think like a business personsession #1

the economy, the culture, the entrepreneur and the team

index

The economy Chiaimerica, Chindia, EurAmerica & others

Hostede's view on country and organizational culture

The entrepreneurGlobal Entrepreneurship Monitor - statistics Successful Entrepreneurial teams

reference: ft.comChindia, EurAmerica & the rest

ChinIdia, Euramerica & the rest

Hostede's organizational culture

Geert Hofstede - an influential Dutch researcher in the fields of organizational studies and more concretely organizational culture, also cultural economics and management (wikipedia)

● Power Distance (PDI)● Individualism versus Collectivism (IDV)● Masculinity versus Femininity (MAS)● Uncertainty Avoidance (UAI)● Long Term Orientation (LTO)

http://geert-hofstede.com

this is how Ro org culture looks like

http://geert-hofstede.com

this is how Ro org culture looks like

http://geert-hofstede.com

tr=75.6M bg=7.3M ro = 18.6M(source wikipedia)au=8.4M hu=9.9M (source wikipedia)

black cherry on the cake - we & Russia are the same!

consider this: 1. power & transparence

2. love the success of individuals & teams

3. don't wait for others, pull if you cannot all push

4. take calculated risks no pain / no gain

5. think short and long term / be flexible and know when to change strategies

define: Entrepreneur

AN INDIVIDUAL WHO, THROUGH

PERSONAL DRIVE AND NOVEL TECHNICAL

OR MANAGERIAL INSIGHTS, IS ABLE TO

ACHIEVE SIGNIFICANT GROWTH FOR A

FIRM HE OR SHE OWNS OR MANAGES FOR

OTHER PROVIDERS OF CAPITAL

Statistics - Global Entrepreneurship Monitor (GEM)Country / Stage /2012 (2007) %

Nascent0-1 years

New1-2 years

Early Stage3.5 - 5 years

Established5 years ++

US 9(6.5)% 4(3.4)% 13(9.6)% 9(5)%

UK 5(2.9)% 4(2.7)% 9(5.5)% 6(5.1)%

Japan 2(2.2)% 2(2.2)% 4(4.3)% 6(8.7)%

China 5(6.9)% 7(10)% 13(16.4)% 12(8.4)%

Brazil 4(4.3)% 11(8.7)% 15(12.7)% 15(9.9)%

Russia 3(1.3)% 2(1.3)% 4(2.7)% 2(1.7)%

Romania (2008) 6(2.5)% < 50% 4(1.6)% < 50% 9(4)% < 50% 4(2.1)% 50%

stages of a business, growth & confidence

reference: MBS - Francis C. & Ray Oakey

best way ahead is to team up

● you (who are you / what do you know / who do you know)

● the partners - don't compromise for very best● handle well frictions - by being prepared● start with optimism, trust and empathy

Process:acquire motivation -> find idea -> idea validation -> find resources -> Negotiation Entry -> Birth & survival of the Business adapted from MBS - Francis C. & Ray Oakey

there are high R&D expenditure and funding costs

adapted from MBS - Francis C. & Ray Oakey

moving forward learn on howbest to succeed by coming to tlBP

we shall put you to:● work together● innovate● learn by doing● be critical (analyze / compare / contrast)● make a business● guide you in the process● invest and shoulder your efforts● network / open doors

Thank you!

Q&A

on tlBP - follows shortly

#2

Backup #1 - biz entry strategies

•Developing a new product or service.•Developing a better product or service.•Buying a franchise.•Exploiting an existing product or service•Finding a sponsor for a start-up enterprise.•Acquiring a going concern.

adapted from MBS - Francis C. & Ray Oakey

Backup #2 - high opportunity idea

Economic Issues

Profit after tax 10% or more, durable

Breakeven In under two years

Positive cash flow In under two years

ROI potential 25% or more per year

Capital requirements Low to moderate, fundable

Exit mechanism Attractive, clearly seen

Abridged from: Timmons 1994, p46 / Francis & Ray @ MBS