Entrepreneurship HEJ / LEJ

1. Entrepreneurship HEJ / LEJ Center for Entrepreneurial Development IBA, Karachi

4. Contents • Entrepreneurship • Entrepreneurial Requirements • Impact of Entrepreneurship • Entrepreneurship and Innovation • Entrepreneruial Process • Various Case Studies • Entrepreneurship + (PLUS)

5. Entrepreneurship Defined • Entrepreneurship—a way of thinking, reasoning, and acting that is opportunity obsessed, holistic in approach, and leadership balanced for the purpose of value creation and capture. (This definition of entrepreneurship has evolved over the past three decades from research by Jeffry A. Timmons at Babson College and the Harvard Business School and has recently been enhanced by Stephen Spinelli, Jr. former Vice Provost for Entrepreneurship and Global Management at Babson College, and current President of Philadelphia University).

6. Entrepreneurship Results • Value: • Creation • Enhancement • Renewal • For: • Owners • Stakeholders • All Participants

7. Entrepreneurship is NOT just “Start-Ups Only” • It includes companies and organizations • All types • At all stages • Can occur and fail to occur • In old and new firms • Small and large firms • Fast and slow growing firms • Private, not-for-profit, and public sectors • All geographic points • All stages of a nation’s development

8. Entrepreneurial Requirements • Willingness to take risks • Personal • Financial • Calculated • Shift the odds of success • Balancing risks with rewards

9. a mindless activist, a war lover, felt driven to prove manhood by confrontation" Impossible to damage, injure, or wound inclination of an individual to initiate behavior without adequate forethought as to the consequences of their actions, acting on the spur of the moment tend to: -believe that you don't need anything from anyone -trust no one but yourself -find it hard to feel close to anyone, even wife and children -Low Self Esteem believe in full equality before the law

11. Entrepreneurship Flattens the World • Significant impact on the cultural and economic landscape • Exploding in China, India,, and the former Soviet bloc • Adoption of the entrepreneurial mind-set is growing exponentially larger and faster

12. Innovation Small entrepreneurial firms (since WWII) are: • Responsible for half of all innovation • Credited with 95 percent of all radical innovation • Led to the creation of major new inventions and technologies

14. Philanthropy and Leadership Successful entrepreneurs give back to the community • Colleges and universities • New buildings, classrooms, athletic facilities, and endowed professorships • The largest gifts and the greatest proportion of donors to college capital campaigns • Hospitals, museums, orchestras, and schools

15. Achieving Entrepreneurial Greatness Three core principles of Marion Labs and the Kauffman Foundation: • Treat others as you would want to be treated • Share the wealth that is created with all those who have contributed to it at all levels • Give back to the community

16. Ewing Marion Kauffman of Marion Laboratories, Inc.: “Live what you talk, make your actions match your words. You must live what you preach and do it right and do it often.Day after day.” “As an entrepreneur, you really need to develop a code of ethics, a code of relationships with your people, because it’s the people who come and join you. They have dreams of their own. You have your dream of the company. They must mesh somewhat.”

17. Building an Entrepreneurial Society • The poor get richer • Equal opportunities (not equal incomes) are created • Economic mobility increases • Social mobility increases

18. The Entrepreneurial Process

19. It is opportunity driven • It is driven by a lead entrepreneur • and an entrepreneurial team • It is resource parsimonious and creative • It depends on the fit & balance among these • It is integrated and holistic • It is sustainable

26. ILinc: The case study of a startup Technology Entrepreneurship

27. Dilemma Fall 1993 Chance Meeting March 1994 Join Corporate World Pros +Established + Less Risky + Money + Considered hot property • Cons • Cog of a wheel • Small part of a large corporation Mark Bernstein BA Econ Computer related sales Experience Proceed with the new venture • Cons • Very Risky • Career Prospects ? • Low earnings initially Degerhan Usluel BE EE Chief Designer / programmer (circuit design company) Founded USIMEK Software consulting Pros +High returns + Self Actualization

28. Idea ? Pain- Need Distance Learning Short term retention 20% hearing, 40% hear and see, 75% hear, see and do JIT (Just in Time training) Fall 1993 Chance Meeting Product Software Environment Multimedia + Communication Distributed virtual class room Will provide companies a competitive advantage Market (9.3 million biz in US) 27,000 firms employ over 500 employees Primary: Fortune 1000 Firms Secondary: Other US firms Tertiary: International firms

29. Meeting with Prof Wilson PhD Physics Expert in Multimedia AT&T, IBM Scholar Chance Meeting Fall 1993 Chance Meeting Meeting with the Entrepreneurship Professor (Rice) Basement meetings Team Wilson (CEO) PhD Physics AT&T, IBM Scholar Mark Bernstein (COO) Degerhan Usluel (CTO) BE EE • Develop a sound Biz Plan • Strong team of advisors • Understand Capital requirements • Recruit Jack Wilson • Take the course on Entrepreneurship • Rule of thumb • Expenses twice your estimate • Revenues will be half • It will take twice as long

30. Basement meetings Refinement of ideas Consists of Executive Summary Environment Management Team The Product Budget Required Marketing Strategy Entry Strategy Financial Plan Risks Exit Strategy Business Plan Final Idea Combine Multimedia with Distance Learning • Investors • Bankers • Advisors • Entrepreneur himself • Understand capital requirements • For the team • Regulatory approvals • Communication tool

31. Evaluation of the Biz Plan Strengths • Technical Expertise (Wilson and Usluel) • Sales Skill (Bernstein) • International reputation and network of Wilson • Compatibility of team • Vision of the opportunity • Some start up experience Weaknesses • Marketing Expertise • Financial management and fund raising experience • Project management of commercial development • Closing large deals with large companies • General management of a fast growing firm in a start up mode • Customer service in commercial mode for Fortune 1000 companies.