Global Entrepreneurs and Cooperative Global VenturesCooperative Global Ventures

By

Dr. Robert D. HisrichGarvin Professor of Global Entrepreneurship

Director, Walker Center for Global Entrepreneurship Thunderbird School of Global Management

1 Global PlaceGlendale AZ 85306-6000, USA

E-mail: robert.hisrich@thunderbird.eduTelephone: 602-978-7571

Fax: 602-439-1435

The Next Decade

• Hypercompetition• Rapidly changing technology• Rapidly changing supply chains• Declining profit margins• Declining or plateauing sales• Declining or plateauing sales• Shorter product life cycles

� Need new products/services� Need new growth opportunities

• New marketing• Significant capital available but

hard/expensive to obtain

Innovation Chart

Breakthrough Innovation

Technological Innovations

Un

iqu

enes

s

Technological Innovations

Ordinary InnovationUn

iqu

enes

s

Number of Events

Product Evolution

The Role of Entrepreneurship in Innovation and Economic Development

• Government as an InnovatorGovernment is one conduit for funding and commercializing the results of the synthesis of social need and technology. This is frequently called technology transfer.

• Intrapreneurship (Corporate Venturing) as an InnovatorIntrapreneurship (entrepreneurship within an existing organizational Intrapreneurship (entrepreneurship within an existing organizational structure) can also bridge the gap between science and the marketplace. Existing organizations have the financial resources, business skills and frequently the marketing and distribution systems to commercialize innovation successfully. Too often the bureaucratic structure, the emphasis on short-term profits, and a highly structured organization inhibit creativity and prevent new products and businesses from being developed.

The Role of Entrepreneurship inInnovation and Economic Development (cont)

• Entrepreneurship as an InnovatorEntrepreneurship can also bridge the gap between science and the marketplace through entrepreneurs forming new ventures. Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence.

Decision to be an Entrepreneur

Change fromPresent lifestyle

Form new enterpriseDesirable1. Cultural2. Subcultural3. Family4. Teachers5. Peers5. Peers

Possible1. Government2. Background3. Market and

opportunity available4. Capital available

Aspects of the Entrepreneurial Process

Identify andEvaluate theOpportunity

Develop aBusiness Plan

ResourcesRequired

Start and ManageThe Enterprise

• Creation andlength of opportunity

• Real and perceived value of opportunity

Section 1• Title Page• Table of Contents• Executive SummarySection 21. Description of

• Existing resources of entrepreneur

• Resource gaps

• Financial

• Management style

• Understand key variables for success

• Identify problems • Risk and returns of opportunity

• Opportunity versus personal skills and goals

• Competitive environment

• Opportunity Assessment Plan

1. Description ofBusiness

2. Description ofIndustry

3. Marketing Plan4. Financial Plan5. Production Plan6. Organization Plan7. Operational Plan8. SummarySection 3• Appendices (Exhibits)

• Financial

• Supply

• Distribution

• Human

• Technological

• Access to needresources

• Identify problems and potential problems

• Implement control system

• Develop growth strategy

Entrepreneurial/Intrapreneurial Leadership Characteristics

• Understands the environment• Is visionary and flexible• Creates management options• Encourages teamwork• Encourages teamwork• Encourages open discussion• Builds a coalition of supporters• Persists

Market-Oriented vs. Controlled Economies

Market-OrientedEconomy

Controlled-OrientedEconomy

Overall Market Conditions Orientation Toward Investment Entrepreneurial Overall Market Conditions • Size of market• Ease of company formation• Ease of doing business• Tax structure on individual and

company• Media coverage• Systematized code of business

law• Government attitude, policies

and regulations

Orientation Toward Innovation and Innovative Activity• Long-term thinking• Going concern

concept

InvestmentCommunity• Banks• Venture

capitalists• Informal private

investors—angels• Private equity

market

Entrepreneurial Culture

Walker Center for Global Entrepreneurship

•• Our mission is to advance global Our mission is to advance global entrepreneurship through comprehensive, entrepreneurship through comprehensive, relevant,relevant, education, training, research and education, training, research and programming in the areas ofprogramming in the areas of enterprise capital, enterprise capital, programming in the areas ofprogramming in the areas of enterprise capital, enterprise capital, global entrepreneurship, global family global entrepreneurship, global family enterprise, innovation and entrepreneurship in enterprise, innovation and entrepreneurship in emerging markets.emerging markets.

Walker Center for Global Entrepreneurship Pillars

Enterprise Capital

Emerging Markets

Global Entrepre-nuership

Global Family

Enterprise

Innovation and Sustainability

Goal • Teach and develop the practice of Entrepreneurship in the globally competitive marketplace.

Stakeholders • Students, Entrepreneurs, Family Businesses, Profess ionals, Capital Providers and Capital SeekersStakeholders

• Entrepreneurship, Intrapreneurship, Family Enterpr ise, Innovation , Private Capital, Entrepreneurial Finance, Microfinance, Women Entrepreneurship, Technology En trepreneurship, Global Finance and Real Estate

Leadership/ Expertise

Coursework • Provide relevant, state of the art curriculum to st udents and professionals in areas of expertise

Consulting • Provide demand driven, applicable programming and s ervices to students, entrepreneurs and professional s

Applied• Mentorship Programs, Global Family Enterprise, Cert ificate Programs, TPEC Conference and Forums, Angel

Funding, Women’s Entrepreneurship Training

Academic

Global Entrepre-nuership

Global Family

Enterprise

Enterprise Capital

Emerging Markets

• Valuation of the Private Firm

• Financing and Forecasting for the

• Global Enterprise• Global Business

Plan• The

• Global Family Enterprise

• Social Entrepreneurship and Enterprise

• Entrepreneurship

• Innovation and Creativity

Academic and Publications

Innovation and Sustainability

Forecasting for the Private Venture

• Seminar: Topics in Non Public Finance

• Quarterly TPEC Newsletters

• White Paper Series

• Annual Thunderbird Business Review: Equity Edition

• Research published in Academic Journals

• The Entrepreneurial CEO

• Global Entrepreneurship 8th edition

• Technology Entrepreneurship

• International Entrepreneurship

• Papers published on Entrepreneurship

• Post Doc Research

• Enterprise Fellows

• Family Business 3rd edition

• Entrepreneurship in Emerging Markets Summerim

• The Importance of Education in the Entrepreneurial Process: A World View

• Entrepreneurship and Differences and Locus of Control

Publications

Non Academic

Global Entrepre-nuership

Global Family

Enterprise

Enterprise Capital

Emerging Markets

• Thunderbird Private Equity Conference

• Thunderbird

• Global Mentoring Network

• Enterprise Scholars• Entrepreneur in

• Global Family Enterprise Program

• Women’s Entrepreneurship Training

• Certificate of Global

• Business Plan Competition

• Thunderbird Global Incubator

Non Academic Programs

Innovation and Sustainability

Non Academic

• Thunderbird Private Equity Forums

• Thunderbird Angel Network

• Private Equity Venture Capital Club

• Entrepreneur in Residence

• Thunderbird Entrepreneurship Network

• Walker Center Blog

• Certificate of Global Entrepreneurship

Incubator• Alumni

Entrepreneur of the Year

Academic

Global Entrepre-nuership

Global Family

Enterprise

Enterprise Capital

Emerging Markets

• Masters of Global Real Estate Finance and Development

• Masters of Global Technology EntrepreneurshipManagement

• Microfinance Winterim

Proposed Academic and Non Academic Programs

Innovation and Sustainability

Development

• Consulting• Mentoring and

Internships• Thunderbird

Venture Fund

Management

• Entrepreneurship Certificate Program for Disabled Veterans

• Competitive Evaluation of Market Position of Global Family Enterprise Program

• Women’s Entrepreneurship Training

• International Biotechnology Commercialization Center (IBCC)

• Healthcare Innovation Certificate

Non Academic