1. © Inge Hill Start Up, Palgrave 2015, Chapter Two

2. Personal Career Paths and Motives to Start an Enterprise
CHAPTER 2
Personal Career Paths and Motives to Start an Enterprise
© Inge Hill Start Up, Palgrave 2015

3. Implementing the cube faces Evaluation and Strategy
© Inge Hill Start Up, Palgrave 2015

4. © Inge Hill Start Up, Palgrave 2015
Learning outcomes
Identify reasons for an increasing need to have Start Up skills and who starts new (social) ventures
Explore motives to start a new venture
Discuss traits of successful (social) entrepreneurs
Examine reasons why businesses / start-ups fail
Assess your skills and knowledge around new venture creation
Illustrate the application of the principle / practice of sustainability
Forms of business support helping to start new ventures
© Inge Hill Start Up, Palgrave 2015

5. Who starts new ventures? Some stats:
Around 3 % of year olds in the UK in 2013 (not much changed since 2001) Department for Business and Skills, 2014a)
5.6 % of all women in the UK
© Inge Hill Start Up, Palgrave 2015

6. Who starts social enterprises? Statistics for the UK for 2013
Highest start-up rate – those under 30 years – 27 % compared to 20 % of general population
More women leaders in social enterprises (38%) than in other businesses
Most social enterprise leaders (58 %) are between 44 and 65 years
© Inge Hill Start Up, Palgrave 2015

7. Why businesses close down…
Not paying taxes
Not getting sufficient funding
Unrealistic goals and expectations
Lack of (appropriate) market research
Ignoring threats and risks
Personal burn-out
Limited knowledge and skills of founder(s) and managers in
Business planning, financial forecasting, business modelling, supplier selection and management, marketing, business management, and many more
© Inge Hill Start Up, Palgrave 2015

8. Why graduates / students close business start-ups (Yusuf, 2012)
Exploring other opportunities that seem more exciting (new start-up, job, formal education)
Calculating possibility to achieve set goals as unlikely
Acting on negative concerns of family and close friends on image of start-up’ers
© Inge Hill Start Up, Palgrave 2015

9. Business birth and death rates for selected industry sectors
© Inge Hill Start Up, Palgrave 2015

10. Fast moving economies and changing expectations towards careers
Economies change
Career aspirations change
Industries close down due to products being replaced by better / different technology
More flexible working, also across time-zones / internationally
To reduce cost more use of freelancers / less salaried staff
Demands for better work-life-balance
More women work full-time and want to earn a decent living
More sharing of care responsibilities between parents
Personal values need to match business values and behaviours
© Inge Hill Start Up, Palgrave 2015

11. Motivations to start businesses - push and pull factors
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12. Motivation in context (based on Jayawarna et al., 2011)
Family context
Household life course
Business life course
Social belonging / structures
Motivation contexts
© Inge Hill Start Up, Palgrave 2015

13. Motivations to start social enterprises
Creating change in society
Greenpeace, UnLtd., School of Social Entrepreneurs
Creating social wealth for communities
Age charities, UK: Age UK (formerly Age Concern)
Spotting a market failure of commercial ventures and addressing it to promote / create social equality
Vision / belief in a social mission to make a difference
Improving career prospects for young male offenders – Jamie Oliver with restaurant Fifteen
Addressing a need of a particular group in society / for the environment
Amnesty International, Ashoka
Improving the quality of life for a specific group
Children in hospitals
© Inge Hill Start Up, Palgrave 2015

14. Traits of (social) entrepreneurs
All entrepreneurs
Only social entrepreneurs
Social change agents
Visionaries and realists with a mission they commit their life to
Building networks / communities around them
Innovative solutions offered to society’s most pressing problems
Persistent, ambitious, innovative, tenacious
Interested in financial and social return
Determined, driven,
Need for achievement and independence
Tolerant of some uncertainty
Proactive, decisive
Self-motivated, flexible
Prefer internal locus of control
Willing to take calculated risks
© Inge Hill Start Up, Palgrave 2015

15. Implementing the practice of sustainability with self-assessment
© Inge Hill Start Up, Palgrave 2015

16. Essential skills and knowledge areas for sustainable start-ups
Financial skills and knowledge
Market and industry knowledge
Skills in
Research
Sales
Marketing
Leadership
People management
Self-management
Communication
Networking
Administration
© Inge Hill Start Up, Palgrave 2015

17. Scales for assessing your skills
© Inge Hill Start Up, Palgrave 2015

18. Business support types and value added / limitations
Coaching and mentoring
High impact – higher survival rate, quicker growth, increased self-confidence of mentee, better implementation of strategic decision
Membership networks – same / different profession
BNI, Business over Breakfast BoP
Formal business support
Charities, government agencies, paid consultants
© Inge Hill Start Up, Palgrave 2015

19. Business support types and value added / limitations
Networking events with speakers
Informal, choose and select what you like, no systematic support for what you need
Training in business skills
Finance, marketing, researching markets
Increasing knowledge and skills – often not long lasting effect
© Inge Hill Start Up, Palgrave 2015

20. Funding combined with support
Incubator – face-to-face or virtual
Nurturing environment for start-ups
Hot desking, meeting rooms, training, mentors, easy networking with other start-ups
Can have industry focus, such as creative industries
Accelerator – for high growth start-ups of teams
Grants given out and shares (5-15 %) taken by organisation running it
Support programme and mentor / further investment
Business Angels
Significant shares taken in return for investment
Personal support and coaching by business angels / their staff
© Inge Hill Start Up, Palgrave 2015

21. Funding combined with support social enterprises UK / US
Ahshoka / US
Fellowship, networks, funding for particular projects by established social entrepreneurs
UnLtd., UK
Three types of funding - for start-ups to established
Training and networks
School of Social Entrepreneurs, UK
© Inge Hill Start Up, Palgrave 2015

22. © Inge Hill Start Up, Palgrave 2015
Questions?
© Inge Hill Start Up, Palgrave 2015