1. MIT-AITI Entrepreneurship Lecture 2: The entrepreneurial mindset © Eston Kimani 2004 – MIT-AITI President

2. Lessons Entrepreneurship Mindset Based on Jeff Bezos, the founder of the online bookstore, Amazon.com Brief profiles of entrepreneurs Group assignment Personal assignment

3. The entrepreneurial mindset An entrepreneur sees needs, problems and challenges as opportunities and devises innovative ways to solve the problems. An entrepreneur realizes that s/he is in the business of creating value. An entrepreneur thinks/learns ahead and take advantage of opportunities ahead of everybody else. An entrepreneur is a visionary and a leader

4. Views needs as an opportunity An entrepreneur sees the problems/needs around her and sees opportunities to make profits or create value. Needs and problems are a blessing to the entrepreneur! Example: –Your thirst problem is Coca-Cola’s opportunity to sell you soft drinks

6. Innovative ways to solve problems An entrepreneur is a skilled problem solver and uses the resources around him to solve problems. Example: Jeff Bezos, the founder of Amazon.com solved a problem for people who have used books but don’t know what to do with them. He created a website that allowed such people to meet online to sell used books to each other. He expanded the idea and created a billion dollar company.

7. Jeff Bezos, Founder Amazon.com

8. Entrepreneurs create value Entrepreneurs create value by: –Increasing the number of customers served by their product or service –Reducing the costs of a business –Improving on the quality of products and services

9. How Amazon.com creates value Being online allows anybody with an Internet access and a credit card to use it After initial success with book swapping, it started providing more services to members by selling new books and electronics The website is one of the most customer friendly sites on the web

10. Amazon.com vs. a Bookstore Amazon.com is online and open 24/7. Anyone who has access to the internet and a credit card is a potential customer. Amazon has automated customer handling processes – needs less employees and so has lower costs Amazon has millions of book titles and you can find almost any book you’d want from them

11. A forward thinker In 1994, Jeff Bezos noticed that the world was changing and the Internet was growing very fast. He decided to completely dedicate his time, by quitting is job, in trying to take full advantage of the new technologic.

12. Can Do attitude An entrepreneur is a dreamer, an optimist, a strategist, and a very hard worker. S/He is willing to take attempt new things and take risks. Does not quit on a dream or vision even when discouraged or failed. Shows Persistence.

13. A visionary and a leader Entrepreneurs lead and others follow. In the process they generate value for themselves and others. Amazon.com has created value for the millions of customers who use it since it makes it easy for them to find books they need from the comfort of their own home/dorm It has also helped authors to get their books out easily. Now Amazon.com best seller list is becoming a force to be reckoned with And Jeff is $4.8 Billion richer.

14. Entrepreneurs as leaders (TIE) Entrepreneurs are the only source of new wealth and productive jobs in society. Only a small part of the population, 1-2%, of successful entrepreneurs could dramatically improve a society. Throughout history, countries that have nurtured entrepreneurial culture have been the most progressive, successful and dynamic. Entrepreneurs are at the heart of success of modern economies. Society must encourage and reward entrepreneurial activities Source: TIE: The Indus Entrepreneurs

15. Entrepreneurs as risk takers Successful entrepreneurs are not afraid of failure. They acknowledge the possibility failure and prepare for it. However, if they fail they can quickly learn from their mistakes And try again! Jeff Bezos quit his well paying job in order to begin Amazon.com without any guarantees of success.

16. Entrepreneurs as visionaries Jeff Bezos reads about the huge growth rate of the web. He makes a list of 20 commodities that he could sell on the net Settles on books since they are many book titles and could be easily sold electronically and sorted out As business grows, he starts selling CDs and DVDs Eventually he adds toys, clothes etc. Amazon now has 39 million customers, including Jamal.

17. Michael Dell - Computers Founded the largest PC maker in the world out of his dorm room in college. Built a personal worth of more than $20 Billion US and inspired millions of entrepreneurs. At 15 years he tore up a computer and put it back together Started selling computer parts to his friends and then grew the business

18. P. Diddy – Entertainment etc. After a successful music career ventured into many businesses using his celebrity status as a resource Interests: Sean-John Clothing Company Bad Boy Productions Restaurants Studios Very creative and versatile entrepreneur and has managed to create a huge net worth and is active in his community

19. Kase Lawal – Oil industry Nigerian-American entrepreneur in the Oil and Gas exploration industry Camac Holdings has revenues of more than $1billion per year

20. Oprah Winfrey – Harpo productions Talk Show host with the Oprah Winfrey show O-Magazine Oxygen Media Personal value of more than $1billion dollars She’s turned the business of counseling into major business

21. Warren Buffett - Investor Warren Buffett has been given the title of the world’s greatest investor He is Chairman and CEO of Berkshire Hathaway an investment company which buys businesses and then increases their value Buffett is the second richest man in the world with a net worth of over $40billion US He has built his empire slow but steady using time tested investment principles

22. Group Assignment Identify a successful entrepreneur. How did the entrepreneur create value? How did the entrepreneur use the resources around her/him to satisfy needs or solve problems?

23. Personal Assignment Write a one page article about an entrepreneur that you admire. In the article answer the following questions. What business is the entrepreneur in? How did she/he get started? What particular thing/traits do you like about the entrepreneur?

24. Group Assignment Identify an Ethiopian/African celebrity that you know. What do people associate her/him with? Which kind of products would you try to market using his/her name?

25. Personal Assignment As part of this assignment, write a more detailed answer to your group’s assignment. One page assignment. Identify an Ethiopian/African celebrity that you could use to market your goods Explain how much value you would expect to derive from using his/her name. Why is using those specific goods the most efficient way of using the celebrity’s status? Could someone else do better than you by choosing other goods?