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Building a curriculum for the entrepreneur ...
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Subject Module - Elective CIAKL II - Class 01


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Subject Module - Elective CIAKL II - Class 01

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Subject Module - Elective CIAKL II - Class 01

  2. 2. EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES 2 INTRODUCTION Building a curriculum for the entrepreneur in the arts and film Manuel José Damásio, Universidade Lusófona de Humanidades e Tecnologias and CIAKL Project leader a) Principles of entrepreneurship education for the arts and media To start thinking of a curriculum, course development or subject molding in the realm of entrepreneurship for the arts and film we must address three specific needs: 1. The need for trainers/teachers in the domain of the arts and film to have access to deeper knowledge and skills dealing with the more business oriented aspects of entrepreneurship training and project management 2. The need for teachers and schools in this area to share and disseminate amongst broader audiences each one of their “best kept secrets” on how they nourish creativity or excel some of their trainers and trainees to become entrepreneurs, by this trying to identify the traces and good practices that indicate the foundational and conditional aspects of that outcomes 3. The need for entrepreneurship training and mindset to open itself to other disciplines either than business Entrepreneurship is almost always situated within the domain of business and involves some type of market exchange, giving it immediate economic significance. The arts and film, on the other side, have always somehow been regarded as field untouched by economic reasoning, with a clear lack of specific entrepreneurship oriented skills being present in many of curriculums in this area. Our proposal must though focus on the opportunity seeking mindset that molds artistic training and creativity as a foundational aspect upon which entrepreneurial skills can be built on, while at the same time seeks to link entrepreneurship learning in the realms of the arts with media, not only as a training and teaching discipline, but also as a societal framework that can help in designing new entrepreneurial approaches. Entrepreneurship programs are growing at an astonishing pace. When discussing actual classes and curricula, however, entrepreneurship quickly and inexorably becomes conflated with typical business offerings. There is then a need to renovate the teaching of entrepreneurship in non-business oriented disciplines by integrating entrepreneurship within the study of art itself via a strong focus on both auxiliary case studies and use scenarios, rather than use the entrepreneurial approach merely as a means to market a good or service. This approach will not only introduce or reinforce entrepreneurship competences into teachers, students and schools where they are lacking, but also promote the bridging of the entrepreneurial nature of artistic practice with the competences needed to transform those opportunities into valuable outcomes.
  3. 3. EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES 3 It’s is a challenge to understand how entrepreneurship can be integrated into arts courses without turning them into business courses. Moreover, though there is widespread desire among entrepreneurship aficionados to claim that entrepreneurship involves more than just business skills, to date, entrepreneurship has been somehow imprisoned within a business context largely because the subject matter has been mostly governed by the pedagogy and objectives of business schools. By claiming that entrepreneurship is a tangible, practical manifestation of a particular type of sensibility, our proposal seeks to not only encompass entrepreneurship economic ramifications in the fields of arts and media learning, but also to extend the ability of entrepreneurship teachers in these areas to engage with social discourse—to develop and express personal identity by influencing larger social contexts. Our proposal situates entrepreneurship within the academy, and tries to legitimate the practical, material dimension of the discipline to the degree that entrepreneurship shares the values of the arts: commitment to self-expression, debate, creativity, problem solving and project development, and the ongoing articulation of the mutuality of social interaction and personal identity. Following Venkataraman (1997), we define entrepreneurship broadly as the discovery, evaluation, and utilization of future goods and services. Despite this common definition, and to the detriment of discipline-based scholarship, the body of entrepreneurship research is stratified, eclectic, and divergent. The field of entrepreneurship generates many theories and frameworks and the bridging between its approaches and those of other areas are sometimes fuzzy and confusing. But, in a society searching for new ways of thinking and promoting its sustainability and growth, the entrepreneur strikes out as someone who brings about innovations, which then creates real development in the economy. But more than a definition of entrepreneurship, one of the crucial aspects of entrepreneurship training is the understanding of the forces that lead us to an entrepreneurial path. But strangely and at the same time, maybe because we are dealing with vocational non-business oriented disciplines, entrepreneurship training is lacking in most of the “creativity driven” courses and degrees in Europe, a fact that calls for a renovated approach that can bridge the gap between these two spaces of applied knowledge. The past 25 years of focus on entrepreneurship education has presented significant challenges for teachers and professors to create curricula and methods that meet or surpass student expectations. Students who enrol in entrepreneurship courses seek avenues to express latent creativity and innovativeness. If the vanguards in the beginnings of the XX century had already taken an important step towards integrating media typically not artistic, focusing on elements of everyday life - the best known case is undoubtedly the ready-mades of Marcel Duchamp, with the advent of television in the 30 ‘s and its generalization in the following decades, with the invention of video recorders in 1956 and especially with the advent of the microprocessor in the 70's, as
  4. 4. EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES 4 well as the marketing of personal computers in the late 70's and 80's, the art and artists begun to progressively abandon the traditional means, and started to exercise their creative activity taking as input the new technological tools. This development came to put into play the very definition of art and artistic activity, and announced the partial collapse of the institutions that were engaged in classical art, besides obviously also implying changes in the associated learning process. The Fine arts founded on the expertise of the hand and tied to the representation of reality, begun to give way to new forms of creation. With the advent of digital technologies and artistic practices resulting from technological means, art is separated from its own tradition, its traditional references of the real or of the concept, transformed. Today’s artistic practice is largely substantiated in the media, and their relevant place in today’s production deserves no questioning. New opportunities have aroused for all artistic practices to enter the field of media communication. In fact, the field of applicability of art is no longer the aesthetics or the theory of art, but media practice, that although backed by the historical forms of taste, points to new processes of referential construction that open possibilities that allow us to affirm that when teaching entrepreneurship as an activity strongly molded by the role opportunity discovery entails, the fields of art and the field of the media training point to the same context and horizons. Entrepreneurial inclinations also influence artistic, educational, or personal decisions, even when no finances are involved. It’s a type of problem solving and opportunities seeking. Entrepreneurship equals creativity—as much an attitude as it is a practice that involves business type skills. Having this in mind, our work started with the definition of the requisites for the training activities to be developed:  Business skills. What are the skills that artists and filmmakers can benefit from in their work?  Creativity. Entrepreneurship means creativity. How can we enhance that creativity typical of the arts and media conceptual process within entrepreneurial activities?  Stand out. Creative entrepreneurs have an edge on those who have simply pursued a normal path. How can we reinforce that attitude amongst art and media students?  Address job demands. Aspects of many arts jobs, even traditional ones, require entrepreneurial solutions. How can we introduce amongst our students those skills that foster employability?  Ensure a legacy. Most artists hope to make some sort of meaningful positive difference in the lives of others. Entrepreneurial actions can result in powerful legacies. How can we define that? To develop a curriculum and syllabus in these areas implies we focus on the so called “creative industries”. The creative industries are different because consumer choice does not fit into standard consumer demand theory. Creative industries are defined in terms of a class of economic choice theory where the predominant fact is that the decisions both to produce and to consume are determined by the choice of others in a social network. This social network-based definition of the creative industries means that they are re-positioned
  5. 5. EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES 5 from a lagging to a leading sector. Creative industries give rise to two types of values: economic and cultural. We assume creative industries originate and coordinate change in the knowledge-based economy in a way similar to how science, education, and technology impact society and we place creative industries policy at a level of equal importance. Hence, the creative industries are a kind of industrial entrepreneurship operating on the consumer side of the economy. Though, competences to be taught must follow this paradigm of the creative industries. The definition of creative industries encompasses music, film, performing arts, publishing, and art. What is produced in these industries is cultural capital which we define as the stock of cultural value embodied in an asset. Cultural values can be thought of in a functional sense as that produced by the creative industries or as the constituent set of attitudes, practices, and beliefs that are fundamental to the functioning of different organizations. Art and film students/trainers entrepreneurship oriented training should have the nature of these “industries” in mind”. There is a long tradition among academics that views the arts as a “special” industry. This can be summed up as the view that there is something about the production of everyday goods and services that the arts do not contribute to. This is what complicates the debates over arts entrepreneurship and its role in the economy. Do the arts do something more than just create jobs and material wealth and how do they contribute to society? Though what competences should teachers reinforce in their students? Arts represent a development of humanity that moves beyond the base desires to consume and produce goods and instead seeks to create something supposedly at a “higher” level. The fact that the arts are treated as “special” means there needs to be an understanding of how arts entrepreneurship is better/different in terms of economic impact than other activities and what are the specificities implied in arts entrepreneurship? Having this in mind we should also in this initial stages define the methods of training: 1. What teaching designs are appropriate for specific training and what are the methodological characteristics of robust training in this area? 2. What is an appropriate balance between the acquisition of skills on entrepreneurship by the trainees involved and the exploitation of their abilities to foster entrepreneurship amongst them? 3. How can the need for a multiplier effect be balanced with the need for training provision? Following this we should also define what outcomes that are we looking for. The provisional list should include:  To improve knowledge about the entrepreneurial attitude  Reinforcement of a positive attitude towards entrepreneurship and a concern with knowledge relevant in this context, like expertise on IP and venture capital  Ability to prepare a good business plan, a factor which is critical to the success of entrepreneurs, as well as to increase the possibility of generating interest to investors about the materialization of the idea
  6. 6. EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES 6  Reinforcement of a positive attitude towards the development of innovations with an economic output. That there is no blueprint for entrepreneurship in the arts and media should not be surprising. It has been said that the essence of innovation is to give the world something they did not know they were missing. There are three aspects to the question of the role of education in arts and film entrepreneurship. The first is whether individuals can be taught to be arts entrepreneurs and how much they can be taught. Second is whether those who are successful arts entrepreneurs can convey information to those who are aspiring arts entrepreneurs. Finally, are current arts entrepreneurship education programs successful in creating more arts entrepreneurs? While there is an inherent artistic creativity that cannot be taught, how to run a business can be. This is why there is potential for arts entrepreneurship education though it requires changes in the present structure of schools, teachers attitudes and students mentality, but also in the design of new training programs that cope with this challenge. Our initial objective was to addresses such challenge by assuming that entrepreneurs in the creative industries should have formal training in business. Such training should include basic business principles in the areas such as accounting and management, for example, that should be complemented reflexive and reflective learning in an informal and grounded manner, namely via project based learning. The call for intellectual entrepreneurship (IE) will create interdisciplinary connections that will generate a broader support for film and the arts in society and schools though promoting the upcoming of new projects and training programs on entrepreneurship. The defined requisites, outcomes and methods, should promote the training of entrepreneurs in the fields of arts and media that have: 1. Vision and discovery. Entrepreneurs in the arts and media reconsider and reinvent themselves as individuals in the context of their disciplines. They envision new ideas and initiatives through this process based on a broader view of the world and what matters most to them. 2. Ownership, agency, and accountability. After reconceptualising themselves, entrepreneurs recognize that jobs are not entitlements. Instead, they realize that jobs originate from personal initiative and commitments. Employment is a manifestation of one’s vision and a full consideration of what is possible. 3. Integrative thinking and action. By creating synergy, the entrepreneur marshals the intellectual capital from disparate disciplines and utilizes numerous skill sets. This is more than an awareness of cross-disciplinary scholarship. Entrepreneurs in the arts use and maximize personal connections in these areas to bring their vision to fruition.
  7. 7. EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES 7 4. Collaboration and teamwork. The entrepreneur views the collective creativity of large groups as a critical resource. Without collaboration, synergy and integrative thinking cannot be developed though the network goals will not be achieved. These are the four principles that map our goals but also the curriculum we will now present. References: Aggestam, Maria. "Art-Entrepreneurship in the Scandinavian Music Industry." In Entrepreneurship in the Creative Industries: An International Perspective, edited by Colette Henry, 30-53. Cheltenham: Edward Elgar Publishing, 2007. Beckman, Gary D. "‘Adventuring’ Arts Entrepreneurship Curricula in Higher Education: An Examination of Present Efforts, Obstacles and Best Practices." Journal of Arts Management, Law & Society 37, no. 2 (2007): 88-111. Beckman, B. (2010), Disciplining the Arts: Teaching Entrepreneurship in Context. Massachussets: R&L Education Henry, Colette, ed. Entrepreneurship in the Creative Industries: An International Perspective. Cheltenham: Edward Elgar, 2007. Lindqvist, Katja. "Artist Entrepreneurs." In Art Entrepreneurship, edited by Mikael Scherdin and Ivo Zander. Cheltenham: Edward Elgar Publishing, 2011. Scherdin, Mikael, and Ivo Zander, . Art Entrepreneurship. Cheltenham: Edward Elgar, 2011. Venkataraman, S. (1997). The Distinctive Domain of Entrepreneurship Research: An editor's Perspective. Advances in Entrepreneurship. J. Katz and R. Brockhaus. Greenwich, JAI Press. 3: 119-138
  8. 8.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    1      ENTREPRENEURSHIP and Entrepreneur Mind-set 
  9. 9.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    2    Entrepreneurship and   Entrepreneur Mind‐set    SOURCES:      The Economist, “The Portrait of the Artist as an Entrepreneur. Albrecht Dürer.  How the greatest figure of the northern Renaissance invented a new business  model.”   S.  Venkataraman,  “Entrepreneurship”,  Darden  Business  School,  University  of  Virginia,  first  published  in  R.  F.  Bruner,  M.  R.  Eaker,  R.  E.  Freeman,  R.  E.  Spekman,  E.  O.  Teisberg,  and  V.  Venkataraman,  The  Portable  MBA,  4th  ed.  (Hoboken, NJ: John Wiley and Sons, 2003).    Saras V. Sarasvathy, “What makes entrepreneurs entrepreneurial?”, University  of Washington School of Business, 2001   Howard H. Stevenson and David E. Gumpert, “The Heart of Entrepreneurship”,  Harvard Business Review, 1985   Gregersen, Hal, et al, “Innovator DNA”, Harvard Business Review 2010      THE ARTIST AS AN ENTREPRENEUR  In July 1521, as Albrecht Dürer was packing up to return to Nuremberg from Antwerp,  he received a message. Would he come at once to do a portrait of Christian II, King of   Denmark, who happened to be in town? Naturally he dropped what he was doing, and  went.  One  did  not  turn  down  kings.  Dürer  drew  Christian’s  sad‐eyed,  fur‐swathed  figure in a charcoal sketch that still survives, kept in the British Museum. The king then  asked, would he paint him in oils? Again Dürer said yes, and did so in record time, a  couple of days. When it was done, he found 30 florins pressed into  his hand. Soon  afterwards, he left for home.    For Dürer, this was an unusual incident. Then 50, he had been for some years the most  famous  artist  in  northern  Europe;  but  he  was  not  in  essence  a  court  painter.  He  thought  of  such  people  as  “parasites”,  hanging  round  great  men,  waiting  for  a  commission  to  fall  from  the  lordly  lips.  He,  by  contrast,  was  an  independent  businessman.  He  made  his  money  not  by  grovelling,  but  by  selling  copies  of  the  woodcuts  and  engravings  printed,  since  1495,  at  his  workshop  in  the  centre  of  Nuremberg. He was not even a member of a guild, for there were no artists’ guilds in  the city: he was a free individual, unaffiliated, making money and a reputation purely  for himself.   
  10. 10.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    3    WHAT IS ENTREPRENEURSHIP?   Entrepreneurship is about creating a successful new business with resources that you already  have. Successful entrepreneurs, through their imagination, energy, talent, knowledge, contacts,  and  activities,  create  new  wealth  in  societies.  They  do  this  in  two  ways:  by  reducing  or  eliminating  existing  inefficiencies  in  markets  and  firms  or  by  bringing  new  products  and  problem  solutions  to  people.  When  people  create  new  businesses  or  firms  to  exploit  inefficiencies or create and sell new and innovative products we call them entrepreneurs and  their activities entrepreneurial.     Inefficiencies  Inefficiencies  arise  when  it  is  difficult  to  remove  poorly  used  resources  from  where  they  are  currently  employed  and  reapply  them  in  ways  that  are  more  useful  and  different people have different information, conjectures, or ideas about the future prospects of  resources, products, customer needs and preferences, the value chains of industries, and the  broad social, economic, political, and technological trends.      Opportunities  Opportunities  to  create  new  products  arise  because  of  limits  to  our  current  knowledge and also because we humans are creative and are constantly looking at the world  around us in new ways. An example of limits to our knowledge would be the limitations in  technology needed to satisfy certain known but unfulfilled market needs. Every industry faces  such technological frontiers—in design, manufacturing, distribution, sales, marketing, logistics,  quality,  etc.—and  is  therefore  a  source  of  both  known  and  sometimes  unanticipated  opportunities.  It  is  from  these  major  sources—stickiness  of  resources,  information  asymmetries,  limited  knowledge,  and  creativity—that  new  wealth  is  often  created  for  the  enterprising entrepreneur and for society.      So,  what  makes  entrepreneurs  entrepreneurial?  Entrepreneurs  are  entrepreneurial,  as  differentiated from managerial or strategic. Because they think effectually; they believe in a  yet‐to‐be‐made future that can substantially be shaped by human action; and they realize that  to the extent that this human action can control the future, they need not expend energies  trying to predict it. In fact, to the extent that the future is shaped by human action, it is not  much use trying to predict it ‐ it is much more useful to understand and work with the people  who are engaged in the decisions and actions that bring it into existence.      "Effectual"  is  the  inverse  of  "causal"  reasoning  Causal  rationality  begins  with  a  pre‐ determined goal and a given set of means and seeks to identify the optimal – fastest, cheapest,  most efficient, etc. ‐ alternative to achieve the given goal.  Effectual reasoning, however, does  not begin with a specific goal. Instead, it begins with a given set of means and allows goals to  emerge  contingently  over  time  from  the  varied  imagination  and  diverse  aspirations  of  the  founders and the people they interact with.      Relationship between opportunity and individual needs To be an entrepreneurial opportunity,  a prospect must meet two tests: it must represent a desirable future state, involving growth or  at  least  change;  and  the  individual  must  believe  it  is  possible  to  reach  that  state.  This 
  11. 11.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    4    relationship often identifies four groups, which we show in the graph. Entrepreneurs are not  just opportunistic; they are also creative and innovative. The entrepreneur does not necessarily  want  to  break  new  ground  but  perhaps  just  to  remix  old  ideas  to  make  a  seemingly  new  application. Many of today’s fledgling microcomputer and software companies, for example,  are  merely  altering  existing  technology  slightly  or  repackaging  it  to  accommodate  newly  perceived market segments.    WHAT IS AN ENTREPRENEURIAL OPPORTUNITY AND  WHERE DOES IT COME FROM?    Entrepreneurial  Leader  An  entrepreneurial  leader  is  one  who  “imagines”  a  future  business  possibility  within  a  framework  of  macroforces  and  trends  and  acts  to  bring  the  future  into  existence  with  a  sense  of  urgency,  unconstrained  by  the  limited  set  of  means  at  his  or  her  disposal, with commitment and flexibility during the creation process, in order to profit from  the journey.     Principle 1: Entrepreneurial opportunities are rarely found; they have to be created  and earned.      Major source of entrepreneurial opportunities The emergence of significant changes in social,  political, demographic, and economic forces that are largely outside the control of individuals.  These  kinds  of  macroforces  are  exogenous  changes,  because  they  often  occur  outside  the  boundaries of the business environment and are rarely influenced by them. On the contrary,  these changes have a profound impact on the business world. Of course, sometimes social and  political  changes  are  a  result  of  business  practices  or  cultures  (such  as  globalization)  but  in  most cases, individual firms can rarely influence such forces.     These macroforces give rise to fundamental changes in how we live, where we live, and what  we prefer, thus providing numerous opportunities for entrepreneurs to create and market new  products and services. Indeed, these changes also provide opportunities to renew and reinvent  existing products and services. When existing firms cannot or will not adapt to these changes,  opportunities are created for entrepreneurs in new firms. Demographic changes alter the size,  average age, structure, composition, employment, educational status, income, and health of  the population.    Second  source of  opportunity Occurs through inventions and  discoveries  that produce  new  knowledge.  Technological  developments  and  breakthroughs  in  university  laboratories  and  other research institutions, corporate or otherwise, offer excellent prospects for commercial  opportunities. The latest advancements in science, arts, crafts, and music all present conditions  for  fashioning  entrepreneurial  opportunities.  These  developments  may  occur  not  only  in  scientific labs but also in craft shops, garages, studios, and basements.   
  12. 12.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    5    Third  source  of  opportunity  May  be  found  in  the  inefficiencies  embedded  in  a  society’s  existing  economic  structure  in  the  form  of  incongruities.  An  incongruity  is  a  “discrepancy,  a  dissonance, between what is and what ought to be.”    Definition  of  opportunity  “A  time,  juncture,  or  condition  of  things  favorable  to  an  end  or  purpose, or admitting of something being done or effected” (The Oxford English Dictionary).  Opportunity  involves  an  end  or  purpose  and  things  favorable  to  the  achievement  of  it.  Therefore, for something to be an opportunity, there must be an “original mind”. Further, in the  case of an entrepreneurial opportunity, the “things favorable” consist of two categories: (1)  beliefs  about  the  future  and  (2)  actions  based  on  those  beliefs.  Thus,  “before  there  are  products and firms, there is human imagination.    Inspiration The inspiration and information that allows one to endow and enrich the abstract  and  impersonal  forces  and  trends  with  specific  meaning  so  that  the  individual  is  able  to  imagine a product, a market, and the means to bring them together is partly within us and  partly outside.     Dispersed  knowledge  Austrian  economist  Friedrich  von  Hayek  postulated  the  concept  of  dispersed  knowledge,  where  no  two  individuals  share  the  same  knowledge  or  information  about the environment. We can distinguish between two types of knowledge: first, the body of  scientific knowledge, which is stable and can be best known by suitably chosen experts in their  respective  fields;  second,  the  dispersed  information  of  a  particular  time  and  place,  whose  importance only the individual possessing it can judge.    This dispersion has an extremely important implication as far as entrepreneurial opportunities  are concerned. Dispersed information explains how an enterprising individual and unfolding  forces  and  trends  combine  to  crystallize  into  an  opportunity  to  create  and  exploit  new  products in existing or new markets.     The key is that this information is diffused in the economy; it is not a given and not equally at  everyone’s disposal. Thus, only a few people know about a particular scarcity, a new invention,  or  a  particular  resource  lying  fallow.  This  knowledge  is  typically  idiosyncratic  because  it  is  acquired  through  each  individual’s  own  circumstances,  including  occupation,  on‐the‐job  routines,  social  relationships,  and  daily  life.  It  is  this  specific  information,  obtained  in  a  particular information corridor that leads to someone seeing opportunities for profit‐making  insight.     
  13. 13.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    6           
  14. 14.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    7    “Entrepreneurship is a function of individuality: who you are, what you know, and who you  know” (Saras Sarasvathy). We cannot imagine how certain firms could have come into being,  aside from the particularity of certain individuals: Disney without Walt Disney, Ford without  Henry Ford, General Electric without Thomas Edison, Wal‐Mart without Sam Walton.  Act  upon  the  opportunity  One  thing  is  to  arrive  at  an  entrepreneurial  opportunity,  but  an  entirely  different  matter  to  act  on  this  opportunity  and  ride  it  through  to  execution  and  profitability.     There  is  a  fundamental  uncertainty  about  entrepreneurial  opportunities.  There  is  no  meaningful way in which to predict the future prospects of an entrepreneurial opportunity and  then  act  on  it.  Distinction  should  be  made  between  uncertainty  (outcomes  that  cannot  be  imagined  and  are  unknowable)  and  risk  (both  outcomes  and  their  probabilities  can  be  subjectively assigned). Bringing new products and markets into existence usually involves an  element  of  downside  (partly  influenced  by  risk  and  partly  by  uncertainty).  Indeed,  risk  and  uncertainty  provide  the  opportunity  for  profit  in  the  first  place.  This  opportunity  for  profit  attracts many people to entrepreneurship.      Principle 2: A fear of realizing the downside of creating a new business biases one  toward analysis. A bias for analysis significantly decreases the probability of business  entry but increases the probability of success.      While the opportunity may be an attractive one, the urgency to act creates many loose ends  and increases the number of things that can go wrong with the new venture. While a certain  amount of reflection, analysis, and planning might allow the individual to improve the quality  of  execution,  the  fear  of  losing  the  upside  to  real  or  imagined  competitors  biases  the  entrepreneur toward action. Again, we have a conundrum.     Principle 3: A fear of missing the upside of a good opportunity biases one toward  action. A bias for action significantly increases the probability of business entry, but  often decreases the probability of success.      Entrepreneurs use what she calls the affordable loss principle. Affordable loss is the amount of  personal resources that an entrepreneur feels psychologically comfortable committing to an  idea, and, at the extreme, this means committing “zero” resources to market.     Principle  4:  By  adopting  the  affordable  loss  principle,  enterprising  individuals  are  able to resolve the tension between a bias for analysis and a bias for action.      Most of the entrepreneur’s resources have to come from other people and institutions. Thus  the  entrepreneur  has  to  assemble  the  resources  and  the  value‐chain  infrastructure  before  potential profits can be realized.  The  process of creating  products and markets implies  that  much  of  the  information  required  by  potential  resource  suppliers  (for  example,  technology,  price,  quantity,  tastes,  supplier  networks,  distributor  networks,  and  strategy)  is  not  reliably  available.  Relevant  information  will  become  available  only  when  the  market  has  been  successfully created. 
  15. 15.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    8     Principle  5:  All  creative  endeavors  involve  a  vicious  cycle:  no  product  implies  no  customers;  no  customers  implies  no  revenue;  no  revenue  implies  no  cash  for  investment; no investment implies no legitimacy or credibility; no legitimacy implies  no resources; no resources implies no product.       By using their human capital (talent, education, and knowledge), intellectual capital (creativity,  resourcefulness, enthusiasm, and optimism), and social capital (contacts with people and their  contacts), entrepreneurs are able to leverage the necessary resources required to break out of  the vicious cycle without increasing their overall exposure to loss from a failed venture. The  strategy  of  using  commonly  available  resources  to  break  out  of  the  vicious  cycle  is  called  bootstrapping.       Principle 6: Bootstrapping    Bootstrapping  involves  at  least  three  components:  using  assets  parsimoniously,  leveraging  social assets, and employing resourcefulness. Entrepreneurs use resources very sparingly, with  sparse resources asset parsimony strategy. Asset parsimony strategy keeps the loss exposure of  the entrepreneurs very low and at the same time allows one to create something with little.  The basic tenet of asset parsimony strategy is to invest your imagination before you spend your  money.    Since entrepreneurs have limited resources to invest, they must creatively exchange the goods  and services they need for noncash assets at their disposal, such as information, friendship,  charm,  enthusiasm,  obligations,  time,  and  imagination.  The  bases  of  these  exchanges  are  emotions and values rather than logic and reason. In exchanges based on social relationships,  entrepreneurs  use  their  social  skills  and  accumulated  social  capital  to  obtain  the  resources  necessary to build on their initial ideas much more cost‐effectively than by purchasing these  resources at open‐market prices.      Principle 7: Bootstrapping is an ideal way to break the vicious cycle at start‐up    A  central  tenet  of  entrepreneurship  is  the  refusal  to  accept  a  lack  of  resources  as  an  insurmountable constraint. Indeed, many entrepreneurs claim that you are better off having  sparse  resources  because  it  lowers  risk,  forces  you  to  be  more  creative,  and  focuses  your  attention  on  generating  revenues  to  build  the  business  —  the  cheapest  form  of  capital  available. Having sparse resources may have its advantages, but it also presents problems.    Cash is the most important asset for any start‐up because it is the ultimate store of value that  can be traded for other valuable assets. While social capital certainly helps, it is not as liquid or  as tradable as cash. Further, social capital is most effective at the earliest stages of a creative  process. Growth demands a more fungible asset, such as cash.      Principle 8: Cash is king/queen. Cash is most expensive when you need it most    In addition to the liabilities of newness and smallness, entrepreneurial ventures face what may  be  called  the  liabilities  of  complexity.  One  need  not  emphasize  the  point  that  managing  a 
  16. 16.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    9    business venture is a highly complex process. Three specific complexities need special mention.  They are management of ideas, management of attention, and management of logistics. For an  entrepreneur, the biggest challenge is to pursue an idea to its conclusion.     Most individuals lack the capability to deal with complexity. People have short attention spans.  Because of this inherent limitation of the human mind, people are most efficient at repetitive  task. But new business creation is hardly repetitive. There are many details to think about and  execute.  Each  task  and  each  new  problem  looks  different  from  the  earlier  ones.  The  entrepreneur has to take on all roles, from janitor to strategist.    The essence of entrepreneurship is finding ways to buy low and sell high!      Principle 10: Every new business has three to five fundamental drivers. Find them  and focus on them. The task of creation becomes easy.     FROM CONCEPTUAL TO REAL ACTION    Everyone have the capacity to generate ideas, but just few have the ability to use ideas to  create  something,  to  solve  problems,  to  improve  processes  to  create  value  that  can  be  exchanged.     Create value is not just about to earn money. Considering the consumer perception it is also a  way to create benefits and good experiences. Detecting what it is that has value for the client  becomes a search for competitive opportunities.     The hard work is to discover a great idea and find out which idea is better than other, and how  to recognize an interesting idea that can move the world.     The answer is – try to move your idea into action, and many other questions will appear, many  other solutions will be needed based in new ideas, based in new actions. If you can put the  idea in action, if you can exceed the barriers, which means you probably are in the right path  to the success.    The ideas doesn’t move by themself, they need energy from people who desire to challenge  for something new, instead to be just talking about ideas.    An entrepreneur is a doer not a talker, even though them are dreamers, the entrepreneurs are  people who can make things happen, because they have the ability to generate value which is  the first rule to achieve success.   
  17. 17.                 EUROP     VAL The  m mom client defin produ To de in yo analy The f   1 2 3 4 5 6   THE    A  ma highli entre into  Grege Clayt skills  ‘great Some Jobs  entre in ob says.  assoc                         PEAN COURS LUE GEN most  import ment when y t.  The  produ ed,  we  nee uct or servic efine de Valu our service a ysis with the  following que 1) Do you k product / 2) Do you k 3) Ranking o 4) Ranking o 5) Compare business  6) Identify  competit E INNOV ajor  new  stu ighted  the  epreneurs ne disruptive  ersen, Jeffrey on  Christen you need. B t in everythi e  well‐know and  Amazo epreneurs ra bservational  As  for  Bez ciating.”                         SE IN ENTRE NERATIO tant  in  ever ou delivered uct  or  servic d  to  be  in  t e.  ue Propositio and how the competitors estions, help know how t / service?  now which f of each expe of each featu e attributes a is to the ma your  streng tive advanta VATORS udy  involvin key  skills  t eed to devel innovation y  Dyer of  B sen  of  Harv But, says Gr ng.’  n  business  on’s  Jeff  Be rely excel at  skills. Marc  zos,  “experi            EPRENEURSH ON  ry  business  d a benefit a ce  attributes the  costume on, it’s impo ey value the  s.  ps to define y the costume features or a erience by ta ures / attrib and features arket.  gths  and  th ge  S DNA  ng  some  3,5 that  innova op. The six‐ n  by  INSE Brigham  You vard,  outline egersen, you leaders  such ezos  rely  o all five disco Benioff, fou mentation  w   HIP FOR THE  isn’t  the  pr and the pro s  are  impor er  role,  and  ortant to kno experience your value pr ers evaluate  attributes do argets  butes and try s with a com he  best  pr 500  executiv ative  and  c ‐year‐long re EAD  profes ng  Universit es  five  'disc u don’t have h  as  Apple’s n  their  ow overy skills.  nder of Sale was  his  fort CREATIVE IN roduct  or  th cess with ho rtant,  but  w know  what ow what cost of consump roposition  the experie o the custom y to correlate mpetitor and actices  in  t ves  has  reative  esearch  sor Hal  ty  and  covery'  e to be  s  Steve  wn  particular For example,  te,”  while  J Hal  NDUSTRIES  he  service  yo ow it solve a when  the  val t  it  will  mov tumers value ption, and m ence of cons mers value th e with the ex d identify ho the  market  r  strengths  , Scott Cook  does a lot o obs  is  “inc Gregersen  ou  offer,  bu a need from lue  proposit ve  to  your  b e in your pro make a comp sumption of he most –   xperiences  ow attractive t  to  define  since  inno k of Intuit is s of networkin redibly  stro 10  ut  the  m your  tion  is  brand,  oduct,  paring  f your  e your  your  vative  strong  ng, he  ng  at 
  18. 18.                 EUROP     The f Grege made Grege on in    Resea abou genet cent  “So e one  t doesn busin to  1 persp world sees,  Those “It's t boost   THE    Assoc Creat piece innov event later,  you  g callig comp                             PEAN COURS five skills, Gr ersen  and  h e  or  develo ersen, “but i order to get arch  involvin t  20‐25  pe ticically  driv comes from  even if I too twin  who  s n't  do  a  w ness idea, an 0  different  pectives,  wh d systematic constantly a e sorts of thi the one out  t from genet E FIVE K ciating  tive  entrepre es  of  what  m vative  new  i tually  led  to  when Jobs  get'  (WYSIW raphy to wh puter work.”                         SE IN ENTRE regersen say is  co‐author ped,  rather  n terms of c t to the ideas ng  identical  er  cent  of  en.  “This  m the world w ok those iden its  at  home whole  lot  tr nd you've go people  fro o  goes  out  ally, takes no asking quest ings. Which o there doing tics but that' KEY DISC eneurs  ‘conn may  seem  d idea.”  Steve  o  his  compa was trying to WG)  sort  of  hat might be             EPRENEURSH ys, are ‘a hab rs  use  the  D than  born.  reativity, we s that will giv twins  sugge our  creativ eans  the  ot we live in,” G ntical twins  e,  watches  t ying  to  gen t a second t om  10  diff and  maybe otes and pic ions ‐‐ ‘Wha of those iden g the creative s not the cor COVERY nect  the  dot disparate  pie Jobs,  the  C ny  producin o figure out  image,  he  c on the scree     HIP FOR THE  bit, a practic DNA  metaph   “We  each   each have a ve us some i ests  that  on vity  ability  ther  75‐80  p Gregersen say and you ha the  televisio nerate  a  ne twin who tal ferent  diver e  observes  t ctures, write at if ? Why no ntical twins i e actions,” G re of what de Y SKILLS ts’  to  make  eces  of  info CEO  of  Appl ng  user‐frien the Macinto connected  t en and it wa CREATIVE IN ce, a way of  or,  innovativ have  uniqu a unique set  nsight.”  nly  is  per  ys.  ve  on,  ew  lks  rse  he  s down in a  ot? How cou s likely to ge Gregersen sa elivers the re unexpected rmation  unt e,  was  inter ndly,  graphic osh screen, a the  dots  bac as a key com   NDUSTRIES  life’ for inn ve  entrepren ue,  fixed  phy of learnable journal thin uld? What m t the creativ ys. “They m esults.”  d  connection til  “surprise  rested  in  ca s‐based  Mac and the 'wha ck  to  what  mponent of m ovators. Alth neurs  are  ac ysical  DNA,” e skills that w ngs that he o might? How m ve ideas?”  might get a b ns.  They  com ‐  you've  go lligraphy  an cs.  “Several  at you see is he  had  lea making that w 11  hough  ctually  ”  says  we rely  or she  might?  it of a  mbine  ot  this  d  this  years  s what  rnt  in  whole 
  19. 19.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    12    Observing  Some of the most innovative entrepreneurs are “intense observers,” Gregersen says. Take for  example Scott Cook, the founder of Intuit: “When we interviewed him, we talked about how he  got the initial idea for Quicken software. He watched really carefully in terms of how his wife  was  very  frustrated  doing  their  finances.  Manually  it  was  frustrating  and  irritating.  She  purchased some software that was equally frustrating and irritating.” It was at that point that  Cook  thought  he  might  be  able  to  develop  a  product  that  could  help  his  wife  “solve  that  problem more effectively.”  After a ‘sneak preview’ of an early Apple computer, Cook got a “rich sense of what it might look  like to have a user interface and a mouse and so on, and be able to have things like checks on  the screen that looked like what they should be.” And from this observation, Gregersen says,  sprang Quicken.    Experimenting  When Jeff Bezos, the founder of internet retailer Amazon, was growing up, he used to spend  time on his grandfather's farm in the summer. When machinery broke down on the farm, his  grandfather  would  try  to  fix  it  himself,  with  some  help  from  Jeff.  They  would  “experiment,  trying this and that, until it would finally work again.” If the animals on the farm got sick, his  grandparents  wouldn’t  call  the  vet,  but  rather  experiment  and  try  to  fix  the  problem  themselves.  “So  Jeff  grew  up  with  that  kind  of  attitude  and  mindset,  that  if  I  am  confronted  with  a  challenge, I can figure out a solution,” Gregersen says. “That kind of experimentation spilled  over into Amazon.” At first, the idea had been to sell books via the internet without inventory.  “That was the initial idea. We sometimes forget that it took him seven, eight, nine years of  experimentation to build the capacity to have warehouses full of books.” As a consequence of  his experimentation, Bezos “built this business model that we now call Amazon today.”    Questioning  Questions are at the core of what we do. We can be observing the world or experimenting,  “but if I have no questions in my mind, I'm pretty unlikely to get any observations or insights or  ‘ahas’ that I never saw or thought about,” Gregersen says.  “And this kind of questioning attitude and mentality is just rampant in these folks.” Some may  be better than others in observing, but when it comes to questioning, “all were powerful.”  “I'll never forget when I sat down with A.G. Lafley (the former CEO of Procter & Gamble) to talk  with him about his world of leadership. I had a series of questions related to research about  global leadership and I swear he asked me far more questions in that interview than I asked  him because he was just simply curious about what was going on in the research.” 
  20. 20.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    13    Another was Michael Dell. “I had the naivete to ask Michael if he had any favourite questions  he likes to ask when he wanders around the world. And he instantly responded with a quizzical  look,  like  ‘That's  a  dumb  question.’  Then  he  said:  “Hal  if  I  had  some  favourite  questions,  everybody would know the answers. Instead, when I'm wandering the world, I try to construct  a question for every conversation that might generate information that I never had before’. And  for most of these innovative entrepreneurs, that's just how they think."     Networking  Typically, when we think of networking, we think of this in terms of jobs, a career or maybe  social  life.  But  when  it  comes  to  creativity,  it  takes  on  a  different  meaning. “Innovators  are  intentional about finding diverse people who are just the opposites of who they are, that they  talk to, to get ideas that seriously challenge their own,” Gregersen says. Creative and innovative  entrepreneurs  look  for  people  who  are “completely  different  in  terms  of  perspective”  and  regularly discuss ideas and options with them “to get divergent viewpoints.” There could be  differences  in  gender,  industry,  age,  country  of  origin,  or  even  politics.  “If  I'm  on  the  right,  they're  on  the  left,  that  kind  of  notion.  And  those  sorts  of  diverse  inputs  in  terms  of  conversations enabled them to get new ideas,” he says.  “Now  it  doesn't  come  instantly.  Sometimes  the  conversations  provide  their  own  insights.”  David Neeleman, founder of JetBlue Airways and now CEO of Azul Airlines in Brazil, got the  idea for paperless ticketing or e‐ticketing, Gregersen says, by talking to one of his employees  about  the  frustration  of  having  to  carry  around  paper  tickets  in  order  to  give  them  to  passengers flying on their planes. “So that conversation then led to a new idea and a way of  doing things differently.”    Disruptive innovation  Another  of  the  co‐authors  of  the  study,  Clayton  Christensen,  is  an  expert  in  disruptive  innovation  and  this  led  Gregersen  to  wonder  what  the  origin  was  of  “those  disruptive  organisations  that  changed  whole  industries.”  They  then  drew  up  a  list  of  the  world’s  most  innovative  companies based in  part on BusinessWeek’s ”Most Innovative Company” ranking  and began interviewing the CEOs or founders.  They got access to the likes of Dell, asking him and others: "Tell us about what was going on  when  you  got  the  initial  idea  that  led  to  this  innovative  business  called  Dell  computer  (or  Amazon  in  the  case  of  Bezos)."  They  then  realised,  when  looking  at  the  responses  to  this  question,  that innovative entrepreneurs are “doing a lot of the same things ‐‐ there’s a little bit  of variation but a lot of the same things.”  At that stage, they developed a self‐assessment and 360 degree survey based on the concepts  of experimenting and so on, and assessed ‘thousands of executives and entrepreneurs.’ “And  what we discovered was that those engaging in  these behaviours and this thinking  pattern,  were actually the ones who delivered breakthrough processes, new products and services, new 
  21. 21.                 EUROP     busin comp “At th They  thing make Corpo some mont result thing   Pract they' “Thes to att be do doing But t bette His su write and i probl    Take  ‘Wha talk  t anoth that w                         PEAN COURS ness lines wi panies ‐ all of he core of th were absolu gs change ...  e that a realit orate decisio e companies  th  just  obse ts. So one of gs that we co ticing and de ll talk to just se are the th tend a Mont oing this stu g it’ ... and w his ability is er at question uggestion is  e down ques t's by chang lem that lead notes when  at did you lea to  somebody her country,  we can do an                        SE IN ENTRE thin compan f which were his, all these utely uncomf They wanted ty.”  on‐making, h do. P&G’s m erving  custo f the surpris uld do, most eveloping the t about anyb hings that we tessori‐type s ff. But most  we lose our in s not lost for ning, I start a to get a jou stions about  ging the que ds us to a so observing o arn? What s y  different:  but talk to s nd they don'            EPRENEURSH nies, corpora e financially p e folks were  fortable with d to change  he says, does marketers, for mers.  “They es for me is  t of us have l e skills  Gregersen s when  it  c counterintui “does not va Gregersen’s  cent of the t to run busin like  a  four‐y “Because  al thousands o always  askin ody.”  e all did as fo school like m school and  nnate creativ rever. “We c asking more  rnal and, if y that proble estion that w lution that w others. “Step urprised you maybe  on  a somebody w t take a lot o   HIP FOR THE  ate entrepre profitable an driven by a  h things bein the world. A s “not usually r example, sp y  value  the  that even th lost the capa says the five comes  to  itive.” That’s alue these ac advice? Sta time, that wo nesses. But 2 year‐old  aga ll  these  skill of questions: ng  those  qu our‐year‐olds many innovat corporate sy ve capacity.” can get it ba questions.” you've got a  em. After a m we change o we never tho p back from ( u? What was another  floo who's 180 deg of time to do  CREATIVE IN eneurship, an nd successfu fundamenta ng the way th And they're g y value or su pend more t behaviour  hough these ability to do t  discovery s the  actual   because the ctions.”  rt acting like ould be absu 20 per cent, ain,”  Greger ls  are  what   ‘Why?’ ‘Wh uestions  ...  s. We all did  tive entrepre ystems cons ck and that' problem, ta month or so ur fundame ught of befo (the problem s interesting or,  a  differen grees differe them.”  NDUSTRIES  nd new busi l.”  al bias again hey are. They going to risk  pport innova han 12 hour and  they  ge  are relative them.”  kills may se practice,  e adult world e a child aga urd. We're ad  25 per cent sen  told  INS four‐year‐o hy not?’ This  They  obser this stuff. An eneurs did, t istently say:  s where, if I ke a few mi , “your ques ntal underst re.”  m or situation ?’ If you like  nt  building,  a ent from you inesses outs st the status y wanted to  failure in ord ative actions rs on average et  the  inno ely straightfo eem ‘intuitive “doing  the d in which w ain: “Not 10 dults and we t of our tim SEAD  Know olds  do.  The s and that. Th rve  intensely nd if we happ then we still   ‘Don't do it I want to be nutes each d stions will c tanding abou n), talk to pe e to talk to p a  different  o u. These are t 14  ide of  s quo.  make  der to  s.” Yet,  e each  vative  rward  e’ but  em  is  we live  00 per  e have  me, act  ledge.  ey  ask  hey're  y  and  pened  might  t, stop  ecome  day to  hange  ut the  eople:  eople,  office,  things 
  22. 22.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    15    “Innovation is a habit,” Gregersen says. “And for these innovative entrepreneurs it's a way of  life. It's the fabric of who they are. And for others who aren't that way, they could be: if they  choose to act different to think different.”     Hal Gregersen is an affiliate professor of leadership at INSEAD. The co‐authors of the study are  Jeffrey  Dyer,  a  strategy  professor  at  Brigham  Young  University,  and  Clayton  Christensen,  a  professor of business administration at Harvard.     First published: December 21, 2009  Last updated: January 14, 2010  Source:‐innovators‐dna‐091221.cfm#         
  23. 23.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    16    HOW DO EXPERT ENTREPRENEURS THINK AND ACT    David McClelland, psychology teacher at Harvard University, identified 3 types of motivational  needs  that  frame  the  entrepreneurial  attitude:  Need  for  Realization,  Need  for  Power  and  Authority, Need for Affiliation.    Need for Realization  The individual is motivated by achievement and seeks to achieve this accomplishment.  Tends to be realistic, with challenging goals and try to promoting their work.  Have a great need of feedback for its realization and progression as well as a need to  feel accomplished.    Need for Power and Authority  The individual is motivated by power and authority.  Have need to be influential, effective and have an impact in the community.  Have need to lead and make their ideas prevail.  Have great motivation to increase their personal status and prestige.    Need for Affiliation  The individual needs to create friendly relationships and is motivated by the interaction  with other people.  Membership produces motivation and need to be popular within their group.         
  24. 24.                                                                         EUROPEAN COURSE IN ENTREPRENEURSHIP FOR THE CREATIVE INDUSTRIES    17    SUCCESSFUL ENTREPRENEURS ‐ HOW TO DISTINGUISH?  The successful entrepreneurs have many characteristics, but the following are considerate as  the most relevant to achieve success:    Initiative   Persistence   Self‐confidence   Communication skills   Understanding the opportunities   Effective guidance Concern about the quality of work   Concern about the quality of work   Systematic planning   Monitoring the activities   Commitment to planning   Recognition the importance of networking in business   Relationship capability      Exercise: SELF ‐ ANALYSIS  Trace  your  entrepreneur  profile  with  the  ENTREPRENEUR  LEVEL  ANALYSIS  MATRIX  and  find  which premise you need to improve to become a great entrepreneur. 
  25. 25. Name: __________________________________________________ Date: _____/_____/__________ Initiative Persistence and persuasion Monitoring activitites Self-confidence Communication skills Understanding the opportunities Effective guidance Concern about the quality of work Commitment with the plan Networking Relationship capability Systematic planning 5 5 10 10 5 5 10 10 5 5 10 10 5 5 10 10 5 5 10 10 5 5 10 10 5 5 10 10 5 5 10 10 5 5 10 10 10 5 5 10 10 ENTREPRENEUR LEVEL RADAR SELF - ANALYSIS Traceyourprofilejoiningthepoints,andfindwhichpremiseyouneedtoimprove tobecomeagreatentrepreneur. 5 5 10 10 5 5 10 10 5 5 10 10 5 5 10 10 5 5 10 10 5 5 10 10 5 5 10 10 5 5 10 10 5 5 10 10 10 5 5 10 10 Sample
  26. 26. From Ideas to Business - GOLDEN 11 - QUESTIONS TO MATURE IDEAS We can create many ideas every day, but just a few of them can emerge as a sustainable idea to create a new project or business. This problematic is part of a natural mature process that can convert ideas in interesting ideas that can be developed to be part of a business plan. The questions on this guide reflect the investors structure of thinking and the major issues that arise when they are analyzing projects to verify how mature the ideas are. Answer the following questions in a pragmatic and objective way. 1. PRODUCT / SERVICE WHAT ARE THE PRODUCTS OR SERVICES OF THIS PROJECT? 1.1. Brief description of project 1.2. Brief description of my product and / or service. 1.3. It is a single product or service? 1.4. Briefly describe how the product or service works, or how is the "mechanics" of the project. Depending on the state of maturity of your idea, there may be questions which cannot be answer at this time. It's part of the process. In time you will find the answers. Try to find the information for the answers through a process of investigation and observation of the functioning of markets where you want to develop your business as well as conducting a benchmarking process.
  27. 27. 2. CLIENT Client, consumer, user, purchaser or prescriber are the same "person"? 2.1. Do you have more than one type of client (example: toys for kids – The users are the children, but whose pays are the fathers.) 2.2. Please identify: 2.2.1.Client (who pays) 2.2.2. Consumer / User (who consumes / uses) 2.2.3. Purchaser (who buys) 2.2.4. Prescriber (who prescribes) 2.2.5. There is another type of client? 2.2.6. Where the "client" can purchase the product or service? 2.2.7. How and where the "client" uses the product or service? 2.2.8. How does the "customer" gets help to use your product or service? 3. WHAT PROBLEM IS BEING SOLVED? 3.1. What is the need of my client / user? 3.2. What kind of experience is provided to my client / user? 3.3. How do you resolve the need or how do you provide the experience? 3.4. Who is the target or targets?
  28. 28. 4. KEY ACTIVITIES AND DEPENDENCE OF THIRD PARTIES 4.1. Identify the key activities for the realization of this project. 4.2. Identify and evaluate your current knowledge and technical resources. 4.3. Do you depend of third parties to implement your idea? Who are they? 4.4. Who are the possible "providers" for activities that you cannot perform? 4.5. What resources do you need to “activate” the providers? 5. WHAT IS THE COMPETITIVE ADVANTAGE OF THE PRODUCT? 5.1. Who are the competitors and who is the biggest one? 5.2. What are the main strengths and weaknesses of my competitors? 5.3. Is there any competitive advantage in your product to be a winner? 5.4. Identify the competitive advantage. (2 sentences maximum) 6. THE BARRIERS TO SUCCESS. 6.1. Perform a PESTEL analysis and identify the barriers and opportunities (PESTAL analysis – Political, Economic, Social, Technological, Environment and Legal – macro factors) BARRIERS OPPORTUNITIES Political Identify political factors that may be a barrier or an opportunity Economic Identify economic factors that may be a barrier or an opportunity
  29. 29. Social Identify social factors that may be a barrier or an opportunity Technological Identify technological factors that may be a barrier or an opportunity Environment Identify environment factors that may be a barrier or an opportunity Legal Identify legal factors that may be a barrier or an opportunity 6.2. Can you identify any kind of other barriers or opportunities that become some other macro factors? 6.3. How can you exceed the barriers? BARRIERS SOLUTIONS Political Economic Social Technological Environment Legal others
  30. 30. 7. SWOT Analysis Identify the opportunities and threats in the market, and the strengths and weaknesses of the project / business. Strengths Weaknesses INTERNAL analysis Opportunities Threats EXTERNAL analysis 8. DOES YOUR PRODUCT “WORK” THE SAME WAY PEOPLE “OPERATE” TODAY? 8.1. Do the clients need to learn how your product works? 8.2. How and where can they learn? 9. WHICH ARE THE INTERNAL AND EXTERNAL RESOURCES NEEDED? INTERNAL RESOURCES EXTERNAL RESOURCES
  31. 31. 9.1. Do you need Partners? Identify the key partners of your business (NOTE: Partner is different from supplier. Partners share the risk as well as the project success) Key Partners 10. STARTER CRITICAL TEAM 10.1. How many people does the business need to start? 10.2. Which are the key competencies? (jobs description) 10.3. Which are the needed key talents? 11. HOW IS THIS PROJECT SELF-SUSTAINABLE? Identify income flows 11.1. When does the client pay? 11.2. How does he pay? 11.3. Where does he pay? 11.4. Which are the available modalities of payments to the client (ex. ATM, check, paypal)?
  32. 32. Issuance of invoice / receipt 11.5. How is the invoice issued? 11.6. Where is the invoice issued? 11.7. How does the "client" receive the invoice?