ME2062 Technology–based Entrepreneurship, 2023 Module 1: Introduction Course coordinator: Associate Professor Kristina Nyström E:mail: kristina.nystrom@indek.kth.se Phone: 08-790 95 98 Office: Lindstedsv 30 6th floor Office hours: By appointment Defining the entrepreneur Entrepreneur : “one who undertakes an enterprise” (Jean-Baptiste Say) Five views of the entrepreneur: 1) The entrepreneur is a risk taker 2) The entrepreneur is a resource allocator 3) The entrepreneur is an innovator 4) The entrepreneur is a person with a certain type of behavior or personality 5) The entrepreneur is a creator of new organizations Entrepreneur is a risk taker Knight (1921): Entrepreneur is someone who calculates and takes risks and manage uncertainties. According to Knight it is important to distinguish between risk and uncertainty: Risk: Randomness with knowable probabilities Uncertainty: Randomness with unknowable probabilities. The entrepreneur is a resource allocator Jean–Baptiste Say (1821) Entrepreneur is someone who organizes the factors of production. Mark Casson (1990) Entrepreneur coordinate and allocate scarce resources. The entrepreneur is an innovator Schumpeter (1934, 1942) The entrepreneur is “seeking out new combinations” • New good/quality of a good • New method of production • New market • New source of supply • New organization of an industry • The entrepreneur is essential in the process of industrial change and creative destruction The entrepreneur is a person with a certain type of behavior or personality Drucker (1985): The entrepreneur is: “someone that always searches for change, responds to it and exploits it as an opportunity” McClelland (1961) Characteristics of the entrepreneur are for examples, self-confidence and individual responsibility . Why are some types of people over/underrepresented among entrepreneurs? The entrepreneur is a creator of new organizations Entrepreneurship is to create new business ventures. compared to: Intrapreneurship is to act like an entrepreneur but within an existing organization (often a large firm). Factors Influencing an Entrepreneur Personal Attributes Higher internal locus of control Desire for financial success Desire to achieve self-realization Desire for recognition Joy of innovation Risk tolerance Environmental Factors • Local, regional, or national attitudes • Social and cultural pressures for or against risk taking • Access to entrepreneurial role models • Responsibilities to family and community No single type of person is best suited for entrepreneurship. Entrepreneurs come from all walks of life! 9 The Timmons model Uncertainty Entrepreneur Opportunity Fits & Gaps Business plan Uncertainty Uncertainty Resources 10 Tenets of the Timmons Model 1. The Opportunity • • • Is there a clear customer need? Is the timing right: team ready, market ready? Combine these factors with the execution of the business plan to make an idea an opportunity 2. The Lead Entrepreneur and Management Team • • • Experience within the proposed industry? Investors prefer to see a track record of driving growth and profits An ‘A’ team with a ‘B’ idea is almost always better than the opposite 3. The Resources • • • Capital, technology, equipment, and most importantly – people Low overhead, high productivity, and controlling, but not owning resources Find ways to get things done faster, cheaper or better! 11 What’s the value of entrepreneurship? • • • • Download the Kahoot! app Enter PIN! Enter your name! Ready to play! ME2062 Tech-based entrepreneurship in 2023 Course objectives By the end of the course the student should be able to: • describe and analyse how entrepreneurship in theory and practice can equip the entrepreneurial decision-making process with information about the initial stage for a new technology-based company • by means of frameworks, organise, critically evaluate and integrate relevant information to give decisive recommendations on measures in a given entrepreneurial situation • choose and use tools to identify technology related problems or needs and in such a way create a foundation for start, growth and management of technology-based companies • produce professional reports and presentations compiled through cooperation in groups • show oral and written communication skills by using convincing and factual arguments as support for justified leadership measures Course literature Main Book: Bygrave W. D. A. Zacharakis and Corbett (2020) Entrepreneurship, Fourth Edition, EMEA Edition Wiley. Examination • Preparation and active participation in modules 1 ECTS: individual Grading: Pass/Fail. • Individual Assignment 2.5 ECTS: individual Grading: A-F 30 % of the grade • Venture creation assignment 4 ECTS: group assignment Grading: A-F, 70% of the grade Preparation and active participation in modules Note: Individual preparation! • • • • Module 3: Elevator Pitch Module 4: Sustainability Module 6: Financing Module 7: Shark Tank Resource seminar: If you are unable to attend some mandatory module there is an opportunity to compensate at the resource seminar. (Same preparation as posted on CANVAS except for Module 7: Submit written feedback to team ASAP) Elevator pitch Questions: • What is the venture / product / service? • Clear explanation of the product/service. • What is the customer problem / pain you will solve (or delight)? • How is your venture / product / service unique and differentiated from other alternatives? How big is the market and how will you be able to penetrate the market? • What is the business model - how will you make money? Format: • 40-60 seconds long • Presentation April 4th! Individual assignment Content in two parts (total 2500 words): 1) Group process reflection document • How would you describe the process of working with the venture creation project? ( 1000 words) • What are the main learning outcomes of working with your team? • If you would go through this process again, what would you do differently? 2) Individual entrepreneurship essay (use the content of the course literature) (1500 words) Format: • Distributed May 2nd • Deadline May 16th Venture creation assignment Teams of 4-5 people Grading criteria venture project Grading criteria Venture Project E Present a venture idea which has some creative and original content. D All requirement s for E and at least half Present a business plan the which is largely feasible. requirement s for C. To some extent connect to relevant concepts and frameworks presented in the course. C Present a venture idea which has creative and original content. B All requireme nts for C and at Present a business least half plan which is feasible. the requireme Connect to relevant nts for A concepts and frameworks presented in the course. A Present a venture idea which has creative and original content. Present a business plan which is feasible and well augmented for. At an advanced level connect to relevant concepts and frameworks presented in the course. Provides an advanced level critical discussion and analysis. Provide a Present a well-structured and well-written comprehensive critical The discussion and assignme venture project report. analysis nt is The assignment is delivered before deadline. delivered Present a well- before structured venture deadline project report. Venture creation assignment Assignment parts: • Forming your team: April 18th • Venture investment pitch video: Submission (May 4th) • Shark tank: Show and Sharks (May 9th) th • Venture project paper: Final paper, submissionstMay 25 presentation and acting as discussant (May 31 or June st 1 presentation) Format venture project paper: • Deadline May 24th • Max 7,000 words + 5 appendix (including 3 mandatory parts: Business model canvas, DT empathize, Sustainability assessment)
