Entrepreneurship: Myth – Mindset - Mandate
Patricia McDougall-Covin, Ph.D.William L. Haeberle Professor of Entrepreneurship
University of PaviaOctober 2011
CongratulationsUniversità di Pavia
On Your 650th Year Anniversary!!!!
Outline• The Myths of Entrepreneurship• The Entrepreneurial Mindset• The Entrepreneurial Mandate
– Extend entrepreneurship education throughout the university
– Advance entrepreneurship as the world’s engine of economic growth and job creation
Entrepreneurship Education has achieved
“Remarkable Growth”
30 Years Ago
Only 6 universities conducting
entrepreneurship programs
Today
> 3,000 universities offer programs in entrepreneurship
E-Education is a FORCE!
The 1980’sEntrepreneurship’s Emerging Era
When the myths were exposed!
Exposing the Myths of Entrepreneurship
“Big risk takers ~ gamblers” myth
Exposing the Myths of Entrepreneurship
“All you need is luck” myth
Exposing the Myths of Entrepreneurship
“Most entrepreneurial initiatives fail” myth
Exposing the Myths of Entrepreneurship
“All you need is money” myth
Exposing the Myths of Entrepreneurship
“Entrepreneurs are born, not made” myth
Debunking Myths
"It's not magic; it's not mysterious; and it has nothing to do with
genes. It's a discipline and, like any discipline, it can be learned."
- Peter Drucker
The Real Lesson of the 1980’s
A Mindset Shift
From “Institutional” Relianceto
“Individual” Reliance
The Entrepreneurial Mindset
• Entrepreneurship is a perspective that has– revolutionized the way individuals think
and the decisions they make– revolutionized the way business is
conducted in every country
The Entrepreneurial Mindset• Is a dynamic process of vision, change, and
creation. • Requires an application of energy and
passion towards the creation and implementation of new ideas and creative solutions.
• Is the vision to recognize opportunity where others see chaos, contradiction, and confusion.
Adapted from Donald F. Kuratko, Entrepreneurship 8th, South-Western, 2009.
Everything is always impossible before it works!
That is what the entrepreneurial mindset is all about….. encouraging people
to do what is impossible.
Mandates• Extend entrepreneurial education
throughout the university• Advance entrepreneurship as the
world’s engine of economic growth and job creation
Mandate - University Education
Extend the “entrepreneurial mindset”
across the entire university
Entrepreneurship at Indiana University
Kelley School of Business (KSB) is the focal point of entrepreneurial education & engagement
Role is to create an entrepreneurial mindset throughout the campus
Kelley School of Business• First entrepreneurship course offered in 1959• Rankings among U.S. public universities:
– #1 Entrepreneurship Program (Fortune Magazine 2910)
– #1 Undergraduate Entrepreneurship Program (U.S. News & World Report, 2011, 2010, 2009, 2008, 2007)
– #1 Graduate Entrepreneurship Program (U.S. News & World Report, 2011, 2009, 2008)
Johnson Center for Entrepreneurship & Innovation
Cross-Campus Initiatives• JCEI Main Office – Kelley School of Business• Satellite Offices
– School of Law– Simon Hall Multidisciplinary Science Building– School of Medicine (located in Indianapolis)– IU Innovation Center
• Campus Collaborations– Jacobs School of Music– School of Public & Environmental Affairs– School of Informatics – Multiple Centers and Institutes
I.U. Law School
Elmore Entrepreneurship Law Clinic
JD & MBA students provide legal assistance to high potential companies & to faculty seeking to commercialize an innovation
Multidisciplinary Science Building •Dedicated to the emerging science projects emanating from the laboratories of I.U.’s top scientists
•Collaborative work between science & business students
Johnson Center for Entrepreneurship & Science Innovations
Johnson Center for Entrepreneurship & Medical Science Innovations (JCEMSI)
Indianapolis Campus
Located in I.U. Research & Technology Corporation, near I.U. Medical School
Focuses on the commercialization of the medical life sciences developments of the physicians & researchers at the I.U. School of Medicine
IU Innovation Center (Hoosier Hatchery)
>2,000 square feet of space for students working on new innovations with commercial potential
Jacobs School of Music•Johnson Center for Entrepreneurship & Cultural Leadership (JCECL)
•Educate music students on entrepreneurial principles as many music students will be using their special talents on their own
School of Public & Environmental Affairs
Social Entrepreneurship Certificate Program
• Offered to business & SPEA students
• Includes internships in non-profit & for-profit companies in social entrepreneurship
Indiana University’s Vision
The Entrepreneurship Campus of the 21st Century
Mandate – World’s Economic Engine
• Throughout the world, entrepreneurial firms are increasingly looked to as the major potential source of innovation, employment, and economic growth
• Entrepreneurial firms are the engines of economic growth and job creation; which in turn, are believed to be the underpinnings of political stability
• Entrepreneurship empowers women and youth
Social Entrepreneurship – Combining Social Values, Profit Motives & Global Focus
Muhammad YunusNobel Prize Winner, 2006
Micro Financing
Mandate – World’s Economic Engine
Entrepreneurial firms are now part of the
international marketplace
International Business Focus – Up to mid 1990s
Source: Adapted from Shaker Zahra presentation, AIB Conference, Sweden, 2005.
Stage Theory
Dominated
The
Literature
Source: Shaker Zahra’s presentation slide, AIB Conference, Sweden, 2005.
The New World of International New Ventures
Source: Adapted from Shaker Zahra’s presentation slide, AIB Conference, Sweden, 2005.
Born Global• Founders
– Piereluigi Zappacosta (Italian)– Daniel Borel (Swiss)– Giocomo Marini (Italian)
• Acquired rights to sell a Swiss-designed optomechanical cursor control (mouse)
• Incorporated in Switzerland in 1981 and in the U.S. a few months later
• Manufacturing and marketing operations in Switzerland, Taiwan and U.S.
• By 1990, had captured 35% worldwide market share of OEM market and 27% of the worldwide retail market for the mouse business
Met while studying engineering at Stanford University
Key Drivers of Emergence of Born Globals• Technology- easier, faster, cheaper
– Fax– Satellite communications– Internet
• Transportation – faster, more efficient, cheaper– Containerization of freight– Air travel prices
• Crumbling trade barriers• Globalization of markets –convergence of buyer
preferences and lifestyles worldwide
The Internet makes business through virtual markets possible anytime and anywhere!
International New Ventures/Born GlobalsAre Different from Multinational Enterprises
• NVs face liabilities of newness (Stincombe, 1965)
• Survival is a critical issue for NVs• For NV, a misstep in international arena may
mean death because of lack of slack resources• NVs enjoy learning advantages of newness
(Autio, Sapienza & Almeida, 2000)
Learning Advantage of Newness (Autio, et al., 2000)
As firms become larger & established -- develop routines, procedures & structures
New firms -- flexible & open to international opportunities
Who wants to be an entrepreneur and sell in
the international marketplace?
Eurobarometer Survey on Entrepreneurship(2009)
• Preference for self-employment – Europeans
• 45% of all Europeans would like to be self-employed • 49% would prefer working as an employee.
– Chinese has the strongest preference for self-employment (71%), – Japanese have the weakest preference for self-employment (39%)
• Favorable image of entrepreneurs– United States 73%– Europe - 49%– China - 40%– Japan - 32%– Korea - 30%
What Does Research Tell Us?• Global Vision• International experience• Global networks• Primarily technology-based or knowledge
intensive firms• International knowledge can be sourced
externally—VC, alliances, proximate firms• Geographical location matters
The Power of Entrepreneurship• The phenomenon we are witnessing today
has less to do with risk-taking than with the simple observation that people, not institutions, create change.
• In this respect, perhaps our entrepreneurs are leading our nations to a rediscovery of business as a process limited only by the boundaries of each individuals intelligence, imagination, energy, and daring.
“One of the five most beautiful campuses in the U.S.”Thomas GainesThe Campus as a Work of Art
Questions?
Grazie
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