Pathways to Entrepreneurial Success Seminar

1. TOUR 610 Seminar 2 TOUR610 Seminar 2 Topic: Pathways to Opportunity

2. Structure for today’s seminar: Housekeeping – administrative issues • Reading logs (first one due March 6th 3pm on Learn) Then the new material for today: Entrepreneurial objectives: The major pathways • The six common business entry pathways Discussion: What constitutes having an ‘entrepreneurial edge’? Case Studies: 14 tips for success vs. 11 pitfalls for entrpreneurs to avoid (refer to articles on Learn)

3. Entrepreneurial objectives: The major pathways Experiencing entrepreneurship can occur through: • Starting a new business • Purchasing an existing business • Inheriting a business • Being promoted within an existing business • Being brought in to manage a business

4. Entrepreneurial objectives: The major pathways There are SIX common business entry pathways: • Bootstrapping • Minipreneurship • New-New Option for business start-up OR New-Old option for business start-up • Acquisition of an existing venture • Buying a franchise • Establishing a social venture

5. Bootstrapping Defined as “starting a new venture through highly creative acquisition and use of resources” (Frederick et al, 2016, p. 159). Relies heavily on: • Networks • Trust • Co-operation • The efficient use of existing resources Requires a healthy cash flow. Staying alive is the aim of this technique!

6. Minipreneurship Defined as “consumers who create, produce and trade goods, services and experiences rather than merely consuming them” (Frederick et al., 2016, p. 161). Example: Selling goods online – focus on niche products, looking for gaps in the existing market. • Low-cost in terms of overheads • Minipreneurs’ s key focus is on inventory, customer satisfaction and new business models

7. Disruptive New Venture Creation New-New Approach • Creative ideas come through adaption or innovation. • This approach is aided through new technologies to solve problems – these also provide the foundation for new business ideas. Examples (Urban perspective): Disruptive innovation in the hotel industry (Video) Citizen M’s revolution of the hotel industry (Video) Inside Citizen M’s flagship hotel (Video)

8. Disruptive New Venture Creation New – Old Approach • Improving a product or offering a service that is not currently available • Good research is needed before entering into this approach – look at what the customer needs and wants. • Relying on intuition is simply not enough! Example: Innovation in the Okanagan wine industry (Video)

9. Acquiring an established business If you want to venture into entrepreneurship through the purchasing on an existing business venture, you must: • Do research into the venture – what is its current reputation within the market? • Seek professional advice! Lawyers, accountants, business brokers • Find out why the business is for sale and get full disclosure on the present financial status of the business and its assets Advantages: • Less time and effort required as it is not a new business • Could already be a successful business (maybe)

10. Using franchising as a pathway to entrepreneurship Franchising Incorporates some of the independence of the entrepreneur with the larger umbrella of a corporation Relationship: Franchisee (purchaser of the franchise) and the franchisor (the seller of the franchise) Example: House of Travel (Video) (Travel agents who operate as a franchise) Advantages: Brand name appeal, a proven track record, financial assistance, training, management guidance

11. Social venturing “Social venturing marries the best of entrepreneurial innovation with cutting-edge strategies that lead to a sustainable and/or equitable planet” (Frederick et al., 2016, p. 179). • A social venture is also know in entrepreneurship as a social enterprise. Can be a: • Not-for-profit • Social purpose business • Business development service

12. Social venturing (continued) Example (Rural perspective): Vayando currently operates in rural Rwanda and Costa Rica, putting micro-entrepreneurs in emerging economies on the tourism map. Watch this video on this example of social entrepreneurship in tourism

13. TOUR 610 Seminar 2 Thanks and see you next week!

14. TOUR 610 Seminar 2 Topic: Pathways to Opportunity

15. Structure for today’s seminar: Housekeeping – administrative issues • Reading logs (first one due March 6th 3pm on Learn) Then the new material for today: Entrepreneurial objectives: The major pathways • The six common business entry pathways Discussion: What constitutes having an ‘entrepreneurial edge’? Case Studies: 14 tips for success vs. 11 pitfalls for entrpreneurs to avoid (refer to articles on Learn)

16. Entrepreneurial objectives: The major pathways Experiencing entrepreneurship can occur through: • Starting a new business • Purchasing an existing business • Inheriting a business • Being promoted within an existing business • Being brought in to manage a business

17. Entrepreneurial objectives: The major pathways There are SIX common business entry pathways: • Bootstrapping • Minipreneurship • New-New Option for business start-up OR New-Old option for business start-up • Acquisition of an existing venture • Buying a franchise • Establishing a social venture

18. Bootstrapping Defined as “starting a new venture through highly creative acquisition and use of resources” (Frederick et al, 2016, p. 159). Relies heavily on: • Networks • Trust • Co-operation • The efficient use of existing resources Requires a healthy cash flow. Staying alive is the aim of this technique!

19. Minipreneurship Defined as “consumers who create, produce and trade goods, services and experiences rather than merely consuming them” (Frederick et al., 2016, p. 161). Example: Selling goods online – focus on niche products, looking for gaps in the existing market. • Low-cost in terms of overheads • Minipreneurs’ s key focus is on inventory, customer satisfaction and new business models

20. Disruptive New Venture Creation New-New Approach • Creative ideas come through adaption or innovation. • This approach is aided through new technologies to solve problems – these also provide the foundation for new business ideas. Examples (Urban perspective): Disruptive innovation in the hotel industry (Video) Citizen M’s revolution of the hotel industry (Video) Inside Citizen M’s flagship hotel (Video)

21. Disruptive New Venture Creation New – Old Approach • Improving a product or offering a service that is not currently available • Good research is needed before entering into this approach – look at what the customer needs and wants. • Relying on intuition is simply not enough! Example: Innovation in the Okanagan wine industry (Video)

22. Acquiring an established business If you want to venture into entrepreneurship through the purchasing on an existing business venture, you must: • Do research into the venture – what is its current reputation within the market? • Seek professional advice! Lawyers, accountants, business brokers • Find out why the business is for sale and get full disclosure on the present financial status of the business and its assets Advantages: • Less time and effort required as it is not a new business • Could already be a successful business (maybe)

23. Using franchising as a pathway to entrepreneurship Franchising Incorporates some of the independence of the entrepreneur with the larger umbrella of a corporation Relationship: Franchisee (purchaser of the franchise) and the franchisor (the seller of the franchise) Example: House of Travel (Video) (Travel agents who operate as a franchise) Advantages: Brand name appeal, a proven track record, financial assistance, training, management guidance

24. Social venturing “Social venturing marries the best of entrepreneurial innovation with cutting-edge strategies that lead to a sustainable and/or equitable planet” (Frederick et al., 2016, p. 179). • A social venture is also know in entrepreneurship as a social enterprise. Can be a: • Not-for-profit • Social purpose business • Business development service

25. Social venturing (continued) Example (Rural perspective): Vayando currently operates in rural Rwanda and Costa Rica, putting micro-entrepreneurs in emerging economies on the tourism map. Watch this video on this example of social entrepreneurship in tourism