1. Entrepreneurship and Design Thinking 2 Entrepreneurship
MBA elective module HWR Berlin - June and July 2017
Entrepreneurship and Design Thinking
2 Entrepreneurship
© Robert Jones 2017

2. Objectives: Definitions of Entrepreneurship
Importance of Entrepreneurs
Characteristics
Case studies
In part 2:
Economic significance
International comparisons of entrepreneurship
Demographic – age, gender, national differences

3. What is an Entrepreneur?
Characteristics
Attributes, behaviours, qualities
Discuss

10. Joseph Schumpeter The father of entrepreneurship and innovation
Entrepreneurs ….. Discontinuous and revolutionary change
as the core of economic development
The Theory of Economic Development (1912)
Innovation ……. “gales of creative destruction”
Capitalism, Socialism and Democracy (1942)
Unternehmergeist wild spirit

11. And workbased learning
Locating Entrepreneurship as a Subject David Rae, 2007
Enterprise
in Society
Business
Management
Creativity
New ideas
Future possibilities
Enterprise
Management
New small business,
Business growth
Entrepreneurship
Innovation
Problem solving IP
Education
And workbased learning
Emerging forms
of Entrepreneurship

12. Triadic model of entrepreneurial learning
Entrepreneurial Learning - a Narrative-based Conceptual Model, David Rae,
Journal of Small Business and Enterprise Development, 2005

13. Why are entrepreneurs important?
Your own opinions please!

14. Why are entrepreneurs important?
Entrepreneurs often innovate:
New ideas
Innovations
New methods, processes
New products
New uses
New markets
New business models

16. Entrepreneurial types – there is no one simple description
Soloist
Key partner
Grouper
Professional
Inventor-researcher
High tech
Work force builder
Inveterate initiator
Concept multiplier
Acquirer
Speculator
Turn-about artist
Value manipulator
Lifestyle entrepreneur
Committed manager
Conglomerator
Capital aggregator
Matriarch or patriarch
Going public
Alternative entrepreneur
Stokes & Wilson (2010) Small Business Management and Entrepreneurship based on Gray D (1989)

17. Entrepreneurial types – there is no one simple description
Soloist
Key partner with partner in background
Grouper with others, on equal basis
Professional accountants, solicitors, doctors etc
Inventor-researcher
High tech Cambridge is full of these!
Work force builder
Inveterate initiator serial entrepreneur
Concept multiplier starts a franchise system
Acquirer
Speculator
Turn-about artist company doctor
Value manipulator
Lifestyle entrepreneur
Committed manager
Conglomerator
Capital aggregator
Matriarch or patriarch head of family business
Going public ipo, AIM, very Cambridge!
Alternative entrepreneur
Stokes & Wilson (2010) Small Business Management and Entrepreneurship, based on Gray D (1989)
What is missing?

18. Are small business owner-managers entrepreneurs?
Types of small business person
Owner Managers or entrepreneurs?
(based on Stokes, Wilson & Mador 2010)
1 Craftsman owner manager
carpenter, plumber, hairdresser, glazier, baker, butcher, shopkeeper
2 Promoter entrepreneur
“wheeler dealer”, starts, grows and often sells businesses
3 Professional manager builds a “little big business”
accountant, lawyer, doctor, dentist

19. Our family names often come from jobs that our ancestors did:
Mr Carpenter, Mrs Baker, Mr Butcher, Mrs Thatcher

23. Some examples of entrepreneurs

26. Richard Branson – Virgin group
His tests for a new business start-up:
Value for money
Best quality
Innovative
Challenging
Cheeky and Fun
Employees before customers before shareholders
Very strong personal perspectives on business

27. Do entrepreneurs always innovate?

33. What does the incumbent (British Airways) do with these new entrants?
This is classic competition theory – Michael Porter

35. Barbara Cassani on risk

36. Entrepreneurs and Leaders
Are entrepreneurs leaders?
Are leaders entrepreneurs?
Discuss

37. ttp://

38. Is profit the only motivation for entrepreneurs?

40. Tim Smit and The Eden Centre

41. Charles Handy
The New Alchemists
29 stories about entrepreneurs,
nice narratives, not academic.
(an alchemist tried to turn lead into gold)

42. What makes an entrepreneur?
Is an entrepreneur born or made?
Nature or nurture?
Can you learn to be an entrepreneur?
Why are we here?
Good questions!

43. The dark side of entrepreneurship
Manfred Kets de Vries
The Dark Side of Leadership: What Drives People to Become Leaders? By Manfred Kets de Vries (1997) The Antidote, 1997, #6, pp.11-13
The Dark Side of Entrepreneurship
Manfred F. R. Kets de Vries
Harvard Business Review, November 1985
BBC Radio 4 “The Entrepreneur’s Wound”

44. Outcomes and Take aways:
Definitions of Entrepreneurship
Importance of Entrepreneurs
Characteristics
In part 2:
Economic significance
International comparisons of entrepreneurship
Demographic – age, gender, national differences

45. Part 2

46. The national and international context of Entrepreneurism
Where in the world is it good to be an entrepreneur?
Which are the most entrepreneurial nations?
How does entrepreneurism relate to national economic success?

48. Source: BIS, Business population estimates, 2016

49.
No. of firms
Turnover
Employed
SME
Large firms

50. The German Mittelstand
Hidden Champions
– Lessons from 500 of the World’s Best Unknown Companies
Hermann Simon (1996)
The German Mittelstand
Hermann Simon (2009)
Hidden Champions of the 21st Century
– Success Strategies of Unknown World Market Leaders

54. International Context
of Entrepreneurship

56. OECD – Entrepreneurship Indicators Framework EIP Framework

57. Business start-up survival rate
How many of today’s 100 new start-ups are left at:
0 year (today) = 100
1 year =
2 years =
3 years =
4 years =
5 years =
6 years =
7 years =
8 years =
9 years =
10 years =
Assume 10% of firms close each year

58. House of Commons Briefing Paper, No. 06152, 23Nov2016
Business statistics

61. OECD Profile of the Entrepreneur - Gender Differences in Self-employment

62. http://www. doingbusiness

63. http://www. doingbusiness

64. Starting a Business (World Bank DB2017)

65. http://www. doingbusiness

68. WEF - Global Competitiveness Index 2016–2017 Rankings

69. France

75. What age are entrepreneurs?

77. UK
USA
Germany
France

78. UK
USA
Germany
France

79. GEM 2012

80. GEM 2011

81.
Adapted from
Necessity
Opportunity

82. Gender and enterprise

83. WEF - Global Competitiveness Index 2016–2017 Rankings

84. Why do firms close?

86. Take aways: Definitions of Entrepreneurship
Importance of Entrepreneurs
Characteristics
Economic significance
Demographic – age, gender, national differences