Entrepreneurship WS 2024/2025 Lecture Notes PDF

Introduction to Entrepreneurship WS 2024/2025 Dr. Dinah Murad med2market – scientific marketing consulting 1   Plan for the Semester Date Topic 15/10/24 Introduction and Business Ideas 29/10/...

Introduction to Entrepreneurship WS 2024/2025 Dr. Dinah Murad med2market – scientific marketing consulting 1   Plan for the Semester Date Topic 15/10/24 Introduction and Business Ideas 29/10/24 Business Models and Value Proposition 12/11/24 Market Research and Validation 26/11/24 Business Planning and Strategy 10/12/24 Financial Planning and Fundraising 7/1/25 Operations and Execution 21/1/25 Innovation, Risk Management, and Scaling cw 6 (2025) Exam (60 minutes, multiple choice) med2market – scientific marketing consulting 2  Why are you here today? www.mentimeter.com 8724 8341 https://www.mentimeter.com/app/presentation/n/ algmh8n4qxb7pj3zu8k455hgousy4iit/present?question=tzazqqirc9xn med2market – scientific marketing consulting 3  15/10/24 Agenda Introduction and Business Ideas Introduction Case studies Problem Identification and Idea Generation Problem-Solving Challenge It’s not about ideas - it’s about making ideas happen Recap and Preview of Business Planning med2market – scientific marketing consulting 4        15/10/24 Agenda Introduction and Business Ideas Introduction Case studies Problem Identification and Idea Generation Problem-Solving Challenge It’s not about ideas - it’s about making ideas happen Recap and Preview of Business Planning med2market – scientific marketing consulting 5        Before we start…. I am… Dinah Diploma in Chemistry, Ph. D. in Microbiology 24 years experience in Pharma, Healthcare and fast moving consumer goods Entrepreneur since 2011 Trainer and Coach in Entrepreneurship since 2015 med2market – scientific marketing consulting 6  Why are entrepreneurs important? Innovation: new products, services, or technologies challenging the status quo and driving industries forward. Job Creation: New businesses need people to run and support them, leading to job creation. Entrepreneurs help expand employment opportunities and stimulate local and global economies by growing companies that employ workers at various levels. Economic Growth: Entrepreneurs contribute to economic development by starting new businesses, increasing productivity, and improving resource efficiency. Boost GDP and promote overall economic health by introducing competitive dynamics in the market. Solving Problems: Addressing of real-world problems with creative solutions in technology, healthcare, or sustainability, solve societal challenges that existing systems may not address effectively. Social Change: Many entrepreneurs focus on social impact, creating products or services that improve quality of life, increase access to resources, or promote equity and environmental sustainability. Inspiration and Leadership: Role models for others, inspiring future innovators and leaders. Success stories often motivate others to pursue their own entrepreneurial ventures, creating a ripple effect of innovation and ambition. med2market – scientific marketing consulting 7        In short, entrepreneurs are essential to driving progress, advancing industries, and addressing societal challenges in creative and impactful ways. med2market – scientific marketing consulting 8  Innovation an Economic growth Entrepreneurs are essential drivers of innovation and economic growth. By introducing new technologies and business models, they increase productivity and create competitive pressures in markets. A detailed review by the National Bureau of Economic Research (NBER) highlights how innovation across different sectors contributes to overall economic growth by enhancing productivity and market dynamics. The findings show that entrepreneurial activity significantly boosts economic development, especially in dynamic sectors like technology. https://www.nber.org/ med2market – scientific marketing consulting 9  Job Creation and Competition Research from IZA World of Labor outlines the profound impact entrepreneurs have on job creation, especially in the short term. New businesses foster competition and can push established firms to innovate or increase their efficiency. While there can be temporary job losses due to market disruption, the long-term effect on employment and productivity is overwhelmingly positive https://wol.iza.org/articles/entrepreneurs-and-their-impact- on-jobs-and-economic-growth/long med2market – scientific marketing consulting 10  Social Impact and Structural Change Entrepreneurs often create new industries or transform existing ones, leading to significant structural changes in the economy. As described by Alexander Kritikos, entrepreneurship encourages "creative destruction," a process where outdated industries are replaced by innovative ventures. This transformation is crucial for maintaining economic competitiveness and long-term growth https://wol.iza.org/articles/entrepreneurs-and-their-impact- on-jobs-and-economic-growth/long med2market – scientific marketing consulting 11  Entrepreneurship and Digitalization A review from Journal of Innovation and Entrepreneurship discusses how digital innovation is a powerful enabler for entrepreneurship, boosting business scalability and efficiency. However, the rapid pace of technological change also presents challenges, particularly for smaller ventures, underlining the need for regulatory and financial support to sustain innovation-driven entrepreneurship Kreiterling, C. Digital innovation and entrepreneurship: a review of challenges in competitive markets. J Innov Entrep 12, 49 (2023). https://doi.org/10.1186/s13731-023-00320-0 med2market – scientific marketing consulting 12  "How many of you have thought about starting your own business?" „Have you worked on your business idea already?“ „How did you succeed?“ med2market – scientific marketing consulting 13  What where the reasons you haven’t started working on your idea? med2market – scientific marketing consulting 14  The reasons… created by DALL-E med2market – scientific marketing consulting 15  The reasons Reasons for Not Starting: Reasons for Stopping: Lack of Funding: By far, the most cited reason. Many feel they lack the Running Out of Money: A lack of ongoing funding is often the capital needed to launch their idea. According to a Zapier survey, 63% of reason why many entrepreneurs abandon their ventures after potential entrepreneurs identified this as the biggest barrier (https:// starting (https://calbizjournal.com/why-aspiring-entrepreneurs- zapier.com/blog/why-americans-arent-starting-businesses). never-get-their-business-ideas-off-the-ground) (https:// www.under30ceo.com/why-most-people-abandon-their-business- ideas). Fear of Failure: Many aspiring entrepreneurs are afraid that their idea might fail, leading to financial losses or reputational damage. This fear of failure was cited by 33% of respondents in the same study (https:// Market Demand or Competition: Businesses may stop if they realize zapier.com/blog/why-americans-arent-starting-businesses). there isn’t sufficient demand for their product or if the competition becomes overwhelming (https://www.under30ceo.com/why-most- people-abandon-their-business-ideas). Uncertainty About How to Get Started: A significant number (39%) feel unsure about the initial steps required to start a business (https:// zapier.com/blog/why-americans-arent-starting-businesses). Burnout and Stress: The responsibility of running a business can lead to high levels of stress, and burnout is a common reason people abandon their efforts (https://www.liveplan.com/blog/13- Lack of Time: Some would-be entrepreneurs find it difficult to dedicate reasons-people-dont-start-businesses) (https:// time to a new venture alongside existing responsibilities (https:// www.under30ceo.com/why-most-people-abandon-their-business- zapier.com/blog/why-americans-arent-starting-businesses) (https:// ideas). www.under30ceo.com/why-most-people-abandon-their-business-ideas). Team or Resource Problems: Internal issues, such as problems with No Business Knowledge: Not knowing how to run or structure a business the team or not having the right skills, can lead to a venture being often deters people from starting at all (https://calbizjournal.com/why- dropped (https://calbizjournal.com/why-aspiring-entrepreneurs- aspiring-entrepreneurs-never-get-their-business-ideas-off-the-ground med2market – scientific marketing consulting 16           What do you need to get started? You need an idea. An idea you really believe in and want to realize. However, stay open to change the idea during the process. An idea is really worth nothing without its implementation. This Playbook will help you in this process. It‘s good to have a team. Of course you can do it all by yourself, but having a team with different skillsets will make it much easier for you and make your idea grow faster. med2market – scientific marketing consulting 17  But what can I do? med2market – scientific marketing consulting 18  What is the right question? med2market – scientific marketing consulting 19 med2market – scientific marketing consulting 20 created by DALL-E  The golden circle - start with why https://simonsinek.com/books/start-with-why/ med2market – scientific marketing consulting 21  TED Talk Simon Sinek https://www.ted.com/talks/ simon_sinek_how_great_leaders_inspire_action? subtitle=en&lng=de&geo=de med2market – scientific marketing consulting 22  „People don’t buy what you do - they buy why you’re doing it“ Simon Sinek med2market – scientific marketing consulting 23  The entrepreneur created by DALL-E med2market – scientific marketing consulting 24  People you know Elon Musk – Founder of Tesla, SpaceX, and Neuralink. Known for his groundbreaking innovations in the automotive, space, and technology industries. Oprah Winfrey – Media mogul and founder of the Oprah Winfrey Network (OWN). She built a media empire and became an in uential gure in television and publishing. Je Bezos – Founder of Amazon. Revolutionized e-commerce and built one of the largest technology companies in the world. Sara Blakely – Founder of Spanx. Developed a shapewear product and created a successful fashion empire from an innovative idea. Steve Jobs – Co-founder of Apple. Transformed the technology and consumer electronics industry with products like the iPhone and the Mac. Richard Branson – Founder of Virgin Group. A versatile entrepreneur with ventures in music, travel, and telecommunications. Sheryl Sandberg – Former COO of Facebook (now Meta), author, and founder of LeanIn.org, advocating for women in leadership roles. Jack Ma – Founder of Alibaba. A pioneer in e-commerce and the internet industry in China, with a global impact on trade. Estée Lauder – Founder of the eponymous cosmetics brand. Built one of the most recognized beauty companies worldwide. med2market – scientific marketing consulting 25 fi ff fl  The personality created by DALL-E med2market – scientific marketing consulting 26  Key entrepreneurial skills Leadership – The ability to inspire and manage teams, set a vision, and guide the company toward its goals. Risk-Taking – Willingness to take calculated risks and make bold decisions, even in uncertain situations. Innovation – Creativity and the ability to develop new ideas, products, or processes that solve problems or meet market needs. Problem-Solving – Skill in identifying challenges and finding effective, practical solutions. Adaptability – Flexibility in responding to changing environments, market trends, and unforeseen circumstances. Resilience – The capacity to recover from setbacks, failures, and difficulties while maintaining focus and motivation. Networking – Building and maintaining strong relationships with clients, partners, investors, and other stakeholders to grow the business. Financial Management – Understanding budgeting, investment, cash flow, and financial decision-making to ensure business stability. Customer-Centricity – Prioritizing customer needs, listening to feedback, and delivering exceptional service or products to ensure satisfaction. Self-Motivation – The drive to take initiative, work independently, and stay focused on long-term goals without constant supervision. med2market – scientific marketing consulting 27            15/10/24 Agenda Introduction and Business Ideas Introduction Case studies Problem Identification and Idea Generation Problem-Solving Challenge It’s not about ideas - it’s about making ideas happen Recap and Preview of Business Planning med2market – scientific marketing consulting 28        Case studies med2market – scientific marketing consulting 29  What is so interesting about airbnb? Founded: 2010 Success: Stripe established itself as a payment processing platform, helping companies like Shopify and Instacart integrate seamless payment solutions. Focusing on being developer-friendly and scaling globally, Stripe became one of the most valuable start-ups in the world. Key takeaways: Platform strategy Focusing on developers as users Expanding into international markets Osterwalder, A., Pigneur, Y., & Bernarda, G. (2014). Value Proposition Design: How to Create Products and Services Customers Want. John Wiley & Sons. Airbnb's Journey to a $31 Billion Valuation: https://hbr.org/2017/04/airbnbs-journey-to-a-31-billion-valuation med2market – scientific marketing consulting 30       What is so interesting about zoom? Founded: 2011 Success: Zoom saw exponential growth during the COVID-19 pandemic. With its ease of use, reliability, and scalability, Zoom became synonymous with video conferencing, outperforming established players like Skype. Key takeaways: Timing and product-market fit User-friendliness and scalability Adapting to sudden market shifts Li, R. (2021). Zoom for Dummies. Wiley. The Unstoppable Rise of Zoom: https://hbr.org/2020/05/the-unstoppable-rise-of-zoom med2market – scientific marketing consulting 31       What is so interesting about Uber? Founded: 2009 Success: Uber revolutionized the transportation industry by offering a convenient, app-based ride-hailing service. It quickly expanded across the globe, disrupting traditional taxi services. Despite facing legal and regulatory challenges, Uber's model of on-demand transportation shaped urban mobility. Key takeaways: Stone, B. (2017). The Upstarts: How Uber, Airbnb, and the Killer Companies of the New Silicon Valley Are Changing the World. Little, Brown and Company. Disruption of traditional industries How Uber Survived The Early Challenges: https://hbr.org/2020/07/how- uber-survived-the-early-challenges-of-ride-sharing Scaling a platform business globally Navigating legal and regulatory issues med2market – scientific marketing consulting 32        The Airbnb story… https://www.youtube.com/watch? v=vEcACMyz3Rc med2market – scientific marketing consulting 33  15/10/24 Agenda Introduction and Business Ideas Introduction Case studies Problem Identification and Idea Generation Problem-Solving Challenge It’s not about ideas - it’s about making ideas happen Recap and Preview of Business Planning med2market – scientific marketing consulting 34        Let’s get started - with a problem! 1 2 3 4 5 Problem Product Market & Traction Business Solution Fit Market Fit competition Model Fit Who are your first How could your How large and How do you What is your customers? Which product or service attractive is the achieve real business model? problem do you look like? For market you want to customer demand? What are your solve for them and which customers enter? Who are Which channels do sources of income is your idea really in which market? your competitors? you use? and cost structure? the best solution? med2market – scientific marketing consulting 35  More than one way to solve a problem https:// www.youtube.com/ watch?v=dO5XYp-- joI&pp=ygUMZG9ua2 V5IGZlbmNl med2market – scientific marketing consulting 36  How do you find out? Think! Can you solve the problem already? own experience / gut feeling If yes: Ask people! Research! with how much effort? Do you have a problem? who solves the problem? Does it bother you? (or how much) do you have a „workaround“? What is your problem? Why does it bother you? med2market – scientific marketing consulting 37            If you think you have a solution for a problem - Customer interviews Just making it very clear: it is not a linear process. You are in a constant search process and if you change course or even realise that your idea has no potential after all, you have gained a lot from the insights! validated Idea business model med2market – scientific marketing consulting 38  Get ready …. to leave your comfort zone …. to speak with as many strangers as possible …. change your idea if necessary …. work under great uncertainties med2market – scientific marketing consulting 39  "Can you think of problems you’ve experienced recently that could be solved with a new idea?" med2market – scientific marketing consulting 40  15/10/24 Agenda Introduction and Business Ideas Introduction Case studies Problem Identification and Idea Generation Problem-Solving Challenge It’s not about ideas - it’s about making ideas happen Recap and Preview of Business Planning med2market – scientific marketing consulting 41        What’s the goal of this challenge? You have a clear definition of your first potential customer. The target group has a specific problem that you can solve. created by DALL-E You can see if your idea is really the best solution to this problem. med2market – scientific marketing consulting 42     Your turn! 1. Prepare your interview guide or template. 2. Think of places where you can meet your potential customers. For example at an event, a trade fair or on the street. 3. Conduct at least 2 interviews! The more, the merrier in real life. Don‘t take more then 5 Minutes for each interview (today). In real life 15 minutes. med2market – scientific marketing consulting 43  When you are asking peolpe… Insights: Book recommendation The book "The Mom Test: How to talk to customers and learn if your business is a good idea when everyone is lying to you" by Rob Fitzpatrick, makes one essential thing clear: Your family or friends lie because they don't want to hurt you. Who you ask and how you phrase your questions play a very important role in an interview. The real challenge here is to find out the truth (even if you don’t like to hear it sometimes). https://www.amazon.de/Mom-Test-customers-business-everyone med2market – scientific marketing consulting 44  „It isn’t the consumer’s job to know what they want“ Steve Jobs med2market – scientific marketing consulting 45  15/10/24 Agenda Introduction and Business Ideas Introduction Case studies Problem Identification and Idea Generation Problem-Solving Challenge It’s not about ideas - it’s about making ideas happen Recap and Preview of Business Planning med2market – scientific marketing consulting 46        An Idea (created by AI): Foodsnap App FoodSnap is a startup idea developed by a group of students aiming to reduce food waste in households. They noticed that many people throw away food because they forget what they already have in their fridge or are unsure if something is still good to eat. The app helps users organize their groceries and make better use of leftover. created by DALL-E med2market – scientific marketing consulting 47  An Idea (created by AI): Foodsnap App FoodSnap App Features: Food Scanner: Users scan the barcode of groceries when they shop or manually enter what they have at home. The app stores the expiration date and sends reminders when something is about to expire. Leftover Recipes: Based on the groceries at home, the app suggests easy recipes to help use leftovers. created by DALL-E Community Sharing: Users can share recipes and tips for reducing food waste in a community feature. Food Donation Alerts: The app shows where nearby organizations accept food donations, in case something can’t be used. med2market – scientific marketing consulting 48  An Idea (created by AI): Foodsnap App FoodSnap App Features: Food Scanner: Users scan the barcode of groceries when they shop or manually enter what they have at home. The app stores the expiration date and sends reminders when something is about to expire. Leftover Recipes: Based on the groceries at home, the app suggests easy recipes to help use leftovers. created by DALL-E Community Sharing: Users can share recipes and tips for reducing food waste in a community feature. Food Donation Alerts: The app shows where nearby organizations accept food donations, in case something can’t be used. med2market – scientific marketing consulting 49  Discussion - this is how to make things happen How can FoodSnap ensure the app is simple and accessible for a wide audience? What are potential revenue models for FoodSnap (e.g., premium features, partnerships with supermarkets)? How can FoodSnap motivate users to regularly use the app instead of manually managing their food? Which marketing strategies would be best to raise awareness of FoodSnap and encourage users to reduce food waste? med2market – scientific marketing consulting 50      15/10/24 Agenda Introduction and Business Ideas Introduction Case studies Problem Identification and Idea Generation Problem-Solving Challenge It’s not about ideas - it’s about making ideas happen Recap and Preview of Business Planning med2market – scientific marketing consulting 51        Take Home Messages Start with Why: Customers don’t buy what you do; they buy why you do it. Your "Why" is the core of your business and drives both you and your customers. No Problem-Solving - No Business: Entrepreneurship is about solving real problems. Identifying and validating the problem is crucial before pursuing a business idea. Execution is Key: Ideas are not enough—execution matters most. Focus on turning your idea into reality. Customer Discovery: Conduct interviews with potential customers to validate both the problem and your solution. Their feedback shapes your business model. Achieve Product-Market Fit: Ensure that your product or service is the best solution for your target customers. Product-market fit is vital for success. Be Ready for Change: Flexibility is important. Be open to modifying your idea based on feedback and new market information. Diverse Teams Accelerate Success: Collaboration within a team of diverse skills can improve the development and execution of your business idea. Innovation Drives Economic Growth: Entrepreneurs contribute significantly to innovation, driving productivity and economic growth across industries. Risk and Resilience: Entrepreneurs must be willing to take risks and show resilience in overcoming failures and setbacks. Leadership and Vision: Strong leadership skills are essential for setting a vision, guiding a team, and maintaining focus on long-term business goals. med2market – scientific marketing consulting 52            Next time - 29.10.2024 Business Models and Value Proposition Introduction to business models (e.g., the Business Model Canvas) Defining your value proposition: What makes your business unique? Revenue models and cost structures Analyzing successful business models across industries med2market – scientific marketing consulting 53     