The Importance of Being Entrepreneurial in Today s Changing University Environment
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1 The Importance of Being Entrepreneurial in Today s Changing University Environment Dr. Michael Morris Witting Chair in Entrepreneurship Syracuse University and Hilton Visiting Chair Iowa State University September 12, 2006
2 The reasonable man (or woman) adapts himself (herself) to the world. The unreasonable man (or woman) persists in adapting the world to himself (herself). Therefore, all progress depends on unreasonable men (and women). -George Bernard Shaw The role of the entrepreneur is to stand up to all to stand up to ridicule. -Tom Peters
3 The E Revolution the rate of start-ups is at an all-time high; innovation has exploded; the glamour of the Fortune 500 has worn off---now it is the INC 500, the FAST 500 and the dot.com collapse changed nothing, it only reminded us that E is not easy.
4 The Entrepreneurial Revolution 1 million new ventures a year 85% of the new jobs New product/service introduction rate New patent issuance rate Rate of wealth creation Women and minorities now lead the pack And it s a global revolution
5 It is not just that the free market has prevailed --it is that the entrepreneur has surmounted the bureaucrat, the corporate functionary, the administrator, the executive looking for a golden parachute, or the exploiter looking to make money without creating value...
6 Entrepreneurs are the heroes---for they are the ones who make the world livable for everyone else: -they are the ones who question, who challenge -they are the ones who take responsibility for change -they are what the human spirit is all about -they are the hope for a better life, for the end of poverty, for the destruction of discrimination--- -they are the quiet revolutionaries for entrepreneurship is the most empowering, the most democratic, the most freedom-creating phenomenon is the history of the human race
7 The Dynamic Entrepreneurship provides the dynamic that drives economies, communities, and organizations Absent entrepreneurship, the result is not a static state---there is decline over time What are the implications, then, of levels of entrepreneurship within ISU?
8 The at-risk university or community is the university or community that is not prepared for the entrepreneurial age It is an age on omnipresent entrepreneurship: more choices, more innovation, more technological advances, more change, more opportunity, more possibilities
9 ARE YOU PREPARED??? Are you opportunity driven? How many did you recognize today? How many will you do anything about? Are you are calculated risk taker, or a seeker of security and stability? Are you comfortable in loose, messy, ambiguous contexts, where it is unclear what s around the next bend? Do you want to be responsible for a being a part of a process, or responsible for making a difference, for results, performance, outcomes
10 Let s consider five basic questions What exactly is entrepreneurship? What does it mean to be entrepreneurial? Who is the entrepreneur? What an entrepreneurial mindset? What s an entrepreneurial university?
11 What exactly is entrepreneurship? Not simply the starting and running of a small business Not a personality cult Not magic Not luck / right place, right time Not a birthright Not genetic
12 Entrepreneurship is A manageable process A philosophy of life A way of thinking A way of acting
13 Entrepreneurship is The process of creating value by bringing together a unique package of resources to exploit an opportunity The pursuit of opportunity without regard to resources currently controlled
14 And social entrepreneurship New and novel mixes of opportunities, challenges, ideas, and resources in pursuit of potentially explosive (non-financial) rewards Rewards: kids vaccinated, souls saved, etc. Rewards are generally public in nature (not appropriated principally by the entrepreneur)
15 The entrepreneurial task -capacity to perceive and act upon opportunities in the environment -ability to create and build something from practically nothing -successful pursuit of opportunity without regard to resources currently controlled
16 A manageable process Identify an opportunity Develop a business concept Assess the required resources Acquire the necessary sources Implement and manage Harvest the venture
17 The Entrepreneurial Experience Ambiguity Stress Excitement Uncertainty Responsibility Self-reliance Adaptation Discipline Change Learning
18 To be entrepreneurial Entrepreneurship Innovativeness Risk-taking Proactiveness
19 Degree Entrepreneurial Intensity Frequency
20 Who Is the Entrepreneur: Common Traits and Characteristics Achievement Motivation Internal Locus of Control Calculated Risk-taking Tolerance of Ambiguity Independence Persistence/Perseverance/Tenacity Self-confidence Dedication/Strong Work Ethic Organizational Skills Opportunistic Adaptability/Versatility Initiative/Energetic Resourcefulness Creativity Perceptiveness Assertiveness Persuasiveness
21 Keys to Success: Behaviors and Skills Instead of Traits Ability to learn Social abilities Adaptation Guerrilla capabilities Growth propensity
22 Cognition: different ways of thinking Cognitive biases (optimism bias, illusion of control, law of small numbers) Entrepreneurial alertness: motivated propensity to formulate an image of the future; to process information differently, challenge assumptions, and see opportunity where others don t Signal detection: tendency to be more concerned with recognizing stimuli that are present than correctly concluding stimuli are not present Prospect theory: tendency to focus more on opportunities for gain they will forfeit if they overlook an opportunity; E s prefer to avoid loss when focusing on gains but seek risk when focusing on losses. Regulatory focus: E s regulate their behavior from more of a promotion (emphasis on accomplishment and multiple options) than a prevention (avoiding negative outcomes, considering fewer options) emphasis.
23 There Are Different Types of E s Personal achiever Supersalesperson Real manager Expert idea generator
24 So what is an entrepreneurial mindset? Passionate pursuit of new opportunities Pursuit of opportunity with enormous discipline and tenacity Prioritizing opportunities and not exhausting oneself or resources by pursuing every one of them Focus on execution and adaptation Tolerance of failure and learning from failure Spreading the entrepreneurial religion to a team Healthy dissatisfaction
25 Healthy dissatisfaction -look around you---when you went through your day today---when you walked or drove over here -what did you see that could be better -what did you see that might have made you say WHAT IF... Let these two magic words guide your life
26 Entrepreneurship as a Lifetime Philosophy Attitude - Can Affect Change - There is a Better Way - Opportunities are Everywhere - Define Innovation and Growth - Failure is Learning Behavior - Pursuing Opportunity - Innovating - Perseverance - Frequency, not once In Your Career - In Start-up - In Fast Growth - In Large Firms - In Social/Public Organizations (Career Life Cycle) In Your Life - In Family - In Church Activities - In Community Involvement - In Personal Relationships - In Managing Personal Finances - In Dealing with Personal Change
27 Creating Environments Why is Austin, TX more entrepreneurial than Syracuse, NY or Des Moines, IA? Why is Florida more entrepreneurial than New York or Iowa? Why is China more entrepreneurial than France? Why is Stanford more entrepreneurial than ISU?
28 Core Factors Required for Entrepreneurship The environment The organizational context The entrepreneurial process The entrepreneur or champion The concept The resources
29 The Entrepreneurial University High degree (innovativeness, risk-taking and proactiveness) of entrepreneurship High frequency (number innovations) of entrepreneurship Different degrees and frequencies depending on the campus unit or activity or role player
30 The Entrepreneurial University Applied to research, teaching, outreach and community engagement, fund-raising, provision of campus services (housing, financial aid, parking, library services), athletics A campus where faculty, staff, administrators, and students are opportunity-driven not resource-constrained Every student an entrepreneur
31 Where to Begin: 11 Key Entrepreneurial Capabilities Opportunity Recognition Opportunity Evaluation Innovation Creative Problem-solving The Entrepreneurial Process Mitigating Risk Thinking and Acting as a Guerrilla Resource Leveraging Managing Ambiguity and Uncertainty Building a Plan for an Innovative Concept Implementation of Change
32 Where to Begin: Elements for Creating an Entrepreneurial Environment Culture Controls Rewards Structure Policies & Procedures Strategy
33 Changing the Metrics Too much focus on how many students start ventures out of school Changes in mindsets and attitudes over time (students, faculty, staff) Faculty innovations (discovery, teaching) Staff innovations Administrative innovations Entrepreneurial impacts on external communities
34 Entrepreneurship is not something you do it is a philosophy that you bring to life. Be the change you wish to see in the world. M. Gandhi
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