MBAX 6100 Entrepreneurship & Small Business Management

1. MBAX 6100Entrepreneurship & Small Business Management Frank MoyesLeeds College of Business University of ColoradoBoulder, Colorado Introduction to Entrepreneurship

2. Today’s Agenda • Introductions • Course organization • Nature of entrepreneurship • Role in society • Defining Entrepreneurship • NREL visit 2/2 Friday 1:30pm Introduction to Entrepreneurship

3. Objectives of the Course • Learn how to recognize and evaluate business opportunities • Understand the issues faced by entrepreneurs who want to start their own business. • Acquire skills and tools required to start a business. • Determine your own potential to be an entrepreneur Introduction to Entrepreneurship

4. Really Understand • What is a compelling Opportunity/Need • How to determine the Value Proposition • Product/Service • Target market • Unique benefit • What is a sustainable Competitive Advantage Introduction to Entrepreneurship

5. Required Materials • Bygrave & Zacharakis, The Portable MBA in Entrepreneurship • Mullins, The New Business Road Test • Kawasaki, The Art of the Start • Course Packet • Hand-outs in class: various articles and reading materials Introduction to Entrepreneurship

6. Communications • frank.moyes@colorado.edu • Office Hours: Business Room 328A • Monday 4:00to 6:00pm • Wednesday 4:00 to 5:30 • And by appointment • Website: http://leeds-faculty.colorado.edu/moyes • Communications: List Serve Introduction to Entrepreneurship

7. Course Organization • Readings: entrepreneurship concepts, practices and tools • Case studies • Speakers • Evaluation & grading • 2 projects • Entrepreneur interview • Feasibility Plan • Mid-term exam • Class participation • Expectations Introduction to Entrepreneurship

8. 0 Course Topics • What is entrepreneurship • Recognizing good opportunities • Corporate entrepreneurship • Funding entrepreneurial ventures • Legal issues & term sheets • Managing growth • Harvesting • Entrepreneurial ethics Introduction to Entrepreneurship

9. What is Entrepreneurship? Introduction to Entrepreneurship

10. Historical Definition French term: people who provide men and materials to feudal lords. Introduction to Entrepreneurship

11. Timmons's Definition “Entrepreneurship is creating and building something of value from practically nothing. That is, entrepreneurship is the process of creating or seizing an opportunity and pursuing it , regardless of resources presently controlled.” Jeffrey Timmons Introduction to Entrepreneurship

12. Timmons's Definition “Entrepreneurship is creating and building something of value from practically nothing. That is, entrepreneurship is the process of creating or seizing an opportunityand pursuing it ,regardless of resources presently controlled.” Jeffrey Timmons Introduction to Entrepreneurship

13. Economist’s Definition • “The entrepreneur is the innovator who implements change within markets through the carrying out of new combinations.” Schumpeter(1934) • Later he calls it “creative destruction”. Introduction to Entrepreneurship

14. Poetic Definition “Entrepreneurship is a state on mind, an artful, insightful, and innovative mentality, not simply ‘business administration’; it is a way of perceiving and exploiting opportunities wherever they may be found.” Unknown Source Introduction to Entrepreneurship

15. Poetic Definition “Entrepreneurship is a state on mind, an artful, insightful, and innovative mentality, not simply ‘business administration’; it is a way of perceiving and exploitingopportunities wherever they may be found.” Unknown Source Introduction to Entrepreneurship

16. Corporate Entrepreneurship “Formal or informal activities aimed at creating new businesses in established companies through product and process innovations and market developments.” Zahra “…centers on reenergizing and enhancing the firm’s ability to acquire innovative skulls and capabilities.” Morris & Kuratko “Cost-effective innovation or intrapreneurship” Pinchot Introduction to Entrepreneurship

17. 0 Who Are Entrepreneurs? Introduction to Entrepreneurship

18. 0 Entrepreneurial Characteristics • Creativity • Risk-taking • Need for achievement • Sense of independence • Internal locus of control • Tolerance for ambiguity Introduction to Entrepreneurship

19. Who Are Entrepreneurs? “ Some are eccentrics; some painfully correct nonconformists; some are fat, some are lean; some are warriors, some relaxed; some drink quite heavily, others abstain; some have great charm or warmth; some have no more personality than a frozen mackerel.” PeterDrucker Introduction to Entrepreneurship

20. Who Are Entrepreneurs? “Entrepreneurs are societies rejects, instead of becoming hobos, criminals or professors, the start their own business.” Thereau Introduction to Entrepreneurship

21. 0 How Does Start-up Process Really Work? Introduction to Entrepreneurship

22. Goals Inspiration Inspiration Fooling Goals Plan Action Around Plans Doing Plan Mistakes Some Other Failure Action Goals Inspiration Success Entrepreneurial Process Pinchot & Pellman, Intrapreneurship in Action

23. Entrepreneurship Conclusion • Opportunity driven • Entrepreneurial characteristics, but no E-gene • Mindset • Messy Introduction to Entrepreneurship

24. Next Class Tuesday Section • Entrepreneurial Manager • Assignment: • Read B-Z Chapter 1 - The Entrepreneurial Process • Read M Chapter 6 – Mission, Personal Aspirations & Risk Propensity • Read K-1 Chapter 1 – The Art of Starting • Crunch case study – read & answer questions • Questions for next week - Think of an entrepreneur that you know personally. What makes him or her an entrepreneur? Introduction to Entrepreneurship