IT Entrepreneurs
Kanokwan Choketaworn
Michael King
Jeffery Schafers
Fletcher Sprague
Objectives
Entrepreneurship in a declining
economy
Definition of Entrepreneur
Characteristics of IT entrepreneur
Statistics about entrepreneurs
Source (38) (33) (34) (35)
2
Objectives
5 Stages of Entrepreneurship(How to
start business)
Face to Face with Entrepreneurs
Why IT and Entrepreneurship is
important
Recommend book
Source (36) (37) (39) (40)
3
Who is the father of “modern management”?
Source (18)
4
– The Father of “Modern Management”
“Innovation is the specific instrument of entrepreneurship. The
act that endows resources with a new capacity to create
wealth.”
Seven Sources for Innovative Opportunity:
(Within the enterprise/industry)
1. The unexpected – the unexpected success, failure, or an
unexpected outside event.
2. The incongruity – The difference between reality and
how it should be
3. Innovation based on new processes that are necessary
4. Changes in an industry structure or market structure
(Changes outside of the enterprise/industry)
5. Demographics
6. Changes in perceptions, moods, meanings
7. New knowledge coming from science or theory
Source (44) (45)
5
Top 10 Industries to Start and Grow a Business
1. Internet services ,data processing and other information
services
2. Computer systems and related services
3. Software
4. Employment services
5. Management ,science ,and technical consulting
6. Home health care
7. Personal financial advisory services
8. Childcare services
9. Art ,entertainment, and recreation
10. Motion picture/ video
Source (30)
6
Source (69)
Small Business in the USA
Survival Rates
Small Business Expenditures:
Information Technology ............$38 billion
Telecommunications.................$25 billion
Human Resource Services .......$23 billion
Shipping/Mailing......................$17 billion
SOHOs - small-office/home-offices with less than 10 employees
130 million U.S. workers are employed by small businesses.
Small businesses produce 13 to 14 times more patents per employee than large firms.
Entrepreneurship in a Declining
Economy
8
Entrepreneurial culture, regional
innovativeness and economic growth
•
•
•
•
•
•
Journal of Evolutionary Economics
Published in 2007
Author: Sjoerd Beugelsdijk
Data dates range from 1950-2003
Much data collected in 1990
Studies the relationship between entrepreneurial
culture, regional rates of innovation and regional
economic growth
• Sample of 54 European regions
Source (26)
9
Parameters
•
•
Developed a measure of entrepreneurial culture based
on comparing amount of entrepreneurs to nonentrepreneurs.
Innovativeness based on to indicators which were both
based on patents
1.
2.
•
Source (26)
Patent Density
Average number of patents per capita
Used five characteristics to measure personalities of
entrepreneurs.
10
Interesting Inclusions
• High levels of entrepreneurship in the U.S. are
attributed to such values such as freedom,
independence, achievement, individualism and
materialism.
• Hofstede’s Cultural Dimensions
– relate Individualism\Collectivism to corporate
entrepreneurship
– Individualism linked to the willingness of people to violate
norms and their level of achievement motivation.
– Entrepreneurship declines the more collectivism is
emphasized
Source (26) (54)
11
Key Findings
• Entrepreneurial culture is positively correlated
with regional economic growth
• Innovativeness is positively correlated with
economic growth
• Entrepreneurial culture is positively correlated
with regional innovativeness
• Regions that have experienced high economic
growth rates have a culture that can be
characterized as entrepreneurial.
Source (26)
12
Source (26)
13
A Real World Example
• Canada was in a recession in 1981-1982
• Canada could no longer depend on the sale of
unprocessed natural resources.
• Large companies began shrinking payrolls
• Dynamic global markets and consumers were
demanding innovation and new ways of doing
business.
• Workers and opinion leaders realized that
entrepreneurship was the gateway to innovation and
job creation.
Source (27)
14
An Entrepreneurial Revolution
• Through innovation, new market opportunities
and more efficient ways of doing business,
entrepreneurs helped the Canadian economy
adapt to tough times and start to grow.
• During the 1980’s Canada’s culture shifted from
entitlement seeking to one which strived to
create value for others.
• The revolution was fuelled by 10 major factors.
Source (27)
15
What Fuelled the Revolution?
People
Deregulation
Source (27)
Post-war generation, boundless confidence
Busting up monopolies, cutting taxes
Consumers
Growing cultural diversity
Outsourcing
Focus on core competencies
Technology
Making business easier\faster, cost reductions, Web 2.0
Social Change
Environmentalism, two-income households
World Markets
Declining global trade barriers, new markets
Immigration
Canada was a refuge for many = new ideas
New business
processes
Reinvention, Business Intelligence (BI)
The age of
imagination
Era of Disney, Star Trek, Apollo
16
The Growing Trend
• A survey from PartnerUp.com
• Survey conducted between October 10 through
November 2, 2007
• A random survey taken inside of the U.S. of 862 people in
industries such as residential real estate, mortgage, or
financials and have been working in the industries in the
previous 6 months
• PartnerUp.com is a social networking website used by
entrepreneurs, startups, and SME’s. PartnerUp.com helps
entrepreneurs locate partners, network, receive advice
and access other related resources.
Source (28)
17
The Growing Trend
• The survey showed that the professionals who left
their jobs in these industries:
• 56% are seriously considering starting their own
business
• 13% are already on their way
• Web-based companies and other kinds technology
companies are the most favored.
• “The credit crunch has sparked entrepreneurship,
but more importantly, entrepreneurship is sparking
economic expansion,” Dane Fox, VP of Business
Source (28) Development, PartnerUp.com
18
Definition of Entrepreneur
19
What is Entrepreneurship?
“Entrepreneurship is a human,creative act that builds
something of value from practically nothing. It is the pursuit of
opportunity regardless of the resources, or lack of resources,at
hand. It requires a vision and the passion and commitment to lead
others in the pursuit of that vision. It also requires a willingness to
take calculated risks.” Jeffrey Timmons
“Entrepreneurship not only in terms of businesses but also
as the presence of “initiative, imagination, flexibility, creativity, a
willingness to think conceptually, and the capacity to see change as
an opportunity.” William Bygrave at the Babson School
“Visionary entrepreneurs [that] develop innovations, create
jobs, and contribute to a more vibrant national and global economy”.
The Kauffman Foundation’s version
Source (1) (2)
20
Types of Entrepreneurial
Activity
1.New concept/new business
• The classic entrepreneur is one who develops a new product or a
new idea and builds a business around the new concept. (Video1)
2.Existing concept/new business
• There are also individuals who start new businesses based on old
concepts.
3.Exiting concept/existing business
• Even less innovative is the person who buys an existing business
without many plans to change the company operations.
Source (2)
21
Characteristics of Entrepreneurs
22
Should you be concerned if you do not
fit this stereotype?
About 35 to
45 years old
Bachelor's or
master's
degree in
engineering
Born in the
Midwest
Only child
Male
Protestant
20 or 25
years
ago
Father owns
a hardware
store
Source : www.morebusiness.com in 1999 by William J. Stolze.
Source (3)
23
A desire to achieve
Self-confident
Initiative
Creative
Results-oriented
Management of Risk
Optimism
Listen & Communicate well
Source (2) (40) (41) (42) (46)
24
External Factors that affect Entrepreneurship
• Financial
• Government Policies
• Government Programs
The extent to which government policies encourage new and growing
firms
presence of programs and initiatives
• Education & Training
training in creating or managing small, new, or growing business
• R&D Transfer
national research and development will lead to new commercial
opportunities
• Commercial, Legal
Infrastructure
• Internal Market Openness
Source (47)
The availability of financial resources
presence of commercial, accounting, and other legal services
commercial arrangements undergo constant change as new and
growing firms compete
• Access to Physical
Infrastructure
Ease of access communication, utilities, transportation, land or space
• Cultural, Social Norms
existing social and cultural norms encourage, or do not discourage,
individual actions that may lead to new ways of conducting business
25
Differing Motivations
Survival entrepreneurs
• resort to creating enterprises because there are few other options
Lifestyle entrepreneurs
• choose self-employment to pursue personal goals
Growth entrepreneurs
• motivated to grow their businesses to create wealth and jobs in their
community
Serial entrepreneurs
• over their lifetimes will create several businesses
Source (1)
26
Statistics about entrepreneurs
27
Percentage of Total Entrepreneurial Activity (TEA)
•On average, between 2003 and 2006, 11.3% of Americans, who are at least 18,
were setting up their own business’s either alone or with another person, or
have already started a business, but haven’t began paying salaries.
•The Global Entrepreneurship Monitor (GEM) publishes reports yearly showing
global levels of entrepreneurship using a survey of 55 countries.
28
Source (48)
The Global Entrepreneurship Monitor (GEM) measures the percentage of
entrepreneurial activity from only a country’s adult population.
Source: Global Entrepreneurship Monitor 2004
29
Source (49)
Source (50)
30
5 Stages of Entrepreneurship
(Starting a Business)
31
Stages of Entrepreneurship
1.Discovery
• generates ideas, recognizes opportunities, and determines the feasibility of
ideas, markets, and ventures
2.Concept development
• plans the venture, identifies needed resources using a business plan, and
identifies strategies for penetrating markets or protecting intellectual
property
3.Resource
• acquires the financial, human, and capital resources needed for the
venture start-up
4.Actualization
• operates the venture and utilizes resources to achieve its goals and
objectives
5.Harvesting
• decides on the venture’s growth, development, or even demise
Source (1)
32
Source:8 pgs in survey and 12 of follow-up phone calls with Inc.500 CEOs
Source (5)
33
“To Be, or Not to Be,…”
Advantage
Disadvantage
Autonomy : Independence and
Personal Sacrifices : no time for
freedom to make decision
recreation, for family life, or personal
reflection. High level of stress
Challenge of a Start-up : feeling
of achievement
Burden of Responsibility/jack of
all trades : “lonely at the top”
Financial Control : financial
Little Margin for Error : often
independence , more control over
financial situation
make decision to prove to be
unprofitable
Source (1)(56)
34
Step 3 : Resource
How much capital is required and
where does it come from?
35
Amount you actual need
Source:8 pgs in survey and 12 of follow-up phone calls with Inc.500 CEOs
Source (5)
36
Where did the money come from?
Source:8 pgs in survey and 12 of follow-up phone calls with Inc.500 CEOs
Source (5)
37
Face to Face with
Entrepreneurship
38
Source
39
Source (6)
40
Source
41
Source (55)
42
Source (19)
43
Starting a business in Thailand
1.Sole
Propriet
orships
Type of
business
2.Partner
ships
• Limited partnerships.
3.Limited
Company
Source (20)
• Unregistered ordinary
partnerships
• Registered ordinary
partnerships.
• Private Limited
Companies
• Public Limited Companies
44
Setting up a limited company
1.Corporate name
reservation
6.Value Added Tax
registration
2.File a memorandum
of association
&Government Fee
5.Corporate
Income Tax
registration:
Department of
Revenue
3.Hold the
statutory meeting
of all shareholders
4.Registration
• Company registration fees are 500 baht per 100,000 baht(2,500 USD) of
registered capital. The minimum fee is 5,000 baht; the maximum is 250,000(
baht.
•Take 1 months for this process
Source (20)
45
% of foreign direct investment in Asia
at July 4,2008
Vietnam, 4%
South Korea
5%
Thailand
&Malaysia&
Taiwan 1%
China&
Japan 27%
Hong Kong
10%
Singapore
10%
India 11%
Source : More than 200 international company executives participated in the survey
conducted by financial advisory firm Ernst & Young and the Japan External Trade
Organization.
Source (21)
46
The Constraints on Business in Thailand
Compared with World
Source : Grant Thomton International Business Report 2007 examines the attitude,
plans and trends of 7,200 businesses in 32 countries across six continents
Source (22)
47
 Name :Rittichai Boonplang
 Birth: 16 June 1981
 Place of Birth : Chiangrai ,
Thailand
 Education: Bachelor’s degree in
the faculty of Engineer from
Chulalongkorn University ,
Thailand
 Work experience :
 A Computer Engineer at
Settrade.com
 Chief Operating Officer of First
Vision Advantage Company
Source (23) (52)
48
Rittichai’s Background
• Dominant personality trait: his father
• Idol: Bill Gates “We've really achieved the ideal of what I wanted
Microsoft to become.”
• Customer base: largest financial application service provider in
the market
• The idea for business: the Mobile Application Competition in
2002
• Motivations\Inspirations: no Application in Thailand
• Company unique: concentrated in mobile application
Source (24) (52)
49
Source (7)
50
Source (25)
51
 Daniel Errante
 Born: March 27, 1986
 Started studying Business Management at the
University of Missouri – Columbia, now he is
finishing the degree here at UMSL.
 Has been developing software and websites for
about 10 years now with his inspiration coming
from his curiosity of how computer games were
made.
Source (51)
52
Background
 Entrepreneurship is in the Errante’s family blood.
 Family history is thus one of the main reasons why he
chose to start a business at a young age.
 Always pictured himself in a leadership role
 Believes that he can make good decisions when it comes
to the future of a business, and he can predict future
business trends.
 Role Models: Multiple family members and the CEO of
Apple Computer who is?...
Source (51)
53
Source (53)
54
In the beginning…
 “It's kind of a funny story, actually. Myself, a seasoned graphic
designer meets a young hot shot programmer on a freelance
project. Now you know programmers and designers are like
oil and water, right? The never ending battle between right
and left brain...but this partnership was to be different.”
-Co-Founder, Graphic Leftovers
 The designer had over 250GB of unused artwork from
previous projects.
 Daniel’s technical expertise coupled with the designer’s
overflowing repertoire of artwork spawned the company.
 The two formed a partnership
Source (51)(57)
55
Graphic Leftovers is an online marketplace where professional
designers and illustrators sell or donate their unused, unsold or left
over artwork.
Businesses\Consumers then can browse the offerings which range
from digital backgrounds for you WordPress blogs or MySpace
pages to logos for a new business.
Daniel said, “As I developed more and more clients, they seemed to
be asking for the same types of upgrades and additions to their
websites, so I thought I would start my own company that would
develop these “widgets” as I would call them, to add plug and play
components to their existing websites.”
Source (51)
56
Daniel’s 4 Step Process to beginning
an Internet-based Company
1.Find a niche product or service that you would
like to sell
2.Obtain necessary software to support website,
try to automate everything
3.Advertise to target demographic
4.Provide customer service, work out glitches
Source (51)
57
Facebook – History & Origin
• Created by Dustin Moskovitz, Chris Hughes,
and Mark Zuckerberg
• Initially created for Harvard students
• Quickly spread across United States
Facebook’s vision is to “Change the world”
Source
58
Facebook – How It Works
•
•
•
•
First, provide basic information
Provide frequently used e-mail address
Select profile picture
85% of students (at registered universities) have
Facebook account
– 60% of these students login daily
• 7th most visited website in United States
• Easily stay in contact with old friends
Source
59
Source (58)(59)
60
Facebook Highlights – Differentiator on
Privacy
MySpace - Users have unlimited access to other
user’s profiles
– Zero privacy
– Legal issues
Facebook – Customizable privacy settings
– Restrictive settings to ensure privacy
– Employers, parents, and strangers
Source
61
Facebook Highlights –Political Process
•
•
•
•
•
Source
Major candidates
Easily disseminate information
Easily raise awareness
Key to capturing 18-26 vote
Obama successful
62
Facebook – The Company &
Zuckerberg
• Based in Palo Alto, Cal
• (Zuckerberg) Raised over $37.7 million to
support Facebook development
• Very horizontal structure (Zuckerberg codes
daily with employees) with 400 employees
• 40 Billion page views a month & growing
• Agreement with Microsoft
– Exclusive advertising
Source
63
Facebook – The Company Model Rethought
• Offered FB platform to new developers
• Companies create programs which consumers value
• “That’s a big deal because it means that all
developers have a new way of doing business if they
choose to take advantage of it. There are whole
companies that are forming whose only product is a
Facebook Platform application … it’s also really
exciting to our users because it means that a whole
new variety of services are going to be made
available.” – Time Magazine
Source
64
Facebook – The Company Model Rethought
Google
• Search millions of websites
for specific information
• Advanced algorithms for
searching
• Sponsored Ads
Facebook
• Easily refer friends to
information based on
known likes/dislikes
• Personal quality
“Facebook is a threat to
Google”
-Forrester Research
Source
65
Why IT and Entrepreneurship are
Important
66
Consequences for having a presence in
Internet(SME)(firms having their own Internet Domain)
85%
90%
50%
the Internet an important or very important
the Internet important to reinforce corporate image
the Internet as a means of assistance to Consumers & Users
Source: Created by Maria J. Nieto&Zulima Fernandezusing data from SBS 2001–2002
Source (29)
67
Recommended Readings
68
What Business Should I Start?
Step 1: Discover your E-type
Step 2: Define your Aspiration
Step 3: Identify your Talents and
Step
Step
Step
Step
Source (31)
Passions
4: Follow in the Footsteps of
Success
5: Explore your Choices
6: Narrow your Niche
7: Rank,Rate,and Reveal
your Business
69
The 360 Degree Leader: Developing Your Influence
from Anywhere in the Organization
The Myths of Leading From The Middle of
An Organization
The Challenges 360-degree Leaders Face
The Principles 360-Degree Leaders
Practice To Lead Up
The Principles 360-Degree Leaders
Practice to Lead Across
The Principles 360-Degree Leaders
Practice to Lead Down
The Value of 360-Degree Leaders
Source (32)
70
Questions?
(60)Source
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