Entrepreneurship And MIS Bob Jolly Department of Economics and Agricultural Entrepreneurship Initiative Iowa State University

What does an entrepreneur do? Discovers an unmet need – an opportunity to create value. Commits to meeting the need or solving the problem even though they may lack the knowledge or resources to do so. Develops a way to meet the need – which may be novel or routine. Creates an organization to assemble and direct the resources and human effort toward meeting the need. Operates the business or organization or sells it and moves on to something else.

Why Entrepreneurship Matters -- macro Innovation, creative society Economic growth Social welfare Competitiveness Democracy Rule of law

Hypothesized Relationship between Entrepreneurship and Economic Growth Rate of Entrepreneurship Developed countries are moving from “managerial” to “entrepreneurial” economies, Zoltan Acs

Why Entrepreneurship Matters -- to you Expand your career options and goals Run your own business Start your own non-profit Life skill Enable you to be entrepreneurial about your own career Enhance your employability and career success Improve the quality of your education Increase your creativity and problem solving skills Better understanding of business and market economics Persistence Teamwork and networking Communication Start early developing these skills Start in K – 12 rather than post-secondary

What does an entrepreneur do? Discovers an unmet need – an opportunity to create value. Commits to meeting the need or solving the problem even though they may lack the knowledge or resources to do so. Develops a way to meet the need – which may be novel or routine. Creates an organization to assemble and direct the resources and human effort toward meeting the need. Operates the business or organization or sells it and moves on to something else.

Taking apart the definition Opportunity? Create value Improve product or service characteristics Reduce costs Meet a need Solve a problem “No problem – no business!” (Vinod Khosla, Founder, Khosla Ventures) Heal the pain in the market place

Taking apart the definition Organization? A for-profit business or cooperative A strategic alliance of existing organizations An NGO, or a non-profit business A franchise A licensing agreement for a technology

Where do opportunities come from? External changes Technology Policy and regulation Demographics, consumer preferences Inside information Knowledge of a market segment Interaction with potential customers

Types of Entrepreneurs Opportunity Develop businesses in response to needs in the market place Survival Develop businesses in response to adversity Job loss, factory closings, low income Growth Develop businesses with significant capacity to create jobs or wealth “gazelles” Lifestyle Develop businesses that reflect an interest or avocation Permits the owner to live where or how they prefer Growth and job creation are not primary concerns Social Develop organizations that address a particular social need Habitat for Humanity, Sierra Club

Game plan Video – face to face with a real entrepreneur who took advantage of technological advances in IT Class exercise – develop a business model in response to an external change in the economy Open discussion of entrepreneurship and MIS