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Educating Professional Entrepreneurs for the 21st Century: 2007 NAME Lecture by Thomas A. Bryant, Ph.D.

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Name lecture 2007 tab

  1. 1. EducatingProfessional Entrepreneurs for the 21st Century:The Academy of Management, Management Education Division Exchange Presentation for 2007 Thomas A. Bryant, Ph.D. Rohrer Endowed Chair in Entrepreneurial Studies Rowan University, USA @ the Nippon Academy of Management Education, Takamatsu; 23 November 2007
  2. 2. Agenda Define the standards Identify the state of the art Discuss the leading edges of the field23 November 2007 Dr. Tom Bryant @ NAME Conference2
  3. 3. Why Study Entrepreneurship? Social value of the economy: Goods and services  Innovators create new goods and services  Entrepreneurs test and prove their market potential  Big companies consolidate and distribute efficiently (MANAGEMENT?)  Corporate innovation / entrepreneurship23 November 2007 Dr. Tom Bryant @ NAME Conference3
  4. 4. Social Value 2 Jobs  Meaningful work  Wages => exchange value (cash to buy things) Who creates the new jobs?23 November 2007 Dr. Tom Bryant @ NAME Conference4
  5. 5. David Birch (MIT), 1979 US Economy: 16 million new jobs Fortune 1000 Companies:  No change in the number of jobs Government / public sector  Minor growth Small business  Not much change “Gazelles” (3% of firms)  Fast growing, job creators -- Led by entrepreneurs23 November 2007 Dr. Tom Bryant @ NAME Conference5
  6. 6. Edward Lowe Foundation, 2007 Job creation effects, 2003-2006, Philadelphia MSA Category Stages Ownership Job Creation % of Net New Jobs Firms 1-9 1: Startup Local +105,000 +43% Firms 10-99 2: Growth Local +110,000 +45% Firms 100-999 3 & 4: mid- Local? +10,000 +5% sized Non-profit / Local? +15,000 +7% Public Gains +236,000 Firms > 999 5: Consolidation Not local? -210,000 -93% Losses -210,000 Cumulative +26,000 +7%23 November 2007 Dr. Tom Bryant @ NAME Conference6
  7. 7. ENTR Ed vs. SBM Small Business Management (=SBM)  Older field  Focused on excellence in non-growth firms  Efficiency Entrepreneurship Education (= ENTR Ed)  Focused on Creating and guiding GROWTH  Creativity  New Ventures  Innovation management23 November 2007 Dr. Tom Bryant @ NAME Conference7
  8. 8. ENTR Ed in Business Schools:Standard: Same as Accounting, Marketing,Finance, MIS, Engineering, or Education Competence in the  Undergraduates: accepted knowledge and Ready to earn a decent current practices living as an entry-level Ready to start work, professional in the field begin career, advance  MBAs: toward senior levels of Ready to earn a good occupation living as an mid-level professional in the field23 November 2007 Dr. Tom Bryant @ NAME Conference8
  9. 9. What Do Professional Entrepreneurs Do? MUST focus on successful practitioners NOT the average, or the poor performers Entrepreneurship defined by:  Creating new organizations (for-profit, and social)  Growing at well-above-average rates  Recycling economic resources to higher value uses Who are the model performers?23 November 2007 Dr. Tom Bryant @ NAME Conference9
  10. 10. Professional Entrepreneurs Start new ventures --  Add value at above- and sell them for a average rates profit  Create incremental Start new ventures -- value (1+1>2) and keep them growing for a full career  Innovate Take over static or  Seize opportunities declining ventures and  Reject bad deals turn them back into growth engines  Cut their losses early  Accumulate wealth23 November 2007 Dr. Tom Bryant @ NAME Conference10
  11. 11. Entrepreneurs Get Paid As managers -- salary As entrepreneurs -- for growth in equity As investors -- for returns on invested capital Daily -- in challenge and excitement Monthly -- salary / owner’s draw Exit -- change in equity value23 November 2007 Dr. Tom Bryant @ NAME Conference11
  12. 12. Emergence of ENTR Ed A few courses on Small Business Management David Birch, 1979: Gazelles create jobs Drive to uncover latent entrepreneurs Public support for entrepreneurs and ENTR Ed Focus on Start-ups High value-added startups: Technology? Corporate entrepreneurship: the growth layer Family business: mix of growth and SB Management Edward Lowe Foundation, 2007: “Second stage”23 November 2007 Dr. Tom Bryant @ NAME Conference12
  13. 13. Can Entrepreneurship Be Taught? Learned? Many ways! Hard knocks (original) Observation of practice / informal apprenticeship (old-fashioned) Research-based pedagogy (modern) Fastest growing field in Academy of Management for nearly a decade  Over 4000 member in ENT Division now  Over 50% of US colleges and universities23 November 2007 Dr. Tom Bryant @ NAME Conference13
  14. 14. Tracks within ENTR Ed Lead Entrepreneurs (15%) Entrepreneurial support providers (25%) Family business inheritors (30%) Corporate innovation managers (30%) Small business experts (?)23 November 2007 Dr. Tom Bryant @ NAME Conference14
  15. 15. The Domain: What Skills Do ENTR Students Learn? Opportunity generation /creativity Feasibility assessment Planning new ventures New venture implementation Growth Harvest / exit23 November 2007 Dr. Tom Bryant @ NAME Conference15
  16. 16. The Startup Courses Creativity (brainstorming, etc.) Opportunity scanning and selection Feasibility analyses New Business Plans23 November 2007 Dr. Tom Bryant @ NAME Conference16
  17. 17. Corporate ENTR Ed Managing growth (organic) Deal-making  Mergers and acquisitions  Divestitures  Abandonments Intellectual property Valuation Innovation management  New Products23 November 2007 Dr. Tom Bryant @ NAME Conference17
  18. 18. Managing Growth Only 1 of 14 ENTR courses at Rowan Edward Lowe Foundation data: 45% of USA net job creation occurs among firms with 10- 99 employees, $1Million-$100Million TAB’s Growth course at Rowan:  Buy a business ($100K - $250K, with leverage):  What is worth buying? What is not?  Add value: grow it (by adding what?)  Exit and harvest added value23 November 2007 Dr. Tom Bryant @ NAME Conference18
  19. 19. Specialty Courses Franchising Sectors New venture finance  Retail Corporate innovation  Tourism management  Fashion Excellence in Small  Food Business Management  Agriculture Family Business  Manufacturing Technology Social / not-for-profit23 November 2007 Dr. Tom Bryant @ NAME Conference19
  20. 20. Can ENTR Ed Fit into Business Ed?  Karl Vesper (U Washington): No, need separate schools (Coleman keynote at USASBE ….)  Bruce (UND): $50 million School of ENTR  More than half of US schools now trying anyway  Many international programs  Faculty converted from  Practitioners (personal evidence, learning, stories)  Strategy, Marketing, Engineering, etc. (Textbooks, research evidence?)  Emerging faculty with PhDs in ENTR: (Louisville, Boulder, MIT, Indiana, UMKC, others)  Does it make a difference? 23 November 2007 Dr. Tom Bryant @ NAME Conference20
  21. 21. Where Does ENTR Fit? Creative destruction (Schumpeter, Branson) Innovation: creation and management (Tidd) Insights into the bleeding edge of management (Ducker) Critical importance of dynamic orgs, (Christensen) Intelligence (Romer)23 November 2007 Dr. Tom Bryant @ NAME Conference21
  22. 22. Across functional disciplines Accounting: Tax strategies; Cash flow forecasts Strategy: Creation, change, M&A, Marketing: New product / New venture assessments, launches Finance: Valuation, re-assignment of assets, asset classes23 November 2007 Dr. Tom Bryant @ NAME Conference22
  23. 23. Methods of Teaching / Learning Lecture / study Practice Theory & Practice Different Learning Styles (e.g., Learning Concept Inventory; Tom Hawk paper) Learning Motivations23 November 2007 Dr. Tom Bryant @ NAME Conference23
  24. 24. Motivations to Learn Each student needs at least one thing that pulls him / her into the material With that “velcro,” students then study the rest of the material How do we learn? How many kinds of hooks?23 November 2007 Dr. Tom Bryant @ NAME Conference24
  25. 25. Learning Velcro: Conceptual Thinking Written word  Simulations Spoken word  Practice reality Displayed word, e.g.,  Pictures PPT  Video Cases  Music23 November 2007 Dr. Tom Bryant @ NAME Conference25
  26. 26. Story-Telling Experiences & Empirically Based Research Story-telling  Empirical literature Direct contact  Broad patterns Students enjoy  Extrapolate Like case method  Not enough detail to Hard to extrapolate to determine valid new situations, different exceptions people.  May limit creativity23 November 2007 Dr. Tom Bryant @ NAME Conference26
  27. 27. Theory & Practice Courses  Experiential learning Textbooks  From experts Structured learning  From personal Best practices experience Testable, in common  PBL = Project-Based Relative expertise Learning Body of knowledge  Adapted to individual Modeled on successful  Personal meaning practitioners23 November 2007 Dr. Tom Bryant @ NAME Conference27
  28. 28. Internships in Japan, AY2006 Kyodo News, reported in The Daily Yomiuri: 21 November, 2007, p. 2: Education, Science and Technology Ministry (Japan) 50,430 internships from 482 Japanese universities in AY 2006 66% of universities, up 35% over AY 2005 8,000 more internships than AY 200523 November 2007 Dr. Tom Bryant @ NAME Conference28
  29. 29. Experiential Learning in ENTR Internships: Projects within the ENTR Center (freshmen?) Apprenticeships: Assistant to the Entrepreneur Junior Partners: Sweat equity, with Senior Partner Employee Manager Partner Owner: Select, plan, launch, operate, exit23 November 2007 Dr. Tom Bryant @ NAME Conference29
  30. 30. On-Campus Ventures: 30-60? What campus-related ventures could ENTR students own and operate? Brain-storming session: 3-4 >> 30-65!! Freshmen: work in several Sophomores: buy in Juniors: manage Seniors: own and exit Putting them through college by virtue of ENTR experience: Will parents buy in?23 November 2007 Dr. Tom Bryant @ NAME Conference30
  31. 31. Impacts of University ENTR Programs Presence on campus: attitudes, legends, stories  May affect learning models, expected outcomes Indirect: friend, colleague Once over lightly: one workshop or course:  creating potential for lifelong learning Minors and Certificates: skills, attitudes Majors, Specialists: careers, professionals23 November 2007 Dr. Tom Bryant @ NAME Conference31
  32. 32. Conclusions Still a very young field: much left to learn Vitally important domain: creating value, and managing its growth. Focus on core outcomes: successful venture development, value-added, change management Professional standards: best practices, measurable outcomes, transferable knowledge.23 November 2007 Dr. Tom Bryant @ NAME Conference32