The Entrepreneurial Mindset
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1 The Entrepreneurial Mindset The Entrepreneur and his Team School of Business and Economics TIMEResearch Area Innovation & Entrepreneurship Group (WIN)
2 THE ENTREPRENEUR
3 WHY?
4 HOW? TODAY Time lag FUTURE Attitude BEHAVIOR Attitude Subjective norm Self-efficacy Intention BEHAVIOR Intention models successfully predict behavior. [ ] in average, intentions explain about 30% of the variance in behavior. (Ajzen 1991) [1, 2] [1]
5 THEORY OF PLANNED BEHAVIOR ATTITUDE Desire to start a venture, degree of commitment SUBJECTIVE NORM External assessment and support of the business idea INTENTION Willingness to start a venture FOUNDATION SELF-EFFICACY Degree of confidence in performing necessary tasks
6 REFERENCES [1] Armitage, C. J., & Conner, M. (2001): Efficacy of the theory of planned behaviour: A meta analytic review. British journal of social psychology, 40(4), [2] Wicker, A. W. (1969): Attitudes versus actions: The relationship of verbal and overt behavioral responses to attitude objects. In: Journal of Social issues, 25(4),
7 WHY A TEAM?
8 WHAT IS NEEDED FOR A GOOD START?
9 FORMS OF CAPITAL NATURAL SOCIAL FINANCIAL PHYSICAL HUMAN The improved dexterity of a workman may be considered in the same light as a machine or instrument of trade, which facilitates and abridges labor, and which, though it costs a certain expense, repays that expense with a profit. (Adam Smith, 1776)
10 HUMAN CAPITAL Human capital results from human capital investments and personality HUMAN CAPITAL Capabilities & Knowledge INVESTMENT EDUCATION Educational level Advanced in-company training INVESTMENT EXPERIENCE Work experience Entrepreneurial experience Internships PERSONALITY
11 ENTREPRENEURIAL HUMAN CAPITAL Entrepreneurial human capital results from specific knowledge and capabilities ENTREPRENEURIAL CAPITAL Capabilities & Knowledge INVESTMENT EDUCATION Management studies Entrepreneurial training Leaning by doing INVESTMENT EXPERIENCE Self-employment Search for experienced team Exchange and cooperation PERSONALITY
12 SELF-ASSESSMENT Be honest to yourself! Do I have the necessary industry, market and technology know-how? Do I have the knowledge to accomplish those tasks which are critical to success? Is my required business networks big enough? [1]
13 WHAT CAN BE DONE TO FILL THE GAP? DEFINE Required know how, skills & expertise Important key tasks and action steps Prerequisites to success One-time or periodic Peripheral to key tasks Consistently Essential for business PARTNERSHIPS TEAM MEMBERS [1]
14 BUILDING UP A TEAM Who is required for a perfect team? Are my friends a good addition for the team? Which team size is the most effective and efficient? Is it better to work with strangers? How can tasks and responsibilities be divided fairly?
15 REFERENCES [1] Jeffry A. Timmons (2008): New Venture Creation: Entrepreneurship for the 21st Century
16 BUILDING UP YOUR TEAM
17 WHO SHOULD BE ON BOARD? It s all about finding and hiring people smarter than you. Richard Branson [1] [2]
18 HETEROGENEITY IN TEAMS SKILLS HETEROGENEITY PERSO- NALITY DISADVANTAGES ADVANTAGES Fast affective conflicts Time-consuming building of trust Harder to induce clarity of interests Dysfunctional effect Comprehensive knowledge Advanced information processing Better solutions based on fruitful argumentation
19 EFFECTIVE TEAMWORK INPUT PROCESS OUTPUT Team composition Adequate skills Heterogeneity Organization Experience Job experience Team structure Clear roles Control of tasks Size Leadership Available resources Training Technical support Targeted markets Organizational structure Reward of group achievement Control and monitoring Team process Open communication Support from each other Conflicts Discussion of common strategy Importance of individual input TEAM TASKS Complexity of tasks Insecurity of environment Independence Team effectiveness Performance Happiness [3]
20 EXAMPLE FOR CATEGORIZATION OF TEAM MEMBERS BELBIN S PERSONALITY TEST Implementer Team worker Plant Shaper Coordinator Monitor/ Evaluator Completer/ Finisher Resource Investigator Specialist Enables to assign the tasks fitting to each team member s personality. [4]
21 BALANCING DIFFERENT TYPES % % 36 % Actionoriented Peopleoriented Cerebraloriented 30 % Implementer Shaper Completer/ Finisher Coordinator Team Worker Resource Investigator Plant Monitor/ Evaluator Specialist For an ideal team, the 9 categories need to be in balance and one team member needs to manage them. [4]
22 PROCESS TO BUILD YOUR TEAM Check the necessity of building a new team Check the need for professional heterogeneity Check the need for personal heterogeneity Split tasks fair and according to personality Start teambuilding activities Discuss interests and establish trust Avoid affective conflicts How complex is the idea? Can one person have all the know-how? Does it have enough potential to support a larger team of founders? What skills are necessary for project success? What are the main aspects of the value chain? What kind of personalities are necessary for project success? Are all relevant personality-types united in the team? Who likes which tasks? Who can deal with which tasks due to education and experience? When is there still enough time to engage in teambuilding? Which heterogeneities have to be overcome here? How can direct communication be increased? How can a reached level of trust be sustained? How can affective conflicts be transformed into cognitive discussions? How can a common basis for interpretation be built? [3]
23 SUCCESSFUL ENTREPRENEURIAL TEAMS Cohesion If the company wins, everyone wins Integrity Do what is good for the company Commitment to the long haul The venture is not seen as get-rich-quick drill Teamwork High performance breeds strong friendship Harvest mind-set Capital gain is viewed as scorecard, not as monthly paycheck Sharing of the harvest After selling be fair to your key employees Commitment to value creation Making the pie bigger for everyone Equal inequality Determine responsibilities for key tasks and respective stock shares Fairness Stock shares and rewards might need to be adjusted over time [6]
24 REFERENCES [1] Jekalo (2015): Meet our MCM: Sir Richard Branson. URL: Access Date: [2] Lakhiani, V. (2016). The Code of the Extraordinary Mind: 10 Unconventional Laws to Redefine Your Life and Succeed On Your Own Terms. [3] Greve, G., Engelen, A. and Brettel, M., (2009): An Integrative View on Absorptive Capacity and National Culture. In: International Journal of Business Studies, 17(1), p. 22. [4] Belbin, R. M. (2012): Management teams. [5] Myers, I. B., McCaulley, M. H., Quenk, N. L., & Hammer, A. L. (1998): MBTI manual: A guide to the development and use of the Myers-Briggs Type Indicator (Vol. 3). [6] Jeffry A. Timmons (2008): New Venture Creation: Entrepreneurship for the 21st Century
25 PARTNERSHIPS
26 WHAT CAN BE DONE TO FILL THE GAP? DEFINE Required know how, skills & expertise Important key tasks and action steps Prerequisites to success One-time or periodic Peripheral to key tasks Consistently Essential for business PARTNERSHIPS TEAM MEMBERS [1]
27 SEVERAL STAKEHOLDERS OF A COMPANY EXTERN Shareholders Creditors Government Customer Employees Suppliers INTERN Founder Management Competition Society
28 ADVANTAGES OF PARTNERSHIPS New ideas & changing business goals Greater pool of resources & ideas Higher growth potential Higher focus on own expertise Shared risks and losses It is important for expert entrepreneurs to build up a network of committed partners.
29 MITIGATE UNCERTAINTIES & EXPAND RESOURCES negotiating with any and all stakeholders who are willing to make actual commitments to the project, [ ]. Furthermore, who comes on board determines the goals of the enterprise. Not vice versa. Saras D. Sarasvathy [1]
30 POTENTIAL EVALUATION PROCESS STEP I Visualize Stakeholder STEP II Mark Relationships STEP III Get connected Stakeholder I 0 0 Stakeholder II - IDEA Stakeholder IV Stakeholder III Stakeholder V
31 HELPFUL PARTNERSHIPS & New Means Make service more energy-efficient New Goal Environmental friendly image [2] New Means Reach more customers New Goal Make new energy monitoring service MyEnergy famous [3] [4, 5, 6]
32 THE ENTREPRENEURIAL MINDSET Unfold your entrepreneurial personality IDEA APPROACH GET YOURSELF STARTED TEAM LEAN START-UP Build your own team and establish relevant partnerships Create your business idea and evaluate its potential PITFALLS Apply the process of successful entrepreneurs
33 THE ENTREPRENEURIAL MINDSET Unfold your entrepreneurial personality Create your business idea and evaluate its potential IDEA APPROACH GET YOURSELF STARTED PITFALLS TEAM LEAN START-UP Build your own team and establish relevant partnerships? Get your company started in the best possible way Apply the process of successful entrepreneurs
34 REFERENCES [1] Sarasvathy, S. (2009): Effectuation. Elements of Entrepreneurial Expertise. [2] Ha, A. (2015): Airbnb Apologizes For Tone-Deaf Hotel Tax Ads, Will Take Them Down Immediately. URL: Access Date: [3] Connectedly (2016): Nest Labs. URL: Access Date: [4] Lacey, S. (2014): Nest s New Partnership With Airbnb Is About More Than Energy Savings. URL: Access Date: [5] Wikipedia the Free Encyclopedia (2016): Nest Labs. URL: Access Date: [6] Russel, J. (2016): Airbnb focuses on India s growing travel market. URL: airbnb-focuses-on-indias-growing-travel-market/. Access Date:
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