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[C P Kaushik, S S Bhavikatti, Anubha Kaushik] Basi(BookFi.org)
Kaushik Gala 2009
200
Entrepreneurship Kaushik Gala 2009
Transcript of Kaushik Gala 2009
Entrepreneurship
Kaushik Gala
2009
Entrepreneurship in 7 hours
Introduction
Successful Entrepreneurs
Myths
Startup Lifecycle
VCs, Angels
Case
Corporate VC
Innovation
New media
Technology commercialization
Corporate entrepreneurship
Social entrepreneurship
Globalization
Crises
Conclusion
What is Entrepreneurship?
“The practice of starting new organizations or
revitalizing mature organizations, particularly new
businesses generally in response to identified
opportunities.” – Wikipedia
What is Entrepreneurship?
“Entrepreneurship is the last refuge
of the trouble-making individual.”
Inventor vs. Entrepreneur
Inventor
Creates something new
Entrepreneur
Puts together all the resources – money, people, strategy, risk-
bearing ability - needed to transform the invention into a viable
business
“Entrepreneurs innovate.” - Drucker
What is the Innovation?
Café Coffee Day
SMS
Reliance Fresh
Orkut
Inox
IRCTC
IBM
Manager vs. Entrepreneur
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=1690
Reid Hoffman, LinkedIn, “Most connected man in all of Silicon Valley"
Principles of Entrepreneurship
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=1686
Reid Hoffman, LinkedIn, “Most connected man in all of Silicon Valley"
Theories of Entrepreneurship
Entrepreneurship =
Management
Imagination, creativity
Innovation
Alertness, discovery
Charismatic leadership
Entrepreneur =
Hero
Risk/uncertainty bearer
Leader
Scientist / Inventor / Technologist
Middle-man
A to Z Characteristics
A for Ambiguity
Tolerance for ambiguity
Change / uncertainty → Opportunity
H for Health
Can’t afford to be sick!
O for Opportunistic
See possibilities wrapped up in every option
Fail fast, fail often
T for Timing
Right idea, right place, right time
“We were too early”
X for X Factor
Obsession, passion, dysfunction
http://knol.google.com/k/peter-baskerville/characteristics-of-an-entrepreneur/
E for Effectual Reasoning
http://www.effectuation.org/ftp/What%20makes%20entrs%20entl%20note.pdf
“Entrepreneurs believe in a yet-to-be-made
future that can substantially be shaped by
human action; and they realize that to the
extent that this human action can control the
future, they need not expend energies trying
to predict it.”
Characteristics That Can NOT Be Learned
Herb Kelleher, Southwest Airlines:
1. A reasonable intelligence
2. Good health
3. Optimistic disposition
4. Lengthy attention span
5. Perseverance
6. A love of people
http://knol.google.com/k/peter-baskerville/characteristics-of-an-entrepreneur/
8 Patterns of Highly Effective Entrepreneurs1. Opportunity - Entrepreneurs have an aptitude for spotting and seizing opportunity.
2. Leadership - Entrepreneurs are compelled to be in charge, and act as natural and very capable
leaders.
3. Innovative - They have a history of innovation, and the entrepreneurial spirit has been with them
since childhood.
4. Adaptation - Entrepreneurs are quick to adapt to almost any situation thrown at them. They
have an ability to think on their feet, and “just go for it”.
5. Drive - Entrepreneurs naturally have a strong drive and determination to see their idea succeed.
6. Passion - They have a passion and enthusiasm for what they do.
7. Unfailing Pragmatism - Entrepreneurs act as their own best check and balance system. They
take calculated risks, but never gamble.
8. Setbacks = Opportunity - Entrepreneurs see setbacks not as failure, but as opportunity to learnhttp://www.amazon.com/8-Patterns-Highly-Effective-Entrepreneurs/dp/0385515472
A Million Ways to Startup Success
Opportunism
“the art, policy, or practice of (resourcefully) taking
advantage of opportunities or circumstances often
with little regard for principles or consequence”
-Webster
Opportunistic Entrepreneur
Adaptive
Rapid growth
Breadth of skills / experience
High social awareness
Interested in discovering & exploiting opportunities
Innovative
???
Opportunist: Long-Range Low-Risk
Develop plans for the long run & consciously weigh
options
"Don't regret later because you did not try”
Risk-averse propensities
Higher short-range risk but low longer-term risk
Minimize personal risk by involving outside sources
Engage with formal networks
http://www.entrepreneur.com/tradejournals/article/53590484_1.html
Opportunistic Decision Making
“Entrepreneurs = Decision makers who identify and capitalize on opportunities through approaches that emphasize innovation, profitable venture identification, effectiveness rather than efficiency, and ambiguous situations.”
“Entrepreneurial profit opportunities exist where people do not know what it is that they do not know, and do not know that they do not know it. The entrepreneurial function is to notice what people have overlooked.”
“Whenever major changes take place, turmoil and confusion result in the marketplace, creating situations that are ripe for exploitation by opportunistic decision makers.”
http://www.allbusiness.com/human-resources/employee-development-problem-solving/102133-1.html
Opportunistic (Startup) → Strategic (Growth)
“Building a long-lived firm requires comprehensive changes. Instead of
relying upon opportunistic adaptation to exploit niche opportunities,
they have to formulate and implement ambitious long-term
strategies.”
In order to scale (grow) the entrepreneurs behind the business must
adopt a strategic rather than an opportunistic approach.
This is in contrast to the nature of a startup business, which is intuitive,
adaptive, opportunistic and niche oriented.
http://www.thompsonlaw.ca/pdf_folder/beyondstart.pdf
Opportunistic Entrepreneurs in India
Dhirubhai Ambani
Stay Hungry Stay Foolish – Rashmi Bansal
Deep Kalra (makemytrip.com)
Rashesh Shah (Edelweiss Capital),
Nirmal Jain (India Infoline)
Vikram Talwar (EXL Service)
K. Raghavendra Rao (Orchid Pharma)
Jerry Rao (Mphasis)
Shivraman Dugal (Institute for Clinical Research in India)
Shankar Maruwada (Marketics)
Ruby Ashraf (Precious Formals)
Deepta Rangarajan (IRIS)
Cyrus Driver (Calorie Care)
???
Richard Branson
English billionaire industrialist, Virgin Group
(First successful business venture at age 16)
http://en.wikipedia.org/wiki/Richard_Branson
Virgin Group (A Branded House)
“Virgin, a leading branded venture capital organization, is one of the world's most
recognized and respected brands. Conceived in 1970 by Sir Richard Branson, the
Virgin Group has gone on to grow very successful businesses in sectors ranging
from mobile telephony, to transportation, travel, financial services, leisure, music,
holidays, publishing and retailing.
Virgin has created more than 200 branded companies worldwide, employing
approximately 50,000 people, in 29 countries. Revenues around the world in 2006
exceeded £10 billion (approx. US$20 billion).
In our customers' eyes, Virgin stands for value for money, quality, innovation, fun
and a sense of competitive challenge.”
http://www.virgin.com/AboutVirgin/WhatWeAreAbout/WhatWeAreAbout.aspx
The Ultimate Opportunist?“In an era dominated by strategists, Branson is an opportunist.”
“Like most high-caliber entrepreneurs, Richard Branson is every inch an opportunist.”
“Branson is creative, opportunistic, and dedicated to those activities he engages.”
“Luck, energy and opportunism have combined to create Branson.”
“part Warren Buffett, part P.T. Barnum.”
“Ever the entrepreneur, Branson will seek every opportunity to make a fast buck and get
some free publicity.”
Knighted for ‘Services to Entrepreneurship’“Even at an early age, I planned long term and learnt to wait for reward.
Be bold, but don’t gamble.
I have fun running the Virgin businesses, so a setback is never a bad experience, just a
learning curve.
The odd bit of luck goes a long way.
The very idea of entrepreneurship not only conjures up thoughts about starting up
businesses and building them, but also the more frightening prospect of taking risks
and failing. It’s the last part that puts so many people off taking a leap into the
unknown and working for themselves.
Since 80% of your life is spent working, you should start your business around something
that is a passion of yours.”
http://www.amazon.com/Screw-Lets-Do-Lessons-Quick/dp/0753510995
http://opportunistmagazine.com/wp-content/docs/08.pdf
The Role of Luck
4 types of luck/chance Chance I
Completely accidental good luck, with no effort on our part
Chance II
The kind of luck that you stumble upon while randomly, actively experimenting
Chance III
Involves a special receptivity, discernment, and intuitive grasp of significance
“Chance favors the prepared mind” (Domain knowledge + Associations)
Chance IV
The kind of luck that develops during a probing action which has a distinctive
personal flavor (Quirkiness)
Useful traits: Energetic, curious, open minded / flexible, unique
http://blog.pmarca.com/2007/08/luck-and-the-en.html
Successful Entrepreneurs
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=365
Jerry Kaplan, Entrepreneur (Lotus, GO, Onsale, …)
Entrepreneurship is Easy
IdeaPrototype
(R&D)Marketing Sales Customers Revenues Profits $$$
Money
Entrepreneurship is Easy. Not!
Idea
Prototype
(R&D)
Marketing
Customers
Revenue
Profits
$$$
or
Knowledgeable & Bankrupt
Myths - Personality
Born, not made
Doers, not thinkers
Extreme risk takers (gamblers)
I’m too old for this
All I need is money & luck …
… and an MBA
… and maybe a PhD for a hi-tech startup
I’ll be my own boss!
“Lone wolf” entrepreneur
World-class technology/expertise/experience
Motivation = $$$
http://yalepress.yale.edu/yupbooks/book.asp?isbn=9780300113310
Myths - Markets
Entrepreneurs target best markets
Worst
Size, growth rate, barriers, …
Markets matter less than talent
Big / High-growth market >>>>> Talent
Build it & they will come
Who needs sales & marketing?
3/5 year projections
Only in the virtual (Excel) world
Business Plan → Success!
Myths - Money
It takes a lot of money to finance a new business
Boot-strap
Consult
Web 2.0
VCs are a good place to go for start-up money
Tech
Odds
Angel investors are rich
Friends & family
Banks don’t fund start-ups
Non-collateralized debt
Why Not To Do A Startup
Emotional roller-coaster
Uncertainty
Nothing happens unless you make it happen
“No”
Hiring
Sweat & Equity
Indian culture
Work-life balance
Luck
X factors (Randomness)
Recession, Market crash, ‘Acts of God’
Statistics
Dentist or Entrepreneur ?
http://blog.pmarca.com/2007/06/the_pmarca_guid_1.html
The Dark Side of Entrepreneurship
Control freaks
Inability to delegate
Micro-manage
“Its my baby”
Distrust
“Only the paranoid survive” - ??
Vanity
Hype
“Risky”
Ego
I know what I’m doing
Psychology of entrepreneurial misjudgement
http://sgentrepreneurs.com/commentary/2006/05/23/the-dark-side-of-entrepreneurship/
A High-risk Investment
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=1685
Stages of a Startup
Conception Formation GrowthExit /
Maturity
Stages of a Startup
Conception
Idea
Innovation
Proof of concept
Formation
Capital, equity
Team
Product development
Growth
Business model
Processes
Exit / Maturity
M&A
IPO
Death
The
need
for
funds
&
The
need to
adapt
Stages of a Startup
Conception Formation Growth Exit
Emphasis Idea Survival Chaos Liquidity
CEO focus Product,
Service
Business
model, fund
raising, BoD
Hiring,
processes
Strategy,
transition
Team issues Individual USP DNA, roles &
responsibility
Vision,
performance
metrics
Leadership
changes
Organizational
issues
Uncertainty Resource
constraints
Power shifts,
prioritization
“Corporatization
”
Source of
funds
Savings, friends
& family
Angels, seed
stage VCs
VCs Corporations,
public markets,
FIs
In-depth Manage Risks Target Market Sales Cycle IPO or M&A?
Risk Identification
http://www.khoslaventures.com/presentations/Rifle_Methodology_Applied_For_KV_Site2.ppt
Identify risks
Technology
IP protection
Regulation
Distribution
Raw material
Cash flow
Sensitivity analysis
Too little vs. too much
Probabilities
Risk Management
http://www.khoslaventures.com/presentations/Rifle_Methodology_Applied_For_KV_Site2.ppt
Map risks to milestones
Even if you don’t, the VCs will
‘Real options’
Probabilities
Prioritize
Fail early, fail often
Life As an Experiment
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2101
Tom Kelley, IDEO, “The Art of Innovation”
Target Market – Segmentation
http://www.khoslaventures.com/presentations/Rifle_Methodology_Applied_For_KV_Site2.ppt
Consumer / enterprise / government / …
India / US / Japan / …
BoP / Ultra-rich / …
Teenagers / Retirees / …
Value conscious / Luxury at any price / …
Offline / online / …
Urban / rural / …
Transaction / relationship (loyalty)
Generic / branded / …
Target Market – “Rifle” Framework
http://www.khoslaventures.com/presentations/Rifle_Methodology_Applied_For_KV_Site2.ppt
“Market Rifle” – what market segments should we be in?
Intuition: focus on top 2,000 accounts; expand to complementary markets
Rifle: narrow focus to 30 of top 200; stay in core market for 2+ years
“Account Rifle” – which accounts should we target?
Intuition: great financial services targets: [Company 1], [Company 2]
Rifle: none of the above are appropriate: better are [Com. 3], [Com. 4]
“Channel Rifle” – what channel strategy, what partners?
Intuition: leverage large existing sales forces of channel partners to
expand sales
Rifle: direct sales assisted by partners much more likely to succeed
Sales Learning Curve (~ Manufacturing Curve)
http://www.khoslaventures.com/presentations/Sales_Learning_Cycle.doc
Phased sales force staffing
Learning
A few good people
Initiation
Product critical mass
Transition
Pedal to the metal
Startup Exit Routes
http://www.khoslaventures.com/presentations/Rifle_Methodology_Applied_For_KV_Site2.ppt
Getting out:
Wind up
Merge with another company (“M”)
Get acquired (“A”)
Go public (IPO)
Family-based enterprise → Succession issues
Talent
Interest
Conflict
IPO vs. M&A
http://www.khoslaventures.com/presentations/Rifle_Methodology_Applied_For_KV_Site2.ppt
IPO
Goal from Day 1 → Financial/performance incentive
High-growth markets
VCs love it (as do I-Banks)
M&A
Integration issues – redunduncy, culture, …
Retention, ESOP vesting, …
Liquidity options
IPO vs. M&A – A Clear Winner
http://www.wpiventureforum.org/Programs/0708/Erman-Exit.ppt
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M&A – Can It Absorb The Supply?
http://www.wpiventureforum.org/Programs/0708/Erman-Exit.ppt
Median Revenue Multiple for Technology M&A Transactions
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Tra
nsa
ctio
n V
alu
e / R
even
ue
Buyers are willing to pay for future growth prospects
View acquisitions as attractive option to fuel top-line growth
Market has more access to acquisition currency
Financial buyers now commonly bid along side strategic buyers
Startup Financing
http://www.angelblog.net/Startup_Funding_Sources_of_Financing.html
http://paulgraham.com/startupfunding.html
Friends & Family
Easy to find
“Love money”
Quick transaction
Downsides
Mix business with personal relationships
Dealing with losses
Limited value-add
Startup issues
Connections to angels/VCs for later rounds
Legalities
Equity stakes
Term sheets
Consulting
Consulting project → Product → Startup
Cash flow
Customer validation
Downsides
Low risk, low return
Dealing with clients vs. Developing the product
No fear of failure?
Angel Investors
VHNIs
Understand startups
Contacts, advice, follow on financing
Flexibility in term sheets
Issues
Valuation
Exit
At their mercy?
Seed Funds
Early stage investments, ~ angels
Influence business model
Seed funds = Incubators?
High risk, high reward
Bet a little, test a little?
People > Idea
Tech savvy
Downsides
Too much control?
Formal process → Delays
Venture Capitalists
Fund structure
Managers + Limited partners
Success begets success?
Reputation
Contacts, follow on rounds, exits
Downsides
Too much control
Formal process → Delays
Vesting
Exit pressure
Governments, etc.
Government grants, NGOs, Social institutions, …
Downsides
Painful process
Restrictive terms
Type of product/service
Location
Employment
Spending
Corporate VC
Strategic and/or financial motives
Domain expertise
Customer base, contacts
Downsides
Not really a VC
Commitment
Team ($) conflicts
Eg. Intel Capital
http://www.intel.com/capital/
Angel Investing
3 months turnaround, 1% investment rate
Investment amounts: Seed → VC
4 year holding period
Preference
Industry/Sector
Location
Market potential
Relationships!
Due diligence: None → VC style
Andy Bechtolstein: $100K cheque to Google after a chat
http://www.businessweek.com/magazine/content/08_17/b4081112242665.htm?chan=smallbiz_smallbiz+index+page_ge
tting+started
http://wistechnology.com/articles/4363/
Angel Investing – Big Business
http://www.unece.org/ceci/ppt_presentations/2007/fid/Claire%20Munck.pdf
Angel Investing – Big Business
http://www.angelcapitalassociation.org/dir_downloads/resources/What_Ents_Should_Know_About_Angels.pdf
Angel Investing – Trends
More, larger deals
Partnering with VCs
Co-investing with other angels (Angel Groups)
Holding back capital to make follow-on investments
Anti-dilution
Government support
Tax
Women & minorities
http://www.ibfconferences.com/ibf/control/presentation/Workshop%202.pdf
Angel Groups in India
Indian Angel Network
http://www.indianangelnetwork.com/
Entrepreneurial & operational background
Simple term sheet
Quick turnaround
Mumbai Angels
http://www.mumbaiangels.com/
Mentoring
Networks
Silicon Valley experience
Note:
Biz-Plans, Due diligence
1cr+ ?
Angel Investments in India
http://www.businessworld.in/index2.php?option=com_content&task=view&id=2175&pop=1&page=0&Itemid=2243
VCs
Venture Capital
$20B+ industry worldwide
Typically: 5-year time frame, 30%+ target IRR, 30% net stake
Market > Team > Idea ?
Limited partners
Pension funds, Universities, Foundations, Banks, …
Management fee (2% p.a.) + Carry
1 out of 10 = Big winner
But which one?
Too much money, too little time
And even less talent
VC Investments – Buyer Beware
99% startups do not need VC fundings
Too early, too small, no IP, control
VCs fund 1 in 100 deals
Exit dilution for VC-funded founder: 90%
Liquidation preference
VCs get paid first!
Portfolio marriages
Ugly divorce!
Never say “no”
Delay → Information (for the VC, not the entrepreneur)
http://avc.blogs.com/a_vc/files/nyu_venture_capital_when_you_need_it_when_you_dont.ppt
VCs face declining returns
http://www.techcrunch.com/2008/11/12/a-scary-line-has-been-crossed-for-vcs/
VCs face skewed returns
http://paul.kedrosky.com/archives/2005/07/22/skewness_in_ven.html
VCs in India
2006
$349 million in 36 deals
$8.7M median deal size
2007
$928 million in 80 deals
$9M median deal size
2008
$740 million in 125 deals
VC = PE ?
http://infotech.indiatimes.com/News/VCs_tighten_purse_strings_in_Q4_/articleshow/3946809.cms
http://www.domain-b.com/management/m_a/20080222_dow_jones.html
VCs in India
IVCA
http://www.indiavca.org/
VC Circle
http://www.vccircle.com/
SEBI
http://www.sebi.gov.in/investor/venturecap.html
Business Plan – Ditch It ?
VCs don’t have the time to read one
Busy founders don’t have the time to create one
It’s constantly changing
Sharing detailed (confidential) information requires an NDA
VCs won’t sign one
Nobody knows
How team / product / market will evolve
What’ll happen 2/3/5 years from now
“Nothing slows down a VC as much as a comprehensive business plan.”
Y Combinator
Specializes in funding early stage startups
Software and web services
Small investments (< $20,000) in return for small stakes (2-10%)
Value-add
Work together on ideas
Help entrepreneurs deal with investors & acquirers
Formalities (incorporation, equity stakes, etc.)
Funding in batches
Demo Days
http://ycombinator.com
Vinod Khosla
Co-founder, Sun Microsystems
VC, KPCB
Over half his investments at KPCB from 1996 to 2001 were infusions of $1
million or less into barely formed startups
Juniper Networks returned KPCB's invested capital over 1,000 times.
Khosla Ventures (2004)
Seed stage ‘science projects’
New areas (bio fuel)
Innovative, but not yet commercially viable
http://www.nriinternet.com/NRIentrepreneurs/USA/A_Z/K/Vinod_Khosla/3_May31_2005.htm
http://battakiran.wordpress.com/2008/07/22/vinod-khosla-smartest-guy-in-silicon-valley-%E2%80%93-by-richard-
shaffer/
Vinod Khosla
His highest returns came disproportionately from investments where he put in
less than $1m (seed stage), and from where he had a board seat.
Note: 60-100% success rate are an anomaly!
http://paul.kedrosky.com/archives/2006/07/04/the_seed_ventur.html
Only $10M
http://www.thefeinline.com/photos/PepperAndSalt.gif
Corporate Venture Capital
“An initiative by a corporation to invest either in young
firms outside the corporation or units formerly part of
the corporation.”
Corporate Venture Capital
Decisions
What industries to invest in?
Complementary?
How to structure a corporate parent-funded investment channel?
Division? Subsidiary?
Get best partners (for deal flow, quality, reputation, stage)?
Get best portfolio (for high value, reduced risk, timing)?
Strategic and/or Financial
Corporate Venture Capital - Trend
http://www.strategicventureassociation.com/documents/SVAPresentation-July2008.pdf
Corporate Venture Capital - Issues
http://www.strategicventureassociation.com/documents/SVAPresentation-July2008.pdf
Corporate Venture Capital – New Model
http://www.productgenesis.com/archive/Henry_Chesbrough_Presentation.pdf
Intel Capital
http://www.intel.com/capital/download/Intel_Capital_India_Overview_Jan_2009.ppt
Intel Capital
http://www.intel.com/capital/download/Intel_Capital_India_Overview_Jan_2009.ppt
Corporate Venture Capital – India (eg. Intel)
In India since 1998
$250M India Technology Fund (2005)
60+ investments
Jan 2009
$23M in 3 companies
One97 Communications (a Delhi-based mobile value added
services company), online B2B marketplace IndiaMART.com
and vocational training institute Global Talent Track
http://www.intel.com/capital/india/default.htm
Intel Capital (India)
http://www.intel.com/capital/download/Intel_Capital_India_Overview_Jan_2009.ppt
Intel Capital (India)
http://www.intel.com/capital/download/Intel_Capital_India_Overview_Jan_2009.ppt
IBM Venture Capital
http://www-304.ibm.com/businesscenter/venturedevelopment/us/en/
“Our goal is to build strategic relationships with venture
capital firms and their portfolio companies to create:
An ecosystem that fosters innovation
Exciting new technologies and customer solutions
New growth opportunities in new markets”
Microsoft BizSpark
http://www.microsoft.com/BizSpark/
“An innovative new program that unites startups with
entrepreneurial and technology resources in a global
community; with a common goal of supporting and
accelerating the success of a new generation of high-
potential startups”
India
IDG Ventures + Microsoft India = 'Early Stage Funding Program‘
Startups registering for BizSpark can apply for funding (< 25 crore)
Innovation
“The act of introducing something new.”
“Any creative idea, getting implemented or realized
successfully.”
Innovation
“Innovation is the specific instrument of
entrepreneurship…the act that endows resources
with the capacity to create wealth.”
- Peter Drucker
Innovation, by Joseph Schumpeter
1. The introduction of a new good or of a new quality of a
good.
2. The introduction of a new method of production.
3. The opening of a new market.
4. The conquest of a new source of supply of raw
materials or half-manufactured goods.
5. The carrying out of the new organization of any industry
(eg. the creation or breaking up of a monopoly)
The Theory of Economic Development, 1934
Innovation, Apple style
Product-oriented culture
Hire people who want to make the best things in the world
Saying no to 1,000 things
Focus on user experience
Iterate
Perfection, simplicity, elegance, . . .
Focusing their attention on basic human activities instead of basic
corporate activities
‘Network’ innovation
“stitching together its own ideas with technologies from outside and
then wrapping the results in elegant software and stylish design” -
Economist
Steve Jobs2005 Commencement address, http://news-service.stanford.edu/news/2005/june15/jobs-061505.html
Newton vs. iPhone
Newton
Born 1989, Released 1993, Died 1998
Pen-based PDA
Ahead of its time
Over hyped, under delivered
???
Apple’s Errors
Decided not to license its OS
Innovation, at any cost / Innovate or die!
High cost, high risk ‘integrator’ model NIH syndrome
Pricing
vs. Microsoft ???
http://www.fastcompany.com/node/48286/print
Software Innovation
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=789
Ann Winblad, Software entrepreneur, VC
Zoho
Wide range of web-based products
Driven by user feedback
APIs
Taking on Google/Microsoft, with no VC money
Building a brand (vs. selling out to MS/Yahoo/…)
Revenue model: 1M free users → 10k (low price)
paid users
“Freemium”
iYogi
Online computer repair, 24x7 support
Clear value proposition & revenue model
2 rounds of funding
Market size
Recession friendly?
TutorVista
Online tutoring
$100 a month vs. $40 an hour
Clear value proposition
Salaried employees, working from home
Matching teachers w/ learners?
Redbus.in
Online ticket booking, across multiple bus
operators
Organizing a fragmented, under-served market
Clear revenue model
Regional languages
Offline?
Quillpad
Online transliteration
Intelligent, intuitive, phonetic
No special fonts, keyboards, etc.
Platform to enable regional language content
http://quillpad.in/hindi/hindi_index.html
Grameen Bank
Extend credit to lowest income borrowers
No collateral
High credit risk
No contract enforcement
Daily interest rates upto 20%
Risk mitigation
Women
Lender-borrower relationships
Prosper, Kiva
Peer to peer, online lending
Cut out the banks
Cut out the middle-man
Help entrepreneurs
Diversify risk ($25 max per loan)
Market-driven interest rates (Prosper)
Chhota Recharge
Top-ups, starting at Rs 10/-
Volume game
Logistic issues
Margins?
Not just BoP
Emergency use
STD ISD PCO
Sam Pitroda
C-DOT
1980s Telecom revolution
Community telephone
Operated by entrepreneurs
Revenue = % of Phone charges
Aggregation of demand
Cyber cafes
Nirma
Detergent products for poor, rural consumers
Low cost manufacturing (labor intensive)
Wide distribution network
Special packaging for daily purchase
Value pricing
18% gross margin
Amul
Khira District Milk Co-operative / Anand Milk Union
Limited
Processing, distribution, branding
Decentralized organization
Cut out the middlemen / traders
Indirect employment for many
2M+ farmers
Lijjat Papad
Decentralization (Sarvodaya)
Women as owners
Daily payments
J-I-T
Quality
42000+ employees
300cr+ revenue
http://in.rediff.com/money/2005/apr/15lijjat1.htm
eChoupal
ITC initiative to make supply chain more efficient
Link directly with 4M+ rural farmers for
procurement of agricultural / aquaculture produce
Middlemen: Exploitation → Management
6500 centres, 40000 villages
Bonus:
1 of the top 5 alternative channels for LIC Policy sales
Accounts for 10% of the national weather insurance market
Jaipur Foot
Artificial limb (prosthesis)
Rs 1500
Free by BMVSS
Wearer can run, pedal, . . .
Humane delivery system
Design & material innovation
Aravind Eye Care System
High volume eye care
60% patients get free services
High resource utilization (24x7)
Lens cost $5 vs $25
Surgery costs $300 vs $3000
Process innovation
Eye camps, Temp nurses, Training
1 gram Gold
Gold coins in denominations of ½ gram and 1 gram
Not imitation jewelry
Reliance Money, ICICI Bank, India Post
Systematic investing for the unbanked?
Rs. 8,000-crore gold coin market, dominated by
unorganised jewellery stores
Not just BoP
Gift market (1 gram gold = Rs 1400)
Tata Nano
Rs 1 lakh target price point
Cost innovation
Design, materials, features, (subsidies), etc.
Safety? Environment?
New Media
“New media is a term meant to encompass the
emergence of digital, computerized, or networked
information and communication technologies in the
later part of the 20th century.” - Wikipedia
New Media
Cell phone
SMS, MMS
Ring tones
Games
VAS
Internet
E-commerce
Instant Messages
Blogs
Social Networks
Digital Audio-Video
DVD
Video sharing / streaming
Set-top box / TiVo
Satellite radio
Impact of New Media
Profitability
Craigslist, Interactive Brokers, …
The Long Tail
Amazon, Netflix, …
Network Effects
Orkut, Twitter, …
Craigslist
Craigslist
Craig Newmark’s mailing list (1995)
Changed to a website w/ categories
Incorporated as a company in 1999
Current
500+ cities
10 billion+ page views per month
30 million+ new classified ads per month
2 million+ job listings per month
Community-driven (eg. censorship)
Privately-held
http://en.wikipedia.org/wiki/Craigslist
http://www.freerepublic.com/focus/f-news/1555189/posts
A. F. A. P. (‘Delightfully communist’)
As free as possible
<1% paid classifieds (NY rentals, jobs)
No online ads
< 30 employees (at-least 10x less than competitors)
“Craigslist exists to help Web users find jobs, cars, apartments and dates —
and not so much to make money.”
http://dealbook.blogs.nytimes.com/2006/12/08/craigslist-meets-the-capitalists/
“Livingston: What advice would you give to someone thinking about starting a
startup?
Newmark: Trust your instincts and your moral compass. I’ve used that phrase
too much in this conversation. The deal is: we’re not pious about this. We try
hard not to be sanctimonious. This is the way people really live; we just don’t
talk about it.
http://www.foundersatwork.com/
Online Ad Verticals
Jobs
Monster.com
Real estate
Zillow.com
Personals
Plentyoffish.com
Autos
Edmunds.com
Newspaper industry – Classifieds revenue
http://www.techcrunch.com/2007/11/21/spiral-death-watch-newspaper-ads-in-the-can/
http://www.kelseygroup.net/news/2008/evansink_080209.htm
Interactive Brokers
‘Deep discount’ broker
Eg. Stock options brokerage fee = $1 vs. $30 for high-end brokers
Technology driven trading & market making firm
“Sells liquidity”
Software API
Automated (algorithmic) trading → High volumes
Accounts for almost 15% of global equity options volume
Founder: Thomas Peterffy
Programmer, systems (quant) trader
Fight w/ CBOE
Electronic market making (smart order routing)
Forget marketing, focus on efficiency!
http://en.wikipedia.org/wiki/Interactive_Brokers
http://www.iinews.com/site/pdfs/IIMag_InteractiveBrokers_Nov_2005.pdf
The Long Tail
a. k. a. Fat tail, Power law, Pareto distribution
Chris Anderson
Clay Shirky
“a shift away from a focus on a relatively small number of "hits"
(mainstream products and markets) at the head of the demand curve and
toward a huge number of niches in the tail.”
Statistical view
A high-frequency or high-amplitude population is followed by a low-
frequency or low-amplitude population which gradually "tails off“.
The events at the far end of the tail have a very low probability of
occurrence.
http://en.wikipedia.org/wiki/The_Long_Tail
Impact of The Long Tail
Area under tail gaining significance
Popularity ≠ Profitability
"The biggest money is in the smallest sales.“
Embrace niches
Aggregate dispersed audiences
From scarcity to abundance
More expensive to evaluate than release
Cut prices. And keep cutting until the point where ‘free is not worth it’.
Upsell
“People who bought x also bought . . .”
http://www.changethis.com/10.LongTail
Why now? New media!
Online business model reduces costs of storage & distribution
Store rent (Shelf space)
Labor
Transportation
Payments
Web technology enables the Long Tail
Can showcase much wider variety of products on a website
Fulfill ‘niche’ demand
Search engines
Recommendation engines
Free sample/preview
http://www.changethis.com/10.LongTail
Amazon, eBay, Netflix, . . .
No retail presence
Significant cost advantages
Demand aggregation
Serve ‘niche content’ profitably
20-30% of Amazon’s sales come from TLT
Leveraging users
eBay’s feedback scores
Netflix movie reviews
Amazon book lists
Algorithms
Recommendation engine
Search & preview (eg. Google books)
Netflix $1M Prize
For developing an algorithm/system that substantially (10%+) improve the accuracy of
predictions about how much someone is going to love a movie based on their movie preferences
http://www.netflixprize.com/rules
http://ebusiness.mit.edu/research/papers/176_ErikB_OnlineBooksellers2.pdf
Mobile
Music
Mobile music sales > physical music sales in India
Ringback tones, ringtones and master tones – NOT full tracks!
Games
Casual gamers → Lightweight, niche game development
Apps
iPhone – 25,000+ apps, 1B+ downloads, $50M - 100M revenue
Epocrates
On-demand drug information
Free
50,000+ downloads by doctors
iFart
“Novelty app”
$0.99 per download
$40,000 in 2 days
Network Effect
Network Effect
a. k. a. Network externality
“the effect that one user of a good or service has on the value of that
product to other people.”
Examples
Phones
Software
“Winner takes all” (Monopoly, lock-in)
New Media
Accelerate speed of adoption
Being first > Being best ?
Viral effect
User participation
Content
Apps
http://en.wikipedia.org/wiki/Network_effect
Facebook, Digg, …
Allow people to connect, create content, participate, “hang out”
General: MySpace, Orkut, Classmates, Bebo, Hi5, Ning, …
Niche: LinkedIn (biz), Last.fm (music), Flixster (movies), Reddit (news), …
http://www.techcrunch.com/wp-content/digg-users-chart.png
http://www.fastcompany.com/magazine/115/open_features-hacker-dropout-ceo-facebook-numbers.html
http://nielsen-online.com/blog/2008/08/26/facebook-the-network-effect-at-work/
Social messaging / micro-blogging
140 character max., “What are you doing”?
Simple, open interface (API), multi-platform, constantly evolving
4-5M users in < 3 years
But, where’s the money?
Massive hosting costs
No revenue model, yet
Database is a goldmine
Revenue models
Smart advertising
Freemium model for API access
Revenue sharing with apps, like iPhone
“Suggested” friends
http://en.wikipedia.org/wiki/Twitter
The Savviest User of New (Social) Media?
Obama’s Social Media Toolkit
Social media + Micro-targeting = Multiplier effect!http://www.edelman.com/image/insights/content/Social%20Pulpit%20-
%20Barack%20Obamas%20Social%20Media%20Toolkit%201.09.pdf
What about India?
Orkut (2M+ users), Bigadda, …
Naukri, 99acres, Carwale, …
Seventymm, Bigflix (Online movie rentals)
Flipkart (Online book seller)
TempoStand (Promotes independent bands and solo artists)
Opportunities
Mobile VAS - music, games, personal finance
Local language content
Niche magazines
???
Technology Commercialization
“The process of transforming technology
inventions into products / services that
have strong market demand.”
Technology Commercialization - Challenges
People
Inventor, Technologist, Entrepreneur, Investor
Intellectual Property
Cost, legalities
Incentives
Scientists
Professional managers
VCs
Regulation
Equity financing, Stock options
IP enforcement
Eco-system
Technology Commercialization - Challenges
R&D Funding → Commercialization Success
http://www.rcr.ku.edu/ra_101/2008_handouts/Prducts_of_Rsrch/int_prop_tech_com.pdf
Global R&D Metrics
http://www.venturecenter.co.in/nanoworkshop/Talks/Day1/Translating-Science-into-Technology070108.pdf
Global R&D Spend
India spends ~ $30B p.a.
http://www.venturecenter.co.in/nanoworkshop/Talks/Day2/DavidSecherPune2-stick.pdf
Science & Technology R&D OrganizationsAgharkar Research Institute (ARI)
Armament Research & development Establishment (ARDE)
Armed Forces Medical College (AFMC)
Automotive research Association of India (ARAI)
Centre for Development of Advanced Computing (C-DAC)
Centre for Materials for Electronics (C-MET)
Central Water and Power Research Station (CWPRS)
Defence Institute of Advanced Technology (DIAT)
Giant Metrewave Radio Telescope (GMRT), TIFR
High Energy Materials Research Laboratory (HEMRL)
Indian Institute of Science Education and Research (IISER)
Indian Institute of Tropical Meteorology (IITM)
Inter University Centre for Astronomy and Astrophysics (IUCAA)
Microbial Containment Centre (MCC), ICMR
National AIDS Research Institute (NARI)
National Centre for Cell Sciences (NCCS)
National Centre for Radio Astrophysics (NCRA)
National Chemical Laboratory (NCL) & many more . . .
Suitability for Commercialization
Clear value proposition
Translates to products / services
Large (fast growing) target market
TAM, SAM, SOM
“Edge”
IP, Know-how
Barriers to entry
Not too low, not too high
Platform technology
Multiple products
Standalone technology
Minimum complementary technologies/ investments required
Lab → Market
http://www.venturecenter.co.in/nanoworkshop/Talks/Day3/TechtransferPune.pdf
Lab → Market
Market research
Primary, secondary
Manufacturing capabilities
Prototype → Pilot → Mass, geographic location
Initial set of customers
Proof of concept
Risk identification
Quality, reliability
Legislation, regulation
Eg. Biotech
Product positioning
Sales & distribution, branding
Lab → Market (Options)
License
Quick
Terms – exclusivity, field of use, royalty rates, etc.
Incremental innovations
Spin-off
High risk, high return
Novel technology
Multiple competencies
Partner
Access to market / manufacturing / …
“Custom” innovation
Lab → Market (Accelerate)
$$$
Government
Professional investors
Market pull (instead of Technology push)
Sales & marketing expertise
Partner
Development (vs. research)
Manufacturing (vs. prototyping)
Effective networking & communication
http://www.steab.org/docs/Technology_Commercialization.pdf
IP (Patent) Commercialization
Assign (sell), license or assert
Carrot vs. stick
Considerations
Exclusivity, Geography, Field of use, Royalty rates
Cross-license
Litigation
Patent Portfolios
Eg. Qualcomm
$$$
IBM licensing revenue > $1B per year
Intermediaries
Intellectual Ventures
IPVALUE
Ocean Tomo
Incubators
Technology Incubators
Office space
Lab, prototyping facilities
Project (support) staff
Legalities (incorporation, etc.)
Patent filing
Technology (domain) experts
Entrepreneurs-in-residence
Beta customers
Seed fund
Access to angels, VCs
Several thousand worldwide; long time to success (decades!)
Venture Center
Affiliated to the NCL Innovation Park
Access to NCL R&D
Not-for-profit technology business incubator
Infrastructure
Office space
Labs
Learning
Library
Training
Seed fund?
Government
http://www.venturecenter.co.in/
IC2 Institute
Interdisciplinary research unit of The University of Texas at Austin
Master of Science in Technology Commercialization (MSTC)
One year degree program
Austin Technology Incubator
Works with early stage technology companies to increase their odds of
success and decrease their time to capital and markets
Global Commercialization Group
Lockheed Martin India Innovation Growth Program
2-year, nation-wide project, created to enhance the growth and
development of India’s entrepreneurial economy
Cambridge Center for Entrepreneurial Learning
Movement of human capital
Repeated business and technological experience, through serial and
habitual entrepreneurship
Narrow “gene pool”.
Flow of funds from venture capital is largely within a social network –
which possesses technical and managerial human capital
Pareto effect
Close friendships and tribal belonging
Sense of internal promiscuity
http://siteresources.worldbank.org/EDUCATION/Resources/278200-1119034601454/1295724-
1163541919153/WB_STI_Shai_Vyakarnam_25July07.ppt
Bayh-Dole
US, 1980, Public Law 96-517 = the Bayh-Dole Act
“rights to inventions resulting from government-sponsored research
at universities would be assigned to the universities.”
Enabled technology transfer, spin-offs, IP commercialization
Royalty sharing with inventors
Unintended consequences
For the love of money
Profits being (mis) used
Restrictive IP law
High prices
http://en.wikipedia.org/wiki/Bayh-Dole_Act
http://www.cogr.edu/docs/Anniversary.pdf
http://money.cnn.com/magazines/fortune/fortune_archive/2005/09/19/8272884/index.htm
India
NRDC
http://www.nrdcindia.com/
Angel Funding
Equity participation, ranging from Rs. 10 lakhs to Rs. 30 lakhs
DST
http://www.dst.gov.in/
Seed fund (grant)
DSIR
http://dsir.gov.in/tpdup/tepp/tepp.htm
Technopreneur Promotion Programme (TePP)
Upto Rs 50 lakhs per startup
Specific areas
Elderly
Clean tech
Social impact
Terms & conditions!
Bottom-line: We need
Skilled Labor
Scientists, engineers, experienced entrepreneurial management
Technology R&D
University, Corporate
Specialized Infrastructure
Clusters, Labs, Tech Parks
Risk Capital
Pre Commercialization, Pre Seed and Seed Capital
Technology transfer
University-Industry Centers; Fair, fast and transparent tech transfer policies
www.clevelandfed.org/Research/conferences/2006/november/ppt/SmithDonPresentation.ppt
Scientists → Entrepreneurs!
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=1260
Stephen Fodor, Scientist-Entrepreneur, Affymetrix
Corporate Entrepreneurship
“the process by which individuals inside organizations
pursue opportunities without regard to the resources they currently control”
The birth of new businesses within an existing firm Google Labs
The transformation of existing firms IBM ?!
Innovation 3M
Corporate Entrepreneurship – A Paradox?
Should companies should encourage entrepreneurship,
stretch goals, and risk taking?
Enron
Lehman
“What if Enron failed not in spite of its talent mind-set but
because of it? What if smart people are overrated?” –
Malcolm Gladwell
http://www.strategy-business.com/press/16635507/8276
Corporate Entrepreneurship – What CEOs Say
Any corporation presented with “lower hanging fruit” –
that is, growth opportunities that are less difficult to
capture – would naturally seek to avoid the risk and
complexity of entrepreneurship.
“Almost by definition, you won’t find entrepreneurs in
big companies. This is…an oxymoron.”
“The difference between big business folks and small
business folks is that when you have your payroll…on
your credit card…you pick up the phone and you make
the [sales] call.”
http://mba.tuck.dartmouth.edu/cgl/downloads/Corporate_Entrepreneurship.pdf
Corporate Entrepreneurship – 4 Models
Corporate Venturing New business ventures need to be managed separately from the
mainstream business.
Intra-preneurship Focuses on the individual employee; works on the assumption that
large firms put in place systems and structures that inhibit initiative.
Entrepreneurial Transformation Large firms should adapt to change by manipulating culture and
systems, inducing individuals to act in a more entrepreneurial way.
Bringing the Market Inside Focus on structural changes to encourage entrepreneurial behavior;
use of spin-offs and corporate venture capital.
http://www.strategy-business.com/press/16635507/8276
Corporate Entrepreneurship – Model # 3
http://www.strategy-business.com/press/16635507/8276
Factors Affecting Corporate Entrepreneurship
http://stdwww.iimahd.ernet.in/~sandeepk/esade.pdf
Incentives for Intrapreneurs
http://stdwww.iimahd.ernet.in/~sandeepk/esade.pdf
KPCB: Entrepreneurship in Big Companies
Balance - Planning vs. iterating
Enfranchising people vs. dictating to them
Managerial risk avoidance
Process vs. instinct
Incentive structures - rewarding failure
http://www.khoslaventures.com/presentations/RCApr2003.ppt
Social Entrepreneurship
“A social entrepreneur is someone who recognizes a
social problem and uses entrepreneurial principles
to organize, create, and manage a venture to make
social change.”
Bill Drayton (Ashoka)
Vinoba Bhave
Mohammad Yunus (Grameen)
http://www.fastcompany.com/social/2008/index.html
Social Entrepreneurship – Why?
Governmental efforts to solve social deficiencies
are ineffective
Eg. Rural lending
Conventional market-based ventures fail, given
limited profit potential
Income inequality, digital divide, winner-take-most
SE bridges the gap between markets and government
intervention
Conventional vs. Social Entrepreneurship
Conventional Social
Individualist vision Community vision
Focus on market Focus on solution of social issues
Performance measure = RoI Performance measure = Social
change/impact
Satisfy customers Protect people against social
risks
Motivated by wealth Motivated by ‘meaning’ / mission
Short/medium term Long term
Constituents: Customers,
Investors
Constituents: Donors, Subsidies,
Volunteers, Consumers
Social Entrepreneurship – Challenges
Resistance to change/innovation
Adversity to risk
Bad (or ill-timed) ideas
Performance metrics
Manpower
Concentrated power (BoD)
Concentrated risk
Microfinance
“Microfinance refers to small-scale financial services
for both credits and deposits, that are provided to
people who farm or fish or herd; operate small or
microenterprises where goods are produced,
recycled, repaired, or traded; provide services; work
for wages or commissions; gain income from renting
out small amounts of land, vehicles, draft animals, or
machinery and tools; and to other individuals and
local groups in developing countries, in both rural
and urban areas”
Microfinance
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=1377
Geoff Davis, Grameen Bank, CEO - Unitus
Grameen Bank
Extend credit to lowest income borrowers
No collateral
High credit risk
No contract enforcement
Daily interest rates upto 20%
Risk mitigation
Women
Lender-borrower relationships
http://www.skollworldforum.com/social-entrepreneurship/success-stories
Corporate Social Responsibility
CSR requires the company to seriously consider its acts in the context of a whole social system; the company is held responsible for the effects of its acts anywhere in that system
Not just profits!
Re-think: Advertising (cigarettes, alcohol)
Environment (resource consumption, waste)
Charity (vs. dividends to shareholders)
Access (quota?)
Corporate Social Responsibility - Types
http://www.philipkotlercenter.com/pdf-files/CSR.pdf
Globalization – The Death of Distance
http://www.amazon.com/Death-Distance-Communications-Revolution-Change/dp/0875848060/ref=pd_bxgy_b_img_a
Globalization – Fast & Furious
http://www.fastcompany.com/social/2008/index.html
Globalization – Types
Economic globalization
Characterized as long distance flows of goods, capital and
services as well as information
Walmart / Made in China
Political globalization
Characterized by a diffusion of government policies
Social security
Social globalization
Expressed as the spread of ideas, information, images & people
Steinbeis!
http://primavera.fee.uva.nl/PDFdocs/2007-16.pdf
Globalization – Impact on New Ventures
Language
Culture
Infrastructure
Regulation
Talent
IPR
Protectionism
Capital flows
Competition
http://primavera.fee.uva.nl/PDFdocs/2007-16.pdf
Globalization – Impact on Venture Capital
Big inflows to VC funds
Lower expected returns
Over-valuation / Bad ideas
Labor markets
Outsourcing baked in
Emerging markets
VC = PE?
Name a VC-funded seed-to-IPO story in India
Clean-tech
Chindia
http://www.siliconbeat.com/entries/2005/08/18/big_hairy_audacious_thoughts_on_transformation_in_vcland.html
Globalization – Impact on Micro-Entrepreneurship
MNCs
Retail chains vs. Mom & pop
Availability of jobs
Forced entrepreneurship
Exports
Economies of scale
Emigration
More so for the developing world?
Globalization – Impact on MSMEs in India
Import/export restrictions
Wheat
Exchange rate volatility
INR:USD (49 → 39 → 52)
US/UK crisis
Oct 08 - Apr 09: 7 consecutive monthly drop in
exports
Cost of credit
Interest rate cycles in India vs. China
Technology
IPR, FDI
Should a Start-up Focus on Going Global Right
Away?
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=1003
Randy Komisar, Entrepreneur, VC - KPCB
Crises – A Way of Life for Entrepreneurs?
Exhausted savings + friends & family funds
2-month delay in project schedule
Biggest customer walked away
Founders vs. BoD / VCs
No takers for next round of fund-raising
Acquisition deal fell through at the last minute
VP (Sales) quit
Where will next month’s salary come from?
Technology proof-of-concept failed
Target market much smaller than assumed
Google is now a competitor
CTO joined competitor, stole all IP
Crisis Management: Biotech
Critical dependence on Technology
Adopt resource-based view: Financial, organizational,
human, social, technological
http://www.higrosme.org/news/files/9_Patzelt.pdf
Crisis? Communicate!
Crisis management plan
Identify risk areas that could lead to an internal crisis, or
be compounded by an external one.
Crisis management team, with internal & external
spokespersons.
Call list – who needs to be contacted, in what order.
Create the message. Carefully.
Concerted effort – “all hands” meeting, followed by
regular updates.
Assume media / outside parties will find out.
Global Credit/Financial/Economic Crisis
http://venturebeat.com/2008/10/10/the-sequoia-rip-good-times-presentation-get-your-copy-here/
Crisis = Danger + Opportunity
Global Credit/Financial/Economic Crisis
Thank you very much!
Outflow of talent from corporations
Forced or otherwise
Lower cost of doing business
Rent, equipment, wages
Economics
Interest rates, government stimulus
Quality
2 Guys + Powerpoint
Innovation
Resource constraints
"Never let a crisis go to waste.”
Entrepreneurship in 7 hours
Introduction
Successful Entrepreneurs
Myths
Startup Lifecycle
VCs, Angels
Case
Corporate VC
Innovation
New media
Technology commercialization
Corporate entrepreneurship
Social entrepreneurship
Globalization
Crises
Conclusion
Entrepreneurship Programs
http://www.ncge.com/uploads/Creating_Forum_for_Entrepreneurship_Educators_India.ppt
Institute Course Title Focus Duration
Madurai Kamraj Univ PGD in
Entrepreneurship
Across Life Cycle
1 Year
EDII PGDBEM Across Life Cycle1 Year
TREC-STEP
Entrepreneurship
Venture Incubation
Prog
Pre Start up & Start up
S&T Entre. Dev Prog Across Life Cycle
SEMCOM BCom, BBA, BBAITM,
Master of E Business
Across Life Cycle
1 to 3 Years
SPJIMR
EPBA Across Life Cycle 18 Months
Family Managed
Business Programme
Across Life Cycle
2 Years
Indian Institute of
Entrepreneurship,
Guwahati
PGDME Across Life Cycle
1 Year
Entrepreneurship in India
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=1895
Tarun Khanna, Faculty Harvard Business School
Entrepreneurship Aspirations Around The
Globe
http://www.gemconsortium.org/about.aspx?page=pub_gem_global_reports
Entrepreneurship & GDP Around The Globe
http://www.gemconsortium.org/about.aspx?page=pub_gem_global_reports
Entrepreneurship . . .
is tough, but thrilling
is a marathon, not sprint
is neither in nor out of fashion
is not necessarily only a talent
is not about business plans
can be taught
can be merged with social responsibility
can exist in a corporation
can be your profession
is a state of mind !
Entrepreneurial Misjudgement / Psychology
Incentives
Stock options
“For every goal you put in front of someone, you should also put in place
a counter-goal to restrict gaming of the first goal.” – Andy Grove
Liking tendency
Hiring & firing
“Four of us friends started the company”
Doubt-avoidance
“Entrepreneurial judgment is the ability to tell the difference between a
situation that's not working but persistence and iteration will ultimately
prove it out, versus a situation that's not working and additional effort is a
destructive waste of time and radical change is necessary.”
Inconsistency-avoidance
Previous conclusions, human loyalties, reputation / identity, commitments
Everyone becomes a long-term investor in a bear market
http://blog.pmarca.com/2008/03/the-psychology.html
http://www.vinvesting.com/docs/munger/human_misjudgement.html
Entrepreneurship is Unreasonable
“The reasonable man adapts himself to the world; the unreasonable
one persists in trying to adapt the world to himself. Therefore, all
progress depends on the unreasonable man.”.
- George Bernard Shaw
Entrepreneurship in 2009
“Nothing spurs one into entrepreneurship like the sudden, unexpected
decline in his opportunity costs.”
Entrepreneurship
Kaushik Gala
2009
