Startnowhow - Entrepreneurship as a Profession

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StartNowHow

• Open seminar series for active and prospective entrepreneurs

• 10 sessions on monthly basis until summer 2015

• Covers relevant theoretical and practical aspects of entrepreneurship

• Based on lecture „entrepreneurship“ @Bogazici University

• Based on experiences of entrepreneurs, investors, mentors and consultants

• Each session with guest speaker (entrepreneurs, investors, mentors, etc.)

• Each session will end with test elevator pitch by seminar participant

• Seminar materials can be downloaded after the event

• Mondays 17.15h – 19.30h

• Next session: Mon, December 8th, 2014

• TOPIC: Opportunity Recognition and Evaluation

• Certificate provided for participants joining at least 7/10 sessions

• Early registration for each session required (eventbrite), capacity 50 people!

• Priority for regular participants

Startnowhow – Seminar 2 11/12/2014 2

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StartNowHow - Seminar Topics (preliminary)

1. Mon, 20.10.: The entrepreneurial ecosystem in Turkey

2. Mon, 10.11.: Entrepreneurship as a profession

3. Mon, 8.12.: Opportunity recognition and evaluation

4. Mon, 12.1.: Planning, testing and developing a business model

5. Tbd: Market and competitor research

6. Tbd: Financial planning for startups

7. Tbd: Marketing planning and control – the role of key performance indicators

8. Tbd: Funding the startup – stage financing for ventures

9. Tbd: The investment process – pitching, negotiations and termsheet

10. Tbd: Success and failure as an entrepreneur


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Definitions: Entrepreneur

• Schumpeter (1942): An entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation Theory of „creative destruction“ (Schumpeter, Capitalism, Socialism and Democracy, 1942)

• Drucker (1985) – some quotes:

• NOT: Someone who starts his own, new and small business

• NOT: “Der Unternehmer” (Owner-manager) – the person who owns and runs a business

• NOT: A personality trait – “in thirty years I have seen people of the most diverse personalities and temperaments”

• “Everyone who can face up to decision making can learn to be an entrepreneur”

• “Entrepreneurship .. is behavior rather than personality trait”

• “Entrepreneurs see change as the norm and as healthy”

(Drucker, Innovation and Entrepreneurship, pp.1-10)

• Hisrich / Peters / Shepherd: An entrepreneur is an individual who takes initiative to bundle resources in innovative ways and is willing to bear the risk and / or uncertainty to act. (Hisrich / Peters / Shepherd, Entrepreneurship, p.6)

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The Entrepreneur – from the Entrepreneur‘s Perspective

• (from: Scott Mitchell, Founder of Core Electronics, UK; taken from Stokes / Wilson, Small Business Management and Entrepreneurship, p. 34)

• “It went something like this: One day this guy woke up in the morning and said to himself „I‘m going to become an entrepreneur“. So he went to the best programmer in the company where he was working and whispered, „Would you like to join my company? Then, be there... My place... Ten o‘clock Saturday – and bring some bagels.“ Then he goes to the best guy in the finance department and says, „bring some coffees“. And then he goes to the best marketing guy and the best IP lawyer with the same invitation. Ten o‘clock Saturday comes around. They ask, „Hey, what is your company going to do?“ The guy replies, „Build a new computer program.“ An hour later, and the business plan is done. The finance guy says he knows where he can get some money. Then they say to their host, „So what have you done?“ What indeed? He didn‘t provide the coffee. It wasn‘t him who brought the bagels. He didn‘t even provide the idea. But he was the entrepreneur. He made it happen.“


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Myths about Entrepreneurship

• Myth 1: Entrepreneurs are born, not made

• Myth 2: Entrepreneurship cannot be taught

• Myth 3: I will be my own boss

• Myth 4: Most new ventures fail

• Myth 5: I can always start my own business

• Myth 6: I can be an entrepreneur because I have been successful in the corporate world

• (all taken from Harper, Extraordinary Entrepre- neurship, pp. I-13 – I-21)

• ... And some more...

• Myth 7: Entrepreneurs are doers, not thinkers

• Myth 8: Entrepreneurs are always inventors

• Myth 9: Entrepreneurs are academic and social misfits

• Myth 10: All entrepreneurs need is money

• Myth 11: All entrepreneurs need is luck

• Myth 12: Entrepreneurship is unstructured and chaotic

• Myth 13: Entrepreneurs are extreme risk takers ... or gamblers

• (Adopted from Kuratko, Entrepreneurship – Theory, Process, Practice, pp. 5-8)


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Characteristics of Entrepreneurs?

• Endless research and ever-growing lists of „characteristics“ of entrepreneurs

• Supported by textbooks / online questionnaires „to find out if you are an entrepreneur“

• Useful example (taken from Timmons / Spinelli, New Venture Creation, p.47):

• Commitment and determination

• Courage

• Leadership

• Opportunity obsession

• Tolerance of risk, ambiguity, and uncertainty

• Creativity, self-reliance, and adaptability

• Motivation to excel

• Longer example (from: Kuratko, Entrepreneurship – Theory, Process, Practice, pp.30-36)

• Initial list: 11 characteristics

• Followed by table with 42 characteristics

• Followed by explanations about 17 characteristics, partly linked to initial 11 characteristics

• ....????


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Longlist of Characteristics?


Taken from: Kuratko, Entrepreneurship – Theory, Process, Practice, p.31

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Empirical Findings

Bowers, 8 Patterns of Highly Effective Entrepreneurs

1. Seizing opportunities: Entrepreneurs notice things

2. Running your own show: Entrepreneurs want to be in charge (or: Entrepreneurs have a fierce aversion to the very thought of reporting to a boss)

3. Nurture vs. nature: Is there an entrepreneurial gene?

4. Turning on a dime: Entrepreneurs are nimble

5. Tenacity: Entrepreneurs never give up

6. Delusions of grandeur: You gotta believe

7. Wait a minute: Will this work? „It is tempting to view entrepreneurs as somehow stuck in adolescence, bursting with energy and driven by grandiose dreams the way we all were once upon a time. In truth, their lofty ambitions are often accompanied by a firm pragmatism that keeps them grounded in reality.“

8. Failing upward „... Entrepreneurs spot opportunities almost everywhere they cast their restless eyes and move quickly to seize them. And occasionally, these traits cause them to fumble. But there the paradox kicks in: The missteps and occasional fiascoes are key ingredients in the entrepreneur‘s recipe for success. Successful entrepreneurs analyze what went wrong and figure out how to leverage their mistakes to their purposes. They fail upward.“


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Empirical Findings: Age


Source: Kelly / Bosma / Amoros, GEM Global Entrepreneurship Monitor, 2010 Global Report, 2010, p. 34

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A More Useful Approach


Source: Stokes / Wilson, Small Business Management, p. 51

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The Dark Side of Entrepreneurship


Source: Shane, Ihe Illusions of Entrepre-

neurship, New Haven / London 2008

US study UK studies

Source: Stokes / Wilson, Small Business

Management, p. 87

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• Confrontation with risk

• In its deepest sense, entrepreneurs are willing to accept risk for what they believe in

• Entrepreneurs have ability to cope with ambiguity, and a consistent lack of clarity

• Have a drive to put their imprint on whatever they are creating, ego is wrapped up in the enterprise

• Financial risk

• Career risk

• Family and social risk

• Psychic risk

• Negative effects from the entrepreneurial ego

• Overbearing need for control

• Sense of distrust, paranoia

• Overriding desire for success

• Sometimes „uncoachable“, overestimating themselves and their abilities

• ... But all these characteristics are, to a certain extent, needed to succeed as an entrepreneur careful balancing needed

• (taken from Kuratko, Entrepreneurship – Theory, Process, Practice, pp. 42-44)


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• Stress

• Entrepreneurs are prone to stress

• Continous discrepancies between (self-)expectations and realitiy / personality

• Entrepreneurs are often „type A personalities“ – prone to stress

• Chronic and severe sense of time urgency

• Constant involvement in multiple projects subject to deadlines

• Neglect of all aspects of life except work

• Tendency to take on excessive responsibility, „only I am capable of taking care of it“

• Explosiveness of speech, speaking faster than most people, swearing when upset

• Typical sources of entrepreneurial stress

• Loneliness, inner feelings of isolation

• Immersion in business

• Problems with people

• Need to achieve

• Implications

• Back problems, indigestion, insomnia, headaches

• Type A behaviour related to coronary heart disease, stress is contributor to heart disease

• .....

• (taken from Kuratko, Entrepreneurship – Theory, Process, Practice, pp. 39-42)


OU

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K StartNowHow - Outlook

• Today‘s materials will be made available to participants for downloading

• Next Seminar: „Opportunity Recognition and Evaluation“

• Monday, 8.12.2014, 17.15 – 19.30h

• Don‘t forget to register early (eventbrite) - capacity 50 people!

• Priority for participants / registrants from today‘s session

• General rule: Allocation of seats according to participation

• Regular participation = certificate (70% participation)

• Be prepared to pitch!


BIC ANGEL INVESTMENTS Dr. Joachim Behrendt

Phone: +90 212 328 1939 Fax: +90 212 328 1933

www.bicangels.com http:/twitter.com/joachimbehrendt http://tr.linkedin.com/pub/joachim-behrendt/18/706/a7a

Email: [email protected]

http://twitter.com/joachimbehrendt

http://tr.linkedin.com/pub/joachim-behrendt/18/706/a7a



Startnowhow - Entrepreneurship as a Profession

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