New Thinking in Entrepreneurship Teaching and Practice Stephen Daze 2014

Not a Science There are many factors at play that must combine to determine entrepreneurial success. One can only mitigate against failure, not guarantee success: education and experiential opportunities are critical. Entrepreneurship is neither an art nor a science, it’s a practice. Peter Drucker 2

1.Business planning is no longer the beginning. 2.Much focus now on creativity and ideation. 3.Entrepreneurship as a stream, not just a subject. 4.Recognition that start-ups are not just smaller versions of big businesses. 5.Enter corporate entrepreneurship (sometimes called Intrapreneurship) and social entrepreneurship. 6.A new “start up” vocabulary is emerging. 7.Economic and financial realities have changed. 3

1. Business Plans and Planning Thinking and practice has evolved related to business planning: - Business plans (bp’s) can be written without talking to a single customer. - They are usually done far too soon and well written ones are often a decoy for good businesses. - Plans (based on assumptions) can consume a lot of time and energy only to be wrong. - Bp’s are execution documents; start ups need to be nimble and are still in “discovery.” - Business plan competitions are being replaced by business model and milestone competitions. 4

Business Plans and Planning Although Bp’s are still useful (later), current start up practices include: 1.Building and validating hypotheses (assumptions) around customer problems, solutions, channels etc. – through Business Modeling. 2.Talking to customers to test hypotheses (not to sell, just to validate) recently popularized by Steve Blank and Eric Reis. 3.Adjusting the model based on feedback and writing a business plan when the start up knows more about the market, and as an execution and scaling tool – often after achieving revenue. 5

2. Creativity and Ideation - “Ideation” – Oxford: the formation of ideas or concepts. - Courses on creativity and ideation are gaining momentum and are standard for schools focused on Entrepreneurship. - Recognition that many students see entrepreneurism as desirable, but don’t yet have an idea. 6

3. Entrepreneurship not just 1 Subject Growth in Entrepreneurship courses: – Over the last 5 years (2004 to 2009) Entrepreneurship courses at universities across Canada have become increasingly popular, with a 33% growth rate. – The number of students taking Entrepreneurship courses has increased by 27% since – The national growth rate for undergraduate Entrepreneurship courses between 1979 and 1999, was 444%. From 1999 to 2004, the growth rate was 9%, and for 2004 to 2009 it is 22%. – The national growth rate for graduate Entrepreneurship courses between 1979 and 1999 was 232%. From 1999 to 2004, the growth rate was 5%, and for 2004 to 2009 it is 56%. 7

Entrepreneurship not just 1 Subject Laurier 1. Entrepreneurship in Science 2. Entrepreneurial Finance 3. New Venture Creation 4. Managing a Family Enterprise 5. Entrepreneurship for Music Students 6. Entrepreneurship for Arts Students 7. Entrepreneurship and New Ventures 8. Entrepreneurship 9. Social Entrepreneurship University of Windsor 1. Fundamentals of Entrepreneurship 2. New Venture Formation 3. Special Topics in Entrepreneurship 4. Field Studies (or work on own business) 5. Independent Study in Entrepreneurship University of Toronto 1. Creative Opportunity Recognition 2. New Venture Creation 3. Managing High Growth Firms 4. Entrepreneurial Finance 5. Entrepreneurial Marketing 6. Family Firms Ryerson 1. New Venture Start up 2. Running a Family Business 3. Entrepreneurship Behavior and Strategy 4. Studies in Entrepreneurship 5. Identifying Opportunities 6. Management of Innovation 7. Creating a Business Plan 8. Applied Research in Entrepreneurship 9. Entrepreneurship Organizational Appraisal I 10. Entrepreneurship Organizational Appraisal II UBC 1. Entrepreneurship and New Venture Creation 2. Business Plans 3. New Venture Growth 4. Venture Capital and Entrepreneurship 5. Technology Entrepreneurship I 6. Technology EntrepreneurshipII 7. Sustainable Entrepreneurship Brock 1. Entrepreneurship Basics 2. Entrepreneurship 3. Creativity and Entrepreneurship 4. Managing Growth 5. Venture Capital and the Entrepreneur 6. Family Business 7. Topics in Entrepreneurship 8. New Venture Creation 8

4. Start ups = Big Business Entrepreneurship teaching and education reflects need for different skills and knowledge for start-ups and small business: Finance Marketing Operations Human Resources 9

5. Corporate and Social 1.Corporate Entrepreneurship The development of new ideas and opportunities within large or established businesses, directly leading to the improvement of organizational profitability and an enhancement of competitive position or the strategic renewal of an existing business. 2.Social Entrepreneurship A person who pursues an innovative idea with the potential to solve a community problem. These individuals are willing to take on the risk and effort to create positive changes in society through their initiatives. A new business structure has emerged to support these corporations:. 10

6. New Vocabulary 1.Ideation 2.Business modeling 3.Lean start-up/Customer discovery/Validation/Iterating and pivoting 4.Crowd Funding 5.Rapid Prototyping/Makerspaces (hackerspaces) 6.Benefit Corporation (B-corp) 11

7. Financial Realities Investments made by VC funds in 2014 totaled $2.0 billion as of December 31 st or 31% more than the $1.5 billion invested in – Investments in Canada in 2013 were at their highest level since the peak of the previous cycle in Dragon’s Den mentality has created a nation of would-be dragons and entrepreneurs. 12

However VC interest still = right team + right industry + right product market fit + right market size + client traction. This isn’t easy. Actual sources of start up funding remains: #1 Personal Savings #2 Credit Cards #3 Friends and family #4 Banks Crowd Funding as an option:

Province and Feds Providing Support 14

Concluding thoughts Entrepreneurism is a sought after career option. Kauffman-funded study of youth aged 8-21 cites 40% of respondents as listing entrepreneurship as their number one career aspiration According to a 2013 BMO survey, 46% of Canadian post-secondary students surveyed said they see themselves starting a business after graduation. Financial Post September 6, 2013: own-businesses-after-graduation-amid-bleak-job-prospects/ own-businesses-after-graduation-amid-bleak-job-prospects/ The world of entrepreneurship has changed dramatically in the last 10 (and even 5) years: no longer “business” as usual. Campus entrepreneurship strategy needs conscious decision making and usually a big overhaul. 15