Global EntrepreneurshipDeveloping Global Mindset for Entrepreneurs

Brian David Butler

Teaching

Brian Butler is currently a professor with Forum-Nexus which is co-sponsored by the IQS Business School of the Ramon Llull University in Barcelona and the Catholic University of Milan He teaches classes on International Finance and Global Entrepreneurship in Europe every July and January

In Miami Brian has taught Finance Economics and Global Trade at Thunderbirdrsquos Global MBA program in Miami

He previously worked as a research analyst at the Columbia University Business School in New York City

brianbutlerforum-nexuscombriandbutlergmailcomLinkedInbriandbutlerSkype briandbutler

Brian David Butler

Teaching

Brian Butler is currently a professor with Forum-Nexus which is co-sponsored by the IQS Business School of the Ramon Llull University in Barcelona and the Catholic University of Milan He teaches classes on International Finance and Global Entrepreneurship in Europe every July and January

In Miami Brian has taught Finance Economics and Global Trade at Thunderbirdrsquos Global MBA program in Miami

He previously worked as a research analyst at the Columbia University Business School in New York City

brianbutlerforum-nexuscombriandbutlergmailcomLinkedInbriandbutlerSkype briandbutler

Brian David Butler

International

A global citizen Brian was born in Canada raised in Switzerland (where he attended international British school) educated through university in the US started his career with a Japanese company moved to New York to work as an analyst married a Brazilian and has traveled extensively in Latin America Asia Europe and North America

Brian currently lives in Recife Brazil where he is teaching classes on ―Global Entrepreneurship at the university ―Faculdade Boa Viagem

brianbutlerforum-nexuscombriandbutlergmailcomLinkedInbriandbutlerSkype briandbutler

KookyPlan ndash wiki for Entrepreneurs

Global Entrepreneurship

developing the global mindset for

entrepreneurs

Class 2

Saturday March 13th 2010

Resources wwwkookyplancom

Global Entrepreneurship

developing the global mindset for

entrepreneurs

Class 2

Saturday March 13th 2010

Resources wwwkookyplancom

Resources wwwkookyplancom

notes

bull Everyone should have received my email with the updated course syllabus

bull Exam ndash will come mostly from my lecturesbull My presentations will all be placed online I will

email you the link wwwslidesharenetbull Discuss next two weekendsbull Make-up schedule during weeksbull Group projects ndash

Students should make teams Change allow one country to be Brazil (new)

1 Introduction definitions

Review from last classhellip

Facebook vs MySpace case study

Who can summarize

―what was the importance of international strategy for Facebook when competing with MySpace for market dominance in the US

Who can explain what we meant by ―network effects

International strategy = key

―Most of Facebooklsquos growth is international where theylsquove executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace by contrast expands via a command-and-control infrastructure that puts people on the ground in each new international market)

Facebook vs MySpace case study

Who can summarize

―what was the importance of international strategy for Facebook when competing with MySpace for market dominance in the US

Who can explain what we meant by ―network effects

International strategy = key

―Most of Facebooklsquos growth is international where theylsquove executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace by contrast expands via a command-and-control infrastructure that puts people on the ground in each new international market)

International strategy = key

―Most of Facebooklsquos growth is international where theylsquove executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace by contrast expands via a command-and-control infrastructure that puts people on the ground in each new international market)

Facebook growth international

bull International Growth

bull More than 70 translations available on the site

bull About 70 of Facebook users are outside the United States

bull Over 300000 users helped translate the site through the translations application

httpwwwfacebookcompressinfophpstatistics

Facebook growth international

bull International growh = key to winning vscompetition

bull Massive growth in users

bull Network effect = value of companyhellip leads to more investmenthellipleads to better user experiencehellipleads to more users

Network effect

bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it

bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case

bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join

Network effect

bull In economics and business a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people When network effect is present the value of a product or service increases as more people use it

bull The classic example is the telephone The more people who own telephones the more valuable the telephone is to each owner This creates a positive externality because a user may purchase their phone without intending to create value for other users but does so in any case

bull Online social networkswork in the same way with sites like MySpace and Facebook being more useful the more users that join

Global strategies vs

Localization

What are ―global industries

Globalization

bull ―international borders and trade barriers came down

bull Communism fell bull Protectionist walls in Latin America and elsewhere

were dismantled bull Governments took a back seat to broader market

forcesbull Thomas Friedman declared that the Internet and

other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat

Globalization

Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally

Such industries as computer manufacture where the products are standardized are prime candidates for global competition

Globalization

bull ―international borders and trade barriers came down

bull Communism fell bull Protectionist walls in Latin America and elsewhere

were dismantled bull Governments took a back seat to broader market

forcesbull Thomas Friedman declared that the Internet and

other planet-spanning technologies were erasing national boundaries The world he said in a 2005 best seller was flat

Globalization

Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally

Such industries as computer manufacture where the products are standardized are prime candidates for global competition

Globalization

Whysome industries are much more globally competitive and need to be due to massive economies of scale advantage that can be obtained from Marketing products globally

Such industries as computer manufacture where the products are standardized are prime candidates for global competition

Globalization

bull Types of ldquoglobalrdquo industries

bull Luxury consumer goodsbull Pharmaceuticalbull Technology

Other potentially global(ish) industriesbull Banking (but for local regulations)bull Internet (local regulations language)bull Media (film) ndash local languagebull Music (some)bull Others

Globalization

bull Not Americanization

bull Note that globalization does not equal americanization

proof is that there are just as many sushi restaurants as Mc Donalds

and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement

Globalization -- why

bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated

bull As a result we see new opportunities for even small companies to compete

globally

But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)

Globalization

bull Not Americanization

bull Note that globalization does not equal americanization

proof is that there are just as many sushi restaurants as Mc Donalds

and Jackie Chan kung fu movies from Hong Kong might have as much global recognition as any American movement

Globalization -- why

bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated

bull As a result we see new opportunities for even small companies to compete

globally

But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)

Globalization -- why

bull As travel costs have fallen bull communication costs have fallen bull and the world has become more technologically integrated

bull As a result we see new opportunities for even small companies to compete

globally

But on the other hand we also see company after company failing in global competition because they still think too US or European-centric and thus give up global market share to the clones or copy cat business models that pop up around the globe See our discussion about troubles going global (business)

Localization

Sometimes a company can make much more money by ―localizing their productshellip but at what cost

bull Note it costs $$ to localize (translate) and you might loose economies of scale

Localization

bull Examples

Consumer goods

Food

Perfumes

Local tastes preferences languageshellip

Localization

bull counter trend in retailing

consumers are resisting globalization

going to the other extreme localization in which products are just sourced locally grown locally produced locally

consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)

Localization v Globalization ndash how

much to localize

bull How much localization of your product should you make If you are marketing a truely global brand then maybe you

dont want to change very much

But maybe local requirements mean that you could sell more if you would modify your product

Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets

How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing

bull Localization leads to more sales but globalization leads to more efficiency

bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the

product the same to every customerbull The more you adapt the product marketing mix the higher

your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes

bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make

Localization v Globalization ndash how

much to localize

Localization

bull Example

bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer

Localization

bull Examples

Consumer goods

Food

Perfumes

Local tastes preferences languageshellip

Localization

bull counter trend in retailing

consumers are resisting globalization

going to the other extreme localization in which products are just sourced locally grown locally produced locally

consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)

Localization v Globalization ndash how

much to localize

bull How much localization of your product should you make If you are marketing a truely global brand then maybe you

dont want to change very much

But maybe local requirements mean that you could sell more if you would modify your product

Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets

How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing

bull Localization leads to more sales but globalization leads to more efficiency

bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the

product the same to every customerbull The more you adapt the product marketing mix the higher

your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes

bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make

Localization v Globalization ndash how

much to localize

Localization

bull Example

bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer

Localization

bull counter trend in retailing

consumers are resisting globalization

going to the other extreme localization in which products are just sourced locally grown locally produced locally

consumers are drawn to the appeal of local industry (and are willing to pay more and have slightly less choice for the privilege of supporting home-grown artists farmers and producers)

Localization v Globalization ndash how

much to localize

bull How much localization of your product should you make If you are marketing a truely global brand then maybe you

dont want to change very much

But maybe local requirements mean that you could sell more if you would modify your product

Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets

How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing

bull Localization leads to more sales but globalization leads to more efficiency

bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the

product the same to every customerbull The more you adapt the product marketing mix the higher

your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes

bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make

Localization v Globalization ndash how

much to localize

Localization

bull Example

bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer

Localization v Globalization ndash how

much to localize

bull How much localization of your product should you make If you are marketing a truely global brand then maybe you

dont want to change very much

But maybe local requirements mean that you could sell more if you would modify your product

Each time you make modifications you loose efficiency (which raises costs) but you might gain a local feel and become more attractive to different markets

How much tradeoff should you make in efficiency loss for market share gain This is the real trick of international marketing

bull Localization leads to more sales but globalization leads to more efficiency

bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the

product the same to every customerbull The more you adapt the product marketing mix the higher

your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes

bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make

Localization v Globalization ndash how

much to localize

Localization

bull Example

bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer

bull Localization leads to more sales but globalization leads to more efficiency

bull Will you need to adapt to the local needsbull Or can you go with a more global-strategy and market the

product the same to every customerbull The more you adapt the product marketing mix the higher

your costs will be (and so the profits will be less) but you might find that you need to localize in order to boost sales volumes

bull Its a trade off and one that needs careful consideration The product adaptation issue is one of the most important decisions that an international marketer must make

Localization v Globalization ndash how

much to localize

Localization

bull Example

bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer

Localization

bull Example

bull A Brazilian cachaca producer that considers selling in Spain might ask themselves How are we going to (and how much are we going to) localise the marketing of the brand in Spain Rather than marketing the liquor the same to Spanish customers we need to find out a way to make the branding appealing to the Spanishhow much customization will we offer

Localization

bull How much localization is necessary

bull Luxury goods are one of the few truly global brands that are able to gain from global efficiency in marketing and producing the product exactly the same in any market that they enter Without needing to tailorize (Localization) the products to meet local tastes the companies are able to significantly save money on local costs But very few products are truly able to do so Think Rolex

bull note that even Mercedez Benz is forced to localize

2 The ldquoentrepreneur mindsetrdquo

Critical thinking patterns of entrepreneurshellip

The ldquoentrepreneur mindsetrdquo

bull Importance of

critical thinking

idealism

trend awareness

problem solving

bull The importance of Critical Thinking for innovation

bull ―Fail fast and ―global learning

bull Brainstorming

Critical thinking

bull Habit to ask ―what is wrong

bull Look for problems

bull Try to ―poke holes in story

bull What are the ―assumptions Are they realistic

bull What could be done better next time

Idealism

bull How ―should the world be

bull Donlsquot just look at the way thing arehellip

bull Dream how they ―should be

bull Is there a gap

bull If so what can should be done to fix

trend awareness

bull What is changing

bull Are you aware of the changes

bull Are you ready for the challenges

bull Will it be you who takes advantage of the opportunities

Problem solving

bull Great entrepreneurs are ones that solve problems

bull Best ideas come from personal problems

Why solve problems

bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified

Y Combinator httppaulgrahamcomstartupmistakeshtml

Why solve problems

bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work

So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was

Y Combinator httppaulgrahamcomstartupmistakeshtml

The ldquoentrepreneur mindsetrdquo

bull Importance of

critical thinking

idealism

trend awareness

problem solving

bull The importance of Critical Thinking for innovation

bull ―Fail fast and ―global learning

bull Brainstorming

Critical thinking

bull Habit to ask ―what is wrong

bull Look for problems

bull Try to ―poke holes in story

bull What are the ―assumptions Are they realistic

bull What could be done better next time

Idealism

bull How ―should the world be

bull Donlsquot just look at the way thing arehellip

bull Dream how they ―should be

bull Is there a gap

bull If so what can should be done to fix

trend awareness

bull What is changing

bull Are you aware of the changes

bull Are you ready for the challenges

bull Will it be you who takes advantage of the opportunities

Problem solving

bull Great entrepreneurs are ones that solve problems

bull Best ideas come from personal problems

Why solve problems

bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified

Y Combinator httppaulgrahamcomstartupmistakeshtml

Why solve problems

bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work

So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was

Y Combinator httppaulgrahamcomstartupmistakeshtml

Critical thinking

bull Habit to ask ―what is wrong

bull Look for problems

bull Try to ―poke holes in story

bull What are the ―assumptions Are they realistic

bull What could be done better next time

Idealism

bull How ―should the world be

bull Donlsquot just look at the way thing arehellip

bull Dream how they ―should be

bull Is there a gap

bull If so what can should be done to fix

trend awareness

bull What is changing

bull Are you aware of the changes

bull Are you ready for the challenges

bull Will it be you who takes advantage of the opportunities

Problem solving

bull Great entrepreneurs are ones that solve problems

bull Best ideas come from personal problems

Why solve problems

bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified

Y Combinator httppaulgrahamcomstartupmistakeshtml

Why solve problems

bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work

So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was

Y Combinator httppaulgrahamcomstartupmistakeshtml

Idealism

bull How ―should the world be

bull Donlsquot just look at the way thing arehellip

bull Dream how they ―should be

bull Is there a gap

bull If so what can should be done to fix

trend awareness

bull What is changing

bull Are you aware of the changes

bull Are you ready for the challenges

bull Will it be you who takes advantage of the opportunities

Problem solving

bull Great entrepreneurs are ones that solve problems

bull Best ideas come from personal problems

Why solve problems

bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified

Y Combinator httppaulgrahamcomstartupmistakeshtml

Why solve problems

bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work

So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was

Y Combinator httppaulgrahamcomstartupmistakeshtml

trend awareness

bull What is changing

bull Are you aware of the changes

bull Are you ready for the challenges

bull Will it be you who takes advantage of the opportunities

Problem solving

bull Great entrepreneurs are ones that solve problems

bull Best ideas come from personal problems

Why solve problems

bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified

Y Combinator httppaulgrahamcomstartupmistakeshtml

Why solve problems

bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work

So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was

Y Combinator httppaulgrahamcomstartupmistakeshtml

Problem solving

bull Great entrepreneurs are ones that solve problems

bull Best ideas come from personal problems

Why solve problems

bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified

Y Combinator httppaulgrahamcomstartupmistakeshtml

Why solve problems

bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work

So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was

Y Combinator httppaulgrahamcomstartupmistakeshtml

Why solve problems

bull ―Many of the applications we get are imitations of some existing company Thats one source of ideas but not the best If you look at the origins of successful startups few were started in imitation of some other startup Where did they get their ideas Usually from some specific unsolved problem the founders identified

Y Combinator httppaulgrahamcomstartupmistakeshtml

Why solve problems

bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work

So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was

Y Combinator httppaulgrahamcomstartupmistakeshtml

Why solve problems

bull It seems like the best problems to solve are ones that affect you personally Apple happened because Steve Wozniak wanted a computer Google because Larry and Sergey couldnt find stuff online Hotmail because SabeerBhatia and Jack Smith couldnt exchange email at work

So instead of copying the Facebook with some variation that the Facebook rightly ignored look for ideas from the other direction Instead of starting from companies and working back to the problems they solved look for problems and imagine the company that might solve them [2] What do people complain about What do you wish there was

Y Combinator httppaulgrahamcomstartupmistakeshtml

ldquofast failingrdquo

bull ―The development of a successful new product service or business is often the result of lots of learning from lots of failures The key is to fail fast and fail cheap ―

bull The idea Dont be afraid to try new business but if its going to fail donlsquot be

afraid to fail fastlsquo and move on Donlsquot stretch failure over 3-5 painful years

The trick is to distinguish between a business that is doomed to fail from the one that would succeed if only you tried a bit harder (not that many entrepreneurs fail from lack of full effort and fighting through tough times)

The challenge is to correctly use the 3-questions framework to make sure your new business is (a) solving a problem (b) ahead of a trend or (c ) localized properly

If its nothellip and if the startup is doomed to failhellip then fail fast ―Fast fail is a startup mentality for quickly starting up new

businesses popular within the startup community of Silicon Valley USA

fast failing

bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself

bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails

fast failing

bull Numbers

bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost

Brain-storming

bull process of generating LOTS of ideas quickly

bull Think outside of the box

bull Original thinking

bull Key ndash donlsquot be afraid of uncommon thoughts

Brainstorming

bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem

fast failing

bull The classic mindset is to try to get a business plan or product 95 right before taking action This is great in theory but it rarely works Why Because as soon as you ship the product you immediately recognize its fatal flaws By then its often too late to change the packaging the marketing or the product itself

bull The alternative is to get your idea about 50 right then let customers tell you what your mistakes are Listen learn get it 50 right and put your idea through the process again Keep at it until your customers say Wow Instead of debating options internally youll be making your idea real taking it to customers and learning as it fails

fast failing

bull Numbers

bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost

Brain-storming

bull process of generating LOTS of ideas quickly

bull Think outside of the box

bull Original thinking

bull Key ndash donlsquot be afraid of uncommon thoughts

Brainstorming

bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem

fast failing

bull Numbers

bull The math of fail fast and fail cheap is simple If it takes six months and $100000 to take a product from idea to customer reaction then at best youll get two cycles in a year However if you can do a complete cycle of learning in a week for $1000 you can get 52 cycles in a year at about half the cost

Brain-storming

bull process of generating LOTS of ideas quickly

bull Think outside of the box

bull Original thinking

bull Key ndash donlsquot be afraid of uncommon thoughts

Brainstorming

bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem

Brain-storming

bull process of generating LOTS of ideas quickly

bull Think outside of the box

bull Original thinking

bull Key ndash donlsquot be afraid of uncommon thoughts

Brainstorming

bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem

Brainstorming

bull ―a group creativity technique designed to generate a large number of ideas for the solution to a problem

Keys to successful (focused)

brainstorming

1 no judging dont interrupt ideas2 build on the ideas of others rather than just adding your own new

ideas3 stay focused and dont go off on tangents4 get everyones involvement by allowing just one person to speak at a

time And make sure to also involve the shy ones5 quantity quantity quantity try to get as many ideas as possible

in as little time as possible go go go a good idea will pop out as you break down the barriers of fear and judgement and get caught up in the momentum

6 think out of the box out of the roomout of this worldencourage wild ideas

7 be graphic visualsketch out the concept8 make a prototype but be FAST (a rough approximation right now

is better than a perfect prototype a month from now)

bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce

the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group

bullbull Focus on quantity This rule is a means of enhancing divergent

production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution

bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas

bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions

bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association

bull Approachbull There are four basic rules in brainstorming[5] These are intended to reduce

the social inhibitions that occur in groups and therefore stimulate the generation of new ideas The expected result is a dynamic synergy that will dramatically increase the creativity of the group

bullbull Focus on quantity This rule is a means of enhancing divergent

production aiming to facilitate problem solving through the maxim quantity breeds quality The assumption is that the greater the number of ideas generated the greater the chance of producing a radical and effective solution

bull No criticism It is often emphasized that in group brainstorming criticism should be put on hold Instead of immediately stating what might be wrong with an idea the participants focus on extending or adding to it reserving criticism for a later critical stage of the process By suspending judgment one creates a supportive atmosphere where participants feel free to generate unusual ideas

bull Unusual ideas are welcome To get a good and long list of ideas unusual ideas are welcomed They may open new ways of thinking and provide better solutions than regular ideas They can be generated by looking from another perspective or setting aside assumptions

bull Combine and improve ideas Good ideas can be combined to form a single very good idea as suggested by the slogan 1+1=3 This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone It is believed to stimulate the building of ideas by a process of association

2 why be an entrepreneur

Class participationhellip

Review last week

bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global

bull Class discusshellip

ldquoThinking global for entrepreneursrdquo

bull Example furniture company should look for global efficiencies and world wide centers of excellence

bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure

and close proximity to global trends would keep us ahead of changing consumer demands

manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources

use flexibility to service customers before and after the sale allowing them to customize their products

ldquoThinking global for entrepreneursrdquo

bull Example furniture company should look for global efficiencies and world wide centers of excellence

bull ideal structure For my management structure I would need to be flexible

enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences

I would try to develop my worldwide learning and realize that design innovations could come from everywhere

I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)

But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer

Why become an entrepreneur

bull Class discussion ndash summarize here

1

2

3

4

5

What are Entrepreneurs ldquolikerdquo

(personal characteristics attributes)

bull Class discussion ndash summarize here

1

2

3

4

5

What it means to be an

entrepreneur

bull An Entrepreneur

is someone with big ideas and a strong belief that they can make it happen

An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns

httpkookyplanpbworkscom

Review last week

bull What are the benefits of global entrepreneurship What are the challenges Can small enterprises really go global

bull Class discusshellip

ldquoThinking global for entrepreneursrdquo

bull Example furniture company should look for global efficiencies and world wide centers of excellence

bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure

and close proximity to global trends would keep us ahead of changing consumer demands

manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources

use flexibility to service customers before and after the sale allowing them to customize their products

ldquoThinking global for entrepreneursrdquo

bull Example furniture company should look for global efficiencies and world wide centers of excellence

bull ideal structure For my management structure I would need to be flexible

enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences

I would try to develop my worldwide learning and realize that design innovations could come from everywhere

I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)

But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer

Why become an entrepreneur

bull Class discussion ndash summarize here

1

2

3

4

5

What are Entrepreneurs ldquolikerdquo

(personal characteristics attributes)

bull Class discussion ndash summarize here

1

2

3

4

5

What it means to be an

entrepreneur

bull An Entrepreneur

is someone with big ideas and a strong belief that they can make it happen

An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns

httpkookyplanpbworkscom

ldquoThinking global for entrepreneursrdquo

bull Example furniture company should look for global efficiencies and world wide centers of excellence

bull ideal structure design my products in cheapest best place in world manufacture in cheapest best place in world market with service and with warranty Offer a customized product (tailorization) keep on innovating (sustainable) locate my design center in New York City where competitive pressure

and close proximity to global trends would keep us ahead of changing consumer demands

manufacture my furniture in the cheapest place possible for my desired level of quality perhaps looking at China India or Vietnam as potential sources

use flexibility to service customers before and after the sale allowing them to customize their products

ldquoThinking global for entrepreneursrdquo

bull Example furniture company should look for global efficiencies and world wide centers of excellence

bull ideal structure For my management structure I would need to be flexible

enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences

I would try to develop my worldwide learning and realize that design innovations could come from everywhere

I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)

But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer

Why become an entrepreneur

bull Class discussion ndash summarize here

1

2

3

4

5

What are Entrepreneurs ldquolikerdquo

(personal characteristics attributes)

bull Class discussion ndash summarize here

1

2

3

4

5

What it means to be an

entrepreneur

bull An Entrepreneur

is someone with big ideas and a strong belief that they can make it happen

An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns

httpkookyplanpbworkscom

ldquoThinking global for entrepreneursrdquo

bull Example furniture company should look for global efficiencies and world wide centers of excellence

bull ideal structure For my management structure I would need to be flexible

enough to allow for exchange rate changes meaning that I might need to shift my production from one country to another if FX rates changed and I would need to be flexible enough to shift with style changes and changes in consumer preferences

I would try to develop my worldwide learning and realize that design innovations could come from everywhere

I would attempt to gather design trends and new ideas from all places (Maybe using internet wiki technology)

But more importantly than anything if I were to really think like a transnational manager I would have to shift my way of thinking away from a Brazilian furniture exporter and to a ―global brand developer

Why become an entrepreneur

bull Class discussion ndash summarize here

1

2

3

4

5

What are Entrepreneurs ldquolikerdquo

(personal characteristics attributes)

bull Class discussion ndash summarize here

1

2

3

4

5

What it means to be an

entrepreneur

bull An Entrepreneur

is someone with big ideas and a strong belief that they can make it happen

An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns

httpkookyplanpbworkscom

Why become an entrepreneur

bull Class discussion ndash summarize here

1

2

3

4

5

What are Entrepreneurs ldquolikerdquo

(personal characteristics attributes)

bull Class discussion ndash summarize here

1

2

3

4

5

What it means to be an

entrepreneur

bull An Entrepreneur

is someone with big ideas and a strong belief that they can make it happen

An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns

httpkookyplanpbworkscom

What are Entrepreneurs ldquolikerdquo

(personal characteristics attributes)

bull Class discussion ndash summarize here

1

2

3

4

5

What it means to be an

entrepreneur

bull An Entrepreneur

is someone with big ideas and a strong belief that they can make it happen

An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns

httpkookyplanpbworkscom

What it means to be an

entrepreneur

bull An Entrepreneur

is someone with big ideas and a strong belief that they can make it happen

An entrepreneur is a risk taker someone that is willing to lay it all on the line for the opportunity of big returns

httpkookyplanpbworkscom

Risk

bull Entrepreneurship is about taking risk

bull The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea spending much time as well as capital on an uncertain venture

httpkookyplanpbworkscom

Types of entrepreneurs1 Lifestyle Entrepreneurs

Those that start up a business in a niche making a living on their own and satisfying the needs of a small group of clients that a bigger chain can not or does not want to (yet) These entrepreneurs accept the rules of the game the way they are and seek to exploit opportunities as the see them This group of entrepreneurs should NOT seek Venture capital funding and instead should look to self-fund or look for a rich uncle (or a bank loan)

2 Dreaming Big Entrepreneurs Those that launch a business with grand aspirations that seek

to go national or go global These entrepreneurs will find stiff competition from existing

firms and will succeed only if they find a way to change the rules of the game

They seek to create their own opportunities and to disrupt others business plans

These are the ones that often get venture capital fundinghttpkookyplanpbworkscom

bull Characteristics of typical Entrepreneurs

bull John G Burch (Business Horizons September 1986) lists traits typical of entrepreneurs

bull A desire to achieve The push to conquer problems and give birth to a successful venture

bull Hard work It is often suggested that many entrepreneurs are workaholics

bull Desire to work for themselves Entrepreneurs like to work for themselves rather than working for an

organization or any other individual They may work for someone to gain the knowledge of the product or service that they may want to produce

bull Nurturing quality Willing to take charge of and watch over a venture until it can stand

alonebull Acceptance of responsibility

Are morally legally and mentally accountable for their ventures Some entrepreneurs may be driven more by altruism than by self-interest

bull Characteristics of typical Entrepreneurs

bull Reward orientation Desire to achieve work hard and take responsibility but also with a

commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect

bull Optimism Live by the philosophy that this is the best of times and that anything is

possiblebull Orientation to excellence

Often desire to achieve something outstanding that they can be proud ofbull Organization

Are good at bringing together the components (including people) of a venture

bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge

their success and achievement

httpkookyplanpbworkscom

bull Characteristics of typical Entrepreneurs

bull Reward orientation Desire to achieve work hard and take responsibility but also with a

commensurate desire to be rewarded handsomely for their efforts rewards can be in forms other than money such as recognition and respect

bull Optimism Live by the philosophy that this is the best of times and that anything is

possiblebull Orientation to excellence

Often desire to achieve something outstanding that they can be proud ofbull Organization

Are good at bringing together the components (including people) of a venture

bull Profit orientation Want to make a profit but the profit serves primarily as a meter to gauge

their success and achievement

httpkookyplanpbworkscom

Great for a resume (CV)

bull Note if you do launch your business idea and then later return to the market to try and find a jobhellip all of these attributes are high demand

bull 1 Vision

bull 2 Passion

bull 3 Purpose

bull 4 Adaptability

bull 5 Leadership Skills

bull 6 Networking Savvy

bull 7 Determination

bull 8 Positive attitude

httpkookyplanpbworkscom

bull 1 Vision

bull 2 Passion

bull 3 Purpose

bull 4 Adaptability

bull 5 Leadership Skills

bull 6 Networking Savvy

bull 7 Determination

bull 8 Positive attitude

httpkookyplanpbworkscom

What is an ldquoentrepreneurrdquo

bull Entrepreneurship merges the visionary and the pragmatic

bull It requires knowledge imagination perception practicality persistence and attention to others

httpkookyplanpbworkscom

What is an ldquoentrepreneurrdquo

bull hellipoften is mistaken formdashinvention creativity management starting a small business or becoming self-employed it is neither identical with nor reducible to any of them

bull The defining trait of entrepreneurship is the creation of a novel enterprise that the market is willing to adopt

httpkookyplanpbworkscom

What is an ldquoentrepreneurrdquo

bull Hence entrepreneurship entails the commercialization (or its functional equivalent) of an innovation

httpkookyplanpbworkscom

What is an ldquoentrepreneurrdquo

bull The market judges utility and need along with excellence It does not valuemdashand does not need to valuemdashevery good idea

bull The entrepreneurlsquos risk therefore is not a gamble but an informed calculation about the viability of the new enterprise in the market about its capacity to meet a demand or need of others

httpkookyplanpbworkscom

Can you teach

ldquoentrepreneurshiprdquo

Study from Kauffman Foundation

bull Entrepreneurs are among the most celebrated people in our culture

bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications

bull These company founders and innovators fuel economic growth and give the nation its competitive edge

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

In high esteem

bull Entrepreneurs are among the most celebrated people in our culture

bull Celebrity entrepreneurs such as Steve Jobs (Apple) Bill Gates (Microsoft) Sergei Brin and Larry Page (Google) often grace the covers of prominent publications

bull These company founders and innovators fuel economic growth and give the nation its competitive edge

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

In high esteem

But Can Entrepreneurs Be Made

Can you teach someone to be an entrepreneur

The pessismists Say ―NO ―Silicon Valley investors often have a picture in their heads of the type of person who is worthy of funding young brash stubborn and arrogant They believe that successful entrepreneurs come from entrepreneurial families and that they start their entrepreneurial journey by selling lemonade while in grade school

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

Saying NO

―Angel investor and entrepreneur Jason Calacanissaid as much in his recent talk to Penn State students

And after meeting Wharton students VC Fred Wilson expressed shock when a professor told him that you could teach people to be entrepreneurs

Wilson wrote ―Ilsquove been working with entrepreneurs for almost 25 years now and it is ingrained in my mind that someone is either born an entrepreneur or is not

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

Most successful entrepreneurs do NOT come from entrepreneurial families and do NOT have entrepreneurial ―genes

bull 52 of the successful entrepreneurs were the first in their immediate families to start a business mdash just like Bill Gates Jeff Bezos Larry Page Sergei Brin and Russell Simmons (Def Jam founder)

bull Their parents were academics lawyers factory workers priests bureaucrats etc

bull About 39 had an entrepreneurial father and 7 had an entrepreneurial mother (Some had both)

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

On the other handhellip

The education and training of entrepreneurs is something that the Kauffman Foundation has been researching extensively

Over the last six years it has invested around $50 million on academic research to understand what makes entrepreneurs tick and what policies are most conducive to entrepreneurship and to construct data bases to permit analyses of these subjects (Kauffman has also funded some of my research at Duke UC-Berkeley and Harvard)

bull Its VP of Research Bob Litan says ―Kauffman has learnt conclusively that

entrepreneurship can be taughtrdquo

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

Saying ldquoYESrdquo

Creating the ldquoclusterrdquo

bull That is why Kauffman (which has a $2 billion endowment) is investing heavily in an ambitious new program called Kauffman Labs

bull This aims to dramatically increase the ability of small businesses to become big businesses

bull The Labs program is built around a novel idea that highly motivated individuals with ―scalable ideas can be recruited to be entrepreneur sand to be made successful by surrounding them with a network of other experienced entrepreneurs sources of money and mentors

bull The goal is to educate entrepreneurs and surround them with a powerful network

bull This is like a Y Combinator on steroids

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

Family + genes ndash important

bull More important are you social and professional networks

―I doubt that all of these Google employees who are starting successful businesses were born with entrepreneurial genes ―

VC and former entrepreneur Brad Feldalso blogged about how many of his frat buddies at MIT had become successful entrepreneurs

bull Were all of these people born to be entrepreneurs as well I donlsquot think so

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

What mattershellip

bulleducation

bullexposure to entrepreneurship

bullnetworks

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

bull NO

bull Only a quarter caught the entrepreneurial bug when in college Half didnlsquot even think about entrepreneurship and they had little interest in it when in school

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

Do you need to start early

NO

bull Level of Education does matter mdash but not the college they graduate from

bull Significant difference between companies started by founders with just high-school diplomas and the rest

bull Education provided a huge advantage But there wasnrsquot a big difference between firms founded by Ivy-league graduates and the graduates of other universities

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

Do you need a Harvard Education

Profile of successful (high-growth)

entrepreneurs

bull Company founders tend to be middle-aged and well-educated and did better in high school than in college

bull These entrepreneurs tend to come from middle-class or upper-lower-class backgrounds and were better educated and more entrepreneurial than their parents

bull Most entrepreneurs are married and have children

bull Early interest and propensity to start companies

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

Profile of successful (high-growth)

entrepreneurs

bull Top 4 Motivations for becoming entrepreneurs

1 building wealth

2 owning a company

3 startup culture and c

4 capitalizing on a business idea

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

Profile of successful (high-growth)

entrepreneurs

bull Not important or less-important factors

1 inability to obtain employment

2 encouragement from others

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

Profile of successful (high-growth)

entrepreneurs

bull One common factor

1 Most had significant industry experience when starting their companies

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

Industry experience

bull suggestion

1 Go get a job any job for 6 months ndash 1 year in the industry before launching your own venture (officially)

Personal experience furniture example wasted 3 years learning what I should have already known and would have been taught had I taken a sales job at a competitor

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

Profiles of Entrepreneurs

bull One note the profile of entrepreneurs outline above is slightly different for one grouphellip

Profile of successful (high-growth)

entrepreneurs

bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different

Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)

Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)

Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

Profile of successful (high-growth)

entrepreneurs

bull Buthellip the profile of ldquoEarly entrepreneursrdquo (young) and those with an early interest in entrepreneurship are different

Entrepreneurs who started their companies soon after graduating (with zero to five years of work experience) and those who had an extremely strong interest in entrepreneurship in college were far less likely to be married (366 percent vs the total sample average of 699 percent) or to have kids when they launched their first businesses (269 percent vs the total sample average of 596 percent)

Those who were ―extremely interested in starting a company while in college were far more likely to be early entrepreneurs Of these entrepreneurs 69 percent started their companies within ten years of working for someone else (as compared to 468 percent from the rest of the population)

Level of interest in entrepreneurship during college was correlated to the number of years worked before starting a businessmdashonly 18 percent from the ―extremely interested group worked for at least fifteen years before starting their own businesses as compared to 464 percent from the ―not very interested group

Techcrunchcom by Vivek Wadhwa on Feb 27 2010

Homework from last class

Student presentations (each student to present)

Homework review

3-questions exercise

bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in

bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide

bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom

Homework review

3-questions exercise

bull Identify at least (1) major problem (1) major trend and (1) transferrable idea in

bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or worldwide

bull Due next week ndash Maximum 1 page ndash word document ndashsubmit by email to briandbutlergmailcom

3-questions exercise ndash AGAIN ndash try to

improve 2nd time

Class Schedule Topics to cover

The ldquoThree Questionsrdquo framework

bull The ―three questions framework

1 ―what is the problem and what are you going to do about it

2 ―What is the trend and how are you going to get in front of it

3 ―what is great here somewhere else and where else could it work how are you going to

localize it Where else could you bring this idea and find success

Problem solving

Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems

Trends

Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models

global changes technology communications capital markets

regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs

WIWH ndash localizing business models

bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models

Homework Review ndash class participation

bull Each student to present Front of class Top 2 ideas

bull Students watching should Think critically Ask questions Challenge assumptions

bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)

Homework review ndash my observations

Most did well locally

Struggled globally

Most did well looking at (a) problems and (c) ideas to transfer

But struggled with ―trends

Where to look for more trends and

inspiration hellip

bull Some of my favorite siteshellip

Inspiration Mundo SA (globo)

httpglobonewsglobocomJornalismoGN0JOR315-1766500html

Class Schedule Topics to cover

The ldquoThree Questionsrdquo framework

bull The ―three questions framework

1 ―what is the problem and what are you going to do about it

2 ―What is the trend and how are you going to get in front of it

3 ―what is great here somewhere else and where else could it work how are you going to

localize it Where else could you bring this idea and find success

Problem solving

Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems

Trends

Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models

global changes technology communications capital markets

regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs

WIWH ndash localizing business models

bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models

Homework Review ndash class participation

bull Each student to present Front of class Top 2 ideas

bull Students watching should Think critically Ask questions Challenge assumptions

bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)

Homework review ndash my observations

Most did well locally

Struggled globally

Most did well looking at (a) problems and (c) ideas to transfer

But struggled with ―trends

Where to look for more trends and

inspiration hellip

bull Some of my favorite siteshellip

Inspiration Mundo SA (globo)

httpglobonewsglobocomJornalismoGN0JOR315-1766500html

Problem solving

Problem solving ―what is the problem and what are you going to do about it Seeking Opportunities by solving problems

Trends

Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models

global changes technology communications capital markets

regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs

WIWH ndash localizing business models

bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models

Homework Review ndash class participation

bull Each student to present Front of class Top 2 ideas

bull Students watching should Think critically Ask questions Challenge assumptions

bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)

Homework review ndash my observations

Most did well locally

Struggled globally

Most did well looking at (a) problems and (c) ideas to transfer

But struggled with ―trends

Where to look for more trends and

inspiration hellip

bull Some of my favorite siteshellip

Inspiration Mundo SA (globo)

httpglobonewsglobocomJornalismoGN0JOR315-1766500html

Trends

Trend awareness ―What is the trend and how are you going to get in front of it Analyzing trends to find opportunities Increase studentlsquos awareness of global trends and global business models

global changes technology communications capital markets

regulations consumer tastes credit availability technology and more and how they create opportunities for entrepreneurs

WIWH ndash localizing business models

bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models

Homework Review ndash class participation

bull Each student to present Front of class Top 2 ideas

bull Students watching should Think critically Ask questions Challenge assumptions

bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)

Homework review ndash my observations

Most did well locally

Struggled globally

Most did well looking at (a) problems and (c) ideas to transfer

But struggled with ―trends

Where to look for more trends and

inspiration hellip

bull Some of my favorite siteshellip

Inspiration Mundo SA (globo)

httpglobonewsglobocomJornalismoGN0JOR315-1766500html

WIWH ndash localizing business models

bull Localizing business models WIWH ―would it work here a look at what is great here somewhere else and a systematic approach to analyzing potential of localizing foreign business models

Homework Review ndash class participation

bull Each student to present Front of class Top 2 ideas

bull Students watching should Think critically Ask questions Challenge assumptions

bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)

Homework review ndash my observations

Most did well locally

Struggled globally

Most did well looking at (a) problems and (c) ideas to transfer

But struggled with ―trends

Where to look for more trends and

inspiration hellip

bull Some of my favorite siteshellip

Inspiration Mundo SA (globo)

httpglobonewsglobocomJornalismoGN0JOR315-1766500html

Homework Review ndash class participation

bull Each student to present Front of class Top 2 ideas

bull Students watching should Think critically Ask questions Challenge assumptions

bull All students should take notes over the course of the semester Top problems (locally nationally globally) Top trends (l n g) Top transferrable ideas (l n g)

Homework review ndash my observations

Most did well locally

Struggled globally

Most did well looking at (a) problems and (c) ideas to transfer

But struggled with ―trends

Where to look for more trends and

inspiration hellip

bull Some of my favorite siteshellip

Inspiration Mundo SA (globo)

httpglobonewsglobocomJornalismoGN0JOR315-1766500html

Homework review ndash my observations

Most did well locally

Struggled globally

Most did well looking at (a) problems and (c) ideas to transfer

But struggled with ―trends

Where to look for more trends and

inspiration hellip

bull Some of my favorite siteshellip

Inspiration Mundo SA (globo)

httpglobonewsglobocomJornalismoGN0JOR315-1766500html

Where to look for more trends and

inspiration hellip

bull Some of my favorite siteshellip

Inspiration Mundo SA (globo)

httpglobonewsglobocomJornalismoGN0JOR315-1766500html

Inspiration Mundo SA (globo)

httpglobonewsglobocomJornalismoGN0JOR315-1766500html

Springwise

httpspringwisecomideas

Springwise

bull Who is it for

Springwise is required brain food for entrepreneurial minds Whether youre a budding entrepreneur head of a start-up management consultant marketing manager consumer insights expert trend watcher journalist private investor business development director or venture capitalist Springwise will instantly inspire you by getting the worlds most promising new business ideas and young ventures right in front of you

httpspringwisecomideas

Springwise

bull Springwise scans the globe for the most promising business ventures ideas and concepts that are ready for regional or international adaptation expansion partnering investments or cooperation We ferociously track more than 400 global offline and online business resources as well as taking to the streets cameras at hand

bull To ensure true glocallsquo coverage the central office is in close contact with more than 8000 Springspotters in over 70 countries worldwide Springwises weekly newsletter to which you can subscribe for free is sent to more than 100000 business professionals in more than 120 countries

bull Springwise is the first company to compile and send out a newsletter like this on a global scale making optimal use of an ever more networked world Established in spring of 2002 Springwise is headquartered in Amsterdam The Netherlands

httpspringwisecomideas

Trendwatchingcom

A Brazilian versionhellip

VC thought-leaders

More Homework

Sorry

Homework 1

3-questions exercise ndash AGAIN ndash try

to improve 2nd timebull Identify at least (1) major problem (1) major trend

and (1) transferrable idea in

bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or

worldwide

bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom

A Brazilian versionhellip

VC thought-leaders

More Homework

Sorry

Homework 1

3-questions exercise ndash AGAIN ndash try

to improve 2nd timebull Identify at least (1) major problem (1) major trend

and (1) transferrable idea in

bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or

worldwide

bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom

VC thought-leaders

More Homework

Sorry

Homework 1

3-questions exercise ndash AGAIN ndash try

to improve 2nd timebull Identify at least (1) major problem (1) major trend

and (1) transferrable idea in

bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or

worldwide

bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom

More Homework

Sorry

Homework 1

3-questions exercise ndash AGAIN ndash try

to improve 2nd timebull Identify at least (1) major problem (1) major trend

and (1) transferrable idea in

bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or

worldwide

bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom

Homework 1

3-questions exercise ndash AGAIN ndash try

to improve 2nd timebull Identify at least (1) major problem (1) major trend

and (1) transferrable idea in

bull (a) locally ndash Recifebull (b) locally ndash Brazilbull ( c) globally ndash some other part of world or

worldwide

bull Due Saturday March 20th ndash Maximum 1 page ndash word document ndash submit by email to briandbutlergmailcom

3-questions exercise ndash AGAIN ndash try to

improve 2nd time

Homework 2

Group Project

bull Pick your group (3 students)bull All groups must deliver the following

Proposed product service Proposed 2 countries Outline of major issues (cultural technological

political economichellipfor why it may or may not work)

Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom

Homework 2

Group Project

bull Pick your group (3 students)bull All groups must deliver the following

Proposed product service Proposed 2 countries Outline of major issues (cultural technological

political economichellipfor why it may or may not work)

Due Saturday 27th 10am Word document 2 pages max submit by email to briandbutlergmailcom

Homework 3

Social Media projectbull To get ready for next class presentation on how global

entrepreneurs can use social media to attract global clients

bull All students must signup for Twitter facebook linkedin Be prepared for discussion about ―social media and

entrepreneurship

bull Extra credit +1 point for class participation available to student that finds amp connects with me on the most number of locations

Due Tursday May 1st (before easter)

International IQ moment

Great stuff abroad you should know exists

Why

bull Travel abroad (in person online through media)

Above allhellip learn to be curious about international places people cultures businesses events politics etc

Increase your international IQ every day

Santorini Greece

Santorini Greece

bull Volcano

bull Greek Island

bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera

International IQ moment

Great stuff abroad you should know exists

Why

bull Travel abroad (in person online through media)

Above allhellip learn to be curious about international places people cultures businesses events politics etc

Increase your international IQ every day

Santorini Greece

Santorini Greece

bull Volcano

bull Greek Island

bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera

Why

bull Travel abroad (in person online through media)

Above allhellip learn to be curious about international places people cultures businesses events politics etc

Increase your international IQ every day

Santorini Greece

Santorini Greece

bull Volcano

bull Greek Island

bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera

Santorini Greece

Santorini Greece

bull Volcano

bull Greek Island

bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera

Santorini Greece

bull Volcano

bull Greek Island

bull Santorini is essentially what remains of an enormous volcanic explosion destroying the earliest settlements on what was formerly a single island and leading to the creation of the current geological caldera

International IQ moment

Great stuff abroad you should know exists

Mount St Michael France

Mount St Michael France

Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in

Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before

modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount

bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]

bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles

Mount St Michael France

Mount St Michael France

Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in

Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before

modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount

bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]

bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles

Mount St Michael France

Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in

Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before

modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount

bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]

bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles

Mont Saint-Michel Francebull Mont Saint-Michel (English Saint Michaels Mount) is a rocky tidal island and a commune in

Normandy France (Le Mont-Saint-Michel)bull Tidal islandbull Mont Saint-Michel was previously connected to the mainland via a thin natural land bridge which before

modernization was covered at high tide and revealed at low tide This has been compromised by several developments Over the centuries the coastal flats have been polderised to create pasture Thus the distance between the shore and the south coast of Mont-Saint-Michel has decreased The Couesnon River has been canalised reducing the flow of water and thereby encouraging a silting-up of the bay In 1879 the land bridge was fortified into a true causeway This prevented the tide from scouring the silt round the mount

bull On 16 June 2006 the French prime minister and regional authorities announced a euro164 million project (Projet Mont-Saint-Michel[1]) to build a hydraulic dam using the waters of the river Couesnon and of tides that will help remove the accumulated silt deposited by the uprising tides and to make Mont-Saint-Michel an island again It is expected to be completed by 2012[2]

bull The construction of the dam is now complete (it was inaugurated in 2009) The project also includes the destruction of the causeway that was built on top of the small land bridge and enlarged to join the island to the continent but also used as a parking for visitors It will be replaced by an elevated light bridge under which the waters will flow more freely and that will improve the efficiency of the now operational dam and the construction of another parking on the continent Visitors will have to use small shuttles to cross the future bridge which will still be open to walking people and unmotorized cycles