Entrepreneurship Presentation PDF

Lecturer: Dr. Ehab Yakout Lecturer: Dr. Ahmed Sedky  Textbooks 🠶 The Entrepreneurship Theory, Process and Practice.Howard Frederick, Allan O. Connor and Donald F. Kuratko. (4th Edition ) 🠶 The Startup Owner's Manual_ The Step-By-Step Guide for Building a Great Company by Steve Blank -...

Lecturer: Dr. Ehab Yakout Lecturer: Dr. Ahmed Sedky  Textbooks 🠶 The Entrepreneurship Theory, Process and Practice.Howard Frederick, Allan O. Connor and Donald F. Kuratko. (4th Edition ) 🠶 The Startup Owner's Manual_ The Step-By-Step Guide for Building a Great Company by Steve Blank - Wiley (2020) 🠶 The Lean Startup By Eric Ries 🠶 Business model generation by Alexander Osterwalder.  Entrepreneurship 🠶 What is Entrepreneurship W1&2 🠶 Ideation, Creativity & Innovation management. W3&4 🠶 Value creation/ VPC/ Empathy maps. W5&6 🠶 Business model generation/ BMC. W8&9 🠶 Lean startup/ MVP.(minimum viable product) W 10 & 11 Entrepreneur vs. Intrapreneur SME vs Startup Small & medium Enterprises Sustaining tech. vs disruptive tech. Airbnb (founded in 2008) Airbnb began as a website called Airbedandbreakfast.com that was designed to offer a place to stay for attendees of large conferences once all the hotel rooms in the host city were sold-out. Founders created a website to put their apartment for rent for a conference in San Francisco. Had 3 paying guests over the duration of the conference Validated hypothesis that people would be willing to stay in other people’s department than hotels Airbnb (founded in 2008) Company vs. Startup  Startup “ A startup is a temporary organization in search of a scalable, repeatable, profitable business model.” Steve Blank  Company “ A company is “a permanent organization designed to execute a business model that is repeatable and scalable..”  Entrepreneurship “Michael Dell’’ ▪ Dell Computer started as a one-person operation and grew into a giant corporation. ▪ Dell’s growth was established by the imagination and skill of Michael Dell, the entrepreneur who founded the company. ▪ Entrepreneurs are people, like Dell, who assume the risk of business ownership. ▪ Entrepreneurship is the process of seeking opportunities under conditions of risk.  Entrepreneurship Goals ▪ Starting a new business and to be independence from working for someone else. ▪ Achieve a safe and secure financial future for themselves and their families. ▪ Starting new business with the goal of growth and expansion. ( Michael Dell – Howard Schultz)  Entrepreneurs Facing The Unknowing ▪ All of us – entrepreneurs included – now face ‘existential risks’. Those are events that can cripple civilization or even cause the extinction of the human race ‫انقراض الجنس‬ ‫البشري‬. ▪ Since the Industrial Revolution in the late eighteenth and early nineteenth centuries, many business entrepreneurs around the world have simply plundered and exploited the environment in ignorance, ‫ نهب واستغل البيئة جهال‬without any thought for sustainability. ▪ Early entrepreneurs were the first to see the possibility that fossilized coal and gas could fuel industry as well as power our dreams and innovations. ▪ History shows us that entrepreneurship is a source of economic growth, social renewal and personal development. ▪ They take the unknown as a challenge and continuously influence the path of the future. It is their ideas, savings, investment and innovation that lead to development. ▪ They are the ones who can alleviate poverty ‫ التخفيف من حدة الفقر‬by contributing to economic growth and job creation.  Types of Entrepreneurship 1. Small & medium Enterprises (SMEs): ▪ These smaller businesses make up the majority of all companies and employ half of the non-government working class. The distinguishing feature that separates small and large businesses that a small business entrepreneur obtains the role of the everyday manager instead of hiring someone to do the main upkeep for them. ▪ Some examples of this small business entrepreneurship include but are not limited to hairdressers, small markets, plumbers, and electricians. These typically contain locals or family members that work as employees. A larger portion of these small businesses are barely profitable, but this is frequently all the entrepreneur needs, as they are aiming towards being able to provide for a single family.  Types of Entrepreneurship 2. Innovative/ Scalable Startups: A scalable ‫ القابلة للتطوير‬start-up is often a business that is using technology or creating technology in the business. Think of a SAAS (Software As A Service) company that creates a Customer Relationship Management (CRM) software. They are going to sign on subscribers for a monthly or annual fee. The business falls into a space with a large market size and the potential for them to grow quickly and exponentially exists.  Types of Entrepreneurship 3. Large Company Entrepreneurship (Intrapreneurship): An entrepreneur working within a large company, creating new products/services (variants of existing or completely new) 4. Social Entrepreneurs: An entrepreneur who wants to solve social problems with their products and services is in this category of entrepreneurship. Their main goal is to make the world a better place. They don't work to make big profits or wealth. Instead, these kinds of entrepreneurs tend to start nonprofits or companies that dedicate themselves to working toward social good.  Characteristics of Entrepreneurship 🠶 Not all entrepreneurs are successful; there are definite characteristics that make entrepreneurship successful. A few of them are mentioned below: 🠶 Ability to take a risk- Starting any new venture involves a considerable amount of failure risk. Therefore, an entrepreneur needs to be courageous ‫ شجاع‬and able to evaluate and take risks, which is an essential part of being an entrepreneur. 🠶 Innovation- It should be highly innovative to generate new ideas, start a company and earn profits out of it. Change can be the launching of a new product that is new to the market or a process that does the same thing but in a more efficient and economical way. 🠶 Visionary and Leadership quality- To be successful, the entrepreneur should have a clear vision of his new venture. However, to turn the idea into reality, a lot of resources and employees are required. Here, leadership quality is paramount ‫ أساسي‬because leaders impart and guide their employees towards the right path of success.  Characteristics of 🠶 Entrepreneurship Open-Minded- In a business, every circumstance can be an opportunity and used for the benefit of a company. For example, Paytm recognized the gravity of demonetization ‫خطورة‬ ‫ إزالة النقود‬and acknowledged the need for online transactions would be more, so it utilized the situation and expanded massively during this time. 🠶 Flexible- An entrepreneur should be flexible and open to change according to the situation. To be on the top, a businessperson should be equipped to embrace change in a product and service, as and when needed. 🠶 Know your Product-A company owner should know the product offerings and also be aware of the latest trend in the market. It is essential to know if the available product or service meets the demands of the current market, or whether it is time to tweak ‫ حان وقت التعديل‬it a little. Being able to be accountable and then alter as needed ‫ تعديل حسب الحاجة‬is a vital part of entrepreneurship.  Importance of Entrepreneurship 🠶 Creation of Employment- Entrepreneurship generates employment. It provides an entry- level job, required for gaining experience and training for unskilled workers. 🠶 Innovation- It is the hub of innovation that provides new product ventures, market, technology and quality of goods, etc., and increase the standard of living of people. 🠶 Impact on Society and Community Development- A society becomes greater if the employment base is large and diversified. It brings about changes in society and promotes facilities like higher expenditure ‫ المصروفات‬on education, better sanitation ‫الصرف‬ ‫الصحي‬, fewer slums ‫العشوائيات‬, a higher level of homeownership. Therefore, entrepreneurship assists the organization towards a more stable and high quality of community life.  Importance of Entrepreneurship 🠶 Increase Standard of Living- Entrepreneurship helps to improve the standard of living of a person by increasing the income. The standard of living means, increase in the consumption of various goods and services by a household for a particular period. 🠶 Supports research and development- New products and services need to be researched and tested before launching in the market. Therefore, an entrepreneur also dispenses finance for research and development with research institutions and universities. This promotes research, general construction, and development in the economy. The 9 Deadly Sins for startups/ entrepreneurs 1. Assuming “I Know What the Customer Wants” 2. The “I Know What Features to Build” Flaw 3. Focus on Launch Date 4. Emphasis on Execution Instead of Hypotheses, Testing, Learning, and Iteration 5. Traditional Business Plans Presume No Trial and No Errors 6. Confusing Traditional Job Titles with What a Startup Needs to Accomplish 7. Sales and Marketing Execute to a Plan 8. Presumption of Success Leads to Premature Scaling‫افتراض النجاح يؤدي إلى‬ ‫تحجيم سابق ألوانه‬ 9. Management by Crisis Leads to a Death Spiral‫إدارة األزمة تؤدي إلى دوامة‬ ‫الموت‬  1. Assuming you know what the customer wants ▪ First and deadliest of all is a founder’s unwavering belief ‫ إيمان ال يتزعزع‬that he or she understands who the customers will be, what they need, and how to sell it to them. Any dispassionate observer would recognize that on Day One, a start-up has no customers, and unless the founder is a true domain expert, he or she can only guess about the customer, problem, and business model. On Day One, a start-up is a faith-based initiative built on guesses. ▪ To succeed, founders need to turn these guesses into facts as soon as possible by getting out of the building, asking customers if the hypotheses are correct, and quickly changing those that are wrong.  2. The “I know what features to build” flaw ▪ The second flawed assumption is implicitly driven by the first. Founders, presuming they know their customers, assume they know all the features customers need. ▪ These founders specify, design, and build a fully featured product using classic product development methods without ever leaving their building. Yet without direct and continuous customer contact, it’s unknown whether the features will hold any appeal to customers.  3. Focusing on the launch date ▪ Traditionally, engineering, sales, and marketing have all focused on the immovable launch date. Marketing tries to pick an “event” (trade show, conference, blog, etc.) where they can “launch” the product. Executives look at that date and the calendar, working backward to ignite fireworks on the day the product is launched. Neither management nor investors tolerate “wrong turns” that result in delays. ▪ The product launch and first customer ship dates are merely the dates when a product development team thinks the product’s first release is “finished.” It doesn’t mean the company understands its customers or how to market or sell to them, yet in almost every start-up, ready or not, departmental clocks are set irrevocably to “first customer ship.” Even worse, a start-up’s investors are managing their financial expectations by this date as well.  4. Emphasizing execution instead of testing, learning, and iteration ▪ Established companies execute business models where customers, problems, and necessary product features are all knowns; start-ups, on the other hand, need to operate in a “search” mode as they test and prove every one of their initial hypotheses. ▪ They learn from the results of each test, refine the hypothesis, and test again—all in search of a repeatable, scalable, and profitable business model. In practice, start-ups begin with a set of initial guesses, most of which will end up being wrong. Therefore, focusing on execution and delivering a product or service based on those initial, untested hypotheses is a going-out-of-business strategy.  5. Writing a business plan that doesn’t allow for trial and error ▪ Traditional business plans and product development models have one great advantage: They provide boards and founders an unambiguous ‫خالية من‬ ‫ الغموض‬path with clearly defined milestones the board presumes will be achieved. ▪ Financial progress is tracked using metrics like income statement, balance sheet, and cash flow. The problem is, none of these metrics are very useful because they don’t track progress against your start-up’s only goal: to find a repeatable and scalable business model. 6. Confusing traditional job titles with a startup’s needs ▪ Most startups simply borrow job titles from established companies. But remember, these are jobs in an organization that’s executing a known business model. The term “Sales” at an existing company refers to a team that repeatedly sells a known product to a well-understood group of customers with standard presentations, prices, terms, and conditions. Start-ups by definition have few, if any, of these. In fact, they’re out searching for them! ▪ The demands of customer discovery require people who are comfortable with change, chaos, and learning from failure and are at ease working in risky, unstable situations without a roadmap. 7. Executing on a sales and marketing plan ▪ Hiring VPs ‫ نواب‬and executives with the right titles but the wrong skills leads to further trouble as high-powered sales and marketing people arrive on the payroll to execute the “plan.” Executives and board members accustomed ‫ معتاد‬to measurable signs of progress will focus on these execution activities because this is what they know how to do (and what they believe they were hired to do). Of course, in established companies with known customers and markets, this focus makes sense. ▪ And even in some start-ups in “existing markets,” where customers and markets are known, it might work. But in a majority of startups, measuring progress against a product launch or revenue plan is simply false progress, since it transpires in a vacuum absent ‫ ترشح في فراغ غائب‬real customer feedback and rife ‫ منتشر‬with assumptions that might be wrong. 8. Prematurely scaling your company based on a presumption of success ▪ The business plan, its revenue forecast, and the product introduction model assume that every step a start-up takes proceeds flawlessly ‫ عائدات ال تشوبه شائبة‬and smoothly to the next. ▪ The model leaves little room for error, learning, iteration ‫تكرار‬, or customer feedback. ▪ Even the most experienced executives are pressured to hire and staff per the plan regardless of progress. This leads to the next startup disaster: premature scaling ‫تحجيم‬ ‫سابق ألوانه‬.  9. Management by crisis, which leads to a death spiral ▪ The consequences of most start-up mistakes begin to show by the time of first customer ship, when sales aren’t happening according to “the plan.” Shortly thereafter, the sales VP is probably terminated as part of the “solution.” ▪ A new sales VP is hired and quickly concludes that the company just didn’t understand its customers or how to sell them. Since the new sales VP was hired to “fix” sales, the marketing department must now respond to a sales manager who believes that whatever was created earlier in the company was wrong. (After all, it got the old VP fired, right?) ▪ Here’s the real problem: No business plan survives first contact with customers. The assumptions in a business plan are simply a series of untested hypotheses. When real results come in, the smart startups pivot or change their business model based on the results. It’s not a crisis, it’s part of the road to success. Think of CAPITER