Learning to Be an Entrepreneur

Today’s Topics
Defining Entrepreneurship
Predictive vs. Creative Logic
Managing For the Unknown
 Let’s Define Entrepreneurship
• Write down your definition
• Now – in groups of 3
• Come up with a one sentence description
of entrepreneurship
• Write it on the board
 Traditional Definitions of Entrepreneurship

 Traditional “street” view

– Starting a new business
• “New entry” as the central idea: The act of
launching a new business—either by a start-up or
through an existing firm (e.g. corporate venturing)

© abson College 4
 Entrepreneurship….

 Is about people
 One life-long career is a thing of the past for most
 Create the capacity to enact entrepreneurial abilities
• When the opportunity presents itself
• When circumstances present a need or opportunity
 Build positive attitudes and skills
 Can happen anywhere
 Startups
 Mature businesses
 Family businesses
 Social enterprises

© abson College 5
 Entrepreneurship Is a Process

 It’s a learning process

 Within a venture
 Across multiple ventures
 Failure has to be an accepted part of the
process
 If you try something, you might fail
 But if you don’t try at all, you certainly won’t
succeed
 Learning from failure eventually leads to
success if one persists, learns, and adapts

© abson College 6
Entrepreneurship Is NOT Linear

Detailed
IDEA Assessment Investigation:
Current LeapsDevelop
of
Develop
Faith (Assumptions
Concept
Revised Business lacking evidence)
Opportunity
(Current Plan
Iteration)

Test and
Validate

Information Gathering,
Observations/
Learning Launch
Conversations,
Experiments
 Babson’s Definition of E-ship

Entrepreneurship is about the ability to

organize resources, and provide the
leadership, to act on opportunities to
create social and economic value…

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 Babson’s Approach!

• Entrepreneurs are not defined by a set of traits, but

by their pattern of BEHAVIOR and ACTION taken
• It is how they THINK and what they DO that
MATTERS; PROCESS is more important
• Don’t let any specific definition of an entrepreneur/
entrepreneurship pigeon hole you into inaction –
YOU CAN BE ONE; you can be entrepreneurial!

“Process” + “thought & action-oriented”

is the Babson way to approach Entrepreneurship!
© Babson Global 9
 Entrepreneurship

It’s a mindset! It’s about action! It’s a process!

© Babson Global 10
 Two Ways of Thinking
Predictive and Creative Logic
Predictive Logic Creative Logic
 Puzzle  Quilt
 Known Rules  Unknown Rules
 Known Outcome  Unknown Outcome
 Inductive and Deductive  Smart ACTION trumps
 Analytic analysis
 Use when you can predict  Use when the future
the future from past cannot be predicted
actions  Suits uncertain
situations

Both are important! Use in different

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contexts!
 Prediction vs. Creative Reasoning

Prediction
 I’m in the mood for something sweet
 I definitely want chocolate – Silver Queen chocolate
 I go to the store and buy exactly what I want

© Babson Global 12
 Prediction vs. Creative Reasoning
Creative
 I am craving something sweet
 I go to the candy store and explore to see what splendid treat I can buy

© Babson Global 13
 Initial Resources Start with You!

 Who am I
 Interests, skills, passion, values
 What do I know
 Knowledge, experience
 Whom do I know
 Network of friends, contacts

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FUN WITH RIVERS

Suramadu Bridge
 DRAWING BRIDGES
Students Drawing the Bridge
 How did you start? What did you look at?
 Was it clear what the possibilities were to begin?
 What assumptions did you make about materials
design and scale?
 Did you follow a formula? Draw curves first….?
 Was the assignment clear to you?
 Was it helpful to have a model to follow?
 Did you know where you would end up?
 DRAWING ACCESS TO OTHER SIDE
Students Drawing a Way to Get Across the River
 How did you start? What did you look at?
 Did you create anything other than a bridge?
 Did you think about what you knew about bridges or
other ways to cross a river?
 Was it clear what the possibilities were to begin?
 Did you make more than one attempt?
 Was the assignment clear to you?
 Was it hard not having a model to follow?
 Just Start

 Act with the Means at Hand

 Assess Your Acceptable Loss
 Build on What You Find
 Bring Other People Along

© Babson Global 18
 When Do You Stop?

You don’t!
• Reshape opportunity
Changing goals? Additional
resources/talents?

Continue until:
• You don’t want it,
and/or
• You exceed your
affordable loss, and/or
• You prove to yourself
it cannot be done Source: Saras Sarasvathy

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 AHA for the Day

• What was the most important idea that

you learned today that you want to
remember and use
• Write it down
• Share with the person next to you
Questions?