What is entrepreneurship and how is it distinctive from small business education? 

An invited address at the California Indian Manpower Consortium2014 Leadership Training for Entrepreneurial/Small Business/Economic Development 

February 5‐7, 2014:Pala Casino & Spa Resort

Pala Band of Mission Indian, Pala California

Peter H. HackbertDirector, Entrepreneurship for the Public Good Program

Berea CollegeBerea, Kentucky

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 2

What we Used to Believe

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 3

Entrepreneurship can’t be taught

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 4

What We Now Know

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 5

Entrepreneurship can be taught to those that volunteer

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 6

Not Easy

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 7

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 8

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 9

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 10

2 Kinds of “E” activities

Necessity

Opportunity

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 11

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 12

'Moses' of the Choctaws Led the Indian Tribe to ProsperityWall Street Journal, Feb 6, 2010

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 13

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 14

Kauffman Index of Entrepreneurial Activity

• In 2012, every month, an average of over 3.4 out of 1,000 adults created a new business –540,000 new businesses (2002 = 623,000)

– 4.4 men        2.7 women– 5.2 Latinos– 3.2 Asian – 2.3 African Americans– 5.1 Native Americans

154/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College

Kauffman Index of Entrepreneurial Activity

Kentucky had 10th highest entrepreneurial activity rates – 3.8 per 1,000 adults

164/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College

Kauffman Index of Entrepreneurial Activity

California had 3rd highest entrepreneurial activity rates – 4.1 per 1,000 adults

174/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College

Minority‐Owned Businesses by the Numbers

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 18

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 19

What we Used to Believe

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 20

Entrepreneurship education  = years in school or tons of money

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 21

What we Used to Believe

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 22

Startups are a Smaller Version of a Large Company

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 23

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 24

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 25

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 26

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 27

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 28

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 29

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 30

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 31

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 32

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 33

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 34

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 35

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 36

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 37

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 38

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 39

What We Now Know

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 40

Startups SearchCompanies Execute

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 41

All you need is the 5‐Year Forecast

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 42

What we Used to Believe

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 43

No battle plan ever survives contact with the enemy.

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 44

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 45

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 46

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 47

More startups fail from a lack of customers than from a failure of 

product development

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 48

Planning come before the plan

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 49

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 50

We Now Know How to Make Startups Fail Less 

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 51

How?

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 52

Entrepreneurial Education begins with the Search for a Business 

Model

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 53

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 54

What’s A Company?

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 55

A business organization which sells a product or service in exchange for 

revenue and profit

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 56

What’s A Startup?

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 57

A temporary organizationdesigned to search for a repeatable 

and scalable business model 

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 58

A Startup aims to become a company

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 59

Putting Search first is a radical educational and training technology

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 60

It is not the customer’s job to know what they want.

‐ Steve Jobs

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 61

“If I had asked people what they wanted, they would have said faster horses.”

‐ Henry Ford4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 62

Maximizing learning (about the customer) per unit time

Source: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 63

Startups that succeed are those that manage to iterate enough times before running out of resources.

‐ Eric Ries, The Lean Startup

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 64

Life’s too short to build something nobody wants.

‐ Ash Maurya, Running Lean

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 65

Customers don’t care about your solution. They care about their 

problems. 

– Dave McClure, 500 Startups

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 66

Unique Value Proposition: Why you are different and worth buying 

getting attention.

Source: Al Ries and Jack Trout, Positioning: The Battle for Your Mind

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 67

Failing to build a path to customers is among the top reasons why 

startups fail

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 68

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 69

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 70

Search

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 71

Search Growth

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 72

Search Growth Obsolescence

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 73

Search Growth Obsolescence

Ambiguity and uncertaintyValues and ethical structuresRecognizing opportunityFacilitating groupsMarshaling resourcesAdvocating for change

Entrepreneurship for the Public Good 

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 74

Search Growth Obsolescence

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 75

Search

Interaction Listening Observation  Experimentation Adaptation Naivety Curiosity Creativity Critical  Thinking Communications Problem Solving Commitment Marshal 

resources

Growth Obsolescence

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 76

Search

Interaction Listening Observation  Experimentation Adaptation Naivety Curiosity Creativity Critical  Thinking Communications Problem Solving Commitment Marshal 

resources

Growth Obsolescence

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 77

Search

Interaction Listening Observation  Experimentation Adaptation Naivety Curiosity Creativity Critical  Thinking Communications Problem Solving Commitment Marshal 

resources

Replication Management Planning Processes Systems Efficiency Improvement Formulaic Policies Procedures Control Compliance Conformity

Growth Obsolescence

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 78

Search

Interaction Listening Observation  Experimentation Adaptation Naivety Curiosity Creativity Critical  Thinking Communications Problem Solving Commitment Marshal 

resources

Growth Obsolescence

Replication Management Planning Processes Systems Efficiency Improvement Formulaic Policies Procedures Control Compliance Conformity

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 79

Search

Interaction Listening Observation  Experimentation Adaptation Naivety Curiosity Creativity Critical  Thinking Communications Problem Solving Commitment Marshal 

resources

Replication Management Planning Processes Systems Efficiency Improvement Formulaic Policies Procedures Control Compliance Conformity

Growth Obsolescence

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 80

Search

Interaction Listening Observation  Experimentation Adaptation Naivety Curiosity Creativity Critical  Thinking Communications Problem Solving Commitment Marshal 

resources

Replication Management Planning Processes Systems Efficiency Improvement Formulaic Policies Procedures Control Compliance Conformity

Growth Obsolescence

Globalization New technologies Increased 

competition Shrinking relevance Commoditization Scarcity of resources Regulatory changes Entrenched systems Outdated 

assumptions Arrogance Denial

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 81

Search

Interaction Listening Observation  Experimentation Adaptation Naivety Curiosity Creativity Critical  Thinking Communications Problem Solving Commitment Marshal 

resources

Replication Management Planning Processes Systems Efficiency Improvement Formulaic Policies Procedures Control Compliance Conformity

Growth Obsolescence

Globalization New technologies Increased 

competition Shrinking relevance Commoditization Scarcity of resources Regulatory changes Entrenched systems Outdated 

assumptions Arrogance Denial

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 82

Search

Interaction Listening Observation  Experimentation Adaptation Naivety Curiosity Creativity Critical  Thinking Communications Problem Solving Commitment Marshal 

resources

Growth Obsolescence

Replication Management Planning Processes Systems Efficiency Improvement Formulaic Policies Procedures Control Compliance Conformity

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 83

Search

Interaction Listening Observation  Experimentation Adaptation Naivety Curiosity Creativity Critical  Thinking Communications Problem Solving Commitment Marshal 

resources

Replication Management Planning Processes Systems Efficiency Improvement Formulaic Policies Procedures Control Compliance Conformity

Growth Obsolescence

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 84

Search

Interaction Listening Observation  Experimentation Adaptation Naivety Curiosity Creativity Critical  Thinking Communications Problem Solving Commitment Marshal 

resources

Replication Management Planning Processes Systems Efficiency Improvement Formulaic Policies Procedures Control Compliance Conformity

Growth Obsolescence

Innovation Large scales 

initiatives Acquisitions Processes Careful planning In‐depth research & 

analysis Known brands Known customers Established channels Experienced 

managers Executive of plans Measured results

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 85

Search

Interaction Listening Observation  Experimentation Adaptation Naivety Curiosity Creativity Critical  Thinking Communications Problem Solving Commitment Marshal 

resources

Replication Management Planning Processes Systems Efficiency Improvement Formulaic Policies Procedures Control Compliance Conformity

Growth Obsolescence

Innovation Large scales 

initiatives Acquisitions Processes Careful planning In‐depth research & 

analysis Known brands Known customers Established channels Experienced 

managers Executive of plans Measured results

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 86

Search

Interaction Listening Observation  Experimentation Adaptation Naivety Curiosity Creativity Critical  Thinking Communications Problem Solving Commitment Marshal 

resources

Replication Management Planning Processes Systems Efficiency Improvement Formulaic Policies Procedures Control Compliance Conformity

Growth Obsolescence

Innovation Large scales 

initiatives Acquisitions Processes Careful planning In‐depth research & 

analysis Known brands Known customers Established channels Experienced 

managers Executive of plans Measured results

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 87

Search

Interaction Listening Observation  Experimentation Adaptation Naivety Curiosity Creativity Critical  Thinking Communications Problem Solving Commitment Marshal 

resources

Replication Management Planning Processes Systems Efficiency Improvement Formulaic Policies Procedures Control Compliance Conformity

Growth Obsolescence

Innovation Large scales 

initiatives Acquisitions Processes Careful planning In‐depth research & 

analysis Known brands Known customers Established channels Experienced 

managers Executive of plans Measured results

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 88

Search Growth Obsolescence

One Page Business Plan

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 89

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 90

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 91

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 92

4/7/2014 CIMC Entrepreneurship Training,             Peter H Hackbert, EPG, Berea College 93