IT Entrepreneurs

1
IT Entrepreneurs
Self-Portrait of Poly, Monet

• Amanda Koehler,
• Dee Dee Veal,
• Balazs Klanicza,
• Kesorn Tongwan

2
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
3
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)

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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

5
Qualities of an Entrepreneur

• Initiative
• Commitment
• Leadership
• Self-direction
• Optimism
• Hard work

• Inner drive to succeed
• Strong belief in themselves
• Open to change
• Competitive
• Highly motivated

(11,12,13)
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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

Pablo Picassos Old Guitarist
(17)
7
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
  self-employed

(19)
8
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

(19)
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Guess the Entrepreneur
Bill Gates, Microsoft
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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

11
Meet Real Entrepreneurs from Around the World
Csaba Zajdó, Hungary
Matthew Porter, St. Louis, MO
Akom Thongloy, Thailand
12
Matthew Porter

• Owner and founder of Contegix
• St. Louis, MO
• 32 years old

13
Background

• 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

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Career Background

• 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

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Contegix

• With his wifes 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

16
Csaba Zajdó

• Co-owner, founder and CEO of WebShop-Experts
• Debrecen, Hungary
• 25 years old

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Csabas Background

• 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

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Csabas 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

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Csabas 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

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WebShop-Experts

• 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

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Akom Thongloy

• Owner and founder of Extreme Solution
• Bangkok, Thailand
• 30 years old

22
Akoms background

• Extroverted, self-directed
• Grew up in agricultural family
• Graduated with a Bachelors degree in Electronics
  Engineering
• Interested in Web designing and Visual Basic

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Akoms 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.

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Extreme Solution

• Founded in 2005
• Focus on customer service
• Decentralized organizational structure
• Profit increased around 40 since first year

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Hobbies of Entrepreneurs
Matthew Porter, Contegix Csaba Zajdó, WebShop-Experts Akom Thongloy, Extreme Solution
Weekly yoga class with wife Spend time with three kids Write code for fun Body building Starcraft (3x WCG) Girlfriend Play guitar Surf the Internet Read a book
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Guess the Entrepreneur
Jeff Bezos, Amazon
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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

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Hatch Zweig Study

• Sample Over 50 In-depth interviews with
  entrepreneurs from the Chicago area
• Findings
• 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

(8)
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The Stuff Entrepreneurs are Made of
BIRTH OF THE FIRM

(8)
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Northeastern University Study

• School of Technological Entrepreneurship
• Sample 202 U.S. based entrepreneurs

(9)
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Were your parents, grandparents, or siblings
entrepreneurs?
Northeastern University Study N202
Our Interviews N3
(10)
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At what age did you launch your first venture ?
Our Interviews N3
Northeastern University Study N202
40
Childhood
30 -40
Childhood
18 - 30
18 - 30
(10)
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What was your biggest inspiration?
Our Interviews N3
Northeastern University Study N202
Work
Icon
Myself
Myself
Icon
Family
Family
(10)
34
What were your biggest motivators towards
starting your own venture?
Our Interviews N3
Northeastern University Study N202
Peers
Peers
Innate
Work
Work
(10)
35
How fearful were you that your first venture
would not succeed?
Our Interviews N3
Northeastern University Study N202
100
Fear delayed
Some fear
Significant
Some fear
No fear
(10)
36
Do you consider yourself a risk taker when making
big decisions that deal with your business?
Our Interviews N3
Northeastern University Study N202
Yes
Somewhat
Yes
(10)
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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)
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Donald J. Taffi Research
(7)
Matthew Porter, Contegix Csaba Zajdó, WebShop-Experts Akom Thongloy, Extreme Solution
Unusually well-developed ego a a a
Detail oriented, perfectionists who rarely develop personal intimacy in their relationships
Endowed with inexhaustible reservoir of energy a a a
Nothing is done soon enough, everything is a crisis a
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
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Taffis Conclusion

• It takes one to know one

(7)
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Guess the Entrepreneur
Mark Zuckerberg, Facebook
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Start Up Cost

• One of the most intimidating aspects of starting
  your own business in any industry
• Microsofts Small Business Center recommends
  saving enough to cover your initial expenses plus
  six months worth of operating expenses

(1)
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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.

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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

(6)
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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 Huge opportunities Globalized market Center of Business Close to customers
Cons Conservative money Highly competitive because of low start up costs Highly competitive
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Perfect Timing

• MobileStars portable data network failure
• Interviews
• Matthew Porter, Contegix fate led to good
  timing
• Csaba Zajdó, WebShop-Experts Cool e-commerce,
  everyone is in the hype of internet
• Akom Thongloy, Extreme Solution Initial
  customers encourage to start own company

(15)
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Now is the time!

• 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 dot-com
  burst

(20)
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Acting as CEO

• According to Mark Henricks in Entrepreneur
  Magazine, it may be best to demote yourself and
  place someone with experience in your companys
  top position

(2)
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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.
(3)
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Interviews Acting as CEO

• Matthew Porter, Contegix I dont 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-ExpertsMarketing 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

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Importance of Education

• 1. Dropouts 131.36 Billion
• Bill Gates Microsoft 56 BillionPaul Allen
  Microsoft 18 BillionLarry Ellison Oracle 21.5
  BillionSteve Jobs Apple 20 BillionMichael
  Dell Dell 15.8 BillionMark 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 BillionSergey Brin
  Google 16.6 BillionDavid Filo Yahoo 3
  BillionJerry Yang Yahoo 2.2 BillionReid
  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

(4)
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Interviews Education

• Matthew Porter, Contegix BS, Computer Science
• Education was crucial. Not because of textbook
  knowledge, but learning how to think (develop
  professionalism and views).
• Csaba Zajdó, WebShop-Experts MSc in Business
  Administration and ongoing MSc studies in
  Programming-Mathematics
• 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.

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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
• 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

(5)
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Guess the Entrepreneur
Larry Ellison, Oracle
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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

55
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 arrangementworking for a
  company or for someone else, or developing a
  career in a profession or an area of technical
  expertisemay be far more congenial to you and
  allow you to enjoy a lifestyle appropriate to
  your abilities and interests.

(14)
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Myers Briggs Type Indicator

• 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/

(16)
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Suggestions for Aspiring Entrepreneurs

• Matthew Porter, Contegix
• Pay attention to the market, but dont 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

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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

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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

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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
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Conclusion

• Research on entrepreneurs offers various
  conclusions
• Location of entrepreneur also affects the
  business environment
• Dont be afraid to start your own business!

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References

1. Microsoft Small Business Center
   http//www.microsoft.com/smallbusiness/resources/e
   xpert/strauss102005.mspx
2. Henricks, Mark. Bringing in a CEO. Entrepreneur
   Magazine March 2007.
3. 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.
4. New York Habit Blog. The Top Ten Colleges of
   Todays Richest Tech Entrepreneurs.
   http//richohanian.wordpress.com/2007/04/11/the-to
   p-10-college-degrees-of-todays-richest-tech-entrep
   reneurs/
5. Margulius, David L. Entrepreneurial IT.
   InfoWorld 28 (2006) 21-27.
6. 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.
7. Yarzebinski, Joseph A. Understanding and
   Encouraging the Entrepreneur. Economic
   Development Review 22 (1992).

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References Continued

• 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/NEU20STE20Born
  20v2020Bred20Survey20Results.pdf?u6189825501
  44 viewed September 19, 2007.
• http//www.woopidoo.com/articles/geimure/entrepren
  eur-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.

65
References Continued

• 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