Entrepreneurship Results Entre prene urship Value Creation Enhancement Realization Renewal Owners Partici pants Stake Holder
Entrepreneurship Process Oppor tunity Creation/ Recognition Will / Initiative to seize Will to take Risk Balancing Risk and Reward Strategy to marshall resources
Entrepreneur Role EP Role Inject Imagi- nation Motiva tion Commit ment Passion Tena city Inte grity Team work Vision Face Dilemmas & Make Decision
Classic Entrepreneurship: The Startup Classic expression of EP is the raw startup company, an innovative idea that develops into a high growth company. Legend of Microsoft, Netscape, Amazone.com, Sun Microsystems, etc. Key Success Factors: Strong leadership, teamwork building, opportunity sensitivity; skill and ingenuity to find and control resources.
Entrepreneurship in Post Brontosaurus Capitalism: Beyond Startup IBM (vs Appe Computer, Microsoft) DEC (vs Apple Computer, Compaq Computer) AT&T (vs MCI, McCaw Communications, Inc., Cellular One) Lost 900,000 jobs. Emerge New 4.3 million jobs and $736 billion by venture capital investment.
People Don’t Want to Be Managed. They Want to Be Led. Perusahaan Besar cenderung hierarkhis dan birokratis Lambat menyikapi perubahan. Perusahaan Entrepreneurship lebih fleksibel, cepat menyikapi perubahan
Company Life Cycle MatureOldDecayStartGrow EP SEED, NEW BUSINESS, DIVERSIFICATION
INTI SARI TOKO BUKU PENER BIT CETAK KOM PAS PENER BIT LAIN2 HOTEL TISSU UMN
The Wind of Change Social Politic Economy (and Finance) Culture War (Defence) International Affair Technology
Wind of Change Example: KOMPAS POLITIK (PKI, PEMBREDELAN) TEKNOLOGI (SETTING, KOMPUTER, DTP, INTERNET, CONVERGENCE) SOCIAL (MONITOR CASE) ECONOMY (MONETARY CRISIS) CULTURE (TRADITIONAL, MODERN, INTERNET)
KOMPAS DIGITAL TRANSFORMATION KOMPAS.COM E-ZINE E-BOOK
PARADOX OF ENTREPRENEURSHIP An opportunity with no or very low potential can be an enormously big opportunity. E.g. Steve Jobs and Steve Wozniak (Founder of Apple Computer Corp.) reveal an idea of Desktop PC. To make money you have to first lose money. To create and build wealth one must relinquish wealth.
PARADOX OF ENTREPRENEURSHIP To succeed, one first has to experience failure. Entrepreneurship requires considerable thought preparation, and planning, yet is basically an unplannable event. For creativity and innovativeness to prosper, rigor and discipline must accompany the process.
PARADOX OF ENTREPRENEURSHIP Entrepreneurship requires a bias toward action and a sense of urgency, but also demands patience and perseverance. The greater the organizatin, orderliness, discipline, and control, the less you will control your ultimate destiny.
PARADOX OF ENTREPRENEURSHIP Adhering to management best practice, especially staying close to the customer that created industry leaders in the 1980s, became a seed of self-destruction and loss of leadership to upstart competitors. To realize long-term equity value, you have to forgo the temptations of short-term profitability.
Think Big Enough Don’t set up too small business. Smaller means higher failure. – Contoh: Internet Café, Digital Printing di satu tempat saja Threshold Concept: At least people, with US$2 -3 million revenue Think about growth and equity.
Time for New Technologies to Reach 25% of USA Population Household electricity (1873)46 years Telephone (1875)35 years Automobile (1885)55 years Airplane Travel (1903)54 years Radio (1906)22 years Television (1925)26 years Video Cassette Rec (1952)34 years Personal Computer (1975)15 years Celular Phone (1990)13 years Internet (1994)7 years
Timmons Model of the Entrepreneurial Process TEAM OPPOR TUNITY RESOU RCES COMMUNICATION LEADERSHIP CREATIVITY EXOGEN FORCES CAPITAL MARKET CONTEXT AMBIGUITY UNCERTAINTY BUSINESS PLAN FITS & GAPS FOUNDERS SUSTAINABILITY : FOR ENVIRONMENT, COMMUNITY AND SOCIETY
OPPORTUNITY (Market Segment) Market demand is a key ingredient to measure an opportunity: – Is customer payback less than one year? – Do market share and growth potential equal 20% annual growth and is it durable? – Is the customer reachable?
OPPORTUNITY (Market Segment) Market structure and size help define an opportunity: – Emerging and/or fragmented? – $50 million or more, with a $1 billion potential? – Proprietary barriers to entry?
OPPORTUNITY (Market Segment) Margin analysis helps differentiate an opportunity from an idea – Low cost provider (40% gross margin)? – Low capital requirements vs the competetion? – Break even in 1 – 2 year? – Value added increase of overall corporate P/E ratio?
RESOURCES Bootstrapping – Minimize and control vs maximize and Own Relationship – Unleashing Creativity Financial Resources Assets People Your Business Plan Think cash last
TEAM Critical Ingredient for Success An Entrepreneurial Leader – Learn and teach (faster is better) – Deal with adversity (resilient) – Exhibit integrity, dependability, honesty – Build entrepreneurial culture and organization
QUALITY OF THE TEAM Relevance experience and track record Motivation to excel Commitment, determination, and persistence Tolerance of risk, ambiguity and uncertainty Creativity Team locus of control Adaptability Opportunity obssesion Leadership and courage Communication