Recent Trends inEntrepreneurship

Connecticut Alumni Chapter

John R. “Jack” Thorne (IA’52)Emeritus Professor of Entrepreneurship

Tepper School of Business at Carnegie Mellon

Recent Trends in EntrepreneurshipRecent Trends in Entrepreneurship

Jack Thorne

- Morgenthaler Emeritus Professor of Entrepreneurship at Carnegie Mellon University’s David A. Tepper School of Business

Hartford Tepper Alumni Meeting – January 27, 2005

Update on Entrepreneurship ProgramUpdate on Entrepreneurship Program

1. Management and strategy

2. Courses and programs (6 undergraduate and 10 MBA courses)

3. Cross-campus integration

4. McGinnis Venture Competition

5. Recent successful business plan competition wins

6. Ratings

7. Tepper School notes

Recent Trends in EntrepreneurshipRecent Trends in Entrepreneurship

1. Definition of entrepreneurship – “Insane persistence in the face of total rejection.”

2. Venture capital is coming back, but still tough for start-up companies.

3. More organized “angel” money4. Bootstrapping is “in,” especially early. “Buy

low, sell high, collect early, pay late.”

Recent Trends in EntrepreneurshipRecent Trends in Entrepreneurship

5. University spin-outs6. Big company deals7. Deals with suppliers, customers and distributors8. Importance of key people and associates9. Corporate intrepreneurship increasing

Management Lessons with Management Lessons with EntrepreneurshipEntrepreneurship

1. Test product in market fast and early.2. Reduce risk with small $$$.3. Prove product and selling method early.4. Pay lots of attention to pricing/margins.5. Move fast and spend big $$$ after proof. “No

such thing as an over-capitalized company.”

Management Lessons with Management Lessons with EntrepreneurshipEntrepreneurship

6. Acquire the best people, directors, initial investors, advisors and professionals.

7. There are big differences in investors – build relationships early!

8. Marketing/selling usually costs more and takes longer than expected.

High-Potential Areas for New VenturesHigh-Potential Areas for New Ventures

1. Almost anywhere you or your partners know the market well and see demand

2. Look for an “unfair” competitive advantage.

3. Where the $$$ to evaluate potential ideas is available

4. Where there are good examples of success

5. Where the market is growing.

Questions and Answers

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First need to organize a team of leaders to launch the chapter.

Develop a mission statement. Survey alumni constituency in region. Begin to organize a calendar of alumni

activities.

Organizing an Alumni Chapter

Alumni volunteer leadership is vital Bob Iseman (IA’75) is serving as first

PresidentNeed a team of volunteers to assist in leading

the chapterHold regular meetings face-to-face or via

conference call to organize activities

Organization of the Connecticut Chapter

Alumni Chapter EventsHolding alumni events on a regular basis will increase alumni involvement and strengthen the chapter.The Office of Alumni Relations will provide support for your activities including arranging for our faculty to come as speakers giving alumni access to leading–edge research.

Ideas for Alumni Events

Faculty Speakers:Dr. Jeffrey Williams on “Managing When

Nothing Lasts”Dr. Lester Lave on “The Northeast Blackout

and Energy Deregulation”Dr. Tom Emerson, Art Boni or Jack Thorne on

“Entrepreneurship”

More Ideas for Alumni EventsAlumni Panels:

Entrepreneurship – SF Bay, Boston, Pittsburgh, Seattle

Life Sciences (Biotech) – SF, BostonFinance/Investment - NY, Pittsburgh, SFCareer Development – NY, SF, DCHigh Tech and Entertainment – NY

Other Ideas for Alumni Events

Alumni or Industry Speakers:Jim Swartz (IA’66) – Leading VC from

Silicon ValleyCFO of Amazon.com or Pfizer or JP Morgan

Chase Dina Dublon (IA’79)Other venues for speakers may be dinners or

breakfast or lunch meetings.

Your Role as Alumni – Become Involved Join the chapter leadership team Recruiting, internships and jobs Be an ambassador in your company Serve as an alumni speaker for student clubs Host student corporate visits Be a student mentor; assist with networking Invest in the school’s future – Annual Fund

Thank you for attending and for all your support

of your alma mater

Yoshiaki Fujimori – CEO, GE Asia

Class of 1981

Eric Schwalm – Partner, Bain & Company

Class of 1987

Brian Olsavsky – Vice President

Amazon.com

Class of 1989

Rosemary Sisson – Director

BNP Paribas

Class of 1983

Eric Butler – Vice President

Union Pacific

Class of 1986