ENTREPENEURSHIP

Creation of an innovative organization for the purpose of economic gain or growth, under conditions
of risk or uncertainty.
*Conditions for being entrepreneur*

Common components of Entrepreneurship (At least you should have 1):

1. Something new: Keep music recorded on small devices

2. Something better: CD’s instead of cassettes

3. New delivery system or distribution channel: Sams: First store to sell catalogues

Liverpool: First store to use “tarjeta de puntos”.

4. Entering an undeserved or new market (attending market niche)

Niche person: Use substitute products/services to satisfy 1 need. Drs. Needed to transport so they
could receive px.

HOW DOES THE ENVIRONMENT AFFET ENTREPENEURSHIP?

1. Open and free markets: Anybody can come up with something; but if it will be a business,
register it. Steve Jobs vs Bill Gates.

2. Deregulation: If it is new, there are NO REGULATIONS. Atomic Bomb. Mark Zuckerberg

created Facebook to stalk her girlfriend, until regulations where applied.

3. Political Climate: There are some countries that do not allow certain types of companies.

4. Economic and technological conditions: There have been changes in technology and
economy. Menonites used “antenas” to communicate, now they use cellphones.

5. Support system:

5.1. Availability of capital and loans

5.2. Tax rates and policies:

5.3. Support services: SBA, Venture capital, chambers of commerce, PYMES.

BUSINESS INCUBATION: Is a business/person, etc. that provides the conditions to a company to

start and maintain for a short-term. E.g: If you have an idea, you can go to ITESM and they may
help you to develop it if it is profitable.

A BUSINESS FIRM MAY BE ENTREPENEURIAL, DEPENDING UPON ITS INITIATIVES:

-Small business: One that is independently owned and operated and which is not dominant in its
field of operation.

*Defined size by number of employees (in Mexico, 1-60) or dollars of sales, depending upon
industry.

-Family business: One owned and managed mostly by people who are related by blood and/or
marriage.

*30% survive to second generation, 12% to the third and 3% to fourth and beyond.
RECO|MMENDATIONS TO ENSURE A SUCCESFUL FAMILY BUSINESS:

1. Commitment to resolving conflicts quickly

2. Clear job responsibilities and authority relationships

3. Explicit hiring criteria for family members

4. Plan for management transitions. If someone dies, WHAT?

5. Use of outside advisors/directors.

COMPETENCIES OF SUCCESFUL ENTREPENEURS:

-Need for achievement: Complete and get the thing ASAP.

COMMUNICATION COMPETENCY:

- Successful entrepreneurs score higher than 82% of the population on their ability to express
support and encouragement.

- Successful entrepreneurs succeed by helping other people (their employees, partners, investors,
suppliers) by becoming successful themselves.

STRATEGIC PRACTICES OF SUCCESFUL ENTREPRENEURS:

- Delivering products and services that are perceived as high quality and that are seen by its
customers or clients as adding value.

- Developing or improving products and services on a regular basis.

- Generating new customers or clients that expand revenue

- Focusing marketing expenditures and developing customer-oriented employees

- Maintaining financial control of the firm

- Establishing a strong commitment to ethical practices

HOW TO START A BUSINESS:

-Buy strategies: Disney and Avengers

-Start-up strategy: Have an idea and put in the business plan

-Franchise strategy

-Other options

PRINCIPLE OF AFFORDABLE LOSS:

The conscious determination of the amount of resources (money, time, and effort) that
entrepreneurs are willing to commit to an idea, which, in turn, influences the choice of strategies
and methods needed to generate early revenues.

Addresses tension between excessive analysis and quick action.

FINDING FUNDS:

-Entrepreneur, family, friends.

-Venture capitalist: a person who is willing to provide start-up capital, by getting profits as gain.
Shark tank.

-Business angel: they don’t get into the business; it can be grandma, business man, etc.

-Business incubators, government agencies: As ITESM. (More of this up)

-Private sectors, financial institutions. Bank, PYMES.

BUSINESS MODEL CANVAS: Alexander Osterwalder; “Making strategy, innovation… applicable”

Is a simple graphical template, describing 9 essential components:

The individual elements prompt

consideration of a business’ full scope,
while layout encourages thought about
how the pieces fit together.
BUSINESS PLAN: Describe the basic idea that is the foundation for the start-up and outlines how
that idea can be turned into reality.

Essential components:

1. Executive summary: (Introduction; made at the end)  “Coffee House, Inc., provides a hub for a
subculture of coffee, offering customers a place to purchase their own coffee-grinding supplies in
addition to enjoying the modern atmosphere of a coffee house.

2. Business description component: to describe you company and what it does  Where are you
located, who are the principals, legal structure, etc.

3. Marketing component

4. Location component

5. Management component

6. Financial component

7. Potential critical-risks component

8. Appendix and bibliography

FACTORS THAT FAVOR A GLOBAL START-UP: It is better to start a business in another

country, because of different factors.

1. HR are dispersed among countries

2. Foreign financing is better

3. Target customers require an international presence

4. Domestic inertia (tendency to continue on the present trajectory) could impede later efforts to
internationalize

5. Domestic market is too small to support expenses

6. Foreign competition will quickly enter the market.

POSSIBLE EXTRAS:

Inventions by Mexicans:

-Píldora anticonceptiva -Josephine Cochrane: lavavajillas

-Tinta indelible (Filiberto Vázquez) -Hedy Lamarr: precursor del wifi-bluetooth

-Graffiti (para removerlos) -Bette Smith: liquid paper

-Purificador de agua con nopal

-Traductor de lenguaje de lenguas

-Fusil Porfirio Díaz

Xicoahtl FX05: Fusil

Inventions by women:

-Mary Anderson: limpiaparabrisas

1. Product Service Description: describes the goods and services the business provides,
including the differentiator.

2. Market Analysis: Identify the main customer characteristics that impact the customer’s decision
to choose your product/service. Include demographic, social, and psychological profile analysis.

3. Marketing Analysis- Benchmarking:

4. Vision Statement: expresses the organization’s fundamental aspirations or dream. The

statement is written in simple present. It can inspire loyalty, hard work and innovation in
stakeholders. “Bring inspiration and innovation to every athlete* in the world. (*If you have a body,
you are an athlete.)” – Nike

5. Mission Statement: expresses the purpose or reason for existing (remarking its value
proposition), states the type of business it is in, briefly describes the customers’ needs it is aimed to
satisfy, the goods and services it provides and the market(s) it serves. It encourages organization’s
members to think and act strategically. The mission of Southwest Airlines is dedication to the
highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride,
and Company Spirit.

6. Organizational Goals: both qualitative and quantitative (SMART), long term.