1. Some Big Picture Thoughts About Entrepreneurship © 2005 Mark T. Schenkel 1

2. Big Picture Impact on Your Career Strategic planning and implementation are relevant to executives in all firms Strategic planning and implementation are relevant to executives in all firms Intrapreneurship Intrapreneurship Innovation (product/process/service/system/administrative/etc.) Innovation (product/process/service/system/administrative/etc.) Skunk works – Learn to create your own ideal job Skunk works – Learn to create your own ideal job 95+% of firms are SME’s 95+% of firms are SME’s ~ 1 Million New Start-Ups Every Year in the U.S. ~ 1 Million New Start-Ups Every Year in the U.S.

3. Analysis Strategy Formulation Implementation Eval., Review, & Feedback The Entrepreneurial Process: Iterative & in Constant Flux

4. The Entrepreneurial Process (Moore, 1986) Personal Job dissatisfaction Lob loss Education Age Commitment Personal Achievement Locus of control Ambiguity Risk taking Personal values Education Experience Sociological Networks Teams Parents Family Role Models Person Entrepreneur Leader Manager Visionary Organizational Team Strategy Structure Culture Products Environment Competitors Customers Suppliers Investors Bankers Lawyers Environment Competition Resources Incubator Government Environment Opportunities Role models Creativity InnovationTriggering EventImplementationGrowth

5. Necessity influences Necessity influences Retirement, Relocation Retirement, Relocation Desirability Influences Desirability Influences Personality Personality Culture/Subculture Culture/Subculture Family/Peers Family/Peers Possibility Factors Possibility Factors Government Government Background Background R&D and Marketing Expertise R&D and Marketing Expertise Role Models Role Models Finances Finances Broad Drivers of New Venture Formation Decision

6. Motivation/Support Systems Motivation Motivation Achievement (messy results) Achievement (messy results) Independence Independence Job satisfaction/control Job satisfaction/control Role Models Role Models Support Networks Support Networks Moral Moral Professional Professional *Functional Vs. Emotional/Support *Functional Vs. Emotional/Support

7. Problems Facing New Ventures Operations Operations Competition from big business Competition from big business Labor quality Labor quality Poor sales Poor sales Labor costs Labor costs Regulations and Red Tape Regulations and Red Tape Taxes Taxes Insurance Insurance Finances Finances Inflation Inflation Other Other

8. How to Fail in Business: Top Ten on the Road to Ruin 1. 1. Lack of overall strategic planning 2. “Low-price leader” myopia 3. Lack of focus and direction: Both with regard to the business and the customer 4. Failure to follow-up on leads 5. The “I can do it all” syndrome 6. Inaccurate planning assumptions

9. How to Fail in Business: The Top Ten on the Road to Ruin 7. Lack of implementation plans (including tasks, timetables, budgets, and responsibilities) 8. Confusing objectives and strategies (goals not stated in quantifiable terms) 9. Inadequate capitalization; borrowing without a payback plan 10. Lack of contingency planning

10. Some Difficult Personality Types to Watch Out For... Shotgun Sam Quickly Identifies New/Promising Opportunities, But Rarely Follows Through Simplicity Sue Thinks Everything Is A Lot Simpler Than Is, Feels Can Create Business Easily Prima Donna Paul So In Love With Own Idea Feels Everyone Out to Steal It And Take Advantage Of Him Ralph The Rookie Well-Grounded In Theory But Lacks Real-World Business Experience Meticulous Mary Used To Having Things Under Control, Can’t Handle Catastrophe, Ambiguity Underdog Ed Not Comfortable Actually Transforming Invention Into Tangible Business Success Hidden Agenda Harry Does Not Have Right Motives/Objectives For Developing Expediting New Enterprise Inventor Irving More Inventor Than Entrepreneur. More Concerned With Invention Itself.