INDE 412 - Lecture 1 - Engineering Entrepreneurship PDF

INDE 412 Engineering Entrepreneurship Lecture 1: Introduction to Entrepreneurship Table of Content 1. Definition of Entrepreneurship 2. Types of Entrepreneurship 3. Definition of Entrepreneurs 4. Characteristics of Entrepreneurs 5. Examples of Entrepreneurs 6. Definition...

INDE 412 Engineering Entrepreneurship Lecture 1: Introduction to Entrepreneurship Table of Content 1. Definition of Entrepreneurship 2. Types of Entrepreneurship 3. Definition of Entrepreneurs 4. Characteristics of Entrepreneurs 5. Examples of Entrepreneurs 6. Definition of Startup 7. Types of Startups 8. Examples of Startups 9. Market Sizing Framework 10. TAM SAM SOM Framework 11. Market Sizing Example 12. Top Myths about Entrepreneurship INDE 412 - Engineering Entrepreneurship 2  Definition of Entrepreneurship Entrepreneurship is the process of spotting an opportunity, turning that opportunity into marketable goods or services, and through that process, adding value and wealth to societies Based on Peter Drucker’s* analysis and research, Entrepreneurship is defined as “a systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation” * Peter Drucker was an Austrian-American author, professor, and management consultant whose works helped provide the theoretical and practical groundwork for the modern corporation INDE 412 - Engineering Entrepreneurship 3 Types of Entrepreneurship Intrapreneurship It is the development and support of entrepreneurial activity within major corporations, either via the enhancement of current products or the branding of new ones. Technopreneurship It is a combination of Technology and Entrepreneurship. It is best described as the usage of entrepreneurial skills within the Tech industry. Cultural The goal of cultural entrepreneurship is to develop, produce, and market cultural goods Entrepreneurship and services, to enhance the cultural experience of consumers. Ecopreneurship Also known as Green Entrepreneurship, strives to develop solutions to environmental issues and encourage societal change to prevent the environment from being harmed. Social It can be best described as recognizing social issues and applying entrepreneurial ideas, Entrepreneurship practices, and operations to bring about social change and sustainable solutions. Agripreneurship Agripreneurship or Agribusiness Entrepreneurship evolve around recognizing issues in the agricultural industry and finding their respective solutions INDE 412 - Engineering Entrepreneurship 4 Definition of Entrepreneurs Individuals that spot problems, present solutions, and transform these solutions into products/services, taking on most of the risks and reaping most of the gains, are known as entrepreneurs Although one might be both a "business owner" and an "entrepreneur," there is a difference between the two. Entrepreneurs are distinguished by their entrepreneurial skills and attitudes Entrepreneurs are the core of the Entrepreneurial ecosystem. They are distinguished based on their type of entrepreneurial practice INDE 412 - Engineering Entrepreneurship 5 Characteristics of Entrepreneurs CURIOSITY STRUCTURED ADAPTABILITY DECISIVENESS AWARENESS OF OWN EXPERIMENTATION STRENGTHS AND WEAKNESSES RISK TOLERANCE COMFORTABLE WITH PERSISTENCE INNOVATION LONG-TERM FOCUS FAILURE INDE 412 - Engineering Entrepreneurship 6 Example of Famous Entrepreneurs INDE 412 - Engineering Entrepreneurship 7  Definition of Startups A STARTUP IS A BUSINESS VENTURE THAT AN STARTUPS ARE NEW COMPANIES THAT AIM TO STARTUPS SUFFER HIGH LEVELS OF UNCERTAINTY ENTREPRENEUR LAUNCHES IN ORDER TO FIND, EXPAND SIGNIFICANTLY BEYOND THEIR SOLE AND FAILURE AT FIRST, BUT A SMALL PERCENTAGE OF CREATE, AND VALIDATE A SCALABLE BUSINESS MODEL FOUNDER THEM GO ON TO BECOME SUCCESSFUL AND SIGNIFICANT INDE 412 - Engineering Entrepreneurship 8  Types of Startups Lifestyle Startups Small Business High Growth Intrapreneurship Social Ventures Startups Startups Ventures It is a small business that It is one of the most A startup company, often Intrapreneurship The goal of social is usually owned and common types of known as a high-growth ventures are startups startups is to change and operated by an startups around the startup, is a company that are created within enhance the world. The individual. Usually, world. Such startups that has a repeatable and larger corporations main goal of these entrepreneurs have such include individuals who scalable business plan aiming at developing startups is to provide businesses as form of a work for themselves new and innovative sustainable solutions for hobby and aspire to instead of traditional solutions in form of social issues in our provide goods or services large corporations. products or services societies that improve the quality of life for customers in their market. INDE 412 - Engineering Entrepreneurship 9 Example of Famous Startups INDE 412 - Engineering Entrepreneurship 10 Market Sizing Framework Total Addressable Estimating the number of consumers of a specific product or service is the standard definition of market sizing market (TAM) There are 3 main categories of the market sizing framework: Total Addressable market (TAM) Serviceable Available Serviceable Available Market (SAM) Market (SAM) Serviceable Obtained Market (SOM) People who wish to persuade investors, and to show them that the market they want to enter is large enough to Serviceable ensure a good Return on Investment (ROI), rely on the TAM Obtained Market SAM SOM model (SOM) INDE 412 - Engineering Entrepreneurship 11 TAM SAM SOM Framework Total Addressable It represents the entire potential market independently from your ability to reach and market (TAM) serve Serviceable Available It represents the people you can actually serve Market (SAM) and reach with your business Serviceable It represents the share and portion of the Obtained Market market that you can capture (SOM) INDE 412 - Engineering Entrepreneurship 12 Example Industry INDE 412 - Engineering Entrepreneurship 13 Top Myths about Entrepreneurship o Entrepreneurs are born that way o The only requirement is a good idea o Starting a new business guarantees freedom o Launching a company quickly leads to wealth o Only money motivates entrepreneurs o There’s a secret, “silver bullet” key to success INDE 412 - Engineering Entrepreneurship 14