Social Entrepreneurship for Young Entrepreneurs

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These slides were presented at the YEPP-Workshop at 7. & 8. May 2014 in Berlin.

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Social Entrepreneurship for Young Entrepreneurs

  1. 1. Source: Stiftung Entrepreneurship 2014 Entrepreneurship And Social Entrepreneurship
  2. 2. Source: Faltin 2011 Agenda:  Wednesday:  Entrepreneurship – New Paradigms  Social Entrepreneurship  Thursday:  Thinking as an entrepreneur  How to develop an entrepreneurial idea
  3. 3. Source: Stiftung Entrepreneurship 2014
  4. 4. Source: Stiftung Entrepreneurship 2014 What do you need to become an entrepreneur ?
  5. 5. Source: Stiftung Entrepreneurship 2014 Invention, research findings, new technologies, new ideas „raw material“ developing and refining a business model entrepreneurial design acceptance by customers, competition economic success economic failure the market Success Factors for Start-Ups
  6. 6. Source: Faltin 2011 Our 'Brains Beats Capital' Method
  7. 7. Source: Faltin 2011 The New Paradigms of Entrepreneurship Entrepreneurship vs.Business Administration Starting up using components Concept-creative Startups
  8. 8. Source: Stiftung Entrepreneurship 2014 Very few people have the brains for both: for entrepreneurship as well as for business administration Focus on Entrepreneurship, Not Business Administration
  9. 9. Source: Stiftung Entrepreneurship 2014 Welche Steuern muss ich zahlen? Wie kann ich mein Unternehmen finan Einführung in die busy-Software. Finanzplanung Unternehmen und Organisation Wie organisiere ich meine Gründung richtig? Marketing für Existenzgründer Einführung in Arbeitsrecht Überblick über das deutsche Unternehmensrech Theorie und Praxis der Mitarbeiterführung Steuerliche Probleme für Gründer Förderrichtlinien der deutschen Ausglei Einführung Rechnungswesen 1Strategisches Management Interkulturelles Managem Zielgruppenanalyse Datenbankmanagment Controlling und Qualitätssicherung Mitarbeitermotivation Vergütungs- und Anreizsysteme Datensicherungssysteme Internationaler Zahlungsverkehr Public relations Workload Reduction Management Risk management Outsourcing Business-to-Business-Marketing Research and Development SWOT-Analyse Boring People Reduction Management Increase complexity and loss of supervision str ve-Forces-Analyse Business Plan accounting reading a balance sheet controlling negotiating with financial institutions legal problems professional experience in the field of the business managing employees creating team spirit negotiating with suppliers keeping inventory on hand Traditional descriptions of knowledge requirements for entrepreneurs
  10. 10. Source: Stiftung Entrepreneurship 2014 „Selbständig sein heißt, alles selber machen, und das ständig“
  11. 11. Source: Stiftung Entrepreneurship 2014 The counter-argument How can I judge somebody‘s qualification if I do not have the specialized knowledge of the subject in question?
  12. 12. Source: Faltin 2011 Business Management (or common sense?) • Use ressources economically • Organize efficiently • Admin correctly • Recognize warning signs
  13. 13. Source: Stiftung Entrepreneurship 2014 The time and attention that you need for standard business administration is better used for curiosity, awareness, recognition of new trends and, last not least, for leisure time and reflection
  14. 14. Source: Stiftung Entrepreneurship 2014 There are millions of masters of business administration, but only few masters of new concepts.
  15. 15. Source: Faltin 2011 Leaders do the right things, managers do things right Peter Drucker
  16. 16. Source: Faltin 2011 What are responsibilities of a manager And What should the entrepreneur do ?
  17. 17. Source: Stiftung Entrepreneurship 2014 not IN the business ! Working ON The business
  18. 18. Source: Stiftung Entrepreneurship 2014 The art and science of being a modern entrepreneur Awareness for new trends Recognizing new developments - in technology - in competition and market environment Creating new innovative concepts Managing their implementation Creating enthusiasm, curiosity, humor, a sense of joy, optimism in his or her company
  19. 19. Source: Faltin 2011 The New Paradigms of Entrepreneurship Entrepreneurship vs.Business Administration Starting up using components Concept-creative Startups
  20. 20. Source: Stiftung Entrepreneurship 2014 In the age of Internet the entrepreneur is more like an artist, like a composer, not a narrow-minded business nerd.
  21. 21. Source: Stiftung Entrepreneurship 2014 Video
  22. 22. Source: Stiftung Entrepreneurship 2014 Are you capable of building an industrial complex?
  23. 23. Source: Stiftung Entrepreneurship 2014 outsource secreterial services use service providers (for transport, storage, packaging, shipment) delegate accounting The entrepreneur as a composer
  24. 24. Business Administration Projektwerkstatt GmbH An example: the RatioDrink company Use components!
  25. 25. Source: Stiftung Entrepreneurship 2014 Entrepreneurship by components „The powerful Entrepreneur“ Almost no investment Almost no fixed costs There are costs only when sales occur From the beginning professional and highly efficient, virtual and global
  26. 26. Source: Stiftung Entrepreneurship 2014 Old Economy Gründen mit Komponenten
  27. 27. Source: Stiftung Entrepreneurship 2014 Re-Think your start-up / organization in components !
  28. 28. Source: Stiftung Entrepreneurship 2014 Can you be a component For other entrepreneurs ?
  29. 29. Source: Faltin 2011 The New Paradigms of Entrepreneurship Entrepreneurship vs. Business Administration Starting up using components Concept-creative Startups
  30. 30. Source: Stiftung Entrepreneurship 2014 Video
  31. 31. Source: Stiftung Entrepreneurship 2014 The term “concept-creative” refers to thoroughly elaborated, innovative concepts (in contrast to initial ideas). Such concepts are rare, not easily available
  32. 32. Source: Stiftung Entrepreneurship 2014 Over 200.000 customers 93% by word-of-mouth 20 employees Turnover in 2008: 8.5 m. Euro Biggest mail order tea house in Germany since 1995 Biggest importer of Darjeeling tea in the world since 1998 www.teekampagne.de
  33. 33. Source: Stiftung Entrepreneurship 2014 The Business Model: • Function, not convention • High-Tech, High-Touch (a virtual office with a personal secretary) As a result, the company has cost savings of 90% Operates more than 5000 offices 350 employees Successful from the start, despite difficult market environment www.ebuero.de
  34. 34. Source: Faltin 2011 Concept-creative Organizations: - Ratiodrink, E-buero, ePortrait, PaperC, Direktzu, Waschkampagne, Laktasekampagne - Ford, IKEA, Aldi - Google, Facebook, Skype, Twitter, YouTube - Greenpeace, Amnesty International, Foodwatch, Transparency International, WWF, Wikipedia
  35. 35. Source: Stiftung Entrepreneurship 2014 “Update an industry”
  36. 36. Source: Stiftung Entrepreneurship 2014 Criteria for an excellent business model 1. Secure a competitive edge 1. Have a concept how to deal with imitators (“me-too“ business models) 1. Prepare for technological obsolescence 1. Prepare for economic obsolescence
  37. 37. Source: Stiftung Entrepreneurship 2014 Criteria for a High Potential Entrepreneurial Design • Scalability • Simplicity • Minimize risk experimental pre-start intelligent prototyping
  38. 38. Source: Stiftung Entrepreneurship 2014 Most entrepreneurs succeed by pursuing ideas that are not only sound business opportunities but also fit with their personal criteria, desired life style and values Karl H. Vesper
  39. 39. Source: Faltin 2011 The New Paradigms of Entrepreneurship Entrepreneurship vs.Business Administration Starting up using components Concept-creative Startups
  40. 40. Source: Stiftung Entrepreneurship 2014 The Golden Opportunity Emphasize on entrepreneurship! (The production facilities are located in developing countries anyway)
  41. 41. Source: Stiftung Entrepreneurship 2014 The European Paradox Mountains of research findings and patents - but few people making use of it Ejermo and Kander, 2006, Audretsch, 2007
  42. 42. Source: Stiftung Entrepreneurship 2014 Questions? Pause
  43. 43. Source: Stiftung Entrepreneurship 2014 Entrepreneurship And Social Entrepreneurship
  44. 44. Source: Stiftung Entrepreneurship 2014 How are social entrepreneurs different from 'business' entrepreneurs ?
  45. 45. Source: Stiftung Entrepreneurship 2014 What has a social entrepreneur And A 'Business' entrepreneur' In common ?
  46. 46. Source: Stiftung Entrepreneurship 2014 Those driven by the pursuit of money only will not have a long enough breath (a prerequisite for successful entrepreneurs). Richard Olsen Founder of the Research Institute for Applied Economics, Switzerland
  47. 47. Source: Stiftung Entrepreneurship 2014 Create something original that stands out, something with a lasting value. Above all, you want to be proud of your product. Such was my business philosophy . Richard Branson
  48. 48. Source: Stiftung Entrepreneurship 2014 Go for a cause. Make meaning! Guy Kawasaki
  49. 49. Source: Stiftung Entrepreneurship 2014 We should build our understanding of social entrepreneurship on the strong tradition of entrepreneurship theory and research. Social entrepreneurs are one species in the genus entrepreneur. They are entrepreneurs with a social mission. Dees, Martin and Osberg, Boschee and McClurg, Alvord, Brown and Letts
  50. 50. Source: Faltin 2011 What can we learn from the field of 'Entrepreneurship' For ' Social Entrepreneurship'?
  51. 51. Source: Stiftung Entrepreneurship 2014 To be independent And self-sustainable!
  52. 52. Source: Stiftung Entrepreneurship 2014 Social Entrepreneurship is not: collect donations and spend them for good causes
  53. 53. Source: Stiftung Entrepreneurship 2014 Charity does not solve poverty. Moreover charity does sustain poverty, because it robs the entrepreneurial spirit of the poor. Muhammad Yunus
  54. 54. Source: Stiftung Entrepreneurship 2014 We are facing piles of problems, e.g.: climate change, shortage of industrial resources, peak oil, shortage of water, pollution, increasing inequality – to name just a few
  55. 55. Source: Stiftung Entrepreneurship 2014 What Problems Are you working on ?
  56. 56. Source: Stiftung Entrepreneurship 2014 Let‘s be realistic: Will our governments, our existing institutions and big companies solve these problems?
  57. 57. Source: Stiftung Entrepreneurship 2014 We should no longer leave the economic field to conventional business people only. They are not up to the challenges we face.
  58. 58. Source: Stiftung Entrepreneurship 2014 If people understood economics, there would be a revolution by tomorrow. Karl MarxHenry FordHenry Ford 2011based on Henry Ford
  59. 59. Source: Stiftung Entrepreneurship 2014 We need new types of entrepreneurs – call them social, environmental, political or even cultural entrepeneurs – that create new avenues and solutions
  60. 60. Source: Stiftung Entrepreneurship 2014 We need „creative destruction“ of an economy / society which is driven by greed, unsustainable use of resources and exploitation of the weakness of people and their sense of inferiority.
  61. 61. Source: Faltin 2011 The New Paradigms of Entrepreneurship Entrepreneurship vs.Business Administration Starting up using components Concept-creative Startups
  62. 62. Source: Stiftung Entrepreneurship 2014 Home Assignment 'Entrepreneurship Training': Make your holidays, 'Verein', sport, daily activities . . . More entrepreneurial !
  63. 63. Source: Stiftung Entrepreneurship 2014 Questions?
  64. 64. Source: Stiftung Entrepreneurship 2014 Entrepreneurial Design for Social Entrepreneurs - From an initial idea to a sustainable, concept- creative business model -
  65. 65. Source: Faltin 2011 The New Paradigms of Entrepreneurship Entrepreneurship vs.Business Administration Starting up using components Concept-creative Startups
  66. 66. Source: Faltin 2011 Opening the idea Methoden zur Erarbeitung des Entrepreneurial Design Try new sightlines search for analogies and re-combine Tune in with your personality „Tuning in with society‘s values“
  67. 67. Source: Stiftung Entrepreneurship 2014 Method: Win-Win Situations Principle: „Connect Exhibitionists and Voyeurists“
  68. 68. Source: Stiftung Entrepreneurship 2014 Classical Example: Trade
  69. 69. Source: Stiftung Entrepreneurship 2014 Example: Turkish Supermarket Success through integration : • Language • Understanding the culture of the customers • Sympathy through own identity • . . .
  70. 70. Source: Stiftung Entrepreneurship 2014 Trading platform for Israelis and Palaestins
  71. 71. Source: Stiftung Entrepreneurship 2014 Method: Where are weakness, There are also strenghts. Use the strenghts!
  72. 72. Source: Stiftung Entrepreneurship 2014 Example: Dialog im Dunkeln Slum-Kids in Manila . . .
  73. 73. Source: Stiftung Entrepreneurship 2014 Method: Fullfilling more than one function Example: Opening hours Nature naturally fullfills more than one function!
  74. 74. Source: Stiftung Entrepreneurship 2014 Example: Opening Hours • Selling Matraces = Hotel • Sympathy for the entrepreneur . . .
  75. 75. Source: Stiftung Entrepreneurship 2014 Method: Turn work into fun
  76. 76. Source: Stiftung Entrepreneurship 2014 Example: Re-think a farm Earthworm / Guppies farming own land harvest together Sell vegetables from other farms Use the magic of the night Use Events Artists in Residence meeting with friends vs. Selling ...
  77. 77. Source: Stiftung Entrepreneurship 2014 Method: „Use less“ E. g.: Product package of coffee . . .
  78. 78. Source: Stiftung Entrepreneurship 2014 Method: “Connectivity” Modern societies cause loneliness Understand people´s desire for connectivity.
  79. 79. Source: Stiftung Entrepreneurship 2014
  80. 80. Source: Stiftung Entrepreneurship 2014
  81. 81. Source: Stiftung Entrepreneurship 2014
  82. 82. Source: Stiftung Entrepreneurship 2014 Questions? Pause
  83. 83. Source: Faltin 2011 Opening the idea Methoden zur Erarbeitung des Entrepreneurial Design Try new sightlines search for analogies and re-combine Tune in with your personality „Tuning in with society‘s values“
  84. 84. Source: Stiftung Entrepreneurship 2014 „Open the idea“ Example: Café Try new sightlines: • Economically efficienctly • ecological • Health • Connectedness
  85. 85. Source: Stiftung Entrepreneurship 2014 Thinking as an entrepreneur
  86. 86. Source: Stiftung Entrepreneurship 2014 What does it need to think entrepreneurial ?
  87. 87. Source: Stiftung Entrepreneurship 2014 All children are born artists, the problem is to remain an artist as we grow up. Pablo Picasso
  88. 88. Source: Stiftung Entrepreneurship 2014 The trick is creativity, simplicity and vision. Take a different view of the world. Be curious, learn and free yourself of conventional rules.
  89. 89. Source: Stiftung Entrepreneurship 2014 Finding your passion changes everything. Ken Robinson
  90. 90. Source: Stiftung Entrepreneurship 2014 Modern neurobiology states that dealing with passion increases the capacity and ability of the brain (by producing new synapses and additional connections between them ). Gerald Huether, a world-renowned neurobiologist, University of Goettingen
  91. 91. Source: Stiftung Entrepreneurship 2014 People often overlook their special talents. Because it’s so easy for them to do it – no endeavour, no hard work necessary.
  92. 92. Source: Stiftung Entrepreneurship 2014 Try to get the clarity and power to understand your own potentials as early in life as possible
  93. 93. Source: Stiftung Entrepreneurship 2014 Do good for society. Get recognition and reputation. Emphasize on your strengths. Delegate what you don‘t like to do. Balance business and pleasure. Work and life. And that‘s the way to become economically successful.
  94. 94. Source: Stiftung Entrepreneurship 2014 The essence of entrepreneurship is being different. Marc Casson
  95. 95. Source: Stiftung Entrepreneurship 2014 The real act of discovery consists not in finding new lands but in seeing with new eyes. Marcel Proust
  96. 96. Source: Stiftung Entrepreneurship 2014 Societies are based on cultural values. To be a really successful entrepreneur, your business ideas have to tune in with society‘s values
  97. 97. Source: Faltin 2011 We had no money - thus we needed to be creative! Richard Branson Business is like Rock´n´Roll
  98. 98. Source: Faltin 2011 The first idea usually is not the one that you bring to market. You need a hundred ideas to get one that makes an impact Glorianna Davenport
  99. 99. Source: Faltin 2011 Tolerate Ambiguity
  100. 100. Source: Stiftung Entrepreneurship 2014 You are a fool – until your idea becomes a success Mark Twain
  101. 101. Source: Faltin 2011 Business ist wie Rock‘n Roll Buchtitel von Richard Branson‘s Autobiographie
  102. 102. Source: Faltin 2011 Das Berater-Dilemma
  103. 103. Source: Faltin 2011 Find sparringspartners!
  104. 104. Go for the proof of concept first. Only thereafter, start investing in big scale
  105. 105. Source: Stiftung Entrepreneurship 2014 Rapid Prototyping: Example: Häkel-Oma ( High-tech with High-touch)
  106. 106. Source: Stiftung Entrepreneurship 2014 Economics of attentation
  107. 107. Source: Faltin 2011 Create something original that stands out, something with a lasting value. Above all, you want to be proud of your product. Such was my business philosophy . Richard Branson
  108. 108. Source: Stiftung Entrepreneurship 2014 Find ways of attracting attention In modern society the media are the key for attracting attention; paid advertisements are a poor and expensive substitute. Use your personal background, the innovative aspects of your product Play as unconventional, as unorthodox as possible
  109. 109. Source: Stiftung Entrepreneurship 2014 The message: You can go to the beach we will take care of your office
  110. 110. Source: Stiftung Entrepreneurship 2014 The modern entrepreneur has more in common with an artist than with the traditional business manager
  111. 111. Source: Stiftung Entrepreneurship 2014 Economics of authenticity
  112. 112. Source: Stiftung Entrepreneurship 2014 Link to the people, avoid the context of commercialization
  113. 113. Source: Stiftung Entrepreneurship 2014 Don‘t sell products. But if you stubbornly believe in products, use them as transmitters for experience, for a story
  114. 114. Source: Stiftung Entrepreneurship 2014 Link to the traditional roots, the authenticity, the cultural heritage, the contemporary arts There are incredible values to discover that work in your favor: the vitality, the vibrancy, the spiritedness, the magic.
  115. 115. Source: Stiftung Entrepreneurship 2014 Just to remind us: Culture is the base of everything
  116. 116. Source: Stiftung Entrepreneurship 2014 Economics of sympathy
  117. 117. Source: Stiftung Entrepreneurship 2014 Let‘ s allow our ideas to shape a better world
  118. 118. Source: Stiftung Entrepreneurship 2014 Join the Entrepreneurship Campus www.entrepreneurship.de Entrepreneurship Summit 11. & 12. Oktober 2014
  119. 119. Source: Stiftung Entrepreneurship 2014 Entrepreneurship Education
  120. 120. Source: Stiftung Entrepreneurship 2014 How can we prepare for an almost unpredictable future?
  121. 121. Source: Stiftung Entrepreneurship 2014 Education is about empowerment
  122. 122. Source: Stiftung Entrepreneurship 2014 Education is not about teaching, subjects, – it’s first and foremost about empowerment of peop
  123. 123. Source: Stiftung Entrepreneurship 2014 If education is about empowerment, lecturing is not enough. It even can alienate students.
  124. 124. Source: Stiftung Entrepreneurship 2014 Subjects are stored in human memory when they are used. Hence, subjects need to be applicable, fitted into students abilities and social environments so that they can apply it in the present or near future (in contrast to applying it in a distant future).
  125. 125. Source: Stiftung Entrepreneurship 2014 I noted that numbers made sense to me only when I was confronting concrete problems. Suddenly, those numbers came to life, it was fun working with them. In school, though, I used to be a real idiot as far as math was concerned. Richard Branson
  126. 126. Source: Stiftung Entrepreneurship 2014 We are born with powers of imagination, intelligence, feeling, intuition, spirituality, and of physical and sensory awareness. Our educational systems use only a fraction of these powers. Ken Robinson
  127. 127. Source: Stiftung Entrepreneurship 2014 All children are born artists, the problem is to remain an artist as we grow up. Pablo Picasso
  128. 128. Source: Stiftung Entrepreneurship 2014 Ken Robinson – Changing Education Paradigms
  129. 129. Source: Stiftung Entrepreneurship 2014 Ken Robinson – Changing Education Paradigms
  130. 130. Source: Stiftung Entrepreneurship 2014 Quite a number of students can think well only when they are moving their bodies.
  131. 131. Source: Stiftung Entrepreneurship 2014 Elvis Presley was not allowed to join his school‘s choir. The teachers said, his voice would ruin the sound.
  132. 132. Source: Stiftung Entrepreneurship 2014 Paul McCartney always loved music, but he never enjoyed music lessons at school.
  133. 133. Source: Stiftung Entrepreneurship 2014 Learning environments are at their best when they arouse imagination and passion.
  134. 134. Source: Stiftung Entrepreneurship 2014 Finding your passion changes everything. Ken Robinson
  135. 135. Source: Stiftung Entrepreneurship 2014 Modern neurobiology states that dealing with passion increases the capacity and ability of the brain (by producing new synapses and additional connections between them ). Gerald Huether, a world-renowned neurobiologist, University of Goettingen
  136. 136. Source: Stiftung Entrepreneurship 2014 People often overlook their special talents. Because it’s so easy for them to do it – no endeavour, no hard work necessary.
  137. 137. Source: Stiftung Entrepreneurship 2014 It should be a prime task of the educational system to help to recognize and nurture those talents.
  138. 138. Source: Stiftung Entrepreneurship 2014 The authorities still believe that the traditional academic curricula are essential for economic growth, for competitiveness and to help students get jobs.
  139. 139. Source: Stiftung Entrepreneurship 2014 mathematics the sciences the languages the arts humanities They believe in the old hierarchy of subjects
  140. 140. Source: Stiftung Entrepreneurship 2014 Ken Robinson – Changing Education Paradigms
  141. 141. Source: Stiftung Entrepreneurship 2014 The concept of so-called modern education was created in the age of the industrial revolution.
  142. 142. Source: Stiftung Entrepreneurship 2014 Ken Robinson – Changing Education Paradigms It’s a too narrow paradigm and doesn’t prepare for the future.
  143. 143. Source: Stiftung Entrepreneurship 2014 The European Paradox Mountains of research findings and patents - but few people making use of it Ejermo and Kander, 2006, Audretsch, 2007
  144. 144. Source: Stiftung Entrepreneurship 2014 Only 20% of our start-ups survive the first 5 years. Glorianna Davenport MIT Media Laboratory
  145. 145. Source: Stiftung Entrepreneurship 2014 Don‘t emphasize too much on technology! Glorianna Davenport
  146. 146. Source: Stiftung Entrepreneurship 2014 The development of an innovative entrepreneurial idea is, above all, a creative process. Its engineering is comparable to an artistic creative act. Karl H. Vesper
  147. 147. Source: Stiftung Entrepreneurship 2014 An empty sack cannot stand upright. Benjamin Franklin
  148. 148. Source: Stiftung Entrepreneurship 2014 There are thousands of masters of business administration, but only a few masters of new concepts.
  149. 149. Source: Stiftung Entrepreneurship 2014 Business is like Rock‘n Roll Title of Richard Branson‘s autobiography
  150. 150. Source: Stiftung Entrepreneurship 2014 Entrepreneurs are the poets and packagers of new ideas. Bob Schwartz
  151. 151. Source: Stiftung Entrepreneurship 2014 Don’t create conformity. It will not be a helpful qualification to master the future.
  152. 152. Source: Stiftung Entrepreneurship 2014 Ken Robinson – Changing Education Paradigms
  153. 153. Source: Stiftung Entrepreneurship 2014 We need to establish an educational system that nurtures creativity rather than undermines it.
  154. 154. Source: Stiftung Entrepreneurship 2014 It is essential to personal fulfilment to live a life that has purpose and meaning where you dwell in your own individuality and celebrate the person that you are. Ken Robinson
  155. 155. Source: Stiftung Entrepreneurship 2014 Thank you for your attention
  156. 156. Source: Stiftung Entrepreneurship 2014 Old Economy Gründen mit Komponenten

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