Title: MBAX 6100 Entrepreneurship
1MBAX 6100Entrepreneurship Small Business
Management
- Frank MoyesLeeds College of Business
- University of ColoradoBoulder, Colorado
- Progress depends upon unreasonable men.
- GB Shaw
2Todays Agenda
- Entrepreneurial Manager
- Case Crunch
- Entrepreneur Interview
- Tonight 600 Business Plan Competition Whitemyer
- NREL trip Feb 2nd at 200
3Entrepreneur Interview
- Choose person in an area of interest
- 3 years in business, 5 employees
- See website for assignment questionnaire
- Visit their office or facility
- Observe/talk to customers
- In depth interview get beyond the hype and
self-promotion - Take one hour after interview to draw conclusions
4Interview Paper
- Write a 6-page 1.5 spaced paper
- Describes the entrepreneurs background,
motivations for starting the venture, challenges
in growing the venture - Evaluates the value proposition (target market,
product/service description and unique benefit) - Conclusion what makes the company successful
(or not)? What are your recommendations for
improvement? - Discuss how the findings of the interview apply
or are meaningful to you. What have you learned
about your own potential to be an entrepreneur? - Objective is to drill down into the company and
thoroughly understand the entrepreneur and how
s/he does business
5Entrepreneurial Manager
- Characteristics traits
- Different types of entrepreneurs
- Entrepreneurs vs. small business
6Entrepreneurial Characteristics
0
- Motivated by achievement
- Innovation creativity
- Internal locus of control
- Risk-taking
- Tolerance for ambiguity
- Sense of independence
- Passion
- Traits of entrepreneurs are closest to juvenile
delinquents.
7What Traits Should Be Avoided?
0
- Invulnerability
- Being Macho
- Being Authoritarian
- Impulsivity
- Outer control
- Perfectionist
- Know it all
- Counterdepency
Timmons New Venture Creation
8What Assets are Required?
0
- Network
- Supporting spouse
- Financial resources
- Optimism
9What Experience Is Required?
- Accounting
- Recruiting hiring
- Selling
- Financial projections
- Cash flow management
- Naming a product
- Choosing office decor
10Do You Have the Right Stuff?
0
- Are you a self starter?
- Can you go 6 months to 2 years without getting
paid? - Are you willing to give up vacations, weekends
and evenings? - Are you a decision maker?
- Are you a people person?
- Do you handle rejection well?
- Do you think will on your feet?
- Do you like to sell?
- Do you handle crisis well?
- Would you be able to fire someone?
- Do you want total responsibility and
accountability?
MD Csordos, 35 Business Lessons for Entrepreneurs
11Types of Entrepreneurs
0
- Personal achiever
- Super-salesperson
- Real manager
- Expert Idea Generator
JB Minor, Four Routes to Entrepreneurial Success
12Personal Achiever (classic entrepreneur)
- Need for high achievement
- Need for performance feedback
- Desire to plan and set goals
- Strong individual initiative
- Strong personal commitment
- Internal locus of control
JB Minor, Four Routes to Entrepreneurial Success
13Super-Salesperson (caters to needs of customers)
- Capacity to empathize
- Social interaction and relationships are
important - Need to have strong positive relationships with
others - Sales force is critical
- Background less education, more experience
JB Minor, Four Routes to Entrepreneurial Success
14Real Manager (grow the venture)
- Desire to be corporate leader
- Desire to compete
- Decisive
- Desire of power
- Desire to stand out in a crowd
JB Minor, Four Routes to Entrepreneurial Success
15Expert Idea Generator (expertise creativity
innovator)
0
- Desire to innovate
- Love of ideas, curious
- Belief that new products are crucial
- Intelligence is the competitive advantage
- Desire to avoid taking risks
JB Minor, Four Routes to Entrepreneurial Success
16Types of Entrepreneurs
0
- Personal Achiever
- Super-Salesperson
- Real Manager
- Expert Idea Generator
- Are there others?
17Different Methods Used to Build Ventures
- Independent innovators
- Pattern multipliers expand concept through
franchise or chains - Speculator buy and leverage, e.g. land
- Consolidator industry roll up
- Acquirers
- Arbitrageur buy low and sell high
K Vesper, New Venture Strategies
180
Entrepreneurship Myths Realities
19Entrepreneurs Are Born?
- 100s of studies no entrepreneurial prototype
- Environment, family and self-development are key
- Why are some countries more entrepreneurial than
others? - 50,000 chunks
There is no E gene.
20Entrepreneurs are Gamblers?
0
- May be the most risk adverse business people
- Take calculated risks, after careful analysis.
Try to - Minimize
- Share risks (OPRs)
Entrepreneurs play poker, not slot machines.
21Entrepreneurs Want to Be Their Own Boss?
0
- But, you serve many masters
- Customers
- Suppliers
- Investors bankers
- Partners
- Employees and their families
- Community
- Double-edged sword. Yes you can make your own
decisions, but there is no-one telling you what
to do.
22Entrepreneurs Are Motivated by Money?
0
- Survey of 500 male entrepreneurs
- Money 6th out of 10 reasons
- Survey of 113 female entrepreneurs
- Money 11th out of 16 reasons
- Desire to achieve, make a difference
- But, they do like money. Why?
Money is a way to keep score
23Why Start a Business?
- Money
- Job security
- Lifestyle
- Power
- Health
- Be your own boss
- Joy of Winning
- Fame
- Values Beliefs
- Get fired
24Entrepreneurs are Lone Wolves?
- Stereotype inventor working in his lab
- Must have a quality management team
- Visionary individual is the key
- Entrepreneur cant do everything
- Modify and adapt the vision
- Its fun having people around you that you like
Lone wolf cant get funding
Entrepreneurs travel in packs
25Entrepreneurship Requires Lots of Money?
- Opportunity driven, not resource driven
- Leverage resources other peoples (OPRs)
- Too much money
- Lack of discipline
- Impulse spending
Businesses do not fail for lack of money
26Entrepreneurs are Lucky
Yes!
27Just Do It
0
Millions of people have an idea, but unless
they do something with it, their ideas arent
worth a damn. There are a lot of quacks and kooks
out there who claim they invented the Weed Eater,
and I dont doubt that there are some people who
genuinely thought of this idea--but what did they
do with it? Nothing. What do they deserve?
Nothing.
George C. Ballas,
inventor of Weed Eater
28Next Weeks Class
- Entry Strategy
- Read BZ-11
- Case ICEDELIGHTS
- Feb 2 at 200pm NREL visit
29Traits
- Misfits traits of entrepreneurs are closest to
juvenile delinquents - I have discovered that all human evil comes from
this, mans being unable to sit still in a room.
Blaise Pascal, philosopher and mathematician - Progress depends upon unreasonable men. GB Shaw
- Entrepreneurs typically work half days. 12 hours
- The greatest difficulty in the world is not for
people to accept new ideas, but to forget old
ones. John Maynard Keynes - If Im in control, Im probably going to slow.
Mario Andretti - A man who wants to lead an orchestra must turn
his back to the crowd.