Entrepreneurship This "Deco" border was drawn on the Slide master using PowerPoint's Rectangle and Line tools. A smaller version was placed on the Notes.

Entrepreneurship This "Deco" border was drawn on the Slide master using PowerPoint's Rectangle and Line tools. A smaller version was placed on the Notes Master by selecting all of the elements (using Select All from the Edit menu), deselecting the unwanted elements such as the Title (holding down the Shift key and clicking on the unwanted elements), and then using Paste as Picture from the Edit menu to place the border on the Notes Master. After pasting as a picture, we used the resize handles (with Shift to maintain the proportions) to reduce it to the size you see. Be sure to delete this word processing box before using this template for your own presentation.

The World of the Entrepreneur
Globally 9.4 percent of adults are actively engaged in trying to start a business. Men are twice as likely as women to start a business . Nearly one-third of global entrepreneurs are between the ages of 25 and 44.

Who is an Entrepreneur? One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.

Characteristics of Entrepreneurs
Desire for responsibility Preference for moderate risk – risk eliminators Confidence in their ability to succeed Desire for immediate feedback High level of energy Future orientation – serial entrepreneurs Skilled at organizing Value achievement over money

Entrepreneurship One characteristic of entrepreneurs stands out:
Diversity! Anyone – regardless of age, race, gender, color, national origin, or any other characteristic – can become an entrepreneur (although not everyone should).

Benefits of Entrepreneurship
Create your own destiny Make a difference Reach your full potential Reap impressive profits Contribute to society and to be recognized for your efforts Do what you enjoy and to have fun at it

Drawbacks of Entrepreneurship
Uncertainty of income Risk of losing your entire investment Long hours and hard work Lower quality of life until the business gets established High levels of stress Complete responsibility Discouragement

Feeding the Entrepreneurial Fire
Entrepreneurs as heroes Entrepreneurial education Demographic and economic factors Shift to a service economy Technological advancements Independent lifestyle E-commerce and the World Wide Web International opportunities

The Cultural Diversity of Entrepreneurship
Young entrepreneurs Women entrepreneurs

Young entrepreneurs Women entrepreneurs Minority-owned enterprises Immigrant entrepreneurs Part-time entrepreneurs

Home-based businesses Family businesses Copreneurs Corporate castoffs Corporate dropouts

Mistakes of Entrepreneurship
Management mistakes Lack of experience Poor financial control Weak marketing efforts Failure to develop a strategic plan

Ten Deadly Mistakes of Entrepreneurship
Uncontrolled growth Poor location Improper inventory control Incorrect pricing Inability to make the “entrepreneurial transition”

Putting Failure into Perspective
Entrepreneurs are not paralyzed by the prospect of failure. Failure – a natural part of the creative process. Successful entrepreneurs learn to fail intelligently.

Avoiding the Pitfalls of Small Business Failure
Know your business in depth Develop a solid business plan Manage financial resources Understand financial statements Learn to manage people effectively Keep in tune with yourself

Inside the Entrepreneurial Mind: From Ideas to Reality
This "Deco" border was drawn on the Slide master using PowerPoint's Rectangle and Line tools. A smaller version was placed on the Notes Master by selecting all of the elements (using Select All from the Edit menu), deselecting the unwanted elements such as the Title (holding down the Shift key and clicking on the unwanted elements), and then using Paste as Picture from the Edit menu to place the border on the Notes Master. After pasting as a picture, we used the resize handles (with Shift to maintain the proportions) to reduce it to the size you see. Be sure to delete this word processing box before using this template for your own presentation.

Creativity and Innovation
Creativity – the ability to develop new ideas and to discover new ways of looking at problems and opportunities; thinking new things. Innovation – the ability to apply creative solutions to problems or opportunities to enhance or to enrich people’s lives; doing new things.

Entrepreneurship Entrepreneurship – the result of a disciplined, systematic process of applying creativity and innovation to the needs and opportunities in the marketplace. Entrepreneurs connect their creative ideas with the purposeful action and structure of a business.

Failure: Just Part of the Creative Process!
For every 3,000 new product ideas: Four make it to the development stage. Two are actually launched. One becomes a success in the market. On average, new products account for 40 percent of companies’ sales!! Creativity is an important source for building a competitive advantage.

Can We Learn to Be Creative?
Yes! By overcoming paradigms and by suspending conventional thinking long enough to consider new and different alternatives!

How Creative Are You? Hundred Chun Hundred O R H E S W S
Umph Umph Umph Of the Spirit Grace. Stand I S Media STO CK THEBLUEFACE Intensity S H E E T Objection Ruled W E B Roll Roll Roy Roy Tomb of 210,N SPR ING Scholar

How Creative Are You? Fortune 500 Scattered Showers
Triumph of the Spirit Grace Period Rhodes Scholar I Understand Spring Break Media Bias Two for One Stock Split Blue in the Face High Intensity Spreadsheet Objection Overruled Web Links Rolls Royce Tomb of Tutankhamen

Right-Brained, Creative Thinkers
Always ask, “Is there a better way?” Challenge custom, routine, and tradition. Are reflective. Are prolific thinkers. Play mental games.

Right-Brained, Creative Thinkers
Realize that there may be more than one “right” answer. See mistakes as pit stops on the way to success. See problems as springboards for new ideas. Relate seemingly unrelated ideas to a problem. Have “helicopter skills.”

Left-Brained or Right-Brained?
Entrepreneurship requires both left-and right-brained thinking. Right-brained thinking draws on divergent reasoning, the ability to create a multitude of original, diverse ideas. Left-brained thinking counts on convergent reasoning, the ability to evaluate multiple ideas and to choose the the best solution to a problem.

Barriers to Creativity
Searching for the one “right” answer Focusing on “being logical” Blindly following the rules Constantly being practical Viewing play as frivolous

Barriers to Creativity
Becoming overly specialized Avoiding ambiguity Fearing looking foolish Fearing mistakes and failure Believing that “I’m not creative”

Questions to Spur the Imagination
Is there a new way to do it? Can you borrow or adapt it? Can you give it a new twist? Do you merely need more of the same? Less of the same?

Is there a substitute? Can you rearrange the parts? What if you do just the opposite? Can you combine ideas? Can you put it to other uses?

What else could you make from this? Are there other markets for it? Can you reverse it? Can you rearrange it? What idea seems impossible, but if executed would revolutionize your business?

Tips for Enhancing Organizational Creativity
Include creativity as a core company value Embrace diversity Expect creativity Expect and tolerate failure Encourage creativity

Create a change of scenery periodically View problems as challenges Provide creativity training Provide support Develop a procedure for capturing ideas

Talk with customers Look for uses for your company’s products or services in other markets Reward creativity Model creative behavior

Tips for Enhancing Individual Creativity
Allow yourself to be creative Give your mind fresh input every day Observe the products and services of other companies, especially those in completely different markets Recognize the creative power of mistakes

Tips for Enhancing Individual Creativity
Keep a journal handy to record your thoughts and ideas Listen to other people Listen to customers Talk to a child Keep a toy box in your office Read books on stimulating creativity or take a class on creativity Take some time off

The Creative Process Preparation Investigation Transformation Incubation Illumination Verification Implementation

Get your mind ready for creative thinking.
Preparation Get your mind ready for creative thinking. Adopt the attitude of a lifelong student. Read …a lot…and not just in your field of expertise. Clip articles of interest to you and file them. Take time to discuss your ideas with other people.

Get your mind ready for creative thinking.
Preparation Get your mind ready for creative thinking. Join professional or trade associations and attend their meetings. Study other countries and their cultures and travel. Develop your listening skills. Eliminate creative distractions.

Two types of thinking required:
Transformation Involves viewing both the similarities and the differences among the information collected. Two types of thinking required: Convergent – the ability to see the similarities and the connections among various and often diverse data and events. Divergent – the ability to see the differences among various data and events.

How can you transform information into purposeful ideas?
Transformation How can you transform information into purposeful ideas? Grasp the “big picture” by looking for patterns that emerge. Rearrange the elements of the situation. Use synectics, taking two seeming nonsensical ideas and combining them. Remember that several approaches can be successful. If one fails, jump to another.

Allow your subconscious to reflect on the information collected.
Incubation Allow your subconscious to reflect on the information collected. Walk away from the situation. Take the time to daydream. Relax – and play – regularly. Dream about the problem or opportunity. Work on it in a different environment.

Validate the idea as accurate and useful.
Verification Validate the idea as accurate and useful. Is it really a better solution? Will it work? Is there a need for it? If so, what is the best application of this idea in the marketplace? Does this product or service fit into our core competencies? How much will it cost to produce or to provide? Can we sell it at a reasonable price?

Techniques for Improving the Creative Process
Brainstorming Goal is to create a large quantity of novel and imaginative ideas.

Brainstorming Guidelines
Keep the group small – “Two pizza rule.” Make the group as diverse as possible. Company rank is irrelevant. Have a well-defined problem, but don’t reveal it ahead of time. Limit the session to 40 to 60 minutes. Take a field trip. Appoint a recorder.

Brainstorming Guidelines
Use a seating pattern that encourages interaction. Throw logic out the window. Encourage all ideas from the team. Shoot for quantity of ideas over quality of ideas. Forbid criticism. Encourage idea “hitch-hiking.” Dare to imagine the unreasonable.

Brainstorming Goal is to create a large quantity of novel and imaginative ideas. Mind-mapping A graphical technique that encourages thinking on both sides of the brain, visually displays relationships among ideas, and improves the ability to see a problem from many sides.

TRIZ A systematic approach designed to solve any technical problem, whatever its source. Relies on 40 principles and left-brained thinking to solve problems. Rapid prototyping Transforming an idea into an actual model that will point out flaws and lead to design improvements.

Protecting Your Ideas Patent – a grant from the Patent and Trademark Office to the inventor of a product, giving the exclusive right to make, use, or sell the invention for 20 years from the date of filing the patent application.

Prosecute the patent application
The Steps to a Patent Prosecute the patent application Submit the patent application Study search results Search existing patents Document the device Establish the invention’s novelty

Protecting Your Ideas Trademark – any distinctive word, symbol, design, name, logo, slogan, or trade dress a company uses to identify the origin of a product or to distinguish it from other goods on the market. Servicemark – the same as a trademark except that it identifies the source of a service rather than a product.

Copyrighted material is denoted by the symbol ©.
Protecting Your Ideas Copyright – an exclusive right that protects the creators of original works of authorship such as literary, dramatic, musical, and artistic works. Copyrighted material is denoted by the symbol ©.

Protecting Your Ideas Type of Protection What It Covers Time Required
Cost Copyright Works of original authorship About 2 weeks About $30 Trademark Logos, names, phrases 6 – 12 months $900 - $1,500 Design patent Look of an original product Up to 2 years $5,000 - $20,000 Utility patent How an original product works 2 – 5 years Business method patent A business process Source: Anne Field, “How to Knock Out Knock Offs,” Business Week, March 14, 2005.

Building a New Venture Team and Planning for the Next Generation

Leadership Process of influencing and inspiring others to work to achieve a common goal and then giving them the power and the freedom to achieve it. Entrepreneurs must take on many roles in their companies, but none is more important than that of leader. How is the leader of a company like the leader of a jazz band?

Effective Leaders Create a set of values and beliefs for employees and passionately pursue them. Define and then constantly reinforce the vision they have for the company. Respect and support their employees. Set the example for their employees. Create a climate of trust in the organization. Build credibility with their employees. Focus employees’ efforts on challenging goals and keep them driving toward those goals.

Effective Leaders Provide the resources employees need to achieve their goals. Communicate with their employees. Value the diversity of their workers. Celebrate their workers’ successes. Are willing to take risks. Encourage creativity among their workers. Maintain a sense of humor.

Effective Leaders Create an environment in which people have the motivation, the training, and the freedom to achieve the goals they have set. Become a catalyst for change when change is needed. Keep their eyes on the horizon.

Three Vital Tasks of a Leader
1. Add the right employees and constantly improve their skills. 2. Create a culture for retaining employees. 3. Plan for “passing the torch” to the next generation of leadership.

Building an Entrepreneurial Team
Study: 80 percent of employees turnover is caused by bad hiring decisions. Leadership IQ study: 46 percent of newly hired employees will fail in their jobs within 18 months. 19 percent of newly hired employees will achieve unequivocal success. DDI study: 34 percent of hiring managers admit to making bad hiring decisions because they were under pressure to fill a job.

How to Avoid Hiring Mistakes
Elevate recruiting to a strategic position. Look inside the company first Encourage employee referrals Make employment ads stand out Use the Internet as a recruiting tool Recruit on campus

How to Avoid Hiring Mistakes
Forge relationships with schools and other sources of workers Recruit “retired” workers Consider using offbeat recruiting techniques Offer what workers want

Hiring the Right Employees
Conduct a job analysis and create practical job descriptions and job specifications

Conducting a Job Analysis
Create a job description - a written statement of the duties, responsibilities, reporting relationships, working conditions, and materials and equipment used in a job. Create a job specification - written statement of the qualifications and characteristics needed for a job, stated in such terms as education, skills, and experience. Dictionary of Occupational Titles

Conduct a job analysis and create practical job descriptions and job specifications Plan an effective interview

Planning an Effective Interview
Develop a series of core questions and ask them of every job candidate. Ask open-ended questions rather than those calling for “yes or no” answers. Create hypothetical situations candidates would encounter on the job and ask how they would handle them. Situational interviews

Planning an Effective Interview
(Continued) Probe for specific examples in the candidate’s work history that demonstrate the necessary traits and characteristics. Ask candidates to describe a recent success and a recent failure and how they dealt with them. Arrange a “noninterview” setting that allows others to observe the candidate in an informal setting.

Conduct a job analysis and create practical job descriptions and job specifications Plan an effective interview

Conducting an Effective Interview
Break the ice. Goal: to diffuse nervous tension. Ask questions. Puzzle interviews. Remember the 25/75 Rule. Keep it legal! Sell the candidate on the company. Best candidates will have other job offers. Your job: to convince the best candidates that your company is a great place to work.

Conduct a job analysis and create practical job descriptions and job specifications Plan an effective interview Conduct the interview Check references

Checking References Checking an applicant’s references is an important part of protecting a company against making a “bad hire.” Is it really necessary? Yes!! According to the Society of Human Resource Management, more than half of all candidates either exaggerated or falsified information on their résumés.

“The way we do things around here.”
Company Culture Distinctive, unwritten, informal code of conduct that governs the behavior, attitudes, relationships, and style of an organization. “The way we do things around here.” In small companies, culture plays as important a part in gaining a competitive edge as strategy does.

Characteristics of a Positive Culture
Respect for work and life balance Sense of purpose Sense of fun Diversity Integrity Participative management Learning environment

Job Design Strategies Job simplification - breaks work down into its simplest form and standardizes each task. Job enlargement (horizontal job loading) - adds more tasks to a job to broaden its scope. Job rotation - cross-trains workers so they can move from one job in a company to others, giving them a greater number and variety of tasks to perform. Often used with a skill-based pay system.

Five core characteristics:
Job Design Strategies Job enrichment (vertical job loading) - builds motivators into a job by increasing the planning, decision making, organizing and controlling functions (which traditionally were managerial tasks). Five core characteristics: Skill variety Task identity Task significance Autonomy Feedback

Job Design Strategies Flextime - an arrangement under which employees build their work schedules around a set of “core hours” - such as 11 a.m. to 2 p.m. - but have flexibility about when they start and stop work. Job sharing - a work arrangement in which two or more people share a single full-time job.

Job Design Strategies Flexplace - a work arrangement in which employees work at a place other than the traditional office, such as a satellite branch closer to their homes or, in some cases, at home. Telecommuting - an arrangement in which employees have employees working from their homes use modern communications equipment to hook up to their workplaces.

Rewards and Compensation
The key to using rewards to motivate workers is tailoring them to the needs and characteristics of individual workers. Money is an effective motivator - up to a point. Pay-for-performance systems Stock options

Rewards and Compensation
Intangible rewards such as praise, recognition, celebrations, and others can be very powerful, yet inexpensive, motivators. Entrepreneurs tend to rely on nonmonetary rewards.

Why Is Management Succession So Difficult?
No management succession plan! 81 percent of all business founders intend to pass their companies on to their children. But percent of family business owners have no formal management succession plan!

Step 1. Select the successor.
The Succession Plan Step 1. Select the successor. Step 2. Create a survival kit for the successor. Step 3. Groom the successor. Step 4. Promote an environment of trust and respect. Step 5. Cope with the financial realities of estate and gift taxes.

Entrepreneurs planning to retire often use two exit strategies:
Sell to outsiders Sell to insiders Cash plus a note Leveraged buyout (LBO) Employee Stock Ownership Plan (ESOP)

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Entrepreneurship This "Deco" border was drawn on the Slide master using PowerPoint's Rectangle and Line tools. A smaller version was placed on the Notes.

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