MBAX 6100 Entrepreneurship

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MBAX 6100Entrepreneurship Small Business
Management

• Frank MoyesLeeds College of Business
• University of ColoradoBoulder, Colorado

• Progress depends upon unreasonable men.
• GB Shaw

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Todays Agenda

• Entrepreneurial Manager
• Case Crunch
• Entrepreneur Interview

• Traits of entrepreneurs are closest to juvenile
  delinquents

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Entrepreneur Interview

• Choose person in an area of interest
• 3 years in business, 5 employees
• See website for assignment questionnaire
• Visit their office or facility
• Observe/talk to customers
• In depth interview get beyond the hype and
  self-promotion
• Take one hour after interview to draw conclusions

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Interview Paper

• Write a 6-page 1.5 spaced paper
• Describes the entrepreneurs background,
  motivations for starting the venture, challenges
  in growing the venture
• Evaluates the value proposition (target market,
  product/service description and unique benefit)
• Conclusion what makes the company successful
  (or not)? What are your recommendations for
  improvement?
• Discuss how the findings of the interview apply
  or are meaningful to you. What have you learned
  about your own potential to be an entrepreneur?
• Objective is to drill down into the company and
  thoroughly understand the entrepreneur and how
  s/he does business

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Entrepreneurial Manager

• Characteristics traits
• Different types of entrepreneurs
• Failure
• Entrepreneurs vs. small business

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Are There Entrepreneurial Characteristics?
0

• Motivated by achievement
• Innovation creativity
• Internal locus of control
• Risk-taking
• Tolerance for ambiguity
• Sense of independence
• Passion

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What Skills Knowledge Are Required?
0

• Creativity
• Business knowledge
• Industry knowledge
• Critical thinking
• Relationships

• Traits of entrepreneurs are closest to juvenile
  delinquents.

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What Assets are Required?
0

• Network
• Supporting spouse
• Financial resources
• Optimism

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What Non-Entrepreneurial Traits Should Be Avoided?
0

• Invulnerability
• Being Macho
• Being Authoritarian
• Impulsivity
• Outer control
• Perfectionist
• Know it all
• Counterdepency

Timmons New Venture Creation
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Types of Entrepreneurs
0

• Personal achiever
• Super-salesperson
• Real manager
• Expert Idea Generator

JB Minor, Four Routes to Entrepreneurial Success
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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
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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
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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
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Expert Idea Generator (expertise creativity
innovator)
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• 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
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Types of Entrepreneurs
0

• Personal Achiever
• Super-Salesperson
• Real Manager
• Expert Idea Generator
• Are there others?

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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
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Who Are Intrapreneurs?
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Entrepreneurs vs. Small Business?

• Value-creating through innovation
• Creates new jobs doesnt 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.

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Do You Have the Right Stuff?
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• 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?

MD Csordos, 35 Business Lessons for Entrepreneurs
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Just Do It
0
Millions of people have an idea, but unless
they do something with it, their ideas arent
worth a damn. There are a lot of quacks and kooks
out there who claim they invented the Weed Eater,
and I dont 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
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Next Weeks Class

• Entry Strategy
• Read BZ-11
• Case ICEDELIGHTS

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Traits

• Misfits traits of entrepreneurs are closest to
  juvenile delinquents
• I have discovered that all human evil comes from
  this, mans 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 Im in control, Im probably going to slow.
  Mario Andretti
• A man who wants to lead an orchestra must turn
  his back to the crowd.

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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 ones 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.
• Goethes Faust.