Entrepreneurship and Innovation

1. Entrepreneurship and Innovation Robert Chalfant, Director, Fitzgerald Institute for Entrepreneurial Studies University of Akron RobertC@UAkron.edu October 3, 2011 www.EECNEOhio.org Sponsored by the Burton D. Morgan Foundation

2. New Venture Formation www.EECNEOhio.org Sponsored by the Burton D. Morgan Foundation Creates economic and social mobility Is opportunity-centered and rewards talent and performance Entrepreneurship is not about religion, gender, skin color, social class, or national origin Women and a number of ethnic and racial groups are excelling at entrepreneurship

3. The Self-Employed Report: www.EECNEOhio.org Sponsored by the Burton D. Morgan Foundation • The highest level of personal satisfaction • Challenge • Pride • Remuneration ($) • Love of work - it is: • Invigorating • Energizing • Meaningful

4. Entrepreneurial Business Creations • Personal computers • Biotechnology • Wireless cable TV • Fast oil changes • PC software • Desktop information • Wireless communications /handheld devices/PDAs • Virtual imaging • Voice/Everything over IP • CAD/CAM • Information technology services • Cellular phone services • CD-ROM • Internet publishing and shopping • Desktop computing www.EECNEOhio.org

5. Pathways to Entrepreneurship • The home-based entrepreneur • The internet entrepreneur • The serial or portfolio entrepreneur • The traditional entrepreneur • The nonprofit entrepreneur • The corporate venturer www.EECNEOhio.org

6. Preparing to be an Entrepreneur • Find a mentor & build a network • Learn about & interviewentrepreneurs • Identify reasons for wanting to own a business • Analyze personality and business preferences • Improve or acquire critical skills • Study an industry www.EECNEOhio.org

7. The “Great Idea” www.EECNEOhio.org Sponsored by the Burton D. Morgan Foundation • Your Passion • You love doing it: A hobby or area of interest • Family members and friends recognize your strengths • You invested time and effort to learn the business • Worked in your area of interest • Forego the higher paycheck

8. Idea Multiplication www.EECNEOhio.org Sponsored by the Burton D. Morgan Foundation • Brainstorm • Grow the idea • “Yes, and… • All ideas are heard; none are rejected • Continual escalation and commitment

9. Brainstorming • Define your purpose • Choose participants • Choose a facilitator • Brainstorm spontaneously, copiously • No criticisms, no negatives • Record ideas in full view • Invent to the “void” • Resist becoming committed to one idea • Identify the most promising ideas • Refine and prioritize www.EECNEOhio.org

10. Multiply the Inputs www.EECNEOhio.org Sponsored by the Burton D. Morgan Foundation • Watch and Listen to Your Customer • Physically go to where they are • Observe their behavior • Ask questions about their use of the product • Create Concepts & Optimize • Drawings, mockups or models • Necessary or not, too expensive, practical or not

11. Sources of Innovation • Newspapers and magazines • Observation • Demographic shifts • Unexpected news events • Trends and patterns of change • New government regulation • Emerging industries www.EECNEOhio.org

12. Where Opportunities are Born • Technology sea change • Moore’s Law • Metcalf’s Law • Disruption • Market sea change • Value chain disruption, obsolescence, vulnerability • Deregulation • Societal sea change • Changes in ways we live, learn, work, etc. • Brontosaurus factor • Arrogance • Loss of peripheral vision • Deadened reflexes – turning the tanker • Depressed economy • Undervalued assets www.EECNEOhio.org

13. Higher Potential Ventures www.EECNEOhio.org Sponsored by the Burton D. Morgan Foundation Don’t think too small Smaller often means higher failure odds Entrepreneurship should not be a job substitute Odds for survival, growth, and a higher level of success, changes when the ventures reaches a size of 10-30 people with $2-$3 million in revenues

14. Evaluating www.EECNEOhio.org Sponsored by the Burton D. Morgan Foundation • Criteria for evaluating venture opportunity • Industry and market • Economics • Harvest issues • Competitive advantage issues • Management team issues • Personal criteria • Strategic differentiation

15. New Ventures www.EECNEOhio.org Sponsored by the Burton D. Morgan Foundation • Fundamental realities • Most new ventures are works in process and works of art • Most business plans are obsolete at the printer • Speed, industry knowledge, and adaptability are crucial • The key to succeeding is failing quickly and recouping quickly

16. SWOT: Internal Factors • Strengths • Business advantages? • Core competencies? • Making the most money? • Doing well? • Weaknesses • Avoiding? • Lack resources? • Doing Poorly? • Losing money? • Needs improvement? www.EECNEOhio.org

17. SWOT: External Factors • Opportunities • Beneficial trends? • Niches that competitors are missing? • New Technologies? • New needs of customers? • Threats • Obstacles to overcome? • Aggressive or successful competitors? • Negative economic conditions? • Government regulations? • Changing business climate? www.EECNEOhio.org

18. The Entrepreneurship Education Consortium (EEC) provides practical experiential and theoretical education to students in Northeast Ohio to prepare them to become entrepreneurs or intrapreneurs, create new ventures and build wealth for the region. The EEC consists of nine universities and colleges in Northeast Ohio: Ashland University, Baldwin Wallace College, Case Western Reserve University, Cleveland State University, Hiram College , John Carroll University, Kent State University, Lake Erie College, and The University of Akron. The Consortium was initiated with a grant from the Burton Morgan Foundation. www.EECNEOhio.org