Model
Discussion
Adhesion Technologies Business Plan
PPP: Confessions
DVD – “The Deep
Dive”
A through review of the Adhesion business model and how things turned out.
Discussion
“The business model” (Chesbrough)
PPP:Business Models
Develop a new
opportunity in the
Pet Industry into a
business model
During this session you will begin to develop a concept into a business model you believe has a compelling
commercial potential.
6
Session/Time
Home Work
Saturday Night
Focus
Developing your
business model
Activity / PPP
In groups, develop a
new opportunity into
a business model
Readings and Other
See Assignment for Business Model Exercise on
page 2 of this syllabus. Develop into a Power
Point Presentation
March 18, Sunday
5. 8:00 – 10:00
Business Plans
PPP: Business Plans
“How to write a great business plan” (Sahlman)
Business plans (BP) are often considered the focus of entrepreneurship endeavors. However, this is incomplete.
Rather, BPs represent the fit among the opportunity, people, context, and deals of the potential endeavor. As
such they are used to attract stakeholders to join you in your pursuit. Learn what makes for a compelling BP.
6. 10:15 – 12:15
Business Models
Class Presentations
Hand in your Power Point slides and your 1 page
of original business
summary
models
“The Elevator Pitch” Mandel
This session will be devoted to your presentation of the business model(s) you developed overnight. Your
allocated time will be limited by the number of presenters, so be certain to read the article on “elevator
pitches.”
7. 12:30 – 14:30
Bringing it all
together
PPP: Things you
Steve Job’s Stanford Commence Address
need to know as an
ENT
DVD: Steve Jobs
We will spend the final session finishing up your presentations and integrating what you have learned
Note: Power Point Presentations (PPP) will be handed out after each session.
7