Innovation
and
Entrepreneurship
Poonpong Boonbrahm
bpoonpon@wu.ac.th
Entrepreneurs:
The Driving Force Behind Small
Businesses
Lecture #1
Upon completion of this chapter, you will be
able to:
•Define the role of the entrepreneur in business-in
the United States and across the world (1)
•Describe the entrepreneurial profile and evaluate
your potential as an entrepreneur.
•Describe the benefits and drawbacks of
entrepreneurship. (2)
• Explain the forces that are driving the growth of
entrepreneurship. (3)
Upon completion of this chapter, you will
be able to: (Cont.)
•Explain the cultural diversity of entrepreneurship.
•Describe the important role small businesses play in
our nation's economy. (4)
•Describe the nine deadly mistakes of
entrepreneurship. (5)
•Put failure into proper perspective. (6)
•Explain how entrepreneurs can avoid becoming
another failure statistic. (7)
?
Bill Gate
Mark
Zuckerberg
Larry Page
Surgey Brin
George
Mike Dell
Lucas
Larry Ellison
Steve Jobs
Jeff Besos
Dr. Stephen
Wolfram
?
Elon Musk พญ. นลิณี ไพบูลย์
Bill
Heinecke
Jack Dosey
Top 10 Tech Billionaires
http://luxpresso.com/photogallery-lifestyle/top-10-techbillionaires/12196
Bill Gates:
William Henry Gates, popularly known
as Bill Gates, is the co-founder of
Microsoft, the world's biggest
software company by sales. America's
richest man-and its greatest living
philanthropist-owns about 6 per cent
of the technology giant, a stake that
now represents about a quarter of his
overall wealth. The rest of his fortune
lies in Cascade Investment, Gates's
private investment vehicle.
Estimated net worth: $79.4 billion
Jeff Bezos: Since launching his online bookseller in 1994,
Amazon's founder and chief executive has turned the
company into the biggest retailer on the web, with sales of
more than $64 billion. In 2007, Bezos introduced the Kindle
electron book reader, which is now Amazon's top-selling
item. The company is also a leading provider of cloud
computer services.
Estimated net worth: $59.1 billion
Larry Ellison
Joseph Ellison's (Larry Ellison) fortune
comes from his 22.5 percent stake in
Oracle, the world's third-largest software
company by sales. He owns a 49 per
cent stake in software maker NetSuite,
as well an interest in LeapFrog
Enterprises.
He also probably has at least $4 billion
in cash and other assets, including
numerous real estate holdings.
Estimated net worth: $49 billion
Mark Zuckerberg:
Zuckerberg is a co-founder and the chief executive of
Facebook, the world's largest social media site. Launched in
2004, the site has 845 million monthly active users-about 12
per cent of the world's population.
The company is poised for a public offering in the spring, an
event that will likely add billions to Zuckerberg's net worth.
Estimated net worth: $46 billion
Larry Page:
Larry Page co-founded Google (with
Sergey Brin) and serves as its chief
executive, a title he took in 2011.
Together, Brin and Page own about 16
per cent of the search giant (recent
market cap: $200 billion).
Page also oversees an investment
portfolio, having sold more than $3 billion
worth of Google stock since it went public
in 2004.
Estimated net worth: $38.4 billion
Sergey Brin:
Sergey Brin: With Google co-founder Larry Page, Sergey
Brin owns about 16 per cent of the search giant (recent
market cap: $200 billion). Brin, who stepped down as
president of technology in 2011 to direct special projects,
also oversees an investment portfolio, having sold more than
$3 billion worth of Google stock since going public in 2004.
Estimated net worth: $37.6 billion
Steve Ballmer:
Steve Ballmer: Steve became chief executive of Microsoft
when Bill Gates stepped down from day-to-day management
in January 2000. Since then, the exuberant Microsoft chief
has struggled to keep the world's biggest software maker
relevant in the age of Apple.
Microsoft stock, which hit its peak only days before Gates
stepped down, has languished ever since.
Estimated net worth: $25 billion
Michael Dell
Michael Dell: He is the founder and chief executive of Dell,
the world's third-biggest computer hardware manufacturer.
He owns about 15 perc ent of the Round Rock (Tex.)
company.
Through his New York investment firm, MSD Capital, Dell also
controls a $10 billion portfolio that maintains investments in a
number of different industries
Estimated net worth: $19.7 billion
Paul Allen:
Paul Allen: He co-founded Microsoft
with Bill Gates, creating the most
successful company of the personal
computer era. Allen left the company
in 1983, proceeding to diversify, with
mixed success, into entertainment,
cable companies, real estate, private
equity, and energy plays. He is now
pursuing space travel and brain
research.
Estimated net worth: $18.1 billion
Azim Premji:
Azim Premji: He owns 79 per cent of Wipro, India's thirdlargest software exporter. Based in Bangalore, his
technology company employs more than 100,000 people and
has annual revenue of more than $7.2 billion. Premji also
owns a private equity fund, PremjiInvest, which manages his
$1 billion personal portfolio.
Estimated net worth: $15.1 billion
25 most powerful people in business
Entrpreneur or
innovator or both
??
The World of the Entrepreneur
z Every year in the U.S., entrepreneurs
launch 850,000 new businesses.
z Entrepreneurial spirit - the most
significant economic development in
recent history.
z GEM** study: 11.3 percent of adult
population in the U.S. is actively involved
in trying to start a new business.
**GEM: Global Entrepreneurship Monitor
Entrepreneurial Activity Across the Globe
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
TEA Index
Global TEA
Average
Argentina
Australia
Belgium
Brazil
Canada
Croatia
Denmark
Ecuador
Finland
France
Germany
Greece
Hong
Hungary
Iceland
Ireland
Israel
Italy
Japan
Netherlan
New
Norway
Peru
Singapor
Slovenia
South
Spain
Sweden
United
United
Total Entrepreneurial
Activity (TEA) Index
Persons per 100 Adults, 18-64 Years Old Engaged in Entrepreneurial Activity
Country
Source: 2004 Global Entrepreneurship Monitor.
The World of the Entrepreneur
z GEM study
y Globally 9.4 percent of adults are actively
engaged in trying to start a business.
y Men are twice as likely as women to start a
business (exactly the opposite trend in the
U.S., however).
y Nearly one-third of global entrepreneurs are
between the ages of 25 and 44.
What Is an Entrepreneur?
One who creates a new business in the face of risk and
uncertainty for the purpose of achieving profit and
growth by identifying opportunities and assembling the
necessary resources to capitalize on them.
Characteristics of Entrepreneurs
z
z
z
z
z
z
z
z
Desire for responsibility
Preference for moderate risk – risk eliminators
Confidence in their ability to succeed
Desire for immediate feedback
High level of energy
Future orientation – serial entrepreneurs
Skilled at organizing
Value achievement over money
zHigh level of energy
http://www.irobot.com/sp.c
fm?pageid=150
Colin Angle
Angle’s leadership and vision for the future of robots have been
recognized with numerous professional awards. He has been named
a Mass High Tech All-Star, one of Fortune Small Business Magazine’s
Best Bosses and New England Entrepreneur of the Year by Ernst
and Young with iRobot co-founder Helen Greiner. Angle sits on the
board of directors of Axon Labs, Inc. and is active on the Robotics &
Intelligent Machines (RIM) advisory board. He holds a bachelor’s
degree in electrical engineering and a master’s degree in computer
science, both from MIT.
Under Helen Greiner’s leadership, iRobot is at the forefront of the
growing robot industry, delivering home and government robots
that are making a difference. A robot industry pioneer with more
than two decades of experience, Greiner has helped to enhance
public acceptance of robots as one of today’s most important
emerging technologies.
Helen Greiner
Entrepreneurship
z One characteristic of entrepreneurs stands
out:
Diversity!
z Anyone – regardless of age, race, gender,
color, national origin, or any other
characteristic – can become an entrepreneur
(although not everyone should).
Competencies That Are Characteristic of
Successful Entrepreneurs:
Proactivity
1. Initiative/ does things before being asked or
forced by events
2. Assertiveness/ Confronts problems with
other directly. Tell other what they have to do.
(2)
Competencies That Are Characteristic of
Successful Entrepreneurs:
Achievement Orientation
3. See and acts on opportunities/ seize
unusual opportunities to start new business
4. Efficiency Orientation/find the way to do
things faster and less cost.
5. Concern for high quality work
6. Systematic Planning
7. Monitoring
Competencies That Are Characteristic of
Successful Entrepreneurs:
Commitment to others
8. Commitment to work
9. Recognizes the importance of
fundamental business relationship
(2)
Competencies That Are Characteristic of
Successful Entrepreneurs:
Others
10. High degree of commitment: total
commitment.
11. Tolerance for ambiguilty
12. Flexibility. HP earlier producs:- devices to
make urinals flush automatically, ahock machine
to make people lost weight.
(2)
The Differences Between Managers and
Entrepreneurs
Conventional manager
Entrepreneur
•Very conscious of rules
and taboos.
•Views rules as guidelines only.
•Sensitive to the future
and willing to postpone
rewards.
•Has a powerful need for
acceptance
•Concept of the future based
on personal fantasy. Low
threshold of frustration
•Ambivalent toward control,
success and responsibility.
•Impatient with discussions and
•Able to identify problems theories. Is prone to action and
in any course of action.
seems impulsive.
Makes detailed plans.
(2)
Benefits of Entrepreneurship
The opportunity to:
z Create your own destiny
z Make a difference
z Reach your full potential
z Reap impressive profits
z Contribute to society and to be
recognized for your efforts
z Do what you enjoy and to have fun at it
Drawbacks of Entrepreneurship
z Uncertainty of income
z Risk of losing your entire investment
z Long hours and hard work
Small Business Owners' Work Week
Number of Hours Worked per Week
Less than 30 hours
11%
More than 60 hours
17%
30 to 40 hours
24%
51 to 60 hours
20%
41 to 50 hours
28%
Source: Adapted from Dun & Bradstreet 21st Annual Small Business Survey Summary Report, 2002, p. 35.
Drawbacks of Entrepreneurship
z Uncertainty of income
z Risk of losing your entire investment
z Long hours and hard work

Lower quality of life until the business gets
established
Entrepreneurs' Age at Business Formation
55 - 64
6.7%
Over 65
1.0%
18 - 24
12.0%
45 - 54
17.4%
25 - 34
32.3%
35 - 44
30.6%
Source: 2004 Global Entrepreneurship Monitor.
Drawbacks of Entrepreneurship
z
z
z
z



Uncertainty of income
Risk of losing your entire investment
Long hours and hard work
Lower quality of life until the business gets
established
High levels of stress
Complete responsibility
Discouragement
Feeding the
Entrepreneurial Fire
z
z
z
z
z
z
z
Entrepreneurs as heroes
Entrepreneurial education
Demographic and economic factors
Shift to a service economy
Technological advancements
Independent lifestyle
E-commerce and the World Wide
Web
Source: eMarketer, 2005.
Feeding the
Entrepreneurial Fire
z
z
z
z
z
z
Entrepreneurs as heroes
Entrepreneurial education
Demographic and economic factors
Shift to a service economy
Technological advancements
Independent lifestyles

International opportunities
z E-commerce and the World Wide Web
The Cultural Diversity of
Entrepreneurship
z Young entrepreneurs
z Women entrepreneurs
Ages of Entrepreneurs
Young and filthy rich: Top 10 billionaires under 35
1. Mark Zuckerberg, $41.6 billion, Facebook
2. Dustin Moskovitz, $9.3 billion, Asana (ex. Facebook)
3. Yang Huiyan, $5.9 billion, Country Garden Holdings
4. Eduardo Saverin, $5.3 billion, 99(ex. Facebook)
5. Scott Duncan, $5 billion, Enterprise Product Partners
6. Elizabeth Holmes, $4.5 billion, Theranos
7. Nathan Blecharczyk, $3 billion, Airbnb
8. Brian Chesky, $3 billion, Airbnb
9. Joe Gebbia, $3 billion, Airbnb
10. Thomas Persson, $2.7 billion, Hennes & Mauritz
The smash success of Airbnb puts three names on the
list. Co-founders Nathan Blecharczyk, Brian Chesky,
and Joe Gebbia each boast personal fortunes of about
$3 billion thanks to the short-term apartment rentals
site. The company, created in 2008, challenges the
traditional hotel market and now operates in more
than 34,000 cities around the world
America's youngest self-made female billionaire, 31-year old Elizabeth Holmes,
generated her $4.5 billion fortune through biotech Theranos. And she didn't even
need a college degree.
Holmes left Stanford University at 19 with a plan to start her own company.
Theranos, founded in 2003, has taken on the massive laboratory-diagnostic
industry by performing fast and less invasive blood tests, and has the potential to
change health care for millions of Americans.
Snapchat co-creator Evan Spiegel. At just 25 years of age he's the
youngest person in the top 20, ranking 15th place with a $1.9 billion
fortune. His popular messaging app has been preparing for an
IPO after it rejected a $3 billion acquisition offer from Facebook in
2013
Women Entrepreneur
Thai Entrepreneur
Gifferine
iberry
S&P
Dr. Nalinee Paiboon
คุณปลา อัจฉรา บุรารักษ์
คุณ ภัทรา ศิลาอ่อน
Why Women Start Businesses
Frustrated with Other reasons
7%
"glass ceiling" at
big companies
23%
Saw a market
opportunity and
decided to pursue
it
24%
Source: Center for Women’s Business Research, 2004.
Gain control over
my schedule
46%
The Cultural Diversity of
Entrepreneurship
z
z
z
z
z
Young entrepreneurs
Women entrepreneurs
Minority-owned enterprises
Immigrant entrepreneurs
Part-time entrepreneurs
The Cultural Diversity of
Entrepreneurship
z
z
z
z
z
Home-based businesses
Family businesses
Copreneurs
Corporate castoffs
Corporate dropouts
Small Business by Industry
Finance
8.0%
Other
7.3%
Manufacturing
5.8%
Service
39.2%
Wholesale
7.4%
Construction
11.8%
Retail
20.5%
Source: U.S. Small Business Administration, 2005.
Daymond John
The Growth of Home-Based Businesses
35.0
30.0
Millions
25.0
20.0
15.0
7.6 7.7
11.7 12.1 12.7
10.5
9.4
13.1
15.8
10.0
Part-time Self-Employed
Workers
Primary Self-Employed
Workers
12.8 14.0 14.9
12.4
12.1
11.8
11.2
5.0 9.5 10.1
0.0
1988 1989 1990 1991 1992 1993 1994 1995 1996
(5)
Small Businesses...
z Make up 99.7 percent of all
businesses in the U.S.
z Employ 51 percent of the nation’s
private sector workforce.
z Create more jobs than big
businesses.
z Are leaders in offering training and
advancement opportunities to
workers.
Small Businesses...
z Produce 51 percent of the nation’s
private GDP.
z Account for 47 percent of business
sales.
z Create 13X more innovations per
employee than large companies.
y Zipper, FM radio, laser, air
conditioning, escalator, light bulb,
personal computer, automatic
transmission, and many more!
Small Business by Industry
Financial
8.0%
Other
7.3%
Services
39.2%
Construction
11.8%
Manufacturing
5.8%
Wholesale
7.4%
Retail
20.5%
(6)
Small Business Survival Rate
% of Small Firms Surviving
100%
100%
90%
81%
80%
70%
65%
60%
54%
50%
46%
40%
40%
36%
30%
32%
29%
27%
25%
20%
10%
0%
New
1
2
3
4
5
6
# of Years in Business
Source: NFIB Business Policy Guide, 2003, p. 16.
7
8
9
10
Ten Deadly Mistakes of
Entrepreneurship
1.
2.
3.
4.
5.
Management mistakes
Lack of experience
Poor financial control
Weak marketing efforts
Failure to develop a strategic plan
Ten Deadly Mistakes of
Entrepreneurship
6. Uncontrolled growth
7. Poor location
8. Improper inventory control
9. Incorrect pricing
10. Inability to make the “entrepreneurial
transition”
Putting Failure into Perspective
z Entrepreneurs are not paralyzed by the
prospect of failure.
z Failure – a natural part of the creative
process.
z Successful entrepreneurs learn to fail
intelligently.
Avoiding the Pitfalls of
Small Business Failure
z
z
z
z
z
Know your business in depth
Develop a solid business plan
Manage financial resources
Understand financial statements
Learn to manage people
effectively
z Keep in tune with yourself
“I had the courage to start my own business, but I
realized that it takes more than guts and a good
product or service to succeed. An entrepreneur
must also have the skills of a salesman, secretary,
bookkeeper, manager, analyst, and errand boy.
Neglect one area too long, and-zap-you’re out of
business.”
Rafael J. Gerana,
Cofounder of an Advertising Agency
(7)
Q&A