Entrepreneurship

Front 1

Role of Entrepreneurship

Organisation for Economic Cooperation and Development definition

Back 1

Key to economic performance - especially considering innovative change, playing an important structural and dynamic role in all economies.

Front 2

Entrepreneurship

Joseph Schumpeter

Back 2

New factor combinations that lead to new products, production methods or markets.

It is about Creative Destruction - mutation process that revolutionizes the economic structure.

Destroying in order to Create

Front 3

Entrepreneur

Dorf & Byers

Back 3

An entrepreneur:

- identifies opportunities

- mobilizes resources
- execute on their vision

- identifies risks

Front 4

Entrepreneurship

Dorf & Byers

Back 4

Entrepreneurship is focused on the creation of a new enterprise that serves society and makes a positive change

Front 5

Technology Entrepreneurship

Dorf & Byers

Back 5

Creation of a new business enterprise that generates benefits (jobs, wealth, value, progress) by creating a unique new arrangement of resources including technology to meet the needs of customers and society.

Front 6

Character Traits of Entrepreneurs

Back 6

- will to perform

-risk tolerance

-internal locus of control - the person believes that they can control their life and events affecting them

Front 7

8 Skills of Entrepreneuship

Back 7

1. Initiate and Operate an Enterprise

2. Identify Opportunities

3. Operate within the context

4. Mobilize Resources
5. Assess and Mitigate risks

6. Manage knowledge and technology

7. Lead and Motivate a team

8. Be Innovative

Front 8

Motivational for Entrepreneurs
(5)

Back 8

Be innovative

Be independent/ autonomous

have a role in driving change

Potential Profit

Self - Realization

Front 9

Components of the system model

Back 9

Strategy and Leadership
Core competencies
Intellectual Property

Value creation - Value Proposition - Value delivery

Systems and Structures
Financials
Processes

Front 10

1. Business Opportunity

Back 10

When products are introduced and sold at a price higher than the cost of production

Front 11

2. Business Oppotunity

Back 11

Favorable set of circumstances providing a good chance for a successful venture

Front 12

Phases of Opportunity Process

Back 12

Opportunity

- Economic Imbalance
- Information Asymmetry

Recognition

- Cognitive Act

-Vision

Evaluation

- Challenge the vision

- First validation
Exploitation

-Market Solution

-Organization

Front 13

Differences between Static and Dynamic Paradigm

Back 13

Static

gradual changes

competitiveness based on efficiency and price

routine transactions

Dynamic

innovative companies
old established companies declining
disruption

disequilibrium

Front 14

Innovators Dilemma

Back 14

Best successful companies got their success by paying close attention to their customers' opinions. Best companies that failed did the same.

Ford Example

Front 15

7 Sources for Innovative Opportunity
Peter Drucker

Back 15

1. New Knowledge
2. New Need
3. Changes in perception

4. The unexpected

5. Incongruities
6. Demographics

7. Industry and Market Structure

Front 16

7 Criteria for Opportunity Evaluation

Back 16

Capabilities
Novelty

Committment and Passion of the team
Return
Uniqueness and Value for Customers
Resources

Risks

Front 17

Vision

Back 17

Vision articulates a picture of the future and defines the direction of a project.

Statement of insight, ambition, intention and purpose.

Front 18

Business Model

Back 18

Set of assumptions about how a firm will create value for its stakeholders

Front 19

Business Model Patterns

Back 19

Business Model with similar characteristics or behaviors.

Front 20

Startup

Steve Blank

Back 20

Organisation formed to search for a profitable and scalable business model

Front 21

Differences between Startup and Established Enterprise

Back 21

Startups:

search for a business model

unclear path and goals

Established enterprises:
defined business model

clear path and goals

Front 22

Startup

Eric Ries

Back 22

A startup s a human institution designed to create a new product or service with conditions of extreme uncertainty

Front 23

Lean Startup

Back 23

Method for systematically reduce the risk of projects with high uncertainty

Front 24

4 Steps Involved in Lean Startup

Back 24

Plan project

See plan as Hypothesis

Systematically Reduce Risk

Adapt plan

Front 25

Minimal Viable Product
MVP

Back 25

version of a new product that allows the team to collect the maximum amount of validated learning about customers with least effort.

Front 26

5 Effectuation Principles

Back 26

1. Bird in Hand - work with your means

2. Affordable loss
3. Lemonade - leverage contingency

4. Patchwork Quilt - develop partnerships to reduce uncertainty in the future
5. Pilot in the Plane - get control

Front 27

Marketing

Back 27

Management process of identifying customers and communicate the value of the product or service to them with the purpose of selling it.

Coordination of 4Ps
Product Price
Promotion Place

Front 28

Value Proposition

Back 28

Value a company promises to offer to a customer.

Value is the worth, importance or utility to the customer.

Front 29

5 Dimensions of Value

Back 29

Access
Product
Price
Experience
Service

Front 30

3 Phases of Strategic Marketing Process

Back 30

Segmenting- divide the an heterogeneous market in several homogeneous ones

Targeting - evaluate attractiveness and select a target group
Positioning- implementing the targeting

Front 31

Market Segmentation

Back 31

transform a heterogeneous market in several homogeneous ones according to their preferences

Front 32

Different Methods of Pricing

Back 32

Cost based pricing

Demand based pricing

Competitors based pricing

Front 33

Questions in Westendorp Survey

Back 33

Maximum Price
Minimum Price
Getting expensive Price

Bargain Price

Front 34

Radical Innovations

Back 34

High Uncertainty
High Risks
Potential High Return
Novelty

Disruption of the System

Front 35

Critical Success Factor

Back 35

limited number of areas that will ensure competitiveness.

an element that is necessary for a company to achieve its mission and to ensure success

Front 36

4 Categories - Innovation Context

Back 36

Entrepreneurial Team
Targeted market

Organisation

Technology

Front 37

3 Categories - Process Context

Back 37

Opportunity Identification

Product Development

Commercialization

Front 38

Product Platform

Back 38

Shared set of common design, engineering and production efforts for distinct products or services. It combines economies of scale and scope!

Front 39

Eras and Phases which shape the change of a technological Paradigm

Back 39

Ferment Era - Fluent Phase

technology discontinuity selection of a dominant design

Incremental Change Era - Specific Phase

Front 40

8 Success Factors for new ventures
Michael Song

Back 40

1. Founders' Market Experience

2. Founders' Industry Experience
3. Supply Chain Integration
4. Existence of patent protection

5. Financial Resources
6. Market Scope
7. Size of the funding team

8. Firm age

Front 41

Patent

Back 41

A patent is a exclusion right of limited duration granted by the state for the disclosure of an invention

Front 42

3 Basic Requirements for a Patent

Back 42

Novelty- the product is not state of the art

Inventive Activity

Application - the product has to have a industrial, agricultural or commercial application.

Front 43

State of the art

Back 43

It refers to the highest level of development as of a technology, device, technique or scientific field achieved at a particular time

Front 44

6 Opportunities of a Patent

Back 44

1. Competitors cannot copy it

2. Check the competitors' development through the patents

3. Innovation can be announced
4. collaboration with large corporations

5. with systematically legal action monopolies can be created

6. innovation and stability can give a better reputation to a start- up

Front 45

3 Threats of a Patent

Back 45

1.Expensive Application Process
2. Disclosure of the invention (in 18 months it will be possible to copy)

3. it is hard to accuse another company for breaking the patent protection

Front 46

Stages of the Startup Financing Cycle

Back 46

Valley of Death
Breakeven

Early Stage

Late Stage

Front 47

4 Sources of Funding

Back 47

Loans
Mezzanine
Grants

Equity Capital

Front 48

5 Motivations of Business Angels for investing in Startups

Back 48

Supporting Young Entrepreneurs

Fun

Contribute with Personal Experience

Fruitful investment
Play a role in the Entrepreneurial Process

Front 49

6 Investment Criteria for Business Angels

related to characteristics of the entrepreneur

Back 49

Self Confidence
Motivation
Frustration Tolerance
Trustworthiness
Enthusiasm

Ability to communicate

Front 50

4 Investment Criteria for Business Angels

related to the market and product

Back 50

Uniqueness and Value for the Customer

Product Sales' Potential
Potential growth of the market

Product meets pledged properties

Front 51

4 Investment Criteria for Business Angels

related with financial factors

Back 51

Proportional of self financing from the entrepreneur
Anticipated Financial Return

Ability to reach breakeven without additional funding

Low overheads

Front 52

Structure of Venture Capital Business

Back 52

Investors (banks, private, insurances) give money to a fund with a certain interest rate.

This fund, managed by a VC Company allows the investment on a venture portfolio.

Front 53

5 TOP VC Industries in Europe

Back 53

1. energies and environment
2. communication

3. life sciences
4. computer and consumer electronics

5. consumer services

Front 54

Why startups should have a business plan?

Back 54

Every business or major project needs one.

It is a road map to navigate through a project concrete environment.

It requires honest thinking about the business concept.

You'll get more questions than answers.

Front 55

EXIST Program

Objectives

Back 55

Establish a culture of entrepreneurship in university, research and management,
Translate findings of academic research into economic value
Promote potential for business ideas and entrepreneurs.

Increase number of startups and create new jobs

Front 56

Typical Structural of a Business Plan

Back 56

Cover Page

Executive summary

Business Description
Business Environment Analysis

Industry Background

Competitive analysis
Market Analysis

Marketing Plan

Management team

Financial plan

Attachments and milestones

Front 57

EXIST Start-up Grant Application

Back 57

Executive Summary
Business Idea

Startup history

Expertise
Innovation Project Planning

Market Competition
Market Situation
USP and Value proposition
Competitors
Market Entry

Operational Planning
Financial Planning

Firm Organization

Opportunities and Risks

Front 58

Top reasons why startups fail

Back 58

No market need
Run out of cash
Not the right team

Pricing/cost issues
Poor Product
Lack of Business Model

Front 59

Organization

Back 59

Social entity that has a collective goal and is linked to an external environment.
implementations for the division of labor
hierarchical structure

Front 60

6 Principles of Effective Leadership

Back 60

1.Trust
2. Result Orientation
3. Contributing to the whole
4. Focus on few things
5. Use strengths
6. Think positive

Front 61

5 Tasks of Effective Leadership

Back 61

1. Create Goals
2. Organize
3. Decide
4. Monitor

5. Develop people

Front 62

7 Tools of Effective Leadership

Back 62

1.Meetings

2. Reports

3. Performance Assessment

4. Job Design
5. Budget

6. Waste Disposal
7. Personal Working methodology