Introduction to MGT 667 (1) Instructor Silvia Dorado (M 5 223) Course materials: –Reader Office hours: MW 2:00 to 4:00 pm. Right after class. Appointment

Introduction to MGT 470 (2) Assignments –25% Participation (presentation, assistance, participation) –25% Midterm (November 2) –50% Project ( it is grade 60% I will not grade the lowest) –Extra credit: Interview with entrepreneur (October 5)

Project (50% grade) Option 1 (individual or group of max 3): Business plan innovative business idea Option 2 (individual): Feasibility plan innovative business idea

Option 1 Part I: Product or service (5%) Part II: Marketing plan (10%) Part III: Management plan (10%) Part IV: Financial plan (10%) Part V: Operational plan (10%) Final Business plan (15%) – 5% presentation

Option 2 Part I: Product or service (5%) Part II: Market (10%) Part III: Price and profitability (10%) Part IV: Plan for further action (10%) Part V: Executive summary (10%) Final feasibility plan (15%) – 5% presentation

BINGO

Entrepreneurial process Identify and evaluate the opportunity Develop business plan Resources required Manage the enterprise

Personal assessment Business assessment Business plan Too risky? Opportunity

Personal assessment: Entrepreneurial Skills Thrives on ambiguity Locus of control: Accepts responsibility Desire Initiative/Aggressiveness Low support needs Perseverance Problem solver Persuasiveness Self-discipline Self-confidence Knows value of money © 2004 Ewing Marion Kauffman Foundation Market awareness Energy Ego development

Personal assessment: Values Job security Money Lifestyle Power Age Health Family considerations Location Investment Attitudes and values

Business assessment Size and growth Sources of money Position in system Ownership and control Legal strategy Compensation Tax strategy

Business plan helps to Develop the opportunity Determine the resources required Obtain the resources required Manage the venture

Risk Issues Fear of the unknown Employee’s risk Entrepreneur’s risk Personal and financial failure Strategies for reducing risk © 2004 Ewing Marion Kauffman Foundation

Entrepreneurs v. inventors “…an entrepreneur falls in love with the organization (the new venture) and will do almost anything to ensure its survival and growth, an inventor falls in love with the invention and will only reluctantly modify it to make it more commercially feasible.”

Entrepreneurs v. Managers Primary motives (control v. promotion, power) Time orientation (long term v. short term) Activity (involved v. delegates) Risk status (moderation v. careful) Failure and mistakes (deals with v. avoids) Decisions Who serves (self and customers v. others) Family history Relationship with others (transactions v. hierarchy)

Entrepreneurship quiz Number of businesses in the United States? Number of employers in the United States? Number of employers <100? Number of corporations in the United States? Number of IPOs?

Entrepreneurship answers Number of businesses in the United States? 22.7 mill. in 2003 Number of employers in the United States? 5.66 mill. in 2001 (SBA) Number of employers <100? 5.56 mill. in 2001 (SBA) Number of corporations in the United States? 4.5 in 1995 (usinfo.state.gov) Number of IPOs?: 233 (Dec. 2004) (redherring.com)