Innovation and Entrepreneurship. Poonpong Boonbrahm

Transcription

1 Innovation and Entrepreneurship Poonpong Boonbrahm

2 Entrepreneurs: The Driving Force Behind Small Businesses Lecture #1

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4 Bill Gate Larry Page Surgey Brin Larry Ellison Jeff Besos Mark Zuckerberg George Lucas Mike Dell Steve Jobs Dr. Stephen Wolfram? ปรเมศ ม นศ ร พญ. นล ณ ไพบ ลย เฉล ยว อย ว ทยา bill heinecke

5 Top 10 Tech Billionaires

6 Bill Gates: William Henry Gates, popularly known as Bill Gates, is the cofounder of Microsoft, the world's biggest software company by sales. America's richest man-and its greatest living philanthropist-owns about 6 per cent of the technology giant, a stake that now represents about a quarter of his overall wealth. The rest of his fortune lies in Cascade Investment, Gates's private investment vehicle. Estimated net worth: $63.5 billion

7 Larry Ellison Joseph Ellison's (Larry Ellison) fortune comes from his 22.5 percent stake in Oracle, the world's third-largest software company by sales. He owns a 49 per cent stake in software maker NetSuite, as well an interest in LeapFrog Enterprises. He also probably has at least $4 billion in cash and other assets, including numerous real estate holdings. Estimated net worth: $38.1 billion

8 Mark Zuckerberg: Zuckerberg is a co-founder and the chief executive of Facebook, the world's largest social media site. Launched in 2004, the site has 845 million monthly active users-about 12 per cent of the world's population. The company is poised for a public offering in the spring, an event that will likely add billions to Zuckerberg's net worth. Estimated net worth: $21 billion

9 Larry Page: Larry Page co-founded Google (with Sergey Brin) and serves as its chief executive, a title he took in Together, Brin and Page own about 16 per cent of the search giant (recent market cap: $200 billion). Page also oversees an investment portfolio, having sold more than $3 billion worth of Google stock since it went public in Estimated net worth: $19.2 billion

10 Sergey Brin: Sergey Brin: With Google co-founder Larry Page, Sergey Brin owns about 16 per cent of the search giant (recent market cap: $200 billion). Brin, who stepped down as president of technology in 2011 to direct special projects, also oversees an investment portfolio, having sold more than $3 billion worth of Google stock since going public in Estimated net worth: $19.1 billion

11 Azim Premji: Azim Premji: He owns 79 per cent of Wipro, India's third-largest software exporter. Based in Bangalore, his technology company employs more than 100,000 people and has annual revenue of more than $7.2 billion. Premji also owns a private equity fund, PremjiInvest, which manages his $1 billion personal portfolio. Estimated net worth: $18.3 billion

12 Jeff Bezos: Since launching his online bookseller in 1994, Amazon's founder and chief executive has turned the company into the biggest retailer on the web, with sales of more than $64 billion. In 2007, Bezos introduced the Kindle electron book reader, which is now Amazon's topselling item. The company is also a leading provider of cloud computer services. Estimated net worth: $17.6 billion

13 Steve Ballmer: Steve Ballmer: Steve became chief executive of Microsoft when Bill Gates stepped down from day-to-day management in January Since then, the exuberant Microsoft chief has struggled to keep the world's biggest software maker relevant in the age of Apple. Microsoft stock, which hit its peak only days before Gates stepped down, has languished ever since. Estimated net worth: $15.9 billion

14 Michael Dell Michael Dell: He is the founder and chief executive of Dell, the world's third-biggest computer hardware manufacturer. He owns about 15 perc ent of the Round Rock (Tex.) company. Through his New York investment firm, MSD Capital, Dell also controls a $10 billion portfolio that maintains investments in a number of different industries Estimated net worth: $15.1 billion

15 Paul Allen: Paul Allen: He co-founded Microsoft with Bill Gates, creating the most successful company of the personal computer era. Allen left the company in 1983, proceeding to diversify, with mixed success, into entertainment, cable companies, real estate, private equity, and energy plays. He is now pursuing space travel and brain research. Estimated net worth: $15 billion

16 25 most powerful people in business

17 Entrpreneur or innovator or both??

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26 Upon completion of this chapter, you will be able to: Define the role of the entrepreneur in businessin the United States and across the world (1) Describe the entrepreneurial profile and evaluate your potential as an entrepreneur. Describe the benefits and drawbacks of entrepreneurship. (2) Explain the forces that are driving the growth of entrepreneurship. (3)

27 Upon completion of this chapter, you will be able to: (Cont.) Explain the cultural diversity of entrepreneurship. Describe the important role small businesses play in our nation's economy. (4) Describe the nine deadly mistakes of entrepreneurship. (5) Put failure into proper perspective. (6) Explain how entrepreneurs can avoid becoming another failure statistic. (7)

28 The World of the Entrepreneur Every year in the U.S., entrepreneurs launch 850,000 new businesses. Entrepreneurial spirit - the most significant economic development in recent history. GEM** study: 11.3 percent of adult population in the U.S. is actively involved in trying to start a new business. **GEM: Global Entrepreneurship Monitor

29 Argentina Australia Belgium Brazil Canada Croatia Denmark Ecuador Finland France Germany Greece Hong Hungary Iceland Ireland Israel Italy Japan Netherlan New Norway Peru Singapor Slovenia South Spain Sweden United United Total Entrepreneurial Activity (TEA) Index Entrepreneurial Activity Across the Globe Persons per 100 Adults, Years Old Engaged in Entrepreneurial Activity TEA Index Global TEA Average Country Source: 2004 Global Entrepreneurship Monitor.

30 The World of the Entrepreneur GEM study Globally 9.4 percent of adults are actively engaged in trying to start a business. Men are twice as likely as women to start a business (exactly the opposite trend in the U.S., however). Nearly one-third of global entrepreneurs are between the ages of 25 and 44.

31 What Is an Entrepreneur? One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.

32 Characteristics of Entrepreneurs Desire for responsibility Preference for moderate risk risk eliminators Confidence in their ability to succeed Desire for immediate feedback High level of energy Future orientation serial entrepreneurs Skilled at organizing Value achievement over money

33 High level of energy fm?pageid=150

34 Colin Angle Angle s leadership and vision for the future of robots have been recognized with numerous professional awards. He has been named a Mass High Tech All-Star, one of Fortune Small Business Magazine s Best Bosses and New England Entrepreneur of the Year by Ernst and Young with irobot co-founder Helen Greiner. Angle sits on the board of directors of Axon Labs, Inc. and is active on the Robotics & Intelligent Machines (RIM) advisory board. He holds a bachelor s degree in electrical engineering and a master s degree in computer science, both from MIT. Helen Greiner Under Helen Greiner s leadership, irobot is at the forefront of the growing robot industry, delivering home and government robots that are making a difference. A robot industry pioneer with more than two decades of experience, Greiner has helped to enhance public acceptance of robots as one of today s most important emerging technologies.

35 Entrepreneurship One characteristic of entrepreneurs stands out: Diversity! Anyone regardless of age, race, gender, color, national origin, or any other characteristic can become an entrepreneur (although not everyone should).

36 Competencies That Are Characteristic of Successful Entrepreneurs: Proactivity 1. Initiative/ does things before being asked or forced by events 2. Assertiveness/ Confronts problems with other directly. Tell other what they have to do. (2)

37 Competencies That Are Characteristic of Successful Entrepreneurs: Achievement Orientation 3. See and acts on opportunities/ seize unusual opportunities to start new business 4. Efficiency Orientation/find the way to do things faster and less cost. 5. Concern for high quality work 6. Systematic Planning 7. Monitoring

38 Competencies That Are Characteristic of Successful Entrepreneurs: Commitment to others 8. Commitment to work 9. Recognizes the importance of fundamental business relationship (2)

39 Competencies That Are Characteristic of Successful Entrepreneurs: Others 10. High degree of commitment: total commitment. 11. Tolerance for ambiguilty 12. Flexibility. HP earlier producs:- devices to make urinals flush automatically, ahock machine to make people lost weight. (2)

40 The Differences Between Managers and Entrepreneurs Conventional manager Very conscious of rules and taboos. Sensitive to the future and willing to postpone rewards. Has a powerful need for acceptance Able to identify problems in any course of action. Makes detailed plans. Entrepreneur Views rules as guidelines only. Concept of the future based on personal fantasy. Low threshold of frustration Ambivalent toward control, success and responsibility. Impatient with discussions and theories. Is prone to action and seems impulsive. (2)

41 Benefits of Entrepreneurship The opportunity to: Create your own destiny Make a difference Reach your full potential Reap impressive profits Contribute to society and to be recognized for your efforts Do what you enjoy and to have fun at it

42 Drawbacks of Entrepreneurship Uncertainty of income Risk of losing your entire investment Long hours and hard work

43 Small Business Owners' Work Week Number of Hours Worked per Week More than 60 hours 17% Less than 30 hours 11% 30 to 40 hours 24% 51 to 60 hours 20% 41 to 50 hours 28% Source: Adapted from Dun & Bradstreet 21 st Annual Small Business Survey Summary Report, 2002, p. 35.

44 Drawbacks of Entrepreneurship Uncertainty of income Risk of losing your entire investment Long hours and hard work Lower quality of life until the business gets established

45 Entrepreneurs' Age at Business Formation % % Over % % % % Source: 2004 Global Entrepreneurship Monitor.

46 Drawbacks of Entrepreneurship Uncertainty of income Risk of losing your entire investment Long hours and hard work Lower quality of life until the business gets established High levels of stress Complete responsibility Discouragement

47 Feeding the Entrepreneurial Fire Entrepreneurs as heroes Entrepreneurial education Demographic and economic factors Shift to a service economy Technological advancements Independent lifestyle E-commerce and the World Wide Web

48 Revenues (in Billions) U.S. Retail E-Commerce Revenues $250.0 $232.1 $200.0 $199.3 $169.5 $150.0 $142.5 $117.7 $100.0 $94.0 $50.0 $ Year Source: emarketer, 2005.

49 Feeding the Entrepreneurial Fire Entrepreneurs as heroes Entrepreneurial education Demographic and economic factors Shift to a service economy Technological advancements Independent lifestyles E-commerce and the World Wide Web International opportunities

50 The Cultural Diversity of Entrepreneurship Young entrepreneurs Women entrepreneurs

51 Ages of Billionaires

52 Young Tech. Billionaire

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62 Women Entrepreneur Thai Entrepreneur Gifferine iberry S&P Dr. Nalinee Paiboon ค ณปลา อ จฉรา บ ราร กษ ค ณ ภ ทรา ศ ลาอ อน

63 Why Women Start Businesses Frustrated with "glass ceiling" at big companies 23% Other reasons 7% Gain control over my schedule 46% Saw a market opportunity and decided to pursue it 24% Source: Center for Women s Business Research, 2004.

64 The Cultural Diversity of Entrepreneurship Young entrepreneurs Women entrepreneurs Minority-owned enterprises Immigrant entrepreneurs Part-time entrepreneurs

65 The Cultural Diversity of Entrepreneurship Home-based businesses Family businesses Copreneurs Corporate castoffs Corporate dropouts

66 Small Business by Industry M anufacturing 5.8% Finance 8.0% Other 7.3% Service 39.2% Wholesale 7.4% Construction 11.8% Retail 20.5% Source: U.S. Small Business Administration, 2005.

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68 Millions The Growth of Home-Based Businesses Part-time Self-Employed Workers Primary Self-Employed Workers (5)

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70 Small Businesses... Make up 99.7 percent of all businesses in the U.S. Employ 51 percent of the nation s private sector workforce. Create more jobs than big businesses. Are leaders in offering training and advancement opportunities to workers.

71 Small Businesses... Produce 51 percent of the nation s private GDP. Account for 47 percent of business sales. Create 13X more innovations per employee than large companies. Zipper, FM radio, laser, air conditioning, escalator, light bulb, personal computer, automatic transmission, and many more!

72 Small Business by Industry Construction 11.8% Financial 8.0% Other 7.3% Services 39.2% Manufacturing 5.8% Wholesale 7.4% Retail 20.5% (6)

73 % of Small Firms Surviving Small Business Survival Rate 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 100% 81% 65% 54% 46% 40% 36% 32% 29% 27% 25% New # of Years in Business Source: NFIB Business Policy Guide, 2003, p. 16.

74 Ten Deadly Mistakes of Entrepreneurship 1. Management mistakes 2. Lack of experience 3. Poor financial control 4. Weak marketing efforts 5. Failure to develop a strategic plan

75 Ten Deadly Mistakes of Entrepreneurship 6. Uncontrolled growth 7. Poor location 8. Improper inventory control 9. Incorrect pricing 10. Inability to make the entrepreneurial transition

76 Putting Failure into Perspective Entrepreneurs are not paralyzed by the prospect of failure. Failure a natural part of the creative process. Successful entrepreneurs learn to fail intelligently.

77 Avoiding the Pitfalls of Small Business Failure Know your business in depth Develop a solid business plan Manage financial resources Understand financial statements Learn to manage people effectively Keep in tune with yourself

78 I had the courage to start my own business, but I realized that it takes more than guts and a good product or service to succeed. An entrepreneur must also have the skills of a salesman, secretary, bookkeeper, manager, analyst, and errand boy. Neglect one area too long, and-zap-you re out of business. Rafael J. Gerana, Cofounder of an Advertising Agency (7)

79 Q & A