Exercises To Practice Experimentation

6.
Exercises to practice experimentation

The practice of experimentation is best described as students acting in
order to learn. It requires students collecting new and real data as opposed
to depending on Google searches or rich university databases to validate
new concepts. Experimentation is a continuous cycle of act, learn, build,
and repeat. With every new idea and opportunity comes an associated set
of assumptions and questions. The practice of experimentation encour-
ages students to test every assumption and seek answers to critical ques-
tions. This chapter offers nine teaching Exercises related to the practice of
experimentation.
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232 Teaching entrepreneurship
EXERCISE: BUILDING GENDER ACUMEN AS AN

INCLUSIVE ENTREPRENEURIAL LEADERSHIP
COMPETENCE
AUTHOR: SUSAN G. DUFFY
CONNECTION TO PRACTICES:
Primary topics within entrepreneurship: entrepreneurial teams, gender
acumen.
Description
This multi-part Exercise introduces students to foundational concepts

related to gender and inclusive entrepreneurial leadership, and offers
opportunities to experiment with new learning. For the purposes of this
Exercise, inclusive entrepreneurial leadership is defined as a thought and
action paradigm that intentionally builds a diverse workforce and then
achieves an organizational environment in which all individuals are treated
fairly and respectfully, have equal access to opportunities and resources,
and are encouraged to contribute fully as entrepreneurial opportunities
are recognized, resourced, and incrementally advanced.
Gender acumen is a foundational understanding of key concepts,
terminology and research related to the social construction of gender as
well as a basic awareness of the implications of gender bias for individuals,
organizations and society.
The Exercise begins with an opportunity for students to identify their
own potential for implicit gender bias: unconscious and unquestioned
assumptions regarding the role, value, power and potential of someone
based on that person’s gender identity.
Students then examine these gendered bias assumptions as they relate
to the effectiveness of both the entrepreneur and the enterprise. Topics
explored may include, but are not limited to: idea generation (who is
heard, when and why?); innovation (are all options considered with equal
opportunity for execution?); communication (does everyone have equal
access to information needed to perform at peak?); and authority (who is
assumed to have power and why?).
The Exercise concludes with students designing simple pilot experiments
to apply an enhanced understanding of gender to create more inclusive and
productive outcomes in their own contexts (for example, their venture, a
family business, a corporate setting, or a school club or team).

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Exercises to practice experimentation 233
Usage Suggestions
Undergraduate or graduate general entrepreneurship, venture growth,

or entrepreneurial leadership courses. Ideal class size is 20–40 students.
This Exercise is also ideal for early-stage entrepreneurs who are building
company cultures for growth or corporate entrepreneurship, as well as
family business leaders interested in fostering more inclusive cultures.
Method of delivery: face to face, online.
Learning Objectives
●● Differentiate between masculine and feminine attributes and behav-

iors, and learn how these relate to perceptions of entrepreneurial
leadership success.
●● Recognize our own implicit gender assumptions and identify how
those assumptions may impact individual and enterprise-level
performance.
●● Design an immediately actionable behavior change experiment that
demonstrates increased gender acumen leading to more inclusive
entrepreneurial leadership.
Theoretical Foundations and Resources
These resources, with the exception of the Implicit Association Test, which
is listed as formal pre-work for this Exercise, are designed for your explo-
ration as the instructor. You may consider offering the list to students as a
start for additional self-study or develop an additional assignment such as
a written review, journal entry, or blog. You could also present one of the
videos in class and discuss it.
To explore examples of explicit and implicit bias, see:

‘Silent Beats’ (video), an African-American boy is confronted by the
harsh reality of assumptions and stereotypes in an ordinary trip to the
convenience store, accessed 20 December 2020 at https://www.youtube.
com/watch?v=76BboyrEl48.
‘Blind Spots’ (videos), a series of videos that review the basics of implicit
bias and its implications. A video discussion guide is also provided
below the videos on the same site; accessed 20 December 2020 at https://
www.pwc.com/us/en/about-us/blind-spots.html.

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For terminology definitions and examples of bias in action, watch:

‘Inclusion, exclusion, illusion and collusion’, accessed 14 December 2020
at https://www.youtube.com/watch?v=zdV8OpXhl2g.
‘Recognizing gender bias and barrier’s, accessed 14 December 2020 at
https://www.youtube.com/watch?v=YbMQ5YapnfE&list=TLPQMjYw
MjIwMjDD2esnrfAW3g&index=5.
For a basic review of the business case for gender diversity read/watch:
Kimmel, M. (2015), ‘Why gender equality is good for everyone, men
included’, accessed 20 December 2020 at https://www.ted.com/talks/mich
ael_kimmel_why_gender_equality_is_good_for_everyone_men_included.
Turner, C. (2017), ‘The business case for gender diversity’, accessed 20
December 2020 at http://www.huffingtonpost.com/caroline-turner/the-
business- case-for-gen_b_7963006.html.
For more examples of how gender bias plays out in entrepreneurship and
business contexts, see:
Coury, S., J. Huang, A. Kumar, S. Prince, A. Krivkovich and L. Yee (2020),
‘Women in the workplace 2020’, McKinsey & Company, accessed 20
December 2020 at https://www.mckinsey.com/featured-insights/gender-
equality/women-in-the-workplace-2018.
Gerzema, J. and M. D’Antonio, (2013), The Athena Doctrine: How
Women and the Men Who Think Like Them Will Rule the Future, San
Francisco, CA: Jossey-Bass.
Guillen, L. (2018), ‘Is the confidence gap between men and women a myth’,
Harvard Business Review, accessed 20 December 2020 at https://hbr.
org/2018/03/is-the-confidence-gap-between-men-and-women-a-myth.
Haller-Jordan, E.T. (2012), ‘How to avoid gender stereotypes’, TEDxZurich,
accessed 20 December 2020 at: https://www.youtube.com/watch?v=9Z
FNsJ0-acohttps://www.youtube.com/watch?v=9ZFNsJ0-aco.
Turban, S., L. Freeman and B. Waber (2017), ‘Study used sensors to show
that men and women are treated differently at work’, Harvard Business
Review, accessed at https://hbsp.harvard.edu/tu/2ba15180.
Walker, K., K. Bialik and P. van Kessel (2018), ‘Strong men, caring women:
how Americans describe what society values (and doesn’t) in each gender’,
Pew Research Center, accessed 20 December 2020 at: http://www.pewso-
cialtrends.org/interactives/strong-men-caring-women/?http://www.
pewsocialtrends.org/interactives/strong-men-caring-women/?.
Materials List
●● PowerPoint slides (Figures 6.1–6.7).

●● Flip chart pages with markers for scribing.

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Pre-work Required by Students
Take the Implicit Association Test for Gender and Careers, available at
https://implicit.harvard.edu/implicit/user/agg/blindspot/indexgc.htm. This
test is part of Project Implicit. More information can be found at https://
implicit.harvard.edu/implicit/user/pih/pih/index.jsp (accessed 20 December
2020).
Time Plan (90 minutes)
0:00–0:04 Review learning objectives for the session.

Before reviewing the learning objectives, share with the class
that today’s session is an “introduction” into a complex
phenomenon that has far-reaching consequences for all lead-
ers and organizations. Explain that the session uses “gender
bias” as one entry point to examining bias more generally.
Share that the students will be asked to examine their own
unconscious assumptions; identify how, collectively, these
kinds of assumptions may impact leadership and enterprise
outcomes; and then build on new awareness to design a small
experiment in their own environment to apply their enhanced
understanding of gender and inclusive leadership.
Facilitate and debrief the Rapid Fire Word Association

0:05–0:25
Exercise (Figure 6.1)
Organize students into four groups of five (for larger groups,
create additional groups for same word.) Each group is
randomly assigned one of these words:
1. Entrepreneur.
2. Leader.
3. Feminine.
4. Masculine.
(1 minute) Directions to each group. Generate as many

words as possible that you associate with your assigned term.
Consider behaviors, attributes, values, verbs, adjectives, exam-
ples of people you associate with the term, and any other
related ideas. List the words on flip chart paper with your
assigned term written in large letters across the top. Note: Alert
groups that if opposite terms come up, to list them separately.

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Rapid Fire Word Associations
Entrepreneur Leader
Feminine Masculine
Figure 6.1 Rapid Fire Word Associations slide
(5 minutes) Groups list associated words on the flip chart. At

the end of 5 minutes, each group posts its sheet in a designated
area of the meeting space or classroom. If more than one
group per topic, post next to each other.
(14 minutes) Debrief:
●
Have students look at each list created by other groups.
If in person, a quick gallery walk can be done, otherwise,
students can review a whiteboard or virtual board.
●
Generate student observations of the Exercise data: what
do they find interesting about the lists? What different
words might they have added to each list? What pat-
terns do they see across the lists? (Masculine is often
more dominantly associated with both Entrepreneur and
Leader.)
●
Content. Gender refers to culturally and socially con-
structed differences between females and males based on
meanings, beliefs, and practices that a group associates
with femininity or masculinity. All humans draw from
across the continuum of gendered attributes from feminine
to masculine. However, people may be penalized, underes-
timated, or misunderstood when they act differently from
how people expect them to act (i.e., men displaying their
feminine characteristics and women displaying their mas-
culine characteristics). These expectations may be more

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dramatic if based on cultural, religious, family, and indus-

try norms. Ask the class to offer examples of gender bias
that they have witnessed or experienced in these contexts
(e.g., how women are expected to quit work to care for
family, how men are expected to not show emotion, how
young boys and girls are socialized from an early age to be
either gentle or aggressive).
●
Discussion. How might these word associations impact
entrepreneurs? Enterprises? Society? What messages are
sent to entrepreneurs? Investors? The general public?
Option: use the comprehensive list of feminine, neutral
and masculine terms as a backdrop during discussion.
Source: Gerzema and D’Antonio (2013). See Figure 6.2.
Debrief Implicit Association Test and review definitions of bias

0:25–0:45
Remind students of the Implicit Association Test (IAT) pre-
work they completed and ask them to share their reaction to
the process of taking the test. Shift to results: what did or did
not surprise them about their test results? How do their IAT
results relate to the Exercise just completed?
●
Ask students to define explicit and implicit bias. Share
examples. Backfill with basic definitions. Explicit bias
– obvious, conscious, intentional; implicit bias – unques-
tioned, unconscious, often without intention (Figure 6.3).
● Discuss function of cognitive shortcuts for human survival
and information processing efficiency. Human survival:
inefficient to have to use precious brain energy every time
we encounter the same phenomenon so the brain creates
quick associations – bear/unsafe, family member/safe.
● Share characteristics of implicit bias construct (Figure 6.4).
● Share examples of research on implicit bias (Figure 6.5).
Solicit reactions.
● Share the concept of “gender schema” as the lens through
which we see the world (Figure 6.6). Solicit reactions.
● Discussion: drawing from experiences of both Exercises,
what do students now recognize about their own potential
for unconscious bias that they did not realize prior to the
Exercises? How could these biases (individually or collec-
tively) impact success as an entrepreneur or leader? What
type of limitations might these biases lead to for decision
makers? For the enterprise? (See Figure 6.7.)

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List of feminine, neutral and masculine terms slide
Gerzema and D’Antonio (2013).
Figure 6.2
Source:
238

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EXPLICIT
IMPLICIT
Figure 6.3 Explicit/implicit bias slide
IMPLICIT
Bias
• Unconscious. Hidden to perpetrator

• Pervasive: Everyone vulnerable
• Unaligned: To declared beliefs
• Favor: Our own in-groups
• Malleable: Can be unlearned
Figure 6.4 Characteristics of implicit bias construct slide
●
Transition: both of these Exercises demonstrate the
unconscious and often unquestioned assumptions we
have as human beings. Inclusive entrepreneurial lead-
ers strive for self-awareness of their own bias and
intentionally build environments where difference is wel-
come, appreciated and optimized. Let’s delve deeper into
why inclusive leadership and culture are so important
(Figure 6.7).
Define “inclusive entrepreneurial leadership” and “inclusive

0:45–0:55
enterprise cultures” using student input
Ask students to build on what they have learned about their
own experiences of implicit bias, and the class discussion thus
far, to define inclusive entrepreneurial leadership and inclusive

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Sample Implicit Bias Research
• Doctors more likely to give white patients pain killers

(Sabin and Greenwald, 2012)
• Women2Women work-conflict more problematic

(Sheppard and Aquino, 2013)
• British or “white” names more likely to get job interview

(Banerjee, Reitz, Oreopoulos, 2018)
• Afrocentric features lead to longer jail sentences

(Pizzi, Blair & Judd, 2005)
Sources: Citations are from: Sabin, J.A. and A.G. Greenwald (2012), ‘The influence of
implicit bias on treatment recommendations for 4 common pediatric conditions: pain,
urinary tract infection, attention deficit hyperactivity disorder, and asthma’, American
Journal of Public Health, 102 (5), 988–95; Sheppard, L.D. and K. Aquino (2013), ‘Much
ado about nothing? Observers’ problematization of women’s same-sex conflict at work’,
Academy of Management Perspectives, 27 (1), 52–62; Banerjee, R., Reitz, J.G. and P.
Oreopoulos (2018), ‘Do large employers treat racial minorities more fairly? An analysis of
Canadian field experiment data’, Canadian Public Policy, 44 (1), 1–12; and Blair, I.V., K.M.
Chapleau and C.M. Judd (2005), ‘The use of Afrocentric features as cues for judgment
in the presence of diagnostic information’, European Journal of Social Psychology, 35 (1),
59–68.
Figure 6.5 Examples of research on implicit bias slide
enterprise cultures. Facilitate an interactive dialogue in think/

pair/share format:
●
Think of your definition of what it means to be an inclusive
entrepreneurial leader and what an inclusive enterprise
culture might look like. What are the benefits of creating
inclusive cultures as you launch and grow ventures? What
are the benefits to inclusive cultures? Now pair with the
person next to you. How would you define an inclusive
culture? (5 minutes)
Instructor note: Recall the definition of inclusive entrepre-

neurial leadership. For the purposes of this Exercise, inclusive
entrepreneurial leadership is defined as a thought and action
paradigm that intentionally builds a diverse workforce and

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Gender SCHEMA Men consistently overrated
Women consistently underrated
What accentuates a man’s gender

gives him a small advantage
What accentuates a woman’s gender

results in a small loss
Set of implicit or
non-conscious hypotheses
Men and women hold same gender
about sex differences that
schemas and they begin in early
play a
childhood
central role in shaping
men’s and women’s lives
Most professionals and academics
profess egalitarian beliefs
Source: Virginia Valian (1998), Why So Slow? The Advancement of Women, Cambridge,
MA: MIT Press.
Figure 6.6 Gender schema concept slide
Entrepreneurial Leadership
Implications
Figure 6.7 Entrepreneurial leadership and culture slide
then achieves an organizational environment in which all

individuals are treated fairly and respectfully, have equal
access to opportunities and resources, and are encouraged to
contribute fully as entrepreneurial opportunities are recog-
nized, resourced, and incrementally advanced.
●
Facilitate full-class sharing of definitions and benefits.
Have students offer specific examples of how the elements
of inclusive cultures relate to entrepreneurial enterprises
and/or leadership success.

M4928-NECK_9781839105166_t.indd 241 26/03/2021 17:19

●
Ask students to critique their own inclusive entrepreneur-
ial leadership: how do they or don’t they embody these
characteristics in the leadership roles they currently have;
for example, founder teams, class projects, sports teams,
student clubs, and Greek life, jobs. For practitioners, focus
on their roles in the workplace. How do they promote
inclusive cultures in these same groups?
Gender enlightened inclusive entrepreneurial leader ideas and

0:55–1:20
experiments
(5 minutes) Instructions. Given the previous “mini-lecture”
on gender acumen, it is now time to help student generate
new ideas and associated experiments to begin testing and
socializing their ideas. This part of the Exercise is particularly
powerful with practitioners and executives who want to begin
building environments that are more inclusive immediately.
You may use any idea generation technique that you wish but
it is important to give students the same overall challenge:
How might I strive for self-awareness of my own gender bias

and intentionally build environments where gender difference is
welcome, appreciated, and optimized?
I like to have students work in groups, but this can also be an

individual Exercise. I also encourage my students to start with
small, actionable ideas. For example, one student might have an
idea to create a small meetup on campus. Or a practitioner may
convene a speaker series in their company. It is also important
to note that the ideas, themselves, are experiments and simply
socializing the idea with others is an act of experimentation.
Instructions to students
The question we will all work to answer is:
How might I strive for self-awareness of my own gender bias

and intentionally build environments where gender difference is
welcome, appreciated, and optimized?
In groups of 3–4, you are to generate three small, yet action-
able ideas – meaning you and your group members have the
ability to take immediate action on one or more of the ideas.
For each idea, describe the idea and how it answers the overall

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question above. Additionally, for each idea you need to iden-

tify three actions you will take to test, experiment, or socialize
each idea.
(10 minutes) Group work with flip charts and markers. If you
have the flexibility of time, I suggest giving students 15–20
minutes for this part of the Exercise.
(10 minutes) Create group pairings to share their ideas and

associated action steps. (5 minutes for each group). If this is an
individual Exercise, then pair individuals to share ideas just as
you would with groups.
1:20–1:30 Wrap and close

Ask for several ideas and experiments to share with the larger
group. Emphasize bias being addressed in examples shared.
Share or ask students for their input on how outcomes for the
entrepreneur and the enterprise may be potentially improved
through the experiments shared (i.e., greater engagement,
more ideas at the table, stronger team performance.) Review
learning objectives and how the session content addressed
each. Ask for any questions from the students.
Post-work Required by Students
Options include reflection on any of the session activities, a short report on

ideas and experiments generated, or a paper reflecting on outcomes by a
certain date, or assigned reading/viewing from resource list with reflection
post.
Teaching Tips
When teaching this session for the first time, and for those who would
not typically teach human or gender bias, it is very helpful to have read/
reviewed all of the suggested resources listed above. You do not need to be
a bias expert to be effective at teaching this session as the Exercises gener-
ate much of the content. This content can easily be adapted for work with
practitioners and made into an online module. Any of the videos from the
resource list can be added to class time if time allows.
Gender is a sensitive subject for many people. If a topic in this session
requires more time, offer to have an offline continued conversation, add
office hours with the institution’s diversity and inclusion expert(s), or

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encourage students to learn more from the resources and lead a future
deeper discussion. It is particularly important to recognize that a “binary”
approach to gender is outdated. Gender expression and identity should
be seen as a continuum of traits and behaviors that flow from feminine
to neutral to masculine. The most entrepreneurs use the style that is
appropriate for the context.
Attribution
These Exercises have been adapted from a common gender associa-

tion Exercise (original author unknown), the IAT and Babson’s Center
for Women’s Entrepreneurial Leadership. The slides (Figures 6.1–6.7)
are part of Susan G. Duffy (PhD)’s ‘Gender Acumen and Inclusive
Entrepreneurial Leadership’ PowerPoint deck. Sources are listed on the
slides as appropriate.

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EXERCISE: IDEA TESTING USING THE BUSINESS

MODEL CANVAS
AUTHOR: MARY D. GALE
Primary topics within entrepreneurship: ideation, design thinking, opportu-

nity evaluation, testing, business model development.
Description
The purpose of the Exercise is to help students visualize their initial and
ongoing revisions to their business model hypotheses in a single-page
business model template.
The term “business model” has many definitions, which can vary
depending on the context in which the term is used. In this case, the
business model refers to a set of business model elements that students
need to consider as they research and evaluate whether or not their idea
is feasible and viable. Students may use one of the formal business model
“canvas” tools. The adapted version of the original business model canvas
(Osterwalder and Pigneur, 2010), called the Babson Business Model
Canvas (BBMC), found in Figure 6.8, is one of these tools.
Students who are researching the feasibility and viability of a new ven-
ture idea might not understand and/or often lose sight of the elements that
make up a business model for their concept. In addition, they might not
understand or actively consider that any changes they make in one element
of the model may affect one or more of the other elements – or the essence
of the concept itself. This Exercise is a simple way to help students record
and track pivots in the any of the business model hypotheses that they
make during the course of their market research and experimentation. It
serves also as an ongoing reminder for students to analyze and reflect on
ways that each model element-change can affect the other parts and the
entirety of the model. These pivots require students to use analytical and
creative skills concurrently.
The instructor introduces the BBMC and the Exercise in a classroom
workshop at the beginning of a student or student team’s journey to
assess the feasibility or viability of a new venture idea. This may occur
at any point in a semester or year or more after students have developed
a new business idea. In the workshop, students are asked to generate
specific hypotheses for each element of the model (e.g., target market,
value proposition, and channels). Afterwards, students or teams are

M4928-NECK_9781839105166_t.indd 245 26/03/2021 17:19

The Babson Business Model Canvas

Key Partners Key Resources Value Proposition Differentiation Customer
Leading Segments
to Advantage
Key Metrics Channels
Cost Structure Revenue Structure
Source: Adapted from The Business Model Canvas (http://www.businessmodelgeneration.

com) by Angelo Santinelli. This work is licensed under the Creative Commons Attribution-
Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creative.commo
ns.org/licenses/by-sa/3.0/. This version arranged by Mary Gale.
Figure 6.8 Adapted Business Model Canvas
required to update their canvas at required intervals. This can be

achieved in two-week “sprints” or at other prescribed intervals. Each
iteration of business model elements are color-coded versions to reflect
a new modification as they learn more in their secondary and primary
research. Students do not start over with a fresh canvas for each ver-
sion. Instead, after testing and reflecting, they simply strike out what
they no longer believe and add, in a new color, their new hypotheses
in each block of the canvas where a change is needed. In addition, they
determine new research steps to confirm/falsify the new hypotheses and
list these in a short appendix. There is a sample business model with
these changes in Figure 6.9.
This Exercise, executed as homework at regular intervals of the project
or course, reminds students that one pivot will often change the elements
of the entire model. A series of three or four homework assignments
requires them to generate ideas and new hypotheses for all elements. Any
or all of these assignments may be graded at the instructor’s discretion.
The new assumptions hypotheses, and research plans tie together visually

M4928-NECK_9781839105166_t.indd 246 26/03/2021 17:19

The Babson Business Model Canvas
Key Partners Key Resources Value Proposition Differentiation Leading to Customer Segments
• Who are your key partners? • What key assets are required • What is it? Advantage • For whom are you creating value?
• What value is delivered by to deliver on the value • Who is it for? • What is truly unique about your • What is the Total Available Market?
each? proposition? (Human, Financial, • Why do they need it? product? • What is the Segmented Obtainable
• How critical are partners to Physical, Intellectual) • How important is the problem • Which attributes resonate with Market?
delivering the value • Are these resources available that you are solving for the your target customer? • Identify each potential market
proposition? to you at a reasonable cost? customer? • Is there a durable advantage? segment?
M4928-NECK_9781839105166_t.indd 247
• What key resources or activities • What can be rented, leased or • How does it work? Why? • Compare the needs of each
are delivered by each? borrowed rather than • What is unique or different? • Can the value be substantiated segment?
• What risks or uncertainties are purchased? quantitatively or qualitatively? • Where do they purchase?
reduced? • How do they purchase?
• Why do they purchase?
• What and how do they pay?
Key Metrics Channels • What relationship is required for
• How will you reach the each?
• What are the key measures of
customer? Each segment? • What other products or services
business model success?
• How are they reached today? do they want you to provide?
• How will value delivery to the
Direct? Indirect? Owned? Partnered? • How profitable is each segment?
customer be measured?
• What services/relationship is • What is your formula for success in
• How are performance
offered with each? terms of how customers view the
standards developed?
• Which channels work best? Value Proposition – Differentiation –
• How do these metrics inform
Channel – Pricing
247
your revenue and costs? • Are the channels integrated?
• Which channels are most cost
efficient?
Cost Structure Revenue Structure

• What are the cost drivers? (activities, resources, standards) • What are the drivers of revenue?
• What is the resource intensity of producing your product or service? • What are customers willing to pay? What are the pricing mechanisms?
• What is the unit cost structure? • How do they pay? Are there alternative methods of payment?
• Are there economies of scale or scope? • What is the average time to a sale? Frequency of purchase? Volume of purchase?
• What costs are fixed. Which costs are variable? • What is the contribution margin?
• Is the value proposition cost driven or value driven? • What are the breakeven points? (unit volume, sales volume)
• Where is there leverage in the cost model? • Where is there leverage in the revenue model?
• What is the cost to acquire a customer (CAC)? • What is the Customer Lifetime Value (CLTV)?
• What are the working capital requirements?
Source: Adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) by Angelo Santinelli. This work is licensed under
the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creative.commons.org/licenses/
by-sa/3.0/. This version arranged by Mary Gale.
Figure 6.9 Adapted Business Model Canvas with questions

26/03/2021 17:19
at each new color generation of the model and serve, along with the
crossed out ideas, to document the progress of students’ thinking for the
benefit of themselves and the instructor. The final BBMC at the end of a
project or course can be long. This in itself demonstrates that the entrepre-
neurial journey is not linear, but one of continuous learning, iteration and
reflection. Many students are proud of their journeys and surprised by its
twists and turns.
In the first, in-class, session I recommend that instructors initially invite
discussion of the concept of a business model, provide explanation and
usage instructions for the one-page BBMC tool, and note the pitfalls of
such a tool. The remainder of this first session comprises an in-class work-
shop where students or teams of students complete a one-page business
model document with their hypotheses for each element of the business
model for their idea.
Usage Suggestions
Undergraduate or graduate course involving student pursuit or evaluation

of an idea for a new venture. There are no class size constraints.
Learning Objectives
●● Use a one-page business model tool as a way for students to develop

specific ideas about how to transform an idea into a business in the
beginning as they develop new data.
●● Practice business model hypothesis generation and revision.
●● Reflect on and analyze how one change in one business model
element may require one or more changes in other elements of the
overall model.
The Exercise uses as a basis any of the numerous one-page documents

used as a tool for summarizing a business model. These are two primary
resources for educators and students.
Magretta, J. (2002), ‘Why business models matter’, Harvard Business

Review, 80 (5), 86–92, accessed 16 December 2020 at https://hbr.
org/2002/05/why-business-models-matter.
Osterwalder, A. and Y. Pigneur (2010), Business Model Generation: A

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Handbook for Visionaries, Game Changers, and Challengers, Hoboken,

NJ: John Wiley & Sons.
Ovans, A. (2015), ‘What is a business model’, Harvard Business Review
Digital Articles, 23 January, 2–7, accessed 16 December 2020 at https://
hbr.org/2015/01/what-is-a-business-model.
Materials List
●● Students should bring in their laptops. A smartphone might be used,

but a laptop is easier.
●● Internet access for completing the Business Model Canvas.
●● Access to an interactive version of the Business Model Canvas.
●● Flip chart paper that can be posted on the walls.
●● Flip chart markers.
Students should read an article or watch a video describing the Business

Model Canvas. Here are examples of each.
Articles:
Ovans, A. (2015), ‘What is a business model’, Harvard Business Review, 23
January, accessed 16 December 2020 at https://hbr.org/2015/01/what-is-a-
business-model.
Strategyzer (2019), ‘Business Model Canvas overview and pitfalls’, 11
December, accessed 16 December 2020 at https://www.strategyzer.com/
blog/imd-business-school-a-short-video-series-on-the-business-model-
canvas.
Videos:
Osterwalder explaining the Business Model Canvas, accessed 16 December
2020 at https://www.youtube.com/watch?v=RpFiL-1TVLw.
Stragegyzer’s explanation of the Business Model Canvas, accessed 16
December 2020 at https://www.youtube.com/watch?v=QoAOzMTLP5s.
Time Plan (60 minutes but could be expanded to 90 minutes)
0:00–0:10 Introduction to business models. In this section, examine dif-

ferent definitions of “business model.” Ask for student answers
to the question, “What is a business model?” Encourage dialog
between students with different definitions. There are no “right
answers.” However, make the point that a sound business

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model will make or break a new venture because flaws – even in

one element – will compromise feasibility and execution.
In addition, explain why hypotheses are important for
developing ideas into business opportunities and why they
are useful for helping entrepreneurs create iterative market
tests.
●
Why they help students develop opportunities that are
more robust. They help students turn a “big, vague idea”
into a more concrete vision of a business, including who
it is for, why it is valuable, and what steps are needed to
bring it to market and ensure profitability, for example,
channels, marketing strategies and tactics, and partners.
●
How they help in the creation of market tests. Hypotheses
lead to the key questions that students must ask. Students
can generate creative ways to prove (often, more impor-
tantly, disprove) hypotheses. The hypotheses give direction
for market research and help students avoid the common
trap of “just going after any information.” Trying to
prove or falsify a hypothesis keeps students on track and
focused on the most important factors to research. Market
tests to prove or disprove hypotheses can include second-
ary research, customer and industry expert interviews,
comparison with competitors, or analogous products or
services.
0:10–0:25 How to make a one-page canvas. Because of the popularity of

the original BMC, instructors may have their own preferred
way to introduce and explain a business model template. If
not, here is a suggestion: Show a slide of a one-page business
model template that is blank except for the names of the ele-
ments. Pass out flip-chart sheets to students in random teams
of two or three, or in their already formed business project
teams. Ask then to create a business model template for all
elements of the same, particular business. You may use a well-
known company or make up a fun topic such as “Equipment
to extinguish underwater fires.”
After they have finished, ask students to post their com-
pleted templates. Using an “apparently silly” example may
generate greater understanding of important differences. For
example, in the underwater fire equipment example, there
may be distinctly different customer targets, e.g., offshore oil

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drillers, fire departments, marine patrol, and Coast Guard.

The marketing channels to reach these different customers will
vary. The other elements will change as well.
In this stage of the Exercise, coach students to limit their
entries for each block to one very specific phrase or sentence,
which will limit generic answers, for example, “social media”
or long, tortuous descriptions. Record student answers on the
slide or on a board on which is drawn a large, blank canvas.
0:25–0:35 Allow time for students to complete their canvas templates on

flip-chart paper.
0:35–0:45 Debrief the Exercise. Invite students to look at each other’s

posted easel paper submissions and mark their top three with
a check mark. Post a simple set of criteria for students to
consider as they evaluate each other’s templates:
●
Are the hypotheses specific (not generic or vague)?
●
Does every hypothesis relate to the overall business idea?
Are any “off-target?”
●
Are the individual hypotheses internally consistent? Does
the value proposition reflect the needs of the target seg-
ment? Are the channels powerful ways to reach the target
segment? Using the underwater fire equipment example,
it doesn’t make sense to create Facebook advertisements,
when a direct sales or industry-targeted campaign would
make more sense.
●
Do revenue streams seem feasible given the target segment
and the channel?
Note: Instructors may choose to introduce revenue and cost

considerations after students have determined the “customer-
facing elements” of the business model: target segment, value
proposition, channels, product, or service solution.
0:45–0:50 After the debrief, ask students to take a different color marker

and cross out the hypotheses that don’t work or fit with the
overall business model. Then, using this new marker, they
should write a new hypothesis in the same block. This will be
the method they will follow for the rest of the project after
iterative market tests.

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0:50–0:60 Summarize the Exercise using the following talking points:
●
Every point you write on your templates is a hypothesis
– not a truth. This will be so for your own business model
templates. Your job is to figure out how to articulate,
prove, disprove, and change the model and the elements
for the better as you gather more information.
●
The best business models are those whose elements tie
together in an integrated whole.
0:60–0:90 If time permits, ask individual students or teams of students

to begin to complete their first canvas in class. This will give
you, the instructor, a chance to answer questions in real time.
Teaching Tips
The business modeling process can be difficult for students to understand

at first. They may need help to understand how this approach fits in with
other tasks and skills that feasibility/viability work requires. The most
common pitfalls are:
●● Creating a business model canvas and then putting it “on the shelf”
rather than using it as a tool for generating focused interview guides
for specific target segments or pointed secondary research plans.
●● Not using the canvas as a way to update hypotheses, simply and
visually, when students develop new data that falsifies previous
ideas. An original hypothesis that is crossed out and replaced by a
new hypothesis in the same block is a powerful way to show progress
and the students’ depth of discovery and reflection.
●● Students may want to keep track of their hypotheses and changes
in an online version of a BMC. This is fine as long as all data can
be saved and students are able to see their evolution in thinking and
pivots.

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EXERCISE: MINDSHIFTS
AUTHOR: HEIDI M. NECK
Primary topics within entrepreneurship: failure, testing, mindset.
Description
“Mindshifts” comprises three assignments that are assigned at different

points in a course. Mindshift 1 is assigned in the beginning; mindshift
2 is assigned in the middle; and mindshift 3 is assigned toward the end.
Each mindshift requires the student to complete a small activity, but
each mindshift increases in the level of courage and creativity needed to
complete the task. Students complete each activity and post what they
do to a class discussion board (online) so classmates can see and respond.
Their post must also connect to Babson’s methodology of Entrepreneurial
Thought & Action™ (ET&A), but you can have the posting connect to
any coursework that is appropriate.
Usage Suggestions
Undergraduate and graduate, or any level where you are trying to build
the courage of students.
Learning Objectives
●● Feel the fear and exhilaration of trying something new.

●● Develop the courage to take action when you cannot predict the
outcomes.
●● Conquer fears of failure and rejection.
Neck, H., C. Neck and E. Murray (2020a), ‘Activating the entrepreneurial

mindset’, Entrepreneurship: The Practice & Mindset, Thousand Oaks,
CA: Sage, pp. 30–54.
Neck, H., C. Neck and E. Murray (2020b), ‘Anticipating failure’,

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Entrepreneurship: The Practice & Mindset, Thousand Oaks, CA: Sage,

pp. 256–78.
Neck, H., C. Neck and E. Murray (2020c), ‘Practicing entrepreneurship’,
Entrepreneurship: The Practice & Mindset, Thousand Oaks, CA: Sage,
pp. 2–29.
Rejection Therapy with Jia Jiang, see www.rejectiontherapy.com (accessed
11 July 2020).
Jiang, J. (2017), ‘What I learned from 100 days of rejection’, accessed 11
July 2020 at https://www.youtube.com/watch?v=-vZXgApsPCQ.
Materials List
None.
None.
Time Plan
Mindshifts is an assignment that takes place outside class. I assign

three mindshift activities, but more can be used. The course where I
use mindshifts is a seven-week, MBA introduction to entrepreneurship
course. Mindshift 1 is assigned at the beginning of the course (due in week
2). Mindshift 2 is assigned in the middle of the course (due in week 4).
Mindshift 3 is assigned toward the end of the course (due in week 6)
On the assignment page posted for the students, the following are
included with all mindshift instructions:
●● In this course, entrepreneurship is defined as a way of thinking,

acting, and being that combines the ability to find or create new
opportunities with the courage to act on them (Neck et al., 2020c,
p. 3).
●● A mindshift is a small activity taken to help build courage. You
will complete three mindshifts during this course. Each mindshift
requires an increasing level of courage and creativity.
I only assign one mindshift at a time. In other words, the students will
not see Mindshift 2 until after the due date for Mindshift 1. Below is the
assignment description for each.

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Mindshift 1: Do something entrepreneurial.
Do something entrepreneurial and post what you did to the Mindshift

1 discussion board. You will not see what others have posted until you
post. Connect your actions to the components of ET&A discussed in
class. Make sure you are doing something really entrepreneurial. The
word “entrepreneurial” is undefined on purpose, but the previous defini-
tion of entrepreneurship (above) may be helpful. After you post, make
sure you respond to some of your classmates’ postings. Have fun and go
entrepreneur!
Mindshift 2: Do something you’ve never done before.
In Mindshift 1 you were asked to be entrepreneurial. This could or could

not have included doing something new. For this mindset, doing some-
thing you’ve never done before is required. Post what you did, what you
learned, and how you felt to the Mindshift 2 discussion board. You will
not see what other have posted until you post. After you post, make sure
you respond to some of your classmates’ postings. Be bold. Have fun and
go entrepreneur.
Mindshift 3: Do something where you know you will get rejected.
Do something where you think you will get rejected. Before completing
this mindshift, it’s important to watch the Ted Talk, What I learned from
100 Days of Rejection (15 minutes; see resources list). Post what you did,
what you learned, and how you felt to the Mindshift 3 discussion board.
You will not see what other have posted until you post. After you post,
make sure you respond to some of your classmates’ postings. Embrace the
uncertainty and fear.
After each Mindshift is completed, students should post what they did to a
discussion board in the course management system. If possible, set up the
discussion board so that students cannot see the posts of others until they
first post. Your discussion board question can relate to course content or
you might suggest the students post what they did, how they felt, and what
they learned about themselves through each activity.

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Teaching Tips
The course where I use this assignment is a seven-week course. For a full-
length semester I would suggest using up to six mindshifts. Each mindshift
in my course is worth five points. I have found that without grading, I
don’t get 100 percent participation in the activities. Three of the five points
are awarded based on creativity and effort; the remaining two points are
based on them actively participating in the discussion board by comment-
ing on their peers’ postings. Instructor feedback is incredibly important
on the first mindshift because it sets your expectations for the other, more
difficult, mindshifts that follow. After each mindshift has been completed,
I will acknowledge and celebrate a few students that did really interesting
things so other students, perhaps those giving less effort, can be inspired
to try harder – or at least understand why they may not have received all
five points.

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EXERCISE: SUPPLY CHAIN INNOVATION TO

REDUCE ECOLOGICAL IMPACT
AUTHOR: VIKKI L. RODGERS
Primary topics within entrepreneurship: design thinking, testing, resource

acquisition, scale and managing growth.
Description
This Exercise introduces students to the ecological impact of new products

they have developed or may be developing. Using practical systems-
approaches in business sustainability, students select a product of their
own choosing (or creation) to perform an ecological impact assessment
of the supply chain. They must then collaborate with their group to
synthesize their individual research into a systems map. In class students
are introduced to the concepts of: supply cycles, the circular economy,
and industrial symbiosis as ways to change how business is to be more
ecologically responsible. The students are then empowered to design an
industrial symbiosis for their product, by suggesting partnerships with
other companies to transform waste into useful resources.
Usage Suggestions
Undergraduate or graduate general entrepreneurship course. No class size

constraints. This Exercise can accommodate both a small or large course.
Learning Objectives
●● Estimate ecological impact of the supply chain for your product.

●● Design an industrial symbiosis for your product by identifying
pathways for partnerships.
●● Evaluate the ecological benefits of the changes proposed.

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Benyus, J. (1997), ‘How will we conduct business? Closing the loops in

commerce: running a business like a redwood forest’, in J. Benyus,
Biomimicry: Innovation Inspired by Nature, New York: Morrow,
pp. 238–84.
Biomimcry Institute (2020), ‘What is biomimicry?’, accessed 12 February
2020 at https://biomimicry.org/what-is-biomimicry/
Braungart, M. and W. McDonough (2002), Cradle to Cradle: Remaking
the Way We Make Things, New York: North Point Press.
Chertow, M.R. (2007), ‘“Uncovering” industrial symbiosis’, Journal of
Industrial Ecology, 11 (1), 11–30.
Childress, L. (2017), ‘Lessons from China’s industrial symbiosis leader-
ship’, GreenBiz, 8 December, accessed 12 February 2020 at https://www.
greenbiz.com/article/lessons-chinas-industrial-symbiosis-leadership.
Ellen MacArthur Foundation (2017), ‘Effective industrial symbiosis’,
Case Studies, accessed 12 February 2020 at https://www.ellenmacarthur
foundation.org/case-studies/effective-industrial-symbiosis.
Herczeg, G., R. Akkerman and M.Z. Hauschild (2018), ‘Supply chain
collaboration in industrial symbiosis networks’, Journal of Cleaner
Production, 171 (10), 1058–67.
Lombardi, D.R. and P. Laybourn (2012), ‘Redefining industrial sym-
biosis: crossing academic-practitioner boundaries’, Journal of Industrial
Ecology, 16 (1), 28–37.
New, S. (2010), ‘The transparent supply chain’, Harvard Business Review,
October, accessed 12 February 2020 at https://hbr.org/2010/10/the-trans
parent-supply-chain.
Materials List
●● Students should bring in their laptop. A smartphone can also be

used, but a laptop is easier.
●● Internet access for product company research.
●● Product supply chain impact worksheet (provided at the end of this
Exercise). A completed example is provided for instructors.
●● Poster paper and markers or whiteboard space for in-class mapping
activity.
Create student groups of two to four students and ask each group to select
one relatively simple product they are interested in. Or, in the case of an

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entrepreneurship course where students are working on new product ideas,

the teams may use their own idea. The product must have between five
and 20 raw materials or ingredients, including the packaging and limited
hazardous materials created as bi-products. Encourage student groups to
select an exact brand and size for the product. Categories of products can
be toys, food, beauty products, clothing, office or household items, or other.
Students should be given the following article to read to explain
background information on ecological impact, supply chain and life cycle
analysis:
Bové, A. and S. Swartz (2016). ‘Starting at the source: sustainability
in supply chains’, McKinsey & Company, accessed 23 March 2020 at
https://www.mckinsey.com/business-functions/sustainability/our-insights/
starting-at-the-source-sustainability-in-supply-chains.
Students should come to class having already individually researched
their product’s supply chain to begin estimating ecological impacts as
specifically as possible. It should be made clear that companies typically
do not clearly advertise the pollution and waste they produce across their
supply chain, so students will need to make some reasonable and justified
assumptions in order to estimate this. The desire from customers for
greater transparency in supply chains should be noted. Guidelines for
research are provided in the worksheet. Groups should not work together
until the in-class portion of the activity outlined below.
Time Plan (one class period of 90 minutes, but could substitute more out-
of-class work if needed, or spread to two classes)
0:00–0:20
Students work with their groups to synthesize and agree upon
their ecological impacts across the supply chain for their
product. They should collaborate to bring their individual
research in their worksheets together and create a supply chain
impact map (guidelines provided at the end of this Exercise).
Encourage the teams to be as specific as possible in the types
of pollution, bi-products and waste.
0:20–0:25
As most of the products that students choose will probably have
a linear supply chain, discuss linear supply chains, their problems
of “take, make, waste,” and the transformation of linear supply
chains to supply cycles in an effort to move to a circular economy
with zero waste. Images found on the following websites can help
you illustrate to the students the difference between a linear and
circular economy: https://www.government.nl/topics/circular-

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economy/from-a-linear-to-a-circular-economy and http://www.

sbcvaluechain.org.nz/overview/what-is-a-value-chain.
Three example of companies/products that have transitioned
from a linear chain to a supply cycle are described at https://igps.
net/blog/2019/10/31/three-real-world-examples-of-a-circular-su
pply-chain/.
0:25–0:35 As a way to move toward a supply cycle with minimal waste,

introduce the concept of industrial symbiosis. Explain that
the goal of industrial symbiosis is to partner with other
companies to transform waste outputs from one process into
raw materials for something else, similar to how it takes place
in nature. This involves partnering with companies from dif-
ferent industries. Consider showing some of the images and
discussing definitions available at http://industrialsymbiosing.
com/2019/05/definition-industrial-symbiosis/.
Also, provide some specific examples, such as the first full
realization of industrial symbiosis at Kalundborg in Denmark.
Kalundborg is an eco-industrial park in which the companies
and municipality in the region collaborate to exchange mate-
rial wastes, energy water and information, thereby minimizing
waste. (See the 2-minute video at http://www.symbiosis.dk/en/
kalundborg-symbiosis-vision-and-goals-2018/).
0:35–1:10 Ask students to return to their groups and, using their supply

chain impact maps, challenge them to design an industrial
symbiosis for their product where at least three “waste”
streams are exchanged with other companies as resources.
To do this, students will need to undertake some research to
find appropriate companies to partner with that could use the
waste streams that their product creates. Be sure to stress that
these other companies can be from very different industries
and that this should not just be a way of recycling their
product. They should demonstrate these partnerships using
a different color marker directly on their maps to present to
the class.
1:10–1:25 Have groups report to the class, showing the partnerships they

propose for their industrial symbiosis.
1:25–1:30
Mention any overall patterns that groups came up with and

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begin a discussion of the value and obstacles of company

partnerships to creating industrial symbioses.
Students should evaluate the reduction in ecological impact from the

industrial symbiosis they propose. They should also reflect on the value
and obstacles of company partnerships to create industrial symbioses and
evaluate examples to discover what is needed for them to work well. This
can be a written analysis or an online discussion.
Teaching Tips
Selecting appropriate products: be sure to provide feedback to students

as they choose their products. The products should be relatively simple
in their raw materials and limited hazardous materials produced as bi-
products, as these wastes cannot be utilized by other companies. Remind
students to include the packaging of their products, as this is often forgot-
ten. A few examples of products that work well for this are specific brands
of chapstick, potato chips, Barbie doll, eyeliner pencil, leather-bound
notebook, sandals, Band-Aids, backpack, cereal, or jeans. If there is a
desire to keep it simpler then you might consider identifying the product
for the student groups.
Estimating ecological impact: this can be challenging and sometimes frus-

trating for students, but it is important for them to realize that very few
companies have fully transparent supply chains (an example of one that
does and can be discussed is Everlane: https://www.everlane.com/about).
Justified assumptions can be made for the ecological impact estimations.
An example would be finding out the ecological impacts of how much
water is used to manufacture steel on average and then assuming that the
company manufactures steel using this average amount of water.
Creating an industrial symbiosis: encourage students to be creative in

thinking of partnering with companies from different types of industries,
but the proposed partnerships also need to be feasible in converting waste
into raw materials.

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Product Supply Chain Impact Worksheet
Product chosen (include specific brand and size):
Please complete the following tables as best you can, using reasonable
and justified assumptions when needed. In doing this research, please
consider the likely geography of where materials come from and where
they are manufactured to consider different communities of people that
are impacted from different areas.
Raw Materials Research
List major Details on Estimation of pollution produced

raw materials/ where raw in extraction/creation of materials
ingredients materials (specific air, water, or solid waste)
and packaging come from

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Manufacturing Research
Additional resources used during Bi-products during

manufacture but not listed as raw manufacturing process
materials (e.g., water, energy)
Supply Chain Impact Map Guidelines (to create for your product as a
group in class):
Raw
Inputs Outputs*
materials
Inputs Manufacturing Outputs*
Note: * Bi-products or waste.

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Product Supply Chain Example for Instructor
Product chosen (include specific brand and size): Levi’s 501 Jeans
(Women’s)
Raw Materials Research
List major Details on where Estimation of pollution

raw materials/ raw materials produced in extraction/
ingredients and come from creation of materials (specific
packaging air, water, or solid waste)
Cotton Texas (No. 1 Inputs to grow: fertilizer,
producer in US) water, pesticide
Outputs: N&P runoff,
carbon dioxide
Polyester Refining natural Water, carbon dioxide, sulfur
gas dioxide, nitrogen dioxide
Synthetic indigo Unknown, but Water heat, heavy metals,
dye often in developing sulfur
countries
Plastic price tag Refining natural Water, carbon dioxide, sulfur
gas dioxide, nitrogen dioxide
Paper price tag South Eastern US Wood, water, ink
Manufacturing Research
Additional resources used during Bi-products during

manufacture but not listed as raw manufacturing process
materials (e.g., water, energy)
Washing jeans (water) Dyed water (polluted water)
Sewing seams (thread and energy) Carbon dioxide
Adding finishing pieces (metal Carbon dioxide
buttons and zippers)
Packaging in boxes (trees, water, Carbon dioxide
energy)

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Supply Chain Impact Map Guidelines (to create for your product as a
group in class):
Fertilizer, water, pesticide,
N&P runoff, carbon dioxide
Cotton
Water, carbon dioxide,
Polyester sulfur dioxide, nitrogen dioxide
Synthetic Raw
indigo dye materials Water heat, heavy metals, sulfur
Plastic Water, carbon dioxide,

sulfur dioxide, nitrogen dioxide
Paper
Wood, water, ink
Water Polluted water

Energy Carbon dioxide
Thread Manufacturing
Metal buttons,
zippers
Trees
Note: * Bi-products or waste.

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EXERCISE: THE RELEVANCE AND VALUE OF

PIVOTING – WHICH COMPANY WOULD YOU
INVEST IN?
AUTHOR: YASUHIRO YAMAKAWA
Primary topics within entrepreneurship: failure, testing.
Description
This Exercise offers students the opportunity to recognize the value and
relevance of pivoting, to help manage their fear of failure. Through a
simple activity, students will learn how entrepreneurs and their startups
have pivoted effectively to become successful.
Discussion includes how individuals vary in their notion of failure and
their tolerance to take risks, pros and cons of different entrepreneurial
logics and approaches such as causation and effectuation, lessons learned
from delving into each pivot case, and valuation of businesses. In relation
to fear of failure, implications (e.g., similarities and differences) can be
extended to the country, regional, and societal levels.
The Exercise enables students to understand the importance of pivoting
in order to achieve even more relevant and significant goals in an effective
and timely manner. The debrief session can encourage discussions on how
pivoting relates to failure by definition, and help overcome fear of failure.
Usage Suggestions
This Exercise can be used for any audience – undergraduate, gradu-

ate, or practitioner. The experience is appropriate and applicable for
all entrepreneurship courses, especially for new-venture creation and
entrepreneurial mindset (e.g., tolerance of failure). The session is best
positioned at the very beginning of the semester, or at the time when
students are about to commence action on an entrepreneurial endeavor.
There are no class size constraints. This Exercise can accommodate a
small or large course.

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Learning Objectives
●● Discuss the importance of pivoting from real stories of successful

startups.
●● Compare the pros and cons of various approaches to entrepreneur-
ship (e.g., causation versus effectuation).
●● Assess and manage your fear of failure (e.g., risk tolerance).
Lee, S.-H., Y. Yamakawa, Y., M.W. Peng and J.B. Barney (2010), ‘How
do bankruptcy laws affect entrepreneurship development around the
world?’, Journal of Business Venturing, 26 (5), 505–20.
McGregor, H.A. and A.J. Elliot (2005), ‘The shame of failure: examining
the link between fear of failure and shame’, Personality and Social
Psychology Bulletin, 31 (2), 218–31.
Sarasvathy, S.D. (2001), ‘Causation and effectuation: toward a theo-
retical shift from economic inevitability to entrepreneurial contingency’,
Academy of Management Review, 26 (2), 243–63.
Schlesinger, L.A. and C.F. Kiefer (2012), Just Start: Take action, Embrace
Uncertainty, Create the Future, Cambridge, MA: Harvard Business
Review Press.
Materials List
None.
None.
Time Plan (60 minutes but could be expanded to 90 minutes)
0:00–0:10
Begin by sharing statistics on prevalence of business failures.
This includes the number of businesses that declared bank-
ruptcy (American Bankruptcy Institute, see http://www.abi.org/
newsroom/bankruptcy-statistics), and the number of companies
still in operation after founding (Census data, see http://www.
statisticbrain.com/startup-failure-by-industy).
Develop a shared understanding that while every

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e ntrepreneur is interested in success, a majority of startups,

unfortunately, end up failing.
0:10–0:20 Show a slide to shift focus to prevalence of failure in the

context of entrepreneurship.
The slide should have a list of companies, description and
status of their business at a point in time. For example:
Here are four companies at a relatively similar stage: Which

would you invest in and why?
Company 1. Trendy designed cereal boxes. Sold $30 000

worth.
Company 2. Video dating site. Raised a few million in funding.
Company 3. Gaming and photo app. Lots of features.
Company 4. Educational social network app. Raised a few
million in funding.
Ask participants which company each would be interested in

investing.
0:20–0:30 Reveal what happened to each company. Explain each com-

pany’s path toward becoming successful as a unicorn, defined
as a startup company that reaches a $1 billion market value as
determined by private or public investment.
Building on the above examples:
Here is what happened – companies they became to be known

as:
Company 1. Airbnb – worth $31 billion, $1.7 billion in

revenue.
Company 2. YouTube – acquired by Google for $1.65 billion
in 2006.
Company 3. Instagram – acquired by Facebook for $1 billion
in 2012.
Company 4. Musically – acquired by Toutiao for $800 million
in 2017.
Websites/resources to learn more about the stories include:

●
https://getpaidforyourpad.com/blog/the-airbnb-founder
-story/.

M4928-NECK_9781839105166_t.indd 268 26/03/2021 17:19

●
http://www.nbcnews.com/id/15196982/ns/business-us_busi
ness/t/google-buys-youtube-billion/#.XmQA9JNKjBI.
●
https://dealbook.nytimes.com/2012/04/09/facebook-buys
-instagram-for-1-billion/.
●
https://www.billboard.com/articles/business/8031183/musi
cally-acquired-chinese-startup-800-million-report.
0:30–0:40 Open up for discussion. This includes delving into each case,
valuation of companies, and most importantly, how pivoting
enabled companies to achieve their success.
0:40–0:50 Wrap up the Exercise by explaining the different approaches

to entrepreneurship. For example, when the future can be
known or reliably extrapolated from the past, it can be
more effective to use mathematical tools and other analytic
methods to estimate accurately the potential risk and payoffs
relatively. This is most often the core logic in educational
settings and large organizations. Meanwhile, when the future
is unknown and cannot be predicted from the past, that is, in
extreme uncertainty, the only logical choice is to start within.
This approach focuses on what is real and confirmable over
projections and assumptions. Smart action trumps analysis –
favored by serial entrepreneurs. In summary, both approaches
are important but used more effectively in different contexts.
The takeaway could be that when you are about to move into
an unknowable world, then the best option is to take action.
This helps reinforce the importance of taking action. Most
importantly, the discussion can be tied to the ability to learn
from action, and not be tied to a plan. If each of the companies
did not learn from early failure, pivot, and move in a new
direction, they could have all died.
0:50–1:00 Discuss implications. Individually, what are sources of inac-

tion? Fear of failure? How would fear of failure affect entre-
preneurship? Summarize and close with a notion that variation
does exist within individuals, groups, and countries,* but fear
of failure is universal in that everyone fears making mistakes,
and it affects entrepreneurial action. However, most unicorns
if not all have pivoted, learned from their mistakes, and
became successful.

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* Option for additional Exercise

Depending on the demographics of the audience, students
can be divided into teams based on their nationality, and dis-
cuss the implications for regional/cultural/societal variations.
What is the risk tolerance in your country? For example, visit
Global Entrepreneurship Monitor (GEM) Reports (http://
www.gemconsortium.org/docs) for discussion on fear of fail-
ure The GEM reports often publish statistics on fear of failure
by country. Visit the website for the most current global
report.
Connect this Exercise to any type of learning from failure discussion. A

reflection paper or discussion board post may be suitable, or have students
identify and post their own examples of pivots, which would help you, as
the instructor, build your repository of examples!
Teaching Tips
Students will often ask about stories behind the unicorns in detail. It is
highly encouraged to know the cases well for this reason. Some students
might have insights already, for example, how Airbnb was the idea before
the cereal box attempt for the business to stay afloat. Nevertheless, pivot-
ing is a way of entrepreneurship life, at times necessary, and can be helpful
to bring about a breakthrough to achieve success more effectively in a
timely manner. This is a simple but strong message to be delivered and
learned.
Summary of key takeaways:
●● Many startups have experienced failures along their journey but

learned to pivot in order to be successful. Embrace the value of
pivots and learning from failure. Do not let failure get in the way of
taking action.
●● Understand logics (causation vs. effectuation) and approaches
to entrepreneurship that are important but effective in different
contexts.
●● Despite the variation in fear of failure across individuals (and
nations), it is universal that we all fear failure, and this has implica-
tions for entrepreneurship development.

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EXERCISE: TESTING SMALL IN ORDER TO GROW

BIG
AUTHOR: ANDREW ZACHARAKIS
Primary topics within entrepreneurship: ideation, opportunity evaluation,

failure, testing.
Description
This Exercise is about experimentation and based upon the results of that
experiment, reshaping the business so that it is more viable. Students will
evaluate a business opportunity identifying hypotheses on how the busi-
ness model works (e.g., who is the customer? Why they will purchase the
product/service? How much they will pay?). After students have identified
several key hypotheses, they will set up low-cost (often no-cost) experi-
ments to validate the hypotheses. As the venture progresses through stages
of development, experimentation escalates, meaning that the seed idea
experiments should be low cost ($0–$50) and, as the venture progresses
through product development, customer acquisition and growth, the
experiments escalate accordingly. Entrepreneurship through experimenta-
tion is fundamentally about starting small in order to grow big.
Usage Suggestions
This basic concept works for audiences of all levels; undergraduates,

MBAs, and executive education. Generally, this Exercise encompasses one
entire class and occurs early in a core entrepreneurship course. It is easy
to use on all audience sizes. Generally, break the class into small groups of
three or four people.
Learning Objectives
●● Test aspects of an opportunity at the lowest possible cost.

●● Set metrics to measure results of test and emphasize variance
between outcome (either positive or negative) and metrics.
●● Reshape the opportunity and business model based upon learning
from each experiment and then plan for the next test (escalating

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market test). Through this process, the entrepreneur learns how to

reduce overall risk.
Hall, D. (2008), Jump Start Your Brain, 2.0, Cincinnati, OH: Clerisy Press.
Zacharakis, A., A. Corbett and W. Bygrave (2020), Entrepreneurship,
5th edn, Hoboken, NJ: Wiley, ch. 3. To obtain a free examination
copy of this book, please go to https://www.wiley.com/en-us/
Entrepreneurship%2C+5th+Edition-p-9781119563099.
At the end of this Exercise is the mini-case you will need for the Exercise.
However, a full-length version of the case appears in Zacharakis et al.
(2020) as “Feed Resource Recovery,” or you can order the case through
Harvard Business School Publishing at https://hbsp.harvard.edu/product/
BAB156-PDF-ENG?itemFindingMethod=Other.
Materials List
●● In-class short case (see the “Waste to Energy” case at the end of this
Exercise as an example).
●● The Market Test Planning Worksheet at the end of this Exercise.
None.
0:00–0:15 Step 1. The opportunity

Ask students evaluate the opportunity within the “Waste
to Energy” case. As with any opportunity, the entrepreneur
makes a number of critical assumptions which, if they prove
false, endanger the company’s survival or cost a great deal
of money and time to correct. Two key areas for students to
consider as they derive assumptions1 are:
1
Note that there are many other key assumption areas, such as competition
and government regulations, but in the earliest stages, validating product and cus-
tomer assumptions is usually the most important.

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1. Product assumptions – can it be built and function the

way envisioned?
2. Customer assumptions – how will the customer use the
product? Will they have to change their habits?
After the students have generated a list of five to 10 key

assumptions (note there are likely to be multiple assumptions
within each category), ask them to turn each assumption into
a hypothesis. For example (from the “Waste to Energy” case),
a hypothesis might be that grocery store workers already sepa-
rate organic from non-organic waste when throwing it out.
Another might be that anaerobic digestion takes three days to
completely turn organic matter into biogas and compost.
0:15–0:45 Step 2. The market test planning worksheet (see end of Exercise)
Students can only learn so much from secondary research.
Primary research with a purpose uncovers valuable insights.
Have students devise the first three experiments they would
run. They can only spend up to $50 per experiment. The key is
to come up with low-cost first test.
1. This Exercise is suited to a group break out.

2. Upon return, groups detail their first, lowest-cost market
tests that the instructor should scribe on the board. Have
a rich discussion around order of tests, and how costs
might be reduced even further. Give special recognition
for the most creative, low-cost tests.
For example, to test whether grocery store clerks separate

organic from non-organic trash, two tests might work that
would cost less than $50 each:
1. Observe workers in the back of the store as they are

disposing of waste.
2. Set up separate containers at back of store, properly
labeled (“Organic” and “Non-organic”), and see if they
dispose of waste properly.
0:45–0:60 Step 3. Integrate concepts

Ask students to tie the concepts back to their own ventures.
Specifically, have them identify critical assumptions and the

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first three experiments they would run. Share and discuss some
of the experiments.
Students need to put into practice what they have learned. For this
Exercise, that means that they should identify key assumptions in their
own business opportunity, turn those into testable hypotheses, and
conduct experiments in the field on the most important hypotheses (they
cannot spend more than $50 per test). Have them report back by turning
in the Market Test Planning Worksheet on each test they ran. If the pro-
ject is for academic purposes only (rather than working to actually launch
a business), have them run one product and one customer test in the field.
Teaching Tips
In the case analysis, students often make assumptions that should be

challenged. For example, in the “Waste to Energy” case, they assume an
anaerobic digester prototype already exists (it doesn’t). Thus, I challenge
them to come up with tests to prove that the concept can work before
expending money. For example, building a fully functioning prototype
often costs upwards of $100 000). Instead, they could do a very low-cost
test (free). For example, to see how long it takes for organic waste to
decompose in an anaerobic digester, take a shoebox, put cow manure
in it (the bacteria in cow manure is the same as that which an anaerobic
digester uses), put some organic waste in the box and then check the
progress every 24 hours or so. If you believe the “Waste to Energy” case
(anaerobic digestion) is too technical for your students, feel free to choose
a different case or have students work on an idea of their own choosing.

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Handout: In-class Short Case
Waste to Energy2
Lots of organic waste ends up in landfills, 10 to 25 %.3 What if we could

convert that into something useful? While many households compost
organic waste, many do not. Only 34.5% of all household organic waste
is composted. The rest ends up in landfills.4 While households generate
lots of organic waste – over 4 pounds/person/day5 – restaurants and
supermarkets generate even more. There are lots of potential solutions
(see exhibit), but are they effective? Shane, a Babson student, is intrigued
by the opportunity of improving organic waste handling.
Exhibit: Organic Waste Composting Methods
Gasification is a process that converts organic material or biomass

into gasses or liquid fuels by a combination of high temperatures
and reduced oxygen supply. (Bauen, A., 2004, ‘Biomass
gasification’, in C.J. Cleveland (ed.), Encyclopedia of Energy,
Edinburgh: Elsevier, pp. 213–21.)
Plasma arc gasification is a process in which solid waste is shredded
and fed into a furnace where extreme electrical charges bring
the temperature above 3000 degrees. After an hour or so, waste
material breaks down into its molecular building blocks, leaving
three marketable byproducts: a combustible synthesis gas, or
syngas, that can be converted into steam or electricity; metal ingots
that can be resold and melted down again; and a glassy solid that
can be processed into material for floor tiles or gravel. (Durst, S.,
5 March 2007. ‘Problem no. 3: Waste disposal’, Fortune, vol. 155,
issue 4, p. B-4.)
Aerobic composting is the process of decomposing organic waste
using microorganisms and an aerobic or oxygenated environment.
2
Case written by Reuben Zacharakis-Jutz and Andrew Zacharakis.
3
According to the University of Kentucky, http://www.ehow.com/facts_7427808_
much-waste-can-save-composting_.html (accessed 16 December 2020).
4
http://www.epa.gov/epawaste/nonhaz/municipal/index.htm (accessed 18 Decem
ber 2020).
5
http://www.epa.gov/epawaste/nonhaz/municipal/index.htm (accessed 18 Decem
ber 2020).

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(Pace, M., B. Miller and K. Farrell-Poe, 1 October 1995, ‘The

composting process’, Utah State University Extension, AG-WM 01.)
Anaerobic digestion is a biochemical process in which particular
kinds of bacteria digest biomass in an oxygen-free environment.
Several different types of bacteria work together to break down
complex organic wastes in stages, resulting in the production
of “biogas.” (Accessed 1 April 2008 at http://www.oregon.gov/
ENERGY/RENEW/Biomass/biogas.shtml#Anaerobic_Digestion.)
Managing waste is becoming a hot sector. A small niche within the

CleanTech sector known as waste conversion technologies is beginning
to catch on. One such example is Converted Organics Inc., based in
Boston, a development stage company dedicated to producing a valuable
all-natural, organic soil additive through food waste recycling. Started
in 2003, Converted Organics Inc. is a five-employee operation that has
recently gone public, raising $9.9 million in an IPO, and has a market
capitalization of $14.3 million.6
Shane started research into the composting industry and was intrigued
by waste conversion technology. He looked at gasification, plasma arc,
aerobic composting, and finally anaerobic digestion. Anaerobic digestion
caught his eye. Anaerobic digestion was a relatively proven and cheap
technology, and it seemed the most viable option. Next, Shane began
to look at the waste stream market. He wanted to know who the largest
waste producers were, what kind of waste they produced and what the
competition looked like in those industries. He looked at household and
small restaurants and found that in most cases they would not generate
enough waste to justify an on-site digester, and the cost of transport-
ing the waste to a central location would be prohibitive. After further
research, Shane found that the food waste produced by processing plants
and supermarkets turned out to be the most promising. This was because
they both were producing large amounts of food waste and the volume
was concentrated in a single location (see the diagram). Shane wanted to
build a decentralized system that could be placed behind supermarkets in
a space that occupied one large dumpster (grocery stores generally have
multiple dumpsters).
The feed system, known as the R2, would utilize anaerobic digestion
6
Van der Pool, L. (2007), ‘Spurned by VCs, waste conversion startup goes
public’, Boston Journal Online, accessed 30 January 2008 at http://www.bizjournals.
com/boston/stories/2007/03/19/story8.html.

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Identifying Target Waste Generation Segments

1000
800
food waste (tons)
food
processors
600
colleges &
universities
400 RESTAURANTS
wholesalers/
distributors
SUPERMARKETS
200 correctional
facilities
hospitals
reports
prep grocery nursing
schools stores homes
0
0 200 400 600 800 1000 3000
number of establishments in ma
Source: Feed Business Plan.
(AD), a clean, safe, and proven technology, to turn biodegradable waste

into fuel (biogas) for a distributed electricity generation unit. AD is the
breakdown of organic material by micro-organisms in the absence of
oxygen. Although this process occurs naturally in landfills, AD usually
refers to an artificially accelerated operation that processes organic waste
to produce biogas and a stable solid residue. People have been turning
waste into biogas for hundreds of years and many developing countries
rely on small-scale AD systems for cooking. AD has grown rapidly in
Europe mostly in large, centralized plants using advanced technologies.
The R2 is a combination of the cheap, compact systems of India and
China and the large-scale, expensive, and technologically sophisticated
systems of Europe: a fully automated system that enables the customers to
process waste and generate energy on-site without changing current waste
disposal behavior.
Shane figured that grocery stores would benefit from using the system.
They could reduce their waste disposal and energy consumption bills
while also being green friendly (something Shane suspected their custom-
ers would value). Shane sketched out how the system would work (see
diagram). Organic waste would be deposited into the R2 (grocery stores
in many states already separated waste due to state regulations). The
organic waste would be broken down by bacteria generating biogas and a
residual fertilizer. The biogas would drive a turbine, generating electricity
that could be plugged into the store’s grid, offsetting their energy bill. The
fertilizer could be given or sold to local farmers, again creating goodwill
for the store.

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Tasks:
1. Shane has made a number of assumptions about anaerobic digestion,

including how much organic waste can be handled in one machine,
how long it takes to convert the organic waste into biogas and com-
post, whether people will separate organic from non-organic waste
when putting it into the machine, etc. Identify other critical assump-
tions that Shane is making.
2. Generate some hypotheses around those assumptions.
3. Create a low-cost test (less than $50) to test each hypothesis (use the
Market Test Planning Worksheet).

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Handout: Market Test Planning Worksheet
Market Test Description (briefly describe the market test. Remember to

keep it as low cost as possible. List the hypothesis that you are testing.
Also describe what you hope to learn from the test):
Key Tasks (list the Person Responsible: Deadline:

key tasks that need
to be completed to
run the market test):
Resources Needed How Used:

(list resources,
both financial and
non-financial. Break
down by use):
Outcomes Expected Metric (how will Variance from Actual

(what key learning to you measure relative (track whether
you expect): success of test, e.g., your outcome was
number of customers better or worse than
served, customer, predicted. Can you
reaction, etc.): explain why?):
Key Learning from Test:
How will you reshape your business and move to the next test?
Source: Zacharakis, A., A. Corbett and W. Bygrave (2020),

Entrepreneurship, 5th edn, Hoboken, NJ: Wiley.

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EXERCISE: OPPORTUNITY EVALUATION

CHECKLIST
AUTHOR: ANDREW ZACHARAKIS
Primary topics within entrepreneurship: opportunity evaluation, testing,

market or competitive analysis.
Description
The Opportunity Checklist (see the handout at the end of this Exercise)
is a tool to evaluate the attractiveness of an idea. It is based on tools
that investors use to determine if they want to meet with an entrepreneur
and consider investing in their venture. This analysis is generally carried
out quickly (5–15 minutes) and based upon the user’s assumptions of
how the idea stacks up on each criterion. Students can practice using
the Opportunity Checklist on a case study, but then should also apply
it to their own idea(s). Generally, an idea has potential if it has more
items circled in the middle column of the checklist than the right-hand
column (see completed checklist example at the end of this Exercise).
After completing the checklist, students should have (1) a better sense of
which of their ideas has the most promise, and (2) what information they
need to validate many of the assumptions they have made in completing
the checklist. Thus, consider the Opportunity Checklist as a due diligence
agenda. It raises several important questions on the different criteria and
should help guide both primary and secondary research as students start
to develop and execute their business.
Usage Suggestions
This concept works for audiences of all levels; undergraduates, MBAs,

and executive education. This Exercise encompasses an entire class and
occurs early in a core entrepreneurship course. It is easy to use for all
audience sizes. Break the class into small groups of three or four people.

M4928-NECK_9781839105166_t.indd 280 26/03/2021 17:19

Learning Objectives
●● Identify criteria that are potential strengths and weaknesses of a

particular idea.
●● Evaluate several ideas to see which offers the most attractive
opportunity.
●● Identify areas of further research to better understand how the idea
measures on a particular metric.
Zacharakis, A., A. Corbett and W. Bygrave (2020), Entrepreneurship,

5th edn, Hoboken, NJ: Wiley, ch. 3. To obtain a free examina-
tion copy of this book, please go to https://www.wiley.com/en-us/
Entrepreneurship%2C+5th+Edition-p-9781119563099.
Materials List
●● In-class short case (see “Waste to Energy” mini-case from the

previous teaching Exercise titled “Testing small in order to grow
big”, pp. 275–8).
●● Opportunity Checklist (at the end of this Exercise).
●● Zacharakis completed checklist (at the end of this Exercise).
Can be done without any pre-work on a short in-class case.
Introduce and explain the opportunity checklist.

0:00–0:15
Students have many business ideas, but not all ideas have the
potential to be successful businesses. The checklist is a tool
to help entrepreneurs understand which of their ideas has the
most potential and to help guide them in gathering evidence
that supports the assumptions they have made in completing
the checklist. Most of the criterion are self-explanatory, but
ask the students if they need further clarification on some
of the criteria. For example, students typically ask what is
meant by stealth competitors. These are competitors that are
often early stage ventures and, thus, not yet widely known.
Therefore, students should consider how likely it is that other

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entrepreneurs are also pursuing a business solution that might

be similar to their concept.
0:15–0:45 Breakout Group Work.

Have students complete the Opportunity Checklist on a case.
In this example, I’m using the Wast to Energy Mini-case from
the previous Exercise called “Testing small in order to grow
big.” Inform students that after the breakout work they will
vote on whether the opportunity is attractive or not, based
upon how they completed the checklist. I generally have
students do the checklist independently (the first 20 minutes)
and then group with people sitting nearby to share and discuss
their analysis for the remaining 10 minutes.
1. Students work through the criteria, circling whether the

opportunity fits a “better (center column)” or “weaker
(right-hand column)” on each criterion.
2. It is important to remind students that no opportunity is
strong on all criteria. The key is to evaluate those areas
that are weaker and see if you can devise a business model
to move those criteria to the better column or have a
strategy that minimizes exposure on the weaker aspects
while leveraging stronger aspects.
3. When evaluating an idea, if it has more circles in the center
column (“better”), then it worth deeper exploration. If it
has more circles in the right-hand column (“weaker”), it is
best to discard the idea. I remind students that their most
valuable asset is time and if you can quickly eliminate a
bad idea, it will save you time to focus on more promising
ideas.
0:45–1:30 Discussion of their evaluation.

Take an in-class poll to see how many students view the
opportunity as attractive or unattractive. Then, as a class,
whether this idea is a good opportunity or not.
Spur debate. Different students are likely to evaluate the
opportunity differently on the same criteria. For instance, one
student may see the “reducing waste” trend as a threat because
that means customers are likely to have less organic waste.
Another student might see that as an opportunity because
people are aware they should not send organic waste to the
landfill. Discuss how perceptions drive decisions and action.

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Different people can evaluate the idea completely oppositely

and that may lead them to abandon or pursue the idea.
Finally, I show the class how I evaluated the “Waste
to Energy” opportunity (see the Completed Opportunity
Checklist in Table 6.1 at the end of this Exercise). I stress that
my analysis is not the “right answer,” but just my perception
of the opportunity. If I were working in a team, this would be
my starting point to discuss how we each see the opportunity
and guide further research into validating critical assumptions.
Most students have several ideas they are considering. I ask students to
evaluate all their ideas side by side to see which offers the best opportunity.
This is a time-saving mechanism. If a student has five ideas, undertaking
in-depth research on all of them would take hundreds of hours. The
Opportunity Checklist can help students focus on the idea that has the
most potential. If students are working on one idea, the checklist can be
used a guide for further research.
Teaching Tips
First, when students use the checklist to evaluate their own idea, watch
out for personal bias. Entrepreneurs love their ideas and often evaluate in
a biased manner that confirms their preconceived notions. One technique
to overcome that natural bias is to have the students or groups evaluate
each other’s ideas using the checklists. The differences between two groups
should serve as a launch point for further research and development
around the business model.
Second, when working in teams, I ask each member to evaluate the idea
independently and then come together to discuss why they evaluated the
idea as they did on each criterion. This helps gain a deeper understanding
of the idea and how it might translate into a viable business model.

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Handout: Opportunity Checklist
Better opportunities Weaker opportunities

Customer
Identifiable Defined core customer Undefined customer
Demographics Clearly defined and Fuzzy definition and
focused unfocused
Psychographics Clearly defined and Fuzzy definition and
focused unfocused
Trends
Macro market Multiple and Few and disparate
converging
Target market Multiple and Few and disparate
converging
Window of Opening Closing
opportunity
Market structure Emerging/Fragmented Mature/Decline
Market size
How many Large core customer Small, unclear
group customer groups
Demand Greater than supply Less than supply
Market growth
Rate 20% or greater Less than 20%
Price/frequency/
value
Price Gross margin > 40% Gross margin < 40%
Frequency Often and repeated One time
Value Fully reflected in price Penetration pricing
Operating expenses Low and variable Large and fixed
Net profit margin > 10% < 10%
Volume Very high Moderate

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Distribution
Where are you in High margin, high Low margin, low
value chain? power power
Competition
Market structure Emerging Mature
Number of direct Few Many
competitors
Number of indirect Few Many
competitors
Number of Few Many
substitutes
Stealth competitors Unlikely Likely
Strength of Weak Strong
competitors
Key success factors
Relative position Strong Weak
Vendors
Relative power Weak Strong
Gross margins they Low High
control in value
chain
Government
Regulations Low High
Taxes Low High
Global environment
Customers Interested and Not interested or
accessible accessible
Competition Nonexistent or weak Existing and strong
Vendors Eager Unavailable
Source: Zacharakis et al. (2020).

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Table 6.1
Completed Opportunity Checklist (based on “Waste to
Energy” case)
Customer
Identifiable Defined core customer Undefined customer
Demographics Clearly defined and focused Fuzzy definition and
unfocused
Psychographics Clearly defined and focused Fuzzy definition and
unfocused
Trends
Macro market Multiple and converging Few and disparate
Target market Multiple and converging Few and disparate
Window of opportunity Opening Closing
Market structure Emerging/fragmented Mature/decline
Market size
How many Large core customer group Small, unclear
customer groups
Demand Greater than supply Less than supply
Market growth
Rate 20% or greater Less than 20%
Price/frequency/value
Price Gross margin > 40% Gross margin < 40%
Frequency Often and repeated One time
Value Fully reflected in price Penetration pricing
Operating expenses Low and variable Large and fixed
Net profit margin >10% <10%
Volume Very high Moderate
Distribution
Where are you in value High margin, high power Low margin, low
chain? power
Competition
Market structure Emerging Mature
Number of direct competitors Few Many

M4928-NECK_9781839105166_t.indd 286 26/03/2021 17:19

Table 6.1 (continued)

Number of indirect Few Many
competitors
Number of substitutes Few Many
Stealth competitors Unlikely Likely
Strength of competitors Weak Strong
Key success factors

Relative position Strong Weak
Vendors
Relative power Weak Strong
Gross margins they control in Low High
value chain
Government
Regulations Low High
Taxes Low High
Global environment
Customers Interested and accessible Not interested or
accessible
Competition Nonexistent or weak Existing and strong
Vendors Eager Unavailable

M4928-NECK_9781839105166_t.indd 287 26/03/2021 17:19

EXERCISE: SWEATING THE SMALL STUFF
AUTHOR: ALISA JNO-CHARLES
Primary topics within entrepreneurship: failure, entrepreneurial teams,

operations.
Description
It is difficult for students to appreciate the operational challenges involved

in running a venture. This Exercise simulates operating a business,
allowing students to experience the frustration of having to manage
multiple ongoing functions of a business at the same, highlighting how,
in a hectic startup environment, bad behaviors and honest mistakes can
be overlooked at first but have significant consequences, and showing
the importance of checks and balances, even in new venture teams. In
the Exercise, students attempt to sell product to customers, manage their
inventory, withdraw and deposit cash, track their financial performance,
and report to their boards of directors while figuring out how to com-
municate with one another about what is happening in various parts of the
business, preventing or catching corporate thieves, handling public rela-
tions nightmares, and spending time on customers who are not interested
in buying anything. The Exercise simulates how one small issue, anywhere
in the company, can turn into a complete meltdown, and how good
operating and control systems prevent such a meltdown from occurring.
Usage Suggestions
Undergraduate or graduate general entrepreneurship course. No class size

constraints. This Exercise can accommodate either a small or large course.
Each simulation team can comprise six to 14 students, depending on
structure of the class. Having students who are familiar with accounting
basics sprinkled among the teams is helpful.
Learning Objectives
●● Experience the complexity of operations required to run a simple,

single-product business.

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●● Evaluate the causes and effects of operational design choices, honest

operational mistakes, and intentional fraud.
●● Design effective and efficient venture operations from a process and
team perspective.
Wu, S.J., S.A. Melnyk and B.B. Flynn (2010), ‘Operational capabilities:
the secret ingredient’, Decision Sciences, 41 (4), 721–54.
Materials List
●● Two teaching assistants or students who are not participating in the

Exercise to serve as a banker and supplier.
●● Three copies of the Weekly Performance Report (included at the
end of this Exercise) for each team, one for each week of operations
simulated.
●● For each team participating, prepare a bag that one of the teaching
assistants or assisting students will be in charge of, with:
° 250 pieces of “product,” such as individual wrapped candy (e.g.,
Starburst or Tootsie Rolls).
° $650 of play money.
° A check made out to “The Bank” for $600.
° Four fake credit cards for the customers (i.e., laminated or
paperboard slips).
° Special instructions for each customer per team on how many
units to buy, at what price or via what method (cash or credit).
Call all customers to come and see you during the pre-selling
week while the rest of each team prepares, and give these instruc-
tions in secret, telling the students not to share them with
anyone. Though the instructions are specific, give the students
creative power to test the sales people on their team by driving a
hard bargain and asking for steep discounts. Some examples of
instructions:
n Week 1 of sales
– Customer 1: purchase 10 units for cash.
n Week 2 of sales
– Customer 1: purchase 20 units with a credit card.

M4928-NECK_9781839105166_t.indd 289 26/03/2021 17:19

– Customer 3: purchase 40 units at $4/each with a credit

card.
– Customer 4: engage in a lengthy negotiation for 50 units
at $2 each, but keep findings excuses to stall and not close
the deal.
° Stick-on nametags for the roles identified in the simulation (see
the student instruction sheet at the end of this Exercise).
Students should be arranged (self-arranged or assigned) into teams of 6

to 14 members before the day of the Exercise. All teams should read the
student instruction sheet, assign roles (as specified in the student instruc-
tion sheet), report on those roles to the instructor ahead of the simulation,
plan their processes and documentation (as specified in the student
instruction sheet), and bring the required materials to class on the day of
the simulation.
Time Plan (60–90 minutes)
Pre-start Provide the following instructions to the two teaching assis-

tants or two students, aside, so the rest of the class does not
hear. The best time to do this is before class starts.
Banker
● – Instruct the banker to (1) take out from each
team’s bank and deliver to each team a check for $600 (fill
it out to make it out to a particular team) and $50 in petty
cash during the simulation setup; (2) prepare $600 in cash
from each package for each team. Teams will have to bring
in their check for $600 in order to withdraw the initial
amount; (3) prepare for ongoing recordkeeping, given
that students should be depositing and withdrawing their
money, and that it is the banker’s job to keep a ledger per
team (see Banker’s ledger at the end of this Exercise). At the
end of each “week,” the banker is to issue a “statement” to
each team (just a piece of paper with their ending balance).
° The banker will also be a timekeeper, moving from one
round to the next or from one team speaker to the next
instantly as follows:
n Pre-selling week – 5 minutes
n Observer update – 1 minute per team
n Week 1: all cash sales – 10 minutes

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n Preparation of performance ledger – 3 minutes

n Observer update and performance ledger – 1 minute
per team
n Week 2: cash and credit sales – 10 minutes
n Preparation of performance ledger – 3 minutes
n Observer update and performance ledger – 1 minute
per team
Supplier – Instruct the supplier that students will be
●
coming to them to “purchase” inventory, meaning they
have to pay $4 per unit they are purchasing. However, the
supplier should also do the following:
° For the first order the teams place, which is usually the
biggest one, have the supplier under-deliver inventory.
For instance, if the order is for 100 units, only deliver
97. This will be a test of how many teams do an inven-
tory count upon receipt. If caught, the supplier should
make up the difference.
° For any purchases the teams make after the pre-sale
week, the supplier should make the team wait 4 min-
utes after placing the order, to simulate delivery time.
0:00–0:10 Recap the details provided in the student instruction sheet and

the way that the simulation will proceed:
●
The simulation will begin with a pre-sale week, when each
team can get themselves organized, procure all of their
starting materials from the instructor, pre-order any prod-
uct, and discuss any process strategies among themselves.
●
Remind them of the timing of each round.
●
Explain that at the end of each round, each team’s observ-
ers should report out to the class one or two observations
about the challenges or success of operations they observed
that week and what the team needs to improve. While the
observers are presenting, each team should prepare a
Weekly Performance Report (at the end of this Exercise)
and present it to the instructor. These ledgers show which
teams have a handle on their operations and which do not.
0:10–1:00 Run the simulation based on the timing and rules provided.

However, in week 2, add the following complications:
●
From each team, the instructor should pull aside an indi-
vidual playing the role of an accountant, and instruct the

M4928-NECK_9781839105166_t.indd 291 26/03/2021 17:19

student to steal cash from the team’s repository, when it is

opportune to do so (when no one is watching). The goal is
to see how many teams have a process that involves checks
and balances sufficient to catch the offender.
●
From each team, pull aside an individual playing the role
of an operations member, and instruct the student to steal
some inventory, when it is opportune to do so (when no
one is watching). The goal is to see how many teams have
a process that involves checks and balances sufficient to
catch the offender.
●
From one team (not each team), pull aside an individual
playing the role of customer, and instruct the student to
“tweet” a bad review (by writing it in big print on the
board). If the team does not notice, yell to them that they
have a public relations (PR) problem that they need to
manage. The goal is to distract the sales team from making
other sales.
●
From another team (not each team), pull aside an individ-
ual playing the role of customer, and instruct the student
to pretend to choke or be poisoned by the candy – in as
loud and as obvious a fashion as possible. If the team does
not notice, yell to them that they have a PR problem that
they need to manage. The goal is to distract the sales team
from making other sales.
1:00–1:15/1:30 Discuss the simulation. Some helpful questions to spur

debate include:
● ow effective and efficient is your operation? What

H
made it so?
● What would you change about your approach if you
had to do this all over again?
● What issues did you face that you did not expect?
° This is a leading question about thefts and PR
issues. If students do not mention the thefts, ask
them if they discovered any irregularities. How
did they handle the bad press?
● What does this mean about the way you organize
operations, from a process and staffing perspective?
° A good topic to follow up with is a brief intro-
duction to segregation of duties and checks and
balances.

M4928-NECK_9781839105166_t.indd 292 26/03/2021 17:19

A way to check for learning is to follow up this activity with an assignment

for students to create an operational process map and the creation and
allocation of duties for a different type of operation, such as a service
business.
Teaching Tips
It is helpful for at least a few students on each team to have learned the
basics of accounting. If that is not the case, provide as pre-reading an
elementary primer on the basics of recording sales and inventory from the
accounting department.
During the sales week, it helps to get the class energy going by playing
upbeat, but not too distracting, music in the class.
The pre-sales week is when students should be getting organized. It is
beneficial to spend that time walking around to each team and asking if
they feel ready, if they have all their operations and inventory cued up to
go, and if everyone knows what they are doing. This may also spur quiet
teams to start talking among themselves. It is also the time that operations
teams should be ordering inventory, accountants should be depositing
checks, and sales people should be discussing strategy.
The first week of sales is relatively simple, as customers are buying
relatively small orders and for cash. This round tends to give teams a
false confidence that business operations are relatively easy to manage.
They may struggle a bit to communicate all the moving pieces, but the
first selling round usually goes relatively smoothly. It is a good opportu-
nity for them to iron out their process, particularly after the observers’
feedback.
The second week of sales is when things start to fall apart – communica-
tion, authority, and controls. The added levels of complexity from both
customers and the instructor interventions, which realistically simulate the
combinations of issues a business has to manage at the same time, tends to
break down previously agreed upon team processes and norms, and forces
the team into survival mode. Some of the teams, such as those with better
operational controls or several people in each department, may figure out
that some of their teammates are stealing and may “fire” the offender from
their role, which is expected, and this often leaves them shorthanded. The
classroom may feel chaotic and loud, which is very illustrative to the stu-
dents of how things often feel in a venture that does not have the time and
human resources to deal with multiple problems at the same time. Sticking
to the timing regardless of what is happening helps reign in the chaos and

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ensuring you have sufficient time to debrief, which is very important to

solidify learning.
Keep in mind that this Exercise does not provide overly specific instruc-
tions about student behavior. Many tend to ask the instructor if they are
allowed to do X or Y. In order to maximize student creativity, refrain from
giving any more guidance or rules.
Attribution
The original Exercise was developed by Jennifer Ellis at Babson College.

M4928-NECK_9781839105166_t.indd 294 26/03/2021 17:19

Banker’s Ledger
Business name
Beginning cash $600

Withdrawal for inventory
Ending cash: pre-sale week
Week 1 – deposits
Week 1 – withdrawals
Ending cash: week 1
Week 2 – deposits
Week 2 – withdrawals
Ending cash: week 2

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Business Operations Walkthrough
Student Instructions
This is a short simulation of a “typical” business. Your team represents a

small business that sells one product.
Prior to the walkthrough, each team should prepare the following:
●● A team roster. Each team will consist of active participants, and

perhaps some observers, who will carry out the following roles:
° 1–2 people representing the accounting department.
° 2–4 sales people.
° 1–2 people representing the Operations Department.
° 2–4 people who will be “the customers.”
° 1 person who will serve as Director of Communications, respon-
sible for putting together a pulse report of the “business.”
° Anyone without an assigned role will be an “Observer.”
●● Each business should prepare their processes for keeping track

of sales, their cash, and their inventory. Some examples of these
processes include:
° A process for maintaining control over inventory and who
will play what role in it. Decide how you will keep track and
maintain control of inventory ordered, received, handed out,
and sold.
° A simple accounting system to record financial transactions
and generate financial statements (e.g., income statement and
balance sheet) at the end of operating cycle.
° Any online tools or spreadsheets should be set up and shared
with all members of the team that need access to them in
advance of class to avoid losing time during the simulation.
The Walkthrough (Overview)
Upon arriving at the class, each team will be given 100 pieces of initial
inventory at the beginning of the simulation. The product sells for $10
and costs you $6 to buy from your supplier (played by your instructor or
assigned student). All sales are delivered, and cash customers’ payments
are collected, at the time of sale. The “customers” will each be given $250
in cash (play money, of course). Each team will be loaned $650 (a check for
$600 to buy inventory and $50 in cash (this is petty cash). Forecasted sales

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are 30 units a week. It takes two weeks to get product and the minimum
order quantity is 10. There is a 2 percent charge for all credit card transac-
tions. All online orders are paid by credit card at the time of the order.
Money is transferred to the company from the credit card company when
the order is shipped or delivered.
At the start of class a member of the Operations Department will buy
the initial inventory order for their team from the supplier. The Operations
Department may choose to distribute inventory to its sales people up front
or as needed, depending on what inventory control system the team has
chosen. Each team will then proceed with “walking through” the business
processes associated with ordering, selling, and managing inventory and
managing cash. The walkthrough is divided into “weeks” (exactly how
many will be determined by the instructor). At the end of each week,
the Director of Communications should be prepared to report on-hand
inventory (units and dollars) and the financial statements. If re-orders are
necessary, each team will need to manage the payment and collection of
the additional order(s). Please make sure your teammates are familiar with
your team’s processes before the start of the walkthrough.
Designated Observers will observe their team throughout the walk-
through. At the end of each week, Observers are expected to report and
give feedback on what has been working well about their team’s operation
and what could use some improvement.
Please familiarize yourself with all the pertinent information (cost,
price, credit-card transactions, lead time, minimum order quantity, and
online orders) and come prepared (with systems and processes) so that we
can smoothly execute this walk.
PLEASE NOTE: Various roles on each team may receive additional

instructions immediately before and during the simulation.

M4928-NECK_9781839105166_t.indd 297 26/03/2021 17:19

Weekly Performance Report
Team Name: ___________________ Selling Week __________
Transaction Ledger for the week (optional)

(But you may find that filling this out makes creating income statements
and balance sheets easy)
Assets Liabilities Equity

Account/ Cash Inventory Loan Revenue COGS Expense
activity payable
Condensed Income Statement Balance Sheet
Week Week
Units sold Cash
Inventory
Revenues Total assets
COGS
Gross margin Loan Payable
Credit card fee Total Liabilities
Other expenses
Net profit Beginning Equity
New retained earnings
Total Equity

M4928-NECK_9781839105166_t.indd 298 26/03/2021 17:19

Total liabilities + equity

Your Per physical count
accounting
records
Cash balance
Account for differences between your records and your physical count:
Inventory Reconciliation
Per your Per physical count Per physical count

accounting in storeroom with employees
Quantity on hand
Explain differences between your accounting and the physical count:
Highlights
What worked well and what you could have done better:
1)
2)
3)

M4928-NECK_9781839105166_t.indd 299 26/03/2021 17:19

EXERCISE: IDEAS IN MOTION
AUTHOR: CHERYL KISER
Primary topics within entrepreneurship: ideation, networking, testing,

resource acquisition.
Description
This Exercise is rooted in a proven practice that addresses the notion that
throughout the world everyone’s needs are better met in a community
that is both generous and generative. The notion of collective generosity
and “gifting” is a way to personally engage for possibilities and expand an
individual’s resource base.
Identify three or four people to present an entrepreneurial challenge.
These may be individuals from the class or from outside. Students appreci-
ate when entrepreneurs are brought into the class to share challenges, and
entrepreneurs often appreciate the advice from students. Regardless, each
person presents for 5 minutes about the challenge they are facing. After
the person has presented the challenge, the group does rapid ideation for
actionable next steps. In small groups, participants work as fast as possible
to ideate quality next steps by using only what they have, who they know,
and what they know. Note that if the next step cannot be achieved within
the day, it does not qualify as an “actionable next step.”
This activity requires people to actively listen, draw upon their own
resources at hand, and then gift the idea(s) to the person with the chal-
lenge. I term it gifting because it requires the “gifter” to do something that
stems from their personal experiences or relationships. Gifting is the most
pure form of generosity without thinking too much, other than proving
simple value to another human. At Babson College, we have created a
“gifting” community in all areas of entrepreneurial endeavors. It often
starts with playing with each other’s ideas in a group.
Entrepreneurial leadership requires a mindset shift. It also requires not
just focusing on what is happening now but, more importantly, what are
you going to do next. This Exercise uses a Babson process named Ideas in
Motion to further an idea or address a current challenge that an entrepre-
neur, business leader, or individual is facing. This process is fast paced and
allows participants to experiment with elements of the Entrepreneurial
Thought & Action® (ET&A) methodology in service to solving a problem,
moving an idea forward, or addressing a key challenge that an individual

M4928-NECK_9781839105166_t.indd 300 26/03/2021 17:19

or organization is currently facing. We ask students to come with a curious

and generative orientation to be in service to the individual who needs
their ideas. The full group will respond to the challenge with ideas that can
help the presenter immediately take a next step in bringing an idea to frui-
tion or address the immediate challenge. The goal is that each presenter
will walk away with actionable next steps.
This Exercise also fosters the power of bringing together a diverse group
of people to share ideas and resources. Many unexpected connections and
relationships are made that may not have been possible if the presenter
had only asked the usual people and partners.
Usage Suggestions
This Exercise can work with all types of groups. I have used it with success
with undergraduates, graduates, entrepreneurs, and executives. No class
size constraints. This Exercise can accommodate both a small or large
group of participants. The Exercise has taken place in groups of up to 100
people and as few as 10 people.
Learning Objectives
●● Participate in an opportunity to help an entrepreneur/individual

frame and share an idea/problem/challenge/desire that they want to
solve in order to move forward.
●● Experiment with a concept named “gifting” and share insights and
knowledge in furthering someone else’s idea.
●● Practice a new technique that can be used in any situation to
move something along from idea to action or from challenge to
opportunity.
Parker, P. (2018), The Art of Gathering: How We Meet and Why It

Matters, New York: Riverhead Books.
Sanford, C. (2020), The Regenerative Life: Transform Any Organization,
Our Society, and Your Destiny, Boston, MA: Nicholas Brealey.

M4928-NECK_9781839105166_t.indd 301 26/03/2021 17:19

Materials List
●● The one-page handout on components of Entrepreneurial Thought

& Action® by Heidi Neck so that the participants understand what
we mean by ET&A. (Handout available at https://www.babson.edu/
media/babson/site-assets/content-assets/about/academics/centres-and
-institutes/the-lewis-institute/fund-for-global-entrepreneurship/Entre
preneurial-Thought-and-Action-(ETA).pdf.)
●● Sticky notes, one pad per group.
Before the class or session ask everyone to think about something they
want to move forward. It can be an idea, a business, or a project – any-
thing that is specific and easy to understand. Remember that framing the
request with specificity is key to getting the most qualified and valuable
response. The participant should bring that idea to the session. They
may or may not have an opportunity to pitch the idea but they should be
prepared to if there is time.
This Exercise can also work in a specific class, such as food entrepre-
neurship. We have asked six outside food entrepreneurs to come to the
class with their challenge and the class uses Ideas in Motion to help them
with their business challenge. This is very powerful as the students access
real-world problems and use a methodology to further a food business in
a very specific way.
Time Plan (60 minutes, but could be expanded to 90 minutes)
0:00–0:15 Facilitator provides an introduction to the Exercise: what it is

and what it is not.
Ideas in Motion is born out of Babson’s methodology of
Entrepreneurial Thought & Action®. Using who you are,
what you know, who you know, and the resources you have
at hand, you will provide insights and ideas termed “gifts” to
the person who is pitching a challenge or idea they want to
further. It is not a free-flowing pie in the sky brainstorming.
It is grounded by specifics and being able to provide “action-
able” next steps. Stay away from generalities. Be small or big
but be actionable. Whoever has gifted the person the idea, or
connection or resource, must give it to the person before leav-
ing the session. The reason we provide sticky notes is for the
“gifter” to put the “gift” and their email address down on the

M4928-NECK_9781839105166_t.indd 302 26/03/2021 17:19

sticky so the person can follow-up on the “gift.” It is personal

and always productive.
“What is a gift”? It can be the name of a person who can
help the person, a website that can help the person; it can be
an introduction to a person who can help the person take their
next steps; or it can be a connection, that is, any act or action
that allows the person to take their next action in the direction
of their desire to create something change something or solve
something.
0:15–0:25
Split the group into manageable groups of 5–10 people.
Hopefully they have done the pre-work. If for some reason
they have not done the pre-work, ask everyone to think
about something they want to move forward. It can be an
idea, a business, a project – anything that is specific and easy
to understand. Remember that framing of their request in
specifics is key to getting the most qualified and valuable
“gifts.”
0:25–0:27 The facilitator will choose three people to present their idea.
After everyone understands the process, the facilitators will
ask each presenter to volunteer to go. If there is time for
three, then let them choose who goes first. If people haven’t
prepared, ask for volunteers. Be playful and tell them it can be
anything they want. Just something they have had a desire to
manifest in some way at work, home, or that is personal.
0:27–0:30 The first person pitches their request while the whole group
actively and empathetically listens to the presenter.
0:30–0:35 Each group rapidly ideates to come up with three actionable

next steps. The group should identify a scribe to take down all
ideas.
0:35–0:40 Each group “gifts” their three actionable ideas to the pre-
senter, giving them sticky notes with details of how to use each
gift.
0:40–1:10 Repeat the Ideas in Motion ideation and gifting process with
the other two presenters (15 minutes each).
If time allows, have more people present their challenge.

M4928-NECK_9781839105166_t.indd 303 26/03/2021 17:19

1:10–1:20 Wrap up. To conclude, share with participants that one of

the most significant takeaways is the usage of new language
to activate new behaviors. Language means everything. By
using the term “gifting,” we are asking the individual and
group to bring forth their heart, head, and life experiences
in an accelerated process in service to someone else’s needs
and desires. Gifting and brainstorming are fundamentally
different and evoke different responses. As a wrap-up ask the
participants if they can see themselves using this process at
work between teams or with their own teams. How might they
use this experience to accelerate creative and actionable ideas
and solutions? Creating an atmosphere of joyful, playful,
ideating, and gifting is a true experience of generosity. This
orientation towards creating new ideas begins to build a habit
of experimentation at a very low cost.
Connect this Exercise to any brainstorming and ideating session either

within teams, or among entrepreneurs, executives and family and friends.
Students can post the actions they took as a result of the gifts that they
received.
Teaching Tips
This Exercise has been practiced with hundreds of entrepreneurs/individu-

als over a 10-year period of time. One of the most significant takeaways
has been the usage of new language to activate new behaviors. Language
means everything. By using the term “gifting,” we are asking the individual
and group to bring out their heart, head, and life experiences in an acceler-
ated process in service to someone else’s needs and desires. Gifting and
brainstorming are fundamentally different and evoke different responses.
It is crucial that the instructor emphasizes it is not necessary to know a
great deal about the individual’s business or challenge. Remind students
that, as “gifters,” we are offering our own perspective and building on the
ideas and “gifts” of others. Remember to emphasize to students that this
is a generative, free-flowing platform aimed to help gain better traction
in making something happen that is of value for another individual. For
example, when a food entrepreneur pitches an idea (or challenge) about
their food business, we do not need to know a lot about the type of food
or business. We are all eaters and have experienced some aspect of the
food system through our own personal experiences. Encourage students to

M4928-NECK_9781839105166_t.indd 304 26/03/2021 17:19

move outside the intellectual/cognitive mode to the personal/experimental

mode. Remind participants to make their gift both specific and actionable.
It can be as simple as providing a connection, website, or offering of some
kind that the person can act on immediately, or an insight that can encour-
age the person in a direction. Small is good.
Attribution
This is a creation of the Lewis Institute for Social Innovation at Babson

College and is used in many different modalities.

M4928-NECK_9781839105166_t.indd 305 26/03/2021 17:19

Exercises To Practice Experimentation

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Exercises to practice experimentation

Heidi M. Neck, Candida G. Brush, and Patricia G. Greene - 9781839105173

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EXERCISE: BUILDING GENDER ACUMEN AS AN

AUTHOR: SUSAN G. DUFFY

This multi-part Exercise introduces students to foundational concepts

Heidi M. Neck, Candida G. Brush, and Patricia G. Greene - 9781839105173

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Undergraduate or graduate general entrepreneurship, venture growth,

Method of delivery: face to face, online.

●● Differentiate between masculine and feminine attributes and behav-

Theoretical Foundations and Resources

To explore examples of explicit and implicit bias, see:

Heidi M. Neck, Candida G. Brush, and Patricia G. Greene - 9781839105173

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For terminology definitions and examples of bias in action, watch:

●● PowerPoint slides (Figures 6.1–6.7).

Heidi M. Neck, Candida G. Brush, and Patricia G. Greene - 9781839105173

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Pre-work Required by Students

Time Plan (90 minutes)

0:00–0:04 Review learning objectives for the session.

Facilitate and debrief the Rapid Fire Word Association

(1 minute) Directions to each group. Generate as many

Heidi M. Neck, Candida G. Brush, and Patricia G. Greene - 9781839105173

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Rapid Fire Word Associations

Figure 6.1 Rapid Fire Word Associations slide

(5 minutes) Groups list associated words on the flip chart. At

(14 minutes) Debrief:

Heidi M. Neck, Candida G. Brush, and Patricia G. Greene - 9781839105173

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dramatic if based on cultural, religious, family, and indus-

Debrief Implicit Association Test and review definitions of bias

Heidi M. Neck, Candida G. Brush, and Patricia G. Greene - 9781839105173

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Heidi M. Neck, Candida G. Brush, and Patricia G. Greene - 9781839105173

M4928-NECK_9781839105166_t.indd 238 26/03/2021 17:19

Figure 6.3 Explicit/implicit bias slide

• Unconscious. Hidden to perpetrator

Figure 6.4 Characteristics of implicit bias construct slide

Define “inclusive entrepreneurial leadership” and “inclusive

Heidi M. Neck, Candida G. Brush, and Patricia G. Greene - 9781839105173

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Sample Implicit Bias Research

• Doctors more likely to give white patients pain killers

• Women2Women work-conflict more problematic

• British or “white” names more likely to get job interview

• Afrocentric features lead to longer jail sentences

Figure 6.5 Examples of research on implicit bias slide

enterprise cultures. Facilitate an interactive dialogue in think/

Instructor note: Recall the definition of inclusive entrepre-

Heidi M. Neck, Candida G. Brush, and Patricia G. Greene - 9781839105173

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Gender SCHEMA Men consistently overrated

Women consistently underrated

What accentuates a man’s gender

What accentuates a woman’s gender

Figure 6.6 Gender schema concept slide

Figure 6.7 Entrepreneurial leadership and culture slide

then achieves an organizational environment in which all

Exercises to practice experimentation

(1 minute) Directions to each group. Generate as many

(5 minutes) Groups list associated words on the flip chart. At

Instructor note: Recall the definition of inclusive entrepre-

How might I strive for self-awareness of my own gender bias

I like to have students work in groups, but this can also be an

How might I strive for self-awareness of my own gender bias

(10 minutes) Create group pairings to share their ideas and

0:00–0:10 Introduction to business models. In this section, examine dif-

0:10–0:25 How to make a one-page canvas. Because of the popularity of

0:25–0:35 Allow time for students to complete their canvas templates on

0:35–0:45 Debrief the Exercise. Invite students to look at each other’s

Note: Instructors may choose to introduce revenue and cost

0:45–0:50 After the debrief, ask students to take a different color marker

0:50–0:60 Summarize the Exercise using the following talking points:

0:60–0:90 If time permits, ask individual students or teams of students