IT Entrepreneurs
Self-Portrait of Poly, Monet
Amanda Koehler,
Dee Dee Veal,
Balazs Klanicza,
Kesorn Tongwan
1
Objectives





Understand the evolving definition of an
entrepreneur
Learn about the characteristics and demographics of
entrepreneurs
Meet real entrepreneurs from around the globe
Examine the large amount of research that has been
conducted on entrepreneurs and compare it to the
entrepreneurs we interviewed
Find out if you have what it takes
2
Entrepreneur




French origin – “to undertake” (13)
Richard Cantillon (1730) – “self-employment of any
and every sort”, including beggars and robbers (22)
One who organizes, manages and assumes the risk
of a business or enterprise (13)
Peter Drucker, modern management theorist “Shifts economic resources out of an area of lower
and into an area of higher productivity and greater
yield,” (22)
3
Objectives





Understand the evolving definition of an
entrepreneur
Learn about the characteristics and demographics of
entrepreneurs
Meet real entrepreneurs from around the globe
Examine the large amount of research that has been
conducted on entrepreneurs and compare it to the
entrepreneurs we interviewed
Find out if you have what it takes
4
Qualities of an Entrepreneur

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
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Inner drive to succeed
Strong belief in
themselves
Open to change
Competitive
Highly motivated

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Initiative
Commitment
Leadership
Self-direction
Optimism
Hard work
5
(11,12,13)
Demographics: Age


Greater levels of
experience, superior
personal networks, and a
stronger financial asset base
Entrepreneurship increases
with age (2002)



21% of the working
population, age 66+
11%, age 25-54
8%, age 25-34
6
(17)
Pablo Picasso’s Old Guitarist
Demographics: Gender


Women owned firms have a higher probability of
closure and a lower probability of becoming
profitable (Study of 2,994 US companies, 1993)
In 2000, more men than women in the US were selfemployed
7
(19)
Cultural Influences


In a review of 21 empirical studies, Hayton,
George and Zhara found that cultures that
value risk taking and independent thinking
(such as the United States, Singapore and
many European countries) have more
entrepreneurial activity
Cultures that value conformity, group
interests and control (many Asian and Islamic
nations) over the future have less
8
(19)
Guess the Entrepreneur
Bill Gates, Microsoft
9
Objectives





Understand the evolving definition of an
entrepreneur
Learn about the characteristics and demographics of
entrepreneurs
Meet real entrepreneurs from around the globe
Examine the large amount of research that has been
conducted on entrepreneurs and compare it to the
entrepreneurs we interviewed
Find out if you have what it takes
10
Meet Real Entrepreneurs
from Around the World
Matthew Porter,
St. Louis, MO
Csaba Zajdó,
Hungary
Akom Thongloy,
Thailand
11
Matthew Porter



Owner and founder of Contegix
St. Louis, MO
32 years old
12
Background

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Introverted, logical middle child
Grandpa bought him his first computer when he was
six years old
Sold his first commercial software at age seven
CBC High School graduate
Began as a Pre-Med Student at St. Louis University
Changed his major to computer science after the
first semester
13
Career Background

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

Started a small business computer consulting
company in 1998
Sold the customer base to pay for his wedding
Worked in industry to learn the right and
wrong ways to operate
Managed a software development project that
was shelved when the company was acquired
by a competitor
14
Contegix



With his wife’s help, he decided it was time to
start his own business
Founded Metissian with his friend Craig,
while still working full time at Demand
Management
Contegix began because customers wanted
and needed hosting services
15
Csaba Zajdó

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
Co-owner, founder and CEO of WebShopExperts
Debrecen, Hungary
25 years old
16
Csaba’s Background
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Extroverted, logical
Very talented in Math and Computer Sciences
Competitive personality
Local high school
MSc Degree in Business Administration at the
University of Debrecen
Programming-mathematic studies, graduation
in 2008 or 2009
17
Csaba’s Background




Business icon: Bill Gates
First thought of starting a business at age 14
Early plans at the age of 18
Started his company in the beginning of 2006,
at the age of 23
18
Csaba’s Career Background



No prior work experience, started in the last
semester of business studies
He started the company with almost no
money and experience
Founded the company with his brother with
minimal financial help from their parents
19
WebShop-Experts
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Founded in the beginning of 2006
In 6 months, he got an office equipped and
had his first employee
After one year, he had 5 employees
Currently, 14 people on his team with good
potential for further growth
20
Akom Thongloy



Owner and founder of Extreme Solution
Bangkok, Thailand
30 years old
21
Akom’s background

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

Extroverted, self-directed
Grew up in agricultural family
Graduated with a Bachelor’s degree in
Electronics Engineering
Interested in Web designing and Visual Basic
22
Akom’s Career Background



Worked in an IT company for 2 years
Together with his former classmate, he started
his own company, Extreme Solution
Started serving clients who he had known
since he worked in former company.
23
Extreme Solution
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
Founded in 2005
Focus on customer service
Decentralized organizational structure
Profit increased around 40% since first year
24
Hobbies of Entrepreneurs
Matthew Porter,
Contegix
Csaba Zajdó,
WebShopExperts
Weekly yoga
 Body building
class with wife
 Starcraft (3x
 Spend time with WCG)
three kids
 Girlfriend
 Write code for
fun

Akom
Thongloy,
Extreme
Solution
 Play guitar
 Surf the
Internet
Read a book
25
Guess the Entrepreneur
Jeff Bezos,
Amazon
26
Objectives





Understand the evolving definition of an
entrepreneur
Learn about the characteristics and demographics of
entrepreneurs
Meet real entrepreneurs from around the globe
Examine the large amount of research that has been
conducted on entrepreneurs and compare it to the
entrepreneurs we interviewed
Find out if you have what it takes
27
Hatch & Zweig Study


Sample: Over 50 In-depth interviews with
entrepreneurs from the Chicago area
Findings:


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

(8)
Middle to Upper Class families
Post secondary degree unrelated to business field
Different stages of onset
Modest performers in other aspects
5 key personal characteristics
28
The Stuff Entrepreneurs are Made of
RISK TOLERANCE
DESIRE TO SUCCEED
ENTREPRENEURIAL
SPIRIT
+
GENERATION
OF BUSINESS
CONCEPT
SERENDIPITY
DESIRE FOR CONTROL
BIRTH
OF THE
FIRM
PERSEVERANCE
DECISIVENESS
29
(8)
Northeastern University Study


(9)
School of Technological Entrepreneurship
Sample: 202 U.S. based entrepreneurs
30
Were your parents, grandparents, or
siblings entrepreneurs?
Northeastern University Study
Our Interviews
N=202
N=3
Yes
33%
Yes
38%
No
62%
No
67%
31
(10)
At what age did you launch your first
venture ?
Northeastern University Study
Our Interviews
N=202
N=3
12%
40+
13%
30 -40
18 - 30
42%
Childhood
Childhood
18-30
30-40
40+
33%
Childhood
18 - 30
67%
33%
32
(10)
What was your biggest inspiration?
Northeastern University Study
Our Interviews
N=202
N=3
Myself
20%
33%
Work
Myself
11% Icon
Family
Family
Industry
Icon
Work
Experience
33%
34%
Icon
Myself
Family
36%
33%
33
(10)
What were your biggest motivators
towards starting your own venture?
Northeastern University Study
Our Interviews
N=202
N=3
16%
Peers
Innate
Work 21%
62%
1%
Peer
Successes
Work
Experience
Higher
Education
Innate
Drive
33%
Peers
Work
67%
34
(10)
How fearful were you that your first
venture would not succeed?
Northeastern University Study
Our Interviews
N=202
N=3
12%
Fear delayed
42%
14%
Some fear
Significant
Fear delayed
venture
Significant
fear
No fear
100%
Some fear
No fear
32%
Some fear,
but confident
35
(10)
Do you consider yourself a risk taker when making big
decisions that deal with your business?
Northeastern University Study
Our Interviews
N=202
N=3
Yes
5% 5%
Yes
Somewhat
49%
41%
Somewhat
cautious
Big decisions
keep me up at
night
I avoid big
decisions
Yes
100%
36
(10)
Results of Survey
Question
Survey Majority
Response
Interview Majority
Response
Family member Entrepreneur
No
No
First Venture
During Childhood
Age 18-30
Biggest Inspiration
Family
Mixed response
Biggest Motivator
Innate Drive
Work
Fear of failure
Some fear, but
confident
Some fear, but
confident
Risk taker
Somewhat cautious
Yes
(9 , 10)
37
Donald J. Taffi Research
Unusually well-developed ego
(7)
Matthew
Porter,
Contegix
Csaba Zajdó,
WebShopExperts
Akom Thongloy,
Extreme Solution
a
a
a
a
a
a
Detail oriented, perfectionists who rarely develop
personal intimacy in their relationships
Endowed with inexhaustible reservoir of energy
a
Nothing is done soon enough, everything is a crisis
Tend to be contingency thinkers, generally six months or
longer ahead
a
a
a
Unwilling to surrender the need for complete control
a
a
a
Above average intelligence; tend to see the “big picture”
a
a
a
Higher than normal level of emotional stability
a
Strong desire to succeed, passion for product or business
a
a
a
Calculated risk takes, not gamblers
a
a
38
Taffi’s Conclusion

“It takes one to know one”
39
(7)
Guess the Entrepreneur
Mark Zuckerberg,
Facebook
40
Start Up Cost


One of the most intimidating aspects of starting
your own business in any industry
Microsoft’s Small Business Center recommends
saving enough to cover your initial expenses plus
six months worth of operating expenses
41
(1)
Interviews: Start Up Costs



Matthew Porter, Contegix: Initially none, because
still working full time. Then when money was
needed for expansion, they sold an interest to a
minority shareholder company
Csaba Zajdó, WebShop-Experts: Almost nothing,
but foundation costs. Needed only a computer and
knowledge (rather business skills than technical!)
Akom Thongloy, Extreme Solution: Initially none.
Reinvested profits to expand the company.
42
Location, Location, Location


West and Bamford studied two recent literature
reviews to identify the characteristics present in
communities that foster entrepreneurial growth
What factors created the Silicon Valley successes?
 Universities
 Government
 Business
 Human Resources
 Social/Financial Structure
 Community Resources
 Infrastructure
43
(6)
Interviews: Location
Matthew Porter,
St. Louis, MO
Csaba Zajdó,
Debrecen,
Hungary
Akom
Thongloy,
Bangkok,
Thailand
Pros
Moderate wages;
Low cost of living;
Family environment
Cheap labor force; Center of
Huge opportunities; Business;
Globalized market
Close to
customers
Cons
Conservative money
Highly competitive Highly
because of low start competitive
up costs
44
Perfect Timing


MobileStar’s portable data
network failure
Interviews:



Matthew Porter, Contegix –
fate led to good timing
Csaba Zajdó, WebShopExperts – Cool e-commerce,
everyone is in the hype of
internet
Akom Thongloy, Extreme
Solution – Initial customers
encourage to start own
company
45
(15)
Now is the time!

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Sales figures for tech leaders, like Microsoft
and Intel are up
Stock prices are up
Venture capital investment increase 8% in 2004, and
similarly in 2005 and 2006
Amazing stories like that of Google show that
companies are making a come back from the dotcom burst
46
(20)
Acting as CEO

(2)
According to Mark
Henricks in
Entrepreneur
Magazine, it may be
best to demote yourself
and place someone
with experience in your
company’s top position
47
Role of Entrepreneurial CEO
The remaining 12% is devoted to “Playing” activities including negotiating, technical grasp
of firm, monitoring employees, and contacting suppliers, customers and other related parties.
48
(3)
Interviews: Acting as CEO



Matthew Porter, Contegix: “I don’t have an MBA,
but I know when to shut up and listen to what
customers want and balance that with our core
competencies.”
Csaba Zajdó, WebShop-Experts:
“Marketing and management - that's the two main
parts where I concentrate my efforts.”
Akom Thongloy, Extreme Solution: “Empowering
employees is the way to keep them with the
company”
49
Importance of Education
1. Dropouts: $131.36 Billion
*Bill Gates Microsoft 56 Billion
*Paul Allen Microsoft 18 Billion
*Larry Ellison Oracle 21.5 Billion
*Steve Jobs Apple 20 Billion
*Michael Dell Dell 15.8 Billion
*Mark Zuckerberg Facebook 1 Billion (2006 rejected buyout offer)
*Kevin Rose Digg 60 Million+ (Business Week August, 2006)
2. Stanford University: $38.9 Billion
*Larry Page Google 16.6 Billion
*Sergey Brin Google 16.6 Billion
*David Filo Yahoo $3 Billion
*Jerry Yang Yahoo 2.2 Billion
*Reid Hoffman Linkedin 500 Million (Digg, Technorati, Facebook; original PayPal board
member)
3. Tufts University: $10.2 Billion
4. Princeton University: $3.6 Billion
5. University of Illinois at Urbana-Champaign: $600 Million
6. Indiana University of Pennsylvania: $500 Million
7. Claremont Colleges: $30 Million
50
(4)
Interviews: Education

Matthew Porter, Contegix: BS, Computer Science


Csaba Zajdó, WebShop-Experts: MSc in Business
Administration and ongoing MSc studies in ProgrammingMathematics


Education was crucial. Not because of textbook knowledge, but
learning how to think (develop professionalism and views).
Learned the basics of most of the important fields
Akom Thongloy, Extreme Solution: BE, Electronics

Important to get degree, because it gave him credibility in the eyes of
his customers.
51
Do You Feel “Cool”?

David Margulius of InfoWorld said in a recent article that
“Entrepreneurship has become cool again, if not
obligatory, for IT.”

Interviews:

(5)
Matt Porter, Contegix

No need for “Rockstar CEOs”

Tells people, “I work for Contegix”, not “I own it!”
Csaba Zajdó, WebShop-Experts

It is rather “uncool” in Hungary

Usual for everyone, who can make a website to make his
own company, and start earning "big money"
Akom Thongloy, Extreme Solution

Feeling more proud than cool
52
Guess the Entrepreneur
Larry Ellison,
Oracle
53
Objectives





Understand the evolving definition of an
entrepreneur
Learn about the characteristics and demographics of
entrepreneurs
Meet real entrepreneurs from around the globe
Examine the large amount of research that has been
conducted on entrepreneurs and compare it to the
entrepreneurs we interviewed
Find out if you have what it takes
54
Marriott School Entrepreneurial Test

Audience results?

If you scored +35 or more, you have everything going for you. You ought to achieve
spectacular entrepreneurial success (barring acts of God or other variables beyond your
control).
lf you scored +15 to +34, your background, skills and talents give you excellent chances for
success in your own business. You should go far.
If you scored 0 to +15, you have a head start of ability and/or experience in running a
business and ought to be successful in opening an enterprise of your own if you apply
yourself and learn the necessary skills to make it happen.
If you scores 0 to -15, you might be able to make a go of it if you ventured on your own, but
you would have to work extra hard to compensate for a lack of built-in advantages and skills
that give others a leg up in beginning their own business.
If you scored -15 to -43, your talents probably lie elsewhere. You ought to consider whether
building your own business is what you really want to do, because you may find yourself
swimming against the tide if you make the attempt. Another work arrangement—working
for a company or for someone else, or developing a career in a profession or an area of
technical expertise—may be far more congenial to you and allow you to enjoy a lifestyle
55
appropriate to your abilities and interests.




(14)
Myers Briggs Type Indicator




(16)
Examines preferred styles of perception and judgment
Entrepreneurs are more intuitive, thinking and
perceptive
Managers are more sensing, feeling, and judging
http://www.funeducation.com/products/testmaster/
56
Suggestions for Aspiring Entrepreneurs

Matthew Porter, Contegix:



Pay attention to the market, but don’t allow it to be
your sole indicator
Do an internship while you are a student to gain
experience
Understand what you are getting into – mentally,
financially, and intellectually
57
Suggestions for Aspiring Entrepreneurs

Csaba Zajdó, WebShop-Experts


Learn marketing and management
Maybe get some experience somewhere first. He
didn't have any, and sometimes he feels that maybe it
wouldn't have hurt being employed first. But he has
got over his inexperienced phase successfully, so it
does not really matter any more
58
Suggestions for Aspiring Entrepreneurs

Akom Thongloy, Extreme Solution:
 Know
the direction of your company
 Be able to estimate the market share and competitors
 Understand the customer demand
59
Objectives





Understand the evolving definition of an
entrepreneur
Learn about the characteristics and demographics of
entrepreneurs
Meet real entrepreneurs from around the globe
Examine the large amount of research that has been
conducted on entrepreneurs and the entrepreneurs we
interviewed
Find out if you have what it takes
60
Conclusion



Research on entrepreneurs offers various
conclusions
Location of entrepreneur also affects the
business environment
Don’t be afraid to start your own business!
61
62
References
1.
2.
3.
4.
5.
6.
7.
Microsoft Small Business Center
http://www.microsoft.com/smallbusiness/resources/expert/strauss102005.mspx
Henricks, Mark. “Bringing in a CEO.” Entrepreneur Magazine March 2007.
Fried, Vance H. et al. “The Entrepreneurial CEO as "Coach/Player.”’ The
Journal of Private Equity. London: Summer 2006. Vol. 9, Iss. 3; pg. 35, 8 pgs.
New York Habit Blog. “The Top Ten Colleges of Today’s Richest Tech
Entrepreneurs.” http://richohanian.wordpress.com/2007/04/11/the-top-10college-degrees-of-todays-richest-tech-entrepreneurs/
Margulius, David L. “Entrepreneurial IT.” InfoWorld 28 (2006): 21-27.
West, G. Page III and Charles E. Bamford. “Creating a Technology-Based
Entrepreneurial Economy: A Resource Based Theory Perspective.” Journal of
Technology Transfer 30 (2005): 433-451.
Yarzebinski, Joseph A. “Understanding and Encouraging the Entrepreneur.”
Economic Development Review 22 (1992).
63
References Continued
8.
9.
10.
11.
12.
13.
14.
15.
16.
Hatch, Jim, and Zweig, Jeffrey, “What is the stuff of an entrepreneur?” Ivey
Business Journal, Nov/Dec 2000, Vol. 65, Issue 2, pp. 68-72.
“New Survey Shows Two-Thirds of Entrepreneurs Born not Bred…” PR
Newswire US, 2006.
http://www.neu.edu/sote/Documents/NEU%20STE%20Born%20v%20%20Bred
%20Survey%20Results.pdf?u=618982550144 viewed September 19, 2007.
http://www.woopidoo.com/articles/geimure/entrepreneur-article.htm, viewed
October 3, 2007.
Garrett, Sheryl. “The True Entrepreneur.” Financial Planning. May 2006. pp.
115-116.
http://en.wikipedia.org/wiki/entrepreneur viewed September 27, 2007.
http://marriottschool.byu.edu/cfe/startingout/test.cfm viewed October 3, 2007.
Umesh, U.N. et al. “Creating Successful Entrepreneurial Ventures in IT.”
Communications of the ACM 48 (2005):82-87.
Caird, Sally P. “What Do Psychological Tests Suggest About Entrepreneurs?”
Journal of Managerial Psychology 8 (1993): 11-20.
64
References Continued
17.
18.
19.
20.
21.
22.
23.
24.
25.
Weber, Paull and Schaper, Michael. “Understanding the Gray Entrepreneur.” Journal of
Enterprising Culture 12 (2004): 147-164.
Hayton, James C. et al. “National Culture and Entrepreneurship: A Review of Behavioral
Research.” Entrepreneurship Theory and Practice (2002): 33-52.
Robb, Alicia M. “Entrepreneurial Performance by Women and Minorities: The Case of New
Firms.” Journal of Developmental Entrepreneurship 7 (2002): 383-396.
Umesh, U.N. et al. “Current Issues Faced by Technology Entrepreneurs.” Communications
of the ACM 50 (2007): 60-66.
Interview with Matthew Porter, CEO and founder Contegix. Interviewed September 18,
2007. St. Louis, MO.
Interview with Akom Thongloy, CEO and founder Extreme Solution. Interviewed October
20, 2007.
www.extremesolution.co.th
Long, Wayne. “The Meaning of Entrepreneurship.” American Journal of Small Business
VIII (1983).
Interview with Csaba Zajdó, CEO and founder of Webshop-Experts. Interviewed October
24, 2007. Debrecen, Hungary
65