The Entrepreneurial Mindset

Transcription

1 The Entrepreneurial Mindset Welcome School of Business and Economics TIMEResearch Area Innovation & Entrepreneurship Group (WIN)

2 THE ENTREPRENEURIAL MINDSET TEAM Unfold your entrepreneurial personality IDEA APPROACH Build your own team and establish relevant partnerships GET YOURSELF STARTED LEAN START-UP Create your business idea and evaluate its potential PITFALLS Get your company started in the best possible way Apply the process of successful entrepreneurs Watch out for critical obstacles of new venture

3 THE ENTREPRENEURIAL MINDSET Unfold your entrepreneurial personality IDEA APPROACH GET YOURSELF STARTED TEAM LEAN START-UP PITFALLS

4 MADE VERSUS BORN

5 READY FOR THE CHALLENGE? I can t stand that much risk I don t have time for this We should launch a business! I m not sure This idea rocks

6 WHO IS AN ENTREPRENEUR? MICHAEL DELL [1] 1965 born in Houston, TX With 15: Disassembled first computer to see how it works Started to study Medicine At age of 18: Sold PC upgrade kits in college With 19: Founded Dell Computer Corp. Initial investment $1000 [2]

7 WHO IS AN ENTREPRENEUR? STEVE JOBS 1955 born in San Francisco, CA As kid: Reassembled electronics with father During school: Met his future partner, both interested in electronics and computer design Age 21: Founded Apple Computer Corp. in Job s Garage [3] [4]

8 WHO IS AN ENTREPRENEUR? LEONARD SHOEN Kein Bild verfügbar [5] 1916 born in McGrath, MN As kid: Moved with family to Oregon Envisioned market for rental trucks without high expenses Was suspended from medical school Age 29: Founded U-Haul with his wife Initial investment $5000 [6]

9 PERSONALITY IS CONGENITAL & SELF-THOUGHT Three layers of mental conditioning PERSONALITY Individual, congenital CULTURE Group-specific, learned Extension of human capital Mainly based on educational background Consists of time-stable elements being consolidated as an adult HUMAN NATURE Universal, congenital [7] Entrepreneurs need specific entrepreneurial capabilities!

10 SAME ENTREPRENEURIAL MINDSET PERSONALITY Individual, congenital CULTURE Group-specific, learned Tory Burch USA [8] HUMAN NATURE Universal, congenital [7] [9] Muhammad Yunus Bangladesh

11 IDENTIFIED OPPORTUNITY IN FASHION Tory Burch USA [8] PERSONALITY Individual, congenital CULTURE Group-specific, learned HUMAN NATURE Universal, congenital [7] Wealthy family Studied art history at Univ. of Pennsylvania Strong interest in fashion Designed first clothes in her kitchen in New York Western Capitalistic Individualistic [10]

12 IDENTIFIED OPPORTUNITY IN MICROFINANCE Grew up in poor country Studied Studied Economics Economics at at Univ. University of Dhaka of Dhaka Went to USA with Fulbright Scholarship Went to USA Came back to Bangladesh to to work work against against poverty poverty Asian Socialistic Collectivistic PERSONALITY Individual, congenital CULTURE Group-specific, learned HUMAN NATURE Universal, congenital [7] [9] Muhammad Yunus Bangladesh [11]

13 REFERENCES [1] Hartmann Studios (2011): Michael Dell. URL: Access Date: [2] Wikipedia the Free Encyclopedia (2016): Michael Dell. URL: Access Date: [3] Yohe, M. (2010): Steve Jobs. URL: Access Date: [5] Wikipedia the Free Encyclopedia (2016): Steve Jobs. URL: Access Date: [5] U-Haul (2014): L.S. Sam Shoen. URL: Access Date: [6] Wikipedia the Free Encyclopedia (2016): Leonard Shoen. URL: Access Date: [7] Hofstede, G., Hofstede, G. J., & Minkov, M. (1991): Cultures and organizations: Software of the mind (Vol. 2). McGraw-Hill.

14 REFERENCES [8] Heck, E.M. (2014). Tory Burch. URL: Access Date: [9] Malmus, S. (2016): Muhammad Yunus. URL: Access Date: [10] Wikipedia the Free Encyclopedia (2016): Tory Burch. URL: Access Date: [11] Wikipedia the Free Encyclopedia (2016): Muhammad. URL: Access Date:

15 HOW DO ENTREPRENEURS THINK?

16 THINK ALOUD EXPERIMENT Is there a difference between expert entrepreneurs vs. nonexpert entrepreneurs as concerns how they would deal with risks & returns in highly uncertain situations? 27 Expert Entrepreneurs THINK ALOUD EXPERIMENT [2] Saras D. Sarasvathy Professor at The Darden School, Univ. of Virginia The challenge then is really to pick your partners, and package yourself early on before you have to put a lot of capital out [1]

17 NON ENTREPRENEURS EXPERTS NON-ENTREPRENEURS Define goals Decision based on expected returns EXPERT ENTREPRENEURS Assess means ESTABLISHED DECISION-MAKING PROCESS DIFFERENT APPROACH

18 DIFFERENT PROCESS NON-ENTREPRENEURS EXPERT ENTREPRENEURS 3 Define resources INPUT Define resources 1 2 Decisions based on goals Decisions based on resources 2 1 Define goals OUTPUT Create best possible output 3

19 REFERENCES [1] Dew, N., Read, S., Sarasvathy, S. D., & Wiltbank, R. (2009): Effectual versus Predictive Logics in Entrepreneurial Decision-making: Differences between Experts and Novices. Journal of business venturing, 24(4), [2] University of Virgina (2016): Saras D. Sarasvathy. URL: Access Date:

20 THE ENTREPRENEURIAL APPROACH

21 Price per barrel TIME Research Area Innovation & Entrepreneurship Group (WIN) INFLUENCE ON BUSINESS ACTIVITY? $ 4 Oil Crisis $ 42 Development of Crude Oil Price Year Financial Crisis New Technologies Global Price pressure $ 144 $ 39 $ 35 $ 110 $160 $140 $120 $100 $80 $60 $40 $20 $0 [1]

22 PLANNING HELPS PREPARING DATA Based on future expectations Scenario 1 Scenario 2 Scenario n PLAN

23 TYPICAL PLANNING PROCESS DEFINE FUTURE GOAL Detailed projection of goal Means as derivative of specified goals DEFINED GOAL DERIVE WAY TOWARDS GOAL GATHER RESOURCES NECESSARY CARRY OUT PLAN

24 LIMITS OF PLANNING PLANNING IN LARGE COMPANIES Extensive research in relatively stable markets Forecasts are based on proven and established empirical models Forecasts build basis for financial, strategic, and production planning EXAMPLE [...] we had expected more favorable conditions. Over the course of the year, the business environment deteriorated as political and macroeconomic challenges increased. Oil prices and growth both dropped sharply. Sales and earnings fell in this difficult environment [...]. [3] Jürgen Hambrecht Chairman of the Supervisory Board BASF Annual Report 2015 [2 ]

25 WHAT IF MARKETS ARE NOT STABLE? [The Segway] will be to the car what the car was to the horse and buggy Dean Kamen, Founder of Segway [4] The satellites got off the ground, but the business never did. Tuck Aikin, Journalist [5] In the late 50 s, the French car manufacturer SIMCA imagined that nuclearpowered cars would have substituted traditional ones in the 21 st century.

26 UNCERTAINTIES ARE INCREASING Global markets Pressure from financial markets Less loyalty of customers/suppliers Increasing competition Shorter product life cycles

27 MITIGATE UNCERTAINTIES - HOW? The Entrepreneurial Way! LARGE COMPANY THE ENTREPRENEUR Scenario 1 DATA Based on future expectations Scenario 2 Scenario n I had to give it a full go and see what happened. Michel Dell [7] PLAN [6] Focus on planning and prediction Focus on skills, knowledge, resources

28 WHAT MADE DELL A GREAT IDEA? Net revenue of Dell Inc. Billion USD Idea ahead? [8]

29 THE ENTREPRENEURIAL MINDSET Unfold your entrepreneurial personality IDEA APPROACH GET YOURSELF STARTED TEAM LEAN START-UP PITFALLS

30 THE ENTREPRENEURIAL MINDSET Unfold your entrepreneurial personality? Create your business idea and evaluate its potential IDEA APPROACH GET YOURSELF STARTED PITFALLS TEAM LEAN START-UP

31 REFERENCES [1] Crude Oil-Brent Cur. Month FOB U$/BBL - Price, taken from Thomson Reuters Datastream, 2016 [2] BASF AG, 2016 [3] Report of the Supervisory Board, BASF Annual Report 2015 [4] Heilemann, J. (2001): Reinventing the Wheel. In: Time Magazine, Dec. 02, 2001 [5] Alkin, T. (2000): Iridium failure lesson for Entrepreneurs. In: The Gazette, May 08, 2000 [6] Hartmann Studios (2011): Michael Dell. URL: Access Date: [7] Dell, M.: URL: Access Date: [8] DELL INC. - NET SALES OR REVENUES (U.S.$), taken from Thomson Reuters Datastream, 2016