The Art & Science of Entrepreneurship: People, Technology, and Innovation

The Art & Science of Entrepreneurship: People, Technology, and Innovation Distinguished Teaching Professor Carl H. Lindner College of Business University of Cincinnati Cincinnati, OH 18 November 2014 Fiord along the quay in Bodø, Norway Charles H. Matthews

Agenda What is Entrepreneurship? Footbridge, Xiando, China Charles H. Matthews A Conundrum People Technology Innovation/Tech in Practice Entrepreneurship Process Model Entrepreneurship and the Future Q & A 2

What is Entrepreneurship? Lindner College of Business University Dr. of Charles Cincinnati H. Matthews 3

Entrepreneurship ü Entrepreneurship is an economic phenomenon, a scholarly domain, and a teaching subject (Shane & Venkataram, 2000) ü Entrepreneurship is itself a multi-faceted, complex, social and economic phenomenon. (Auderetsch, 2002) ü It is a way of thinking! ü Above all it about starting a new venture 4

Entrepreneurship ü Entrepreneurship is the process of creating venture and value for multiple constituencies, including, but not limited to customers, employees, communities, and countries. ü Entrepreneurs are the individuals, acting alone or with others, who take the risk and action to create the venture and value for those multiple constituencies. ü Entrepreneurial is an adjective that has become meaningless through over use and misuse. 5

What is Entrepreneurship? Entrepreneurship R&D Marketing Sales Supply Chain Management Operations Accounting Finance Human Resources Information Systems 6

What is Entrepreneurship? Entrepreneurship Technology Discovery Engineering Innovation Invention New Knowledge Design Medicine Arts & Sciences 7

Where is Entrepreneurship? Individual Entrepreneurship: 95% of firms are Small and Medium Sized Enterprises Corporate Entrepreneurship: Large firms often need to compete through corporate entrepreneurship (i.e., innovation, venturing, and strategic renewal) Social Entrepreneurship: not-for-profit ventures 8

We understand life backwards But we live life forwards Søren Kierkegaard 9

The Entrepreneurship Conundrum 10

The Entrepreneurship Continuums Accelerated/Scalable Business Venture 12

The Entrepreneurship Continuums 13

The Entrepreneurship Continuums Accelerated/Scalable Business Venture 16

Sources of Innovation (Peter Drucker, 1986) 1. The unexpected 2. The incongruity 3. Innovation based on process need 4. Changes in industry or market structure 17

Sources of Innovation (Peter Drucker, 1986) 5. Demographics 6. Changes in perception, mood, and meaning 7. New knowledge 18

The Entrepreneurial Process Focus Product Customer Competition Process Environment Opportunity Resources Team Creativity Leadership Communication Entrepreneur Value Creation/Proposition Uncertainty Ambiguity Outside Forces

Entrepreneurship: People, Technology, and Innovation ü Entrepreneurship is creating venture and value ü Innovation is a new idea, device, or method; the act or process of introducing new ideas, devices or methods ü People and technology interact via multiple elements and competencies of innovation to create the nexus of innovation and entrepreneurship. 21

and Ralph Brueggemann 22

and Ralph Brueggemann 23

Preparing the next generation of entrepreneurs University of Cincinnati Center for Entrepreneurship Education & Research CARL H. LINDNER College of Business Carl H. Lindner Hall Cincinnati, OH 45221-0165 phone: (513) 556-7133 fax: (513) 556-5499 email: ecenter@uc.edu web: www.ecenter.uc.edu Dr. Ralph Katerberg: Professor and Department Head : Distinguished Professor and Founder Dr. Thomas Dalziel: Associate Professor and Director Dr. Sid Barton: Associate Professor Emeritus and Academic Director Family Business

In the LCB, since 1972, we have developed an entrepreneurship curriculum, teaching, research, and outreach agenda focusing on: ü new venture creation (individual, corporate, social); ü the formation, management, and growth of small, entrepreneurial, and family-owned ventures; ü faculty-guided, student-based field case consulting model. 25

Department of Management Global Entrepreneurship Management Major and Minor in International Business Major and Minor in Entrepreneurship Certificate in Family Business Certificate in Innovation Transformation Core and elective courses in Management, Leadership, Strategy, Organizational Behavior, and more. 26

UC Entrepreneurship By the Numbers: ü ~ 180 Undergraduate Entrepreneurship majors and double majors; 3 rd largest in LCB and 7 th largest at UC; ü ~ 45 MBA/MS students; ü 2 Doctoral students; ü The Outstanding Student in Business has been an Entrepreneurship Major two times in the four years; ü Over 460 students took at least one ENTR course at both the undergrad and grad. level during the academic year. 27

Award winning faculty and students across multiple departments and colleges ü Faculty include two recipients of the EXCEL Award, the LCB s highest award for teaching and a University Distinguished Teaching Professor; ü Award winning student venture plans; ü In the past six years, five start-ups with assistance from the Bearcat Bridge Fund. 28

Notable Success ü One of the top 50 schools for entrepreneurship (Success Magazine, March 2001) ü One of the Top 100 Entrepreneurial Colleges (Entrepreneur Magazine, April 2003, 2004, 2005) ü One of the Top 25 Undergrad. Entrepreneurship Programs (Princeton Review, Oct., 2008) 29

Curriculum Undergraduate Major 18 hrs. (BBA) Three Required Courses Students must complete six (6) courses in the Entrepreneurship/Family Business major. FIN 4008 New Venture Finance; ENTR 5070 Entrepreneurship; ENTR 5098 Capstone in Entrepreneurship 30

Curriculum Undergraduate Major 18 hrs. (BBA) Three Electives from the following ENTR 4001 Intro to Innovation; ENTR 4010 Mgmt. of Closely Held Firms; ENTR 4060 Fin. Mgmt. in Privately Held Firms; BLAW 4035 Legal Aspects of Entrepreneurship; ENTR 5001 Corporate Entrepreneurship; ACCT 6076 Not-for-Profit Accounting; MKTG 5000 Intro to Direct Marketing; ENTR 5099 Guided Study in Entrepreneurship; and ENTR 5093 Special Topics in Entrepreneurship 31

Curriculum Graduate (MBA) Concentration Courses offered: ü ENTR 7005 Entrepreneurship: New Venture Creation; ü ENTR 7015 Entrepreneurship & E-Business; ü ENTR 7025 Global Entrepreneurship; and ü ENTR 7035 Management of Closely Held and Family Business ü ENTR 7082* Special Topics: Managing and Growing the Entrepreneurial Venture ü ENTR 7089 Entrepreneurship and Strategy Implementation ü *Currently, students also have the opportunity to conduct faculty-guided, student-based field case studies in ENTR 7082 Special Topics. 32

Notable Success ü Field Case of the Year Int l Competition (SBI) 1 st Place ( 01, 03, 04, 08, 09, 10); 2 nd Place ( 09, 10); 3 rd Place ( 05, 07, ; 11) ü 8 th Annual Tepper Venture Challenge Carnegie Mellon University Top 6 out of 25 teams ü University of Oregon New Venture Championships Top five first year competing First Place Lightning Round 2002 Second Place Lightning Round 2006 ü MBA Jungle Business Plan Competition One of only eight teams out of 225 invited to final round of 8 ü Venture Labs (MOOT Corp ) 2012, Isciban Neural Engineering; 2 nd Runner- Up; 2006, Best New Technology, Progressive Cooling 33

Reality Check Cross-Town Business Plan Shoot Out ü Morning Preliminary Round 5 Schools, 2 teams each ü Announcement Luncheon ü Final Five ü Championship Round ü Awards Ceremony 34

Launched in 2005, the UC Spirit of Enterprise Graduate Business Plan Competition: ü Focus on new venture creation; ü Forum to road-test venture concept; ü Concept and skill enhancing; network driven. 35

UC Spirit of Enterprise Intercollegiate Graduate Business Plan Competition Past Participants Boston Univ. Brown Univ. Case Western Reserve U. Carnegie Melon Univ. Cornell Univ. DePaul Univ. Duke University Kennesaw State Univ. Loyola Marymount Univ. The Ohio State Univ. Univ. of Arizona Univ. of Cincinnati Univ. of Georgia Univ. of Illinois-Chicago Univ. of Louisville Univ. of Michigan Univ. of Manitoba Univ. of Oregon Univ. of Wisconsin Wake Forest Univ. Northern Kentucky U. Xavier Univ. 36

UC Spirit of Enterprise MBA Business Plan Competition Multiple Rounds. ü Exhibition, Reception and Tech Check ü Morning Preliminary Round 4 tracks 5 teams each ü Announcement Luncheon ü Final Five Track Winner + Wild Card ü Taxi/Limo Round ü Championship Round ü Awards Dinner 37

UC Spirit of Enterprise MBA Business Plan Competition 21-22 February 2013 $10,000 Cincom Systems Spirit of Enterprise Champion Prize, plus additional place prizes and Award for Best Technology Business Plan Automatic Bid to MOOT CORP Competition Networking, feedback, and more Additional Sponsors Include: ü Meridian Bioscience, Inc. ü Keating Muething Klekamp LLP ü Queen City Angels First Fund ü CincyTech ü Fort Washington Capital Advisors ü The Ohio Capital Fund ü CincyBusiness ü The Greater Cincinnati Venture Association ü River Cities Capital Funds ü Big Joe s Limos 38

Removing barriers Creating gateways ü New Venture Curriculum Course offerings ü New Venture Competitions Internal and external ü Bearcat Bridge Fund Seed capital for student ventures ü Bearcat Launch Pad Strategic alliances with area partners to provide an acceleration program and low cost office space for student and faculty venture launch. 39

ü New Venture Focus ü Technology ü Legal Environment ü Bio Tech ü Urban Competitiveness ü Global Markets ü Research ü Creating the Future Medicine Law DAAP LCB A&S Engineering CCM 40

Universities Support Gov t Grassroots Initiatives Network Angel Funds Incubators Events VC Funds 41

The Entrepreneurship Process ü Challenge Traditional Definitions of Value ü Entrepreneurship thrives on market inefficiencies ü Customers seek improvement 42

The State of Small Business ü Coping with uncertainty ü Managing effective cash flow management ü Accessing timely, accurate and usable information ü Leveraging social, mobile, viral media ü Establish trust with customers 43

Future Directions: Change Renewal Leadership 44

Preparing the next generation of entrepreneurs University of Cincinnati Center for Entrepreneurship Education & Research Lindner College of Business Carl H. Lindner Hall Cincinnati, OH 45221-0165 phone: (513) 556-7133 fax: (513) 556-5499 email: ecenter@uc.edu web: www.ecenter.uc.edu Questions and Answers

State of the art. Future of Transportation Virgin Galactic GoPro 60 Minutes Spirit of Enterprise Google Search Stories UC Center for Entrepreneurship Where good ideas come from VideoScribe Steve Johnson Environments that facilitate innovative 46

A certificate in Innovation Transformation. UC 3 conceptualize commercialize change! 47

Concept- Commercializa0on- Entrepreneurism Dr. Charles H. Matthews Lindner College of Business University of Cincinnati 48

Preparing the next generation of entrepreneurs University of Cincinnati Center for Entrepreneurship Education & Research Lindner College of Business Carl H. Lindner Hall Cincinnati, OH 45221-0165 phone: (513) 556-7133 fax: (513) 556-5499 email: ecenter@uc.edu web: www.ecenter.uc.edu Questions and Answers