9-16-08 - Entrepreneurship I Class Notes 9/16/08 Takahiro...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Entrepreneurship I – Class Notes – 9/16/08 Takahiro Naraki Close to a nervous breakdown, close to exhaustion His family is afraid that he was going to die What did he own? o Taka owned BIP Limited Taka was selling for a printing company Was it unusual in Japan that such a young entrepreneur would start a company? o YES – why? There was deflation in Japan Byproduct of World War II There was a lot of regulation There weren’t a lot of VC’s or angel investors Government regulation You couldn’t own preferred stock until 1998 How do they get seasoned execs to join a company? Offer stock option Preferred stock “Preferences” – liquidation preferences o If you put in 10 million – Preferred stock – if the company fails, you’re the first one to get your money Problem: Japanese companies couldn’t offer stock options to execs o Not so here in the U.S Steve Jobs was in his 20s Stock options – performance incentive o Work hard to make the company better to increase the value of the stock o Systemic advantages for entrepreneurs here in the U.S Stock options Angel investors Venture capitalists
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Japan o Big part of culture which might stifle entrepreneurs Business failure – shameful Taka doesn’t have the corporate standing Implications of failure are REALLY HIGH in Japan o What are the main characteristics of being an entrepreneur? Tolerant to Risk One basic requirement for starting a business o 3 million yen $25,000 USD o Why do they have this requirement? Better chance of success if you have some capital Not very much money to start a business o Average amount of capital to start a business in the U.S $20,000 Main sources: o Your own sources o Friends and family o Credit Cards What was Taka’s first company? International Trading company o Negotiating, importing o This business failed – why? There are regulatory restraints How much money are they making on each deal? VERY LITTLE
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/03/2009 for the course ECON 290 taught by Professor Goldenandallison during the Fall '08 term at Allegheny.

Page1 / 9

9-16-08 - Entrepreneurship I Class Notes 9/16/08 Takahiro...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online