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Entrepreneurial Mindset M1


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New business start-up

Entrepreneurial Mindset M1

  1. 1. The Entrepreneurial Mindset Enterprise Start Programme Graham Royce January 26 th 2009 Module 1
  2. 2. Entrepreneurial <ul><li>What is Entrepreneurial: </li></ul><ul><ul><li>Taking actions using a strategic perspective </li></ul></ul><ul><ul><li>Engaging in simultaneous opportunity seeking and competitive advantage seeking behaviors </li></ul></ul><ul><ul><li>Designing and implementing strategies to create wealth </li></ul></ul><ul><ul><li>Risk taker </li></ul></ul><ul><li>Know what you are doing (******) </li></ul>Dictionary speak!
  3. 3. Mindset <ul><li>They invent </li></ul><ul><li>They spot the gap in the market </li></ul><ul><li>They have the new idea </li></ul><ul><li>They improve on existing entities </li></ul><ul><li>They often do it more than once </li></ul><ul><li>The learn how to get money </li></ul>
  4. 4. Entrepreneurs <ul><li>Entrepreneurs are </li></ul><ul><ul><li>Individuals acting independently or as part of an organization </li></ul></ul><ul><ul><li>Can create a new venture or develop an innovation and take risks entering them into the marketplace </li></ul></ul><ul><ul><li>Independent individuals </li></ul></ul><ul><ul><li>Can surface in an organization at any level </li></ul></ul>sustainability
  5. 5. Sir Frederick Henry Royce, 1st Baronet , OBE (27 March 1863 - 22 April 1933) &quot;Take the best that exists and make it better. &quot; &quot;Whatever is rightly done, however humble, is noble&quot; In 1962 a memorial window dedicated to his memory was unveiled in Westminster Abbey. The only time an engineer has been honoured in this way. Whoever grows a beard, however humble, is noble
  6. 6. Entrepreneurial Opportunities <ul><li>Entrepreneurial opportunities are conditions in which new products or services can satisfy a need in the market (Recession) </li></ul><ul><ul><li>Solve a problem or make someone’s business or life more efficient or effective </li></ul></ul><ul><li>Entrepreneurs must be able to </li></ul><ul><ul><li>Identify opportunities not perceived by others </li></ul></ul><ul><ul><li>Take actions to exploit the opportunities </li></ul></ul><ul><ul><li>Establish a competitive advantage </li></ul></ul>
  7. 7. Henry Royce <ul><li>In 1884 with £20 of savings he entered a partnership with Ernest Claremont, a friend who contributed £50, and they started a business making domestic electric fittings in a workshop in Cooke Street, Hulme, Manchester called F H Royce and Company. </li></ul><ul><li>In 1894 they started making dynamos and electric cranes and F.H. Royce & Company was registered as a limited liability company. The company was re-registered in 1899 as Royce Ltd with a public share flotation and a further factory opened in Trafford Park, Manchester. </li></ul><ul><li>in 1901 he bought small De Dion and in 1902 / 1903 he bought 1901 model two cylinder Decauville. This did not meet his high standards and so he first improved it and then decided to manufacture a car of his own which he did in a corner of the workshop in 1904. Two more cars were made. He called them Royce’s </li></ul><ul><li>He saw the opportunity in motor vehicles and was introduced to Rolls via Claremont </li></ul><ul><li>The rest is history </li></ul><ul><ul><ul><li>Olympus aero engine </li></ul></ul></ul><ul><ul><ul><li>Merlin aero engine </li></ul></ul></ul><ul><ul><ul><li>Rolls Royce Silver cloud etc etc etc </li></ul></ul></ul>
  8. 8. International Entrepreneurship <ul><li>Entrepreneurship can </li></ul><ul><ul><li>Fuel economic growth </li></ul></ul><ul><ul><li>Create employment </li></ul></ul><ul><ul><li>Generate prosperity for citizens </li></ul></ul><ul><li>There is a strong positive relationship between the rate of entrepreneurial activity and economic development in a nation </li></ul>
  9. 9. International Entrepreneurship <ul><li>There must be a balance (in the culture) between </li></ul><ul><ul><li>Individual initiative and </li></ul></ul><ul><ul><li>The spirit of cooperation and growth ownership of innovation </li></ul></ul><ul><li>Successful entrepreneurs </li></ul><ul><ul><li>Often repeat the success </li></ul></ul><ul><ul><li>Are very creative </li></ul></ul><ul><ul><li>Promote cooperation and group ownership of an innovation </li></ul></ul>
  10. 10. What is Innovation <ul><li>Innovation is the process of creating a commercial product from an invention </li></ul><ul><ul><li>Invention brings something new into being </li></ul></ul><ul><ul><li>Innovation brings something new into use </li></ul></ul><ul><li>Innovation is a key outcome for entrepreneurship and is often the source of competitive success </li></ul><ul><li>Innovations produced in large established firms are often owned by them not the entrepreneur </li></ul><ul><ul><li>Firms that pursue entrepreneurship are innovative, proactive and risk taking </li></ul></ul>
  11. 11. Innovation Types <ul><li>Most innovations are incremental </li></ul><ul><li>Builds on existing knowledge bases </li></ul><ul><li>Provides small improvements in the current product lines </li></ul>Incremental Innovation Mobile Phones Classic for incremental innovation Incremental innovation
  12. 12. Innovation Types <ul><li>Provides significant technological breakthroughs </li></ul><ul><li>Creates new knowledge </li></ul><ul><li>Is rare because of difficulty and risk </li></ul><ul><li>Requires substantial creativity </li></ul><ul><li>Radical innovations are often best developed in separate units that start internal ventures </li></ul>Radical Innovation Quality body works new braking systems – Rolls Royce etc etc Radical innovation Incremental innovation
  13. 13. Creating Value Through Innovation Processes Creating value through innovation Entrepreneurial mindset Cross functional product development teams <ul><li>Facilitating integration </li></ul><ul><li>and innovation </li></ul><ul><ul><li>Shared Values </li></ul></ul><ul><ul><li>Entrepreneurial </li></ul></ul><ul><ul><li>Leadership </li></ul></ul>
  14. 14. Strategies for Entrepreneurship and Innovation <ul><li>Entrepreneurs will integrate knowledge and resources to successfully commercialize inventions </li></ul><ul><ul><li>Entrepreneurial new ventures need investment capital and distribution capabilities </li></ul></ul><ul><ul><li>Some Innovations will need new technological knowledge possessed by newer entrepreneur’s (LIT UL UCD etc) </li></ul></ul><ul><li>To innovate through a cooperative relationship, firms must share their knowledge and skills </li></ul>
  15. 15. Acquisitions to Buy Innovation <ul><li>Acquisitions </li></ul><ul><ul><li>Rapidly extend the product line </li></ul></ul><ul><ul><li>Increase the firm’s revenues </li></ul></ul><ul><li>A key risk of acquisitions is that an Entrepreneur may substitute the ability to buy innovations for an ability to produce innovations (lack of knowledge) </li></ul><ul><ul><li>Firm may lose intensity in R&D efforts </li></ul></ul><ul><ul><li>Firm may lose ability to produce patents </li></ul></ul><ul><ul><li>Rolls Royce bought Bentley – Why (Bentley was under capitalized didn’t test the market for the new car etc etc). </li></ul></ul>
  16. 16. The Entrepreneur Always Requires Money <ul><li>Government Organizations </li></ul><ul><ul><li>Grants </li></ul></ul><ul><li>Private Capital </li></ul><ul><ul><li>Friends and Family </li></ul></ul><ul><li>Venture capital firms </li></ul><ul><ul><li>Seek high returns on their investment </li></ul></ul><ul><ul><li>But Never Thinks about It </li></ul></ul><ul><ul><li>Henry Royce never did that’s why Rolls was an important part of a great company </li></ul></ul>
  17. 17. Thank You <ul><li>Any Questions </li></ul><ul><li>Contact Graham Royce </li></ul><ul><li>[email_address] </li></ul>