MBAX 6100 Entrepreneurship & Small Business Management

1. MBAX 6100Entrepreneurship & Small Business Management Frank MoyesLeeds College of Business University of ColoradoBoulder, Colorado “Progress depends upon unreasonable men.” GB Shaw Entrepreneurial Mind

2. Today’s Agenda • Entrepreneurial Manager • Case: Crunch • Discussion of venture ideas • Tech transfer • Other • Yours • Entrepreneur Interview Traits of entrepreneurs are closest to juvenile delinquents Entrepreneurial Mind

3. Entrepreneurial Manager • Characteristics & traits • Different types of entrepreneurs • Failure • Entrepreneurs vs. small business Entrepreneurial Mind

4. 0 Are There Entrepreneurial Characteristics? • Motivated by achievement • Internal locus of control • Risk-taking • Tolerance for ambiguity • Sense of independence • Passion Entrepreneurial Mind

5. “Until one is committed, there is hesitancy, the chance to draw back, always ineffectiveness. Concerning all acts of initiative and creation there is one elementary truth, the ignorance of which kills countless ideas and splendid plans: That the moment one definitely commits oneself, Providence moves too. All sorts of things occur to help one that would never other wise have occurred. A whole stream of events issue from the decision, raising in one’s favor all manner of unforeseen incidents and meetings and material assistance, which no man could have dreamed would have come his way. Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it.” Goethe’s Faust. Commitment Entrepreneurial Mind

6. 0 What Skills & Knowledge Are Required? • Creativity • Business knowledge • Industry knowledge • Critical thinking • Relationships “Traits of entrepreneurs are closest to juvenile delinquents.” Entrepreneurial Mind

7. 0 What Assets are Required? • Network • Supporting spouse • Financial resources • Optimism Entrepreneurial Mind

8. 0 What Non-Entrepreneurial Traits Should Be Avoided? • Invulnerability • Being Macho • Being Authoritarian • Impulsivity • Outer control • Perfectionist • Know it all • Counterdepency Timmons: New Venture Creation Entrepreneurial Mind

9. 0 Types of Entrepreneurs • Personal achiever • Super-salesperson • Real manager • Expert Idea Generator JB Minor, Four Routes to Entrepreneurial Success Entrepreneurial Mind

10. Personal Achiever (classic entrepreneur) • Need for high achievement • Need for performance feedback • Desire to plan and set goals • Strong individual initiative • Strong personal commitment • Internal locus of control JB Minor, Four Routes to Entrepreneurial Success Entrepreneurial Mind

11. Super-Salesperson (caters to needs of customers) • Capacity to empathize • Social interaction and relationships are important • Need to have strong positive relationships with others • Sales force is critical • Background: less education, more experience JB Minor, Four Routes to Entrepreneurial Success Entrepreneurial Mind

12. Real Manager (grow the venture) • Desire to be corporate leader • Desire to compete • Decisive • Desire of power • Desire to stand out in a crowd JB Minor, Four Routes to Entrepreneurial Success Entrepreneurial Mind

13. 0 Expert Idea Generator (expertise + creativity = innovator) • Desire to innovate • Love of ideas, curious • Belief that new products are crucial • Intelligence is the competitive advantage • Desire to avoid taking risks JB Minor, Four Routes to Entrepreneurial Success Entrepreneurial Mind

14. 0 Types of Entrepreneurs • Personal Achiever • Super-Salesperson • Real Manager • Expert Idea Generator • Are there others? Entrepreneurial Mind

15. Different Methods Used to Build Ventures • Independent innovators • Pattern multipliers – expand concept through franchise or chains • Speculator – buy and leverage, e.g. land • Consolidator – industry roll up • Acquirers • Speculators • Arbitrageur – buy low and sell high K Vesper, New Venture Strategies Entrepreneurial Mind

16. What Is Intrapreneurship? • Takes hands-on responsibility for creating innovation with in an organization • “Create or develop entrepreneurship within corporate boundaries, thereby allowing an atmosphere of innovation to prosper.” Kuratko & Hodgetts, Entrepreneurship Entrepreneurial Mind

17. Entrepreneurs vs. Small Business? • Value-creating through innovation • Creates new jobs; doesn’t’ draw from existing businesses • Serving underserved niches • Growth oriented: sees business as regional, national or international • New means to an end • Disrupt the economic equilibrium; results in new ideas, new businesses and new industries. Entrepreneurial Mind

18. 0 Do You Have the Right Stuff? • Are you a self starter? • Can you go 6 months to 2 years without getting paid? • Are you willing to give up vacations, weekends and evenings? • Are you a decision maker? • Are you a people person? • Do you handle rejection well? • Do you think will on your feet? • Do you like to sell? • Do you handle crisis well? • Would you be able to fire someone? • Do you want total responsibility and accountability? Entrepreneurial Mind MD Csordos, 35 Business Lessons for Entrepreneurs

19. Just Do It 0 “Millions of people have “an idea”, but unless they do something with it, their ideas aren’t worth a damn. There are a lot of quacks and kooks out there who claim they invented the Weed Eater, and I don’t doubt that there are some people who genuinely thought of this idea--but what did they do with it? Nothing. What do they deserve? Nothing.” George C. Ballas, inventor of Weed Eater Entrepreneurial Mind

20. Next Week’s Class • Opportunity Recognition • Feasibility Plan • Select team of 2-3 students • Case: ICEDELIGHTS • Questions to think about for next week • What is the difference between an idea & an opportunity? • What opportunities do you think would make a good basis for a feasibility plan? Entrepreneurial Mind

21. Traits • Misfits: traits of entrepreneurs are closest to juvenile delinquents • I have discovered that all human evil comes from this, man’s being unable to sit still in a room. Blaise Pascal, philosopher and mathematician • “Progress depends upon unreasonable men.” GB Shaw • Entrepreneurs typically work half days. 12 hours • “The greatest difficulty in the world is not for people to accept new ideas, but to forget old ones.” John Maynard Keynes • “If I’m in control, I’m probably going to slow.” Mario Andretti • A man who wants to lead an orchestra must turn his back to the crowd. Entrepreneurial Mind