summ-1st wk

Session - 1

2

Instead of taking either traits or

circumstances as inputs and

trying to explain variance in performance,

the expertise lens focuses on

understanding commonalties, given high levels of performance.

Of the world’s 1426 billionaires entrepreneurs….

960 (67.32%) are self-made

830 (86.45%) made money from multiple businesses

Billionaire?

Articles in the Journal of Political Economy and in the

American Economic Review show that entrepreneurs

as a class make only as much money as

they could have if they had been

employees.

Billionaire ?Harvard Business School senior lecturer Shikhar Ghosh’s

research indicates that :

--75 % of venture-backed companies never return cash to investors,

--with 30 to 40 % of those liquidating assets where investors lose all of their money.

(Based on more than 2,000 venture-backed companies that raised at least $1 million from 2004 to 2010)

Five year survival of VC backed new ventures

Source: US Census

BOSS ?

Analysis of 212 start-ups in US show that

By 3 years only 50% of founders are CEO

By 4 years only 40%During IPO only 25%

8

The Entrepreneurs

Reality..…

Making Decisions Under

Uncertainty

99

The Entrepreneurs

MINDSET

1010

Everybody has a Passion Thomas Edison

Was interested in books that showed how things were made and how to conduct experiments.

As a teenager got a job selling newspapers to passengers on the day-train.

Received permission from the railroad to do chemistry experiments in the baggage car while waiting for the return trip.

Went to became great inventor, scientist and businessman.

1111

SuccessSuccess

FailureFailure1010

1010

A Different View of A Different View of FailureFailure

12

Superman – ordinary men doing extraordinary

things

Lucky – planned opportunism

Money—know how to get it

Great Risk takers – calculated risks

Extraordinary Forecasters – co-creation

Do not Fail – pillars of success

Reality behind the Myths

1313

Necessity Entrepreneurs

In developing countries

many are entrepreneurs

out of necessity,

because they have no

prospect of a job.

--- Little Impact on

the economy

14

GROWTH MINDSET

• Supergrowth SMEs (Gazelles) are 5 – 8% of Total

• Growth SeekersGrow and protect income and investment and pass it onto the next generation

• Comfort SeekersMaintain business at its current size to protect investment and pass it on to the next generation

1515

Opportunity Entrepreneurs – Great Impact

• The contrast here is with

‘opportunity entrepreneurs’, who

choose to exploit the opportunities

they perceive in the marketplace.

• opportunity entrepreneurs have the

motivation and the skills

to save, invest, innovate,

and grow.

16

INVENTION AND INNOVATION

Invention

The creation of something

new

Results in new knowledge

Innovation

The transformation of an idea or

resources into useful applications

Results in new products,

services, or processes

1717

Basic Elements of Entrepreneurship

Motivated Individual

Innovation

Value Creation

Organization Creation

Growth Orientation

Founder

1. Can I actually be an Entrepreneur?

2. What if I fail?

3. How do I spot the opportunity?

4. When do I start?

5. Should I go alone?

6. How do I grow?

7. What is my goal – “Boss” or “Billionaire” or

both?

8. Should I have an exit plan?

Evaluation

Class discussions : 20%

Quizzes : 40%

Group Assignments

(Project& Presentation) : 40%

20

Session - 2

21

The Restaurant Project

What will you do?

22

Where do viable ventures come from? They

start with an idea. And ideas are nothing

more than your transformation of anything

IDEA = ANYTHING + YOU

23

We also know that ideas, visions, or divine

intervention alone are not what create

opportunities. It is action:

OPPORTUNITY = IDEA + ACTION

24

Action is not gathering information. Action is not

only outcome oriented, its also a function some

kind of interaction with the world:

ACTION = Function (INTERACTION) on

MONEY, PRODUCT, PARTNERS, CLIENTS…

25

What turns these actions into a viable

business is commitments

VIABLE VENTURE = OPPORTUNITY +

COMMITMENT

Action

Idea

Idea +You

Idea +You+Action

Idea + You +Action

+ Commitment

• Are biased towards action:

• Find and solve problems

• Take personal responsibility

• Persevere until they reach their goals.

• Are not afraid of change

• Look for self-improvement opportunities.

28

GROWTH MINDSET

• Supergrowth SMEs (Gazelles) are 5 – 8% of Total

• Growth SeekersGrow and protect income and investment and pass it onto the next generation

• Comfort SeekersMaintain business at its current size to protect investment and pass it on to the next generation

2929

Basic Elements of Entrepreneurship

Motivated Individual

Innovation

Value Creation

Organization Creation

Growth Orientation