Entrepreneur character traits: 1 + 7 + 6
- believe in what you do: fire in the belly!
- vision & inspiration
- calculated risk taker
- constructive paranoia
- innovative behavior
- internal locus f control
- need 4 independence
- Conceptual Ability
- Constant learner
- Calculated risk taker
- Need for achievement
- Personal energy & emotional stability
Entrepreneur vs inventor, innovator, intrapreneur
Innovator (recombines > brings 2 market)
Intrapreneur (within big Co)
The process of 1. creating something new with value by devoting the necessary time and effort, 2. assuming the accompanying risks (financial, psychic, and social) and 3. receiving the resulting rewards of monetary and personal satisfaction and independence.
Reasons for (sometimes) not taking money from corp venture
- they might want to take control (dilute also) - or kill your Co - or TAINT you vs other possible biz partners
Reasons in favor of accepting Corp venturing money
- they can bring expertise - brand - clients - volume
James Dyson as Entrepreneur:
8 Typical vs 5 atypical traits + 1 challenge
- Conceptual Ability
- Vision & Inspiration
- Calculated(?!) Risk Taker
- Innovative Behavior
- Locus of Control (IP!) § Paranoia
- Need for independence
- Inventor = Innovator
- No Team?!
- No recurring revenue!
- No market research
- Addressed saturated market, i.e. “Red Ocean”
challenge = succession
When go to Venture Capitalists VS strategic investors ~ corporate VCs?
High certainty in outcome > VCs (fast good exit) Opposite: be the CVCs' external R&D
Small n Midsized Bizs are + Def
Backbone of society n bulk f employment in major economies (50% f employment created by 4% fastest-growing new ventures)
def: <250 employees, <50m rev, <25% shares f another Co, (<43m balance sheet)
- Venture to Enterprise value chain in 4 stages & innovation gap
- New venture in 5 stages & funding gap
- Venture to Enterprise value chain:
- Basic research
- Technology Dev.
- Product Dev.
- Market Intro.
innovation gap is bw academia & industry
- New venture:
- eval. / founding
funding gap is at start before biz angels & VCs arrive
Joseph Schumpeter's "Creative destruction"
+ tech startups peculiarity
Both sides to E: The new destroys the old (Biz, Cos, jobs)
"Innovative entry by entrepreneurs is the force that sustain long-term economic growth, even as it may destroy the value of established companies."
+ tech startups create 7 times more jobs on avg!
- copy attempts, but
- 170 copycats around the world, but there are cultural, social & political differences!
- kick-started by Cold War
- fuelled by hardworking immigrants
Global Economic Monitor framework
CH tech ent problems:
- risk aversion (80% 5y survival rate < little risk taking) of Entrepreneurs - no seeding < investor's risk aversion
Avast: Origin BM Ops Margin (in crowded space)
- in 80s Czech R by 2 researchers not joining Communists - free, uncrippled product for most consumers, w few paying for premium - high level of automation - 30% margin!!!
BM = Freemium: free core functionality, some customers still pay for comfort, though free ~= fee version.
Using communities for support, marketing, localization (translations).
Innovation: 2 components
(successful) venture: 3 Components
Innovation = new idea (invention ~= implementation of sthing new) + diffusion (market penetration...) -->i(ii)d
(successful) venture = innovation + team + money -->MIT
Lean start-up methodology: - philosophy
iterate w feedback
Big Co & entrepreneurship: 2 ways
- startup program
- invest in corp venturing
- academic spinoffs
- startups coz free from legacy of Co internal boundaries
- academic spinoffs coz inventor remains involved
Global Entrepeneurship Monitor (GEM)
conceptual framework: 3 elements --> 1 result
national & entrepreneurial framework conditions
social values about E.
output of economic growth & new jobs