Description
During this such a description around starting new ventures 64 361.202.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Starting New Ventures -64-361.202
Dr. Jack M. Wilson
Distinguished Professor of Higher Education, Emerging Technologies, and Innovation
Tuesday and Thursday 3:30- 4:45 PM
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Professor
• Dr. Jack M. Wilson
([email protected])
– Ph.D. Physics (Physics of Liquid Crystal
Displays)
– Distinguished Professor of Higher Education
Emerging Technologies, and Innovation
– Formerly Professor, Department Chair,
Dean, Research Center Director, Provost,
Vice President and President
– Founder, CEO, and Chairman of ILINC
Corporation
• 1993-2000 $500 million market cap
software company
– Founding Chair of the Massachusetts Green
High Performance Computing Center
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Jack M. Wilson
• Pasteur 418
– Tue., Thur.: 1:30PM – 3:00PM By Appointment (request by email)
– other times upon special arrangement
• [email protected]
– Please use email as the primary form of contact.
•http://www.jackmwilson.net
• Course schedule & syllabus :http://www.jackmwilson.net/SNV/
• 978-934-2850 (Main Office)
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Course Objectives
• Discover and evaluate the sources and opportunities for new
business ventures.
• Describe the process of assembling the resources necessary
to launch a new venture
• Be familiar with the activities and concepts associated with
launching a new venture.
– Marketing, team building, financing, global, ethical, political, legal,
regulatory, social, environmental, and ever changing technological
issues.
• While this course cannot make you into an expert on any one
of these issues, it is designed to give you enough familiarity,
sensitivity, and motivation to allow you to further explore
these issues in other courses or on your own in your career.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Textbook:
• Starting a New Venture
– Text: Entrepreneurship: Successfully Launching
New Ventures (4th Edition) by Bruce R. Barringer
and Duane Ireland (Oct 27, 2011)
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Course Organization
• Two Classes per Week (Tue/Thur) of 1:15 minutes in length.
– 3:30 pm -4:45 pm
• Most classes will include a reading assignment due, lecture,
discussion, and a student individual/team led case
presentation.
– Prior to class: assignment complete
– 3:30-4:00 pm: lecture and discussion
– 4:00-4:15 pm: student team leads case presentation.
– 4:15-4:30 pm: student team leads case discussion
– 4:30-4:45 pm: instructor led summary and discussion.
– Classes will vary in timing and content as described in the detailed
schedule.
• Two exams: midterm and final.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Student Team Presentation (20%)
• There are 12-14 individual/team presentations which should be
selected before September 16 -the first team will present on
September 18.
• Individuals/Teams will present a case that is either taken from the
text or supplementary readings –but must be extended.
• Each team will use PowerPoint or other selected presentation
materials for presentation during the ~15 minute in class time
allotted.
• Each team will lead discussion for ~15 minutes after the
presentation.
• A well prepared case will use and cite additional sources from the
internet, library, or other sources.
• A well prepared case will tie the particular case to the topics in the
current assignment and past assignments.
• The team will turn in the PowerPoint (or other materials) after the
presentation.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Individual Project –Summary Business Plan (20%)
• Each Individual will pick an entrepreneurial idea. It may be
their own idea or it may be something they get from others.
• You will use the techniques in this class: feasibility studies,
business models, business plans, marketing, finance, etc. to
analyze this entrepreneurial activity.
• A final paper will be submitted. This paper will be similar to a
summary business plan.
• You will present a 60 sec (1 minute) elevator pitch at a class
near the end of the semester. (additional 10%)
– See the syllabus athttp://www.jackmwilson.net/SNV/ for details
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Grading Rubric
Points
(1) Class Participation in discussion
10%
(2) Exams midterm and final
40%
(3) Team Based Case Analysis Reports
20%
(4) Term Paper Analyzing Proposed New Venture
20%
(5) Elevator Pitch: Describing your proposed business venture
10%
(deduct) Attendance*
Possible point deductions
Total:
100%
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Tell me who you are?
• Name, Major, Year, Next Goal in Life
• If you were going to start a new venture (profit, non-profit,
social, internal corporate, etc.) what do you think that would
be?
• Have any of you started a new venture already?
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Interesting Entrepreneurs
• Bill Gates –Microsoft
• Harvard Dropout
• Computer whiz
• Wrote operating system for IBM
– Because IBM was too cheap to
license CPM
• Signed Giving Pledge and
Created the Gates Foundation
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Interesting Entrepreneurs
• Mother Theresa
• Agnes Gonxha Bojaxhiu
• Albanian
• Born in Macedonia
• Father an entrepreneur in
construction and trading
• Social entrepreneur in India
• Founder of the Order of the Missionaries of Charity
• Jim O’Keefe, GE, Image systems, ILINC President, visited her during GE period and called
Jack Welch to tell him how she had created an incredible charitable enterprise with
amazing entrepreneurial skill.
• “As the ranks of her congregation swelled and donations poured in from around India and
across the globe, the scope of Mother Teresa's charitable activities expanded
exponentially. Over the course of the 1950s and 1960s, she established a leper colony, an
orphanage, a nursing home, a family clinic and a string of mobile health clinics.”
• “By the time of her death in 1997, the Missionaries of Charity numbered over 4,000 -- in
addition to thousands more lay volunteers -- with 610 foundations in 123 countries on all
seven continents.” -http://www.biography.com/people/mother-teresa-9504160
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Interesting Entrepreneurs
• Larry Ellison
• Founder of Oracle
• Dropout of both the University of
Illinois and the University of Chicago
• Worked at various computing
companies in California and then
founded Software Development
Laboratories -> Relational software
->Oracle.
• Signed Giving Pledge along with Bill
Gates, Warren Buffet and others.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Interesting Entrepreneurs
• Richard Branson
• 4
th
Richest in the UK
• Severe Dyslexic
• Virgin Records->Virgin Megastore
• Virgin Atlantic Airline
• Virgin Trains, Virgin Galactic
• Helped form and fund “The Elders”
with Nelson Mandela and others who were devoted to
helping to solve world problems.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Mark Zuckerberg
• Harvard dropout
• FaceMash
• Always a computer geek
• Gamer
• Some say socially inept
– Others disagree
• Signed the Giving Pledge
• $100 million to Newark Schools
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Andrew Carnegie
• Born in Scotland
• Moved to Pittsburgh, PA
• Worked for what became the
Pennsylvania Railroad.
• Carnegie Steel Corporation -> US Steel
• Made his wife sign a pre-nuptial agreement in which she
acknowledged that he intended to give away his fortune rather
than keep it in the family.
• Carnegie Libraries
• Carnegie Institute of Technology ->Carnegie Mellon University
• Carnegie Endowment for International Peace.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Muhammad Yunus
• Bangladesh
• Chittagong College
• Dhaka College
• PhD Economics Vanderbilt
• Professor Economics in Bangladesh
• Founded profitable packaging company
• Invented microcredit and microfinance
• Nobel Peace Prize
• Founder of Grameen Bank
– In the late 1980s, Grameen started to diversify by attending to underutilized fishing ponds and irrigation
pumps like deep tube wells.[21] In 1989, these diversified interests started growing into separate
organizations. The fisheries project became Grameen Motsho ("Grameen Fisheries Foundation") and the
irrigation project became Grameen Krishi ("Grameen Agriculture Foundation").[21] In time, the Grameen
initiative grew into a multi-faceted group of profitable and non-profit ventures, including major projects like
Grameen Trust and Grameen Fund, which runs equity projects like Grameen Software Limited, Grameen
CyberNet Limited, and Grameen Knitwear Limited,[22] as well as Grameen Telecom, which has a stake in
Grameenphone (GP), the biggest private phone company in Bangladesh.[23] From its start in March 1997 to
2007, GP's Village Phone (Polli Phone) project had brought cell-phone ownership to 260,000 rural poor in
over 50,000 villages.[24]
– The success of the Grameen microfinance model inspired similar efforts in about 100 developing countries
and even in developed countries including the United States.[25] Many microcredit projects retain
Grameen's emphasis of lending to women. More than 94% of Grameen loans have gone to women, who
suffer disproportionately from poverty and who are more likely than men to devote their earnings to their
families
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Mary Kay Ash
• Born in Texas
• Successful in sales, but angry when men were
promoted over her
• 1963 - business plan for Mary Kay Cosmetics
• Founded with two sons
• Pyramid models of sales representatives.
• More than 100,000 Pink Cadillacs given out
• 6
th
largest direct sales
– $2.9 billion
• Wanted to help women to advance by helping them to help
others.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Steve Jobs
• Don’t let the noise of other’s opinions drown out your own
inner voice. And most importantly, have the courage to follow
your heart and intuition. They somehow already know what
you truly want to become. Everything else is secondary.
– Steve Jobs
• Cofounder of Apple, NeXT,
and Pixar
• Visionary of iPod, iPhone, iPad,
iTunes, Macintosh, Apple II, etc.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Mark and Elishia Saab
• Mark and Elisha Saab ->
• UMass Lowell ‘81,
Plastics Engineering
• Advanced Polymers -1989
• In 1988, Mark Saab ‘81 had a vision. A vision of a product that
no one in the market was making: an ultra-thin walled
medical tubing. Saab believed he could produce it and was
confident the market would be there.
• And his wife Elisia believed in him.
• Sacrificing nights and weekends, while working two day jobs,
she helped Mark turn his vision into one of the most
respected companies in its field.
• Donor of over $ million to UML Scholarships
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Harish Hande ‘98 ‘00
• UML MS ‘98 renewable energy engineering
• UML PhD ‘00 in mechanical engineering (energy)
• co-founded Solar Electric Light Co. India in 1995.
– As SELCO’s managing director, he has pioneered
access to solar electricity for more than half a million people in India,
where more than half the population does not have electricity, through
customized home-lighting systems and innovative financing.
• Hande received the 2011 Magsaysay Award, widely considered
Asia’s equivalent of the Nobel Prize,
• One of 21 Young Leaders for India’s 21st Century by Business Today
• Social Entrepreneur of the Year for 2007 by the Schwab Foundation
for Social Entrepreneurship and the Nand and Jeep Khemkha
Foundation.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Jim Dandeneau ‘80
• Jim Dandeneau – CEO & Owner
• UMass Lowell ‘80 Plastics Engineering
• Hockey Player
• Jim founded Putnam Plastics in 1984 and serves as President
and CEO. Under Jim’s guidance, Putnam Plastics has
established itself as the leading source for complex extrusions
and co-extrusions for the medical device industry
• Co-owner Connecticut National Golf Course
• Donor of over a $ 1 million to UML scholarships
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Gururaj “Desh” Deshpande
• Born in India
• Indian Institute of Technology
• PhD Queens University, Ontario
• Motorola
• 1990Founded Cascade Communications (networking devices)
• Sold Cascade to Ascend Comm. for $3.7 billion in 1997
• Founded Sycamore Networks in 1998 ($18 B in 1999)
• Founded Tejas Networks and A123 Systems
• Founded MIT Deshpande Center with $20 million donation
• The Deshpande Education Trust (DET) -the Master of Social
Entrepreneurship program.
– The Master of Social Entrepreneurship (MSE) is a two-year residential
program affiliated with Karnatak University Dharwad India
• Founded Merrimac Valley Sandbox at UML
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
John Pulichino ‘67
• John Pulichino-Joy Tong Building
• Industrial Management
• Polaroid
• American Tourister (President and CEO)
• Founded Innovation Luggage in 1993 –bankrupt in 2001
• Joy Tong, wife, founded Group Three International Limited (1984).
He became CEO and she Creative Director
• 2003 licensing agreement between Group III and Wenger, maker of
the 100-year-old Genuine Swiss Army Knife brand,
– has generated a company that, since 2003, has done more than $400
million in sales. With offices in Florida, Taiwan and Mainland China, Group
III now distributes more than 60 products through Target Stores alone.
– Recently sold firm to private equity group.
• Donated about $5 million to UML for scholarships and building
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Robert “Rob” Manning ‘84
• Chairman and CEO of
MFS Securities
• Credited with saving a company that nearly expired!
• “For the rare comeback story among money managers, look to MFS
Investment Management, one of the oldest names in the mutual
fund business but also one of the most battered after the Internet
bubble popped in 2000.” –Institutional Investor
• “CEO Manning described his approach as the opposite of the star
system used by some rivals. Employees are expected to work
closely together and sacrifice their egos as necessary; even fund
managers with terrific performance records will face bonus cuts if
they do not treat other employees respectfully, he said.”
• Rob and Donna (Nursing ‘84) are $5 million donors to UML
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Charles Hoff ‘66
• Charlie and Josephine Hoff
• Shown (right) with $23 million donors
Jack and Shelly Blais
• Hoff received a bachelor’s degree in
industrial management at UMass Lowell and a master’s degree
from Northeastern University.
• He has been a senior vice president of operations for Bausch &
Lomb and held senior management positions with Wang
Laboratories, Polaroid and Gillette.
• From 1983 to 1986, he was president, CEO and owner of ARL
Analytical Instruments Co., which generated more than $100 million
in worldwide sales.
• He then became owner, chairman and CEO of Universal/Univis, Inc.,
a group of designer eyewear companies.
• He and Josephine have donated over $5.5 million to scholarships
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Jack Blais
• Jack and Shelly Blais
– With Nobel Prize winner Craig Mello,
Chancellor Lazare, and President Wilson
• Private Investor in Precision Optics
• Founded 15 companies,
– many of which he has since sold.
– optical and optical-interference technologies for military, medical and commercial
applications
• In 2001 Corning paid $2.1 Billion to acquire NetOptix from him.
• Founder and president of Blais Co. of Framingham, a holding company
specializing in high-technology firms, and an active partner in Capital Risk
Management Inc., a management consulting firm.
• Founded a bank in Florida
• Now does Philanthropy with low profile
– $23 million to UMass Medical School for the Aaron Lazare Building and Blais Chair
of Molecular Medicine for Nobel Prize winner Craig Mello.
– $21 million to Dana Farber by buying naming rights to Patriots Training Facility and
donating them to Dana Farber.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
John F. Kennedy
• UMass Lowell, BS, 1970
• UMass Amherst, MBA, 1976
• Nova Ventures Corp.
– President and Chief Financial Officer (retired)
• Director, Datacom Systems, Inc.
• Director, Harvard Biocience, Inc.
• Donor for Scholarships to both UMass Amherst and UMass
Lowell
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Manijeh Nazari Goldberg
• UMass Lowell BS Engineering
• UML MS Computer Science
• MIT MBA
• Privo Technologies
– MIT 100 K Award winner
• Nano delivery of insulin by chewing gum
– Nano Drug Delivery
• In a very tough area of raising money to commercialize.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Joe Lane
• Founder and CEO of SafePath Medical
• BS Engineering UMass Lowell
• MBA Babson
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
What is Entrepreneurship?
• Entrepreneurship is a way of thinking, reasoning and acting
that is opportunity obsessed, holistic in approach and
leadership based. –Jeff Timmons
–http://uir.unisa.ac.za/bitstream/handle/10500/2050/01dissertation.p
df?sequence=2
• Entrepreneurship is seen as new combinations, which include
the introduction of new goods, new methods of production,
opening of new markets, new sources of supply, or a new
organization.
– Schumpeter
• Entrepreneurship is an act of innovation that involves
endowing existing resources with new wealth producing
capacity. –Peter Drucker
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
? Spots an Opportunity (see a problem)
? Has New Idea (find a solution)
? Is an Innovator
? Takes Well Thought Out Risks, Calculated
? Creates and builds a business or other enterprise
? Makes change
Who is an Entrepreneur?
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Why be an Entrepreneur?http://money.cnn.com/video/#/video/fsb/2007/12/20/acton.call.of.entrepreneur.fsb
? Be their own boss
? Pursue their own ideas
? Realize financial (or other) rewards
http://digital.films.com/PortalViewVideo.aspx?tid=3244&loid=2698
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Characteristics of Successful Entrepreneurs
• Passion for the Business
– Desire to change the World
• A Product/Customer Focus
– Steve Jobs was perhaps the epitome –although he did say that “A lot
of times, people don't know what they want until you show it to
them.” -BusinessWeek (25 May 1998)
• Tenacity Despite Failure
• Execution Intelligence
• Why does the World Care?
– Innovation –Change the World
– Job Creation
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Rate of Starting New Ventures
• Rate depends upon need, culture, and governmental
environment.
– Need: individuals in areas where good jobs are not plentiful often
must create their own. Peru 27.2% or Brazil 17.5%
– Culture: Some cultures are more supportive of new venture formation.
• California is generally considered to be more supportive than
Massachusetts –although that has improved a lot!
• The US (7.6%) is more supportive than Russia (3.9%)
– Governmental issues: entrepreneurship relies on certain economic
freedoms as well as a well structured legal and financial infrastructure.
• Failure is overstated at 9 out of 10. According to SBA, after
four years 50% are open, 17% are closed but considered
successful, and 33% have failed.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Passion drives Key actions:
• The ability to learn and iterate
• A willingness to work hard for an extended time
• Ability to overcome setbacks and “nos.”
• Ability to listen to feedback on the limitations of the
organization and yourself.
• Perseverance and persistence when the going gets tough
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Common Myths About Entrepreneurs
• they are born -not made
• they are gamblers
• they are motivated primarily by money.
• they should be young and energetic
• they love the spotlight
– NOT TRUE!
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Common traits
• Moderate risk taker
• Networker
• Achievement motivated
• Alert to Opportunities
• Creative
• Decisive
• Energetic,
• Strong work ethic
• Long attention span
• Optimistic
• Persuasive
• Promoter
• Resource Assembler/leverager
• Self-confident
• Self-starter
• Tenacious
• Tolerant of Ambiguity
• Visionary
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
DNA of an Entrepreneur – from Ernst & Young
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Types of New Ventures
• Salary Substitute Firms
– Restaurants, convenience stores, dry cleaners, etc.
• Life Style Firms
– Indulge a persons passion, hobby or desire for a particular lifestyle
– Marina owner I met in Tortola was a former Wall Street Executive
• Entrepreneurial Firms
– Private Firms
– Public firms
• Exit Strategies?
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
The Team: ILinc LearnLinc Founders
• Degerhan Usluel, Mark Bernstein, Jack Wilson
• Sat in my basement to discuss: what kind of company did we
want to build. Ans. Become public by selling or IPO.
• 1993-2000
• Software Company
• Sold in 2000 to
Gilat Communications
• Resulting Company
$500 million
• In March 2000.
Chief Technology
Officer
Vice President
Marketing
Chairman
and CEO
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Changing Demographics
• Women
– 6.5 million women owned firms in 2002 growing at 19.8% and
generating $940 B and employing 7. M people.
• Minorities
– Increasing growth rates led by Latino entrepreneurs
• Seniors
• Youths
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Two Key Concepts –one in text and one not.
• Joseph Schumpeter –Harvard University economist from
Austria
– Creative Destruction – 1934- new products and technologies make
old products and technologies obsolete
• Clayton Christensen –Harvard University Management
– Creative Disruption -1997 – new products begin in new, unexplored
markets but grow in quality and capability to displace older markets.
• Mini-computer disrupted mainframes and were in turn disrupted
by PC’s.
• Steel mini-mills created poor quality steel at low prices to take the
least profitable part of the steel market. They then grew to
displace the old-line steel companies.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
• Technology Entrepreneurship
• Small Business Entrepreneurship
• Corporate Entrepreneurship
• Social Entrepreneurship
Different types of Entrepreneurship
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Entrepreneurship Process
• Develop successful business ideas
– Recognition of an opportunity
– Feasibility study
• Move from an idea to an entrepreneurial firm
– Deciding to proceed and assembling resources
– Launching a new venture
• Manage and grow an entrepreneurial firm
• Harvesting the rewards which can be monetary or social good.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
What are the Skills required to be a successful
Entrepreneur?
• What kind of product/service will you offer and what value does it
create for people?
• Idea generation/opportunity identification
• Product development
• Who will buy your product? Who is your target market?
• Marketing Skills
• Market Research
• How to fund your business and make money?
• Business Finance
• Networking
• How to manage and grow your business?
• HR management, operational management, strategic management,
etc.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
• Real estate
• Restaurant
• Medical device
• Composting
• Vending machine
• GPS application
• Cell phone apps
• Campus transportation
• Day care center
• ecommerce website
• Retailing
• Consider the DifferenceMakers Program at UML
UML Students have developed business ideas in
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Corporate Entrepreneurship
• Recent business history is replete with companies who have
either gone to the corporate graveyard (e.g., Digital
Equipment Corporation; Wang; Siemens-Nixdorf) or are now
sadly diminished (e.g., Polaroid; Kodak) because of the
reluctance of senior management to embrace necessary
change (a classical yet apocalyptic example was the collapse
of the Swiss watch industry in the 1970s and early 1980s
where companies refused to accept the digital threat to their
analog dominance).
– Philip Dover, Babson College and Udo Dierk, Paderborn
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Diana Nyad
– Age 64 –Succeeds on fifth try from CUBA to Florida
• Three things:
• Never give up
• Never too old
• Never alone
– life is a team sport
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Persistence –Keep On Smiling and Moving Forward
• When I was young, I thought it was about being brilliant. Now
I know that brilliance is good, but persistence wins the day! -
Jack Wilson
• Don’t Look back, something might be gaining on you.
– Satchel Paige
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Who are you -1?
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Who are you -2?
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Who are you -3?
doc_881418526.pdf
During this such a description around starting new ventures 64 361.202.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Starting New Ventures -64-361.202
Dr. Jack M. Wilson
Distinguished Professor of Higher Education, Emerging Technologies, and Innovation
Tuesday and Thursday 3:30- 4:45 PM
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Professor
• Dr. Jack M. Wilson
([email protected])
– Ph.D. Physics (Physics of Liquid Crystal
Displays)
– Distinguished Professor of Higher Education
Emerging Technologies, and Innovation
– Formerly Professor, Department Chair,
Dean, Research Center Director, Provost,
Vice President and President
– Founder, CEO, and Chairman of ILINC
Corporation
• 1993-2000 $500 million market cap
software company
– Founding Chair of the Massachusetts Green
High Performance Computing Center
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Jack M. Wilson
• Pasteur 418
– Tue., Thur.: 1:30PM – 3:00PM By Appointment (request by email)
– other times upon special arrangement
• [email protected]
– Please use email as the primary form of contact.
•http://www.jackmwilson.net
• Course schedule & syllabus :http://www.jackmwilson.net/SNV/
• 978-934-2850 (Main Office)
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Course Objectives
• Discover and evaluate the sources and opportunities for new
business ventures.
• Describe the process of assembling the resources necessary
to launch a new venture
• Be familiar with the activities and concepts associated with
launching a new venture.
– Marketing, team building, financing, global, ethical, political, legal,
regulatory, social, environmental, and ever changing technological
issues.
• While this course cannot make you into an expert on any one
of these issues, it is designed to give you enough familiarity,
sensitivity, and motivation to allow you to further explore
these issues in other courses or on your own in your career.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Textbook:
• Starting a New Venture
– Text: Entrepreneurship: Successfully Launching
New Ventures (4th Edition) by Bruce R. Barringer
and Duane Ireland (Oct 27, 2011)
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Course Organization
• Two Classes per Week (Tue/Thur) of 1:15 minutes in length.
– 3:30 pm -4:45 pm
• Most classes will include a reading assignment due, lecture,
discussion, and a student individual/team led case
presentation.
– Prior to class: assignment complete
– 3:30-4:00 pm: lecture and discussion
– 4:00-4:15 pm: student team leads case presentation.
– 4:15-4:30 pm: student team leads case discussion
– 4:30-4:45 pm: instructor led summary and discussion.
– Classes will vary in timing and content as described in the detailed
schedule.
• Two exams: midterm and final.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Student Team Presentation (20%)
• There are 12-14 individual/team presentations which should be
selected before September 16 -the first team will present on
September 18.
• Individuals/Teams will present a case that is either taken from the
text or supplementary readings –but must be extended.
• Each team will use PowerPoint or other selected presentation
materials for presentation during the ~15 minute in class time
allotted.
• Each team will lead discussion for ~15 minutes after the
presentation.
• A well prepared case will use and cite additional sources from the
internet, library, or other sources.
• A well prepared case will tie the particular case to the topics in the
current assignment and past assignments.
• The team will turn in the PowerPoint (or other materials) after the
presentation.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Individual Project –Summary Business Plan (20%)
• Each Individual will pick an entrepreneurial idea. It may be
their own idea or it may be something they get from others.
• You will use the techniques in this class: feasibility studies,
business models, business plans, marketing, finance, etc. to
analyze this entrepreneurial activity.
• A final paper will be submitted. This paper will be similar to a
summary business plan.
• You will present a 60 sec (1 minute) elevator pitch at a class
near the end of the semester. (additional 10%)
– See the syllabus athttp://www.jackmwilson.net/SNV/ for details
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Grading Rubric
Points
(1) Class Participation in discussion
10%
(2) Exams midterm and final
40%
(3) Team Based Case Analysis Reports
20%
(4) Term Paper Analyzing Proposed New Venture
20%
(5) Elevator Pitch: Describing your proposed business venture
10%
(deduct) Attendance*
Possible point deductions
Total:
100%
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Tell me who you are?
• Name, Major, Year, Next Goal in Life
• If you were going to start a new venture (profit, non-profit,
social, internal corporate, etc.) what do you think that would
be?
• Have any of you started a new venture already?
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Interesting Entrepreneurs
• Bill Gates –Microsoft
• Harvard Dropout
• Computer whiz
• Wrote operating system for IBM
– Because IBM was too cheap to
license CPM
• Signed Giving Pledge and
Created the Gates Foundation
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Interesting Entrepreneurs
• Mother Theresa
• Agnes Gonxha Bojaxhiu
• Albanian
• Born in Macedonia
• Father an entrepreneur in
construction and trading
• Social entrepreneur in India
• Founder of the Order of the Missionaries of Charity
• Jim O’Keefe, GE, Image systems, ILINC President, visited her during GE period and called
Jack Welch to tell him how she had created an incredible charitable enterprise with
amazing entrepreneurial skill.
• “As the ranks of her congregation swelled and donations poured in from around India and
across the globe, the scope of Mother Teresa's charitable activities expanded
exponentially. Over the course of the 1950s and 1960s, she established a leper colony, an
orphanage, a nursing home, a family clinic and a string of mobile health clinics.”
• “By the time of her death in 1997, the Missionaries of Charity numbered over 4,000 -- in
addition to thousands more lay volunteers -- with 610 foundations in 123 countries on all
seven continents.” -http://www.biography.com/people/mother-teresa-9504160
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Interesting Entrepreneurs
• Larry Ellison
• Founder of Oracle
• Dropout of both the University of
Illinois and the University of Chicago
• Worked at various computing
companies in California and then
founded Software Development
Laboratories -> Relational software
->Oracle.
• Signed Giving Pledge along with Bill
Gates, Warren Buffet and others.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Interesting Entrepreneurs
• Richard Branson
• 4
th
Richest in the UK
• Severe Dyslexic
• Virgin Records->Virgin Megastore
• Virgin Atlantic Airline
• Virgin Trains, Virgin Galactic
• Helped form and fund “The Elders”
with Nelson Mandela and others who were devoted to
helping to solve world problems.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Mark Zuckerberg
• Harvard dropout
• FaceMash
• Always a computer geek
• Gamer
• Some say socially inept
– Others disagree
• Signed the Giving Pledge
• $100 million to Newark Schools
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Andrew Carnegie
• Born in Scotland
• Moved to Pittsburgh, PA
• Worked for what became the
Pennsylvania Railroad.
• Carnegie Steel Corporation -> US Steel
• Made his wife sign a pre-nuptial agreement in which she
acknowledged that he intended to give away his fortune rather
than keep it in the family.
• Carnegie Libraries
• Carnegie Institute of Technology ->Carnegie Mellon University
• Carnegie Endowment for International Peace.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Muhammad Yunus
• Bangladesh
• Chittagong College
• Dhaka College
• PhD Economics Vanderbilt
• Professor Economics in Bangladesh
• Founded profitable packaging company
• Invented microcredit and microfinance
• Nobel Peace Prize
• Founder of Grameen Bank
– In the late 1980s, Grameen started to diversify by attending to underutilized fishing ponds and irrigation
pumps like deep tube wells.[21] In 1989, these diversified interests started growing into separate
organizations. The fisheries project became Grameen Motsho ("Grameen Fisheries Foundation") and the
irrigation project became Grameen Krishi ("Grameen Agriculture Foundation").[21] In time, the Grameen
initiative grew into a multi-faceted group of profitable and non-profit ventures, including major projects like
Grameen Trust and Grameen Fund, which runs equity projects like Grameen Software Limited, Grameen
CyberNet Limited, and Grameen Knitwear Limited,[22] as well as Grameen Telecom, which has a stake in
Grameenphone (GP), the biggest private phone company in Bangladesh.[23] From its start in March 1997 to
2007, GP's Village Phone (Polli Phone) project had brought cell-phone ownership to 260,000 rural poor in
over 50,000 villages.[24]
– The success of the Grameen microfinance model inspired similar efforts in about 100 developing countries
and even in developed countries including the United States.[25] Many microcredit projects retain
Grameen's emphasis of lending to women. More than 94% of Grameen loans have gone to women, who
suffer disproportionately from poverty and who are more likely than men to devote their earnings to their
families
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Mary Kay Ash
• Born in Texas
• Successful in sales, but angry when men were
promoted over her
• 1963 - business plan for Mary Kay Cosmetics
• Founded with two sons
• Pyramid models of sales representatives.
• More than 100,000 Pink Cadillacs given out
• 6
th
largest direct sales
– $2.9 billion
• Wanted to help women to advance by helping them to help
others.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Steve Jobs
• Don’t let the noise of other’s opinions drown out your own
inner voice. And most importantly, have the courage to follow
your heart and intuition. They somehow already know what
you truly want to become. Everything else is secondary.
– Steve Jobs
• Cofounder of Apple, NeXT,
and Pixar
• Visionary of iPod, iPhone, iPad,
iTunes, Macintosh, Apple II, etc.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Mark and Elishia Saab
• Mark and Elisha Saab ->
• UMass Lowell ‘81,
Plastics Engineering
• Advanced Polymers -1989
• In 1988, Mark Saab ‘81 had a vision. A vision of a product that
no one in the market was making: an ultra-thin walled
medical tubing. Saab believed he could produce it and was
confident the market would be there.
• And his wife Elisia believed in him.
• Sacrificing nights and weekends, while working two day jobs,
she helped Mark turn his vision into one of the most
respected companies in its field.
• Donor of over $ million to UML Scholarships
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Harish Hande ‘98 ‘00
• UML MS ‘98 renewable energy engineering
• UML PhD ‘00 in mechanical engineering (energy)
• co-founded Solar Electric Light Co. India in 1995.
– As SELCO’s managing director, he has pioneered
access to solar electricity for more than half a million people in India,
where more than half the population does not have electricity, through
customized home-lighting systems and innovative financing.
• Hande received the 2011 Magsaysay Award, widely considered
Asia’s equivalent of the Nobel Prize,
• One of 21 Young Leaders for India’s 21st Century by Business Today
• Social Entrepreneur of the Year for 2007 by the Schwab Foundation
for Social Entrepreneurship and the Nand and Jeep Khemkha
Foundation.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Jim Dandeneau ‘80
• Jim Dandeneau – CEO & Owner
• UMass Lowell ‘80 Plastics Engineering
• Hockey Player
• Jim founded Putnam Plastics in 1984 and serves as President
and CEO. Under Jim’s guidance, Putnam Plastics has
established itself as the leading source for complex extrusions
and co-extrusions for the medical device industry
• Co-owner Connecticut National Golf Course
• Donor of over a $ 1 million to UML scholarships
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Gururaj “Desh” Deshpande
• Born in India
• Indian Institute of Technology
• PhD Queens University, Ontario
• Motorola
• 1990Founded Cascade Communications (networking devices)
• Sold Cascade to Ascend Comm. for $3.7 billion in 1997
• Founded Sycamore Networks in 1998 ($18 B in 1999)
• Founded Tejas Networks and A123 Systems
• Founded MIT Deshpande Center with $20 million donation
• The Deshpande Education Trust (DET) -the Master of Social
Entrepreneurship program.
– The Master of Social Entrepreneurship (MSE) is a two-year residential
program affiliated with Karnatak University Dharwad India
• Founded Merrimac Valley Sandbox at UML
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
John Pulichino ‘67
• John Pulichino-Joy Tong Building
• Industrial Management
• Polaroid
• American Tourister (President and CEO)
• Founded Innovation Luggage in 1993 –bankrupt in 2001
• Joy Tong, wife, founded Group Three International Limited (1984).
He became CEO and she Creative Director
• 2003 licensing agreement between Group III and Wenger, maker of
the 100-year-old Genuine Swiss Army Knife brand,
– has generated a company that, since 2003, has done more than $400
million in sales. With offices in Florida, Taiwan and Mainland China, Group
III now distributes more than 60 products through Target Stores alone.
– Recently sold firm to private equity group.
• Donated about $5 million to UML for scholarships and building
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Robert “Rob” Manning ‘84
• Chairman and CEO of
MFS Securities
• Credited with saving a company that nearly expired!
• “For the rare comeback story among money managers, look to MFS
Investment Management, one of the oldest names in the mutual
fund business but also one of the most battered after the Internet
bubble popped in 2000.” –Institutional Investor
• “CEO Manning described his approach as the opposite of the star
system used by some rivals. Employees are expected to work
closely together and sacrifice their egos as necessary; even fund
managers with terrific performance records will face bonus cuts if
they do not treat other employees respectfully, he said.”
• Rob and Donna (Nursing ‘84) are $5 million donors to UML
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Charles Hoff ‘66
• Charlie and Josephine Hoff
• Shown (right) with $23 million donors
Jack and Shelly Blais
• Hoff received a bachelor’s degree in
industrial management at UMass Lowell and a master’s degree
from Northeastern University.
• He has been a senior vice president of operations for Bausch &
Lomb and held senior management positions with Wang
Laboratories, Polaroid and Gillette.
• From 1983 to 1986, he was president, CEO and owner of ARL
Analytical Instruments Co., which generated more than $100 million
in worldwide sales.
• He then became owner, chairman and CEO of Universal/Univis, Inc.,
a group of designer eyewear companies.
• He and Josephine have donated over $5.5 million to scholarships
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Jack Blais
• Jack and Shelly Blais
– With Nobel Prize winner Craig Mello,
Chancellor Lazare, and President Wilson
• Private Investor in Precision Optics
• Founded 15 companies,
– many of which he has since sold.
– optical and optical-interference technologies for military, medical and commercial
applications
• In 2001 Corning paid $2.1 Billion to acquire NetOptix from him.
• Founder and president of Blais Co. of Framingham, a holding company
specializing in high-technology firms, and an active partner in Capital Risk
Management Inc., a management consulting firm.
• Founded a bank in Florida
• Now does Philanthropy with low profile
– $23 million to UMass Medical School for the Aaron Lazare Building and Blais Chair
of Molecular Medicine for Nobel Prize winner Craig Mello.
– $21 million to Dana Farber by buying naming rights to Patriots Training Facility and
donating them to Dana Farber.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
John F. Kennedy
• UMass Lowell, BS, 1970
• UMass Amherst, MBA, 1976
• Nova Ventures Corp.
– President and Chief Financial Officer (retired)
• Director, Datacom Systems, Inc.
• Director, Harvard Biocience, Inc.
• Donor for Scholarships to both UMass Amherst and UMass
Lowell
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Manijeh Nazari Goldberg
• UMass Lowell BS Engineering
• UML MS Computer Science
• MIT MBA
• Privo Technologies
– MIT 100 K Award winner
• Nano delivery of insulin by chewing gum
– Nano Drug Delivery
• In a very tough area of raising money to commercialize.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Joe Lane
• Founder and CEO of SafePath Medical
• BS Engineering UMass Lowell
• MBA Babson
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
What is Entrepreneurship?
• Entrepreneurship is a way of thinking, reasoning and acting
that is opportunity obsessed, holistic in approach and
leadership based. –Jeff Timmons
–http://uir.unisa.ac.za/bitstream/handle/10500/2050/01dissertation.p
df?sequence=2
• Entrepreneurship is seen as new combinations, which include
the introduction of new goods, new methods of production,
opening of new markets, new sources of supply, or a new
organization.
– Schumpeter
• Entrepreneurship is an act of innovation that involves
endowing existing resources with new wealth producing
capacity. –Peter Drucker
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
? Spots an Opportunity (see a problem)
? Has New Idea (find a solution)
? Is an Innovator
? Takes Well Thought Out Risks, Calculated
? Creates and builds a business or other enterprise
? Makes change
Who is an Entrepreneur?
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Why be an Entrepreneur?http://money.cnn.com/video/#/video/fsb/2007/12/20/acton.call.of.entrepreneur.fsb
? Be their own boss
? Pursue their own ideas
? Realize financial (or other) rewards
http://digital.films.com/PortalViewVideo.aspx?tid=3244&loid=2698
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Characteristics of Successful Entrepreneurs
• Passion for the Business
– Desire to change the World
• A Product/Customer Focus
– Steve Jobs was perhaps the epitome –although he did say that “A lot
of times, people don't know what they want until you show it to
them.” -BusinessWeek (25 May 1998)
• Tenacity Despite Failure
• Execution Intelligence
• Why does the World Care?
– Innovation –Change the World
– Job Creation
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Rate of Starting New Ventures
• Rate depends upon need, culture, and governmental
environment.
– Need: individuals in areas where good jobs are not plentiful often
must create their own. Peru 27.2% or Brazil 17.5%
– Culture: Some cultures are more supportive of new venture formation.
• California is generally considered to be more supportive than
Massachusetts –although that has improved a lot!
• The US (7.6%) is more supportive than Russia (3.9%)
– Governmental issues: entrepreneurship relies on certain economic
freedoms as well as a well structured legal and financial infrastructure.
• Failure is overstated at 9 out of 10. According to SBA, after
four years 50% are open, 17% are closed but considered
successful, and 33% have failed.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Passion drives Key actions:
• The ability to learn and iterate
• A willingness to work hard for an extended time
• Ability to overcome setbacks and “nos.”
• Ability to listen to feedback on the limitations of the
organization and yourself.
• Perseverance and persistence when the going gets tough
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Common Myths About Entrepreneurs
• they are born -not made
• they are gamblers
• they are motivated primarily by money.
• they should be young and energetic
• they love the spotlight
– NOT TRUE!
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Common traits
• Moderate risk taker
• Networker
• Achievement motivated
• Alert to Opportunities
• Creative
• Decisive
• Energetic,
• Strong work ethic
• Long attention span
• Optimistic
• Persuasive
• Promoter
• Resource Assembler/leverager
• Self-confident
• Self-starter
• Tenacious
• Tolerant of Ambiguity
• Visionary
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
DNA of an Entrepreneur – from Ernst & Young
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Types of New Ventures
• Salary Substitute Firms
– Restaurants, convenience stores, dry cleaners, etc.
• Life Style Firms
– Indulge a persons passion, hobby or desire for a particular lifestyle
– Marina owner I met in Tortola was a former Wall Street Executive
• Entrepreneurial Firms
– Private Firms
– Public firms
• Exit Strategies?
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
The Team: ILinc LearnLinc Founders
• Degerhan Usluel, Mark Bernstein, Jack Wilson
• Sat in my basement to discuss: what kind of company did we
want to build. Ans. Become public by selling or IPO.
• 1993-2000
• Software Company
• Sold in 2000 to
Gilat Communications
• Resulting Company
$500 million
• In March 2000.
Chief Technology
Officer
Vice President
Marketing
Chairman
and CEO
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Changing Demographics
• Women
– 6.5 million women owned firms in 2002 growing at 19.8% and
generating $940 B and employing 7. M people.
• Minorities
– Increasing growth rates led by Latino entrepreneurs
• Seniors
• Youths
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Two Key Concepts –one in text and one not.
• Joseph Schumpeter –Harvard University economist from
Austria
– Creative Destruction – 1934- new products and technologies make
old products and technologies obsolete
• Clayton Christensen –Harvard University Management
– Creative Disruption -1997 – new products begin in new, unexplored
markets but grow in quality and capability to displace older markets.
• Mini-computer disrupted mainframes and were in turn disrupted
by PC’s.
• Steel mini-mills created poor quality steel at low prices to take the
least profitable part of the steel market. They then grew to
displace the old-line steel companies.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
• Technology Entrepreneurship
• Small Business Entrepreneurship
• Corporate Entrepreneurship
• Social Entrepreneurship
Different types of Entrepreneurship
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Entrepreneurship Process
• Develop successful business ideas
– Recognition of an opportunity
– Feasibility study
• Move from an idea to an entrepreneurial firm
– Deciding to proceed and assembling resources
– Launching a new venture
• Manage and grow an entrepreneurial firm
• Harvesting the rewards which can be monetary or social good.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
What are the Skills required to be a successful
Entrepreneur?
• What kind of product/service will you offer and what value does it
create for people?
• Idea generation/opportunity identification
• Product development
• Who will buy your product? Who is your target market?
• Marketing Skills
• Market Research
• How to fund your business and make money?
• Business Finance
• Networking
• How to manage and grow your business?
• HR management, operational management, strategic management,
etc.
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
• Real estate
• Restaurant
• Medical device
• Composting
• Vending machine
• GPS application
• Cell phone apps
• Campus transportation
• Day care center
• ecommerce website
• Retailing
• Consider the DifferenceMakers Program at UML
UML Students have developed business ideas in
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Corporate Entrepreneurship
• Recent business history is replete with companies who have
either gone to the corporate graveyard (e.g., Digital
Equipment Corporation; Wang; Siemens-Nixdorf) or are now
sadly diminished (e.g., Polaroid; Kodak) because of the
reluctance of senior management to embrace necessary
change (a classical yet apocalyptic example was the collapse
of the Swiss watch industry in the 1970s and early 1980s
where companies refused to accept the digital threat to their
analog dominance).
– Philip Dover, Babson College and Udo Dierk, Paderborn
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Diana Nyad
– Age 64 –Succeeds on fifth try from CUBA to Florida
• Three things:
• Never give up
• Never too old
• Never alone
– life is a team sport
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Persistence –Keep On Smiling and Moving Forward
• When I was young, I thought it was about being brilliant. Now
I know that brilliance is good, but persistence wins the day! -
Jack Wilson
• Don’t Look back, something might be gaining on you.
– Satchel Paige
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Who are you -1?
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Who are you -2?
© 2012 ff -Jack M. Wilson Distinguished Professor
Robert J. Manning School of Businesshttp://www.jackmwilson.net/SNV/
Who are you -3?
doc_881418526.pdf