Entrepreneurship And New Venture Creation
Entrepreneurship and New VentureCreationDr. Omaima HatemJune 2018Dr. Omaima Hatem June 20181
Course Description and ObjectivesThe aim of the course is: To enhance participants’ understanding of the role of theentrepreneur in the new venture creation process To develop their capabilities to recognise, assess andarticulate new venture opportunities To gain insights into resources required to underpin venturedevelopment and growth and how to access these resources;to assess longer term strategic options for growth and for“harvesting” the venture.Dr. Omaima Hatem June 20182
The Entrepreneurial Challenge The course also seeks to develop a greater awareness ofpersonal goals, motivations, strengths and limitations in thecontext of venture creation and growth, particularly in thecontext of forming new ventures or joining a new youngventure. The course provides opportunities for students to learn fromeach other, from practitioners in the field and from the latesttheories/concepts on the topic. The course will require students to work in groups to create acoherent and viable business concept which will be presentedto an external panel in the last class session.Dr. Omaima Hatem June 20183
Course Text BooksBruce R. Barringer & R. Duane Ireland (2017),Entrepreneurship, Successfully Launching a New Venture,Pearson, ISBN-13: 978-0013-815808-8Paul Burns (2018) Entrepreneurship and Small Business,Palgrave. ISBN-13: 978-230-24780-2Recommended ReadingsJohn Mullins (2010), New Business Road Test; FT PressGeorge & Bock (2009), Inventing Entrepreneurs; PearsonDr. Omaima Hatem June 20184
Course StructureThe course is divided into Five Modules: Decision to become an Entrepreneur The Business Idea: Opportunity recognition Industry and Competitor analysis, developingan effective business model Operationalising and resourcing the business;accessing support Finalising the plan and pitching it to potentialinvestorsDr. Omaima Hatem June 20185
What is EntrepreneurshipWhat is Entrepreneurship?Historical DevelopmentDifferent DefinitionsDr. Omaima Hatem June 20186
Historical Development ofEntrepreneurshipDr. Omaima Hatem June 20187
Richard Cantillon, 1725An entrepreneur is a person who pays acertain price for a product to resell it at anuncertain price, thereby making decisionsabout obtaining and using the resourceswhile consequently admitting the risk ofenterprise.Dr. Omaima Hatem June 20188
Jean- Batiste Say, (1803)An entrepreneur is an economic agent who unites allmeans of production: land of one, the labour of anotherand the capital of yet another and thus produces aproduct.By selling the product in the market he pays rent ofland, wages to labour, interest on capital and whatremains is his profit.He shifts economic resources out of an area of lowerand into an area of higher productivity and greater yield.Dr. Omaima Hatem June 20189
Joseph Schumpeter, (1934)Entrepreneurs are: Innovators who use a process of shattering thestatus quo of the existing products andservices, to set up new products, new services.Creative destruction is: A theory of economic innovation and businesscycles; Capitalist economic development arisesout of the destruction of some prioreconomies, in order to clear the ground for thecreation of new wealthDr. Omaima Hatem June 201810
Other DefinitionsPeter Drucker, (1964): An entrepreneur searches for change,responds to it and exploits opportunities. Innovation is a specifictool of an entrepreneur hence an effective entrepreneur converts asource into a resource.Kilby, (1971): Emphasizes the role of an imitator entrepreneur whodoes not innovate but imitates technologies innovated by others.Are very important in developing economies.Albert Shapero, (1975): Entrepreneurs take initiative, accept risk offailure and have an internal locus of control.G. Pinchot, (1983): Intrapreneur is an entrepreneur within analready established organizationDr. Omaima Hatem June 201811
Definitions of EntrepreneurshipBusiness DictionaryThe capacity and willingness to undertake conception,organization, and management of a productive venturewith all attendant risks, while seeking profit as a rewardEntrepreneurial spirit is characterized by innovation andrisk-taking, and an essential component of a nation'sability to succeed in an ever changing and morecompetitive global marketplace.Dr. Omaima Hatem June 201812
Greg Watson, 2005Entrepreneurship is more than simply “starting abusiness.” The definition of entrepreneurship is aprocess through which individuals identify opportunities,allocate resources, and create value. This creation ofvalue is often through the identification of unmet needsor through the identification of opportunities for change.Entrepreneurs see “problems” as “opportunities,” thentake action to identify the solutions to those problemsand the customers who will pay to have those problemssolved.Dr. Omaima Hatem June 201813
General Theory of Entrepreneurship,Shane, (2003) Entrepreneurship is the act of being anentrepreneur or "one who undertakesinnovations, finance and business acumen inan effort to transform innovations intoeconomic goods". This may result in neworganizations or may be part of revitalizingmature organizations in response to aperceived opportunity. The most obvious form of entrepreneurship isthat of starting new businesses (referred asStart-up Company)Dr. Omaima Hatem June 201814
Shane and Venkataraman(2000)“Entrepreneurship is the scholarly examination of how,by whom, and with what effects opportunities to createfuture goods and services are discovered, evaluated,and exploited.”So, entrepreneurship involves sources of opportunities;the processes of discovery, evaluation, and exploitationof opportunities; and the set of individuals who discover,evaluate, and exploit opportunities.Dr. Omaima Hatem June 201815
Entrepreneurial ProcessShane & Venkataraman, (2000):It is the discovery, enactment, evaluation, andexploitation of opportunities, to create future goods andservices.Barringer & Ireland, (2012)Entrepreneurship is the process by which individualspursue opportunities without regard to resources theycurrently control.Dr. Omaima Hatem June 201816
Your Idea NapkinYour Idea Napkin1. w h o are y ou?5. w h at are y our corecom pe ten cies ?n a m e:id ea :2. w h at arey ou of ferin g?3. w h oare y ouof ferin git to?4. w h y doth ey care?h ighSeek t h e t opr igh t cor n erof t h is ch a r t :p r ou d ly m a d e a v a ila bleu n d e r cr ea t iv e c om m on s:byim pac tth e inn ograph erw w w .t h ein n ogr a p h er .com / t oolk it / id ea - n a pk infe asibilityDr. Omaima Hatem June 2018h igh17
Reasons to become entrepreneursThe three primary reasons that people decide tobecome entrepreneurs and start their own firms are asfollows: to be their own boss, to pursue their own ideas, and to realize financial rewards.Dr. Omaima Hatem June 201818
Enterprising and EntrepreneurialFor human beings to be enterprising:They have to be creative, adaptable, capable ofextracting value from resources availableTo be entrepreneurial:You have to be enterprising in the context of business,new ventures (profit or not for profit), adding value toexisting organisationsMany people lack the motivation and drive to beentrepreneurialDr. Omaima Hatem June 201819
Are entrepreneurs special?Qualities and behaviours have been identified thatare thought to be more dominant amongstentrepreneurs- but research is inconclusive creativity need for autonomy self belief and confidence (self efficacy) risk taking need for achievement hard work, thrift, the ability sacrifice (delayed gratification) proactiveness and action orientation- not just dreamersDr. Omaima Hatem June 201820
Successful EntrepreneursFour Main Characteristics of Successful Entrepreneurs: Passion for their Business(John Wood/Room to Read & Left Microsoft) Product/Customer Focus(Steve Jobs/Apple) Tenacity despite Failure(Barley & Birch/ Organic Clothing) Execution Intelligence(Amazon/Jeff Bezos: Ideas are easy, it isexecution that’s hard)Dr. Omaima Hatem June 201821
Steve Jobs: Apple/ NEXT“Design is a funny word. Some people think design means how itlooks. But of course, if you dig deeper, it’s really how it works. Thedesign of the Mac wasn’t what it looked like, although that was partof it. Primarily, it was how it worked. To design something reallywell, you have to get it. It takes a passionate commitment to reallythoroughly understand something, chew it up, not just quicklyswallow it. Most people don’t take the time to do that.”Dr. Omaima Hatem June 201822
Fraser Doherty: Super JamSuper JamDr. Omaima Hatem June 201823
Entrepreneurship common mythsThe five most common myths regarding entrepreneurshipare:Entrepreneurs are: born, not made; gamblers; motivated primarily by money; should be young and energetic; love the spotlight.Dr. Omaima Hatem June 201824
CAN ENTREPRENEURSHIP BE TAUGHT?World’s richest entrepreneurs display many of these qualities inabundanceBUT were they born with them?CAN ENTREPRENEURSHIP BE TAUGHT?Some debate on this: but consensus is that they can be andthe qualities, even if born with, can be developed andenhanced.(Not everyone can be a Roger Federer, but most people canbe taught to play tennis well, and even Roger needs extensivecoaching to reach and stay at the top).You need to start somewhere.Hence this course.Dr. Omaima Hatem June 201825
E/P as Business Creation:Personal Goals ands DevelopmentThis course seeks to develop:Awareness of the personal career implications of new venturecreation About 6-10% of business school graduates seriously considerstarting a business within 5 years of leaving University A significant proportion will be tempted or forced to start abusiness later in life A large proportion of managers will be called upon at some timeto act entrepreneurially, to establish new lines of businesswithin the organisations they work forBasic skills of how to approach new venture creationDr. Omaima Hatem June 201826
Objective: Acquiring Skills andUnderstanding for New Venture CreationUnderstanding of the new venture creationprocess How to recognise, assess and articulatenew venture opportunities How to access and apply the resourcesrequired to underpin venture developmentand growth How to develop a business plan for sellingyour idea to potential investorsDr. Omaima Hatem June 201827
Basic elements of CourseIntroduction followed by two sessions on each of three keystages of the new venture creation process: The idea, feasibility and market analysis Industry and competitor analysis Operational issues and resourcing the businessSessions inform parallel development of a group businessPlanThe plan will be pitched to a panel of “Dragons”, during thelast two sessionsDr. Omaima Hatem June 201828
Theme One: Opportunity recognition &evaluationThe Business Idea:Opportunity recognition and evaluationB&I Chapters 2 and 3; Burns Chapters 5 and 6Students prepare own business idea in their own timeStudents report on their business ideas and how they have evaluatedthem so far- Group discussionsFinalisation of group teams and students, evaluation of individualideas, students choose which idea to pursue as a group.Dr. Omaima Hatem June 201829
Theme TwoTheme Two:Industry and Competitor analysis, developing aneffective business modelB&I Chapters 5, 6 and 11 & Burns Chapter 7 and 11Student report on how they have developed a viablebusiness model, and discuss their industry, marketand competitor analysesDr. Omaima Hatem June 201830
Theme ThreeTheme Three:Operationalising and resourcing thebusiness, accessing supportB&I Part 3 & Burns Chapter 7, 9 and 10Students report and discuss operationaland financial plans.Dr. Omaima Hatem June 201831
Theme FourTheme FourFinalising the plan and pitching it topotential investors.Guest lectures: Young entrepreneurs and Well EstablishedInnovators will join the program in the various modulesDr. Omaima Hatem June 201832
How entrepreneurial are you?There are a number of enterprise tendency tests designed toestablish how entrepreneurial or enterprising you are. One versionthat was very popular in the 1980s and 1990s was the GET test –(General Enterprising Tendency) developed by Dr Sally Caird atDurham University.This is displayed and fully described in the following website:http://get2test/test/index.htmTesting Enterprising Tendency In Occupational Groups. Full TextAvailable By: Caird, Sally. British Journal of Management, Dec91,Vol. 2 Issue 4, p177, 10p, 3 charts; (AN 4526675) Full paper isavailable in the Library as a PDF in Business Source Premier.Dr. Omaima Hatem June 201833
International Entrepreneurship TheoryOviatt and McDougall 1994Autio et al 2000Zahra & George 2005Definition:It is the discovery, enactment, evaluation, and exploitation ofopportunities— across national borders—to create future goods andservices.Discovery: refers to finding innovative opportunitiesEnactment: means to proactively put opportunities into use acquiring a competitiveadvantage.Evaluation: is required to interpret the actions taken developing experience andknowledge.Exploitation: refers to the future development of the opportunityAcross Border: referring to the Internationalization ProcessEmerging Market Examples: BRIC and Next ElevenDr. Omaima Hatem June 2018Dr Omaima HatemJanuary 20173434
Strategic EntrepreneurshipHitt, Ireland and Zahra, (2000) defined StrategicEntrepreneurship as:“A process that facilitates firm efforts to identifyopportunities with the highest potential to lead to valuecreation, through the entrepreneurial component and thento exploit them through measured strategic actions, basedon their resource base.”Dr. Omaima Hatem June 201835
Strategic EntrepreneurshipDr. Omaima Hatem June 201836
Entrepreneurial Process ElementsThe four distinct elements of the entrepreneurialprocess are: Deciding to become an entrepreneur, Developing successful business ideas, Moving from an idea to establishing anentrepreneurial firm, Managing and growing anentrepreneurial firm.Dr. Omaima Hatem June 201837
GartnerGartner, William B. (2001). "Is There an Elephant inEntrepreneurship? Blind Assumptions in TheoryDevelopment.(Business research)", EntrepreneurshipTheory and Practice, Summer 2001.Dr. Omaima Hatem June 201838
Business Model CanvasDr. Omaima Hatem June 201839
Entrepreneurship in Egypt Research And Publications: High growth and rapid internationalisation of firms fromemerging markets: the case of the Middle East andNorth Africa (MENA) region State and Entrepreneurs in Egypt : EconomicDevelopment since 1805Dr. Omaima Hatem June 201840
Entrepreneurship in Egypt The challenge of becoming a successful entrepreneur ina hostile context : the example of Mohamed Ibrahim, thefounder of MSI and Celtel Research handbook on entrepreneurship andleadership: Distributed Entrepreneurial Leadership in theMENA regionDr. Omaima Hatem June 201841
Entrepreneurship, Successfully Launching a New Venture, Pearson, ISBN-13: 978-0013-815808-8 Paul Burns (2018) Entrepreneurship and Small Business, Palgrave. ISBN-13: 978-230-24780-2 Recommended Readings John Mullins (2010), New Business Road Test; FT Press George & Bock (2009), Inventing Entrepreneurs; Pearson Dr. Omaima Hatem June 2018 4
To define the entrepreneurship. To explain the significance of Entrepreneurship. To explain the Entrepreneurship Development. To describe the Dynamics of Entrepreneurship Development. 1.1 Need and significance of Entrepreneurship Development in Global contexts It is said that an economy is an effect for which entrepreneurship is the cause.
entrepreneurship; the Global Entrepreneurship Monitor (2005) defines it as creation of a new business venture, both formal and informal; and Acs and Szerb (2009), who created the Global Entrepreneurship Index, define it as a dynamic interaction of entrepreneurial attitudes, activity, and aspiration that vary across stages of economic development
Introduction to Venture Building Types of Venture Building Models 3. In-house Venture Building: Empowering Innovation In this third model the corporation owns the venture builder, which becomes a vehicle for investing in new businesses. Interestingly the venture builder is also the contex
Entrepreneurship e.g. (1) opportunity recognition, (2) concept development, (3) . the book Social Entrepreneurship A modern Approach to Social Venture Creation (2008), even though these steps or headlines are to be found in this book, one can still find similar descriptions of these steps in related entrepreneurship-literature.
CHAPTER 2: ENTREPRENEURSHIP THEORY AND CREATIVITY ctives. epreneurs. reneurship. 3:49). thought on the meaning of entrepreneurship. One group focused on the characteris-tics of entrepreneurship (e.g. innovation, growth, uniqueness) while a second group focused on the outcomes of entrepreneurship (e.g. the creation of value).
over time. Entrepreneurship is viewed as a major contributor to economic growth and employment creation while understanding how creativity impacts on the process is also crucial (Baumol 2002). Much entrepreneurship research concentrates on new venture creation (McMullan and Long 1990) but has tende
Furthermore, research shows "venture-backed firms also perform significantly better after they go public than similar non-venture-backed firms" (Bagley, 2003). Although the reasons to seek venture capital are obvious, the entrepreneur and the venture capitalist must be aware of the conflicts of interest that exist between them.
ALBERT WOODFOX . CIVIL ACTION NO. 06-789-JJB-RLB . VERSUS . BURL CAIN, WARDEN OF THE LOUISIANA . STATE PENITENTIARY, ET AL. RULING . Before this Court is the pending Motion (doc. 279) for Rule 23(c) release of Petitioner, Albert Woodfox. Briefs were filed in response to this motion and were considered by this Court. Subsequently, a motion hearing on this matter was held before this Court on .
