Introduction to Entrepreneurship MBAX 6100 Entrepreneurship & Small Business Management Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado

Introduction to Entrepreneurship Today’s Agenda  Introductions  Course organization  Nature of entrepreneurship  Role in society  Defining Entrepreneurship  NREL visit 2/2 Friday 1:30pm

Introduction to Entrepreneurship Objectives of the Course  Learn how to recognize and evaluate business opportunities  Understand the issues faced by entrepreneurs who want to start their own business.  Acquire skills and tools required to start a business.   Determine your own potential to be an entrepreneur

Introduction to Entrepreneurship Really Understand  What is a compelling Opportunity/Need  How to determine the Value Proposition  Product/Service  Target market  Unique benefit  What is a sustainable Competitive Advantage

Introduction to Entrepreneurship Required Materials  Bygrave & Zacharakis, The Portable MBA in Entrepreneurship  Mullins, The New Business Road Test  Kawasaki, The Art of the Start   Course Packet  Hand-outs in class: various articles and reading materials

Introduction to Entrepreneurship Communications   Office Hours: Business Room 328A  Monday 4:00to 6:00pm  Wednesday 4:00 to 5:30  And by appointment  Website:  Communications: List Serve

Introduction to Entrepreneurship Course Organization  Readings: entrepreneurship concepts, practices and tools  Case studies  Speakers  Evaluation & grading  2 projects  Entrepreneur interview  Feasibility Plan  Mid-term exam  Class participation  Expectations

Introduction to Entrepreneurship Course Topics  What is entrepreneurship  Recognizing good opportunities  Corporate entrepreneurship  Funding entrepreneurial ventures  Legal issues & term sheets  Managing growth  Harvesting  Entrepreneurial ethics

Introduction to Entrepreneurship What is Entrepreneurship?

Introduction to Entrepreneurship Historical Definition French term: people who provide men and materials to feudal lords.

Introduction to Entrepreneurship Timmons's Definition “Entrepreneurship is creating and building something of value from practically nothing. That is, entrepreneurship is the process of creating or seizing an opportunity and pursuing it, regardless of resources presently controlled.” “Entrepreneurship is creating and building something of value from practically nothing. That is, entrepreneurship is the process of creating or seizing an opportunity and pursuing it, regardless of resources presently controlled.” Jeffrey Timmons

Introduction to Entrepreneurship Timmons's Definition “Entrepreneurship is creating and building something of value from practically nothing. That is, entrepreneurship is the process of creating or seizing an opportunity and pursuing it,regardless of resources presently controlled.” “Entrepreneurship is creating and building something of value from practically nothing. That is, entrepreneurship is the process of creating or seizing an opportunity and pursuing it,regardless of resources presently controlled.” Jeffrey Timmons

Introduction to Entrepreneurship Economist’s Definition  “The entrepreneur is the innovator who implements change within markets through the carrying out of new combinations.” Schumpeter(1934)  Later he calls it “creative destruction”.

Introduction to Entrepreneurship Poetic Definition “Entrepreneurship is a state on mind, an artful, insightful, and innovative mentality, not simply ‘business administration’; it is a way of perceiving and exploiting opportunities wherever they may be found.” “Entrepreneurship is a state on mind, an artful, insightful, and innovative mentality, not simply ‘business administration’; it is a way of perceiving and exploiting opportunities wherever they may be found.” Unknown Source

Introduction to Entrepreneurship Poetic Definition “Entrepreneurship is a state on mind, an artful, insightful, and innovative mentality, not simply ‘business administration’; it is a way of perceiving and exploiting opportunities wherever they may be found.” “Entrepreneurship is a state on mind, an artful, insightful, and innovative mentality, not simply ‘business administration’; it is a way of perceiving and exploiting opportunities wherever they may be found.” Unknown Source

Introduction to Entrepreneurship Corporate Entrepreneurship  “Formal or informal activities aimed at creating new businesses in established companies through product and process innovations and market developments.” Zahra  “…centers on reenergizing and enhancing the firm’s ability to acquire innovative skulls and capabilities.” Morris & Kuratko  “Cost-effective innovation or intrapreneurship” Pinchot

Introduction to Entrepreneurship Who Are Entrepreneurs?

Introduction to Entrepreneurship Entrepreneurial Characteristics  Creativity  Risk-taking  Need for achievement  Sense of independence  Internal locus of control  Tolerance for ambiguity

Introduction to Entrepreneurship Who Are Entrepreneurs? “ Some are eccentrics; some painfully correct nonconformists; some are fat, some are lean; some are warriors, some relaxed; some drink quite heavily, others abstain; some have great charm or warmth; some have no more personality than a frozen mackerel.” “ Some are eccentrics; some painfully correct nonconformists; some are fat, some are lean; some are warriors, some relaxed; some drink quite heavily, others abstain; some have great charm or warmth; some have no more personality than a frozen mackerel.” Peter Drucker

Introduction to Entrepreneurship Who Are Entrepreneurs? “Entrepreneurs are societies rejects, instead of becoming hobos, criminals or professors, the start their own business.” Thereau “Entrepreneurs are societies rejects, instead of becoming hobos, criminals or professors, the start their own business.” Thereau

Introduction to Entrepreneurship How Does Start-up Process Really Work?

Entrepreneurial Process Inspiration Goals Plan Fooling Around Doing Plans Mistakes Failure Goals Some Other Action Plan Action Goals Inspiration Success Pinchot & Pellman, Intrapreneurship in Action

Introduction to Entrepreneurship Entrepreneurship Conclusion  Opportunity driven  Entrepreneurial characteristics, but no E-gene  Mindset  Messy

Introduction to Entrepreneurship Next Class Tuesday Section  Entrepreneurial Manager  Assignment:  Read B-Z Chapter 1 - The Entrepreneurial Process  Read M Chapter 6 – Mission, Personal Aspirations & Risk Propensity  Read K-1 Chapter 1 – The Art of Starting  Crunch case study – read & answer questions  Questions for next week - Think of an entrepreneur that you know personally. What makes him or her an entrepreneur?