Entrepreneurship and New Venture Development ITESM Zach Zacharakis & Julian Lange Arthur M. Blank Center of Entrepreneurship Babson College
Tradition of Entrepreneurial Leadership Gerber Products Company Daniel Gerber 20 Founder
Tradition of Entrepreneurial Leadership The Hamilton Companies Frederic Hamilton 48; Ferris Hamilton 50 Co- Founders
Tradition of Entrepreneurial Leadership Home Depot Arthur Blank 63 Co-Founder
Tradition of Entrepreneurial Leadership PepsiCo Roger Enrico 65 President CEO
Tradition of Entrepreneurial Leadership Cabletron Craig Benson 77 Founder
Tradition of Entrepreneurial Leadership Lycos Robert Davis M 85 President, CEO
Tradition of Entrepreneurial Leadership $1.5B Revenue 2002 $12.4% Growth $321M Net Income 2002 Bertarelli: $4.7B net worth (#64 on Forbes World s Richest People list) Winner America s Cup Serono Ernesto Bertarelli, 89 CEO
Tradition of Entrepreneurial Leadership Jiffy Lube Stephen Spinelli M 91 co-founder
Tradition of Entrepreneurial Leadership The up-and and-comers Ajay Bam (01), Founder MobilLime Gloria Ro Kolb (01) Founder, Fossa Benjapon Jivasantikarn (05) Founder, Benjapon s J.B. Schneider & Antonio Turco (05) Founders, P kolino Kirt Poss (01) Founder, VisEn Jim Poss (01) Founder Seahorse Power
School of Executive Education Top five programs worldwide for entrepreneurship (2001) Top 5 Entrepreneurship Program 2000-2004 Annual College Rankings, The Best Colleges - 2000, 2001, 2002. In 2000: Professors ranked #1 Babson ranked #2 in interaction of diverse population. Only part-time Evening MBA New England school in the top 15 (2002)
MBA Rankings: #1 among "Hidden Gems" "schools whose graduates sparkle." (2001, 2002 and 2003) #1 in Student Entrepreneurial Skills. Babson received "the highest number of perfect scores" from recruiters for its students' entrepreneurial skills (2001 - only year published) #2 among Top Teaching Schools for Entrepreneurship (2003) Top 10 Best Internships/Co-op (2002) #1 Entrepreneurial Dean's List (2001)
# 1 MBA Program for Entrepreneurship 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Babson College Arthur M. Blank Center for Entrepreneurship Opened September 1998
Babson College Arthur M. Blank Center for Entrepreneurship Opened September 1998
Babson College Hamilton Exhibition Hall Arthur M. Blank Center for Entrepreneurship
Babson College Rotunda Arthur M. Blank Center for Entrepreneurship
Babson College Hamilton Exhibition Hall Arthur M. Blank Center for Entrepreneurship
Babson College Hamilton Exhibition Hall Arthur M. Blank Center for Entrepreneurship
Babson College Hamilton Exhibition Hall Arthur M. Blank Center for Entrepreneurship
Babson College Hamilton Exhibition Hall Arthur M. Blank Center for Entrepreneurship
Zach s s Star of Success Success
Questions ❶Name? ❷PASSION?
Rules of Engagement ❶Active Participation Friendly environment Stretch yourself Carry the discussion ❷Tie back to implications for you ❸HAVE FUN
Course Objectives 1. You will be superior opportunity assessors and shapers. 2. You will understand the integration of people and process in entrepreneurship. 3. You will be able to write, articulate and present a business plan that will be ready for venture capitalist review. 4. You will have a better understanding of your personal entrepreneurial capacity.
French Word What is Entrepreneurship?
Entrepreneurship Defined Traditional Academic: Identifying an opportunity regardless of the resources currently available. Babson definitional (r)evolution: A way of thinking and acting that is opportunity obsessed, holistic in approach and leadership balanced. For the Purpose of Wealth Creation. next
Thinking means Due diligence Know your customer Listen to them, Talk to them, Work with them, Serve them Know your competitors Strengths and Weaknesses Market Know yourself back
Acting means Taking a risk do something even though you don t have all the facts and balancing that against the expected returns Being nimble in reaction to market needs and changes Having an options mentality back
Opportunity Obsessed Your plan is old as soon as it comes out of the printer Shaping is a way of life not a single exercise Balancing discipline and flexibility back
Holistic means Shaping the opportunity changes Team Resources A change in resources affects Opportunity Team The mix of TEAM members influences Opportunity Resources back
Leadership means Whatever goes wrong is my fault Whatever goes right is our success Being a good listener and follower Being a great servant back
Ecosystem Perspective Customers Venture Capital Angels Financial Support ENT Ecosystem Knowledge Universities Similar Companies Technical Skills Customers Professional Services Skilled Employee Pool Zacharakis, Shepherd & Coombs, 2003 Customers
Percentage of adultp population between 18-64 years 30% 25% 20% 15% 10% 5% 0% Hungary Japan Belgium Sweden Slovinia Netherlands Denmark Italy Finland South Africa Austria France Germany Spain Mexico Switzerland Croatia United Kingdom Greece Latvia Singapore Norway Canada Argentina Ireland Iceland Australia Chile Brazil United States China Jamaica New Zealand Total Entrepreneurship Activity (TEA) Index 2005 Thailand Venezuela
Opportunity motive Necessity motives Both New Zealand Iceland Netherlands Denmark Slovenia Belgium Australia Norway Switzerland United States Singapore Austria Spain Greece Japan Latvia Sweden Italy Canada Ireland Finland United Kingdom Chile Mexico Germany Thailand Argentina Venezuela Jamaica Hungary South Africa China Brazil 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Opportunity to Necessity Early-Stage Entrepreneurship France Croatia
Entrepreneurial Sector
Entrepreneurship 98% of all new jobs 50% of workforce 45% of GNP 67% of new inventions
Kondratieff
Failure n Year 1 Year 2 n Year 6
Tom Scott, aka The Juice Guy Founder of Nantucket Nectors Do something you love, keep at it. I know it sounds corny, but don t do it to try to get rich. It s not a game, it s a passion. And passion only comes from doing what you like.