chapter 6: entrepreneurship and small...
TRANSCRIPT
Entrepreneurship and small business management
Why does it matter? 2
Entrepreneurship represents a dominant paradigm of economic development, job creation, national competitiveness
Absent entrepreneurship, economies would go stagnant
Changing societal views of entrepreneurs
Who is an entrepreneur?
Depends on who you ask
Entrepreneurs are people who run their own companies, the self-employed or small-business owners
Entrepreneurs are innovators: people who come up with new ideas and embody those ideas in high-growth companies
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An intellectual confusion
Based on number of small businesses or the number of people who are self-employed or the number of startups, Egypt tops the list (comes out as more entrepreneurial than the US)
Based on innovative, high growth companies - HK tops the list. Followed by Israel, US, … Canada (9th)
(measured as “entrepreneurial density” or number of self made billionaires per million population)
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How about failed attempts?
Is entrepreneurship only about successful enterprises?
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Entrepreneurship dissected-three essentials pillars
Pro-activeness
Risk
Innovation (Nybakk and Panwar, 2015)
Perseverance?
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Is Judson Belmaunt an entrepreneur? Or is he running a small business?
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Two dominant views on new venture creation
Entrepreneurship is a controlled experiment
Entrepreneurship is a “chance” game
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Entrepreneurship as a delicately controlled process
https://www.youtube.com/watch?v=_ve4M4UsJQo
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Control oriented entrepreneurs: The business-plan camp
All risks can be anticipated and mitigated
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Speaking of business plans…
You know all the elements of a business plan!
(Assignment 2)a. Company’s history, mission and visionb. Scope of activitiesc. Human Resource policiesd. Product portfolioe. Markets servedf. Marketing and sales organizationg. Sustainability managementh. Financial snapshoti. Future plans and strategyj. Key competitive advantage factors
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Business plans
Banks always want it!
A key piece for small businesses
Cookie-cutter templates available
(e.g., CBN-CAN, SBA-US)
A key component for small business management courses
Has certain advantages
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How much business plans matter?
“How to write a great business plan?”
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Always have a plan B….
Because you are likely going to need it
Hate me for being rude… but your business- yes, yours- will likely fail.
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Odds are not in your favor
25% of small businesses fail in the first two years
52% of small businesses fail within four years
If that’s not somber enough…
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Two dominant views on new venture creation
Entrepreneurship is a controlled experiment
Entrepreneurship is a “trial and error” game
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Beating the odds
Deal killer risks
Path-dependent risks
Risks that can be revolved with little money and time
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Key lessons in entrepreneurship
“ the curse of too much capital”
Initial strategy is part-right, part wrong
Founder’s syndrome
“Perfection is sometimes the enemy of the good”
Find your blue ocean
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