Essentials of Entrepreneurship

1. Essentials of Entrepreneurship Anthony Cerrato Jeremy Wong

2. Problem Definition • There is an issue of keeping long term success of an appropriative technology (1 year or more) in a developing country • There needs to be a way to ‘bridge the gap’ between the technology and sustainable business

3. Enter an Entrepreneur • It is a person who organizes, operates, and assumes the risk for a business venture • Not all entrepreneurs are for profit • A Social Entrepreneur develops an idea that benefits society, such as overcoming a social problem, rather than a commercial idea

4. Why create a business? • The hopes of the project is to help… • Generate (or at least begin to generate) a steady income for the local entrepreneur • Create jobs or many jobs • Pass on solutions (for a price) for others in their community or neighboring communities with the technology • And It’s Fun! Working Villages

5. If Not… • We (the Guateca group) spend time building a solution to a specific need (realized or unrealized) and leave it there, hoping someone there will maintain/repair/manage it BudaváriPalota (Buda Castle), poorly built from Soviet Era and not well maintained today

6. Factors Affecting Business • To understand the small, niche markets of San Pablo, there’s a number of factors to take into consideration • Culture & Customs • Ex. Family and the bonds within the neighborhood are important to the locals • Perceptions • What is the perceived benefit the customer sees your product as instead of what you designed your solution to do

7. Factors Affecting Business • More factors: • Relatively lower economic wealth • Unlike people in the US, the overall wealth of those living in San Pablo are lower • Education • There is importance to educate someone know the tools of the trade of the technology for long term sustainability • Environment • Resources are scarce, which creates opportunities

8. Business of Creating Businesses • In the US, we have a Business Plan

9. A business plan? • A business plan describes the operating substructure to establish a enterprise • Planning is the decision about future actions taking into account a realistic market development • The business plan is a dynamic instrument of the administration und is generally issued for a period of 3-5 years.

10. Customer Segments Who are your customers? What goods or services do they need? What tasks are difficult or dangerous for them? What tasks do your customers spend most of their time doing? Can there time be spent more efficiently?

11. Value Propositions • Newness • Improving performance • Design • Brand/Name • Lowering price • Risk reduction

12. Channels, Customer Relationships, and Revenue Stream Where can you get your materials the cheapest? Are your customers happy with your product? Are your customers recommending your product to others in the community? The money you generate is directly proportional with the satisfaction the customer receives from their product or service

13. Key Partnerships, & Cost Structure Are your partnerships cooperative, or are they “buyer and seller”? Are you going to sell your product to generate revenue, or are you going to provide it at cost for friends and family in your community?

14. How Does This Help? • Capital Markets • Creating a long term funds for the business can help carry on the appropriative technologies if the business is viable

15. How Does This Help? • Effort of a Community • You may even get the community to continue what the group of you start in San Pablo for years to come Adventure Playground, Berkeley, Ca.

16. Questions?