Norris Krueger, PhD
External Fellow, Max Planck Institute of Economics
Entrepreneurship Northwest
Academy of Management
6 August 2010
Teaching Social & Sustainable
Entrepreneurship
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So…..
What IS “entrepreneurship” anyway? What is it that entrepreneurs do?
It’s about making money?
Nope.
OK, then it’s about starting a business?
Not really.
It’s about figuring out ways to create & deliver value?
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Key issues?
• What We Teach
• How We Teach
• Why We Teach?
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Mental Prototypes
What do YOU think when I say:
“social entrepreneur”?
“sustainable entrepreneur”?
even… and especially… “opportunity”?
Impact of role models – like instructors
What we teach will reflect our own mental prototypes (& how we teach it)
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My mental prototype?
―It‘s Not About You‖
(www.soulshelter.com/fortune/entrepreneurship-why-it‘s-not-about-you/)
Entrepreneurs create & deliver value
Harness passion (& skills) in service of
creating & delivering value
Residual claimant model (ec dev)
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Entrepreneurship: It‟s Not About You
Looking across the living room of his expansive flat in Hong Kong‘s
tony Victoria Peak neighborhood, Peter Hamilton spoke in the
calm, slightly world-weary voice of a man who will never again worry
about earning a living. ―The ones who made it,‖ he said softly, ―are
the ones who weren‘t in it for the money. The fortune-seekers
couldn‘t sustain their passion through the hard times—and there
were hard times.‖
What, then, is entrepreneurship about?
Exploiting a market opportunity? Fame? Fortune? Proving yourself?
First, a tip as to what entrepreneurship‘s not about: Entrepreneurship is
not about you. It‘s not about you getting rich, you proving something
to the world, you struggling to overcome the odds.
Rather, it‘s about you helping other people achieve their goals.
Now the question is, what do you CARE about?
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WHAT We Teach
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Return of the Heffalump? Social & Sustainable Entrepreneurship:
Is It Growing or…
Just Getting Bigger?
Does It Matter?
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Big Tent? The Welsh, et al. Data
• 298 syllabi from around the world compiled in
2007 by Brock, Welsh, Steiner, and Krueger
– 86 (29%) were from universities outside the U.S.
• 2007 Worldwide survey - 269 faculty
– Compare mental models with pedagogy preferences
• What consistent patterns did we find?
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Key Patterns
• Definitions all over the map
• Ask me how many syllabi mentioned
„ethics―
• SE pedagogy also all over BUT…
– Minimal experiential learning
– Surprisingly little entrepreneurship?
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Patterns, continued
• No pattern in social entrepreneurship
courses… at best
• Entrepreneurship-trained instructors –
more project based but….
• Focusing on sustainable entrepreneurship
yields a VERY different picture
– Decreasingly in b-schools?
– Design ethos
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HOW We Teach
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Two Kinds of Schooling (http://sethgodin.typepad.com/seths_blog/2010/07/two-kinds-of-schooling.html)
"Type 1. You can take a class where you learn technique, facts &
procedures.
Type 2. You can take a class where you learn to see, learn to lead &
learn to solve interesting problems.
The first type of teaching isn't particularly difficult to do & it's something
we‘re trained to absorb. The first type of schooling can even be done
with self-discipline & a Dummies book. Important but not scarce.
The second kind, on the other hand, is where all real success comes from.
It's really tricky to find and train people to do this sort of teaching, and
anytime you can find some of it, you should grab it.
Over and over I see the same thing--organizations refusing to do the
difficult work of teaching people to see. One college dean was so stuck
in his type-1ness that he couldn't even bring himself to participate in a
session run by a gifted type 2 teacher.
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Novice Expert
Entrepreneurial
Mindset
Critical Developmental
Experiences
Change in what we know (content)
Change in how we know
it (knowledge structures)
Change in Deep Beliefs
But… what deep beliefs are we changing? That we intend to change?
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Herb Simon‘s (1963) Levels
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Getting at Deep Cognitive Structures
• Understand cognitive change =
• Neuroscience perspectives?
And Why Not Neuro-entrepreneurship?
• Ultimatum game? (Prisoners Dilemma??)
• Develop maps, scripts/schemas
• Results already, just not in SocEnt?
Sahakian team – 'hot' cognitions
Social versus economic dimensions of opportunity (Grichnik, Welpe & Krueger)
and… semi-lexicographic preferencing!
(Krueger & Kickul) 17
Ultimatum games: This is your brain on unfairness
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Horses & Jockeys?
All this means the ―who‖ is critical…
Novice ----- Expert
* Deliberate practice
* Mentoring by…
Experts
New models: TechStars, Y-Combinator..
(but what also happens of interest?) 19
Lean and (Not so) Mean?… ―Lean‖ doesn‘t mean cheap.. It means FAST
―Lean‖ could just as easily be called ―Learn‖!
WHEN to be Lean? Extreme uncertainty
Significant ambiguity (Type III errors)
Startups – scalable startups
New Product Development / Tech Transfer
Also sounds like…
Social / Sustainable / BOTP
Minimize TOTAL time through the loop
LEARN BUILD
MEASURE
IDEAS
CODE DATA
Source: Eric Ries,
The Lean Startup
―Failing fast‖ is also a misnomer – ―fail
FORWARD‖ which means…
Better your assumptions fail… than your biz
Forces attention on Value
(benefits>>features)
Build Test/Measure Learn (L,R,R)
OK, To YOU what IS….
• Social entrepreneurship?
• ..for that matter…
• Sustainable entrepreneurship?
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But….
• "We should aim to not only become Ph.D's,
but Ph.Do's too! The world needs leaders
who act, more than ever." » -John Hope Bryant
» For more info:
» @entrep_thinking
» www.Youtube.com/IgniteBoise - look for my video!
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Extra backup slides hereafter
• To cover possible questions...
• Need to add back the other data slides
from Krueger & Welsh on syllabi/survey)
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Passion
• Are entrepreneurs passionate?
• Are social/sustainable entrepreneurs even
more passionate (possibly about more
things?)
• Vallerand‗s dichotomy?
– Entrepreneurial intensity?
• Passion as lexicographic preferencing?
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Cingulate (yellow), orbitofrontal (pink), amygdala (orange), somatosensory (green), insula (purple)
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One last „neuro‟ angle (last NYU conf)… Passion:
Semi-Lexicographic Preferences?
Multiple attributes MCDM Heuristic thinking
Bounded rationality (reduced evoked set)
Categorization theory (simplifying)
Effectuation theory? (starting with what you have)
Human reality: Lexicographic preferences…sort of
Non-compensatory vs. compensatory preferences
(tradeoffs vs. ‗deal-breakers‘)
Deal-breakers = sources/channel of passion?
Are social/sustainable entrepreneurs even more passionate (possibly about more things?)
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Mapping supraeconomic opportunity space
Alternative supraeconomic opportunity spaces (2 domains)
(intersection) (union)
Alternative supraeconomic opportunity spaces (3 domains)
(intersection) (union) (complex)
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Figure 4: Utilities by Attribute
0 0.2 0.4 0.6 0.8 1
Growing Very Fast
Not Growing
Competing on Quality
Competing on Price
High Tech
Low Tech
Seeking new product markets
Defending existing product markets
Funded through external capital
Funded internally
Seeking strong financial performance
Not placing a high priority on financial performane
Not emphasizing social responsibility
Consciously focusing on being socially sustainable
Intentionally seeking to be environmentally sustainable
Not emphasizing environmental sustainability
Competitive Conditions are chaiging rapidly
Competitive conditions are stable
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