What is Entrepreneurship? Cheolsoo Ahn, MD, PhD, MSE, MBA Dean / Professor of Entrepreneurship Graduate School of Convergence Science & Technology Seoul National University

Overview 1. What is Entrepreneurship? 2. Who are they? 3. Why do they do that?

Ⅰ. What is Entrepreneurship?

What is an “Entrepreneur”? 1. 企業家 2. 起業家 3. 機業家

What is an “Entrepreneur”? Merriam-Webster’s online dictionary: one who organizes, manages, and assumes the risks of a business or enterprise Merriam-Webster’s online dictionary: one who organizes, manages, and assumes the risks of a business or enterprise Wikipedia: a person who has possession over a company, enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome Wikipedia: a person who has possession over a company, enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome

What is an “Entrepreneur”? 1. Starting new organizations or revitalizing mature organizations - the same in terms of mindset - the same in terms of mindset 2. Making his/her own decisions and being responsible for the consequences 3. Having ownership (in most cases)

What is “Entrepreneurship”? Wikipedia: the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities Wikipedia: the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities In short, entrepreneurship is entrepreneurial activities/practices In short, entrepreneurship is entrepreneurial activities/practices

Entrepreneur vs. Businessperson ‘Businessperson’ is more broad term ‘Businessperson’ is more broad term – Do not have to start new organizations or revitalize mature organizations – Do not have to have ownership

Ⅱ. Who is an Entrepreneur?

Which part is true? A typical entrepreneur is a risk taker, good at strategy and planning, and going for quick success. A typical entrepreneur is a risk taker, good at strategy and planning, and going for quick success. 1. Risk taker 2. Good at strategy and planning 3. Going for quick success 4. None of above

Myth about Entrepreneur Risk taker Risk taker Gambler Gambler Thrill seeker Thrill seeker

Fact about Entrepreneur Not afraid of uncertainty because uncertainty brings opportunity with it Not afraid of uncertainty because uncertainty brings opportunity with it Risk manager Risk manager Calculated risk taker Calculated risk taker

Myth about Entrepreneur Great strategist Great strategist Good at planning and foresight Good at planning and foresight Good at writing the great business plan Good at writing the great business plan

Fact about Entrepreneur Opportunistic Opportunistic Adaptive Adaptive

Myth about Entrepreneur Becoming a millionaire in short time Becoming a millionaire in short time

Fact about Entrepreneur Hard-working Hard-working Persistent and tenacious, because it usually takes long time to succeed Persistent and tenacious, because it usually takes long time to succeed – Silicon Valley VCs – ‘Don’t eat the marshmallow yet!’ by Joachim de Posada & Ellen Singer

Which part is true? A typical entrepreneur is a rare-breed with different personality than rest of us and good at social networking. A typical entrepreneur is a rare-breed with different personality than rest of us and good at social networking. 1. Different personality 2. Good at social networking 3. None of above

Myth about Entrepreneur Genius who is born, not made Genius who is born, not made Rare breed Rare breed

Fact about Entrepreneur Much more common Much more common – 11.1% of U.S. households have a self- employed head – 13% of people between the ages of 18 and 74 are in the process of starting a business – More people start a business than get married or have children – 40% of population will be self-employed for some part of their work life

Myth about Entrepreneur Different personalities and a different way of thinking than the rest of us Different personalities and a different way of thinking than the rest of us More passionate, creative, innovative, driven, and optimistic More passionate, creative, innovative, driven, and optimistic

Fact about Entrepreneur A special psychological makeup for entrepreneurs doesn’t exist A special psychological makeup for entrepreneurs doesn’t exist

Myth about Entrepreneur Adept at social networking Adept at social networking ‘What you know is less important than who you know’ ‘What you know is less important than who you know’

Fact about Entrepreneur Being a lone wolf is more common Being a lone wolf is more common

Most Common Age Range for Entrepreneurs? – – – – and above

Myth about Entrepreneur Young person’s game Young person’s game

Fact about Entrepreneur Middle-aged (35 to 44) person is more likely to be an entrepreneur Middle-aged (35 to 44) person is more likely to be an entrepreneur

Which One is More Common? College drop-out vs. College graduate College drop-out vs. College graduate No work experience vs. Some work experience No work experience vs. Some work experience High tech industry vs. Low tech industry High tech industry vs. Low tech industry

Myth about Entrepreneur College drop-out like Bill Gates, Steve Jobs, Michael Dell, Mark Zuckerberg College drop-out like Bill Gates, Steve Jobs, Michael Dell, Mark Zuckerberg

Fact about Entrepreneur

Myth about Entrepreneur Founding a company shortly after he/she graduated college Founding a company shortly after he/she graduated college

Fact about Entrepreneur Work experience increases a person’s chances of starting his/her own business Work experience increases a person’s chances of starting his/her own business

Myth about Entrepreneur High tech industries are breeding ground High tech industries are breeding ground

Fact about Entrepreneur Only 7% of new companies in the U.S. are started in industries that the government defines as high technology Only 7% of new companies in the U.S. are started in industries that the government defines as high technology

Myth about Entrepreneur Going public and building a financial empire (a big company) Going public and building a financial empire (a big company)

Fact about Entrepreneur There are many colors and shapes There are many colors and shapes – One-person company – Technology start-up – Bricks-and-mortar business – Acquisition of private company – Large corporation (corporate entrepreneur) – Non-profit organization (social entrepreneur)

One-person Company A person who starts an one-person company is an entrepreneur A person who starts an one-person company is an entrepreneur The sizes of organizations or the results have nothing to do with entrepreneurship The sizes of organizations or the results have nothing to do with entrepreneurship (If you are interested in how-to, please attend other classes) (If you are interested in how-to, please attend other classes) “We cannot control the results” “We cannot control the results”

Corporate Entrepreneur vs. Employee Corporate Entrepreneurs do not just follow orders as usual employees, but act on their own initiative for their organizations Corporate Entrepreneurs do not just follow orders as usual employees, but act on their own initiative for their organizations

Summary: Who is an Entrepreneur? No stereotype No stereotype Heterogeneity in terms of personalities, backgrounds, skills, opportunities, and approaches to exploiting opportunities Heterogeneity in terms of personalities, backgrounds, skills, opportunities, and approaches to exploiting opportunities

Ⅲ. Why does an Entrepreneur do things?

Myth about Entrepreneur Main goal is to make money Main goal is to make money

Fact about Entrepreneur Main goal is to do something he/she loves Main goal is to do something he/she loves – What about other professions? To be independent To be independent

Defining Success Every entrepreneur’s definition of success is different and personal Every entrepreneur’s definition of success is different and personal You should define your own success You should define your own success Success is a journey, not a destination Success is a journey, not a destination – ‘The Monk and the Riddle’ by Randy Komisar

Defining Success Feeling a sense of purpose or direction in what you are doing Feeling a sense of purpose or direction in what you are doing Being happy with what you are doing Being happy with what you are doing Feel like you are accomplishing something you are good at Feel like you are accomplishing something you are good at Don’t confuse what you are good at with what you like to do Don’t confuse what you are good at with what you like to do

Summary Entrepreneurs are not different from rest of us Entrepreneurs are not different from rest of us There is no stereotype There is no stereotype They do things they love. They do things they love. Entrepreneurial character Entrepreneurial character – Risk management – Adaptiveness – Persistence – etc

Thank you.