summ-1st wk
DESCRIPTION
dhdhghgTRANSCRIPT
Session - 1
2
Instead of taking either traits or
circumstances as inputs and
trying to explain variance in performance,
the expertise lens focuses on
understanding commonalties, given high levels of performance.
Of the world’s 1426 billionaires entrepreneurs….
960 (67.32%) are self-made
830 (86.45%) made money from multiple businesses
Billionaire?
Articles in the Journal of Political Economy and in the
American Economic Review show that entrepreneurs
as a class make only as much money as
they could have if they had been
employees.
Billionaire ?Harvard Business School senior lecturer Shikhar Ghosh’s
research indicates that :
--75 % of venture-backed companies never return cash to investors,
--with 30 to 40 % of those liquidating assets where investors lose all of their money.
(Based on more than 2,000 venture-backed companies that raised at least $1 million from 2004 to 2010)
Five year survival of VC backed new ventures
Source: US Census
BOSS ?
Analysis of 212 start-ups in US show that
By 3 years only 50% of founders are CEO
By 4 years only 40%During IPO only 25%
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The Entrepreneurs
Reality..…
Making Decisions Under
Uncertainty
99
The Entrepreneurs
MINDSET
1010
Everybody has a Passion Thomas Edison
Was interested in books that showed how things were made and how to conduct experiments.
As a teenager got a job selling newspapers to passengers on the day-train.
Received permission from the railroad to do chemistry experiments in the baggage car while waiting for the return trip.
Went to became great inventor, scientist and businessman.
1111
SuccessSuccess
FailureFailure1010
1010
A Different View of A Different View of FailureFailure
12
Superman – ordinary men doing extraordinary
things
Lucky – planned opportunism
Money—know how to get it
Great Risk takers – calculated risks
Extraordinary Forecasters – co-creation
Do not Fail – pillars of success
Reality behind the Myths
1313
Necessity Entrepreneurs
In developing countries
many are entrepreneurs
out of necessity,
because they have no
prospect of a job.
--- Little Impact on
the economy
14
GROWTH MINDSET
• Supergrowth SMEs (Gazelles) are 5 – 8% of Total
• Growth SeekersGrow and protect income and investment and pass it onto the next generation
• Comfort SeekersMaintain business at its current size to protect investment and pass it on to the next generation
1515
Opportunity Entrepreneurs – Great Impact
• The contrast here is with
‘opportunity entrepreneurs’, who
choose to exploit the opportunities
they perceive in the marketplace.
• opportunity entrepreneurs have the
motivation and the skills
to save, invest, innovate,
and grow.
16
INVENTION AND INNOVATION
Invention
The creation of something
new
Results in new knowledge
Innovation
The transformation of an idea or
resources into useful applications
Results in new products,
services, or processes
1717
Basic Elements of Entrepreneurship
Motivated Individual
Innovation
Value Creation
Organization Creation
Growth Orientation
Founder
1. Can I actually be an Entrepreneur?
2. What if I fail?
3. How do I spot the opportunity?
4. When do I start?
5. Should I go alone?
6. How do I grow?
7. What is my goal – “Boss” or “Billionaire” or
both?
8. Should I have an exit plan?
Evaluation
Class discussions : 20%
Quizzes : 40%
Group Assignments
(Project& Presentation) : 40%
20
Session - 2
21
The Restaurant Project
What will you do?
22
Where do viable ventures come from? They
start with an idea. And ideas are nothing
more than your transformation of anything
IDEA = ANYTHING + YOU
23
We also know that ideas, visions, or divine
intervention alone are not what create
opportunities. It is action:
OPPORTUNITY = IDEA + ACTION
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Action is not gathering information. Action is not
only outcome oriented, its also a function some
kind of interaction with the world:
ACTION = Function (INTERACTION) on
MONEY, PRODUCT, PARTNERS, CLIENTS…
25
What turns these actions into a viable
business is commitments
VIABLE VENTURE = OPPORTUNITY +
COMMITMENT
Action
Idea
Idea +You
Idea +You+Action
Idea + You +Action
+ Commitment
• Are biased towards action:
• Find and solve problems
• Take personal responsibility
• Persevere until they reach their goals.
• Are not afraid of change
• Look for self-improvement opportunities.
28
GROWTH MINDSET
• Supergrowth SMEs (Gazelles) are 5 – 8% of Total
• Growth SeekersGrow and protect income and investment and pass it onto the next generation
• Comfort SeekersMaintain business at its current size to protect investment and pass it on to the next generation
2929
Basic Elements of Entrepreneurship
Motivated Individual
Innovation
Value Creation
Organization Creation
Growth Orientation