Entrepreneurship Do program
Dina Ayman
August 2014
Entrepreneur...Meaning
e¢ Entrepreneur....the French word
“entreprendre”’ to undertake [qq
Or to DO!
¢ Undertake a business, an activity
or an idea....
* Whythelight
among all figures?
MIND OF AN
w ENTREPRENEUR
Entrepreneurship Definitions...
¢ At old times.....Merchant or a trader
“bputcher”....“carpenter”...all job owners
Of early jobs
that go beyond the purely
commercial
Entrepreneurship Defs (cont’d)
¢ Richard Cantillon....’the person who can has
the confidence to operate in conditions
whereby costs may be known but rewards are
uncertain...”
Ambiguity
Entrepreneurship Defs (cont’d)
¢ Jean Baptiste Say and Adam
Smith...”capitalist-manager/owner of
resources; land, labor and capital to construct
successful individual enterprises”...
¢ Land: build on my business -
¢ Labor: people/ workers/
suppliers
Entrepreneurship Defs (cont’d
¢ Joseph Schumpeter “father of
entrepreneurship” .......1950s
Entrepreneurship is linked to Innovation:
1) Create new goods and services (product
innovation)
2) Create new methods of goods and services
(goods and services in a different way)
Process innovation
To create/add value!!
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Entrepreneurship Defs (cont’d)
¢ 1980s...Wickham
eeeenes entrepreneurship is about creating and managing a
vision and communicating this vision to other people...”
¢ Being visionary and leaders
¢ Making people on ;
(employees) buy into
it :
¢ By communicating it successfully
Entrepreneurship Defs (cont’d)
¢ British economists such as Adam Smith, David
Ricardo, and John Stuart Mill referred
entrepreneurship to the broad term of
“business management”
¢ Is the Entrepreneur a Manager??
Entrepreneurs Managers
Seek change and newness Seek status quo
Risk takers Risk averse
Leads and inspires people Administers only
Types of Entrepreneurs...
1) Business: who establishes his own business
in an innovative way....
¢ Seeks profit....why?
1) Pay employees
2) Invest in business cycle
3) Personal wealth
¢ Naguib Sawiris
e Bill Gates
e Steve Jobs
Business owner can be
a) Small Business Owner
¢ He has less than 15 emplo
to 50 employees
b) Large Business Owner:
¢ over 50 employees |
¢ Or acorporation...”in the stockmarket”
¢ Multinational Company (MNCs)
6) vodafone
Richard Branson........An Example - i
_
y
te
g
¢ Founder of Virgin Group “CDs/music”
¢ Virgin electronics “more than
400 companies globally”...
¢ Virgin trains...” Virgin Express”
¢ Virgin airplanes...
*Virgin Airways”
¢ Virgin shuttles to aerospace...
¢ Guess what?
yy |
Age 16 he had first magazine “student
....Richard Branson Planet!
Types of Entrepreneurs (cont’d)
¢ Social Entrepreneur: one who seeks
NO profit, but to improve his overall
community;
¢ Concern is philanthropy |
¢ Has noble goals :make society a better place...
How???? (poverty, education, women problems)
¢ Where does he get money from?....Donors
Ashoka
Suall ¢lie
Types of entrepreneurs....cont’d
N
3) Political entrepreneur: " Fhaal
e Establishes new party
e Changes political regimes
Margret Thatcher
Anwar Sadat
Gamal Abdel Nasser
Ghandhi
“civil disobedience”
“non violent movements”
Entrepreneurship Rewards...
Environmental _
Level Organizational level
Contribution to Entrepreneurial
Individual level his own country Organizations
Entrepreneur
himself
Advantages of being an
Entrepreneur?
¢ Being my own boss
“u create ur world”
¢ Flexible working hours
¢ Be creative and Innovate
¢ Snobby! Arrogant! Confident..
“social status”...
¢ More wealth after 3- 5 yrs
* Make your own | #768" Bia”
¢ Interesting; 3
no routine and
boredom!
Environmental Effect?...
1) Decrease Unemployment; create more jobs...
¢ US one-third of people business owners
¢ These owners create 50%-60% job opportunities
¢ Egypt has 6 million in public service
Vs. Germany around 100,000 civil servant
¢ Financial Crisis 2008:
200,000 job loss working mainly in
automotive industry...
Morgan bankruptcy; loss of 60,000
employees...
See how many jobs created... ?
Environmental Texes —
Contribution... Due me, ae
2) Pay Taxes:
¢ Invest in country infrastructure; health, education,
transportation, electronic government...
¢ Entrepreneurs as “Naguib Sawiris” donated 3 billion...
¢ 70 billion from business men “long live Egypt” Account....
¢ Instead of taking loans with interests...
Environmental Contribution....(cont’d)
3) Increase Purchasing power of the Economy:
¢ With employee salary that | take from entrepreneurs...
¢ Increase activity of buying and selling in nation “national
fiscal annual budget”
¢ Currenc think S (films, fast-food...), recently Chinese
Yuan vs US §
¢ General Motors (GM) ask
for Bailout 50 SBillion to have
money coverage
“why: bankrupt?”
Environmental Contribution...
Jee ERES GSS?r*
3) Wealth of Nations:
¢ Diversified products...
Each one will buy what
he wants...” satisfy customers
preferences’ ...communism in Russia
¢ Have a national competitive LF ey
advantage that you can win against countries!
National Competitive Advantage...
Germany \@ United States
Mercedes-Benz
ls Entrepreneurship always GOOD?
¢ Baumol (1980s) said
Destructive Entrepreneurship.....
¢Monopoly x). » lun
¢ Informal sector
e “kiosks”
UK high street: Saturday
¢ Tax-evasion
¢ Corruption; bribery
* Bureaucracy
¢ Days to open a business
Entrepreneurial Organization....
.. Places innovation at its ~ RIOWITIH
heart to produce something of value
and social good...”
¢ Link Innovation and
Growth
¢ Kodak was bankrupt?
“polaroid” vs Kodak!
What is advantage of Entrepreneurial
Organization? Nok leads mobilephone marketshare
¢ Market Leader....”Giant”
Price Leader...”Apple” ! |
¢ High Market Share... pe es i
¢ Having a competitive advantage...
¢ High Profits; sales...
¢ High reauirement for employment.
How to make It entrepreneurial?
1) Culture:
¢ Innovation/newness/creativity
¢ Reward errors and learn by doing
¢ Interactive with market....’”open to experience”
¢ Have a competitive
advantage to beat your
competitors? shy
Exs? Low Price, high quality,
2) QUIULLUTS
Which structure is better. ?
Q: Which can innovate better; small or Big?
The challenge: From hierarchy to network structure.
We need methodologies for redesign and creating the change!
Traditional model: New model:
(centralized functional hierarchy) (decentralized leadership network)
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! Ft Changing mental s
aS] ca i | models, leadership @ e .e
Tepe Ty pe i and structure , E ®
I I l | eee
Agency Agency BROS i i
Ccanry Cavey Cahecy
| * “Bosses” rule! * “The market” rules!
I | * Top-down command and control * Qutside-in sense and respond
Sa Aagleteye * Top management is always in charge * Peripheral teams are always in charge
eal (ans * Centralized leadership * Devolved leadership
I 1 I T 1 * Functions, departments, divisions a * Network cells as mini-enterprises
* Outside-in value creation relationships/” pull * Hierarchical power relationships/” push”
Agency AGEWT Aguuy Ageny * Functional division guides structure * Functional integration guides structure
Entrepreneurial Organization...
2) Structure: (5 |
¢ R&D department.... OOS Cc
¢ Divide teams of 5-7 witha
leader....
¢ Make a creative team-unit with
best employees; no money-limit
¢ Take 15 minutes per day to Innovate....”"Google”
¢ Do an innovative box for new ideas...”3M”
Entrepreneurial Organizations...
3) Leadership:
¢ Leader or manager?
4} Visionary:
Steve JOBS Apple “‘change the world to better through
technology”..
¢ Bezos of Amazon “everyday we are at Day ONE!”...
¢ Ballmer Of Microsoft “focus on innovation and growth”
Entrepreneurial Organization...
5) Team Work:
¢ Empowerment? ?
¢ Each has a specialization but
we complement each other...
e Enjoy spirit of a team...
¢ Synergy; Brainstorming
