Global Entrepreneurship
Developing Global Mindset for
Entrepreneurs
Brian David Butler

                               Teaching:
                               Brian Butler is currently a pr...
Brian David Butler

                               International:
                               A global citizen, Brian w...
KookyPlan – wiki for Entrepreneurs
Global Entrepreneurship:
developing the global mindset for
entrepreneurs


Class #2
Saturday March 13th, 2010
Resources: www.kookyplan.com
notes
• Everyone should have received my email with
  the updated course syllabus
• Exam – will come mostly from my lectur...
1. Introduction, definitions:


Review from last
class…
Facebook vs. MySpace case study


 ▫       Who can summarize:
         ―what was the importance of international strategy...
International strategy = key

 ▫ ―Most of Facebook‘s growth is international,
   where they‘ve executed on a brilliant str...
Facebook growth international
• International Growth
• More than 70 translations available on the site
• About 70% of Face...
Facebook growth international
• International growh = key to winning vs
  competition
• Massive growth in users

• Network...
Network effect
• In economics and business, a network
  effect (also called network externality) is
  the effect that one ...
Global strategies vs.
Localization


What are ―global
industries‖?
Globalization

• ―international borders and trade barriers came
  down.
• Communism fell.
• Protectionist walls in Latin A...
Globalization
Why?
 some industries are much more globally
 competitive and need to be due to massive
 economies of scale ...
Globalization
• Types of “global” industries

• Luxury consumer goods
• Pharmaceutical
• Technology

Other potentially glo...
Globalization
• Not "Americanization"

• Note that globalization does not
  equal "americanization" ...
 ▫ proof is that t...
Globalization -- why?
• As travel costs have fallen,
• communication costs have fallen
• and the world has become more tec...
Localization

Sometimes, a company can make much more
 money by ―localizing‖ their products… but at
 what cost?

• Note: i...
Localization

• Examples:
 ▫ Consumer goods
    Food
    Perfumes
    Local tastes, preferences, languages…
Localization

• counter trend in retailing
  ▫ consumers are resisting globalization
  ▫ going to the other extreme: local...
Localization v Globalization – how
much to localize?
• How much localization of your product should you
  make?
  ▫ If you...
Localization v Globalization – how
much to localize?
• Localization leads to more sales, but globalization leads to
  more...
Localization
• Example:

• A Brazilian cachaca producer that considers selling
  in Spain might ask themselves: "How are w...
Localization
• How much "localization" is necessary?

• Luxury goods are one of the few truly "global"
  brands that are a...
2. The “entrepreneur mindset”:


Critical thinking
patterns of
entrepreneurs…
The “entrepreneur mindset”:
• Importance of
 ▫   critical thinking
 ▫   idealism,
 ▫   trend awareness,
 ▫   problem solvi...
Critical thinking

•   Habit to ask ―what is wrong‖?
•   Look for problems
•   Try to ―poke holes‖ in story
•   What are t...
Idealism

•   How ―should the world be‖
•   Don‘t just look at the way thing are…
•   Dream how they ―should‖ be:
•   Is t...
trend awareness

•   What is changing?
•   Are you aware of the changes?
•   Are you ready for the challenges?
•   Will it...
Problem solving

• Great entrepreneurs are ones that solve
  problems.
• Best ideas come from personal problems
Why solve problems:?
• ―Many of the applications we get are imitations
  of some existing company. That's one source of
  ...
Why solve problems:?
• It seems like the best problems to solve are ones that
  affect you personally. Apple happened beca...
“fast failing”
• ―The development of a successful new product, service, or
  business is often the result of lots of learn...
fast failing
• The classic mindset is to try to get a business plan or product
  95% right before taking action. This is g...
fast failing
• Numbers

• The math of fail fast and fail cheap is simple. If it
  takes six months and $100,000 to take a ...
Brain-storming
•   process of generating LOTS of ideas quickly
•   Think outside of the box
•   Original thinking
•   Key ...
Brainstorming


• ―a group creativity technique designed to
  generate a large number of ideas for the solution
  to a pro...
Keys to successful (focused)
brainstorming:
1. no judging, dont interrupt ideas
2. build on the ideas of others, rather th...
• Approach
• There are four basic rules in brainstorming.[5] These are intended to reduce
  the social inhibitions that oc...
2. why be an entrepreneur?


Class participation…
Review last week:
• What are the benefits of global
  entrepreneurship? What are the challenges?
  Can small enterprises r...
“Thinking global for entrepreneurs”
• Example: furniture company should look for global efficiencies and
  world wide cent...
“Thinking global for entrepreneurs”
• Example: furniture company should look for global
  efficiencies and world wide cent...
Why become an entrepreneur?

• Class: discussion – summarize here:

1.   .
2.   .
3.   .
4.   .
5.   .
What are Entrepreneurs “like”?
(personal characteristics/ attributes)

• Class: discussion – summarize here:

1.   .
2.   ...
What it means to be an
         "entrepreneur"?
• An Entrepreneur:
 ▫ is someone with big ideas, and a strong belief that
...
Risk

• Entrepreneurship is about taking risk.
• The behavior of the entrepreneur reflects a kind
  of person willing to p...
Types of entrepreneurs
1.       Lifestyle Entrepreneurs:
     ▫     Those that start up a business in a niche, making a li...
• Characteristics of typical
  Entrepreneurs
• John G. Burch (Business Horizons, September 1986) lists traits
  typical of...
• Characteristics of typical
  Entrepreneurs
• Reward orientation:
  ▫ Desire to achieve, work hard, and take responsibili...
Great for a resume (CV)


    • Note, if you do launch your business
      idea, and then later return to the market
     ...
•   1. Vision
•   2. Passion
•   3. Purpose
•   4. Adaptability
•   5. Leadership Skills
•   6. Networking Savvy
•   7. De...
What is an “entrepreneur”?
• Entrepreneurship merges the visionary and the
  pragmatic.
• It requires knowledge, imaginati...
What is an “entrepreneur”?
• …often is mistaken for—invention,
  creativity, management, starting a small
  business, or b...
What is an “entrepreneur”?
• Hence, entrepreneurship entails
  the commercialization (or its functional
  equivalent) of a...
What is an “entrepreneur”?
• The market judges utility and need along with
  excellence. It does not value—and does not ne...
Can you teach
“entrepreneurship?”


Study from Kauffman
Foundation:
In high esteem:
• Entrepreneurs are among the most celebrated
  people in our culture.
• Celebrity entrepreneurs such as S...
But, Can Entrepreneurs Be Made?
Can you teach someone to be an entrepreneur?

The pessismists Say ―NO‖:
 ―Silicon Valley i...
Saying NO:

―Angel investor and entrepreneur, Jason Calacanis
  said as much in his recent talk to Penn State
  students.
...
On the other hand…
Most successful entrepreneurs do NOT come from
 entrepreneurial families, and do NOT have
 entrepreneur...
Saying “YES”:
  ▫ The education and training of entrepreneurs is
    something that the Kauffman Foundation has been
    r...
Creating the “cluster”
• That is why Kauffman (which has a $2 billion endowment)
  is investing heavily in an ambitious ne...
Family + genes – important?
• More important are you social and professional
  networks

  ▫ ―I doubt that all of these Go...
What matters…

   • education,
   • exposure to entrepreneurship,
   • networks



                    Techcrunch.com, by ...
Do you need to start early?

• NO!

• Only a quarter caught the entrepreneurial bug
  when in college. Half didn‘t even th...
Do you need a Harvard Education?

NO!

• Level of Education does matter — but not the
  college they graduate from.
• Sign...
Profile of successful (high-growth)
entrepreneurs
• Company founders tend to be middle-aged and
  well-educated, and did b...
Profile of successful (high-growth)
entrepreneurs
• Top 4 Motivations for becoming
  entrepreneurs:

1.   building wealth,...
Profile of successful (high-growth)
entrepreneurs
• Not important or less-important factors:

1. inability to obtain emplo...
Profile of successful (high-growth)
entrepreneurs
• One common factor:

1. Most had significant industry
   experience whe...
Industry experience

• suggestion:

1. Go get a job, any job for 6 months – 1 year
   in the industry before launching you...
Profiles of Entrepreneurs
• One note: the profile of entrepreneurs outline
  above is slightly different for one group…..
Profile of successful (high-growth)
entrepreneurs
• But… the profile of “Early entrepreneurs” (young) and
  those with an ...
Homework from last class


Student presentations
(each student to
present)
Homework review
3-questions exercise

• Identify at least (1) major problem, (1) major trend, and
  (1) transferrable idea...
3-questions exercise – AGAIN – try to
   improve 2nd time!
Class Schedule: Topics to cover:
The “Three Questions” framework

• The ―three questions‖ framework
  1. ―what is the prob...
Problem solving
 ▫ Problem solving: ―what is the problem, and
   what are you going to do about it?‖ Seeking
   Opportunit...
Trends

 ▫ Trend awareness: ―What is the trend, and how
   are you going to get in front of it?‖ Analyzing
   trends to fi...
WIWH – localizing business models
• Localizing business models: WIWH: ―would it
  work here‖: a look at what is great here...
Homework Review – class participation
• Each student to present
  ▫ Front of class
  ▫ Top 2 ideas

• Students watching sh...
Homework review – my observations
Most did well locally,
Struggled globally

Most did well looking at (a) problems,
 and (...
Where to look for more trends and
inspiration ?…

• Some of my favorite sites….
Inspiration: Mundo S.A (globo)




              http://globonews.globo.com/Jornalismo/GN/0,,JOR315-
Springwise




             http://springwise.com/ideas/
Springwise

• Who is it for?
  ▫ Springwise is required brain food for
    entrepreneurial minds! Whether you're a budding...
Springwise
• Springwise scans the globe for the most promising
  business ventures, ideas and concepts that are ready for
...
Trendwatching.com
A Brazilian version….
VC thought-leaders
More Homework


Sorry!
Homework #1
   3-questions exercise – AGAIN – try
   to improve 2nd time!
• Identify at least (1) major problem, (1) major...
3-questions exercise – AGAIN – try to
   improve 2nd time!
Homework #2
   Group Project
• Pick your group (3 students)
• All groups must deliver the following

  ▫ Proposed product/...
Homework #3
   Social Media project
• To get ready for next class presentation on how global
  entrepreneurs can use socia...
International IQ moment


Great stuff abroad you
should know exists!
Why?
• Travel abroad (in person, online, through media)


 ▫ Above all… learn to be curious about international
   places,...
Santorini, Greece
Santorini, Greece
• Volcano
• Greek Island
• Santorini is essentially what remains of an
  enormous volcanic explosion, de...
International IQ moment


Great stuff abroad you
should know exists!
Mount St. Michael, France
Mount St. Michael, France
Mont Saint-Michel, France
•   Mont Saint-Michel (English: Saint Michael's Mount) is a rocky tidal island and a commune in
...
part 2: Global entrepreneurship class
part 2: Global entrepreneurship class
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Professor Brian Butler. Class at university FBV in Recife Brazil

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part 2: Global entrepreneurship class

  1. 1. Global Entrepreneurship Developing Global Mindset for Entrepreneurs
  2. 2. Brian David Butler Teaching: Brian Butler is currently a professor with Forum-Nexus, which is co-sponsored by the IQS Business School of the Ramon Llull University in Barcelona, and the Catholic University of Milan. He teaches classes on International Finance and Global Entrepreneurship in brian.butler@forum-nexus.com Europe every July and January. briandbutler@gmail.com LinkedIn/briandbutler Skype: briandbutler In Miami, Brian has taught Finance, Economics and Global Trade at Thunderbird’s Global MBA program in Miami. He previously worked as a research analyst at the Columbia University Business School in New York City.
  3. 3. Brian David Butler International: A global citizen, Brian was born in Canada, raised in Switzerland (where he attended international British school), educated through university in the U.S., started his career with a Japanese company, moved to New York to work as an analyst, married a Brazilian, and has traveled brian.butler@forum-nexus.com extensively in Latin America, Asia, Europe and North briandbutler@gmail.com LinkedIn/briandbutler America. Skype: briandbutler Brian currently lives in Recife, Brazil where he is teaching classes on ―Global Entrepreneurship‖ at the university ―Faculdade Boa Viagem‖.
  4. 4. KookyPlan – wiki for Entrepreneurs
  5. 5. Global Entrepreneurship: developing the global mindset for entrepreneurs Class #2 Saturday March 13th, 2010
  6. 6. Resources: www.kookyplan.com
  7. 7. notes • Everyone should have received my email with the updated course syllabus • Exam – will come mostly from my lectures. • My presentations will all be placed online, I will email you the link www.slideshare.net • Discuss next two weekends • Make-up schedule during weeks? • Group projects – ▫ Students should make teams, ▫ Change: allow one country to be Brazil (new)
  8. 8. 1. Introduction, definitions: Review from last class…
  9. 9. Facebook vs. MySpace case study ▫ Who can summarize:  ―what was the importance of international strategy for Facebook when competing with MySpace for market dominance in the US?‖  Who can explain what we meant by ―network effects‖
  10. 10. International strategy = key ▫ ―Most of Facebook‘s growth is international, where they‘ve executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace, by contrast, expands via a command-and-control infrastructure that puts people on the ground in each new international market).
  11. 11. Facebook growth international • International Growth • More than 70 translations available on the site • About 70% of Facebook users are outside the United States • Over 300,000 users helped translate the site through the translations application http://www.facebook.com/press/info.php?statistics
  12. 12. Facebook growth international • International growh = key to winning vs competition • Massive growth in users • Network effect = value of company… leads to more investment…leads to better user experience…leads to more users
  13. 13. Network effect • In economics and business, a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people. When network effect is present, the value of a product or service increases as more people use it. • The classic example is the telephone. The more people who own telephones, the more valuable the telephone is to each owner. This creates a positive externality because a user may purchase their phone without intending to create value for other users, but does so in any case. • Online social networkswork in the same way, with sites like MySpace and Facebook being more useful the more users that join.
  14. 14. Global strategies vs. Localization What are ―global industries‖?
  15. 15. Globalization • ―international borders and trade barriers came down. • Communism fell. • Protectionist walls in Latin America and elsewhere were dismantled. • Governments took a back seat to broader market forces. • Thomas Friedman declared that the Internet and other planet-spanning technologies were erasing national boundaries. The world, he said in a 2005 best seller, was flat.‖
  16. 16. Globalization Why? some industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally. Such industries as * computer manufacture where the products are standardized are prime candidates for global competition.
  17. 17. Globalization • Types of “global” industries • Luxury consumer goods • Pharmaceutical • Technology Other potentially global(ish) industries • Banking (but for local regulations) • Internet (local regulations, language) • Media (film) – local language • Music (some) • Others?
  18. 18. Globalization • Not "Americanization" • Note that globalization does not equal "americanization" ... ▫ proof is that there are just as many sushi restaurants as Mc Donalds, ▫ and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement.
  19. 19. Globalization -- why? • As travel costs have fallen, • communication costs have fallen • and the world has become more technologically integrated, • As a result: ▫ we see new opportunities for even small companies to compete globally. But, on the other hand, we also see company after company failing in global competition because they still think too US, or European-centric, and thus give up global market share to the "clones", or copy cat business models that pop up around the globe. See our discussion about troubles going global (business)
  20. 20. Localization Sometimes, a company can make much more money by ―localizing‖ their products… but at what cost? • Note: it costs $$ to localize (translate), and you might loose economies of scale
  21. 21. Localization • Examples: ▫ Consumer goods  Food  Perfumes  Local tastes, preferences, languages…
  22. 22. Localization • counter trend in retailing ▫ consumers are resisting globalization ▫ going to the other extreme: localization, in which products are just sourced locally, grown locally, produced locally... ▫ consumers are drawn to the appeal of local industry (and are willing to pay more, and have slightly less choice for the privilege of supporting home-grown artists, farmers, and producers).
  23. 23. Localization v Globalization – how much to localize? • How much localization of your product should you make? ▫ If you are marketing a truely global brand, then maybe you dont want to change very much. ▫ But, maybe local requirements mean that you could sell more if you would modify your product. ▫ Each time you make modifications, you loose efficiency (which raises costs), but you might gain a local feel, and become more attractive to different markets. ▫ How much tradeoff should you make in efficiency loss for market share gain? This is the real trick of international marketing!
  24. 24. Localization v Globalization – how much to localize? • Localization leads to more sales, but globalization leads to more efficiency: • Will you need to adapt to the local needs? • Or, can you go with a more global-strategy, and market the product the same to every customer? • The more you adapt the product / marketing mix, the higher your costs will be (and so the profits will be less), but you might find that you need to localize in order to boost sales volumes. • Its a trade off, and one that needs careful consideration. The product adaptation issue is one of the most important decisions that an international marketer must make.
  25. 25. Localization • Example: • A Brazilian cachaca producer that considers selling in Spain might ask themselves: "How are we going to (and how much are we going to) localise the marketing of the brand in Spain? Rather than marketing the liquor the same to Spanish customers, we need to find out a way to make the branding appealing to the Spanish....how much customization will we offer?"
  26. 26. Localization • How much "localization" is necessary? • Luxury goods are one of the few truly "global" brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter. Without needing to tailorize (Localization) the products to meet local tastes, the companies are able to significantly save money on local costs. But, very few products are truly able to do so. Think Rolex. • note that even Mercedez Benz is forced to localize.
  27. 27. 2. The “entrepreneur mindset”: Critical thinking patterns of entrepreneurs…
  28. 28. The “entrepreneur mindset”: • Importance of ▫ critical thinking ▫ idealism, ▫ trend awareness, ▫ problem solving • The importance of Critical Thinking for innovation • ―Fail fast‖ and ―global learning‖ • Brainstorming
  29. 29. Critical thinking • Habit to ask ―what is wrong‖? • Look for problems • Try to ―poke holes‖ in story • What are the ―assumptions‖? Are they realistic? • What could be done better next time?
  30. 30. Idealism • How ―should the world be‖ • Don‘t just look at the way thing are… • Dream how they ―should‖ be: • Is there a gap? • If so, what can / should be done to fix?
  31. 31. trend awareness • What is changing? • Are you aware of the changes? • Are you ready for the challenges? • Will it be you who takes advantage of the opportunities?
  32. 32. Problem solving • Great entrepreneurs are ones that solve problems. • Best ideas come from personal problems
  33. 33. Why solve problems:? • ―Many of the applications we get are imitations of some existing company. That's one source of ideas, but not the best. If you look at the origins of successful startups, few were started in imitation of some other startup. Where did they get their ideas? Usually from some specific, unsolved problem the founders identified.‖ Y Combinator: http://paulgraham.com/startupmistakes.html
  34. 34. Why solve problems:? • It seems like the best problems to solve are ones that affect you personally. Apple happened because Steve Wozniak wanted a computer, Google because Larry and Sergey couldn't find stuff online, Hotmail because Sabeer Bhatia and Jack Smith couldn't exchange email at work. So instead of copying the Facebook, with some variation that the Facebook rightly ignored, look for ideas from the other direction. Instead of starting from companies and working back to the problems they solved, look for problems and imagine the company that might solve them. [2] What do people complain about? What do you wish there was? Y Combinator:
  35. 35. “fast failing” • ―The development of a successful new product, service, or business is often the result of lots of learning from lots of failures. The key is to fail fast and fail cheap. ― • The idea ▫ Dont be afraid to try new business, but if its going to fail, don‘t be afraid to ‗fail fast‘ and move on. Don‘t stretch failure over 3-5 painful years. ▫ The trick is to distinguish between a business that is doomed to fail, from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort, and fighting through tough times) ▫ The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem, (b) ahead of a trend, or (c ) localized properly. ▫ If, its not… and if the startup is doomed to fail… then fail fast! ▫ ―Fast fail‖ is a startup mentality for quickly starting up new businesses, popular within the startup community of Silicon Valley, USA
  36. 36. fast failing • The classic mindset is to try to get a business plan or product 95% right before taking action. This is great in theory, but it rarely works. Why? Because as soon as you ship the product you immediately recognize its fatal flaws. By then, it's often too late to change the packaging, the marketing, or the product itself. • The alternative is to get your idea about 50% right, then let customers tell you what your mistakes are. Listen, learn, get it 50% right, and put your idea through the process again. Keep at it until your customers say, "Wow!" Instead of debating options internally, you'll be making your idea real, taking it to customers, and learning as it fails.
  37. 37. fast failing • Numbers • The math of fail fast and fail cheap is simple. If it takes six months and $100,000 to take a product from idea to customer reaction, then at best you'll get two cycles in a year. However, if you can do a complete cycle of learning in a week for $1,000, you can get 52 cycles in a year at about half the cost.
  38. 38. Brain-storming • process of generating LOTS of ideas quickly • Think outside of the box • Original thinking • Key – don‘t be afraid of uncommon thoughts
  39. 39. Brainstorming • ―a group creativity technique designed to generate a large number of ideas for the solution to a problem.‖
  40. 40. Keys to successful (focused) brainstorming: 1. no judging, dont interrupt ideas 2. build on the ideas of others, rather than just adding your own new ideas 3. stay focused, and dont go off on tangents 4. get everyones involvement by allowing just one person to speak at a time. And make sure to also involve the shy ones 5. quantity, quantity, quantity.... try to get as many ideas as possible in as little time as possible. go, go, go.... a good idea will pop out as you break down the barriers of fear and judgement, and get caught up in the momentum 6. think out of the box, out of the room...out of this world....encourage wild ideas 7. be graphic, visual....sketch out the concept 8. make a prototype, but be FAST (a rough approximation right now is better than a perfect prototype a month from now!)
  41. 41. • Approach • There are four basic rules in brainstorming.[5] These are intended to reduce the social inhibitions that occur in groups and therefore stimulate the generation of new ideas. The expected result is a dynamic synergy that will dramatically increase the creativity of the group. • • Focus on quantity: This rule is a means of enhancing divergent production, aiming to facilitate problem solving through the maxim, quantity breeds quality. The assumption is that the greater the number of ideas generated, the greater the chance of producing a radical and effective solution. • No criticism: It is often emphasized that in group brainstorming, criticism should be put 'on hold'. Instead of immediately stating what might be wrong with an idea, the participants focus on extending or adding to it, reserving criticism for a later 'critical stage' of the process. By suspending judgment, one creates a supportive atmosphere where participants feel free to generate unusual ideas. • Unusual ideas are welcome: To get a good and long list of ideas, unusual ideas are welcomed. They may open new ways of thinking and provide better solutions than regular ideas. They can be generated by looking from another perspective or setting aside assumptions. • Combine and improve ideas: Good ideas can be combined to form a single very good idea, as suggested by the slogan "1+1=3". This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone. It is believed to stimulate the building of ideas by a process of association.
  42. 42. 2. why be an entrepreneur? Class participation…
  43. 43. Review last week: • What are the benefits of global entrepreneurship? What are the challenges? Can small enterprises really go global? • Class discuss…
  44. 44. “Thinking global for entrepreneurs” • Example: furniture company should look for global efficiencies and world wide centers of excellence. • ideal structure ▫ design my products in cheapest / best place in world, ▫ manufacture in cheapest / best place in world, ▫ market with service and with warranty ▫ Offer a customized product (tailorization) ▫ keep on innovating (sustainable). ▫ locate my design center in New York City where competitive pressure and close proximity to global trends would keep us ahead of changing consumer demands. ▫ manufacture my furniture in the cheapest place possible for my desired level of quality, perhaps looking at China, India or Vietnam as potential sources. ▫ use flexibility to service customers before and after the sale, allowing them to customize their products.
  45. 45. “Thinking global for entrepreneurs” • Example: furniture company should look for global efficiencies and world wide centers of excellence. • ideal structure ▫ For my management structure, I would need to be flexible enough to allow for exchange rate changes, meaning that I might need to shift my production from one country to another if FX rates changed, and I would need to be flexible enough to shift with style changes and changes in consumer preferences. ▫ I would try to develop my worldwide learning, and realize that design innovations could come from everywhere. ▫ I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology). ▫ But, more importantly than anything, if I were to really think like a transnational manager, I would have to shift my way of thinking away from a Brazilian furniture exporter, and to a ―global brand developer‖.
  46. 46. Why become an entrepreneur? • Class: discussion – summarize here: 1. . 2. . 3. . 4. . 5. .
  47. 47. What are Entrepreneurs “like”? (personal characteristics/ attributes) • Class: discussion – summarize here: 1. . 2. . 3. . 4. . 5. .
  48. 48. What it means to be an "entrepreneur"? • An Entrepreneur: ▫ is someone with big ideas, and a strong belief that they can make it happen. ▫ An entrepreneur is a risk taker, someone that is willing to lay it all on the line for the opportunity of big returns. http://kookyplan.pbworks.com/
  49. 49. Risk • Entrepreneurship is about taking risk. • The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea, spending much time as well as capital on an uncertain venture. http://kookyplan.pbworks.com/
  50. 50. Types of entrepreneurs 1. Lifestyle Entrepreneurs: ▫ Those that start up a business in a niche, making a living on their own, and satisfying the needs of a small group of clients that a bigger chain can not, or does not want to (yet). These entrepreneurs accept the rules of the game the way they are, and seek to exploit opportunities as the see them. This group of entrepreneurs should NOT seek Venture capital funding, and instead should look to self-fund, or look for a rich uncle (or a bank loan). 2. Dreaming Big Entrepreneurs ▫ Those that launch a business with grand aspirations, that seek to "go national", or "go global". ▫ These entrepreneurs will find stiff competition from existing firms, and will succeed only if they find a way to change the rules of the game. ▫ They seek to create their own opportunities and to disrupt others business plans. ▫ These are the ones that often get venture capital funding. http://kookyplan.pbworks.com/
  51. 51. • Characteristics of typical Entrepreneurs • John G. Burch (Business Horizons, September 1986) lists traits typical of entrepreneurs: • A desire to achieve: ▫ The push to conquer problems, and give birth to a successful venture. • Hard work: ▫ It is often suggested that many entrepreneurs are workaholics. • Desire to work for themselves: ▫ Entrepreneurs like to work for themselves rather than working for an organization or any other individual. They may work for someone to gain the knowledge of the product or service that they may want to produce. • Nurturing quality: ▫ Willing to take charge of, and watch over a venture until it can stand alone. • Acceptance of responsibility: ▫ Are morally, legally, and mentally accountable for their ventures. Some entrepreneurs may be driven more by altruism than by self-interest.
  52. 52. • Characteristics of typical Entrepreneurs • Reward orientation: ▫ Desire to achieve, work hard, and take responsibility, but also with a commensurate desire to be rewarded handsomely for their efforts; rewards can be in forms other than money, such as recognition and respect. • Optimism: ▫ Live by the philosophy that this is the best of times, and that anything is possible. • Orientation to excellence: ▫ Often desire to achieve something outstanding that they can be proud of. • Organization: ▫ Are good at bringing together the components (including people) of a venture. • Profit orientation: ▫ Want to make a profit; but the profit serves primarily as a meter to gauge their success and achievement. http://kookyplan.pbworks.com/
  53. 53. Great for a resume (CV) • Note, if you do launch your business idea, and then later return to the market to try and find a job… all of these attributes are high demand:
  54. 54. • 1. Vision • 2. Passion • 3. Purpose • 4. Adaptability • 5. Leadership Skills • 6. Networking Savvy • 7. Determination • 8. Positive attitude http://kookyplan.pbworks.com/
  55. 55. What is an “entrepreneur”? • Entrepreneurship merges the visionary and the pragmatic. • It requires knowledge, imagination, perception, practicality, persistence, and attention to others. http://kookyplan.pbworks.com/
  56. 56. What is an “entrepreneur”? • …often is mistaken for—invention, creativity, management, starting a small business, or becoming self-employed, it is neither identical with nor reducible to any of them. • The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt. http://kookyplan.pbworks.com/
  57. 57. What is an “entrepreneur”? • Hence, entrepreneurship entails the commercialization (or its functional equivalent) of an innovation. http://kookyplan.pbworks.com/
  58. 58. What is an “entrepreneur”? • The market judges utility and need along with excellence. It does not value—and does not need to value—every good idea. • The entrepreneur‘s risk, therefore, is not a gamble but an informed calculation about the viability of the new enterprise in the market, about its capacity to meet a demand or need of others. http://kookyplan.pbworks.com/
  59. 59. Can you teach “entrepreneurship?” Study from Kauffman Foundation:
  60. 60. In high esteem: • Entrepreneurs are among the most celebrated people in our culture. • Celebrity entrepreneurs such as Steve Jobs (Apple), Bill Gates (Microsoft), Sergei Brin, and Larry Page (Google) often grace the covers of prominent publications. • These company founders and innovators fuel economic growth and give the nation its competitive edge. Techcrunch.com, by Vivek Wadhwa on Feb 27, 2010
  61. 61. But, Can Entrepreneurs Be Made? Can you teach someone to be an entrepreneur? The pessismists Say ―NO‖: ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding: young, brash, stubborn, and arrogant. They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school. Techcrunch.com, by Vivek Wadhwa on Feb 27, 2010
  62. 62. Saying NO: ―Angel investor and entrepreneur, Jason Calacanis said as much in his recent talk to Penn State students. And after meeting Wharton students, VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs. Wilson wrote, ―I‘ve been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not.‖ Techcrunch.com, by Vivek Wadhwa on Feb 27, 2010
  63. 63. On the other hand… Most successful entrepreneurs do NOT come from entrepreneurial families, and do NOT have entrepreneurial ―genes‖ • 52% of the successful entrepreneurs were the first in their immediate families to start a business — just like Bill Gates, Jeff Bezos, Larry Page, Sergei Brin, and Russell Simmons (Def Jam founder). • Their parents were academics, lawyers, factory workers, priests, bureaucrats, etc. • About 39% had an entrepreneurial father, and 7% had an entrepreneurial mother. (Some had both.) Techcrunch.com, by Vivek Wadhwa on Feb 27
  64. 64. Saying “YES”: ▫ The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively. ▫ Over the last six years, it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects. (Kauffman has also funded some of my research at Duke, UC- Berkeley, and Harvard.) • Its VP of Research, Bob Litan, says ▫ ―Kauffman has learnt conclusively that entrepreneurship can be taught!!” Techcrunch.com, by Vivek Wadhwa on Feb 27
  65. 65. Creating the “cluster” • That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs. • This aims to dramatically increase the ability of small businesses to become big businesses. • The Labs program is built around a novel idea: that highly motivated individuals with ―scalable ideas‖ can be recruited to be entrepreneur sand to be made successful, by surrounding them with a network of other experienced entrepreneurs; sources of money; and mentors. • The goal is to educate entrepreneurs and surround them with a powerful network. • This is like a Y Combinator on steroids. Techcrunch.com, by Vivek Wadhwa on Feb 27
  66. 66. Family + genes – important? • More important are you social and professional networks ▫ ―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes. ― ▫ VC and former entrepreneur Brad Feld also blogged about how many of his frat buddies at MIT had become successful entrepreneurs. • Were all of these people born to be entrepreneurs as well? I don‘t think so. Techcrunch.com, by Vivek Wadhwa on Feb 27
  67. 67. What matters… • education, • exposure to entrepreneurship, • networks Techcrunch.com, by Vivek Wadhwa on Feb 27
  68. 68. Do you need to start early? • NO! • Only a quarter caught the entrepreneurial bug when in college. Half didn‘t even think about entrepreneurship, and they had little interest in it when in school. Techcrunch.com, by Vivek Wadhwa on Feb 27
  69. 69. Do you need a Harvard Education? NO! • Level of Education does matter — but not the college they graduate from. • Significant difference between companies started by founders with just high-school diplomas and the rest. • Education provided a huge advantage. But there wasn’t a big difference between firms founded by Ivy-league graduates and the graduates of other universities. Techcrunch.com, by Vivek Wadhwa on Feb 27
  70. 70. Profile of successful (high-growth) entrepreneurs • Company founders tend to be middle-aged and well-educated, and did better in high school than in college • These entrepreneurs tend to come from middle- class or upper-lower-class backgrounds, and were better educated and more entrepreneurial than their parents • Most entrepreneurs are married and have children • Early interest and propensity to start companies Techcrunch.com, by Vivek Wadhwa on Feb 27
  71. 71. Profile of successful (high-growth) entrepreneurs • Top 4 Motivations for becoming entrepreneurs: 1. building wealth, 2. owning a company, 3. startup culture, and c 4. capitalizing on a business idea Techcrunch.com, by Vivek Wadhwa on Feb 27
  72. 72. Profile of successful (high-growth) entrepreneurs • Not important or less-important factors: 1. inability to obtain employment 2. encouragement from others Techcrunch.com, by Vivek Wadhwa on Feb 27
  73. 73. Profile of successful (high-growth) entrepreneurs • One common factor: 1. Most had significant industry experience when starting their companies Techcrunch.com, by Vivek Wadhwa on Feb 27
  74. 74. Industry experience • suggestion: 1. Go get a job, any job for 6 months – 1 year in the industry before launching your own venture (officially) . ▫ Personal experience: furniture example: wasted 3 years learning what I should have already known, and would have been taught had I taken a sales job at a competitor Techcrunch.com, by Vivek Wadhwa on Feb 27
  75. 75. Profiles of Entrepreneurs • One note: the profile of entrepreneurs outline above is slightly different for one group…..
  76. 76. Profile of successful (high-growth) entrepreneurs • But… the profile of “Early entrepreneurs” (young) and those with an early interest in entrepreneurship are different ▫ Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (36.6 percent vs. the total sample average of 69.9 percent) or to have kids when they launched their first businesses (26.9 percent vs. the total sample average of 59.6 percent). ▫ Those who were ―extremely interested‖ in starting a company while in college were far more likely to be early entrepreneurs. Of these entrepreneurs, 69 percent started their companies within ten years of working for someone else (as compared to 46.8 percent from the rest of the population). ▫ Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a business—only 18 percent from the ―extremely interested‖ group worked for at least fifteen years before starting their own businesses, as compared to 46.4 percent from the ―not very interested‖ group. Techcrunch.com, by Vivek Wadhwa on Feb 27
  77. 77. Homework from last class Student presentations (each student to present)
  78. 78. Homework review 3-questions exercise • Identify at least (1) major problem, (1) major trend, and (1) transferrable idea in: • (a) locally – Recife • (b) locally – Brazil • ( c) globally – some other part of world, or worldwide • Due next week – Maximum 1 page – word document – submit by email to : briandbutler@gmail.com
  79. 79. 3-questions exercise – AGAIN – try to improve 2nd time!
  80. 80. Class Schedule: Topics to cover: The “Three Questions” framework • The ―three questions‖ framework 1. ―what is the problem,  and what are you going to do about it?‖; 2. ―What is the trend?  and how are you going to get in front of it?‖, 3. ―what is great here / somewhere else?  and where else could it work? how are you going to localize it? Where else could you bring this idea and find success?
  81. 81. Problem solving ▫ Problem solving: ―what is the problem, and what are you going to do about it?‖ Seeking Opportunities by solving problems.
  82. 82. Trends ▫ Trend awareness: ―What is the trend, and how are you going to get in front of it?‖ Analyzing trends to find opportunities. Increase student‘s awareness of global trends, and global business models. ▫ global changes  technology, communications, capital markets, regulations, consumer tastes, credit availability, technology and more; and how they create opportunities for entrepreneurs
  83. 83. WIWH – localizing business models • Localizing business models: WIWH: ―would it work here‖: a look at what is great here / somewhere else, and a systematic approach to analyzing potential of localizing foreign business models.
  84. 84. Homework Review – class participation • Each student to present ▫ Front of class ▫ Top 2 ideas • Students watching should ▫ Think critically ▫ Ask questions ▫ Challenge assumptions • All students should take notes over the course of the semester ▫ Top problems (locally, nationally, globally) ▫ Top trends (l, n, g) ▫ Top transferrable ideas (l, n, g)
  85. 85. Homework review – my observations Most did well locally, Struggled globally Most did well looking at (a) problems, and (c) ideas to transfer But struggled with ―trends‖
  86. 86. Where to look for more trends and inspiration ?… • Some of my favorite sites….
  87. 87. Inspiration: Mundo S.A (globo) http://globonews.globo.com/Jornalismo/GN/0,,JOR315-
  88. 88. Springwise http://springwise.com/ideas/
  89. 89. Springwise • Who is it for? ▫ Springwise is required brain food for entrepreneurial minds! Whether you're a budding entrepreneur, head of a start-up, management consultant, marketing manager, consumer insights expert, trend watcher, journalist, private investor, business development director, or venture capitalist, Springwise will instantly inspire you by getting the world's most promising new business ideas and young ventures right in front of you. http://springwise.com/ideas/
  90. 90. Springwise • Springwise scans the globe for the most promising business ventures, ideas and concepts that are ready for regional or international adaptation, expansion, partnering, investments or cooperation. We ferociously track more than 400 global offline and online business resources, as well as taking to the streets, cameras at hand. • To ensure true ‗glocal‘ coverage, the central office is in close contact with more than 8,000 Springspotters in over 70 countries worldwide. Springwise's weekly newsletter, to which you can subscribe for free, is sent to more than 100,000 business professionals in more than 120 countries. • Springwise is the first company to compile and send out a newsletter like this on a global scale, making optimal use of an ever more networked world. Established in spring of 2002, Springwise is headquartered in Amsterdam, The Netherlands. http://springwise.com/ideas/
  91. 91. Trendwatching.com
  92. 92. A Brazilian version….
  93. 93. VC thought-leaders
  94. 94. More Homework Sorry!
  95. 95. Homework #1 3-questions exercise – AGAIN – try to improve 2nd time! • Identify at least (1) major problem, (1) major trend, and (1) transferrable idea in: • (a) locally – Recife • (b) locally – Brazil • ( c) globally – some other part of world, or worldwide • Due Saturday March 20th – Maximum 1 page – word document – submit by email to : briandbutler@gmail.com
  96. 96. 3-questions exercise – AGAIN – try to improve 2nd time!
  97. 97. Homework #2 Group Project • Pick your group (3 students) • All groups must deliver the following ▫ Proposed product/ service ▫ Proposed 2 countries ▫ Outline of major issues (cultural, technological, political, economic…for why it may / or may not work) ▫ Due: Saturday 27th 10am ▫ Word document 2 pages max ▫ submit by email to : briandbutler@gmail.com
  98. 98. Homework #3 Social Media project • To get ready for next class presentation on how global entrepreneurs can use social media to attract global clients: • All students must signup for ▫ Twitter, facebook, linkedin ▫ Be prepared for discussion about ―social media‖ and entrepreneurship • Extra credit +1 point for class participation: available to student that finds & connects with me on the most number of locations ▫ Due: Tursday, May 1st (before easter)
  99. 99. International IQ moment Great stuff abroad you should know exists!
  100. 100. Why? • Travel abroad (in person, online, through media) ▫ Above all… learn to be curious about international places, people, cultures, businesses, events, politics, etc.. ▫ Increase your international IQ every day!
  101. 101. Santorini, Greece
  102. 102. Santorini, Greece • Volcano • Greek Island • Santorini is essentially what remains of an enormous volcanic explosion, destroying the earliest settlements on what was formerly a single island, and leading to the creation of the current geological caldera.
  103. 103. International IQ moment Great stuff abroad you should know exists!
  104. 104. Mount St. Michael, France
  105. 105. Mount St. Michael, France
  106. 106. Mont Saint-Michel, France • Mont Saint-Michel (English: Saint Michael's Mount) is a rocky tidal island and a commune in Normandy, France (Le Mont-Saint-Michel). • Tidal island • Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge, which before modernization was covered at high tide and revealed at low tide. This has been compromised by several developments. Over the centuries, the coastal flats have been polderised to create pasture. Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased. The Couesnon River has been canalised, reducing the flow of water and thereby encouraging a silting-up of the bay. In 1879, the land bridge was fortified into a true causeway. This prevented the tide from scouring the silt round the mount. • On 16 June 2006, the French prime minister and regional authorities announced a €164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides, and to make Mont-Saint- Michel an island again. It is expected to be completed by 2012.[2] • The construction of the dam is now complete (it was inaugurated in 2009). The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged, to join the island to the continent, but also used as a parking for visitors. It will be replaced by an elevated light bridge, under which the waters will flow more freely, and that will improve the efficiency of the now operational dam, and the construction of another parking on the continent. Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles.
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