SlideShare a Scribd company logo
1




Warwick Business School Alumni Association magazine: summer 06
2
3

 message from the dean                                                                                                              3




                                A   s Dean of one of Europe’s
                                    leading business schools
                                I am delighted that this
                                                                         resources will pave the way to ensuring that we can
                                                                         compete with the very best in terms of attracting and
                                                                         maintaining the very best faculty and students, and also
                                summer’s graduation will take            offering world class facilities.
                                our alumni community to over
                                20,000. I hope that we can               As the academic year draws to a close and our new
                                inspire you all to tell our story        building nears completion, it is time to bid a fond
                                strongly to the outside world            farewell to the current Vice-Chancellor, Professor
                                and promote our brand, thus              David VandeLinde. Throughout his time at Warwick
                                ensuring that WBS goes from              David has been a loyal supporter of WBS and personally
                                strength to strength.                    championed the idea that WBS should enjoy the
                                                                         devolved budgetary status that we now do. Without a
    A tremendous boost to the School has come in the last                doubt the progress made by WBS in the last five years
    few months with a gift to WBS of £500,000 from the                   would not have been possible without David’s support.
    University’s Chancellor, Sir Nick Scheele. I would like to           We wish him the very best in his retirement.
    reiterate my personal thanks for this gift. Sir Nick, who
    was President and COO of Ford Motor Company until                    WBS is regularly described as having fostered an
    February 2005, said: ‘Throughout my career in business,              entrepreneurial spirit in its students and this edition
    I have supported the concept of leading by example and               of nexus gives you a glimpse of that. I hope you enjoy
    accordingly have donated a gift of £500,000 in the hope              reading it as much as I have. I look forward to hearing
    that others will follow suit so that we can begin to redress         your own tales of entrepreneurship over the years to
    the balance with our friends [at business schools] in the            come – do keep us posted!
    USA and compete on a more even playing field.’

    I am delighted to announce that this very generous
    gift was followed shortly after by several other major
    donations to WBS from graduates. As funding from the
    government continues to play a less significant role in our
    sources of portfolio income here at WBS such additional




   contents

  4–7   WBS news                                                    7                          9
    8   teaching entrepreneurship
        Nigel Sykes
   9    getting started
        Robbie Vann-Adibé
   10   from Dragons’ Den to ER
        Professor Harry Scarbrough
   11   in mint condition
        Tim Morgan                                           20                22
   12   the habitual entrepreneur phenomenon
        Professor Paul Westhead
   13   smart choice
        Dr Frank Craig                                                                         11
   14   entrepreneurship and development finance
        Andrew Trigg
   15   social entrepreneurship
        Dr Paul Tracey                                              19
   16   WBS development programme
   17   WBS alumni board
   18   volunteers in action
   19   overseas event reviews
20–21   UK event reviews
22–23   alumni news
4 nexus: summer 06                                                                                      research review

                         WBS’s Industrial                               Dr Simon                The second is a comparative study of
                         Relations Research                             Collinson, MSM,         European multinational firms in China,
                         Unit (IRRU) has                                recently elected        also looking at joint-ventures and alliances.
                         been awarded a                                 Lead Ghoshal            A central question is: who is learning
                         major contract to                              Fellow under            what in such partnerships and why does it
                         provide information                            the ESRC and            matter? The study, run jointly with Mark
                         and analysis                                   EPSRC sponsored         Easterby-Smith at Lancaster University,
     Mark Hall IRRU      for a new EU            Simon Collinson MSM    Advanced Institute      examines the possibility that European
                         research network                               of Management           firms are ‘breeding their future competitors’
monitoring developments in industrial          (AIM), has commenced work on two                 in China. The findings will help EU firms
relations, working conditions and corporate    further ESRC funded projects. One to             better understand the challenge of engaging
restructuring. As well as providing a range    study British small and medium-sized             with China whilst retaining their own
of inputs focusing on UK developments,         enterprises (SMEs) in China to understand        competitive advantages. Simon adds, ‘A
IRRU is one of just three institutes           the challenges they face in alliances and        number of UK and European firms already
across the EU chosen to coordinate the         joint-ventures with Chinese firms. The            involved in the study have been introduced
preparation of a series of comparative,        project will provide insights into the           by WBS alumni. I’m interested in hearing
analytical reports on key EU-wide topics.      problems of entering and operating in            from any alumni working for UK or EU
The contract for this work is worth up         China for firms that have limited resources       firms that are involved in joint-ventures
to €275,000 per year and will run for          and expertise but see huge opportunities in      or alliances in China who are willing to
four years. The project started in March,      this emerging market.                            participate.’ E simon.collinson@wbs.ac.uk
supervised by Principal Research Fellow
Mark Hall.
                                                                         Much discourse         innovation include not only managers and
                                                                         about public           staff, but also politicians and service users.
The new network, sponsored by the
                                                                         services reform        Public sector innovation needs to be judged
Dublin-based European Foundation for
                                                                         appears to hinge       against different criteria of success from the
the Improvement of Living and Working
                                                                         on the need for        private firm. For the latter, organisational
Conditions, is intended primarily to serve
                                                                         public organisations   advantage is the metric of success, whereas
the needs of a core audience of employers’
                                                                         to become more         the measure for public services is public
associations and trade unions at national
                                                  Jean Hartley IGPM      innovative. Yet,       value, which concentrates on benefits
and European level, governments and EU
                                                                         innovation in the      for the whole of society not solely the
institutions. It will replace three separate
                                               public service sector is poorly understood,      individual organisation.
EU ‘observatories’, including the European
                                               and there is an over-reliance on models of
Industrial Relations Observatory, which
                                               innovation from the private sector.              Jean’s research is funded through the
IRRU has been part of since its inception
                                                                                                Economic and Social Research Council’s
in 1996, and the more recent European
                                               Research, workshops and teaching by              Advanced Institute of Management (AIM),
Working Conditions Observatory, for which
                                               Professor Jean Hartley, of the Institute of      of which she is a Public Service Fellow.
IRRU has provided UK data since April 2005.
                                               Governance and Public Management, aim            She also leads a large research programme
                                               to fill this gap. Her work has developed          examining the diffusion of innovation in
                        Dr Lynne Oats,
                                               ideas and models of practical value to           local government. Her major report on
                        Senior Lecturer
                                               policy-makers and practitioners as well as       innovation was recently published on a
                        in Accounting
                                               contributing to academic knowledge not           government website.
                        and Taxation,
                                               only about the public sector but also the
                        has received an
                                               private and voluntary sectors.                   W www.communities.gov.uk/pub/176/Inno
                        award from the
                                                                                                vationanditsContributiontoImprovementA
    Lynne Oats AFIN     Centre for Business
                                               The public service sector is replete with        ReviewExecutiveSummary_id1500176.pdf
                        Performance,
                                               examples of innovation but the drivers of
Institute of Chartered Accountants in
England and Wales, to investigate the
changing role of accounting in the                                      Research by Dr Sue      professional qualifications by managers
corporate tax compliance process. The                                   Bridgewater, MSM        and prospective managers. This relatively
project, to be conducted with Penelope                                  group, revealed         recent interest in gaining professional
Tuck, University of Southampton, will                                   that over 500           management qualifications is already
examine the ways in which the recent trend                              managers for the        making a real difference to management
towards alignment of accounting and tax                                 four top English        performance and thus length of tenure in
profits in the UK affects the relationship                               divisions have been     management posts. Both the Pro License
between HM Revenue and Customs and                                      dismissed from their    and the Certificate in Football Management
                                                 Sue Bridgewater MSM
large corporate taxpayers.                                              post since 1992,        run by WBS are proving increasingly
                                                                        bringing damaging       attractive to managers and prospective
Mark Hall and Professor Mike Terry, IRRU,      instability to the game. However, she also       managers seeking to add managerial insight
with Professor John Purcell, University of     outlined how a new professionalism in the        to their considerable football skills.
Bath, have been awarded a major two to four    post of manager is already achieving results
year research project for the Department       on the pitch and could thus help managers        To download the report
of Trade and Industry. The contract, worth     stay in post longer.                             w www.wbs.ac.uk/downloads/research/
£190,000 over the first two years, involves                                                      football-managers-0106.pdf
assessing organisational responses to the      Sue’s report demonstrated a significant           For more information on the Certificate in
recent Information and Consultation of         change in the fortunes of managers brought       Football Management
Employees (ICE) Regulations.                   about by the increasing uptake of relevant       w www.wbs.ac.uk/executive/football.cfm
research review                          nexus: summer 06                                                                                     5


                         A new report from       by Government to build a new fleet of                                  CSME hosted the
                         Dr Catherine            stations will undermine the development                               International
                         Mitchell and Dr         of the far more important renewable and                               Conference on the
                         Bridget Woodman         demand reduction technologies which are                               Financing of SMEs in
                         of the WBS Centre       necessary to reduce carbon emissions from                             Developed Countries
  Catherine Mitchell and
 Bridget Woodman CMuR
                         for Management          the remaining 92 percent or so of energy                              in April, building
                                                                                                    Stuart Fraser CSME
                         under Regulation        demand. For more information on the                                   on the outcomes
(CMuR) which examines the contribution           report, published by WBS together with           and response to the ground-breaking UK
nuclear power could make to the UK’s             environmental think tank Green Alliance          research into SME finances by Dr Stuart
energy ‘mix’, says that if Government opts       w www.wbs.ac.uk/news/releases/2006/04/           Fraser, WBS Senior Research Fellow, (2004
to take up the option of new nuclear build,      13/Nuclear/puts/renewable                        UK Survey into SME Finances).
it risks becoming locked into expensive
technology that will make it harder              WBS, working with University departments Computer Science and Mathematics, has been
overall to reduce carbon emissions. The          awarded £3.8 million in the second round of the Science and Innovation Awards announced
authors say that while nuclear power is a        by the Engineering and Physical Sciences Research Council (EPSRC). The award is to set up
low carbon technology which provides 8           the Centre for Discrete Mathematics and its Applications led by Professor Mike Paterson of
percent of energy demand, a commitment           Warwick with Professor Bo Chen as a member of the Executive Team leading the WBS input.


       hot off the press
                Essential Quantitative                            The Strategy Pathfinder                          Multi-Asset Class Investment
                Methods for Business                              by Dr Duncan Angwin,                            Strategy by alumnus Guy
                Management & Finance,                             MSM, Stephen Cummings,                          Fraser-Sampson (DLMBA
                3rd edition by Les                                Victoria University of                          85–9), published by Wiley,
                Oakshott, Practice Link                           Wellington, and Chris                           claims that if UK pension
                Manager/Senior Teaching                           Smith, University of                            funds had practised multi
                Fellow, ORIS. A concise,                          Adelaide (formerly at WBS),                     asset class investing during
                accessible, comprehensive                         published by Blackwell. Built                   the 1990s then the present
introduction to quantitative techniques          around 82 micro-cases of real-life problems                      funding deficit would not
emphasising business relevance and               faced by companies and executives, drawn         exist and the recent spate of closures of final
discussing the challenges of problem-            from a rich tapestry of business activities      salary pension schemes would not have
solving in the real world.                       across Africa, the Americas, Asia, Europe        been necessary.
w www.palgrave.com/resources/btu/                and Oceania. w www.blackwellpublishing.          w eu.wiley.com/WileyCDA/WileyTitle/
Business.asp#Quantitative                        com/book.asp?ref=1405126132&site=1               productCd-0470027991.html

                 Operations and Process                         Marketing Management                              Taxation – Policy and Practice,
                 Management – Principles and                    and Strategy was originally                       13th Edition 2006/2007 by
                 Practice for Strategic Impact                  developed by the late Peter                       Andy Lymer, University of
                 co-authored by Nigel Slack,                    Doyle, WBS Professor of                           Birmingham, and Lynne
                 Robert Johnston and Stuart                     Marketing. Now in its                             Oats, WBS Senior Lecturer
                 Chambers, WBS Operations                       4th edition, published by                         in Accounting. Published by
                 Management, with Alan                          Pearson Education, Philip                         Fiscal Publications. Written
                 Betts, published by Pearson                    Stern, Senior Lecturer in                         in an accessible style with
Education. Approaching the subject from          Marketing and Strategic Management, has          many examples, activities and questions
a truly managerial perspective, the book         updated this comprehensive but concise           throughout, this textbook gives a thorough
inspires a critical and applied mastery of the   and practical management guide to the            understanding of the UK’s taxation
core principles and processes fundamental        important ideas in advanced Marketing            principles and current practices.
to managing business operations.                 and Strategy.                                    w www.fiscalpublications.com

w www.pearsoned.co.uk/slack                      W www.pearsoned.co.uk/doyle
                                                                                                  10% off                  We are pleased to be
                                                                                                                           able to offer all WBS
                                                                                                  alumni and staff not only a 10% reduction on
                 The Changing Institutional                      International Business by
                 Face of British Employment                      Alan M Rugman, Professor         this book – but through a generous offer from
                 Relations, jointly edited by                    of International Business,       the publisher – a 10% reduction on ALL their
                 Professors Linda Dickens of                     Indiana University, and Dr       books for any orders placed before the end of
                 WBS and Alan Neal of the                        Simon Collinson, Senior          2006. If you are a current student of WBS the
                 Law School. Published by                        Lecturer in International        deal is even better – 25% discount off this title
                 Kluwer Law International,                       Business, WBS.                   as well as also qualifying for the 10% deal off
                 the volume marks the 30th                       Outsourcing. Emerging            the publisher’s other books. All orders must
                 anniversary of the Advisory     economies. Environmental impacts. Just           quote code:WBS2006.10 for the 10% alumni
Conciliation and Arbitration Service (Acas)      three of the many key issues currently           deal and WBS2006.25 for the 25% discount
and provides a contemporary picture              facing international businesses, all of which    for students. Then quote the publishers web
of the institutional landscape of British        are examined in the fourth edition of this       address and email:
employment relations.                            well respected textbook.
W www.aspenpublishers.com                        w www.pearsoned.co.uk/rugman                     e wbsoffer@fiscalpublications.com
6 nexus: summer 06                                                                                           WBS news

                                        generous gift                   the fifth annual
                                        Sir Nick Scheele, Chancellor    Warwick-Acas Lowry lecture
                                        of Warwick University has
                                        donated half a million          The annual Warwick-Acas Lowry lecture was held at WBS in March,
                                        pounds to Warwick               with Alan Johnson MP, Secretary of State for Trade and Industry,
                                        Business School and hopes       scheduled as the guest speaker. At the last minute the Minister had to
                                        it will encourage others to     remain in London and sent a video introducing his lecture entitled
                                        consider supporting the         ‘The World of Work’. The lecture, delivered by one of his officials,
                                        University. Sir Nick has had    set out the Government’s key priorities and argued that addressing
                                        a long association with the     these calls for a change in the role of employment legislation.
                                        University and was once a
                                        member of the WBS Board;        w users.wbs.warwick.ac.uk/group/irru/publications/warwick_papers
                                        he became the University
                                        of Warwick’s fourth
                                        Chancellor in March 2002.

                                          Sir Nick has said, ‘The
                                          competition between
UK and USA universities is a fact of life which can be seen most
significantly within our business schools. Although USA business
schools got a head start, Europe, and particularly the UK have
demonstrated that the provision of excellent business education
can be found on this side of the water too. However, there is
still one area where I perceive that the UK is at a considerable
disadvantage to our North American competitors. The funds
donated to universities by alumni and other beneficiaries in the
USA dwarf the sums donated here. Although European Alumni
now compete favourably with their North American counterparts
in the salary stakes, the culture of giving to your university simply
has not developed here as it has in the US.

Many of you will know that I have had a long involvement with
the motor industry, but it has not necessarily been cars that
have motivated me but practice of business and the science of
management itself which is why I have endowed Warwick Business
                                                                        The lecture provided an ideal opportunity to launch a book jointly
School with this gift.’
                                                                        edited by Professor Linda Dickens of WBS and Professor Alan Neal
                                                                        of the Law School (see hot off the press P5). Rita Donaghy, the
  WBS Scarman Road Phase 3 Stage 1 development                          Chair of Acas (centre) formally launched the book and Linda is
                                                                        pictured third from right.
  moves towards completion in September 2006

                                                                        first fellows
                                                                        The National School of Government has named Dean Howard
                                                                        Thomas, and Professors John Benington, Jean Hartley and Colin
                                                                        Crouch of WBS among the first Fellows to its Sunningdale Institute
                                                                        – a group including internationally rated academics and industry
                                                                        figures, and offering development to government and public
                                                                        service organisations on operational and delivery issues. WBS has
                                                                        the biggest involvement of the participating organisations.

                                                                        w www.nationalschool.gov.uk/programmes/index.asp


                                                                        new degree at WBS
                                                                        WBS is launching a new Masters degree, the MSc in Management,
                                                                        starting in October 2006. The degree has been designed to meet
                                                                        demand from top quality graduates in subjects unrelated to
STOP PRESS: The Times Good University Guide 2007 again                  business, who wish to follow a career in management but do not
rates WBS in the UK top three for both Business Studies and             have the work experience necessary for The Warwick MBA.
Accounting & Finance. The University as a whole maintained
8th place out of 109 UK universities.                                   w www.wbs.ac.uk/go/mm
WBS news                           nexus: summer 06                                                                                7


                                                multimedia at WBS                                winning team
                                                We now have the ability to record selected       At a lunch to celebrate the end of the
                                                events at WBS on high quality digital video,     spring term, a £1,000 prize was presented
                                                edit them and post them on the web site as       to the winning team of MBA students for
                                                a video file, convert them into audio files        outstanding group project work on the
                                                for podcasts and burn them on to DVD to          Practice of Management (PoM) module
                                                send to anyone who wants a high quality          for the academic year 2005–06. The prize
                                                copy. Over recent months we have recorded        was sponsored by the Fund for Academic
                                                press conferences, guest lectures including      Excellence, thanks to generous donations
                                                presentations from IBM and Mary Jo Bane          from alumni, friends and staff of WBS.
  Sailing to success                            from Harvard, posted a podcast by Dr
                                                Bridget Woodman on renewable energy and
                                                recorded the Winter Graduation assembly.
A WBS crew of MBA students reached
second place in the Global MBA Trophy,
                                                ‘It is predominantly a tool for news
organised by London Business School,
                                                gathering and assisting the external
losing only to SDA Bocconi’s crew. The
                                                promotion of the Business School,’ said
crews competed for three days, in six
                                                WBS Director of Communications, Vincent
fleet races in the port of Piraeus, Greece.
                                                Hammersley. ‘However, we are fortunate
Crew members: Bobo Baudin, Skipper
                                                to attract first class speakers and if we can
(Sweden), Odul Akin-Rousk (Turkey),
                                                capture these presentations and other
Panos Anastasiou (Greece), Gaudenzio
                                                selected events I see this as a major benefit
BonaldoGregori (Italy), Evangelos
                                                to both alumni and future students.’
Christodoulou (Greece), Filippo Riva
(Switzerland/Italy), James Smith (South                                                          The eight members of the team were:
Africa/UK).                                     winter graduation                                Michael Brockmann, Lee Fisher, Kartik
                                                                                                 Kumar, Lillian Mbindyo, Irina Motovilova,
The team now competes in the SDA                WBS hosted a buffet lunch for over               Richard Walker, Abdoul Wane and
Bocconi MBA’s Cup 2006 (Santa Margherita        100 WBS graduands, their families and            Emmanuel Sissimatos.
and Portofino, Italy, 21–24 September).          friends, attending the Winter Graduation
If anyone would like to be part of the          ceremony at the University of Warwick on         inner courtyard of the building. Howard
WBS crew, or can identify sponsorship           Wednesday 25 January.                            Thomas, the Dean of WBS, gave a speech
opportunities for the team, please contact                                                       congratulating the graduands on their
Panos Anastasiou.                               The Scarman Road lounge was extended             achievements and Head of Alumni
                                                by the installation of a specially               Relations, Nathalie Walker, welcomed
e panos.anastasiou05@mba.wbs.ac.uk              commissioned marquee within the                  them to the WBS Alumni Association.



   media round-up                               coverage in the Middle East. Still abroad, WBS   WBS alumni have been equally active.
                                                Dean Howard Thomas made news in the              Thomas Sparrvik (DLMBA 95–00) was the
   In the year of football’s World Cup, it      academic press of the USA when he was made       subject of an article in an international
   was particularly appropriate that Dr         Inaugural Fellow of the Strategic Management     edition of the Financial Times on how
   Sue Bridgewater kicked off WBS media         Society, joining an elite list that includes     his MBA has boosted his career, David
   coverage with a press conference at the      Harvard’s Michael Porter and business guru       McNulty (MPA 00–5) was profiled in
   Warwick in London office. She presented       Gary Hamel.                                      national media about his career success in
   the first stage of her research into trends                                                    the public sector, and Nicholas Yeo (MSc
   in professional football management.         Professor Colin Carnall, as Director of          Fin Maths 98–00) was quoted widely in
   Every seat in the room was taken, and        Executive Programmes at WBS, is regularly        Asian media and the Reuters newswire on
   the resulting media reports covered the      featured in training and development             the performance of stocks in the Asian
   full range from international satellite      publications with expert comment and             markets. It is good to see other alumni in
   television to local newspapers. To date,     articles on his latest book. Professor Andrew    the news due to successful career moves
   we have logged 50 different sorts of media   Sturdy’s research into the use of consultants,   and promotions (see alumni news P22/3).
   coverage on this topic alone.                particularly in the public sector, formed the
                                                basis of a programme for BBC Radio 4’s File on   There just isn’t room to list all the alumni
   Other faculty have been raising the          Four. Dr Catherine Mitchell and Dr Bridget       and faculty who have contributed to
   WBS profile too with media coverage.          Woodman are fighting a two-woman battle           the media for their particular areas of
   Professor Martin Cave, Head of the           on the side of renewable and sustainable         expertise or career success. Keep up to date
   Centre for Management under Regulation       energy sources, in an effort to counter the      with WBS in the news online – go to our
   research centre, is an international and     nuclear industry’s current push for favourable   recently upgraded web pages at:
   influential figure in the development          media coverage. Catherine has appeared on
   of telecommunications. He chaired the        BBC2’s Newsnight and written articles in The     w www.wbs.ac.uk/news
   ground-breaking Telecoms Regulatory          Guardian, while Bridget has been interviewed
   Authority 2006 Development Review            by local radio and contributed to BBC TV’s
   Panel in Bahrain, which achieved wide        Countryfile programme.
8 nexus: summer 06 focus on entrepreneurship




teaching entrepreneurship
Nigel Sykes, Principal Teaching Fellow, CSME, gives an insight into his approach to teaching entrepreneurship.




I walk around and notice people speaking
  in acronyms. An example is the classic
four Ps of marketing. Well, here are my 3 Ps:
                                                What we try to encourage in the
                                                Entrepreneurship teaching at WBS is that
                                                each student is a remarkable talent and a
                                                                                               to translate this into reality. What we
                                                                                               really do at WBS is to tease out latent
                                                                                               entrepreneurial talent. Some say ‘this
what have Pinter (Harold the playwright),       good entrepreneurial team recognises each      isn’t for me’ and that’s a good outcome.
Plato and Prostitution NOT got to do with       other’s talents and encourages different       Some, having studied the course say ‘I now
the way I teach Entrepreneurship?               leadership capabilities to take over the       know who I am and where I fit within an
                                                helm of the business as it and the landscape   entrepreneurial team’, which is brilliant.
Harold Pinter’s ‘The Caretaker’ is set in a     it traverses, changes.
one room flat and there are only two parts                                                      Then there are those who may have felt for
in the play. One, the owner of the flat, and     Some are good ‘envisioners’ and lead the       some time that they had a burning desire to
the other, a man staying with him, who has      creativity phase and principal forming         get something started, and they find they
no home and seemingly no real prospects         stage of the business venture. Others          can fly, ignoring those negative voices that
either. That is until, we learn, he can get     are good ‘enablers’ who lead the process       had held them back for so long... again,
to Sidcup to collect his papers (his MBA?)      and strategy forming stage and finally          a very worthwhile and significant outcome.
and then he believes everything will be         the ‘enactors’, the practical ‘doers’, even
okay. I sometimes feel that the MBA can be      specialists. Everyone in the team gets to      So I suppose Entrepreneurship is taught at
seen like that but Entrepreneurship is more     know and appreciate each other’s skills and    Warwick so these 3 Ps can be avoided. In
about developing the individual rather          talents and learns to recognise, encourage     summary, we’re more about recognising
than focusing on the qualification.              and release each other.                        and releasing entrepreneurial talent and
                                                                                               capability, developing an encouraging
                                                Finally Prostitution, the last of the 3Ps      rather than a critical culture, and helping
                                                we do not teach on the Entrepreneurship        people to fly out of the restrictions that
    Everyone in the team gets                   option, you will be pleased to know! What      can be imposed by more controlling and
                                                on earth do I mean?                            hierarchical structures out there.
to know and appreciate each
other’s skills and talents and                  To illustrate, I taught a session at a local
                                                school recently and the students thought,
learns to recognise, encourage                  ‘Here is a man from Warwick Business
and release each other                          School, and he is going to talk about
                                                                                                  the author in                       minute
                                                Entrepreneurship. We will go and hear
                                                about how to acquire funding and make                                          Nigel’s background
                                                money.’ In the first ten minutes there was                                      is in sales and retail
Now to Plato who gave us the notion of                                                                                         management,
                                                a stunned look on their faces as I avoided
                                                                                                                               marketing and outlet
a republic and Platonic dualism. Born           talking about money at all.                                                    development. He is
into a wealthy ruling family in Greece,                                                                                        the former Enterprise
I’m sure he was a bit put out when civil        So often the expectation is that the teacher                                   Agency Director
unrest saw his family fall from favour. He      of Entrepreneurship will just talk about                                       and manager of
                                                                                                                               pilot Community
went off and met a few Gnostics, mystics        where winning ideas come from and then                                         Programme project
and thinkers of that time (a bit like going     how to make your proposition attractive                                        linked to industry
to WBS I suppose) and came home with            to a banker or investor who will then put                                      with Birmingham
a cunning wheeze. If we can encourage           up the money. I would even go so far as            Chamber of Industry and Commerce. Nigel
people to fit into a system that is controlled   to say that in extreme cases people find            works in a ‘catalytic’ role in helping to release
                                                                                                   capability and talent through individual,
by the state (him) and has elected officials     themselves saying things like:                     organisational and
(supposedly but really his mates) we will                                                          inter-organisational opportunities.
create a republic or corporate structure
and there will be order and everyone will       What position would you like me in?                Research Interests: family business succession;
behave (be controlled in other words by                                                            social entrepreneurship; understanding
                                                What do you want me to do?
                                                                                                   success and evolution of firms particularly in
them) and I will be the person whose name       What do you want to hear from me?                  terms of marketing and team development;
and reputation will live on for ever as the                                                        international economic regeneration through
one who thought of this cunning idea and        ... so that I can get the money I need for         small business and entrepreneurship,
plan. Platonic Dualism and the Republic         my business. This is so like the oldest            particularly in Eastern Europe, Latin America,
                                                                                                   DPRK (North Korea) and Zimbabwe.
he created is a dangerous idea really, when     profession in the world isn’t it? And we can
you consider that Gallup have found that        end up being slaves to money.
over 80 percent of 1.2 million managers
interviewed by them were not employing          It is a challenge teaching Entrepreneurship
their talents and capabilities in their work,   beyond the theoretical constructs and
on a daily basis.
nexus: summer 06 focus on entrepreneurship                                                                  9




getting started
Robbie Vann-Adibé (MSc MSOR 84–5) is one of WBS’ most successful entrepreneurial alumni, with over 20
years of experience in technology, start-ups, consulting and financial services in the USA and Europe.


R   obbie was most recently the turn-
    around CEO of Ecast, a San Francisco
based digital jukebox company. He
                                                  whereas in later years I developed a very
                                                  different set of criteria for what to look for
                                                  in a workplace – which were:
                                                                                                   Thirdly, IPOs are becoming harder for start-
                                                                                                   ups to achieve given the cost of compliance
                                                                                                   and the capital markets receptivity.
developed Ecast from a start-up to an             • Do you like the people? If you like them,
operational enterprise, paving a clear path         you’ll be willing to take their input          The fourth trend is the emergence of a
to success in a proven multi-billion dollar       • Can you learn something from the people        new breed of acquirers who are prepared to
market, stimulating users’ appetite for             you’ll be working with? This probably          acquire companies just on the basis of their
delivery of the best internet-based content         means they are good at what they do and        people and technology and not as a self-
– anywhere, any time.                               will satisfy their customers                   sustaining business.
                                                  • Are people having fun? If they are, then it
Robbie came to campus in February 2006              probably means the working environment         So given this chasm between entrepreneurs
to share his wealth of experience with              will be productive; their customers            and established venture firms, Robbie
Undergraduate, Specialist Masters and               satisfied and the place is functional           strongly believes there is an opportunity
MBA students. See the box below for a                                                              for a new style of Venture Firm to work
few of his top insider tips on the road to        Technology start-ups – the basics                with entrepreneurs before they receive
entrepreneurship.                                 • If you can’t afford to take 12–18 months       established venture capital, or are acquired.
                                                    off with no salary – don’t do it!              He is in the process of creating such a firm.
A perspective I wish I had had at the             • Consulting is a great perch from which to
beginning of my career                              come up with new ideas – it’s essentially      Robbie’s final piece of advice is, ‘Don’t get
‘When I began my career, the criteria I used        people paying you to tell you their            so focused on the destination that you
to determine where to work and who to               problems and come up with solutions            forget to enjoy the journey.’
work for were very different – I looked at        • Try to engage a trusted resource with
things like salary, title, job description etc,     relevant expertise early to help vet your
                                                    idea(s)
                                                                                                      the author in                        minute
  A few big lessons                               Creating a team
                                                  • Technology is almost impossible to                                              Robbie is happily
  Work in a big organisation/corporation            develop alone                                                                   married to another
                                                                                                                                    Warwick alum,
  first – you will learn a huge amount and         • My experience suggests that you need
                                                                                                                                    Linda, who he met
  it will stand you in good stead for start-        at least two people to start a successful                                       during his time at
  up activity and securing VC funding               technology based venture – the technician                                       Warwick, and
  – or put another way, make your early             and the business person                                                         considers his two
                                                                                                                                    children his greatest
  mistakes on someone else’s payroll.             • You are better off with people you’ve
                                                                                                                                    start-up projects ever.
                                                    worked with and knowing what they are
  Don’t over-plan – go with the flow                 good/bad at                                       Robbie started his career as a developer on Wall
                                                  • Find your ‘mirror’ – having someone               Street, building trading and clearing systems at
  – you never know where your next                                                                    Morgan Stanley and Credit Suisse First Boston.
  opportunity may come from.                        around who spends all the time agreeing           He helped launch several start-up technology
                                                    with you is a waste of salary!                    companies including Seer Technologies, a CASE
  Learn to do something really well.              • ‘Test drive’ working together – work              tools firm. He did a stint in consulting as a Senior
                                                    together to refine your idea and see what          Associate at Booz Allen Hamilton in San Francisco,
                                                                                                      where he led strategic consulting initiatives. He
  Don’t burn bridges (aka shut the door             that feels like                                   held various senior positions at global software
  but always leave a window open) – in                                                                giant, Oracle, and was Vice President of Product
  many industries you’ll meet the same            Always scanning the horizons for                    Marketing at start-up Illustra, an object-relational
                                                  opportunities, Robbie has begun to focus            database company acquired by Informix. Robbie
  people at different junctures of your                                                               co-founded Viant in 1996, a web-consulting
  career and it’s best that they think well       on the venture capital industry that has            company, leading its global expansion. Viant
  of you.                                         operated in the USA for some 30+ years.             completed an initial public offering in June 1999
                                                  According to Robbie, ‘There are four                on NASDAQ.
  Cultivate your network – stay in touch          trends creating new opportunities in this
                                                                                                      An active angel investor, he was an early investor
  with colleagues – you never know when           area. The first we are seeing is an increase
                                                                                                      in companies such as Inspired Gaming, Volantis
  they might need you, or you them.               in the number of entrepreneurs who are              and Sidestep.
                                                  starting businesses early in their career,
  Stay healthy – success without your             bootstrapping their companies and are not           Robbie is establishing an early stage venture firm
                                                                                                      in California with several VC friends (remember
  personal health is the wrong result.            attracted to venture capital. The second is
                                                                                                      that advice about working with people who you
                                                  that venture capitalists are enjoying ‘large        will enjoy the journey with?) helping to advise and
  Don’t be intimidated by people smarter          fund dynamics’ which preclude them from             nurture start-ups in the San Francisco Bay area.
  than you – hire them.                           systematically making small, early stage
                                                  investments.
10 nexus: summer 06 focus on entrepreneurship




from Dragons’ Den to ER
Professor Harry Scarbrough reports on current Innovation, Knowledge & Organisational Networks (IKON)
research group projects.



I nnovation is generally held to be
  critical to long-run success in the
global marketplace, yet is something
                                                 challenges of exploiting breakthroughs
                                                 in scientific knowledge to improve
                                                 medical practice. At the moment, such
                                                                                                  The reasons for this have to do with the
                                                                                                  dense clustering of leading science and
                                                                                                  business research centres in specific
that many firms do badly or not at all.           breakthroughs often fail to reach hospitals,     regions of the USA (especially Boston)
This is not generally due to a lack of new       even though patients are in desperate need       and also the different career paths that
science and technology opportunities             of the new treatments they might bring.          people follow in the two countries. For
(though UK firms do still under-invest            This project draws on IKON members from          example, it is common to find a clinician
in R&D). It has a lot more to do with            the universities of Warwick (Jacky Swan,         working in a hospital in the USA who
the skills and organisational capabilities       Anna Goussevskaia, Ademola Obembe),              is also simultaneously working with a
needed to exploit and commercialise such         Coventry (Maxine Robertson), Leicester           biomedical company. This does lead to
opportunities. This challenge involves           (Mike Bresnen) and Bentley College, USA,         ethical dilemmas – see episodes of the
firms being able to simultaneously explore        (Sue Newell). Their study has looked at the      USA TV series ER for examples. But, in
and exploit knowledge – a big challenge          reasons for failure and delay in this process,   general, commercial arrangements between
because these tasks require very different       and whether experience from the USA has          clinicians and private companies are seen
types of management.                             anything to teach us in the UK.                  as more acceptable in the USA than the UK.

This is an area where the IKON research                                                           Overall then, the study has found that
group is carrying out leading-edge research.                                                      in the UK, there is a greater degree
IKON is based at Warwick but is networked                                                         of separation between professional
                                                     This ability to select
with other universities in the UK, USA and                                                        groups and between public and private
Brazil. It also works closely with KIN (the      (and reject) innovation                          organisations. This means that there is
Knowledge and Innovation Network), a             opportunities is critical to                     more of a need to establish ‘bridging’
consortium of leading international firms,                                                         mechanisms to connect the different
including Schlumberger, Conoco Phillips,
                                                 successful commercialisation.                    disciplines and/or different organisations
Masterfood, PwC and others.                      Understanding how decision-                      involved. By contrast, in the USA, these
                                                 makers inside and outside                        groups and organisations are already more
One of IKON’s current projects is                                                                 tightly ‘bonded’.
examining the exploration-exploitation           firms do this successfully, and
challenge through a collaborative study          maybe how it differs between                     KIN activities are described on its web site
with Boston University in the USA. I             the UK and the USA, should                       w www.ki-network.org
am directing this study, which involves
identifying the way in which groups such         be a significant contribution
as venture capitalists and corporate venture     to the debate on how the UK                         the author in                     minute
teams make investment decisions on new
technology opportunities. The challenge
                                                 can make better use of the
here – echoed by the BBC TV series               knowledge produced by its                                                   Harry Scarbrough is
Dragons’ Den – where entrepreneurs pitch         world-leading universities and                                              co-founder of the IKON
                                                                                                                             Research Centre and
their ideas to secure investment – can be
likened to the successful venture capitalist’s
                                                 research institutions                                                       the Knowledge and
                                                                                                                             Innovation Network
ability to identify two or three attractive                                                                                  (KIN). He is also
propositions from the hundreds of business                                                                                   currently Director of a
plans received every year. This ability to                                                                                   major ESRC research
                                                                                                                             programme on ‘The
select (and reject) innovation opportunities     Their work (still ongoing) shows that                                       evolution of business
is critical to successful commercialisation.     the exploitation of most scientific                                          knowledge’ which
Understanding how decision-makers inside         breakthroughs depends on scientists                  encompasses a number of projects examining
and outside firms do this successfully,           from various disciplines working together            the creation and exploitation of knowledge,
and maybe how it differs between the             with business experts and clinicians.                including his own study (jointly funded
                                                                                                      with the Cambridge-MIT Initiative) of ‘The
UK and the USA, should be a significant           For example, the development of tissue               dynamics of networked innovation’.
contribution to the debate on how the            engineered products (used in cartilage
UK can make better use of the knowledge          repair and wound treatments) needs                   Research Interests: management of knowledge
produced by its world-leading universities       medical scientists to collaborate with               and learning in organisations; role of
                                                                                                      social networks in innovation processes;
and research institutions.                       clinicians, materials scientists, biologists,
                                                                                                      commercialisation of innovation.
                                                 geneticists, venture capitalists and
Another IKON study (co-funded both by            lawyers. The team refers to this activity as
the ESRC’s EBK programme mentioned               ‘interactive innovation’ and reports that,
above and the EPSRC Warwick Innovative           in general, the USA is better equipped to
Manufacturing Centre) focuses on the             support this kind of innovation.
nexus: summer 06 focus on entrepreneurship                                                  11




in mint condition
Tim Morgan (BSc Accounting & Financial Analysis 94–7) is Commercial Director of Mint Digital, a leading
new media company that creates concepts for interactive television. Here Tim explains how he came to join
forces with fellow undergraduate Andy Bell (BSc Economics 94–7), who started the company in 2004.


‘A   ndy and I originally met at Warwick
     as undergraduates in 1994. We were
separated on graduation in 1997 as our
careers went on divergent paths. Andy
went into interactive television whilst I
joined Ernst & Young as a trainee chartered
accountant. After qualifying, I spent the
next five years in mergers and acquisitions.

‘In 2004 Andy started Mint Digital, an
innovative new media company making
interactive television. I had always hoped
that one day we would run a business
together, so when he told me about Mint
Digital, I offered to lend a hand. Multi
award winning interactive designer Noam
Sohachevsky joined in November 2004 and
I started to get involved at about the same
time.

‘I began by helping with financial and
commercial matters in my spare time since
I still had a day job working in acquisitions.
By the end of 2005, the company had
developed to a stage where I had to make a
decision; to continue my career in the City
or to go full time at Mint Digital. I loved         Left to right: Andy, Tim and Noam
the work I was doing for Mint so much that
when the opportunity came along to join
full-time, I took it without hesitation.’
                                                                                                  ‘The thing I am most grateful to WBS
Mint Digital has developed a reputation for
meaningful innovation, punchy content
                                                    If you start a                                for is the bread and butter financial
                                                                                                  and commercial education. As an
and effective design. The company has            business, I think it is                          undergraduate, it is easy to be seduced by
been responsible for several successful                                                           the strategic side of running a business,
web based concepts for television clients        imperative to work                               but it is the practical day-to-day issues that
including Channel 4, Discovery USA, and                                                           are most fundamental when it comes to
RDF Media.                                       with people you like                             getting started.

Since the start of 2006, Mint has attracted
                                                 and admire                                       ‘WBS is the perfect nursery for anyone
private equity funding and has won                                                                with entrepreneurial ambition. This is
many awards for its work. Most exciting                                                           because of the quality of the people at the
of all, at the annual MIPTV (international       Tim continues: ‘In Andy and Noam I               School, many of whom have a wealth of
television) festival in Cannes in April,         have partners who are not only extremely         entrepreneurial experience themselves.
Mint was crowned the winner of a BBC             talented but who I get on with like a house      Also there was a focus on corporate case
sponsored competition to develop the             on fire. I also think that you should only        studies that demonstrated the practical
cutting edge media concepts of tomorrow.         start a business if you passionately believe     application of the financial and strategic
                                                 in what you are doing since it requires a        theories that I had learnt.
This summer, Mint is launching                   lot of hard work and it is easier if you enjoy
‘Bloombox’, a web application that makes         yourself.                                        ‘Most of all, my experience at WBS was
it easy for media companies to acquire                                                            fun. I really look at back at my time at WBS
user generated content. ‘Bloombox’ is an         ‘Finally, the most fulfilling thing of all is     fondly and I met a lot of great people while
example of the type of product that puts         being able to be true to yourself and stick to   I was there.’
Mint at the centre of the convergence            your principles.
between old and new media.                                                                        w www.mintdigital.com
12 nexus: summer 06 focus on entrepreneurship




the habitual entrepreneur phenomenon
In a forthcoming book, Paul Westhead, WBS Professor of Enterprise, provides the first systematic study of
habitual entrepreneurs. Here he reveals the key findings and implications of his research.


Despite media hype, case study evidence         of sales or employment growth. Habitual         opportunities, support agents need to
suggests that not all habitual entrepreneurs    entrepreneurs who had previously ‘failed’       improve the provision of information.
who own more than one business, either          reported lower levels of living standards.
sequentially (serial entrepreneurs) or                                                          Habitual entrepreneurs also require
concurrently (portfolio entrepreneurs),         Human capital: Habitual entrepreneurs           assistance with converting imagination,
are consistently successful. My book is         were less likely to focus on their perceived    creativity and innovation into better
based on survey evidence involving a            technical capability. Superior firm              quality opportunities that are problem/
representative sample of 730 private firms       performance was associated with highly          market focused with greater wealth creating
in Great Britain. A human capital approach      educated entrepreneurs and those leveraging     potential.
was used to explore the general and specific     managerial and entrepreneurial capabilities.
profiles of habitual entrepreneurs with          Weaker firm performance was linked               Novice entrepreneurs need to be made
prior business ownership experience             with entrepreneurs citing only technical        aware that simply being in possession of
and novice entrepreneurs with no prior          capabilities.                                   technical knowledge, and a related idea,
business ownership experience to leverage.                                                      does not guarantee a successful business.
The contribution of business ownership          Key implications                                Novice entrepreneurs should be encouraged
experience vis-à-vis other dimensions           Business ownership experience: The assets       to use sources of information utilised by
of human capital was explored within a          and liabilities of business ownership           habitual entrepreneurs.
multivariate regression framework.              experience need to be considered. Habitual
                                                entrepreneurs possess both the inclination      Failure: The view that ‘failure is the fuel
Key findings                                     and ability to identify opportunities but       of success’ was not validated by this
Scale: Habitual entrepreneurs owned 52% of      some lack the skills and capabilities to        study. Initiatives supporting ‘failing’
surveyed firms. In total, 162 firms involved      exploit them fully.                             entrepreneurs to return to entrepreneurship
serial entrepreneurs whilst a further 216                                                       may be promoting a culture of failure.
firms involved portfolio entrepreneurs.          Venture performance: Studies that focus         Assistance may be required to foster
                                                solely on firm performance (ie sales and         intelligent failure, which seeks to change
Background: Habitual entrepreneurs were         employment growth and profitability)             an entrepreneur’s mindset and behaviour
more likely to be men and generally             may fail to provide an understanding of         to overcome personal biases (ie hubris and
reported business ownership family              the entrepreneurial human capital drivers       denial).
backgrounds. They cited a high level of         linked to the opportunity identification that
similarity between current and previous         creates future wealth. Habitual entrepreneurs   The habitual entrepreneur phenomenon
businesses.                                     who identify more than one opportunity          (Edward Elgar Publishing, Cheltenham),
                                                have better choices and have the resources      is due out at the end of November.
Opportunities: Habitual entrepreneurs           to pursue more opportunities. Portfolio
identified more opportunities over a             entrepreneurs accumulate larger personal
five-year period and pursued a higher            wealth. Compared to other entrepreneurs,           the author in                    minute
proportion than novice entrepreneurs. More      portfolio entrepreneurs take smaller amounts
opportunities were identified by highly          of money out of each business, but have
                                                                                                                         Paul Westhead,
educated entrepreneurs who had engaged in       more businesses to draw upon.
                                                                                                                         WBS Professor of
intensive information search as well as those                                                                            Enterprise, Centre for
who had leveraged their managerial and          Resources: The resources needed to identify                              Small and Medium
entrepreneurial capabilities.                   opportunities may not necessarily be the                                 Sized Enterprises.
                                                same as those required to manage successful                              Visiting Professor of
                                                                                                                         Entrepreneurship (Bodo
Information: Habitual entrepreneurs             individual ventures. Habitual entrepreneurs                              Graduate School of
searched for information less intensively       need to accumulate and leverage managerial                               Business, Norway, 2001–
but used additional knowledge from              and entrepreneurial capabilities.                                        present; former Professor
employees, consultants, financiers and                                                                                    of Entrepreneurship at
government sources more frequently.             Customised external support: In addition           Nottingham and Stirling Universities Business
                                                                                                   Schools and Senior Research Fellow at Warwick,
Entrepreneurs citing high entrepreneurial       to specific advice on new firm creation,             1992–7. Research posts at Imperial College and
capability searched for information             practitioners, consultants and government          Cranfield School of Management. Consultancy
more intensively, used additional sources       agents should provide customised support           experience for EIM Business & Policy Research,
and identified more opportunities.               (ie information, training, advice, etc)            2005. Links with OECD, Paris; Higher Education
Paradoxically, those entrepreneurs              targeted at the specific needs of habitual          Funding Council for England and Wales; and
                                                                                                   Scottish Enterprise.
reporting higher information search             entrepreneurs. Business failure rates may be
pursued fewer opportunities. Information        reduced considerably if additional support         Research interests: habitual entrepreneurs,
overload may, therefore, be a problem.          is made available to facilitate business           internationalisation of SMEs, training
Performance: Businesses owned by habitual       idea evaluation and feasibility analysis.          programme take-up and benefits, technology-
entrepreneurs did not report superior levels    To enable more entrepreneurs to identify           based firms and Science Parks.
nexus: summer 06 focus on entrepreneurship                                                       13




smart choice
Dr Frank Craig (DLMBA 99–02) CEO, Smart Holograms, shares his first-hand experience of entrepreneurship
in the Life Sciences sector.



I  have a PhD in Microbiology and over 10
   years executive management experience
in the Life Sciences industry. I am basically
                                                                                              frameworks at WBS which I later used for
                                                                                              market analysis and development of a
                                                                                              professional Human Resources function
a serial entrepreneur and have started three                                                  at Smart Holograms. A blend of creative,
biotechnology firms from the ground up.                                                        entrepreneurialism tempered with
In each case I was the first employee and a                                                    management discipline is optimal for
Founder. Aurora Biosciences Corporation                                                       effective company growth.
was the first, based in San Diego. This
became worth £1.6 billion five years                                                           Studying the MBA by distance learning
after founding. The second was my own                                                         was great fun. It was interesting to meet
management consultancy business called                                                        people from different industries and see
Venture Consultancy Limited (in 2002)                                                         the linking thread of management. The
which was based in the UK but established                                                     teachers were very professional and the
international clientele in Europe and North                                                   ones I remember who made a lasting
America. The third is Smart Holograms                                                         impression were usually the humorous
Limited based in Cambridge, UK, which                                                         ones. I will claim ‘diplomatic immunity’
is also a Life Sciences firm. This company                                                     and refrain from naming them!
is only a few years old and is now worth
around £150 million.                                                                          WBS has a world-class reputation
                                                                                              and regularly produces high quality,
Smart was co-founded in 2002 as a spin-                                                       peer-reviewed articles and books on
out company from Cambridge University                                                         entrepreneurship. I also see that it started
to exploit an exciting new technology                                                         a venture fund called Warwick Ventures
that enables the development of a new                                                         in 2000 to help form spin-out companies
generation of sensors for use in medical                                                      from Warwick’s intellectual property and
devices and the diagnostics sector. The                                                       technology base. My perception is that it
technology comprises novel interactive                                                        is being proactive in this area – which is a
holograms ‘sensor holograms’ that can                                                         good thing.
be engineered to change wavelength,
image, brightness or position in response                                                     My personal goals are to continue building
to a wide range of biological, chemical                                                       my career as an international CEO and to
and physical stimuli. We are primarily                                                        develop my business Smart Holograms to
focusing on developing innovative glucose                                                     its full commercial potential.
sensors for diabetics and other tests for
infectious diseases. Undoubtedly, since this                                                  I was also delighted to be invited onto the
a platform technology, it has applications                                                    Advisory Board of Warwick Business School
in many other markets such as Life Sciences                                                   recently to add some ‘entrepreneurial
tools and security and packaging.                                                             spirit’. I aim to enjoy life, encourage my
                                                                                              children and continue seeing the world via
                                                growing its annual revenues by over 600       travel (this time perhaps I can travel the
                                                percent and is quadrupling its UK facility    other way round!)
    The biggest challenge                       size. We are also now aiming to open a
                                                Boston-based facility later this year. The    w www.smartholograms.com
for some entrepreneurs is                       firm has raised over £18 million to date and
balancing entrepreneurial                       has five Blue Chip partnerships plus a major
energy with management                          Government contract. Last year I travelled       the author in                   minute
                                                around the world performing international
discipline                                      business development, which was fun.
                                                                                                  Frank has a PhD in Microbiology from the
                                                                                                  University of Glasgow and an MBA from WBS.
                                                The biggest challenge for some                    He has ten years of international, executive
                                                entrepreneurs is balancing entrepreneurial        management experience in the Life Sciences
I joined Smart Holograms as its first            energy with management discipline.                sector. He is a serial entrepreneur who has
employee and CEO in August 2003. The            Some start-up firms struggle because they          founded three firms. He is currently CEO
company currently has 25 employees,                                                               of Smart Holograms Limited – a medical
                                                fail to grow from a few person start-up           diagnostics firm based in Cambridge (UK).
a custom-built laboratory and offices            to a managed firm with proper systems              Frank is also a member of the Advisory Board
in Cambridge, UK, and an office in San           and procedures that ensure effective              of Warwick Business School.
Ramon, California. Smart is currently           management. I learnt some very useful
14 nexus: summer 06 focus on entrepreneurship




entrepreneurship and development finance
Andrew Trigg (MBA 82–3), a partner in Thompsons, Chartered Accountants, discusses aspects of entrepreneurship
and development finance in the context of providing corporate finance advice to business proprietors.

                                                spread of commercial and financial skills,      has the best possible chance of providing
                                                incentivised with share options. Annual        them with their risk rate of return, typically
                                                net profits have increased steadily.            with an exit within three to five years. Exit
                                                Contrast this to Engineering, which used       timescales can inevitably be influenced by
                                                to generate around twice the net profit of      the exit timing requirement of the funder
                                                Electrical, with two shareholders/directors    of the development capitalist, often a
                                                and one very capable second tier manager.      pension fund.
                                                The manager had no employment contract
                                                or share options before he left for pastures   A common requirement for a successful
                                                new about 18 months ago. Over the last         funding approach is a management team
                                                financial year Engineering has achieved         with a strong track record across a good
                                                little more than break-even.                   balance of skills.

                                                I have been invited to advise both sets        One funding example which strikes close
                                                of shareholders on their exit strategy to      to home is T Total an early stage and
                                                achieve a full price on a trade sale. My       exciting retail business where I am serving
                                                view is that at best Engineering could face    as non-exec Finance Director. Fellow
                                                around two years of ‘grooming’ before the      directors include Nick Green, formerly
                                                shares should be offered for sale.             Tesco director of Clubcard, Andrew Villars
                                                                                               who was Spirit Group Director of Drink and
                                                I am also currently advising on the            Penny Mallory, with a specialism in sales
                                                acquisition of a £40 million p.a. turnover     promotion and marketing in addition to
                                                multi-site Retailer. This is one of several    being a TV presenter and a National Rally
                                                target companies identified by me for a         Champion.
                                                management buy-in team headed by Keith
                                                Webster (MBA 03–4). The owner of Retailer      The first stage Business Angel funding
I hold first meetings with in excess of 50       is a very talented entrepreneur and he         round was challenging to say the least.
SME proprietors every year across a range of    believes his dozen or so senior managers are   Having established and traded our first
industrial sector and scale of activity. Many   better at their jobs than he would be. One     store for some months and recently
of these businesses are ‘proprietorial’; as     of the benefits of this level of organisation   contracted a major wholesale deal to supply
long as they sustain a reasonable earnings      is that it makes the task of raising           a 450 outlet, non-competing, retailer we are
stream to provide their owners with a           acquisition finance relatively structured       now bracing ourselves to face the funding
comfortable living there is little perceived    and predictable.                               market again as a prelude to a major store
change from year to year.                                                                      roll-out; starting in Oxford.
                                                These examples underline the need for
A minority of the businesses I get to           adaptability and management support as
see enjoy significant annual growth to           two of the key elements for companies with
sales, net profit and net tangible assets        entrepreneurial ambitions.
                                                                                                  the author in                      minute
providing a full risk rate of return to
their shareholders. I describe these as         Some texts include the raising                     Andrew is a Chartered Accountant with
‘entrepreneurial’; one of the acid test         of risk finance as one element of                   specialist experience in advising on a variety
                                                                                                   of corporate finance cases. He is a member
qualities being would a development             entrepreneurship. For the ambitious
                                                                                                   of the ICAEW Finance and Management
capitalist buy into this business?              company shareholder/director I believe             Faculty, as well as the Corporate Finance
                                                that the raising of such finance should be          Faculty. He served as a director of a City based
Many owners of smaller businesses would         viewed as part of a process rather than an         Development Capital/Corporate Finance
like to achieve a risk return for their hard    event.                                             company for five years.
work; they identify elements of commercial                                                         His earlier experience involved some years in a
detail for improvement but appear to be         As the development capitalist trawls               senior commercial financial management role
overlooking some of the fundamentals.           through all of the usual commercial and            with a FTSE 100 retailer and also included six
                                                financial headings to be found in business          years in the City office of KPMG.
Take a couple of examples: An Electrical        plan checklists they are assessing what
                                                                                                   Andrew is a partner in Thompsons,
Contractor and a Civil Contractor both          impacts on the forecasts and consequently          a growing practice in the centre of Bedford
with annual sales around £5 million; but        their exit return each commercial                  with five partners.
there the similarity ends.                      statement will have.
                                                                                                   E andrew@thompsons.ltd.uk
                                                                                                   w www.thompsons.ltd.uk
Electrical has an enthusiastic and capable      A development capitalist’s primary
second tier management team with a              objective is to assess whether a business
nexus: summer 06 focus on entrepreneurship                                                        15




social entrepreneurship
In this article Dr Paul Tracey, Lecturer in the Centre for Small & Medium-Sized Enterprises (CSME), gives examples of
businesses formed and managed with social as well as commercial objectives and explains the challenges they face.



T   ony Blair, George Bush and Bill
    Clinton have all reported the role and
importance of social entrepreneurship.
                                                organisations. Donors ‘benefit from a one
                                                stop, hassle-free service enabling them
                                                to fulfil their environmental and social
                                                                                               entrepreneurs (opportunity recognition,
                                                                                               the marshalling of resources, and the
                                                                                               creation of the new venture) – with the
Universities are increasingly offering          responsibilities’, and Greenworks sells        added complexity of defining, building
courses and conducting research on the          the furniture on to schools, charities,        support for, and achieving social outcomes.
topic. Social enterprise clubs have appeared    community groups and start-up businesses
across dozens of university campuses, and       at discounted prices.                          I am presently working with Owen
social entrepreneurship business plan           w www.green-works.co.uk                        Jarvis – a social entrepreneur and
competitions are now commonplace,                                                              formerly Director of Social Franchising at
in both USA and UK business schools.            But social entrepreneurs can also lead         Community Action Network – on a project
Moreover, the 2005 Net Impact conference        businesses which have a more ‘for-profit’       designed to identify the characteristics of
hosted by Stanford University – an event        emphasis. For example, Cafédirect is a         successful social enterprises, and the skills
for graduate students in business and           limited company selling ‘fair trade’ tea       and competencies exhibited by successful
management studies interested in social         and coffee to provide above market prices      social entrepreneurs. By combining our
entrepreneurship and corporate social           and good employment conditions for             experience and knowledge, we aim to make
responsibility – attracted a record 1600        disadvantaged tea and coffee farmers           a substantive contribution to a new and
participants.                                   in developing countries. In addition           exciting movement.

But what, you might ask, does the term
social entrepreneurship actually mean?
And what kinds of people are involved in
running social enterprises? Put simply,               at the core of social entrepreneurship is the notion
social entrepreneurs create businesses            of trading for a social purpose, and it requires that social
which have both social and commercial
objectives, but where surpluses are               entrepreneurs identify and exploit market opportunities
primarily reinvested in the enterprise or a       in order to develop products and/or services which allow
social objective rather than distributed to
owners. In other words, at the core of social
                                                  them to generate ‘entrepreneurial profit’ for a given
entrepreneurship is the notion of trading for     social project
a social purpose, and it requires that social
entrepreneurs identify and exploit market
opportunities in order to develop products
and/or services which allow them to
generate ‘entrepreneurial profit’ for a given    to dividends to shareholders, around 8
social project.                                 percent of annual profits are invested in the      the author in                    minute
                                                training and support of farmers in Africa,
Some brief examples will help to illustrate     Asia, the Caribbean, and Central and South
the kinds of organisations that social          America. w www.cafedirect.co.uk
entrepreneurs build and manage. Greyston
Bakery, based in New York, is one of the        And yet while these and many more social
world’s best known social enterprises.          enterprises have been very successful,
It provides employment for people who           plenty of others have struggled to
have been marginalised from mainstream          balance meaningful social outcomes with
labour markets, many of whom have               commercial viability. Indeed, a study
been unemployed for long periods.               by William Foster and Jeffrey Bradach
The profits from the bakery are used to          published in the Harvard Business Review
subsidise a range of community-focused          last year found that only a quarter of USA-
                                                                                                   Paul Tracey was previously Lecturer in
services including housing, childcare and       based social enterprises were in profit,
                                                                                                   Social Enterprise at Judge Business School,
healthcare in the Yonkers district of New       concluding that ‘despite the hype… few of          Cambridge University. Has also held posts at
York. w www.greystonbakery.com                  the ventures actually make money’.                 the School of Geography at Oxford University
                                                                                                   and the Centre for Entrepreneurship at
Another social enterprise that has been         Certainly, it appears that social                  Newcastle University.
very successful in both commercial and          entrepreneurship is a particularly                 Research Interests: entrepreneurship;
social terms is Greenworks, which earns         demanding form of entrepreneurship                 regional innovation; social and community
income by recycling unwanted furniture          – social entrepreneurs encounter the               entrepreneurship; corporate social
from corporations and public sector             same challenges as more traditional                responsibility.
Nexus Summer 2006
Nexus Summer 2006
Nexus Summer 2006
Nexus Summer 2006
Nexus Summer 2006
Nexus Summer 2006
Nexus Summer 2006
Nexus Summer 2006
Nexus Summer 2006

More Related Content

Viewers also liked

WBS Entrepreneurship Mentoring Workshop -28 July 2011 - Simon Corbett
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - Simon CorbettWBS Entrepreneurship Mentoring Workshop -28 July 2011 - Simon Corbett
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - Simon Corbett
Warwick Business School
 

Viewers also liked (20)

WBS Mentoring Programme 11 Feb 2011 - Peter Summerfield presentation
WBS Mentoring Programme 11 Feb 2011 - Peter Summerfield presentationWBS Mentoring Programme 11 Feb 2011 - Peter Summerfield presentation
WBS Mentoring Programme 11 Feb 2011 - Peter Summerfield presentation
 
Open Day presentation 7th May 2011
Open Day presentation 7th May 2011Open Day presentation 7th May 2011
Open Day presentation 7th May 2011
 
Mentee protocol - 2 year agreement
Mentee protocol - 2 year agreementMentee protocol - 2 year agreement
Mentee protocol - 2 year agreement
 
Nexus Summer 2009
Nexus Summer 2009Nexus Summer 2009
Nexus Summer 2009
 
Nexus Spring 2010
Nexus Spring 2010Nexus Spring 2010
Nexus Spring 2010
 
WBS Mentoring Programme- 11 Feb 2011 - Relativity of choice - Professor Nick ...
WBS Mentoring Programme- 11 Feb 2011 - Relativity of choice - Professor Nick ...WBS Mentoring Programme- 11 Feb 2011 - Relativity of choice - Professor Nick ...
WBS Mentoring Programme- 11 Feb 2011 - Relativity of choice - Professor Nick ...
 
Open day presentation v8
Open day presentation v8Open day presentation v8
Open day presentation v8
 
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - Steve Janes
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - Steve JanesWBS Entrepreneurship Mentoring Workshop -28 July 2011 - Steve Janes
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - Steve Janes
 
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - Tim Powell
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - Tim PowellWBS Entrepreneurship Mentoring Workshop -28 July 2011 - Tim Powell
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - Tim Powell
 
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - John Griffiths
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - John GriffithsWBS Entrepreneurship Mentoring Workshop -28 July 2011 - John Griffiths
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - John Griffiths
 
WBS Entrepreneurship Pilot Launch - 17 May 2011 -Steve Martin-pm
WBS Entrepreneurship Pilot Launch - 17 May 2011 -Steve Martin-pmWBS Entrepreneurship Pilot Launch - 17 May 2011 -Steve Martin-pm
WBS Entrepreneurship Pilot Launch - 17 May 2011 -Steve Martin-pm
 
Open Day presentation 7th May 2011
Open Day presentation 7th May 2011Open Day presentation 7th May 2011
Open Day presentation 7th May 2011
 
Nexus Summer 2008
Nexus Summer 2008Nexus Summer 2008
Nexus Summer 2008
 
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - Simon Corbett
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - Simon CorbettWBS Entrepreneurship Mentoring Workshop -28 July 2011 - Simon Corbett
WBS Entrepreneurship Mentoring Workshop -28 July 2011 - Simon Corbett
 
WBS Undergraduate Open Day - 27th April 2011
WBS Undergraduate Open Day - 27th April 2011WBS Undergraduate Open Day - 27th April 2011
WBS Undergraduate Open Day - 27th April 2011
 
Undergraduate Open Day, September 2010
Undergraduate Open Day, September 2010Undergraduate Open Day, September 2010
Undergraduate Open Day, September 2010
 
Global Supply Chain Management -Professor Stephen Brammer - 5 November 2011
Global Supply Chain Management -Professor Stephen Brammer - 5 November 2011Global Supply Chain Management -Professor Stephen Brammer - 5 November 2011
Global Supply Chain Management -Professor Stephen Brammer - 5 November 2011
 
Summer2009
Summer2009Summer2009
Summer2009
 
Entrepreneurship Pilot Launch - Rob England
Entrepreneurship Pilot Launch - Rob EnglandEntrepreneurship Pilot Launch - Rob England
Entrepreneurship Pilot Launch - Rob England
 
Undergraduate Open Day - 24th September 2011
Undergraduate Open Day - 24th September 2011Undergraduate Open Day - 24th September 2011
Undergraduate Open Day - 24th September 2011
 

Similar to Nexus Summer 2006

Adult Enterprise; New Approach, New Framework
Adult Enterprise; New Approach, New FrameworkAdult Enterprise; New Approach, New Framework
Adult Enterprise; New Approach, New Framework
Association of Colleges
 
Lep awards winners2010
Lep awards winners2010Lep awards winners2010
Lep awards winners2010
stoliros
 
Svc2 uk booklet 2012
Svc2 uk booklet 2012Svc2 uk booklet 2012
Svc2 uk booklet 2012
Cedric Deur
 
Svc2 uk booklet 2012
Svc2 uk booklet 2012Svc2 uk booklet 2012
Svc2 uk booklet 2012
Cédric Deur
 
MMM_Case Study Brochure_Jan 2017
MMM_Case Study Brochure_Jan 2017MMM_Case Study Brochure_Jan 2017
MMM_Case Study Brochure_Jan 2017
Anna Selwood
 

Similar to Nexus Summer 2006 (20)

Nexus Spring 2010
Nexus Spring 2010Nexus Spring 2010
Nexus Spring 2010
 
Nexus Spring 2008
Nexus Spring 2008Nexus Spring 2008
Nexus Spring 2008
 
Nexus Summer 2005
Nexus Summer 2005Nexus Summer 2005
Nexus Summer 2005
 
Nexus Spring 2009
Nexus Spring 2009Nexus Spring 2009
Nexus Spring 2009
 
Nexus Summer 2008
Nexus Summer 2008Nexus Summer 2008
Nexus Summer 2008
 
Adult Enterprise; New Approach, New Framework
Adult Enterprise; New Approach, New FrameworkAdult Enterprise; New Approach, New Framework
Adult Enterprise; New Approach, New Framework
 
Lep awards winners2010
Lep awards winners2010Lep awards winners2010
Lep awards winners2010
 
He futures-report
He futures-reportHe futures-report
He futures-report
 
Career academy review 2011 2012
Career academy review 2011 2012Career academy review 2011 2012
Career academy review 2011 2012
 
AoC London Region Bulletin Issue 115
AoC London Region Bulletin Issue 115AoC London Region Bulletin Issue 115
AoC London Region Bulletin Issue 115
 
UCISA Annual Review May 2021 - May 2022
UCISA Annual Review May 2021 - May 2022UCISA Annual Review May 2021 - May 2022
UCISA Annual Review May 2021 - May 2022
 
Growing a whole institution culture of commitment to student engagement
Growing a whole institution culture of commitment to student engagementGrowing a whole institution culture of commitment to student engagement
Growing a whole institution culture of commitment to student engagement
 
Management Articles of the Year - June 2012
Management Articles of the Year - June 2012Management Articles of the Year - June 2012
Management Articles of the Year - June 2012
 
Svc2 uk booklet 2012
Svc2 uk booklet 2012Svc2 uk booklet 2012
Svc2 uk booklet 2012
 
Svc2 uk booklet 2012
Svc2 uk booklet 2012Svc2 uk booklet 2012
Svc2 uk booklet 2012
 
MMM_Case Study Brochure_Jan 2017
MMM_Case Study Brochure_Jan 2017MMM_Case Study Brochure_Jan 2017
MMM_Case Study Brochure_Jan 2017
 
Nexus Spring 2007
Nexus Spring 2007Nexus Spring 2007
Nexus Spring 2007
 
Nexus Spring 2007
Nexus Spring 2007Nexus Spring 2007
Nexus Spring 2007
 
LSE Enterprise Annual Report 2012/13
LSE Enterprise Annual Report 2012/13LSE Enterprise Annual Report 2012/13
LSE Enterprise Annual Report 2012/13
 
Case study final
Case study   finalCase study   final
Case study final
 

More from Warwick Business School

Presentation 1 launch day 2011 mentor intro - steve martin - wbs format
Presentation 1   launch day 2011 mentor intro - steve martin - wbs formatPresentation 1   launch day 2011 mentor intro - steve martin - wbs format
Presentation 1 launch day 2011 mentor intro - steve martin - wbs format
Warwick Business School
 

More from Warwick Business School (11)

2012.09.11-Peter O'Neill- Six Ways to Sabotage Effective Project Management
2012.09.11-Peter O'Neill- Six Ways to Sabotage Effective Project Management 2012.09.11-Peter O'Neill- Six Ways to Sabotage Effective Project Management
2012.09.11-Peter O'Neill- Six Ways to Sabotage Effective Project Management
 
Women of Warwick- Breaking glass ceiling - Louise Redmond and Don Barratt-201...
Women of Warwick- Breaking glass ceiling - Louise Redmond and Don Barratt-201...Women of Warwick- Breaking glass ceiling - Louise Redmond and Don Barratt-201...
Women of Warwick- Breaking glass ceiling - Louise Redmond and Don Barratt-201...
 
Avoiding ITstrategies and investment disasters
Avoiding ITstrategies and investment disastersAvoiding ITstrategies and investment disasters
Avoiding ITstrategies and investment disasters
 
Simon Chapman - WBS Entrepreneurship Mentoring Programme - Final Workshop
Simon Chapman - WBS Entrepreneurship Mentoring Programme - Final WorkshopSimon Chapman - WBS Entrepreneurship Mentoring Programme - Final Workshop
Simon Chapman - WBS Entrepreneurship Mentoring Programme - Final Workshop
 
Andrew Bailey - WBS Entrepreneurship Mentoring Programme - Final Workshop
Andrew Bailey -  WBS Entrepreneurship Mentoring Programme - Final WorkshopAndrew Bailey -  WBS Entrepreneurship Mentoring Programme - Final Workshop
Andrew Bailey - WBS Entrepreneurship Mentoring Programme - Final Workshop
 
Robert Craven Sales and Marketing presentation - 5 December
Robert Craven Sales and Marketing presentation - 5 DecemberRobert Craven Sales and Marketing presentation - 5 December
Robert Craven Sales and Marketing presentation - 5 December
 
WBS -Private Equity talk - Bharat Shah - 14 November 2011
WBS -Private Equity talk - Bharat Shah - 14 November 2011WBS -Private Equity talk - Bharat Shah - 14 November 2011
WBS -Private Equity talk - Bharat Shah - 14 November 2011
 
Nexus - Summer 2011
Nexus - Summer 2011Nexus - Summer 2011
Nexus - Summer 2011
 
Presentation 1 launch day 2011 mentor intro - steve martin - wbs format
Presentation 1   launch day 2011 mentor intro - steve martin - wbs formatPresentation 1   launch day 2011 mentor intro - steve martin - wbs format
Presentation 1 launch day 2011 mentor intro - steve martin - wbs format
 
Uk immigration changes, April 2011
Uk immigration changes, April 2011Uk immigration changes, April 2011
Uk immigration changes, April 2011
 
Career Development Presentation - 11 Feb 2011 - Mentoring best practice
Career Development  Presentation - 11 Feb 2011 - Mentoring best practice Career Development  Presentation - 11 Feb 2011 - Mentoring best practice
Career Development Presentation - 11 Feb 2011 - Mentoring best practice
 

Recently uploaded

Industrial Training Report- AKTU Industrial Training Report
Industrial Training Report- AKTU Industrial Training ReportIndustrial Training Report- AKTU Industrial Training Report
Industrial Training Report- AKTU Industrial Training Report
Avinash Rai
 
IATP How-to Foreign Travel May 2024.pdff
IATP How-to Foreign Travel May 2024.pdffIATP How-to Foreign Travel May 2024.pdff
IATP How-to Foreign Travel May 2024.pdff
17thcssbs2
 

Recently uploaded (20)

The impact of social media on mental health and well-being has been a topic o...
The impact of social media on mental health and well-being has been a topic o...The impact of social media on mental health and well-being has been a topic o...
The impact of social media on mental health and well-being has been a topic o...
 
Sectors of the Indian Economy - Class 10 Study Notes pdf
Sectors of the Indian Economy - Class 10 Study Notes pdfSectors of the Indian Economy - Class 10 Study Notes pdf
Sectors of the Indian Economy - Class 10 Study Notes pdf
 
How to Manage Notification Preferences in the Odoo 17
How to Manage Notification Preferences in the Odoo 17How to Manage Notification Preferences in the Odoo 17
How to Manage Notification Preferences in the Odoo 17
 
Matatag-Curriculum and the 21st Century Skills Presentation.pptx
Matatag-Curriculum and the 21st Century Skills Presentation.pptxMatatag-Curriculum and the 21st Century Skills Presentation.pptx
Matatag-Curriculum and the 21st Century Skills Presentation.pptx
 
The Last Leaf, a short story by O. Henry
The Last Leaf, a short story by O. HenryThe Last Leaf, a short story by O. Henry
The Last Leaf, a short story by O. Henry
 
Jose-Rizal-and-Philippine-Nationalism-National-Symbol-2.pptx
Jose-Rizal-and-Philippine-Nationalism-National-Symbol-2.pptxJose-Rizal-and-Philippine-Nationalism-National-Symbol-2.pptx
Jose-Rizal-and-Philippine-Nationalism-National-Symbol-2.pptx
 
GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...
GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...
GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...
 
Morse OER Some Benefits and Challenges.pptx
Morse OER Some Benefits and Challenges.pptxMorse OER Some Benefits and Challenges.pptx
Morse OER Some Benefits and Challenges.pptx
 
Incoming and Outgoing Shipments in 2 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 2 STEPS Using Odoo 17Incoming and Outgoing Shipments in 2 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 2 STEPS Using Odoo 17
 
Salient features of Environment protection Act 1986.pptx
Salient features of Environment protection Act 1986.pptxSalient features of Environment protection Act 1986.pptx
Salient features of Environment protection Act 1986.pptx
 
Industrial Training Report- AKTU Industrial Training Report
Industrial Training Report- AKTU Industrial Training ReportIndustrial Training Report- AKTU Industrial Training Report
Industrial Training Report- AKTU Industrial Training Report
 
IATP How-to Foreign Travel May 2024.pdff
IATP How-to Foreign Travel May 2024.pdffIATP How-to Foreign Travel May 2024.pdff
IATP How-to Foreign Travel May 2024.pdff
 
Application of Matrices in real life. Presentation on application of matrices
Application of Matrices in real life. Presentation on application of matricesApplication of Matrices in real life. Presentation on application of matrices
Application of Matrices in real life. Presentation on application of matrices
 
PART A. Introduction to Costumer Service
PART A. Introduction to Costumer ServicePART A. Introduction to Costumer Service
PART A. Introduction to Costumer Service
 
[GDSC YCCE] Build with AI Online Presentation
[GDSC YCCE] Build with AI Online Presentation[GDSC YCCE] Build with AI Online Presentation
[GDSC YCCE] Build with AI Online Presentation
 
How to Break the cycle of negative Thoughts
How to Break the cycle of negative ThoughtsHow to Break the cycle of negative Thoughts
How to Break the cycle of negative Thoughts
 
Introduction to Quality Improvement Essentials
Introduction to Quality Improvement EssentialsIntroduction to Quality Improvement Essentials
Introduction to Quality Improvement Essentials
 
MARUTI SUZUKI- A Successful Joint Venture in India.pptx
MARUTI SUZUKI- A Successful Joint Venture in India.pptxMARUTI SUZUKI- A Successful Joint Venture in India.pptx
MARUTI SUZUKI- A Successful Joint Venture in India.pptx
 
Benefits and Challenges of Using Open Educational Resources
Benefits and Challenges of Using Open Educational ResourcesBenefits and Challenges of Using Open Educational Resources
Benefits and Challenges of Using Open Educational Resources
 
How to the fix Attribute Error in odoo 17
How to the fix Attribute Error in odoo 17How to the fix Attribute Error in odoo 17
How to the fix Attribute Error in odoo 17
 

Nexus Summer 2006

  • 1. 1 Warwick Business School Alumni Association magazine: summer 06
  • 2. 2
  • 3. 3 message from the dean 3 A s Dean of one of Europe’s leading business schools I am delighted that this resources will pave the way to ensuring that we can compete with the very best in terms of attracting and maintaining the very best faculty and students, and also summer’s graduation will take offering world class facilities. our alumni community to over 20,000. I hope that we can As the academic year draws to a close and our new inspire you all to tell our story building nears completion, it is time to bid a fond strongly to the outside world farewell to the current Vice-Chancellor, Professor and promote our brand, thus David VandeLinde. Throughout his time at Warwick ensuring that WBS goes from David has been a loyal supporter of WBS and personally strength to strength. championed the idea that WBS should enjoy the devolved budgetary status that we now do. Without a A tremendous boost to the School has come in the last doubt the progress made by WBS in the last five years few months with a gift to WBS of £500,000 from the would not have been possible without David’s support. University’s Chancellor, Sir Nick Scheele. I would like to We wish him the very best in his retirement. reiterate my personal thanks for this gift. Sir Nick, who was President and COO of Ford Motor Company until WBS is regularly described as having fostered an February 2005, said: ‘Throughout my career in business, entrepreneurial spirit in its students and this edition I have supported the concept of leading by example and of nexus gives you a glimpse of that. I hope you enjoy accordingly have donated a gift of £500,000 in the hope reading it as much as I have. I look forward to hearing that others will follow suit so that we can begin to redress your own tales of entrepreneurship over the years to the balance with our friends [at business schools] in the come – do keep us posted! USA and compete on a more even playing field.’ I am delighted to announce that this very generous gift was followed shortly after by several other major donations to WBS from graduates. As funding from the government continues to play a less significant role in our sources of portfolio income here at WBS such additional contents 4–7 WBS news 7 9 8 teaching entrepreneurship Nigel Sykes 9 getting started Robbie Vann-Adibé 10 from Dragons’ Den to ER Professor Harry Scarbrough 11 in mint condition Tim Morgan 20 22 12 the habitual entrepreneur phenomenon Professor Paul Westhead 13 smart choice Dr Frank Craig 11 14 entrepreneurship and development finance Andrew Trigg 15 social entrepreneurship Dr Paul Tracey 19 16 WBS development programme 17 WBS alumni board 18 volunteers in action 19 overseas event reviews 20–21 UK event reviews 22–23 alumni news
  • 4. 4 nexus: summer 06 research review WBS’s Industrial Dr Simon The second is a comparative study of Relations Research Collinson, MSM, European multinational firms in China, Unit (IRRU) has recently elected also looking at joint-ventures and alliances. been awarded a Lead Ghoshal A central question is: who is learning major contract to Fellow under what in such partnerships and why does it provide information the ESRC and matter? The study, run jointly with Mark and analysis EPSRC sponsored Easterby-Smith at Lancaster University, Mark Hall IRRU for a new EU Simon Collinson MSM Advanced Institute examines the possibility that European research network of Management firms are ‘breeding their future competitors’ monitoring developments in industrial (AIM), has commenced work on two in China. The findings will help EU firms relations, working conditions and corporate further ESRC funded projects. One to better understand the challenge of engaging restructuring. As well as providing a range study British small and medium-sized with China whilst retaining their own of inputs focusing on UK developments, enterprises (SMEs) in China to understand competitive advantages. Simon adds, ‘A IRRU is one of just three institutes the challenges they face in alliances and number of UK and European firms already across the EU chosen to coordinate the joint-ventures with Chinese firms. The involved in the study have been introduced preparation of a series of comparative, project will provide insights into the by WBS alumni. I’m interested in hearing analytical reports on key EU-wide topics. problems of entering and operating in from any alumni working for UK or EU The contract for this work is worth up China for firms that have limited resources firms that are involved in joint-ventures to €275,000 per year and will run for and expertise but see huge opportunities in or alliances in China who are willing to four years. The project started in March, this emerging market. participate.’ E simon.collinson@wbs.ac.uk supervised by Principal Research Fellow Mark Hall. Much discourse innovation include not only managers and about public staff, but also politicians and service users. The new network, sponsored by the services reform Public sector innovation needs to be judged Dublin-based European Foundation for appears to hinge against different criteria of success from the the Improvement of Living and Working on the need for private firm. For the latter, organisational Conditions, is intended primarily to serve public organisations advantage is the metric of success, whereas the needs of a core audience of employers’ to become more the measure for public services is public associations and trade unions at national Jean Hartley IGPM innovative. Yet, value, which concentrates on benefits and European level, governments and EU innovation in the for the whole of society not solely the institutions. It will replace three separate public service sector is poorly understood, individual organisation. EU ‘observatories’, including the European and there is an over-reliance on models of Industrial Relations Observatory, which innovation from the private sector. Jean’s research is funded through the IRRU has been part of since its inception Economic and Social Research Council’s in 1996, and the more recent European Research, workshops and teaching by Advanced Institute of Management (AIM), Working Conditions Observatory, for which Professor Jean Hartley, of the Institute of of which she is a Public Service Fellow. IRRU has provided UK data since April 2005. Governance and Public Management, aim She also leads a large research programme to fill this gap. Her work has developed examining the diffusion of innovation in Dr Lynne Oats, ideas and models of practical value to local government. Her major report on Senior Lecturer policy-makers and practitioners as well as innovation was recently published on a in Accounting contributing to academic knowledge not government website. and Taxation, only about the public sector but also the has received an private and voluntary sectors. W www.communities.gov.uk/pub/176/Inno award from the vationanditsContributiontoImprovementA Lynne Oats AFIN Centre for Business The public service sector is replete with ReviewExecutiveSummary_id1500176.pdf Performance, examples of innovation but the drivers of Institute of Chartered Accountants in England and Wales, to investigate the changing role of accounting in the Research by Dr Sue professional qualifications by managers corporate tax compliance process. The Bridgewater, MSM and prospective managers. This relatively project, to be conducted with Penelope group, revealed recent interest in gaining professional Tuck, University of Southampton, will that over 500 management qualifications is already examine the ways in which the recent trend managers for the making a real difference to management towards alignment of accounting and tax four top English performance and thus length of tenure in profits in the UK affects the relationship divisions have been management posts. Both the Pro License between HM Revenue and Customs and dismissed from their and the Certificate in Football Management Sue Bridgewater MSM large corporate taxpayers. post since 1992, run by WBS are proving increasingly bringing damaging attractive to managers and prospective Mark Hall and Professor Mike Terry, IRRU, instability to the game. However, she also managers seeking to add managerial insight with Professor John Purcell, University of outlined how a new professionalism in the to their considerable football skills. Bath, have been awarded a major two to four post of manager is already achieving results year research project for the Department on the pitch and could thus help managers To download the report of Trade and Industry. The contract, worth stay in post longer. w www.wbs.ac.uk/downloads/research/ £190,000 over the first two years, involves football-managers-0106.pdf assessing organisational responses to the Sue’s report demonstrated a significant For more information on the Certificate in recent Information and Consultation of change in the fortunes of managers brought Football Management Employees (ICE) Regulations. about by the increasing uptake of relevant w www.wbs.ac.uk/executive/football.cfm
  • 5. research review nexus: summer 06 5 A new report from by Government to build a new fleet of CSME hosted the Dr Catherine stations will undermine the development International Mitchell and Dr of the far more important renewable and Conference on the Bridget Woodman demand reduction technologies which are Financing of SMEs in of the WBS Centre necessary to reduce carbon emissions from Developed Countries Catherine Mitchell and Bridget Woodman CMuR for Management the remaining 92 percent or so of energy in April, building Stuart Fraser CSME under Regulation demand. For more information on the on the outcomes (CMuR) which examines the contribution report, published by WBS together with and response to the ground-breaking UK nuclear power could make to the UK’s environmental think tank Green Alliance research into SME finances by Dr Stuart energy ‘mix’, says that if Government opts w www.wbs.ac.uk/news/releases/2006/04/ Fraser, WBS Senior Research Fellow, (2004 to take up the option of new nuclear build, 13/Nuclear/puts/renewable UK Survey into SME Finances). it risks becoming locked into expensive technology that will make it harder WBS, working with University departments Computer Science and Mathematics, has been overall to reduce carbon emissions. The awarded £3.8 million in the second round of the Science and Innovation Awards announced authors say that while nuclear power is a by the Engineering and Physical Sciences Research Council (EPSRC). The award is to set up low carbon technology which provides 8 the Centre for Discrete Mathematics and its Applications led by Professor Mike Paterson of percent of energy demand, a commitment Warwick with Professor Bo Chen as a member of the Executive Team leading the WBS input. hot off the press Essential Quantitative The Strategy Pathfinder Multi-Asset Class Investment Methods for Business by Dr Duncan Angwin, Strategy by alumnus Guy Management & Finance, MSM, Stephen Cummings, Fraser-Sampson (DLMBA 3rd edition by Les Victoria University of 85–9), published by Wiley, Oakshott, Practice Link Wellington, and Chris claims that if UK pension Manager/Senior Teaching Smith, University of funds had practised multi Fellow, ORIS. A concise, Adelaide (formerly at WBS), asset class investing during accessible, comprehensive published by Blackwell. Built the 1990s then the present introduction to quantitative techniques around 82 micro-cases of real-life problems funding deficit would not emphasising business relevance and faced by companies and executives, drawn exist and the recent spate of closures of final discussing the challenges of problem- from a rich tapestry of business activities salary pension schemes would not have solving in the real world. across Africa, the Americas, Asia, Europe been necessary. w www.palgrave.com/resources/btu/ and Oceania. w www.blackwellpublishing. w eu.wiley.com/WileyCDA/WileyTitle/ Business.asp#Quantitative com/book.asp?ref=1405126132&site=1 productCd-0470027991.html Operations and Process Marketing Management Taxation – Policy and Practice, Management – Principles and and Strategy was originally 13th Edition 2006/2007 by Practice for Strategic Impact developed by the late Peter Andy Lymer, University of co-authored by Nigel Slack, Doyle, WBS Professor of Birmingham, and Lynne Robert Johnston and Stuart Marketing. Now in its Oats, WBS Senior Lecturer Chambers, WBS Operations 4th edition, published by in Accounting. Published by Management, with Alan Pearson Education, Philip Fiscal Publications. Written Betts, published by Pearson Stern, Senior Lecturer in in an accessible style with Education. Approaching the subject from Marketing and Strategic Management, has many examples, activities and questions a truly managerial perspective, the book updated this comprehensive but concise throughout, this textbook gives a thorough inspires a critical and applied mastery of the and practical management guide to the understanding of the UK’s taxation core principles and processes fundamental important ideas in advanced Marketing principles and current practices. to managing business operations. and Strategy. w www.fiscalpublications.com w www.pearsoned.co.uk/slack W www.pearsoned.co.uk/doyle 10% off We are pleased to be able to offer all WBS alumni and staff not only a 10% reduction on The Changing Institutional International Business by Face of British Employment Alan M Rugman, Professor this book – but through a generous offer from Relations, jointly edited by of International Business, the publisher – a 10% reduction on ALL their Professors Linda Dickens of Indiana University, and Dr books for any orders placed before the end of WBS and Alan Neal of the Simon Collinson, Senior 2006. If you are a current student of WBS the Law School. Published by Lecturer in International deal is even better – 25% discount off this title Kluwer Law International, Business, WBS. as well as also qualifying for the 10% deal off the volume marks the 30th Outsourcing. Emerging the publisher’s other books. All orders must anniversary of the Advisory economies. Environmental impacts. Just quote code:WBS2006.10 for the 10% alumni Conciliation and Arbitration Service (Acas) three of the many key issues currently deal and WBS2006.25 for the 25% discount and provides a contemporary picture facing international businesses, all of which for students. Then quote the publishers web of the institutional landscape of British are examined in the fourth edition of this address and email: employment relations. well respected textbook. W www.aspenpublishers.com w www.pearsoned.co.uk/rugman e wbsoffer@fiscalpublications.com
  • 6. 6 nexus: summer 06 WBS news generous gift the fifth annual Sir Nick Scheele, Chancellor Warwick-Acas Lowry lecture of Warwick University has donated half a million The annual Warwick-Acas Lowry lecture was held at WBS in March, pounds to Warwick with Alan Johnson MP, Secretary of State for Trade and Industry, Business School and hopes scheduled as the guest speaker. At the last minute the Minister had to it will encourage others to remain in London and sent a video introducing his lecture entitled consider supporting the ‘The World of Work’. The lecture, delivered by one of his officials, University. Sir Nick has had set out the Government’s key priorities and argued that addressing a long association with the these calls for a change in the role of employment legislation. University and was once a member of the WBS Board; w users.wbs.warwick.ac.uk/group/irru/publications/warwick_papers he became the University of Warwick’s fourth Chancellor in March 2002. Sir Nick has said, ‘The competition between UK and USA universities is a fact of life which can be seen most significantly within our business schools. Although USA business schools got a head start, Europe, and particularly the UK have demonstrated that the provision of excellent business education can be found on this side of the water too. However, there is still one area where I perceive that the UK is at a considerable disadvantage to our North American competitors. The funds donated to universities by alumni and other beneficiaries in the USA dwarf the sums donated here. Although European Alumni now compete favourably with their North American counterparts in the salary stakes, the culture of giving to your university simply has not developed here as it has in the US. Many of you will know that I have had a long involvement with the motor industry, but it has not necessarily been cars that have motivated me but practice of business and the science of management itself which is why I have endowed Warwick Business The lecture provided an ideal opportunity to launch a book jointly School with this gift.’ edited by Professor Linda Dickens of WBS and Professor Alan Neal of the Law School (see hot off the press P5). Rita Donaghy, the WBS Scarman Road Phase 3 Stage 1 development Chair of Acas (centre) formally launched the book and Linda is pictured third from right. moves towards completion in September 2006 first fellows The National School of Government has named Dean Howard Thomas, and Professors John Benington, Jean Hartley and Colin Crouch of WBS among the first Fellows to its Sunningdale Institute – a group including internationally rated academics and industry figures, and offering development to government and public service organisations on operational and delivery issues. WBS has the biggest involvement of the participating organisations. w www.nationalschool.gov.uk/programmes/index.asp new degree at WBS WBS is launching a new Masters degree, the MSc in Management, starting in October 2006. The degree has been designed to meet demand from top quality graduates in subjects unrelated to STOP PRESS: The Times Good University Guide 2007 again business, who wish to follow a career in management but do not rates WBS in the UK top three for both Business Studies and have the work experience necessary for The Warwick MBA. Accounting & Finance. The University as a whole maintained 8th place out of 109 UK universities. w www.wbs.ac.uk/go/mm
  • 7. WBS news nexus: summer 06 7 multimedia at WBS winning team We now have the ability to record selected At a lunch to celebrate the end of the events at WBS on high quality digital video, spring term, a £1,000 prize was presented edit them and post them on the web site as to the winning team of MBA students for a video file, convert them into audio files outstanding group project work on the for podcasts and burn them on to DVD to Practice of Management (PoM) module send to anyone who wants a high quality for the academic year 2005–06. The prize copy. Over recent months we have recorded was sponsored by the Fund for Academic press conferences, guest lectures including Excellence, thanks to generous donations presentations from IBM and Mary Jo Bane from alumni, friends and staff of WBS. Sailing to success from Harvard, posted a podcast by Dr Bridget Woodman on renewable energy and recorded the Winter Graduation assembly. A WBS crew of MBA students reached second place in the Global MBA Trophy, ‘It is predominantly a tool for news organised by London Business School, gathering and assisting the external losing only to SDA Bocconi’s crew. The promotion of the Business School,’ said crews competed for three days, in six WBS Director of Communications, Vincent fleet races in the port of Piraeus, Greece. Hammersley. ‘However, we are fortunate Crew members: Bobo Baudin, Skipper to attract first class speakers and if we can (Sweden), Odul Akin-Rousk (Turkey), capture these presentations and other Panos Anastasiou (Greece), Gaudenzio selected events I see this as a major benefit BonaldoGregori (Italy), Evangelos to both alumni and future students.’ Christodoulou (Greece), Filippo Riva (Switzerland/Italy), James Smith (South The eight members of the team were: Africa/UK). winter graduation Michael Brockmann, Lee Fisher, Kartik Kumar, Lillian Mbindyo, Irina Motovilova, The team now competes in the SDA WBS hosted a buffet lunch for over Richard Walker, Abdoul Wane and Bocconi MBA’s Cup 2006 (Santa Margherita 100 WBS graduands, their families and Emmanuel Sissimatos. and Portofino, Italy, 21–24 September). friends, attending the Winter Graduation If anyone would like to be part of the ceremony at the University of Warwick on inner courtyard of the building. Howard WBS crew, or can identify sponsorship Wednesday 25 January. Thomas, the Dean of WBS, gave a speech opportunities for the team, please contact congratulating the graduands on their Panos Anastasiou. The Scarman Road lounge was extended achievements and Head of Alumni by the installation of a specially Relations, Nathalie Walker, welcomed e panos.anastasiou05@mba.wbs.ac.uk commissioned marquee within the them to the WBS Alumni Association. media round-up coverage in the Middle East. Still abroad, WBS WBS alumni have been equally active. Dean Howard Thomas made news in the Thomas Sparrvik (DLMBA 95–00) was the In the year of football’s World Cup, it academic press of the USA when he was made subject of an article in an international was particularly appropriate that Dr Inaugural Fellow of the Strategic Management edition of the Financial Times on how Sue Bridgewater kicked off WBS media Society, joining an elite list that includes his MBA has boosted his career, David coverage with a press conference at the Harvard’s Michael Porter and business guru McNulty (MPA 00–5) was profiled in Warwick in London office. She presented Gary Hamel. national media about his career success in the first stage of her research into trends the public sector, and Nicholas Yeo (MSc in professional football management. Professor Colin Carnall, as Director of Fin Maths 98–00) was quoted widely in Every seat in the room was taken, and Executive Programmes at WBS, is regularly Asian media and the Reuters newswire on the resulting media reports covered the featured in training and development the performance of stocks in the Asian full range from international satellite publications with expert comment and markets. It is good to see other alumni in television to local newspapers. To date, articles on his latest book. Professor Andrew the news due to successful career moves we have logged 50 different sorts of media Sturdy’s research into the use of consultants, and promotions (see alumni news P22/3). coverage on this topic alone. particularly in the public sector, formed the basis of a programme for BBC Radio 4’s File on There just isn’t room to list all the alumni Other faculty have been raising the Four. Dr Catherine Mitchell and Dr Bridget and faculty who have contributed to WBS profile too with media coverage. Woodman are fighting a two-woman battle the media for their particular areas of Professor Martin Cave, Head of the on the side of renewable and sustainable expertise or career success. Keep up to date Centre for Management under Regulation energy sources, in an effort to counter the with WBS in the news online – go to our research centre, is an international and nuclear industry’s current push for favourable recently upgraded web pages at: influential figure in the development media coverage. Catherine has appeared on of telecommunications. He chaired the BBC2’s Newsnight and written articles in The w www.wbs.ac.uk/news ground-breaking Telecoms Regulatory Guardian, while Bridget has been interviewed Authority 2006 Development Review by local radio and contributed to BBC TV’s Panel in Bahrain, which achieved wide Countryfile programme.
  • 8. 8 nexus: summer 06 focus on entrepreneurship teaching entrepreneurship Nigel Sykes, Principal Teaching Fellow, CSME, gives an insight into his approach to teaching entrepreneurship. I walk around and notice people speaking in acronyms. An example is the classic four Ps of marketing. Well, here are my 3 Ps: What we try to encourage in the Entrepreneurship teaching at WBS is that each student is a remarkable talent and a to translate this into reality. What we really do at WBS is to tease out latent entrepreneurial talent. Some say ‘this what have Pinter (Harold the playwright), good entrepreneurial team recognises each isn’t for me’ and that’s a good outcome. Plato and Prostitution NOT got to do with other’s talents and encourages different Some, having studied the course say ‘I now the way I teach Entrepreneurship? leadership capabilities to take over the know who I am and where I fit within an helm of the business as it and the landscape entrepreneurial team’, which is brilliant. Harold Pinter’s ‘The Caretaker’ is set in a it traverses, changes. one room flat and there are only two parts Then there are those who may have felt for in the play. One, the owner of the flat, and Some are good ‘envisioners’ and lead the some time that they had a burning desire to the other, a man staying with him, who has creativity phase and principal forming get something started, and they find they no home and seemingly no real prospects stage of the business venture. Others can fly, ignoring those negative voices that either. That is until, we learn, he can get are good ‘enablers’ who lead the process had held them back for so long... again, to Sidcup to collect his papers (his MBA?) and strategy forming stage and finally a very worthwhile and significant outcome. and then he believes everything will be the ‘enactors’, the practical ‘doers’, even okay. I sometimes feel that the MBA can be specialists. Everyone in the team gets to So I suppose Entrepreneurship is taught at seen like that but Entrepreneurship is more know and appreciate each other’s skills and Warwick so these 3 Ps can be avoided. In about developing the individual rather talents and learns to recognise, encourage summary, we’re more about recognising than focusing on the qualification. and release each other. and releasing entrepreneurial talent and capability, developing an encouraging Finally Prostitution, the last of the 3Ps rather than a critical culture, and helping we do not teach on the Entrepreneurship people to fly out of the restrictions that Everyone in the team gets option, you will be pleased to know! What can be imposed by more controlling and on earth do I mean? hierarchical structures out there. to know and appreciate each other’s skills and talents and To illustrate, I taught a session at a local school recently and the students thought, learns to recognise, encourage ‘Here is a man from Warwick Business and release each other School, and he is going to talk about the author in minute Entrepreneurship. We will go and hear about how to acquire funding and make Nigel’s background money.’ In the first ten minutes there was is in sales and retail Now to Plato who gave us the notion of management, a stunned look on their faces as I avoided marketing and outlet a republic and Platonic dualism. Born talking about money at all. development. He is into a wealthy ruling family in Greece, the former Enterprise I’m sure he was a bit put out when civil So often the expectation is that the teacher Agency Director unrest saw his family fall from favour. He of Entrepreneurship will just talk about and manager of pilot Community went off and met a few Gnostics, mystics where winning ideas come from and then Programme project and thinkers of that time (a bit like going how to make your proposition attractive linked to industry to WBS I suppose) and came home with to a banker or investor who will then put with Birmingham a cunning wheeze. If we can encourage up the money. I would even go so far as Chamber of Industry and Commerce. Nigel people to fit into a system that is controlled to say that in extreme cases people find works in a ‘catalytic’ role in helping to release capability and talent through individual, by the state (him) and has elected officials themselves saying things like: organisational and (supposedly but really his mates) we will inter-organisational opportunities. create a republic or corporate structure and there will be order and everyone will What position would you like me in? Research Interests: family business succession; behave (be controlled in other words by social entrepreneurship; understanding What do you want me to do? success and evolution of firms particularly in them) and I will be the person whose name What do you want to hear from me? terms of marketing and team development; and reputation will live on for ever as the international economic regeneration through one who thought of this cunning idea and ... so that I can get the money I need for small business and entrepreneurship, plan. Platonic Dualism and the Republic my business. This is so like the oldest particularly in Eastern Europe, Latin America, DPRK (North Korea) and Zimbabwe. he created is a dangerous idea really, when profession in the world isn’t it? And we can you consider that Gallup have found that end up being slaves to money. over 80 percent of 1.2 million managers interviewed by them were not employing It is a challenge teaching Entrepreneurship their talents and capabilities in their work, beyond the theoretical constructs and on a daily basis.
  • 9. nexus: summer 06 focus on entrepreneurship 9 getting started Robbie Vann-Adibé (MSc MSOR 84–5) is one of WBS’ most successful entrepreneurial alumni, with over 20 years of experience in technology, start-ups, consulting and financial services in the USA and Europe. R obbie was most recently the turn- around CEO of Ecast, a San Francisco based digital jukebox company. He whereas in later years I developed a very different set of criteria for what to look for in a workplace – which were: Thirdly, IPOs are becoming harder for start- ups to achieve given the cost of compliance and the capital markets receptivity. developed Ecast from a start-up to an • Do you like the people? If you like them, operational enterprise, paving a clear path you’ll be willing to take their input The fourth trend is the emergence of a to success in a proven multi-billion dollar • Can you learn something from the people new breed of acquirers who are prepared to market, stimulating users’ appetite for you’ll be working with? This probably acquire companies just on the basis of their delivery of the best internet-based content means they are good at what they do and people and technology and not as a self- – anywhere, any time. will satisfy their customers sustaining business. • Are people having fun? If they are, then it Robbie came to campus in February 2006 probably means the working environment So given this chasm between entrepreneurs to share his wealth of experience with will be productive; their customers and established venture firms, Robbie Undergraduate, Specialist Masters and satisfied and the place is functional strongly believes there is an opportunity MBA students. See the box below for a for a new style of Venture Firm to work few of his top insider tips on the road to Technology start-ups – the basics with entrepreneurs before they receive entrepreneurship. • If you can’t afford to take 12–18 months established venture capital, or are acquired. off with no salary – don’t do it! He is in the process of creating such a firm. A perspective I wish I had had at the • Consulting is a great perch from which to beginning of my career come up with new ideas – it’s essentially Robbie’s final piece of advice is, ‘Don’t get ‘When I began my career, the criteria I used people paying you to tell you their so focused on the destination that you to determine where to work and who to problems and come up with solutions forget to enjoy the journey.’ work for were very different – I looked at • Try to engage a trusted resource with things like salary, title, job description etc, relevant expertise early to help vet your idea(s) the author in minute A few big lessons Creating a team • Technology is almost impossible to Robbie is happily Work in a big organisation/corporation develop alone married to another Warwick alum, first – you will learn a huge amount and • My experience suggests that you need Linda, who he met it will stand you in good stead for start- at least two people to start a successful during his time at up activity and securing VC funding technology based venture – the technician Warwick, and – or put another way, make your early and the business person considers his two children his greatest mistakes on someone else’s payroll. • You are better off with people you’ve start-up projects ever. worked with and knowing what they are Don’t over-plan – go with the flow good/bad at Robbie started his career as a developer on Wall • Find your ‘mirror’ – having someone Street, building trading and clearing systems at – you never know where your next Morgan Stanley and Credit Suisse First Boston. opportunity may come from. around who spends all the time agreeing He helped launch several start-up technology with you is a waste of salary! companies including Seer Technologies, a CASE Learn to do something really well. • ‘Test drive’ working together – work tools firm. He did a stint in consulting as a Senior together to refine your idea and see what Associate at Booz Allen Hamilton in San Francisco, where he led strategic consulting initiatives. He Don’t burn bridges (aka shut the door that feels like held various senior positions at global software but always leave a window open) – in giant, Oracle, and was Vice President of Product many industries you’ll meet the same Always scanning the horizons for Marketing at start-up Illustra, an object-relational opportunities, Robbie has begun to focus database company acquired by Informix. Robbie people at different junctures of your co-founded Viant in 1996, a web-consulting career and it’s best that they think well on the venture capital industry that has company, leading its global expansion. Viant of you. operated in the USA for some 30+ years. completed an initial public offering in June 1999 According to Robbie, ‘There are four on NASDAQ. Cultivate your network – stay in touch trends creating new opportunities in this An active angel investor, he was an early investor with colleagues – you never know when area. The first we are seeing is an increase in companies such as Inspired Gaming, Volantis they might need you, or you them. in the number of entrepreneurs who are and Sidestep. starting businesses early in their career, Stay healthy – success without your bootstrapping their companies and are not Robbie is establishing an early stage venture firm in California with several VC friends (remember personal health is the wrong result. attracted to venture capital. The second is that advice about working with people who you that venture capitalists are enjoying ‘large will enjoy the journey with?) helping to advise and Don’t be intimidated by people smarter fund dynamics’ which preclude them from nurture start-ups in the San Francisco Bay area. than you – hire them. systematically making small, early stage investments.
  • 10. 10 nexus: summer 06 focus on entrepreneurship from Dragons’ Den to ER Professor Harry Scarbrough reports on current Innovation, Knowledge & Organisational Networks (IKON) research group projects. I nnovation is generally held to be critical to long-run success in the global marketplace, yet is something challenges of exploiting breakthroughs in scientific knowledge to improve medical practice. At the moment, such The reasons for this have to do with the dense clustering of leading science and business research centres in specific that many firms do badly or not at all. breakthroughs often fail to reach hospitals, regions of the USA (especially Boston) This is not generally due to a lack of new even though patients are in desperate need and also the different career paths that science and technology opportunities of the new treatments they might bring. people follow in the two countries. For (though UK firms do still under-invest This project draws on IKON members from example, it is common to find a clinician in R&D). It has a lot more to do with the universities of Warwick (Jacky Swan, working in a hospital in the USA who the skills and organisational capabilities Anna Goussevskaia, Ademola Obembe), is also simultaneously working with a needed to exploit and commercialise such Coventry (Maxine Robertson), Leicester biomedical company. This does lead to opportunities. This challenge involves (Mike Bresnen) and Bentley College, USA, ethical dilemmas – see episodes of the firms being able to simultaneously explore (Sue Newell). Their study has looked at the USA TV series ER for examples. But, in and exploit knowledge – a big challenge reasons for failure and delay in this process, general, commercial arrangements between because these tasks require very different and whether experience from the USA has clinicians and private companies are seen types of management. anything to teach us in the UK. as more acceptable in the USA than the UK. This is an area where the IKON research Overall then, the study has found that group is carrying out leading-edge research. in the UK, there is a greater degree IKON is based at Warwick but is networked of separation between professional This ability to select with other universities in the UK, USA and groups and between public and private Brazil. It also works closely with KIN (the (and reject) innovation organisations. This means that there is Knowledge and Innovation Network), a opportunities is critical to more of a need to establish ‘bridging’ consortium of leading international firms, mechanisms to connect the different including Schlumberger, Conoco Phillips, successful commercialisation. disciplines and/or different organisations Masterfood, PwC and others. Understanding how decision- involved. By contrast, in the USA, these makers inside and outside groups and organisations are already more One of IKON’s current projects is tightly ‘bonded’. examining the exploration-exploitation firms do this successfully, and challenge through a collaborative study maybe how it differs between KIN activities are described on its web site with Boston University in the USA. I the UK and the USA, should w www.ki-network.org am directing this study, which involves identifying the way in which groups such be a significant contribution as venture capitalists and corporate venture to the debate on how the UK the author in minute teams make investment decisions on new technology opportunities. The challenge can make better use of the here – echoed by the BBC TV series knowledge produced by its Harry Scarbrough is Dragons’ Den – where entrepreneurs pitch world-leading universities and co-founder of the IKON Research Centre and their ideas to secure investment – can be likened to the successful venture capitalist’s research institutions the Knowledge and Innovation Network ability to identify two or three attractive (KIN). He is also propositions from the hundreds of business currently Director of a plans received every year. This ability to major ESRC research programme on ‘The select (and reject) innovation opportunities Their work (still ongoing) shows that evolution of business is critical to successful commercialisation. the exploitation of most scientific knowledge’ which Understanding how decision-makers inside breakthroughs depends on scientists encompasses a number of projects examining and outside firms do this successfully, from various disciplines working together the creation and exploitation of knowledge, and maybe how it differs between the with business experts and clinicians. including his own study (jointly funded with the Cambridge-MIT Initiative) of ‘The UK and the USA, should be a significant For example, the development of tissue dynamics of networked innovation’. contribution to the debate on how the engineered products (used in cartilage UK can make better use of the knowledge repair and wound treatments) needs Research Interests: management of knowledge produced by its world-leading universities medical scientists to collaborate with and learning in organisations; role of social networks in innovation processes; and research institutions. clinicians, materials scientists, biologists, commercialisation of innovation. geneticists, venture capitalists and Another IKON study (co-funded both by lawyers. The team refers to this activity as the ESRC’s EBK programme mentioned ‘interactive innovation’ and reports that, above and the EPSRC Warwick Innovative in general, the USA is better equipped to Manufacturing Centre) focuses on the support this kind of innovation.
  • 11. nexus: summer 06 focus on entrepreneurship 11 in mint condition Tim Morgan (BSc Accounting & Financial Analysis 94–7) is Commercial Director of Mint Digital, a leading new media company that creates concepts for interactive television. Here Tim explains how he came to join forces with fellow undergraduate Andy Bell (BSc Economics 94–7), who started the company in 2004. ‘A ndy and I originally met at Warwick as undergraduates in 1994. We were separated on graduation in 1997 as our careers went on divergent paths. Andy went into interactive television whilst I joined Ernst & Young as a trainee chartered accountant. After qualifying, I spent the next five years in mergers and acquisitions. ‘In 2004 Andy started Mint Digital, an innovative new media company making interactive television. I had always hoped that one day we would run a business together, so when he told me about Mint Digital, I offered to lend a hand. Multi award winning interactive designer Noam Sohachevsky joined in November 2004 and I started to get involved at about the same time. ‘I began by helping with financial and commercial matters in my spare time since I still had a day job working in acquisitions. By the end of 2005, the company had developed to a stage where I had to make a decision; to continue my career in the City or to go full time at Mint Digital. I loved Left to right: Andy, Tim and Noam the work I was doing for Mint so much that when the opportunity came along to join full-time, I took it without hesitation.’ ‘The thing I am most grateful to WBS Mint Digital has developed a reputation for meaningful innovation, punchy content If you start a for is the bread and butter financial and commercial education. As an and effective design. The company has business, I think it is undergraduate, it is easy to be seduced by been responsible for several successful the strategic side of running a business, web based concepts for television clients imperative to work but it is the practical day-to-day issues that including Channel 4, Discovery USA, and are most fundamental when it comes to RDF Media. with people you like getting started. Since the start of 2006, Mint has attracted and admire ‘WBS is the perfect nursery for anyone private equity funding and has won with entrepreneurial ambition. This is many awards for its work. Most exciting because of the quality of the people at the of all, at the annual MIPTV (international Tim continues: ‘In Andy and Noam I School, many of whom have a wealth of television) festival in Cannes in April, have partners who are not only extremely entrepreneurial experience themselves. Mint was crowned the winner of a BBC talented but who I get on with like a house Also there was a focus on corporate case sponsored competition to develop the on fire. I also think that you should only studies that demonstrated the practical cutting edge media concepts of tomorrow. start a business if you passionately believe application of the financial and strategic in what you are doing since it requires a theories that I had learnt. This summer, Mint is launching lot of hard work and it is easier if you enjoy ‘Bloombox’, a web application that makes yourself. ‘Most of all, my experience at WBS was it easy for media companies to acquire fun. I really look at back at my time at WBS user generated content. ‘Bloombox’ is an ‘Finally, the most fulfilling thing of all is fondly and I met a lot of great people while example of the type of product that puts being able to be true to yourself and stick to I was there.’ Mint at the centre of the convergence your principles. between old and new media. w www.mintdigital.com
  • 12. 12 nexus: summer 06 focus on entrepreneurship the habitual entrepreneur phenomenon In a forthcoming book, Paul Westhead, WBS Professor of Enterprise, provides the first systematic study of habitual entrepreneurs. Here he reveals the key findings and implications of his research. Despite media hype, case study evidence of sales or employment growth. Habitual opportunities, support agents need to suggests that not all habitual entrepreneurs entrepreneurs who had previously ‘failed’ improve the provision of information. who own more than one business, either reported lower levels of living standards. sequentially (serial entrepreneurs) or Habitual entrepreneurs also require concurrently (portfolio entrepreneurs), Human capital: Habitual entrepreneurs assistance with converting imagination, are consistently successful. My book is were less likely to focus on their perceived creativity and innovation into better based on survey evidence involving a technical capability. Superior firm quality opportunities that are problem/ representative sample of 730 private firms performance was associated with highly market focused with greater wealth creating in Great Britain. A human capital approach educated entrepreneurs and those leveraging potential. was used to explore the general and specific managerial and entrepreneurial capabilities. profiles of habitual entrepreneurs with Weaker firm performance was linked Novice entrepreneurs need to be made prior business ownership experience with entrepreneurs citing only technical aware that simply being in possession of and novice entrepreneurs with no prior capabilities. technical knowledge, and a related idea, business ownership experience to leverage. does not guarantee a successful business. The contribution of business ownership Key implications Novice entrepreneurs should be encouraged experience vis-à-vis other dimensions Business ownership experience: The assets to use sources of information utilised by of human capital was explored within a and liabilities of business ownership habitual entrepreneurs. multivariate regression framework. experience need to be considered. Habitual entrepreneurs possess both the inclination Failure: The view that ‘failure is the fuel Key findings and ability to identify opportunities but of success’ was not validated by this Scale: Habitual entrepreneurs owned 52% of some lack the skills and capabilities to study. Initiatives supporting ‘failing’ surveyed firms. In total, 162 firms involved exploit them fully. entrepreneurs to return to entrepreneurship serial entrepreneurs whilst a further 216 may be promoting a culture of failure. firms involved portfolio entrepreneurs. Venture performance: Studies that focus Assistance may be required to foster solely on firm performance (ie sales and intelligent failure, which seeks to change Background: Habitual entrepreneurs were employment growth and profitability) an entrepreneur’s mindset and behaviour more likely to be men and generally may fail to provide an understanding of to overcome personal biases (ie hubris and reported business ownership family the entrepreneurial human capital drivers denial). backgrounds. They cited a high level of linked to the opportunity identification that similarity between current and previous creates future wealth. Habitual entrepreneurs The habitual entrepreneur phenomenon businesses. who identify more than one opportunity (Edward Elgar Publishing, Cheltenham), have better choices and have the resources is due out at the end of November. Opportunities: Habitual entrepreneurs to pursue more opportunities. Portfolio identified more opportunities over a entrepreneurs accumulate larger personal five-year period and pursued a higher wealth. Compared to other entrepreneurs, the author in minute proportion than novice entrepreneurs. More portfolio entrepreneurs take smaller amounts opportunities were identified by highly of money out of each business, but have Paul Westhead, educated entrepreneurs who had engaged in more businesses to draw upon. WBS Professor of intensive information search as well as those Enterprise, Centre for who had leveraged their managerial and Resources: The resources needed to identify Small and Medium entrepreneurial capabilities. opportunities may not necessarily be the Sized Enterprises. same as those required to manage successful Visiting Professor of Entrepreneurship (Bodo Information: Habitual entrepreneurs individual ventures. Habitual entrepreneurs Graduate School of searched for information less intensively need to accumulate and leverage managerial Business, Norway, 2001– but used additional knowledge from and entrepreneurial capabilities. present; former Professor employees, consultants, financiers and of Entrepreneurship at government sources more frequently. Customised external support: In addition Nottingham and Stirling Universities Business Schools and Senior Research Fellow at Warwick, Entrepreneurs citing high entrepreneurial to specific advice on new firm creation, 1992–7. Research posts at Imperial College and capability searched for information practitioners, consultants and government Cranfield School of Management. Consultancy more intensively, used additional sources agents should provide customised support experience for EIM Business & Policy Research, and identified more opportunities. (ie information, training, advice, etc) 2005. Links with OECD, Paris; Higher Education Paradoxically, those entrepreneurs targeted at the specific needs of habitual Funding Council for England and Wales; and Scottish Enterprise. reporting higher information search entrepreneurs. Business failure rates may be pursued fewer opportunities. Information reduced considerably if additional support Research interests: habitual entrepreneurs, overload may, therefore, be a problem. is made available to facilitate business internationalisation of SMEs, training Performance: Businesses owned by habitual idea evaluation and feasibility analysis. programme take-up and benefits, technology- entrepreneurs did not report superior levels To enable more entrepreneurs to identify based firms and Science Parks.
  • 13. nexus: summer 06 focus on entrepreneurship 13 smart choice Dr Frank Craig (DLMBA 99–02) CEO, Smart Holograms, shares his first-hand experience of entrepreneurship in the Life Sciences sector. I have a PhD in Microbiology and over 10 years executive management experience in the Life Sciences industry. I am basically frameworks at WBS which I later used for market analysis and development of a professional Human Resources function a serial entrepreneur and have started three at Smart Holograms. A blend of creative, biotechnology firms from the ground up. entrepreneurialism tempered with In each case I was the first employee and a management discipline is optimal for Founder. Aurora Biosciences Corporation effective company growth. was the first, based in San Diego. This became worth £1.6 billion five years Studying the MBA by distance learning after founding. The second was my own was great fun. It was interesting to meet management consultancy business called people from different industries and see Venture Consultancy Limited (in 2002) the linking thread of management. The which was based in the UK but established teachers were very professional and the international clientele in Europe and North ones I remember who made a lasting America. The third is Smart Holograms impression were usually the humorous Limited based in Cambridge, UK, which ones. I will claim ‘diplomatic immunity’ is also a Life Sciences firm. This company and refrain from naming them! is only a few years old and is now worth around £150 million. WBS has a world-class reputation and regularly produces high quality, Smart was co-founded in 2002 as a spin- peer-reviewed articles and books on out company from Cambridge University entrepreneurship. I also see that it started to exploit an exciting new technology a venture fund called Warwick Ventures that enables the development of a new in 2000 to help form spin-out companies generation of sensors for use in medical from Warwick’s intellectual property and devices and the diagnostics sector. The technology base. My perception is that it technology comprises novel interactive is being proactive in this area – which is a holograms ‘sensor holograms’ that can good thing. be engineered to change wavelength, image, brightness or position in response My personal goals are to continue building to a wide range of biological, chemical my career as an international CEO and to and physical stimuli. We are primarily develop my business Smart Holograms to focusing on developing innovative glucose its full commercial potential. sensors for diabetics and other tests for infectious diseases. Undoubtedly, since this I was also delighted to be invited onto the a platform technology, it has applications Advisory Board of Warwick Business School in many other markets such as Life Sciences recently to add some ‘entrepreneurial tools and security and packaging. spirit’. I aim to enjoy life, encourage my children and continue seeing the world via growing its annual revenues by over 600 travel (this time perhaps I can travel the percent and is quadrupling its UK facility other way round!) The biggest challenge size. We are also now aiming to open a Boston-based facility later this year. The w www.smartholograms.com for some entrepreneurs is firm has raised over £18 million to date and balancing entrepreneurial has five Blue Chip partnerships plus a major energy with management Government contract. Last year I travelled the author in minute around the world performing international discipline business development, which was fun. Frank has a PhD in Microbiology from the University of Glasgow and an MBA from WBS. The biggest challenge for some He has ten years of international, executive entrepreneurs is balancing entrepreneurial management experience in the Life Sciences I joined Smart Holograms as its first energy with management discipline. sector. He is a serial entrepreneur who has employee and CEO in August 2003. The Some start-up firms struggle because they founded three firms. He is currently CEO company currently has 25 employees, of Smart Holograms Limited – a medical fail to grow from a few person start-up diagnostics firm based in Cambridge (UK). a custom-built laboratory and offices to a managed firm with proper systems Frank is also a member of the Advisory Board in Cambridge, UK, and an office in San and procedures that ensure effective of Warwick Business School. Ramon, California. Smart is currently management. I learnt some very useful
  • 14. 14 nexus: summer 06 focus on entrepreneurship entrepreneurship and development finance Andrew Trigg (MBA 82–3), a partner in Thompsons, Chartered Accountants, discusses aspects of entrepreneurship and development finance in the context of providing corporate finance advice to business proprietors. spread of commercial and financial skills, has the best possible chance of providing incentivised with share options. Annual them with their risk rate of return, typically net profits have increased steadily. with an exit within three to five years. Exit Contrast this to Engineering, which used timescales can inevitably be influenced by to generate around twice the net profit of the exit timing requirement of the funder Electrical, with two shareholders/directors of the development capitalist, often a and one very capable second tier manager. pension fund. The manager had no employment contract or share options before he left for pastures A common requirement for a successful new about 18 months ago. Over the last funding approach is a management team financial year Engineering has achieved with a strong track record across a good little more than break-even. balance of skills. I have been invited to advise both sets One funding example which strikes close of shareholders on their exit strategy to to home is T Total an early stage and achieve a full price on a trade sale. My exciting retail business where I am serving view is that at best Engineering could face as non-exec Finance Director. Fellow around two years of ‘grooming’ before the directors include Nick Green, formerly shares should be offered for sale. Tesco director of Clubcard, Andrew Villars who was Spirit Group Director of Drink and I am also currently advising on the Penny Mallory, with a specialism in sales acquisition of a £40 million p.a. turnover promotion and marketing in addition to multi-site Retailer. This is one of several being a TV presenter and a National Rally target companies identified by me for a Champion. management buy-in team headed by Keith Webster (MBA 03–4). The owner of Retailer The first stage Business Angel funding I hold first meetings with in excess of 50 is a very talented entrepreneur and he round was challenging to say the least. SME proprietors every year across a range of believes his dozen or so senior managers are Having established and traded our first industrial sector and scale of activity. Many better at their jobs than he would be. One store for some months and recently of these businesses are ‘proprietorial’; as of the benefits of this level of organisation contracted a major wholesale deal to supply long as they sustain a reasonable earnings is that it makes the task of raising a 450 outlet, non-competing, retailer we are stream to provide their owners with a acquisition finance relatively structured now bracing ourselves to face the funding comfortable living there is little perceived and predictable. market again as a prelude to a major store change from year to year. roll-out; starting in Oxford. These examples underline the need for A minority of the businesses I get to adaptability and management support as see enjoy significant annual growth to two of the key elements for companies with sales, net profit and net tangible assets entrepreneurial ambitions. the author in minute providing a full risk rate of return to their shareholders. I describe these as Some texts include the raising Andrew is a Chartered Accountant with ‘entrepreneurial’; one of the acid test of risk finance as one element of specialist experience in advising on a variety of corporate finance cases. He is a member qualities being would a development entrepreneurship. For the ambitious of the ICAEW Finance and Management capitalist buy into this business? company shareholder/director I believe Faculty, as well as the Corporate Finance that the raising of such finance should be Faculty. He served as a director of a City based Many owners of smaller businesses would viewed as part of a process rather than an Development Capital/Corporate Finance like to achieve a risk return for their hard event. company for five years. work; they identify elements of commercial His earlier experience involved some years in a detail for improvement but appear to be As the development capitalist trawls senior commercial financial management role overlooking some of the fundamentals. through all of the usual commercial and with a FTSE 100 retailer and also included six financial headings to be found in business years in the City office of KPMG. Take a couple of examples: An Electrical plan checklists they are assessing what Andrew is a partner in Thompsons, Contractor and a Civil Contractor both impacts on the forecasts and consequently a growing practice in the centre of Bedford with annual sales around £5 million; but their exit return each commercial with five partners. there the similarity ends. statement will have. E andrew@thompsons.ltd.uk w www.thompsons.ltd.uk Electrical has an enthusiastic and capable A development capitalist’s primary second tier management team with a objective is to assess whether a business
  • 15. nexus: summer 06 focus on entrepreneurship 15 social entrepreneurship In this article Dr Paul Tracey, Lecturer in the Centre for Small & Medium-Sized Enterprises (CSME), gives examples of businesses formed and managed with social as well as commercial objectives and explains the challenges they face. T ony Blair, George Bush and Bill Clinton have all reported the role and importance of social entrepreneurship. organisations. Donors ‘benefit from a one stop, hassle-free service enabling them to fulfil their environmental and social entrepreneurs (opportunity recognition, the marshalling of resources, and the creation of the new venture) – with the Universities are increasingly offering responsibilities’, and Greenworks sells added complexity of defining, building courses and conducting research on the the furniture on to schools, charities, support for, and achieving social outcomes. topic. Social enterprise clubs have appeared community groups and start-up businesses across dozens of university campuses, and at discounted prices. I am presently working with Owen social entrepreneurship business plan w www.green-works.co.uk Jarvis – a social entrepreneur and competitions are now commonplace, formerly Director of Social Franchising at in both USA and UK business schools. But social entrepreneurs can also lead Community Action Network – on a project Moreover, the 2005 Net Impact conference businesses which have a more ‘for-profit’ designed to identify the characteristics of hosted by Stanford University – an event emphasis. For example, Cafédirect is a successful social enterprises, and the skills for graduate students in business and limited company selling ‘fair trade’ tea and competencies exhibited by successful management studies interested in social and coffee to provide above market prices social entrepreneurs. By combining our entrepreneurship and corporate social and good employment conditions for experience and knowledge, we aim to make responsibility – attracted a record 1600 disadvantaged tea and coffee farmers a substantive contribution to a new and participants. in developing countries. In addition exciting movement. But what, you might ask, does the term social entrepreneurship actually mean? And what kinds of people are involved in running social enterprises? Put simply, at the core of social entrepreneurship is the notion social entrepreneurs create businesses of trading for a social purpose, and it requires that social which have both social and commercial objectives, but where surpluses are entrepreneurs identify and exploit market opportunities primarily reinvested in the enterprise or a in order to develop products and/or services which allow social objective rather than distributed to owners. In other words, at the core of social them to generate ‘entrepreneurial profit’ for a given entrepreneurship is the notion of trading for social project a social purpose, and it requires that social entrepreneurs identify and exploit market opportunities in order to develop products and/or services which allow them to generate ‘entrepreneurial profit’ for a given to dividends to shareholders, around 8 social project. percent of annual profits are invested in the the author in minute training and support of farmers in Africa, Some brief examples will help to illustrate Asia, the Caribbean, and Central and South the kinds of organisations that social America. w www.cafedirect.co.uk entrepreneurs build and manage. Greyston Bakery, based in New York, is one of the And yet while these and many more social world’s best known social enterprises. enterprises have been very successful, It provides employment for people who plenty of others have struggled to have been marginalised from mainstream balance meaningful social outcomes with labour markets, many of whom have commercial viability. Indeed, a study been unemployed for long periods. by William Foster and Jeffrey Bradach The profits from the bakery are used to published in the Harvard Business Review subsidise a range of community-focused last year found that only a quarter of USA- Paul Tracey was previously Lecturer in services including housing, childcare and based social enterprises were in profit, Social Enterprise at Judge Business School, healthcare in the Yonkers district of New concluding that ‘despite the hype… few of Cambridge University. Has also held posts at York. w www.greystonbakery.com the ventures actually make money’. the School of Geography at Oxford University and the Centre for Entrepreneurship at Another social enterprise that has been Certainly, it appears that social Newcastle University. very successful in both commercial and entrepreneurship is a particularly Research Interests: entrepreneurship; social terms is Greenworks, which earns demanding form of entrepreneurship regional innovation; social and community income by recycling unwanted furniture – social entrepreneurs encounter the entrepreneurship; corporate social from corporations and public sector same challenges as more traditional responsibility.