introduction to entrep v2
Post on 18-Oct-2014
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This is a revised and updated version of intro to entrepreneurship published earlier last April 2016.TRANSCRIPT
Introduction to Entrepreneurship
Unlocking the Secrets of Wealth CreationApril 7, 2023
A. General Concepts
The ENTREPRENEUR
Our common understanding
The boss The business owner The risk taker One who starts a small
business The resourceful guy?
No single definition
French word origin
Entependre – an undertaker
Walt Disney’s definition
“….to do things and make things which will give pleasure to people in new and amazing ways. ….It is magic!
*From the lecture given by Larry Farrel at SBMA, August 7, 2002 and at UAP, October 30, 2009.
For this course:
Walt Disney and entrepreneurship
Simply amazing!
Magical
Entrepreneurship involves:
MAGIC – soft issues
LOGIC – hard issues
“It is making the world forever new. It is taking aggressive actions.”
According to George Gilder – from “The Spirit of the Enterprise”*
According to Joseph Schumpeter -* “It is destroying the old order and creating
new ones.”
*From “Business as a Calling” by Michael Novak
It is about: NEW:
Business ideas Products Processes
ENTREPRENEURSHIP A MINDSET About a forever
innovating mindset
Timmons
“It is creating something from practically nothing”
“ It is doing something vs. just talking”
It is about:
Action Strategy Courage Wise use of resources Start with what he has
THE THREE MASTERIES FOR AN ENTREPRENEUR:
Mastery of Self Mastery of
Opportunity Mastery of the
Enterprise
Masteryof Self
Masteryof
Organization
Enterprise
Corporate
Entrepreneurial Leadership
Corporate Leadership
Aspects of Self-Mastery
Traits of an Entrepreneur - D’s and F’s
Is it better to drop out?
Is it better to get F as a grade?
Dream Determined Details Dollar (Peso, in our case) Decision Doer Distribute Destiny Devotion Dedication
D’s
Founder Faith Focused Frugal Fast Fun Flexible Flat Forever Improving
F’s
Anatomy of the Entrepreneur
The Entrepreneurial Mind Frame
The Entrepreneurial Mind Frame
The Entrepreneurial Gut Game
The Entrepreneurial Gut Game
The Entrepreneurial Heart Flame
The Entrepreneurial Heart Flame
Anatomy of the Entrepreneur
WISDOM
HEART
GUTS
What lies behind us, what lies before us, is nothing compared to what lies within us. HANDS
Self Analysis:
Gifted minds Steely Guts
Ability to intuit Courage
Patriotic Hearts Hands that truly care
Do I possess all of the above?
The Entrepreneur’s Brain
Let us do a brain surgery…
“I have 4 brains: left cerebral, left limbic, right limbic, Right cerebral.”
The HBDI developed by Hermann yielded a brain dominance profile
Logical Factual Critical
TechnicalAnalytical
QuantitativeInterpersonalKinestheticEmotionalSpiritualSensoryFeeling
PREFERRED SUBJECTS Arithmetic Algebra Calculus Logic Science Technology Finance
Programming Accounting Technical Management Production
Arts Geometry Design Poetry Architecture Marketing
Social Sciences Psychology Dance Drama High-Skilled Sports People-Management
A
B C
D
PREFERRED PROFESSIONS Lawyers Engineers Computer Systems Analysts Financial Analysts Technicians Physicians
Statisticians
Bureaucrats Administrators Bookkeepers
Entrepreneurs Explorers Artists Playwrights Scientists in R&D Advertising
Guidance Counselors Public Relations Nurses Social Workers Entertainers HRD
A
B C
D Composers Jazz Musicians
Planners-Programmers Elementary Teachers Policemen Cashiers Production Supervisors Maintenance People Classical Musicians
Salesmen Priests
CEO’smale or female
Cerebral
Right modeLeft mode
Limbic
Entrepreneurs
Cerebral
Right modeLeft mode
Limbic
B. Forms of Entrepreneurship
1. Social Entrepreneurship
2. Business Entrepreneurship
3. Techno Entrepreneurship
1. Social Entrepreneurship
1. Social Business Mix
NGO(non-profit)
NGO(for-profit)
SocialEnterprise
Social Business
BusinessEnterprise
CSR
Profit Maximization
Business (PMB)
Business Enterprise
Social Entrepreneurship
“Any creative and innovative solution applied to solve social problems” (Mohammad Yunus, 2007) It involves social mission Profit and/or entrepreneurial
processes
Banker to the poor
Social Entrepreneurship
“Search for approaches to move poor people out of poverty beyond welfare-based safety nets.” No more charities Sustainability Profits for non profits
Social Entrepreneurship
CSR – corporate social responsibility
CSV – corporate shared value Human Nature
Social Business The triple bottom line
PEOPLE PROFIT PLANET
BOP – Bottom of the Pyramid
BOP – Bottom of Pyramid
A-B 9%
C 20%
D-E 31%
F 40%
Living on less than $2 per day
Above poverty threshold
Living on less than $1 per day
Mother Teresa did what no other person has done before – to take care of the poor, destitute and lepers
Lance Armstrong 7 times Tour de
France champion His real victory is
with the LAF where he helps hundreds of cancer victims
Sir Edmund Hillary was first to conquer Mt. Everest
Sir Edmund Hillary came back to Nepal and helped the Sherpas improve their living conditions.
Mohammad Yunus Taught Developmental Economics at
the University of Chitagoong in Bangladesh.
Economics, right at the outskirt of the University, poverty was everywhere.
He found out that all that was needed by the poor was a loan of 27 chakas. That’s how the Grameen Bank started.
Why are they
entrepreneurs?
They had little or no resources at all but they survived and achieved what they wanted in life
2. Business Entrepreneurship
Business for profit
Business Entrepreneurship
It’s about the study of systems, structure, and staffing to make a large corporation stay competitive, innovative, and profitable on a sustainable basis.
2 types of business entrepreneurship
The business cycle according to Larry Farrel – int’l expert on entrepreneurship
Survival /
Failure
DeclineGrowth
Start
ENTREPRENEURIAL MANAGERIAL
No longer excellent!...
In 1983, there was the book In Search of Excellence by Tom Peters and Waterman. It sold 6 million copies. Then...
Something went wrong...
33% of the “Excellent” Companies vanished
Too big to fail companies Where are they now?:
Washington Mutual
Bear Stearns
Pacific Bank
Banco Filipino
Vanishing giants
Dinosaurs of the corporate world
ENTREPRENEURIAL COMPANIES Keeping the Sense of
Mission alive as you grow Re-instilling
customer/product vision in every employee
Fostering high-speed innovation
Making self-inspired behavior the organization standard
BUSINESS ENTREPRENEURSHIP
Entrepreneur (Self)
Resources Opportunity
IDEA REALITYTIME
Differentiation
Growth
Strategic direction
Three Competencies of the Complete Entrepreneur
ORIGINATOR
OPERATOR ORGANIZER
inno
vato
r inspirer
implementor
Compelling ReasonsWhy We Need Entrepreneurs 90% of the world’s jobs are created by
entrepreneurs Source of new products and innovation In the third-world countries, the entrepreneurs
keep the sagging economies alive It’s the entrepreneurs – not the central bank –
that keep the economy moving Finally...
...in the Philippines It’s not GMA nor the government that was
responsible for sheltering the Philippines against bad times.
GUESS WHO?!
In the GEM report of 2006-2007, RP is No. 2 in the world for entrepreneurial activity.
Peru is No. 1
RP is a HOTBED OF ENTREPRENEURSHIP! 4 out of 10 adult Filipinos are into
business Highest in Northern Luzon – 54% Lowest in Metro Manila – 30% In the early stages, it is highest in
Mindanao, at 73%
Entrepreneurship in the Philippines: Issues from a Global Perspective
Other trivia: Battle of the sexes:
51% of all businesses are started by women
55% of all businesses are run by men
Of the nascent businesses, 60% are run by women
Entrepreneurial “ION” (Process)
AmbitION
PassION +
Sea of OpportunitySea of Opportunity
InspiratION (idea)
PerspiratION (past jobs)
RecreatION (hobbies)
FrustratION (what pisses you off)
Idea FruitION
EnterpriseCreatION
=
Is Entrepreneurship easy?
We choose to go to the moon in this decade and do all the other things to get there, not because they are easy but because they are hard, because that goal will serve to measure the best of our energies and skills, because that challenge is one we are willing to accept and we are unwilling to postpone, and which we intend to win and others too.
-- JFK, 1962
So you want to be a billionaire
Put your name here:
__________________________________THE NEXT MILLIONAIRE / WINNER