The Entrepreneurial Mindset - edge.edx.org · TIME Research Area | Innovation & Entrepreneurship...

TIME Research Area | Innovation & Entrepreneurship Group (WIN)

School of Business and Economics

TIMEResearch Area | Innovation & Entrepreneurship Group (WIN)

The Entrepreneurial Mindset

Get Yourself Started


THE ENTREPRENEURIAL MINDSET

PITFALLS

IDEA

APPROACH

LEAN

START-UP

TEAM

GET YOURSELF

STARTED

Apply the process of

successful

entrepreneurs




UNCERTAINTY


BUSINESS PLAN WON’T HELP IN PRACTICE

A Business Plan helps structuring and challenging your business idea

…but won‘t help in practice due to rising uncertainties

Global markets

Less loyalty of customers/suppliers

Increasing competition

Pressure from financial markets

Shorter product life cycles


ENTREPRENEURAL UNCERTAINTIES

MARKET

Customers

Size and growth

Channels

Competitors

[1]

PRODUCT

Cost

Technology

Materials

Suppliers

Design

[3]

MANAGEMENT

Capabilities

Financial Strength

Talent

Learning Skills

Strategies

[2]

[6]


ENTREPRENEURAL UNCERTAINTIES

Making decisions

is never easy! REGULATION

Government

Federal state laws

local ordinances

Standards and

industry rules

[4]

[6]

FINANCE

Cost and availability

of capital

Expected return on

investment

[5]


REFERENCES

[1] Segway Inc. (2004): Segway HT i170. URL: https://msu.edu/~luckie/segway/i170/i167-i170.jpg.

Access Date: 17.08.2016

[2] Nisbet, M. C. (2015): Steve Jobs. URL: http://bigthink.com/age-of-engagement/steve-jobs-devotion-to-

alternative-therapies-and-diets. Access Date: 17.08.2016

[3] Deutsches Museum (2016): Ford Model T Touring Car 1922. URL: http://www.deutsches-

museum.de/fileadmin/Content/010_DM/070_Presse/2005_08/t_dm600.jpg. Access Date: 17.08.2016

[4] Freier, A. (2015). Uber usage statistics and revenue. URL: http://www.deutsches-

museum.de/fileadmin/Content/010_DM/070_Presse/2005_08/t_dm600.jpg. Access Date: 17.08.2016

[5] © Tesla Motors

[6] Dorf, R., Byers, T. (2008): Technology Ventures – From Idea to Enterprise. McGraw Hill, p.138.

https://msu.edu/~luckie/segway/i170/i167-i170.jpg




http://bigthink.com/age-of-engagement/steve-jobs-devotion-to-alternative-therapies-and-diets




















http://www.deutsches-museum.de/fileadmin/Content/010_DM/070_Presse/2005_08/t_dm600.jpg












THE

ENTREPRENEURIAL

PROCESS


MITIGATE UNCERTAINTIES - HOW?

The

Entrepreneurial

Way!

THE ENTREPRENEUR LARGE COMPANY

“I had to give it a

full go and see

what happened.” Michel Dell [1]

DATA

Based on future expectations

Scenario 1

PLAN

Scenario n Scenario 2

Focus on planning & prediction Focus on skills, knowledge

and own resources

[2]


RECAP: SARASVATHY’S EXPERIMENT

27 Expert

Entrepreneurs

Saras D. Sarasvathy

[3]

[4]


THE ENTREPRENEURIAL PROCESS

MEANS GOALS INTERACTION COMMITMENT

Who am I?

What do I know?

Who do I know?

What can I do? Interact with persons I know

Get commitment of stakeholders

CONTINGENCY

NEW MEANS

NEW GOALS

[4]

CO-CREATE NEW PRODUCTS, MARKETS, AND FIRMS


ENTREPRENEURIALS PRINCIPLES

[4]

View of the future Focus on prediction: Analyzing

data of the past to forecast

Focus on control: Environment is

considered shapeable

Basis for taking action

Goal-oriented: Goal (ends)-

driven action, estimation of

necessary means

Means-oriented: Preferences,

knowledge, networks, unspecified

goals

View of risk and return

Expected return: Decisions

based on expected risk-adjusted

value

Affordable loss: Restriction on

downside potential

Attitude towards

outsiders

Competitive analysis: Highly

competitive relation

Partnerships: Committed partners

who contribute several means

Attitude towards

contingencies

Avoiding surprises: Don’t get of

the course

Leveraging contingencies:

Incorporation of external

information

LARGE COMPANY ENTREPRENEUR DIMENSION


REFERENCES

[1] Dell, M.: URL: http://www.investerarcitat.se/internet/michael-dell-2/. Access Date: 17.08.2016

[2] Hartmann Studios (2011): Michael Dell. URL: https://www.flickr.com/photos/oracle_images/6211618173/.


[3] University of Virgina (2016): Saras D. Sarasvathy. URL: http://www.darden.virginia.edu/faculty-

research/directory/saras-d-sarasvathy/. Access Date: 17.08.2016

[4] Dew, N., Read, S., Sarasvathy, S. D., & Wiltbank, R. (2009): Effectual versus Predictive Logics in

Entrepreneurial Decision-making: Differences between Experts and Novices. Journal of business venturing,

24(4), 287-309

http://www.investerarcitat.se/internet/michael-dell-2/





https://www.flickr.com/photos/oracle_images/6211618173/

http://www.darden.virginia.edu/faculty-research/directory/saras-d-sarasvathy/










MEANS


ASSES YOUR MEANS

What do I

know? Who am I?

Whom do I

know?


GET TO KNOW YOUR MEANS

1

ASSES

What are your

strengths?

What are you

good at?

1

REFLECT

In which context

did you use your

strengths?

Which skills &

knowledge were

required in these

situations?

2

TRANSFER

In which context

do I want to

apply my skills &

knowledge?

Which is the

closest context

for me to use my

skills &

knowledge?

3

[1]


FREITAG BROTHERS

[2] [2] [2]

[2] [2] [2]


REFERENCES

[1] Faschingbauer, M. „Effectuation (2010): Wie erfolgreiche Unternehmer denken, entscheiden und handeln.

Schäffer Poeschl.

[2] Freitag, D. (2016): From Truck till Bag. URL: https://www.freitag.ch/de/about/production. Access Date:

17.08.2016

https://www.freitag.ch/de/about/production






AFFORDABLE LOSS


RISK & RETURN

NON-ENTREPRENEURS EXPERT ENTREPRENEURS

“Our goal is 25 percent return

on equity.”

Josef Ackermann,

former CEO of Deutsche Bank [3]

“Good entrepreneurs don’t like

risk; they seek to reduce risk [...]

Starting a company is already

risky, and then you systematically

eliminate risk step by step in

those early days….”

Jeff Bezos, CEO of Amazon [4]

[2] [1]


FOCUS ON AFFORDABLE LOSS

Michel Dell

Started his company with an initial investment of US$ 1.000

Leonard Shoen

Started his company with an

initial investment of US$ 5.000

[5]

[6]


TRADITIONAL APPROACH OF MANAGERS

1

STEP 1 Pick a target return

STEP 2 Reduce risk using

insurances etc.

High Low

Hig

h

Low

Return

Ris

k


ENTREPRENEURIAL APPROACH

STEP 1 Pick a comfortable

level of risk

STEP 2 Push creatively to

increase return.

[7] High Low

Hig

h

Low

Return

Ris

k


CONTROLLING THE INPUT

EXPERT ENTREPRENEURS

???

Re

turn

In

pu

t

NON-ENTREPRENEURS

Retu

rn

Input

[8]


REFERENCES

[1] Engdahl, W.F. (2011): Ackermann’s Deutsche Bank Follies: Chickens Come Home to Roost. URL: http://www.voltairenet.org/article167456.html. Access Date: 17.08.0216

[2] Rodriguez, R. (2016): 10 Frases de Grandes Emprendedores. URL: http://rodolforodriguez.net/wp-content/uploads/2016/08/item_item7-600x470.jpg. Access Date: 17.08.2016

[3] Spiegel Online (2010): The World from Berlin: Is Deutsche Bank Becoming a Paragon of Modesty?. URL: http://www.spiegel.de/international/business/the-world-from-berlin-is-deutsche-bank-becoming-a-paragon-of-modesty-a-676213.html. Access Date: 17.08.2016

[4] Bulygo, Z. (2013): 12 Business Lessons You Can Learn from Amazon Founder and CEO Jeff Bezos. URL: https://blog.kissmetrics.com/lessons-from-jeff-bezos/. Access Date: 17.08.2016

[5] Hartmann Studios (2011): Michael Dell. URL: https://www.flickr.com/photos/ oracle_images/6211618173/. Access Date: 17.08.2016

[6] U-Haul (2014): L.S. “Sam” Shoen. URL: http://myuhaulstory.com/2014/12/23/m-carty-u-haul-trailer-man/. Access Date: 17.08.2016

[7] Sarasvathy, S. (2011): Stuart Read IMD Business School.

[8] Faschingbauer, M. (2010): Effectuation: Wie erfolgreiche Unternehmer denken, entscheiden und handeln. Schäffer Poeschl, p. 203

http://www.voltairenet.org/article167456.html



http://rodolforodriguez.net/wp-content/uploads/2016/08/item_item7-600x470.jpg






http://www.spiegel.de/international/business/the-world-from-berlin-is-deutsche-bank-becoming-a-paragon-of-modesty-a-676213.html




























https://blog.kissmetrics.com/lessons-from-jeff-bezos/








https://www.flickr.com/photos/oracle_images/6211618173/

http://myuhaulstory.com/2014/12/23/m-carty-u-haul-trailer-man/














CONTINGENCY


LEVERAGE CONTINGENCIES

POTATO CHIP

• Guest complained

about potatoes

being too thick

• Chef cut them as

thin as possible

POST IT

• Developed glue that

isn’t sticky

• No industrial use

new

opportunities

[1,2]


CONTINGENCIES

A B A

Y

Z

…

1

NON-ENTREPRENEURS EXPERT ENTREPRENEURS

“I always tried to turn every

disaster into an opportunity.” John D. Rockefeller [4]

[3]


SURPRISES AS NEW OPPORTUNITIES

CURIOSITY MODE NEW DIRECTIONS

Be open for

surprises.

TRY NEW THINGS

Meet new people.

Expose yourself to

new ideas.

In which direction do

you go?

1

[5]


SURPRISES AS NEW OPPORTUNITIES

SUPRISES CHANGE WHAT CAN YOU DO

What did surprise

you?

What can you do

with your new

means?

How did your means

change?

[5]


DON’T FORGET…

[6]


REFERENCES

[1] Wikipedia the Free Ecyclopedia (2016): Potato Chip. URL: https://en.wikipedia.org/wiki/Potato_chip. Access

Date: 17.08.2016

[2] Wikipedia the Free Ecyclopedia (2016): Post-it note. URL https://en.wikipedia.org/wiki/Post-it_note. Access

Date: 17.08.2016

[3] Wikipedia the Free Ecyclopedia (2016): John D. Rockerfeller. URL:

https://en.wikipedia.org/wiki/John_D._Rockefeller#/media/File:John_D._Rockefeller_1885.jpg. Acces Date:

17.08.2016

[4] Rockerfeller, J. URL: http://www.goodreads.com/quotes/1252000-i-always-tried-to-turn-every-disaster-into-an-

opportunity. Access Date: 17.08.2016

[5] Faschingbauer, M. (2010): Effectuation: Wie erfolgreiche Unternehmer denken, entscheiden und handeln,

Schäffer Poeschl, p.205.

[6] TallyPress (2016): 8 Ways to Look At It, When Life Gives You Lemons. URL:

http://static1.squarespace.com/static/53ec5e31e4b0fd0d4cf4d36f/t/550fca86e4b000acf77b25e9/14270982491

92/when+life+gives+you+lemons+make+lemonade. Access Date: 17.08.2016

https://en.wikipedia.org/wiki/Potato_chip



https://en.wikipedia.org/wiki/Post-it_note




https://en.wikipedia.org/wiki/John_D._Rockefeller



http://www.goodreads.com/quotes/1252000-i-always-tried-to-turn-every-disaster-into-an-opportunity





















http://static1.squarespace.com/static/53ec5e31e4b0fd0d4cf4d36f/t/550fca86e4b000acf77b25e9/1427098249192/when+life+gives+you+lemons+make+lemonade






START WITH WHY


WHY?

"People don't buy what you do,

they buy why you do it.“

Simon Sinek [2]

[1]


THE GOLDEN CIRCLE

Why

How

What

WHAT

Every organization

knows what they do

HOW

Some organizations

know how they do it

WHY

Very few organizations

know why they do it.

Products or

services they sell

That’s what makes

them special

It’s the very reason

why they exist


START WITH WHY

Why

How

What

• Inside-out direction

• Start with your purpose or cause

• That’s how you drive decision-making

and behavior

[2]


WHY APPLE?

Why

How

What

APPLE

[2]

[3]


WHAT ELSE MADE APPLE SUCCESFULL?

“Great things in business are never done by one person. They're done by a team of people.”

Steve Jobs [5]

[4]



PITFALLS

IDEA

APPROACH

LEAN

START-UP

TEAM

GET YOURSELF

STARTED

Create your business

idea and evaluate its

potential

Unfold your

entrepreneurial

personality


successful

entrepreneurs



PITFALLS

IDEA

APPROACH

LEAN

START-UP

TEAM

GET YOURSELF

STARTED

Create your business

idea and evaluate its

potential

Unfold your

entrepreneurial

personality


successful

entrepreneurs

Build your own team

and establish relevant

partnerships

?


REFERENCES

[1] Start with Why (2011): Simon Sinek. URL: http://www.startwithwhy.com. Access Date: 17.08.2016

[2] Sinek, S. (2011): Start with Why: How Great Leaders Inspire Everyone to Take Action.

[3] Apple Inc. (2016): Buy iMac. URL: http://www.apple.com/shop/buy-mac/imac. Access Date: 17.08.2016

[4] Yohe, M. (2010): Steve Jobs. URL: http://www.namespedia.com/image/Jobbs_8.jpg.


[5] Griggs, B. (2011): 10 great quotes from Steve Jobs. URL:

http://edition.cnn.com/2012/10/04/tech/innovation/steve-jobs-quotes/. Access Date: 17.08.2016

http://www.startwithwhy.com/



http://www.apple.com/shop/buy-mac/imac




http://www.namespedia.com/image/Jobbs_8.jpg

http://edition.cnn.com/2012/10/04/tech/innovation/steve-jobs-quotes/






The Entrepreneurial Mindset - edge.edx.org · TIME Research Area | Innovation & Entrepreneurship...

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