1. 1
Warwick Business School Alumni Association magazine: summer 06

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3. 3
message from the dean 3
A s Dean of one of Europe’s
leading business schools
I am delighted that this
resources will pave the way to ensuring that we can
compete with the very best in terms of attracting and
maintaining the very best faculty and students, and also
summer’s graduation will take offering world class facilities.
our alumni community to over
20,000. I hope that we can As the academic year draws to a close and our new
inspire you all to tell our story building nears completion, it is time to bid a fond
strongly to the outside world farewell to the current Vice-Chancellor, Professor
and promote our brand, thus David VandeLinde. Throughout his time at Warwick
ensuring that WBS goes from David has been a loyal supporter of WBS and personally
strength to strength. championed the idea that WBS should enjoy the
devolved budgetary status that we now do. Without a
A tremendous boost to the School has come in the last doubt the progress made by WBS in the last five years
few months with a gift to WBS of £500,000 from the would not have been possible without David’s support.
University’s Chancellor, Sir Nick Scheele. I would like to We wish him the very best in his retirement.
reiterate my personal thanks for this gift. Sir Nick, who
was President and COO of Ford Motor Company until WBS is regularly described as having fostered an
February 2005, said: ‘Throughout my career in business, entrepreneurial spirit in its students and this edition
I have supported the concept of leading by example and of nexus gives you a glimpse of that. I hope you enjoy
accordingly have donated a gift of £500,000 in the hope reading it as much as I have. I look forward to hearing
that others will follow suit so that we can begin to redress your own tales of entrepreneurship over the years to
the balance with our friends [at business schools] in the come – do keep us posted!
USA and compete on a more even playing field.’
I am delighted to announce that this very generous
gift was followed shortly after by several other major
donations to WBS from graduates. As funding from the
government continues to play a less significant role in our
sources of portfolio income here at WBS such additional
contents
4–7 WBS news 7 9
8 teaching entrepreneurship
Nigel Sykes
9 getting started
Robbie Vann-Adibé
10 from Dragons’ Den to ER
Professor Harry Scarbrough
11 in mint condition
Tim Morgan 20 22
12 the habitual entrepreneur phenomenon
Professor Paul Westhead
13 smart choice
Dr Frank Craig 11
14 entrepreneurship and development finance
Andrew Trigg
15 social entrepreneurship
Dr Paul Tracey 19
16 WBS development programme
17 WBS alumni board
18 volunteers in action
19 overseas event reviews
20–21 UK event reviews
22–23 alumni news

4. 4 nexus: summer 06 research review
WBS’s Industrial Dr Simon The second is a comparative study of
Relations Research Collinson, MSM, European multinational firms in China,
Unit (IRRU) has recently elected also looking at joint-ventures and alliances.
been awarded a Lead Ghoshal A central question is: who is learning
major contract to Fellow under what in such partnerships and why does it
provide information the ESRC and matter? The study, run jointly with Mark
and analysis EPSRC sponsored Easterby-Smith at Lancaster University,
Mark Hall IRRU for a new EU Simon Collinson MSM Advanced Institute examines the possibility that European
research network of Management firms are ‘breeding their future competitors’
monitoring developments in industrial (AIM), has commenced work on two in China. The findings will help EU firms
relations, working conditions and corporate further ESRC funded projects. One to better understand the challenge of engaging
restructuring. As well as providing a range study British small and medium-sized with China whilst retaining their own
of inputs focusing on UK developments, enterprises (SMEs) in China to understand competitive advantages. Simon adds, ‘A
IRRU is one of just three institutes the challenges they face in alliances and number of UK and European firms already
across the EU chosen to coordinate the joint-ventures with Chinese firms. The involved in the study have been introduced
preparation of a series of comparative, project will provide insights into the by WBS alumni. I’m interested in hearing
analytical reports on key EU-wide topics. problems of entering and operating in from any alumni working for UK or EU
The contract for this work is worth up China for firms that have limited resources firms that are involved in joint-ventures
to €275,000 per year and will run for and expertise but see huge opportunities in or alliances in China who are willing to
four years. The project started in March, this emerging market. participate.’ E simon.collinson@wbs.ac.uk
supervised by Principal Research Fellow
Mark Hall.
Much discourse innovation include not only managers and
about public staff, but also politicians and service users.
The new network, sponsored by the
services reform Public sector innovation needs to be judged
Dublin-based European Foundation for
appears to hinge against different criteria of success from the
the Improvement of Living and Working
on the need for private firm. For the latter, organisational
Conditions, is intended primarily to serve
public organisations advantage is the metric of success, whereas
the needs of a core audience of employers’
to become more the measure for public services is public
associations and trade unions at national
Jean Hartley IGPM innovative. Yet, value, which concentrates on benefits
and European level, governments and EU
innovation in the for the whole of society not solely the
institutions. It will replace three separate
public service sector is poorly understood, individual organisation.
EU ‘observatories’, including the European
and there is an over-reliance on models of
Industrial Relations Observatory, which
innovation from the private sector. Jean’s research is funded through the
IRRU has been part of since its inception
Economic and Social Research Council’s
in 1996, and the more recent European
Research, workshops and teaching by Advanced Institute of Management (AIM),
Working Conditions Observatory, for which
Professor Jean Hartley, of the Institute of of which she is a Public Service Fellow.
IRRU has provided UK data since April 2005.
Governance and Public Management, aim She also leads a large research programme
to fill this gap. Her work has developed examining the diffusion of innovation in
Dr Lynne Oats,
ideas and models of practical value to local government. Her major report on
Senior Lecturer
policy-makers and practitioners as well as innovation was recently published on a
in Accounting
contributing to academic knowledge not government website.
and Taxation,
only about the public sector but also the
has received an
private and voluntary sectors. W www.communities.gov.uk/pub/176/Inno
award from the
vationanditsContributiontoImprovementA
Lynne Oats AFIN Centre for Business
The public service sector is replete with ReviewExecutiveSummary_id1500176.pdf
Performance,
examples of innovation but the drivers of
Institute of Chartered Accountants in
England and Wales, to investigate the
changing role of accounting in the Research by Dr Sue professional qualifications by managers
corporate tax compliance process. The Bridgewater, MSM and prospective managers. This relatively
project, to be conducted with Penelope group, revealed recent interest in gaining professional
Tuck, University of Southampton, will that over 500 management qualifications is already
examine the ways in which the recent trend managers for the making a real difference to management
towards alignment of accounting and tax four top English performance and thus length of tenure in
profits in the UK affects the relationship divisions have been management posts. Both the Pro License
between HM Revenue and Customs and dismissed from their and the Certificate in Football Management
Sue Bridgewater MSM
large corporate taxpayers. post since 1992, run by WBS are proving increasingly
bringing damaging attractive to managers and prospective
Mark Hall and Professor Mike Terry, IRRU, instability to the game. However, she also managers seeking to add managerial insight
with Professor John Purcell, University of outlined how a new professionalism in the to their considerable football skills.
Bath, have been awarded a major two to four post of manager is already achieving results
year research project for the Department on the pitch and could thus help managers To download the report
of Trade and Industry. The contract, worth stay in post longer. w www.wbs.ac.uk/downloads/research/
£190,000 over the first two years, involves football-managers-0106.pdf
assessing organisational responses to the Sue’s report demonstrated a significant For more information on the Certificate in
recent Information and Consultation of change in the fortunes of managers brought Football Management
Employees (ICE) Regulations. about by the increasing uptake of relevant w www.wbs.ac.uk/executive/football.cfm

5. research review nexus: summer 06 5
A new report from by Government to build a new fleet of CSME hosted the
Dr Catherine stations will undermine the development International
Mitchell and Dr of the far more important renewable and Conference on the
Bridget Woodman demand reduction technologies which are Financing of SMEs in
of the WBS Centre necessary to reduce carbon emissions from Developed Countries
Catherine Mitchell and
Bridget Woodman CMuR
for Management the remaining 92 percent or so of energy in April, building
Stuart Fraser CSME
under Regulation demand. For more information on the on the outcomes
(CMuR) which examines the contribution report, published by WBS together with and response to the ground-breaking UK
nuclear power could make to the UK’s environmental think tank Green Alliance research into SME finances by Dr Stuart
energy ‘mix’, says that if Government opts w www.wbs.ac.uk/news/releases/2006/04/ Fraser, WBS Senior Research Fellow, (2004
to take up the option of new nuclear build, 13/Nuclear/puts/renewable UK Survey into SME Finances).
it risks becoming locked into expensive
technology that will make it harder WBS, working with University departments Computer Science and Mathematics, has been
overall to reduce carbon emissions. The awarded £3.8 million in the second round of the Science and Innovation Awards announced
authors say that while nuclear power is a by the Engineering and Physical Sciences Research Council (EPSRC). The award is to set up
low carbon technology which provides 8 the Centre for Discrete Mathematics and its Applications led by Professor Mike Paterson of
percent of energy demand, a commitment Warwick with Professor Bo Chen as a member of the Executive Team leading the WBS input.
hot off the press
Essential Quantitative The Strategy Pathfinder Multi-Asset Class Investment
Methods for Business by Dr Duncan Angwin, Strategy by alumnus Guy
Management & Finance, MSM, Stephen Cummings, Fraser-Sampson (DLMBA
3rd edition by Les Victoria University of 85–9), published by Wiley,
Oakshott, Practice Link Wellington, and Chris claims that if UK pension
Manager/Senior Teaching Smith, University of funds had practised multi
Fellow, ORIS. A concise, Adelaide (formerly at WBS), asset class investing during
accessible, comprehensive published by Blackwell. Built the 1990s then the present
introduction to quantitative techniques around 82 micro-cases of real-life problems funding deficit would not
emphasising business relevance and faced by companies and executives, drawn exist and the recent spate of closures of final
discussing the challenges of problem- from a rich tapestry of business activities salary pension schemes would not have
solving in the real world. across Africa, the Americas, Asia, Europe been necessary.
w www.palgrave.com/resources/btu/ and Oceania. w www.blackwellpublishing. w eu.wiley.com/WileyCDA/WileyTitle/
Business.asp#Quantitative com/book.asp?ref=1405126132&site=1 productCd-0470027991.html
Operations and Process Marketing Management Taxation – Policy and Practice,
Management – Principles and and Strategy was originally 13th Edition 2006/2007 by
Practice for Strategic Impact developed by the late Peter Andy Lymer, University of
co-authored by Nigel Slack, Doyle, WBS Professor of Birmingham, and Lynne
Robert Johnston and Stuart Marketing. Now in its Oats, WBS Senior Lecturer
Chambers, WBS Operations 4th edition, published by in Accounting. Published by
Management, with Alan Pearson Education, Philip Fiscal Publications. Written
Betts, published by Pearson Stern, Senior Lecturer in in an accessible style with
Education. Approaching the subject from Marketing and Strategic Management, has many examples, activities and questions
a truly managerial perspective, the book updated this comprehensive but concise throughout, this textbook gives a thorough
inspires a critical and applied mastery of the and practical management guide to the understanding of the UK’s taxation
core principles and processes fundamental important ideas in advanced Marketing principles and current practices.
to managing business operations. and Strategy. w www.fiscalpublications.com
w www.pearsoned.co.uk/slack W www.pearsoned.co.uk/doyle
10% off We are pleased to be
able to offer all WBS
alumni and staff not only a 10% reduction on
The Changing Institutional International Business by
Face of British Employment Alan M Rugman, Professor this book – but through a generous offer from
Relations, jointly edited by of International Business, the publisher – a 10% reduction on ALL their
Professors Linda Dickens of Indiana University, and Dr books for any orders placed before the end of
WBS and Alan Neal of the Simon Collinson, Senior 2006. If you are a current student of WBS the
Law School. Published by Lecturer in International deal is even better – 25% discount off this title
Kluwer Law International, Business, WBS. as well as also qualifying for the 10% deal off
the volume marks the 30th Outsourcing. Emerging the publisher’s other books. All orders must
anniversary of the Advisory economies. Environmental impacts. Just quote code:WBS2006.10 for the 10% alumni
Conciliation and Arbitration Service (Acas) three of the many key issues currently deal and WBS2006.25 for the 25% discount
and provides a contemporary picture facing international businesses, all of which for students. Then quote the publishers web
of the institutional landscape of British are examined in the fourth edition of this address and email:
employment relations. well respected textbook.
W www.aspenpublishers.com w www.pearsoned.co.uk/rugman e wbsoffer@fiscalpublications.com

6. 6 nexus: summer 06 WBS news
generous gift the fifth annual
Sir Nick Scheele, Chancellor Warwick-Acas Lowry lecture
of Warwick University has
donated half a million The annual Warwick-Acas Lowry lecture was held at WBS in March,
pounds to Warwick with Alan Johnson MP, Secretary of State for Trade and Industry,
Business School and hopes scheduled as the guest speaker. At the last minute the Minister had to
it will encourage others to remain in London and sent a video introducing his lecture entitled
consider supporting the ‘The World of Work’. The lecture, delivered by one of his officials,
University. Sir Nick has had set out the Government’s key priorities and argued that addressing
a long association with the these calls for a change in the role of employment legislation.
University and was once a
member of the WBS Board; w users.wbs.warwick.ac.uk/group/irru/publications/warwick_papers
he became the University
of Warwick’s fourth
Chancellor in March 2002.
Sir Nick has said, ‘The
competition between
UK and USA universities is a fact of life which can be seen most
significantly within our business schools. Although USA business
schools got a head start, Europe, and particularly the UK have
demonstrated that the provision of excellent business education
can be found on this side of the water too. However, there is
still one area where I perceive that the UK is at a considerable
disadvantage to our North American competitors. The funds
donated to universities by alumni and other beneficiaries in the
USA dwarf the sums donated here. Although European Alumni
now compete favourably with their North American counterparts
in the salary stakes, the culture of giving to your university simply
has not developed here as it has in the US.
Many of you will know that I have had a long involvement with
the motor industry, but it has not necessarily been cars that
have motivated me but practice of business and the science of
management itself which is why I have endowed Warwick Business
The lecture provided an ideal opportunity to launch a book jointly
School with this gift.’
edited by Professor Linda Dickens of WBS and Professor Alan Neal
of the Law School (see hot off the press P5). Rita Donaghy, the
WBS Scarman Road Phase 3 Stage 1 development Chair of Acas (centre) formally launched the book and Linda is
pictured third from right.
moves towards completion in September 2006
first fellows
The National School of Government has named Dean Howard
Thomas, and Professors John Benington, Jean Hartley and Colin
Crouch of WBS among the first Fellows to its Sunningdale Institute
– a group including internationally rated academics and industry
figures, and offering development to government and public
service organisations on operational and delivery issues. WBS has
the biggest involvement of the participating organisations.
w www.nationalschool.gov.uk/programmes/index.asp
new degree at WBS
WBS is launching a new Masters degree, the MSc in Management,
starting in October 2006. The degree has been designed to meet
demand from top quality graduates in subjects unrelated to
STOP PRESS: The Times Good University Guide 2007 again business, who wish to follow a career in management but do not
rates WBS in the UK top three for both Business Studies and have the work experience necessary for The Warwick MBA.
Accounting & Finance. The University as a whole maintained
8th place out of 109 UK universities. w www.wbs.ac.uk/go/mm

7. WBS news nexus: summer 06 7
multimedia at WBS winning team
We now have the ability to record selected At a lunch to celebrate the end of the
events at WBS on high quality digital video, spring term, a £1,000 prize was presented
edit them and post them on the web site as to the winning team of MBA students for
a video file, convert them into audio files outstanding group project work on the
for podcasts and burn them on to DVD to Practice of Management (PoM) module
send to anyone who wants a high quality for the academic year 2005–06. The prize
copy. Over recent months we have recorded was sponsored by the Fund for Academic
press conferences, guest lectures including Excellence, thanks to generous donations
presentations from IBM and Mary Jo Bane from alumni, friends and staff of WBS.
Sailing to success from Harvard, posted a podcast by Dr
Bridget Woodman on renewable energy and
recorded the Winter Graduation assembly.
A WBS crew of MBA students reached
second place in the Global MBA Trophy,
‘It is predominantly a tool for news
organised by London Business School,
gathering and assisting the external
losing only to SDA Bocconi’s crew. The
promotion of the Business School,’ said
crews competed for three days, in six
WBS Director of Communications, Vincent
fleet races in the port of Piraeus, Greece.
Hammersley. ‘However, we are fortunate
Crew members: Bobo Baudin, Skipper
to attract first class speakers and if we can
(Sweden), Odul Akin-Rousk (Turkey),
capture these presentations and other
Panos Anastasiou (Greece), Gaudenzio
selected events I see this as a major benefit
BonaldoGregori (Italy), Evangelos
to both alumni and future students.’
Christodoulou (Greece), Filippo Riva
(Switzerland/Italy), James Smith (South The eight members of the team were:
Africa/UK). winter graduation Michael Brockmann, Lee Fisher, Kartik
Kumar, Lillian Mbindyo, Irina Motovilova,
The team now competes in the SDA WBS hosted a buffet lunch for over Richard Walker, Abdoul Wane and
Bocconi MBA’s Cup 2006 (Santa Margherita 100 WBS graduands, their families and Emmanuel Sissimatos.
and Portofino, Italy, 21–24 September). friends, attending the Winter Graduation
If anyone would like to be part of the ceremony at the University of Warwick on inner courtyard of the building. Howard
WBS crew, or can identify sponsorship Wednesday 25 January. Thomas, the Dean of WBS, gave a speech
opportunities for the team, please contact congratulating the graduands on their
Panos Anastasiou. The Scarman Road lounge was extended achievements and Head of Alumni
by the installation of a specially Relations, Nathalie Walker, welcomed
e panos.anastasiou05@mba.wbs.ac.uk commissioned marquee within the them to the WBS Alumni Association.
media round-up coverage in the Middle East. Still abroad, WBS WBS alumni have been equally active.
Dean Howard Thomas made news in the Thomas Sparrvik (DLMBA 95–00) was the
In the year of football’s World Cup, it academic press of the USA when he was made subject of an article in an international
was particularly appropriate that Dr Inaugural Fellow of the Strategic Management edition of the Financial Times on how
Sue Bridgewater kicked off WBS media Society, joining an elite list that includes his MBA has boosted his career, David
coverage with a press conference at the Harvard’s Michael Porter and business guru McNulty (MPA 00–5) was profiled in
Warwick in London office. She presented Gary Hamel. national media about his career success in
the first stage of her research into trends the public sector, and Nicholas Yeo (MSc
in professional football management. Professor Colin Carnall, as Director of Fin Maths 98–00) was quoted widely in
Every seat in the room was taken, and Executive Programmes at WBS, is regularly Asian media and the Reuters newswire on
the resulting media reports covered the featured in training and development the performance of stocks in the Asian
full range from international satellite publications with expert comment and markets. It is good to see other alumni in
television to local newspapers. To date, articles on his latest book. Professor Andrew the news due to successful career moves
we have logged 50 different sorts of media Sturdy’s research into the use of consultants, and promotions (see alumni news P22/3).
coverage on this topic alone. particularly in the public sector, formed the
basis of a programme for BBC Radio 4’s File on There just isn’t room to list all the alumni
Other faculty have been raising the Four. Dr Catherine Mitchell and Dr Bridget and faculty who have contributed to
WBS profile too with media coverage. Woodman are fighting a two-woman battle the media for their particular areas of
Professor Martin Cave, Head of the on the side of renewable and sustainable expertise or career success. Keep up to date
Centre for Management under Regulation energy sources, in an effort to counter the with WBS in the news online – go to our
research centre, is an international and nuclear industry’s current push for favourable recently upgraded web pages at:
influential figure in the development media coverage. Catherine has appeared on
of telecommunications. He chaired the BBC2’s Newsnight and written articles in The w www.wbs.ac.uk/news
ground-breaking Telecoms Regulatory Guardian, while Bridget has been interviewed
Authority 2006 Development Review by local radio and contributed to BBC TV’s
Panel in Bahrain, which achieved wide Countryfile programme.

8. 8 nexus: summer 06 focus on entrepreneurship
teaching entrepreneurship
Nigel Sykes, Principal Teaching Fellow, CSME, gives an insight into his approach to teaching entrepreneurship.
I walk around and notice people speaking
in acronyms. An example is the classic
four Ps of marketing. Well, here are my 3 Ps:
What we try to encourage in the
Entrepreneurship teaching at WBS is that
each student is a remarkable talent and a
to translate this into reality. What we
really do at WBS is to tease out latent
entrepreneurial talent. Some say ‘this
what have Pinter (Harold the playwright), good entrepreneurial team recognises each isn’t for me’ and that’s a good outcome.
Plato and Prostitution NOT got to do with other’s talents and encourages different Some, having studied the course say ‘I now
the way I teach Entrepreneurship? leadership capabilities to take over the know who I am and where I fit within an
helm of the business as it and the landscape entrepreneurial team’, which is brilliant.
Harold Pinter’s ‘The Caretaker’ is set in a it traverses, changes.
one room flat and there are only two parts Then there are those who may have felt for
in the play. One, the owner of the flat, and Some are good ‘envisioners’ and lead the some time that they had a burning desire to
the other, a man staying with him, who has creativity phase and principal forming get something started, and they find they
no home and seemingly no real prospects stage of the business venture. Others can fly, ignoring those negative voices that
either. That is until, we learn, he can get are good ‘enablers’ who lead the process had held them back for so long... again,
to Sidcup to collect his papers (his MBA?) and strategy forming stage and finally a very worthwhile and significant outcome.
and then he believes everything will be the ‘enactors’, the practical ‘doers’, even
okay. I sometimes feel that the MBA can be specialists. Everyone in the team gets to So I suppose Entrepreneurship is taught at
seen like that but Entrepreneurship is more know and appreciate each other’s skills and Warwick so these 3 Ps can be avoided. In
about developing the individual rather talents and learns to recognise, encourage summary, we’re more about recognising
than focusing on the qualification. and release each other. and releasing entrepreneurial talent and
capability, developing an encouraging
Finally Prostitution, the last of the 3Ps rather than a critical culture, and helping
we do not teach on the Entrepreneurship people to fly out of the restrictions that
Everyone in the team gets option, you will be pleased to know! What can be imposed by more controlling and
on earth do I mean? hierarchical structures out there.
to know and appreciate each
other’s skills and talents and To illustrate, I taught a session at a local
school recently and the students thought,
learns to recognise, encourage ‘Here is a man from Warwick Business
and release each other School, and he is going to talk about
the author in minute
Entrepreneurship. We will go and hear
about how to acquire funding and make Nigel’s background
money.’ In the first ten minutes there was is in sales and retail
Now to Plato who gave us the notion of management,
a stunned look on their faces as I avoided
marketing and outlet
a republic and Platonic dualism. Born talking about money at all. development. He is
into a wealthy ruling family in Greece, the former Enterprise
I’m sure he was a bit put out when civil So often the expectation is that the teacher Agency Director
unrest saw his family fall from favour. He of Entrepreneurship will just talk about and manager of
pilot Community
went off and met a few Gnostics, mystics where winning ideas come from and then Programme project
and thinkers of that time (a bit like going how to make your proposition attractive linked to industry
to WBS I suppose) and came home with to a banker or investor who will then put with Birmingham
a cunning wheeze. If we can encourage up the money. I would even go so far as Chamber of Industry and Commerce. Nigel
people to fit into a system that is controlled to say that in extreme cases people find works in a ‘catalytic’ role in helping to release
capability and talent through individual,
by the state (him) and has elected officials themselves saying things like: organisational and
(supposedly but really his mates) we will inter-organisational opportunities.
create a republic or corporate structure
and there will be order and everyone will What position would you like me in? Research Interests: family business succession;
behave (be controlled in other words by social entrepreneurship; understanding
What do you want me to do?
success and evolution of firms particularly in
them) and I will be the person whose name What do you want to hear from me? terms of marketing and team development;
and reputation will live on for ever as the international economic regeneration through
one who thought of this cunning idea and ... so that I can get the money I need for small business and entrepreneurship,
plan. Platonic Dualism and the Republic my business. This is so like the oldest particularly in Eastern Europe, Latin America,
DPRK (North Korea) and Zimbabwe.
he created is a dangerous idea really, when profession in the world isn’t it? And we can
you consider that Gallup have found that end up being slaves to money.
over 80 percent of 1.2 million managers
interviewed by them were not employing It is a challenge teaching Entrepreneurship
their talents and capabilities in their work, beyond the theoretical constructs and
on a daily basis.

9. nexus: summer 06 focus on entrepreneurship 9
getting started
Robbie Vann-Adibé (MSc MSOR 84–5) is one of WBS’ most successful entrepreneurial alumni, with over 20
years of experience in technology, start-ups, consulting and financial services in the USA and Europe.
R obbie was most recently the turn-
around CEO of Ecast, a San Francisco
based digital jukebox company. He
whereas in later years I developed a very
different set of criteria for what to look for
in a workplace – which were:
Thirdly, IPOs are becoming harder for start-
ups to achieve given the cost of compliance
and the capital markets receptivity.
developed Ecast from a start-up to an • Do you like the people? If you like them,
operational enterprise, paving a clear path you’ll be willing to take their input The fourth trend is the emergence of a
to success in a proven multi-billion dollar • Can you learn something from the people new breed of acquirers who are prepared to
market, stimulating users’ appetite for you’ll be working with? This probably acquire companies just on the basis of their
delivery of the best internet-based content means they are good at what they do and people and technology and not as a self-
– anywhere, any time. will satisfy their customers sustaining business.
• Are people having fun? If they are, then it
Robbie came to campus in February 2006 probably means the working environment So given this chasm between entrepreneurs
to share his wealth of experience with will be productive; their customers and established venture firms, Robbie
Undergraduate, Specialist Masters and satisfied and the place is functional strongly believes there is an opportunity
MBA students. See the box below for a for a new style of Venture Firm to work
few of his top insider tips on the road to Technology start-ups – the basics with entrepreneurs before they receive
entrepreneurship. • If you can’t afford to take 12–18 months established venture capital, or are acquired.
off with no salary – don’t do it! He is in the process of creating such a firm.
A perspective I wish I had had at the • Consulting is a great perch from which to
beginning of my career come up with new ideas – it’s essentially Robbie’s final piece of advice is, ‘Don’t get
‘When I began my career, the criteria I used people paying you to tell you their so focused on the destination that you
to determine where to work and who to problems and come up with solutions forget to enjoy the journey.’
work for were very different – I looked at • Try to engage a trusted resource with
things like salary, title, job description etc, relevant expertise early to help vet your
idea(s)
the author in minute
A few big lessons Creating a team
• Technology is almost impossible to Robbie is happily
Work in a big organisation/corporation develop alone married to another
Warwick alum,
first – you will learn a huge amount and • My experience suggests that you need
Linda, who he met
it will stand you in good stead for start- at least two people to start a successful during his time at
up activity and securing VC funding technology based venture – the technician Warwick, and
– or put another way, make your early and the business person considers his two
children his greatest
mistakes on someone else’s payroll. • You are better off with people you’ve
start-up projects ever.
worked with and knowing what they are
Don’t over-plan – go with the flow good/bad at Robbie started his career as a developer on Wall
• Find your ‘mirror’ – having someone Street, building trading and clearing systems at
– you never know where your next Morgan Stanley and Credit Suisse First Boston.
opportunity may come from. around who spends all the time agreeing He helped launch several start-up technology
with you is a waste of salary! companies including Seer Technologies, a CASE
Learn to do something really well. • ‘Test drive’ working together – work tools firm. He did a stint in consulting as a Senior
together to refine your idea and see what Associate at Booz Allen Hamilton in San Francisco,
where he led strategic consulting initiatives. He
Don’t burn bridges (aka shut the door that feels like held various senior positions at global software
but always leave a window open) – in giant, Oracle, and was Vice President of Product
many industries you’ll meet the same Always scanning the horizons for Marketing at start-up Illustra, an object-relational
opportunities, Robbie has begun to focus database company acquired by Informix. Robbie
people at different junctures of your co-founded Viant in 1996, a web-consulting
career and it’s best that they think well on the venture capital industry that has company, leading its global expansion. Viant
of you. operated in the USA for some 30+ years. completed an initial public offering in June 1999
According to Robbie, ‘There are four on NASDAQ.
Cultivate your network – stay in touch trends creating new opportunities in this
An active angel investor, he was an early investor
with colleagues – you never know when area. The first we are seeing is an increase
in companies such as Inspired Gaming, Volantis
they might need you, or you them. in the number of entrepreneurs who are and Sidestep.
starting businesses early in their career,
Stay healthy – success without your bootstrapping their companies and are not Robbie is establishing an early stage venture firm
in California with several VC friends (remember
personal health is the wrong result. attracted to venture capital. The second is
that advice about working with people who you
that venture capitalists are enjoying ‘large will enjoy the journey with?) helping to advise and
Don’t be intimidated by people smarter fund dynamics’ which preclude them from nurture start-ups in the San Francisco Bay area.
than you – hire them. systematically making small, early stage
investments.

10. 10 nexus: summer 06 focus on entrepreneurship
from Dragons’ Den to ER
Professor Harry Scarbrough reports on current Innovation, Knowledge & Organisational Networks (IKON)
research group projects.
I nnovation is generally held to be
critical to long-run success in the
global marketplace, yet is something
challenges of exploiting breakthroughs
in scientific knowledge to improve
medical practice. At the moment, such
The reasons for this have to do with the
dense clustering of leading science and
business research centres in specific
that many firms do badly or not at all. breakthroughs often fail to reach hospitals, regions of the USA (especially Boston)
This is not generally due to a lack of new even though patients are in desperate need and also the different career paths that
science and technology opportunities of the new treatments they might bring. people follow in the two countries. For
(though UK firms do still under-invest This project draws on IKON members from example, it is common to find a clinician
in R&D). It has a lot more to do with the universities of Warwick (Jacky Swan, working in a hospital in the USA who
the skills and organisational capabilities Anna Goussevskaia, Ademola Obembe), is also simultaneously working with a
needed to exploit and commercialise such Coventry (Maxine Robertson), Leicester biomedical company. This does lead to
opportunities. This challenge involves (Mike Bresnen) and Bentley College, USA, ethical dilemmas – see episodes of the
firms being able to simultaneously explore (Sue Newell). Their study has looked at the USA TV series ER for examples. But, in
and exploit knowledge – a big challenge reasons for failure and delay in this process, general, commercial arrangements between
because these tasks require very different and whether experience from the USA has clinicians and private companies are seen
types of management. anything to teach us in the UK. as more acceptable in the USA than the UK.
This is an area where the IKON research Overall then, the study has found that
group is carrying out leading-edge research. in the UK, there is a greater degree
IKON is based at Warwick but is networked of separation between professional
This ability to select
with other universities in the UK, USA and groups and between public and private
Brazil. It also works closely with KIN (the (and reject) innovation organisations. This means that there is
Knowledge and Innovation Network), a opportunities is critical to more of a need to establish ‘bridging’
consortium of leading international firms, mechanisms to connect the different
including Schlumberger, Conoco Phillips,
successful commercialisation. disciplines and/or different organisations
Masterfood, PwC and others. Understanding how decision- involved. By contrast, in the USA, these
makers inside and outside groups and organisations are already more
One of IKON’s current projects is tightly ‘bonded’.
examining the exploration-exploitation firms do this successfully, and
challenge through a collaborative study maybe how it differs between KIN activities are described on its web site
with Boston University in the USA. I the UK and the USA, should w www.ki-network.org
am directing this study, which involves
identifying the way in which groups such be a significant contribution
as venture capitalists and corporate venture to the debate on how the UK the author in minute
teams make investment decisions on new
technology opportunities. The challenge
can make better use of the
here – echoed by the BBC TV series knowledge produced by its Harry Scarbrough is
Dragons’ Den – where entrepreneurs pitch world-leading universities and co-founder of the IKON
Research Centre and
their ideas to secure investment – can be
likened to the successful venture capitalist’s
research institutions the Knowledge and
Innovation Network
ability to identify two or three attractive (KIN). He is also
propositions from the hundreds of business currently Director of a
plans received every year. This ability to major ESRC research
programme on ‘The
select (and reject) innovation opportunities Their work (still ongoing) shows that evolution of business
is critical to successful commercialisation. the exploitation of most scientific knowledge’ which
Understanding how decision-makers inside breakthroughs depends on scientists encompasses a number of projects examining
and outside firms do this successfully, from various disciplines working together the creation and exploitation of knowledge,
and maybe how it differs between the with business experts and clinicians. including his own study (jointly funded
with the Cambridge-MIT Initiative) of ‘The
UK and the USA, should be a significant For example, the development of tissue dynamics of networked innovation’.
contribution to the debate on how the engineered products (used in cartilage
UK can make better use of the knowledge repair and wound treatments) needs Research Interests: management of knowledge
produced by its world-leading universities medical scientists to collaborate with and learning in organisations; role of
social networks in innovation processes;
and research institutions. clinicians, materials scientists, biologists,
commercialisation of innovation.
geneticists, venture capitalists and
Another IKON study (co-funded both by lawyers. The team refers to this activity as
the ESRC’s EBK programme mentioned ‘interactive innovation’ and reports that,
above and the EPSRC Warwick Innovative in general, the USA is better equipped to
Manufacturing Centre) focuses on the support this kind of innovation.

11. nexus: summer 06 focus on entrepreneurship 11
in mint condition
Tim Morgan (BSc Accounting & Financial Analysis 94–7) is Commercial Director of Mint Digital, a leading
new media company that creates concepts for interactive television. Here Tim explains how he came to join
forces with fellow undergraduate Andy Bell (BSc Economics 94–7), who started the company in 2004.
‘A ndy and I originally met at Warwick
as undergraduates in 1994. We were
separated on graduation in 1997 as our
careers went on divergent paths. Andy
went into interactive television whilst I
joined Ernst & Young as a trainee chartered
accountant. After qualifying, I spent the
next five years in mergers and acquisitions.
‘In 2004 Andy started Mint Digital, an
innovative new media company making
interactive television. I had always hoped
that one day we would run a business
together, so when he told me about Mint
Digital, I offered to lend a hand. Multi
award winning interactive designer Noam
Sohachevsky joined in November 2004 and
I started to get involved at about the same
time.
‘I began by helping with financial and
commercial matters in my spare time since
I still had a day job working in acquisitions.
By the end of 2005, the company had
developed to a stage where I had to make a
decision; to continue my career in the City
or to go full time at Mint Digital. I loved Left to right: Andy, Tim and Noam
the work I was doing for Mint so much that
when the opportunity came along to join
full-time, I took it without hesitation.’
‘The thing I am most grateful to WBS
Mint Digital has developed a reputation for
meaningful innovation, punchy content
If you start a for is the bread and butter financial
and commercial education. As an
and effective design. The company has business, I think it is undergraduate, it is easy to be seduced by
been responsible for several successful the strategic side of running a business,
web based concepts for television clients imperative to work but it is the practical day-to-day issues that
including Channel 4, Discovery USA, and are most fundamental when it comes to
RDF Media. with people you like getting started.
Since the start of 2006, Mint has attracted
and admire ‘WBS is the perfect nursery for anyone
private equity funding and has won with entrepreneurial ambition. This is
many awards for its work. Most exciting because of the quality of the people at the
of all, at the annual MIPTV (international Tim continues: ‘In Andy and Noam I School, many of whom have a wealth of
television) festival in Cannes in April, have partners who are not only extremely entrepreneurial experience themselves.
Mint was crowned the winner of a BBC talented but who I get on with like a house Also there was a focus on corporate case
sponsored competition to develop the on fire. I also think that you should only studies that demonstrated the practical
cutting edge media concepts of tomorrow. start a business if you passionately believe application of the financial and strategic
in what you are doing since it requires a theories that I had learnt.
This summer, Mint is launching lot of hard work and it is easier if you enjoy
‘Bloombox’, a web application that makes yourself. ‘Most of all, my experience at WBS was
it easy for media companies to acquire fun. I really look at back at my time at WBS
user generated content. ‘Bloombox’ is an ‘Finally, the most fulfilling thing of all is fondly and I met a lot of great people while
example of the type of product that puts being able to be true to yourself and stick to I was there.’
Mint at the centre of the convergence your principles.
between old and new media. w www.mintdigital.com

12. 12 nexus: summer 06 focus on entrepreneurship
the habitual entrepreneur phenomenon
In a forthcoming book, Paul Westhead, WBS Professor of Enterprise, provides the first systematic study of
habitual entrepreneurs. Here he reveals the key findings and implications of his research.
Despite media hype, case study evidence of sales or employment growth. Habitual opportunities, support agents need to
suggests that not all habitual entrepreneurs entrepreneurs who had previously ‘failed’ improve the provision of information.
who own more than one business, either reported lower levels of living standards.
sequentially (serial entrepreneurs) or Habitual entrepreneurs also require
concurrently (portfolio entrepreneurs), Human capital: Habitual entrepreneurs assistance with converting imagination,
are consistently successful. My book is were less likely to focus on their perceived creativity and innovation into better
based on survey evidence involving a technical capability. Superior firm quality opportunities that are problem/
representative sample of 730 private firms performance was associated with highly market focused with greater wealth creating
in Great Britain. A human capital approach educated entrepreneurs and those leveraging potential.
was used to explore the general and specific managerial and entrepreneurial capabilities.
profiles of habitual entrepreneurs with Weaker firm performance was linked Novice entrepreneurs need to be made
prior business ownership experience with entrepreneurs citing only technical aware that simply being in possession of
and novice entrepreneurs with no prior capabilities. technical knowledge, and a related idea,
business ownership experience to leverage. does not guarantee a successful business.
The contribution of business ownership Key implications Novice entrepreneurs should be encouraged
experience vis-à-vis other dimensions Business ownership experience: The assets to use sources of information utilised by
of human capital was explored within a and liabilities of business ownership habitual entrepreneurs.
multivariate regression framework. experience need to be considered. Habitual
entrepreneurs possess both the inclination Failure: The view that ‘failure is the fuel
Key findings and ability to identify opportunities but of success’ was not validated by this
Scale: Habitual entrepreneurs owned 52% of some lack the skills and capabilities to study. Initiatives supporting ‘failing’
surveyed firms. In total, 162 firms involved exploit them fully. entrepreneurs to return to entrepreneurship
serial entrepreneurs whilst a further 216 may be promoting a culture of failure.
firms involved portfolio entrepreneurs. Venture performance: Studies that focus Assistance may be required to foster
solely on firm performance (ie sales and intelligent failure, which seeks to change
Background: Habitual entrepreneurs were employment growth and profitability) an entrepreneur’s mindset and behaviour
more likely to be men and generally may fail to provide an understanding of to overcome personal biases (ie hubris and
reported business ownership family the entrepreneurial human capital drivers denial).
backgrounds. They cited a high level of linked to the opportunity identification that
similarity between current and previous creates future wealth. Habitual entrepreneurs The habitual entrepreneur phenomenon
businesses. who identify more than one opportunity (Edward Elgar Publishing, Cheltenham),
have better choices and have the resources is due out at the end of November.
Opportunities: Habitual entrepreneurs to pursue more opportunities. Portfolio
identified more opportunities over a entrepreneurs accumulate larger personal
five-year period and pursued a higher wealth. Compared to other entrepreneurs, the author in minute
proportion than novice entrepreneurs. More portfolio entrepreneurs take smaller amounts
opportunities were identified by highly of money out of each business, but have
Paul Westhead,
educated entrepreneurs who had engaged in more businesses to draw upon.
WBS Professor of
intensive information search as well as those Enterprise, Centre for
who had leveraged their managerial and Resources: The resources needed to identify Small and Medium
entrepreneurial capabilities. opportunities may not necessarily be the Sized Enterprises.
same as those required to manage successful Visiting Professor of
Entrepreneurship (Bodo
Information: Habitual entrepreneurs individual ventures. Habitual entrepreneurs Graduate School of
searched for information less intensively need to accumulate and leverage managerial Business, Norway, 2001–
but used additional knowledge from and entrepreneurial capabilities. present; former Professor
employees, consultants, financiers and of Entrepreneurship at
government sources more frequently. Customised external support: In addition Nottingham and Stirling Universities Business
Schools and Senior Research Fellow at Warwick,
Entrepreneurs citing high entrepreneurial to specific advice on new firm creation, 1992–7. Research posts at Imperial College and
capability searched for information practitioners, consultants and government Cranfield School of Management. Consultancy
more intensively, used additional sources agents should provide customised support experience for EIM Business & Policy Research,
and identified more opportunities. (ie information, training, advice, etc) 2005. Links with OECD, Paris; Higher Education
Paradoxically, those entrepreneurs targeted at the specific needs of habitual Funding Council for England and Wales; and
Scottish Enterprise.
reporting higher information search entrepreneurs. Business failure rates may be
pursued fewer opportunities. Information reduced considerably if additional support Research interests: habitual entrepreneurs,
overload may, therefore, be a problem. is made available to facilitate business internationalisation of SMEs, training
Performance: Businesses owned by habitual idea evaluation and feasibility analysis. programme take-up and benefits, technology-
entrepreneurs did not report superior levels To enable more entrepreneurs to identify based firms and Science Parks.

13. nexus: summer 06 focus on entrepreneurship 13
smart choice
Dr Frank Craig (DLMBA 99–02) CEO, Smart Holograms, shares his first-hand experience of entrepreneurship
in the Life Sciences sector.
I have a PhD in Microbiology and over 10
years executive management experience
in the Life Sciences industry. I am basically
frameworks at WBS which I later used for
market analysis and development of a
professional Human Resources function
a serial entrepreneur and have started three at Smart Holograms. A blend of creative,
biotechnology firms from the ground up. entrepreneurialism tempered with
In each case I was the first employee and a management discipline is optimal for
Founder. Aurora Biosciences Corporation effective company growth.
was the first, based in San Diego. This
became worth £1.6 billion five years Studying the MBA by distance learning
after founding. The second was my own was great fun. It was interesting to meet
management consultancy business called people from different industries and see
Venture Consultancy Limited (in 2002) the linking thread of management. The
which was based in the UK but established teachers were very professional and the
international clientele in Europe and North ones I remember who made a lasting
America. The third is Smart Holograms impression were usually the humorous
Limited based in Cambridge, UK, which ones. I will claim ‘diplomatic immunity’
is also a Life Sciences firm. This company and refrain from naming them!
is only a few years old and is now worth
around £150 million. WBS has a world-class reputation
and regularly produces high quality,
Smart was co-founded in 2002 as a spin- peer-reviewed articles and books on
out company from Cambridge University entrepreneurship. I also see that it started
to exploit an exciting new technology a venture fund called Warwick Ventures
that enables the development of a new in 2000 to help form spin-out companies
generation of sensors for use in medical from Warwick’s intellectual property and
devices and the diagnostics sector. The technology base. My perception is that it
technology comprises novel interactive is being proactive in this area – which is a
holograms ‘sensor holograms’ that can good thing.
be engineered to change wavelength,
image, brightness or position in response My personal goals are to continue building
to a wide range of biological, chemical my career as an international CEO and to
and physical stimuli. We are primarily develop my business Smart Holograms to
focusing on developing innovative glucose its full commercial potential.
sensors for diabetics and other tests for
infectious diseases. Undoubtedly, since this I was also delighted to be invited onto the
a platform technology, it has applications Advisory Board of Warwick Business School
in many other markets such as Life Sciences recently to add some ‘entrepreneurial
tools and security and packaging. spirit’. I aim to enjoy life, encourage my
children and continue seeing the world via
growing its annual revenues by over 600 travel (this time perhaps I can travel the
percent and is quadrupling its UK facility other way round!)
The biggest challenge size. We are also now aiming to open a
Boston-based facility later this year. The w www.smartholograms.com
for some entrepreneurs is firm has raised over £18 million to date and
balancing entrepreneurial has five Blue Chip partnerships plus a major
energy with management Government contract. Last year I travelled the author in minute
around the world performing international
discipline business development, which was fun.
Frank has a PhD in Microbiology from the
University of Glasgow and an MBA from WBS.
The biggest challenge for some He has ten years of international, executive
entrepreneurs is balancing entrepreneurial management experience in the Life Sciences
I joined Smart Holograms as its first energy with management discipline. sector. He is a serial entrepreneur who has
employee and CEO in August 2003. The Some start-up firms struggle because they founded three firms. He is currently CEO
company currently has 25 employees, of Smart Holograms Limited – a medical
fail to grow from a few person start-up diagnostics firm based in Cambridge (UK).
a custom-built laboratory and offices to a managed firm with proper systems Frank is also a member of the Advisory Board
in Cambridge, UK, and an office in San and procedures that ensure effective of Warwick Business School.
Ramon, California. Smart is currently management. I learnt some very useful

14. 14 nexus: summer 06 focus on entrepreneurship
entrepreneurship and development finance
Andrew Trigg (MBA 82–3), a partner in Thompsons, Chartered Accountants, discusses aspects of entrepreneurship
and development finance in the context of providing corporate finance advice to business proprietors.
spread of commercial and financial skills, has the best possible chance of providing
incentivised with share options. Annual them with their risk rate of return, typically
net profits have increased steadily. with an exit within three to five years. Exit
Contrast this to Engineering, which used timescales can inevitably be influenced by
to generate around twice the net profit of the exit timing requirement of the funder
Electrical, with two shareholders/directors of the development capitalist, often a
and one very capable second tier manager. pension fund.
The manager had no employment contract
or share options before he left for pastures A common requirement for a successful
new about 18 months ago. Over the last funding approach is a management team
financial year Engineering has achieved with a strong track record across a good
little more than break-even. balance of skills.
I have been invited to advise both sets One funding example which strikes close
of shareholders on their exit strategy to to home is T Total an early stage and
achieve a full price on a trade sale. My exciting retail business where I am serving
view is that at best Engineering could face as non-exec Finance Director. Fellow
around two years of ‘grooming’ before the directors include Nick Green, formerly
shares should be offered for sale. Tesco director of Clubcard, Andrew Villars
who was Spirit Group Director of Drink and
I am also currently advising on the Penny Mallory, with a specialism in sales
acquisition of a £40 million p.a. turnover promotion and marketing in addition to
multi-site Retailer. This is one of several being a TV presenter and a National Rally
target companies identified by me for a Champion.
management buy-in team headed by Keith
Webster (MBA 03–4). The owner of Retailer The first stage Business Angel funding
I hold first meetings with in excess of 50 is a very talented entrepreneur and he round was challenging to say the least.
SME proprietors every year across a range of believes his dozen or so senior managers are Having established and traded our first
industrial sector and scale of activity. Many better at their jobs than he would be. One store for some months and recently
of these businesses are ‘proprietorial’; as of the benefits of this level of organisation contracted a major wholesale deal to supply
long as they sustain a reasonable earnings is that it makes the task of raising a 450 outlet, non-competing, retailer we are
stream to provide their owners with a acquisition finance relatively structured now bracing ourselves to face the funding
comfortable living there is little perceived and predictable. market again as a prelude to a major store
change from year to year. roll-out; starting in Oxford.
These examples underline the need for
A minority of the businesses I get to adaptability and management support as
see enjoy significant annual growth to two of the key elements for companies with
sales, net profit and net tangible assets entrepreneurial ambitions.
the author in minute
providing a full risk rate of return to
their shareholders. I describe these as Some texts include the raising Andrew is a Chartered Accountant with
‘entrepreneurial’; one of the acid test of risk finance as one element of specialist experience in advising on a variety
of corporate finance cases. He is a member
qualities being would a development entrepreneurship. For the ambitious
of the ICAEW Finance and Management
capitalist buy into this business? company shareholder/director I believe Faculty, as well as the Corporate Finance
that the raising of such finance should be Faculty. He served as a director of a City based
Many owners of smaller businesses would viewed as part of a process rather than an Development Capital/Corporate Finance
like to achieve a risk return for their hard event. company for five years.
work; they identify elements of commercial His earlier experience involved some years in a
detail for improvement but appear to be As the development capitalist trawls senior commercial financial management role
overlooking some of the fundamentals. through all of the usual commercial and with a FTSE 100 retailer and also included six
financial headings to be found in business years in the City office of KPMG.
Take a couple of examples: An Electrical plan checklists they are assessing what
Andrew is a partner in Thompsons,
Contractor and a Civil Contractor both impacts on the forecasts and consequently a growing practice in the centre of Bedford
with annual sales around £5 million; but their exit return each commercial with five partners.
there the similarity ends. statement will have.
E andrew@thompsons.ltd.uk
w www.thompsons.ltd.uk
Electrical has an enthusiastic and capable A development capitalist’s primary
second tier management team with a objective is to assess whether a business

15. nexus: summer 06 focus on entrepreneurship 15
social entrepreneurship
In this article Dr Paul Tracey, Lecturer in the Centre for Small & Medium-Sized Enterprises (CSME), gives examples of
businesses formed and managed with social as well as commercial objectives and explains the challenges they face.
T ony Blair, George Bush and Bill
Clinton have all reported the role and
importance of social entrepreneurship.
organisations. Donors ‘benefit from a one
stop, hassle-free service enabling them
to fulfil their environmental and social
entrepreneurs (opportunity recognition,
the marshalling of resources, and the
creation of the new venture) – with the
Universities are increasingly offering responsibilities’, and Greenworks sells added complexity of defining, building
courses and conducting research on the the furniture on to schools, charities, support for, and achieving social outcomes.
topic. Social enterprise clubs have appeared community groups and start-up businesses
across dozens of university campuses, and at discounted prices. I am presently working with Owen
social entrepreneurship business plan w www.green-works.co.uk Jarvis – a social entrepreneur and
competitions are now commonplace, formerly Director of Social Franchising at
in both USA and UK business schools. But social entrepreneurs can also lead Community Action Network – on a project
Moreover, the 2005 Net Impact conference businesses which have a more ‘for-profit’ designed to identify the characteristics of
hosted by Stanford University – an event emphasis. For example, Cafédirect is a successful social enterprises, and the skills
for graduate students in business and limited company selling ‘fair trade’ tea and competencies exhibited by successful
management studies interested in social and coffee to provide above market prices social entrepreneurs. By combining our
entrepreneurship and corporate social and good employment conditions for experience and knowledge, we aim to make
responsibility – attracted a record 1600 disadvantaged tea and coffee farmers a substantive contribution to a new and
participants. in developing countries. In addition exciting movement.
But what, you might ask, does the term
social entrepreneurship actually mean?
And what kinds of people are involved in
running social enterprises? Put simply, at the core of social entrepreneurship is the notion
social entrepreneurs create businesses of trading for a social purpose, and it requires that social
which have both social and commercial
objectives, but where surpluses are entrepreneurs identify and exploit market opportunities
primarily reinvested in the enterprise or a in order to develop products and/or services which allow
social objective rather than distributed to
owners. In other words, at the core of social
them to generate ‘entrepreneurial profit’ for a given
entrepreneurship is the notion of trading for social project
a social purpose, and it requires that social
entrepreneurs identify and exploit market
opportunities in order to develop products
and/or services which allow them to
generate ‘entrepreneurial profit’ for a given to dividends to shareholders, around 8
social project. percent of annual profits are invested in the the author in minute
training and support of farmers in Africa,
Some brief examples will help to illustrate Asia, the Caribbean, and Central and South
the kinds of organisations that social America. w www.cafedirect.co.uk
entrepreneurs build and manage. Greyston
Bakery, based in New York, is one of the And yet while these and many more social
world’s best known social enterprises. enterprises have been very successful,
It provides employment for people who plenty of others have struggled to
have been marginalised from mainstream balance meaningful social outcomes with
labour markets, many of whom have commercial viability. Indeed, a study
been unemployed for long periods. by William Foster and Jeffrey Bradach
The profits from the bakery are used to published in the Harvard Business Review
subsidise a range of community-focused last year found that only a quarter of USA-
Paul Tracey was previously Lecturer in
services including housing, childcare and based social enterprises were in profit,
Social Enterprise at Judge Business School,
healthcare in the Yonkers district of New concluding that ‘despite the hype… few of Cambridge University. Has also held posts at
York. w www.greystonbakery.com the ventures actually make money’. the School of Geography at Oxford University
and the Centre for Entrepreneurship at
Another social enterprise that has been Certainly, it appears that social Newcastle University.
very successful in both commercial and entrepreneurship is a particularly Research Interests: entrepreneurship;
social terms is Greenworks, which earns demanding form of entrepreneurship regional innovation; social and community
income by recycling unwanted furniture – social entrepreneurs encounter the entrepreneurship; corporate social
from corporations and public sector same challenges as more traditional responsibility.