Entrepreneurship
HEJ / LEJ
Center for Entrepreneurial Development
IBA, Karachi
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Contents
• Entrepreneurship
• Entrepreneurial Requirements
• Impact of Entrepreneurship
• Entrepreneurship and Innovation
• Entrepreneruial Process
• Various Case Studies
• Entrepreneurship + (PLUS)
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Entrepreneurship Defined
• Entrepreneurship—a way of thinking,
reasoning, and acting that is opportunity
obsessed, holistic in approach, and
leadership balanced for the purpose of value
creation and capture.
(This definition of entrepreneurship has evolved over the past three decades from research
by Jeffry A. Timmons at Babson College and the Harvard Business School and has
recently been enhanced by Stephen Spinelli, Jr. former Vice Provost for Entrepreneurship
and Global Management at Babson College, and current President of Philadelphia
University).
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Entrepreneurship Results
• Value:
• Creation
• Enhancement
• Renewal
• For:
• Owners
• Stakeholders
• All Participants
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Entrepreneurship is NOT just “StartUps Only”
• It includes companies and organizations
• All types
• At all stages
• Can occur and fail to occur
• In old and new firms
• Small and large firms
• Fast and slow growing firms
• Private, not-for-profit, and public sectors
• All geographic points
• All stages of a nation’s development
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Entrepreneurial Requirements
• Willingness to take risks
• Personal
• Financial
• Calculated
• Shift the odds of success
• Balancing risks with rewards
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a mindless activist, a war lover, felt driven to
prove manhood by confrontation"
Impossible to
damage, injure, or
wound
inclination of an individual to initiate behavior
without adequate forethought as to the
consequences of their actions, acting on the
spur of the moment
tend to:
-believe that you don't need anything from anyone
-trust no one but yourself
-find it hard to feel close to anyone, even wife and children
-Low Self Esteem
believe in full equality before the law
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Entrepreneurship Flattens the World
• Significant impact on the cultural and economic
landscape
• Exploding in China, India,, and the former Soviet
bloc
• Adoption of the entrepreneurial mind-set is growing
exponentially larger and faster
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Innovation
Small entrepreneurial firms (since WWII) are:
• Responsible for half of all innovation
• Credited with 95 percent of all radical innovation
• Led to the creation of major new inventions and technologies
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Philanthropy and Leadership
Successful entrepreneurs give back to the community
• Colleges and universities
• New buildings, classrooms, athletic facilities, and
endowed professorships
• The largest gifts and the greatest proportion of donors
to college capital campaigns
• Hospitals, museums, orchestras, and schools
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Achieving Entrepreneurial Greatness
Three core principles of Marion Labs and the Kauffman
Foundation:
1. Treat others as you would want to be treated
2. Share the wealth that is created with all those who have
contributed to it at all levels
3. Give back to the community
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Ewing Marion Kauffman of Marion
Laboratories, Inc.:
“Live what you talk, make your actions match your
words. You must live what you preach and do it
right and do it often. Day after day.”
“As an entrepreneur, you really need to develop a code of
ethics, a code of relationships with your people, because
it’s the people who come and join you. They have dreams
of their own. You have your dream of the company. They
must mesh somewhat.”
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Building an Entrepreneurial Society
• The poor get richer
• Equal opportunities (not equal incomes) are created
• Economic mobility increases
• Social mobility increases
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The Entrepreneurial
Process
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• It is opportunity driven
• It is driven by a lead entrepreneur
and an entrepreneurial team
• It is resource parsimonious and creative
• It depends on the fit & balance among
these
• It is integrated and holistic
• It is sustainable
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ILinc: The case study of a startup
Technology Entrepreneurship
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Dilemma
Fall 1993
Chance Meeting
March 1994
Join Corporate World
Pros
+Established
+ Less Risky
+ Money
+ Considered
hot property
Cons
-Cog of a wheel
-Small part of a
large corporation
Mark Bernstein
BA Econ
Computer related sales Experience
Proceed with the new venture
Degerhan Usluel
BE EE
Chief Designer / programmer
(circuit design company)
Founded USIMEK Software
consulting
Pros
+High returns
+ Self
Actualization
Cons
-Very Risky
-Career Prospects ?
-Low earnings
initially
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Fall 1993
Chance Meeting
Idea ?
Pain- Need
Distance Learning
Short term retention 20% hearing, 40%
hear and see, 75% hear, see and do
JIT (Just in Time training)
Product
Software Environment
Multimedia + Communication
Distributed virtual class room
Will provide companies a competitive
advantage
Market (9.3 million biz in US)
27,000 firms employ over 500 employees
Primary: Fortune 1000 Firms
Secondary: Other US firms
Tertiary: International firms
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Chance Meeting
Fall 1993
Chance Meeting
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Meeting with the
Entrepreneurship
Professor (Rice)
Meeting with Prof Wilson
PhD Physics
Expert in Multimedia
AT&T, IBM Scholar
Basement
meetings
Develop a sound Biz Plan
Strong team of advisors
Understand Capital requirements
Recruit Jack Wilson
Take the course on Entrepreneurship
Rule of thumb
• Expenses twice your estimate
• Revenues will be half
• It will take twice as long
Team
Wilson (CEO)
PhD Physics
AT&T, IBM Scholar
Mark Bernstein (COO)
Degerhan Usluel (CTO)
BE EE
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Basement meetings
Refinement of ideas
Consists of
Business Plan
Final Idea
Combine Multimedia
with Distance Learning
Investors
Bankers
Advisors
Entrepreneur himself
• Understand capital
requirements
For the team
Regulatory approvals
Communication tool
Executive Summary
Environment
Management Team
The Product
Budget Required
Marketing Strategy
Entry Strategy
Financial Plan
Risks
Exit Strategy
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Evaluation of the Biz Plan
Strengths
Weaknesses
• Technical Expertise (Wilson
and Usluel)
• Sales Skill (Bernstein)
• International reputation
and network of Wilson
• Compatibility of team
• Vision of the opportunity
• Some start up experience
• Marketing Expertise
• Financial management and
fund raising experience
• Project management of
commercial development
• Closing large deals with
large companies
• General management of a
fast growing firm in a start
up mode
• Customer service in
commercial mode for
Fortune 1000 companies.
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