Download as PDF, PPTX
Uploaded byMaRS Discovery District
Different Types of Entrepreneurship
The document provides an overview of various aspects of entrepreneurship, including self-assessment, types of business structures, and forms of financing available for both traditional and social ventures. It discusses the characteristics and examples of consulting, services, products, and the sharing economy, along with the importance of social enterprises. Additionally, it covers financing options such as crowdfunding, debt versus equity, and the role of angel investors and venture capital in supporting business growth.
More Related Content
Similar to Different Types of Entrepreneurship
Different Types of Entrepreneurship
- 1. Developing talent • Growing ventures • Opening markets Our Future Ma9ers “ 08 October 2014 Different Types of Entrepreneurship
- 2. Developing talent • Growing ventures • Opening markets Visit us at marsdd.com Different Types of Entrepreneurship Entrepreneurship 101 P R E S E N T E D B Y A L L Y S O N H E W I T T, S E N I O R F E L L O W, S O C I A L I N N O V A T I O N & D I R E C T O R , S I G @ M A R S A N D K E R R I G O L D E N , P A R T N E R , J O L T F U N D A N D D I R E C T O R , U R B A N F L A T S T O R O N T O O C T O B E R 2 0 1 4
- 3. Developing talent • Growing ventures • Opening markets Our Future Ma9ers “ What we will cover today: § Self Assessment § Corporate Structure Opons - Connuum from Charity to For Profit § Types of Businesses: both tradional and social ventures - Consulng - Services - Products - The Sharing Economy - Scale and Profiles for Business Types § Forms of Financing § Sources of Financing
- 4. Developing talent • Growing ventures • Opening markets Our Future Ma9ers SELF ASSESSMENT pg 4 What is my business structure? - For profit? - Not-‐for-‐profit? - Co-‐operave? - Hybrid Why do I want to start this business? - What is my movaon? Do I have the skills/ aptude to be an entrepreneur? - Am I comfortable taking risks? - Is this something I feel I have to do? What resources do I need? - Basement or corporate office? - Shared spaces/incubators? How do I fit into the rest of the world? - Is my product and/or service unique? - Have others tried this before?
- 5. Developing talent • Growing ventures • Opening markets Our Future Ma9ers Return Con0nuum Grant Funded Non-‐Profit (Charity) RETURN Social (Charitable) Financial (Commercial) Tradi=onal Business Revenue Genera=ng NFP (Social Enterprise) Social Purpose Business Blended Value Space Social Ventures Coopera=ves
- 6. Developing talent • Growing ventures • Opening markets Our Future Ma9ers pg 6 BLURRING OF THE SECTORS
- 7. Developing talent • Growing ventures • Opening markets Our Future Ma9ers September 2014 SOCIAL ENTERPRISE
- 8. Developing talent • Growing ventures • Opening markets Our Future Ma9ers September 2014 SOCIAL PURPOSE BUSINESS
- 9. Developing talent • Growing ventures • Opening markets Our Future Ma9ers CONSULTING • Key Characteriscs – Mulple parcipants, diverse focus, variable size, leverage core assets to provide access to market and advice • Examples – Consulng: McKinsey, Bain, Deloi9e, IBM, Hatch – Aperio, Purpose Capital • Benefits & Risks of Model – Low capital costs and minimal set-‐up – Leverages specialized knowledge/ experience – Liability insurance, can be difficult to build/scale
- 10. Developing talent • Growing ventures • Opening markets Our Future Ma9ers SERVICES • Key Characteriscs – Speciality business serving consumers or other businesses • Examples • Benefits & Risks of Model – Online sofware as a service – Infrastructure costs may be high: inial development, servers, support, staffing
- 11. Developing talent • Growing ventures • Opening markets Our Future Ma9ers SERVICES Tradional Courier Services
- 12. Developing talent • Growing ventures • Opening markets Our Future Ma9ers SERVICES Social Enterprise Courier Services
- 13. Developing talent • Growing ventures • Opening markets Our Future Ma9ers PRODUCTS pg 13 • Key Characteriscs – Tangible offering (consumer products, pharmaceucals, equipment or devices) • Examples • Benefits & Risks of Model – Higher development costs; markeng – Sales and distribuon model – Producon costs high, outsource? – Potenal for scale – huge – Trends: collaborave consumpon, wearable technology
- 14. Developing talent • Growing ventures • Opening markets Our Future Ma9ers SOCIAL ENTERPRISE PRODUCTS pg 14
- 15. Developing talent • Growing ventures • Opening markets Our Future Ma9ers SHARING ECONOMY pg 15
- 16. Developing talent • Growing ventures • Opening markets Our Future Ma9ers EMPLOYER BUSINESSES – 1.1M strong pg 16 Source: Sta=s=cs Canada
- 17. Developing talent • Growing ventures • Opening markets Our Future Ma9ers SCALE AND PROFILE OF BUSINESS TYPES • Lifestyle business – Part-‐me Yoga Instructor – Ofen a hobby of the owner • SMEs – “engine of the economy” – Founded 2009, employs 5+ – Profitable, Growth 10-‐15% per year • Growth Companies -‐ Hootsuite – Founded 2008, 500 employees and growing – 10M+ users, including 744 of Fortune 1000 • VC/PE study esmated 13,000 high growth companies in Canada pg 17
- 18. Developing talent • Growing ventures • Opening markets Our Future Ma9ers FORMS OF FINANCING • Forms of Financing – Bootstrap -‐ self-‐fund and reinvest all profits for growth – Crowdfunding – for product pre-‐orders, films, games, projects -‐ Crowdfunding – tailored for causes and charies – Fundraising -‐ grants/ foundaons/ government funding/ corporate sponsorship/ members (co-‐ops) pg 18
- 19. Developing talent • Growing ventures • Opening markets Our Future Ma9ers September 2014 DEMONSTRATE IMPACT
- 20. Developing talent • Growing ventures • Opening markets Our Future Ma9ers DEBT AND EQUITY pg 20 • A quick primer on debt versus equity: q Debt: • gets paid back first, before any dividends get paid • secured by assets (company, your personal) • once debt is repaid (with interest of course), lender gets nothing else q Equity: • never has to be “repaid” • keeps on “paying” forever • you now have an investor partner who is in this, like you, for the long haul
- 21. Developing talent • Growing ventures • Opening markets Our Future Ma9ers MOBILE APP EXAMPLE You need $40K to build/market a new iOS app You have a grant for $10K so funding needed is $30K Profit Debt 50:50 Equity Low on chart $10K lender loses $20K* partner loses $25K you get $0K & owe $20K you get $5K Featured appis $30K lender is even+ partner loses $15K you make $0K you make $15K Top of Chart $200K lender is even+ partner makes $70K you make $170K you make $100K Granng agency reports your success!
- 22. Developing talent • Growing ventures • Opening markets Our Future Ma9ers SOURCES OF FINANCING pg 22 The turkey principle
- 23. Developing talent • Growing ventures • Opening markets Our Future Ma9ers SOURCES OF FINANCING • Angels (aka high net worth individuals) – Generally like to invest in areas that they have worked in or are comfortable with – Can add valuable hands-‐on experience – h9p://www.angelinvestor.ca/ • Accelerator Programs – Supported by angels and VC funds – Impact8 for social ventures • Venture Capital Funds – Different funds invest at different stages in the growth of a company – Most funds also specialize in type of investment – h9p://www.cvca.ca/
- 24. Developing talent • Growing ventures • Opening markets Our Future Ma9ers pg 24 SOCIAL FINANCE
- 25. Developing talent • Growing ventures • Opening markets Our Future Ma9ers SVX – SOCIAL VENTURE CONNEXION pg 25
- 26. Developing talent • Growing ventures • Opening markets Our Future Ma9ers SOURCES OF FINANCING • Proof of Principle / Idea to Innovaon – www.ResearchNet.ca – www.nserc-‐crsng.gc.ca/index_eng.asp – www.cmf-‐fmc.ca/funding-‐programs – www.oce-‐ontario.org/programs – h9p://coralcea.ca/ • NRC -‐ IRAP – h9p://irap-‐pari.nrc-‐cnrc.gc.ca/main_e.html • Foundaons: – Ontario Trillium Foundaon -‐ www.trilliumfoundaon.org – JW McConnell Family Foundaon -‐ h9p://www.mcconnellfoundaon.ca/en – Gates Foundaon – www.gatesfoundaon.org – Imagine Canada -‐ h9p://www.imaginecanada.ca/node/22 pg 26
- 27. Developing talent • Growing ventures • Opening markets Our Future Ma9ers September 2014
- 28. Developing talent • Growing ventures • Opening markets Our Future Ma9ers HOW TO CONTACT US: Allyson Hewi9, ahewi9@marsdd.com Twi9er: @AllysonHewi9 Kerri Golden, kgolden@marsdd.com Twi9er: @KerriGolden THANK YOU! B E C A U S E T H E F U T U R E M A T T E R S September 2014 INNOVATION