enabling entrepreneurship in local societies and markets: shifting the education paradigm s....

Enabling EntrepreneurshipEnabling Entrepreneurshipin Local Societies and Markets:in Local Societies and Markets:SHIFTING THE EDUCATION PARADIGMSHIFTING THE EDUCATION PARADIGM

S. VenkataramanThe Darden Graduate School of Business AdministrationSamuel L. Slover Research Professor of Business Administration

Research Director, The Batten Institute

S. Venkataraman 2

Entrepreneurship Education: Entrepreneurship Education: Essence of the ProblemEssence of the Problem

ASPIRATION:Create economic and social value through entrepreneurship

POPULAR MEANS:Provide entrepreneurship education to youth

POPULAR EDUCATION APPROACH: • imitate best U.S. and European educational practices• import content• import experts from developed countries (especially U.S.)

PROBLEMS WITH THE POPULAR APPROACH: • inappropriate content• inappropriate methods• inappropriate “experts”

ASPIRATION:Create economic and social value through entrepreneurship

POPULAR MEANS:Provide entrepreneurship education to youth

POPULAR EDUCATION APPROACH: • imitate best U.S. and European educational practices• import content• import experts from developed countries (especially U.S.)

PROBLEMS WITH THE POPULAR APPROACH: • inappropriate content• inappropriate methods• inappropriate “experts”

S. Venkataraman 3

Entrepreneurship Education: Entrepreneurship Education: Essence of the Problem Essence of the Problem (cont.)(cont.)

THE RESULT: Local entrepreneurs are set up for limited success because the popular education approach ignores their reality, context, and cultural beliefs and frameworks.

THE RESULT: Local entrepreneurs are set up for limited success because the popular education approach ignores their reality, context, and cultural beliefs and frameworks.

THE SOLUTION:Entrepreneurship education must be customized to incorporate an emerging market’s environment.

THE SOLUTION:Entrepreneurship education must be customized to incorporate an emerging market’s environment.

S. Venkataraman 4

The Reality of Entrepreneurship EducationThe Reality of Entrepreneurship Education

Methods Content

“Experts”Ignores Local

Ideology and Paradigms:Broader social status of

entrepreneurship

Ignores LocalIdeology and Paradigms:

Broader social status ofentrepreneurship

Ignores Local Context: Underdeveloped tangible and

intangible infrastructure for entrepreneurship

Ignores Local Context: Underdeveloped tangible and

intangible infrastructure for entrepreneurship

Entrepreneurship Education:

Imitates the U.S.and Europe

Entrepreneurship Education:

Imitates the U.S.and Europe

Ignores LocalEntrepreneur’s Reality:

Limited financial capital - must have ability to create value from

what you already have

Ignores LocalEntrepreneur’s Reality:

Limited financial capital - must have ability to create value from

what you already have

S. Venkataraman 5

Entrepreneur’s RealityEntrepreneur’s Reality

• Human Capital–Education

–Knowledge

–Experience

• Intellectual Capital–Ideas

–Inspiration

–Ingenuity

• Social Capital• Modest Financial Capital

• Human Capital–Education

–Knowledge

–Experience

• Intellectual Capital–Ideas

–Inspiration

–Ingenuity

• Social Capital• Modest Financial Capital

How can the entrepreneur create value from who he is, what he knows, whom he knows, and what he has?

How can the entrepreneur create value from who he is, what he knows, whom he knows, and what he has?

S. Venkataraman 6

Course Topic Learning Opportunities

Entrepreneurial Opportunity• What is an entrepreneurial opportunity?• Where does it come from?• What is a “good” opportunity?

• Opportunities are rarely “found” -- they have to be created from an interaction of macro forces along with human, social, and intellectual capital.

Limited Financial Capital• What problems arise in pursuing an

entrepreneurial opportunity with limited financial capital?

• Breaking through the “vicious cycle” at start-up, including overcoming: (1) Bias for action vs. bias for analysis (2) Fear of losing the upside vs. fear of realizing the downside

Creating Value• How do I overcome the problem of

“vicious cycle”?

• The effectuation principle -- providing a practical means for accomplishing something

• Entrepreneurs must leveraging human capital, emotional capital, and social capital to create something new.

Curriculum Content Focus:Curriculum Content Focus:Creating Value From Current ResourcesCreating Value From Current Resources

S. Venkataraman 7


Risks• What are the risks in pursuing an

entrepreneurial opportunity with limited resources?

• How do I overcome these risks?

• The principles of– “insuring and sharing/shifting risk”

(over time, place, and people)– Managing residual risk:

“bootstrapping”

Scale• How do limited resources affect scale

of entry? • How do I solve the problem of scale?

• The principle of entry as a “process” vs. entry as an “event”

• Incrementalism vs. Splash

Modes• What are the different ways of pursuing

an opportunity?• How do they differ?

• Modes of enterprise

Curriculum Content Focus:Curriculum Content Focus:Creating Value From Current Resources Creating Value From Current Resources (cont.)(cont.)

S. Venkataraman 8


Nature of Entrepreneurs• What makes entrepreneurs

entrepreneurial?

• Trustee mindset vs. Promoter mindset

Baby Steps• Can I conceptualize an entrepreneurial

opportunity?

• Concept definition: Crystallizing and communicating a new business idea

Curriculum Content Focus:Curriculum Content Focus:Creating Value From Current Resources Creating Value From Current Resources (cont.)(cont.)

S. Venkataraman 9

Context of EntrepreneurshipContext of Entrepreneurship

poor deal flowpoor deal flow

no risk capitalno risk capital

entrepreneurentrepreneuris riskyis risky

fear of failurefear of failure

push ratherpush ratherthan pullthan pull

low qualitylow qualityfirmsfirms

low status for low status for entrepreneurentrepreneur

non-entrepreneurship non-entrepreneurship oriented cultureoriented culture

S. Venkataraman 10

Enabling Entrepreneurship:Enabling Entrepreneurship:Intangible PrerequisitesIntangible Prerequisites

great organization at

focal point: ideas, deals

great organization at

focal point: ideas, deals

rolemodels

rolemodels

informal forums of entrepreneurs

informal forums of entrepreneurs

idiosyncraticvalue

idiosyncraticvalue

safetynets

safetynets

access to exit markets,

products and dollars

access to exit markets,

products and dollars

executive leadership

executive leadership

informal risk capital

informal risk capital

COLLABORATIVELEADERS

COLLABORATIVELEADERS

S. Venkataraman 11

The Ideology ParadigmThe Ideology Paradigm

Education must enable the transformation from dominant to humanistic.Education must enable the transformation from dominant to humanistic.

Dominant IdeologyDominant Ideology Humanistic IdeologyHumanistic Ideology

Profit = result of “good” businessProfit is bad

Business = positive sum gameBusiness = zero sum game

“If that fool can do it then I can do it too!”Tallest poppy must be cut down

Rising tide lifts all boats“My greatest joy is when my neighbor’s cow dies.” (schadenfreude)

Entrepreneurship enables change Entrepreneurship is “evil”

Entrepreneurship is one of the few sources of new wealth

Entrepreneurship means starting or managing a subject matter expert

Entrepreneurship is part and parcel of business literacy

Entrepreneurs are born, not made; entrepreneurship cannot be taught

S. Venkataraman 12

Human Capital Development Approaches:Human Capital Development Approaches:Global ExamplesGlobal Examples

Croatia and Hungary: Import Capabilities• Import faculty to teach both local faculty and students

• Send promising young faculty abroad for training

Singapore: Develop Capabilities - Train and “Bond”• Create system to train best people abroad and require them return to internal

institutions to develop faculty from within

India: Invest & Watch / Train and Drain• Send promising young faculty abroad for training; expect some will return but

realize some won’t

• As a result, expect some brain drain, but “it’s better to have brain drain than a brain in the drain”

Mexico: Collaborate• Educate collaboratively with visiting experts

Croatia and Hungary: Import Capabilities• Import faculty to teach both local faculty and students

• Send promising young faculty abroad for training

Singapore: Develop Capabilities - Train and “Bond”• Create system to train best people abroad and require them return to internal

institutions to develop faculty from within

India: Invest & Watch / Train and Drain• Send promising young faculty abroad for training; expect some will return but

realize some won’t

• As a result, expect some brain drain, but “it’s better to have brain drain than a brain in the drain”

Mexico: Collaborate• Educate collaboratively with visiting experts

S. Venkataraman 13

Education Methodology:Education Methodology:Dominant ModelDominant Model

Dominant Model:TEACHER-CENTRIC

Dominant Model:TEACHER-CENTRIC

book learningbook learning

teaching by “experts”


rote learning about phenomenon


hypotheticalbusiness plans


individual learningindividual learning

a-contextual and imported content


focus on gradesfocus on grades

“failure is not an option” mindset


learning = discovering “truth”


S. Venkataraman 14

Education Methodology:Education Methodology:Shift from Passive to Active LearningShift from Passive to Active Learning

Dominant ModelTEACHER-CENTRIC


Desired ModelENABLING ENTREPRENEURSHIP


book learningbook learning learning by doinglearning by doing



student centered learning

student centered learning





practicethe phenomenon

practicethe phenomenon

individual learningindividual learning interactive learninginteractive learning

S. Venkataraman 15

Education Methodology:Education Methodology: Shift from Passive to Active Learning Shift from Passive to Active Learning (cont.)(cont.)





focus on gradesfocus on grades





contextual, locally-generated content

contextual, locally-generated content

focus on creating social and economic

value

focus on creating social and economic

value

learning = creating possibilities

learning = creating possibilities

“failure is a learning opportunity” mindset

“failure is a learning opportunity” mindset



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