Social Entrepreneurship for Young Entrepreneurs

Source: Stiftung Entrepreneurship 2014
Entrepreneurship
And
Social Entrepreneurship

Source: Faltin 2011
Agenda:

Wednesday:

Entrepreneurship – New Paradigms

Social Entrepreneurship

Thursday:

Thinking as an entrepreneur

How to develop an entrepreneurial idea

What do you need
to become
an entrepreneur ?

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

Source: Faltin 2011
Our
'Brains
Beats
Capital'
Method

Source: Faltin 2011
The New Paradigms of Entrepreneurship
Entrepreneurship vs.Business Administration
Starting up using components
Concept-creative Startups

Very few people have the brains for both:
for entrepreneurship as well as
for business administration
Focus on Entrepreneurship,
Not Business Administration

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

„Selbständig sein heißt,
alles selber machen,
und das ständig“

The counter-argument
How can I judge somebody‘s qualification
if I do not have the specialized knowledge
of the subject in question?

Source: Faltin 2011
Business Management
(or common sense?)
• Use ressources economically
• Organize efficiently
• Admin correctly
• Recognize warning signs

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

There are millions of masters of business
administration,
but only few masters of new concepts.

Source: Faltin 2011
Leaders do the right things,
managers do things right
Peter Drucker

Source: Faltin 2011
What are responsibilities of a manager
And
What should the entrepreneur do
?

not
IN
the business !
Working
ON
The business

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

In the age of Internet
the entrepreneur is more
like an artist, like a composer,
not a narrow-minded business nerd.

Video

Are you capable of
building an industrial complex?

outsource
secreterial services
use service providers
(for transport, storage,
packaging, shipment)
delegate
accounting
The entrepreneur as a composer

Business
Administration
Projektwerkstatt GmbH
An example: the RatioDrink company
Use
components!

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

Old Economy
Gründen mit Komponenten

Re-Think
your start-up / organization
in components
!

Can you be
a component
For other entrepreneurs
?

Source: Faltin 2011
The New Paradigms of Entrepreneurship
Entrepreneurship vs. Business Administration
Starting up using components
Concept-creative Startups

The term
“concept-creative”
refers to thoroughly elaborated, innovative
concepts (in contrast to initial ideas).
Such concepts are rare, not easily available

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

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

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

“Update an industry”

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

Criteria for a High Potential Entrepreneurial Design
• Scalability
• Simplicity
• Minimize risk
experimental pre-start
intelligent prototyping

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

The Golden Opportunity
Emphasize on entrepreneurship!
(The production facilities are located in developing countries anyway)

The European Paradox
Mountains of research findings and patents
- but few people making use of it
Ejermo and Kander, 2006,
Audretsch, 2007

Questions?
Pause

Entrepreneurship
And
Social
Entrepreneurship

How are
social entrepreneurs
different from
'business' entrepreneurs
?

What has a
social entrepreneur
And
A 'Business' entrepreneur'
In common
?

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

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

Go for a cause.
Make meaning!
Guy Kawasaki

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

Source: Faltin 2011
What can we learn
from the field of 'Entrepreneurship'
For '
Social Entrepreneurship'?

To be independent
And
self-sustainable!

Social Entrepreneurship is not:
collect donations
and spend them for good causes

Charity does not solve poverty.
Moreover charity does sustain poverty,
because it robs the entrepreneurial spirit of the poor.
Muhammad Yunus

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

What
Problems
Are
you
working
on
?

Let‘s be realistic:
Will our governments,
our existing institutions and big companies
solve these problems?

We should no longer leave the economic field
to conventional business people only.
They are not up to the challenges we face.

If people understood economics,
there would be a revolution by tomorrow.
Karl MarxHenry FordHenry Ford 2011based on Henry Ford

We need new types of entrepreneurs –
call them social, environmental, political
or even cultural entrepeneurs –
that create new avenues and solutions

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.

Home Assignment
'Entrepreneurship Training':
Make your holidays, 'Verein', sport, daily activities
. . .
More entrepreneurial
!

Questions?

Entrepreneurial Design
for
Social Entrepreneurs
- From an initial idea to a sustainable, concept-
creative business model -

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“

Method:
Win-Win Situations
Principle:
„Connect Exhibitionists and Voyeurists“

Classical Example:
Trade

Example:
Turkish Supermarket
Success through integration :
• Language
• Understanding the culture of the customers
• Sympathy through own identity
• . . .

Trading platform for Israelis and Palaestins

Method:
Where are weakness,
There are also strenghts.
Use the strenghts!

Example:
Dialog im Dunkeln
Slum-Kids in Manila
. . .

Method:
Fullfilling more than one function
Example: Opening hours
Nature naturally fullfills more than one function!

Example: Opening Hours
• Selling Matraces = Hotel
• Sympathy for the entrepreneur
. . .

Method:
Turn work into fun

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
...

Method: „Use less“
E. g.: Product package of coffee
. . .

Method: “Connectivity”
Modern societies cause loneliness
Understand people´s desire for connectivity.

„Open the idea“
Example:
Café
Try new sightlines:
• Economically efficienctly
• ecological
• Health
• Connectedness

Thinking
as an
entrepreneur

What does it need
to think
entrepreneurial ?

All children are born artists,
the problem is to remain an artist as we grow up.
Pablo Picasso

The trick is creativity, simplicity and vision.
Take a different view of the world.
Be curious, learn and free yourself
of conventional rules.

Finding your passion changes everything.
Ken Robinson

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

People often overlook their special talents.
Because it’s so easy for them to do it
– no endeavour, no hard work necessary.

Try to get the clarity and power
to understand your own potentials
as early in life as possible

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.

The essence of entrepreneurship
is being different.
Marc Casson

The real act of discovery
consists not in finding new lands
but in seeing with new eyes.
Marcel Proust

Societies are based on cultural values.
To be a really successful entrepreneur,
your business ideas have to tune in
with society‘s values

Source: Faltin 2011
We had no money -
thus we needed to be creative!
Richard Branson
Business is like Rock´n´Roll

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

Source: Faltin 2011
Tolerate Ambiguity

You are a fool –
until your idea becomes
a success
Mark Twain

Source: Faltin 2011
Business ist wie Rock‘n Roll
Buchtitel von Richard Branson‘s Autobiographie

Source: Faltin 2011
Das Berater-Dilemma

Source: Faltin 2011
Find sparringspartners!

Go for the
proof of concept first.
Only thereafter,
start investing in big scale

Rapid Prototyping:
Example: Häkel-Oma
( High-tech with High-touch)

Economics of attentation

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

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

The message:
You can go to the beach
we will take care of your office

The modern entrepreneur has more in common
with an artist
than with the traditional business manager

Economics of authenticity

Link to the people,
avoid the context of commercialization

Don‘t sell products.
But if you stubbornly believe in products,
use them as transmitters for experience,
for a story

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.

Just to remind us:
Culture is the base of everything

Economics of sympathy

Let‘ s allow our ideas
to shape a better world

Join the Entrepreneurship Campus
www.entrepreneurship.de
Entrepreneurship Summit
11. & 12. Oktober 2014

Entrepreneurship
Education

How can we prepare
for an almost unpredictable future?

Education is about empowerment

Education is not about teaching, subjects,
– it’s first and foremost about empowerment of peop

If education is about empowerment,
lecturing is not enough.
It even can alienate students.

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).

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

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

Ken Robinson – Changing Education Paradigms

Quite a number of students can think well only
when they are moving their bodies.

Elvis Presley was not allowed to join
his school‘s choir.
The teachers said,
his voice would ruin the sound.

Paul McCartney always loved music,
but he never enjoyed music lessons at school.

Learning environments are at their best
when they arouse imagination and passion.

It should be a prime task of the educational system
to help to recognize
and nurture those talents.

The authorities still believe
that the traditional academic curricula are essential
for economic growth,
for competitiveness and to help students get jobs.

mathematics
the sciences
the languages
the arts
humanities
They believe in the old
hierarchy of subjects

The concept of so-called modern education
was created in the age of the industrial revolution.

Ken Robinson – Changing Education Paradigms
It’s a too narrow paradigm
and doesn’t prepare for the future.

Only 20% of our start-ups survive the first 5 years.
Glorianna Davenport
MIT Media Laboratory

Don‘t emphasize too much on technology!
Glorianna Davenport

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

An empty sack
cannot stand upright.
Benjamin Franklin

There are thousands of masters
of business administration,
but only a few masters
of new concepts.

Business is like Rock‘n Roll
Title of Richard Branson‘s autobiography

Entrepreneurs are the poets
and packagers of new ideas.
Bob Schwartz

Don’t create conformity.
It will not be a helpful qualification to master the future.

We need to establish an educational system
that nurtures creativity rather than undermines it.

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

Thank you for your attention

Social Entrepreneurship for Young Entrepreneurs

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