9-11-08 - Entrepreneurship Class Notes 9/11/08 I....

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Entrepreneurship – Class Notes – 9/11/08 I. Demystifying Entrepreneurship ASK HIM TO GO OVER THE FIRST SLIDE WITH YOU Entrepreneurship – way of thinking, reasoning and acting That is opportunity obsessed Holistic in approach o The type of team depends on the size of the opportunity and the resources available II. Demystifying Entrepreneurship Entrepreneurship occurs in: o New and old firms Intrapreneur o Small and large firms o Profit and non-profit sectors Non-profit Educational foundation (like teaching people how to read) o Metric of success? The number of people able to read o Constraints Staff Resources The expenses that you have to be offset by the revenue (money coming in) Also, grants, donations, etc – help to offset costs
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II. Classic Entrepreneurship WHICH TYPE OF VENTURE? The spectrum of ventures: Startup Acquisition Franchise Corporation (intrapreneur) What determines the success of start-up? Opportunity Team Resources Bootstrapping uses skill and ingenuity to control resources (and be parsimonious with resources) Control the use of resources Making sure that use your scarce resources wisely Example case: Marianne Szymanki Toy Tips Inc. She gave information on toys She made a deal with Marquette university in Milwaukie She let the university give her offices She also got local pediatricians to give toys to kids Local students would then observe the kids and their reactions to the toys CONCLUSION: A clever way to get the resources, labor, and capital she needs without spending a lot of money o Very parsimonious III. Entrepreneurship: Beyond Startups Upstart companies have “Upset” Traditional Leaders. o Good example? IBM’s dominance in the computer industry It took Giants years to change Corporate culture – procedures and protocols of the company – hierarchy of authority o That corporate culture at IBM was NOT HELPFUL – they were used to doing everything from the top down – but that is NOT the way the PC market developed Specialization of each individual company was common in the PC market – each company does something different, not just one company did everything
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o THUS, IBM really fell “Riding the Bear” – WHAT IS THIS Entrepreneurship – beyond startups What did Ewing M. Kauffman mean when he said “people don’t want to be managed. They want to be lead” o People do not want to be told what to do, they want to be shown a path. o A successful leader will take responsibility and delegated tasks, but he also makes heroes out of his staff Problems with the following type of company: o Giant firms’ Hierarchical structure with many management layers o Promoted based on Seniority, division size, and not opportunity, discovery or development. It was always those who were around for a while who were promoted, not those with new good ideas (from the entrepreneur for example)
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This note was uploaded on 06/03/2009 for the course ECON 290 taught by Professor Goldenandallison during the Fall '08 term at Allegheny.

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9-11-08 - Entrepreneurship Class Notes 9/11/08 I....

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