Free ebooks download ! Edhole

Free Ebooks Download
Mba Ebooks
By Edhole
Mba ebooks
Free ebooks download
http://ebooks.edhole.com

Entrepreneurship

New Venture Creation and
Control Mechanism
Professor Alexander Settles
asettles@hse.ru

Introduction to the Course
• New Venture Creation
– Entrepreneurship / Research on
Entrepreneurship
– Innovation
– Business Planning
– Finance
• Organization Theory and
Entrepreneurship and Innovation

Course Design
• Requirements
– Attendance, Participation and Readings
– Personality Assessment
– Innovation Journal
– Assessment of New Venture or
Entrepreneurial Policy/Action (in Groups)
– Exam

Entrepreneurs
Challenging the Unknown
• Entrepreneurs
– Recognize opportunities where others see
chaos or confusion
– Are aggressive catalysts for change within
the marketplace
– Challenge the unknown and continuously
create the future

Entrepreneurship: A MindsetEntrepreneurship: A Mindset
• Entrepreneurship is more than the mereEntrepreneurship is more than the mere
creation of business:creation of business:
– Seeking opportunitiesSeeking opportunities
– Taking risks beyond securityTaking risks beyond security
– Having the tenacity to push an idea through toHaving the tenacity to push an idea through to
realityreality
• Entrepreneurship is an integrated conceptEntrepreneurship is an integrated concept
that permeates an individual’s business inthat permeates an individual’s business in
an innovative manner.an innovative manner. http://ebooks.edhole.com

The Evolution of
Entrepreneurship
• Entrepreneur is derived from the French
entreprendre, meaning “to undertake.”
– The entrepreneur is one who undertakes to
organize, manage, and assume the risks of a
business.
– Although no single definition of entrepreneur
exists and no one profile can represent
today’s entrepreneur, research is providing an
increasingly sharper focus on the subject.

A Summary DescriptionA Summary Description
of Entrepreneurshipof Entrepreneurship
• Entrepreneurship (Robert C. Ronstadt)Entrepreneurship (Robert C. Ronstadt)
– The dynamic process of creating incremental wealth.The dynamic process of creating incremental wealth.
– This wealth is created by individuals who assumeThis wealth is created by individuals who assume
major risks in terms of equity, time, and/or careermajor risks in terms of equity, time, and/or career
commitment of providing value for a product orcommitment of providing value for a product or
service.service.
– The product or service itself may or may not be newThe product or service itself may or may not be new
or unique but the entrepreneur must somehow infuseor unique but the entrepreneur must somehow infuse
value by securing and allocating the necessary skillsvalue by securing and allocating the necessary skills
and resources.and resources.

An Integrated DefinitionAn Integrated Definition
• EntrepreneurshipEntrepreneurship
– A dynamic process of vision, change, and creation.A dynamic process of vision, change, and creation.
• Requires an application of energy and passion towards theRequires an application of energy and passion towards the
creation and implementation of new ideas and creativecreation and implementation of new ideas and creative
solutions.solutions.
– Essential ingredients include:Essential ingredients include:
• The willingness to take calculated risksThe willingness to take calculated risks——in terms of time,in terms of time,
equity, or career.equity, or career.
• The ability to formulate an effective venture team; the creativeThe ability to formulate an effective venture team; the creative
skill to marshal needed resources.skill to marshal needed resources.
• The fundamental skills of building a solid business plan.The fundamental skills of building a solid business plan.
• The vision to recognize opportunity where others see chaos,The vision to recognize opportunity where others see chaos,
contradiction, and confusion.contradiction, and confusion.

An Integrative Model of Entrepreneurial Inputs
and Outcomes
Source: Michael H. Morris, P. Lewis, and Donald L. Sexton, “Reconceptualizing Entrepreneurship:
An Input-Output Perspective,” SAM Advanced Management Journal 59, no.1 (Winter 1994): 21–
31.

Entrepreneurs in the UnitedEntrepreneurs in the United
StatesStates
• Reasons for the exceptional entrepreneurialReasons for the exceptional entrepreneurial
activity in the U.S. include:activity in the U.S. include:
– A national culture that supports risk taking andA national culture that supports risk taking and
seeking opportunities.seeking opportunities.
– Americans’ alertness to unexploited economicAmericans’ alertness to unexploited economic
opportunity and a low fear of failure.opportunity and a low fear of failure.
– U.S. leadership in entrepreneurship education at bothU.S. leadership in entrepreneurship education at both
the undergraduate and graduate level.the undergraduate and graduate level.
– A high percentage of individuals with professional,A high percentage of individuals with professional,
technological or business degrees who are likely totechnological or business degrees who are likely to
become entrepreneurs.become entrepreneurs.

Entrepreneurial Firms’ ImpactEntrepreneurial Firms’ Impact
• Entrepreneurial components of the U.S.Entrepreneurial components of the U.S.
Economy:Economy:
1.1. Large firms have increased profitability by returning toLarge firms have increased profitability by returning to
their “core competencies through restructuring andtheir “core competencies through restructuring and
downsizing.downsizing.
2.2. New entrepreneurial companies have beenNew entrepreneurial companies have been
blossoming in new technologies and new markets.blossoming in new technologies and new markets.
3.3. Thousands of smaller firms established by women,Thousands of smaller firms established by women,
minorities, and immigrants have strengthened theminorities, and immigrants have strengthened the
economy.economy.

Entrepreneurial Firms’ ImpactEntrepreneurial Firms’ Impact
• Entrepreneurial firms make twoEntrepreneurial firms make two
indispensable contributions to anindispensable contributions to an
economy:economy:
1.1. They are an integral part of the renewalThey are an integral part of the renewal
process that pervades and defines marketprocess that pervades and defines market
economies.economies.
2.2. They are the essential mechanism by whichThey are the essential mechanism by which
millions enter the economic and socialmillions enter the economic and social
mainstream of society.mainstream of society.

Aspects of EntrepreneurshipAspects of Entrepreneurship
Venture
Financing
Social
Entrepreneurship
Corporate
Entrepreneurship
Trends in
Entrepreneurship
Research
Entrepreneurial
Cognition
Global
Entrepreneurial
Movement
Family
Businesses
Women
and Minority
Entrepreneurs
Entrepreneurial
Education

Common Characteristics of
Entrepreneurs
• Commitment,
determination, and
perseverance
• Drive to achieve
• Opportunity orientation
• Initiative and
responsibility
• Persistent problem
solving
• Seeking feedback
• Internal locus of control
• Tolerance for ambiguity
• Calculated risk taking
• Tolerance for failure
• High energy level
• Creativity and
Innovativeness
• Vision
• Self-confidence and
optimism
• Independence
• Team building

Outline of the EntrepreneurialOutline of the Entrepreneurial
OrganizationOrganization
ImaginationImagination
FlexibilityFlexibility Acceptance
of Risks
Acceptance
of Risks

Entrepreneurship Theory
• Entrepreneurs cause entrepreneurship.
– Entrepreneurship is a function of the
entrepreneur:
– Entrepreneurship is the interaction of skills
related to inner control, planning and goal
setting, risk taking, innovation, reality
perception, use of feedback, decision making,
human relations, and independence.
( )E f e+

Typology of Entrepreneurial Styles
Source: Thomas Monroy and Robert Folger, “A Typology of Entrepreneurial Styles:
Beyond Economic Rationality,” Journal of Private Enterprise IX(2) (1993): 71. http://ebooks.edhole.com

The Dark Side of
Entrepreneurship
• The Entrepreneur’s Confrontation with
Risk
– Financial risk versus profit (return) motive
varies in entrepreneurs’ desire for wealth.
– Career risk—loss of employment security
– Family and social risk—competing
commitments of work and family
– Psychic risk—psychological impact of failure
on the well-being of entrepreneurs

2–21
Source: Douglas W. Naffziger, Jeffrey S. Hornsby, and Donald F. Kuratko, “A Proposed
Research Model of Entrepreneurial Motivation,” Entrepreneurship Theory and Practice
(spring 1994): 33.
A Model of Entrepreneurial
Motivation

Opportunity Identification:
The Search for New Ideas
• Opportunity identification is central to
entrepreneurship and involves:
– The creative pursuit of ideas
– The innovation process
• The first step for any entrepreneur is the
identification of a “good idea.”
– The search for good ideas is never easy.
– Opportunity recognition can lead to both
personal and societal wealth.

Entrepreneurial Imagination
and Creativity
• How entrepreneurs do what they do:
– Creative thinking + systematic analysis =
success
– Seek out unique opportunities to fill needs
and wants
– Turn problems into opportunities
– Recognize that problems are to solutions
what demand is to supply

The Role of Creative Thinking
• Creativity
– The generation of ideas that result in the
improved efficiency or effectiveness of a
system.
• Two important aspects of creativity exist:
– Process
• The process is goal oriented; it is designed to
attain a solution to a problem.
– People
• The resources that determine the solution.

The Critical Thinking Process

The Creative Climate
• Characteristics of a creative climate:
– A trustful management that does not overcontrol the personnel
– Open channels of communication among all business members
– Considerable contact and communication with outsiders
– A large variety of personality types
– A willingness to accept change
– An enjoyment in experimenting with new ideas
– Little fear of negative consequences for making a mistake
– The selection and promotion of employees on the basis of merit
– The use of techniques that encourage ideas, including
suggestion systems and brainstorming
– Sufficient financial, managerial, human, and time resources for
accomplishing goals

Country Level Competitiveness
© 2009 World Economic Forum
GCI 2008–2009
Country/Economy Rank Score Rank*
Switzerland 1 5.60 2
United States 2 5.59 1
Singapore 3 5.55 5
Sweden 4 5.51 4
Denmark 5 5.46 3
Finland 6 5.43 6
Germany 7 5.37 7
Japan 8 5.37 9
Canada 9 5.33 10
Netherlands 10 5.32 8
China 29 4.74 30
India 49 4.30 50
Brazil 56 4.23 64
Russian Federation 63 4.15 51
The Global Competitiveness Index 2009–2010 rankings and 2008–2009 comparisons
GCI 2009–2010

Economy Ease of Doing Business Rank
Singapore 1
New Zealand 2
Hong Kong, China 3
United States 4
United Kingdom 5
Denmark 6
Ireland 7
Canada 8
Australia 9
Norway 10
Georgia 11
China 89
Bangladesh 119
Russian Federation 120
Costa Rica 121
Brazil 129
India 133 http://ebooks.edhole.com

Innovation Rankings INSEAD 2009
1. United States
2. Germany
3. Sweden
4. United Kingdom
5. Singapore
6. South Korea
7. Switzerland
8. Denmark
9. Japan
10. Netherlands

Russia’s Innovation Capacity
64. Vietnam
65. Trinidad and
Tobago
66.Mauritius
67. Panama
68. Russia
69. Romania
70. Nigeria
29. Estonia
42. Lithuania
57. Azerbaijan
59. Uzbekistan
60. Latvia
72. Kazakhstan
79. Ukraine
98. Georgia
104. Armenia
112. Tajikistan
116. Moldova
122. Kyrgyzstan

Russia Components
• Legacy of innovation - 49
• Culture to innovate - 46
• Quality of the educational system - 41
• Quality of management schools – 66
• Intellectual property protection – 93
• Technological awareness - 91
• Firm level technology absorption - 90

United States
• Human Capacity – 1
• Culture to innovate - 2
• Quality of the educational system – 3
• Quality of management schools - 10

Innovation and the Entrepreneur
• Innovation:
– Is the process by which entrepreneurs convert
opportunities into marketable ideas.
– Is a combination of the vision to create a good idea
and the perseverance and dedication to remain with
the concept through implementation.
– Is a key function in the entrepreneurial process.
– Is the specific function of entrepreneurship.

The Innovation Process
• Types of
Innovation
– Invention
– Extension
– Duplication
– Synthesis
• Sources of Innovation
– Unexpected
occurrences
– Incongruities
– Process needs
– Industry and market
changes
– Demographic changes
– Perceptual changes
– Knowledge-based
concepts

Type Description Examples
Invention Totally new product, service,
or process
Wright brothers—airplane
Thomas Edison—light bulb
Alexander Graham Bell—telephone
Extension New use or different
application of an already
existing product, service,
or process
Ray Kroc—McDonald’s
Mark Zuckerberg—Facebook
Barry Sternlicht—Starwood Hotels &
Resorts
Duplication Creative replication of an
existing concept
Wal-Mart—department stores
Gateway—personal computers
Pizza Hut—pizza parlor
Synthesis Combination of existing
concepts and factors into a
new formulation or use
Fred Smith—Fed Ex
Howard Schultz—Starbucks

Major Innovation Myths
• Myth 1: Innovation is planned and predictable
• Myth 2: Technical specifications should be
thoroughly prepared
• Myth 3: Creativity relies on dreams and blue-
sky ideas
• Myth 4: Big projects will develop better
innovations than smaller ones
• Myth 5: Technology is the driving force of
innovation success

Free ebooks download ! Edhole

Recomendados

Recomendados

Más contenido relacionado

Destacado

Destacado (11)

Más de Edhole.com

Más de Edhole.com (20)

Último

Último (20)

Free ebooks download ! Edhole