1. MBAX 6100 Entrepreneurship & Small Business Management
Frank Moyes Leeds College of Business
University of Colorado Boulder, Colorado
“Progress depends upon unreasonable men.”
GB Shaw
Entrepreneurial Mind

2. Today’s Agenda Entrepreneurial Manager Case: Crunch
Discussion of venture ideas
Tech transfer
Other
Yours
Entrepreneur Interview
Traits of entrepreneurs are closest to juvenile delinquents
Entrepreneurial Mind

3. Entrepreneurial Manager
Characteristics & traits
Different types of entrepreneurs
Failure
Entrepreneurs vs. small business
Entrepreneurial Mind

4. Are There Entrepreneurial Characteristics?
Are There Entrepreneurial Characteristics?
Motivated by achievement
Internal locus of control
Risk-taking
Tolerance for ambiguity
Sense of independence
Passion
Motivated by achievement – money to keep score
Internal locus of control – believe can change the environment (market, workplace, industry)
Risk-taking – calculated assessed risk and attempts to mitigate and manage
Tolerance for ambiguity – nature of the situation, not poor planning
Sense of independence – self motivated, perseverance
Passion – to get through the hard times
Entrepreneurial Mind

5. Commitment
“Until one is committed, there is hesitancy, the chance to draw back, always ineffectiveness. Concerning all acts of initiative and creation there is one elementary truth, the ignorance of which kills countless ideas and splendid plans:
That the moment one definitely commits oneself, Providence moves too. All sorts of things occur to help one that would never other wise have occurred. A whole stream of events issue from the decision, raising in one’s favor all manner of unforeseen incidents and meetings and material assistance, which no man could have dreamed would have come his way. Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it.”
Goethe’s Faust.
Entrepreneurial Mind

6. What Skills & Knowledge Are Required?
What Skills & Knowledge Are Required?
Creativity
Business knowledge
Industry knowledge
Critical thinking
Relationships
Networks (Allen p 29)
Strong ties – close friends and family members
Tend to restrict E because they to look at impact on them
Weak ties – acquaintances and business contacts
Unbiased with prior history with the E
Who is the best place to ask for advice?
“Traits of entrepreneurs are closest to juvenile delinquents.”
Entrepreneurial Mind

7. What Assets are Required?
What Assets are Required?
Network
Supporting spouse
Financial resources
Optimism
Creativity
Business knowledge
Critical thinking
Relationships
Entrepreneurial Mind

8. What Non-Entrepreneurial Traits Should Be Avoided?
What Non-Entrepreneurial Traits Should Be Avoided?
Invulnerability
Being Macho
Being Authoritarian
Impulsivity
Outer control
Perfectionist
Know it all
Counterdepency
Timmons: New Venture Creation
Entrepreneurial Mind

9. Types of Entrepreneurs
Types of Entrepreneurs
Personal achiever
Super-salesperson
Real manager
Expert Idea Generator
JB Minor, Four Routes to Entrepreneurial Success
Entrepreneurial Mind

10. Personal Achiever (classic entrepreneur)
Need for high achievement
Need for performance feedback
Desire to plan and set goals
Strong individual initiative
Strong personal commitment
Internal locus of control
JB Minor, Four Routes to Entrepreneurial Success
Entrepreneurial Mind

11. Super-Salesperson (caters to needs of customers)
Capacity to empathize
Social interaction and relationships are important
Need to have strong positive relationships with others
Sales force is critical
Background: less education, more experience
JB Minor, Four Routes to Entrepreneurial Success
Entrepreneurial Mind

12. Real Manager (grow the venture)
Desire to be corporate leader
Desire to compete
Decisive
Desire of power
Desire to stand out in a crowd
JB Minor, Four Routes to Entrepreneurial Success
Entrepreneurial Mind

13. Expert Idea Generator (expertise + creativity = innovator)
Expert Idea Generator (expertise + creativity = innovator)
Desire to innovate
Love of ideas, curious
Belief that new products are crucial
Intelligence is the competitive advantage
Desire to avoid taking risks
JB Minor, Four Routes to Entrepreneurial Success
Entrepreneurial Mind

14. Types of Entrepreneurs
Types of Entrepreneurs
Personal Achiever
Super-Salesperson
Real Manager
Expert Idea Generator
Are there others?
Why would each of these fail?
Personal achiever – goal driven, not flexible, don’t ask for advice, won’t listen
Super-salesperson – sales oriented, not cash driven, don’t understand profitability, make tough decisions
Real manager - Tendency to over-manage in early stage, can he/she be creative
Expert Idea Generator – becomes enamored with the technology, must be perfect
Entrepreneurial Mind

15. Different Methods Used to Build Ventures
Independent innovators
Pattern multipliers – expand concept through franchise or chains
Speculator – buy and leverage, e.g. land
Consolidator – industry roll up
Acquirers
Speculators
Arbitrageur – buy low and sell high
K Vesper, New Venture Strategies
Entrepreneurial Mind

16. What Is Intrapreneurship?
Takes hands-on responsibility for creating innovation with in an organization
“Create or develop entrepreneurship within corporate boundaries, thereby allowing an atmosphere of innovation to prosper.”
Kuratko & Hodgetts, Entrepreneurship
Entrepreneurial Mind

17. Entrepreneurs vs. Small Business?
Value-creating through innovation
Creates new jobs; doesn’t’ draw from existing businesses
Serving underserved niches
Growth oriented: sees business as regional, national or international
New means to an end
Disrupt the economic equilibrium; results in new ideas, new businesses and new industries.
Entrepreneurial Mind

18. Do You Have the Right Stuff?
Do You Have the Right Stuff?
Are you a self starter?
Can you go 6 months to 2 years without getting paid?
Are you willing to give up vacations, weekends and evenings?
Are you a decision maker?
Are you a people person?
Do you handle rejection well?
Do you think will on your feet?
Do you like to sell?
Do you handle crisis well?
Would you be able to fire someone?
Do you want total responsibility and accountability?
Entrepreneurial Mind
MD Csordos, 35 Business Lessons for Entrepreneurs

19. Just Do It
“Millions of people have “an idea”, but unless they do something with it, their ideas aren’t worth a damn. There are a lot of quacks and kooks out there who claim they invented the Weed Eater, and I don’t doubt that there are some people who genuinely thought of this idea--but what did they do with it? Nothing.
What do they deserve? Nothing.”
George C. Ballas, inventor of Weed Eater
Entrepreneurial Mind

20. Next Week’s Class Opportunity Recognition Feasibility Plan
Select team of 2-3 students
Case: ICEDELIGHTS
Questions to think about for next week
What is the difference between an idea & an opportunity?
What opportunities do you think would make a good basis for a feasibility plan?
Entrepreneurial Mind

21. Traits
Misfits: traits of entrepreneurs are closest to juvenile delinquents
I have discovered that all human evil comes from this, man’s being unable to sit still in a room. Blaise Pascal, philosopher and mathematician
“Progress depends upon unreasonable men.” GB Shaw
Entrepreneurs typically work half days. 12 hours
“The greatest difficulty in the world is not for people to accept new ideas, but to forget old ones.” John Maynard Keynes
“If I’m in control, I’m probably going to slow.” Mario Andretti
A man who wants to lead an orchestra must turn his back to the crowd.
Entrepreneurial Mind