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IT EntrepreneursAmanda Koehler,
Dee Dee Veal,
Balazs Klanicza,
Kesorn Tongwan
1
Self-Portrait of Poly, Monet
Objectives Understand the evolving definition of an
entrepreneur Learn about the characteristics and demographics of
entrepreneurs Meet real entrepreneurs from around the globe Examine the large amount of research that has been
conducted on entrepreneurs and compare it to the entrepreneurs we interviewed
Find out if you have what it takes2
Entrepreneur French origin – “to undertake” (13)
Richard Cantillon (1730) – “self-employment of any and every sort”, including beggars and robbers (22)
One who organizes, manages and assumes the risk of a business or enterprise (13)
Peter Drucker, modern management theorist - “Shifts economic resources out of an area of lower and into an area of higher productivity and greater yield,” (22)
3
Objectives Understand the evolving definition of an
entrepreneur Learn about the characteristics and demographics of
entrepreneurs Meet real entrepreneurs from around the globe Examine the large amount of research that has been
conducted on entrepreneurs and compare it to the entrepreneurs we interviewed
Find out if you have what it takes4
Qualities of an Entrepreneur Inner drive to succeed Strong belief in
themselves Open to change Competitive Highly motivated
Initiative Commitment Leadership Self-direction Optimism Hard work
(11,12,13)5
Demographics: Age Greater levels of experience,
superior personal networks, and a stronger financial asset base
Entrepreneurship increases with age (2002) 21% of the working
population, age 66+ 11%, age 25-54 8%, age 25-34
Pablo Picasso’s Old Guitarist(17)6
Demographics: Gender Women owned firms have a higher probability of
closure and a lower probability of becoming profitable (Study of 2,994 US companies, 1993)
In 2000, more men than women in the US were self-employed
(19)7
Cultural Influences
In a review of 21 empirical studies, Hayton, George and Zhara found that cultures that value risk taking and independent thinking (such as the United States, Singapore and many European countries) have more entrepreneurial activity
Cultures that value conformity, group interests and control (many Asian and Islamic nations) over the future have less
(19)8
Guess the Entrepreneur
9Bill Gates, Microsoft
Objectives Understand the evolving definition of an
entrepreneur Learn about the characteristics and demographics of
entrepreneurs Meet real entrepreneurs from around the globe Examine the large amount of research that has been
conducted on entrepreneurs and compare it to the entrepreneurs we interviewed
Find out if you have what it takes10
Meet Real Entrepreneurs from Around the WorldMatthew Porter,
St. Louis, MO
Akom Thongloy,
Thailand
Csaba Zajdó,
Hungary
11
Matthew Porter Owner and founder of Contegix St. Louis, MO 32 years old
12
Background Introverted, logical middle child Grandpa bought him his first computer when he was
six years old Sold his first commercial software at age seven CBC High School graduate Began as a Pre-Med Student at St. Louis University Changed his major to computer science after the
first semester
13
Career Background Started a small business computer consulting
company in 1998 Sold the customer base to pay for his wedding Worked in industry to learn the right and
wrong ways to operate Managed a software development project that
was shelved when the company was acquired by a competitor
14
Contegix With his wife’s help, he decided it was time
to start his own business Founded Metissian with his friend Craig,
while still working full time at Demand Management
Contegix began because customers wanted and needed hosting services
15
Csaba Zajdó Co-owner, founder and CEO of WebShop-
Experts Debrecen, Hungary 25 years old
16
Csaba’s Background Extroverted, logical Very talented in Math and Computer Sciences Competitive personality Local high school MSc Degree in Business Administration at
the University of Debrecen Programming-mathematic studies, graduation
in 2008 or 2009
17
Business icon: Bill Gates First thought of starting a business at age 14 Early plans at the age of 18 Started his company in the beginning of 2006,
at the age of 23
Csaba’s Background
18
No prior work experience, started in the last semester of business studies
He started the company with almost no money and experience
Founded the company with his brother with minimal financial help from their parents
Csaba’s Career Background
19
WebShop-Experts
Founded in the beginning of 2006 In 6 months, he got an office equipped and
had his first employee After one year, he had 5 employees Currently, 14 people on his team with good
potential for further growth
20
Akom Thongloy Owner and founder of Extreme Solution Bangkok, Thailand 30 years old
21
Akom’s background Extroverted, self-directed Grew up in agricultural family Graduated with a Bachelor’s degree in
Electronics Engineering Interested in Web designing and Visual Basic
22
Akom’s Career Background Worked in an IT company for 2 years Together with his former classmate, he started
his own company, Extreme Solution Started serving clients who he had known
since he worked in former company.
23
Extreme Solution Founded in 2005 Focus on customer service Decentralized organizational structure Profit increased around 40% since first year
24
Hobbies of Entrepreneurs
Matthew Porter, Contegix
Csaba Zajdó,
WebShop-Experts
Akom Thongloy, Extreme Solution
Weekly yoga class with wife Spend time with three kids Write code for fun
Body building Starcraft (3x WCG) Girlfriend
Play guitar Surf the InternetRead a book
25
Guess the Entrepreneur
26Jeff Bezos, Amazon
Objectives Understand the evolving definition of an
entrepreneur Learn about the characteristics and demographics of
entrepreneurs Meet real entrepreneurs from around the globe Examine the large amount of research that has been
conducted on entrepreneurs and compare it to the entrepreneurs we interviewed
Find out if you have what it takes27
Hatch & Zweig Study Sample: Over 50 In-depth interviews with
entrepreneurs from the Chicago area Findings:
Middle to Upper Class families Post secondary degree unrelated to business field Different stages of onset Modest performers in other aspects 5 key personal characteristics
(8)28
The Stuff Entrepreneurs are Made of
RISK TOLERANCE
DESIRE FOR CONTROL
DESIRE TO SUCCEED
PERSEVERANCE
DECISIVENESS
ENTREPRE-NEURIAL SPIRIT
GENERATION OF BUSINESS CONCEPT
SE
RE
ND
IPIT
Y
BIRTH OF THE FIRM
+
(8)29
Northeastern University Study School of Technological Entrepreneurship Sample: 202 U.S. based entrepreneurs
(9) 30
Were your parents, grandparents, or siblings entrepreneurs?
Yes38%
No62%
Northeastern University Study
N=202
Yes33%
No67%
Our Interviews
N=3
31
(10)
At what age did you launch your first venture ?
42%
33%
13%
12%
Childhood
18-30
30-40
40+
33%
67%
32
Our Interviews
N=3
Northeastern University Study
N=202
(10)
Childhood
18 - 30
Childhood
18 - 30
40+
30 -40
What was your biggest inspiration?
33%
36%
11%
20% Myself
Family
IndustryIconWorkExperience
34%
33%
33%
33
Our Interviews
N=3
Northeastern University Study
N=202
(10)
Myself
Family
Work
IconIcon Myself
Family
What were your biggest motivators towards starting your own venture?
16%
21%
1%
62%
PeerSuccesses
WorkExperience
HigherEducation
InnateDrive
33%
67%
34
Our Interviews
N=3
Northeastern University Study
N=202
(10)
Innate
Peers
WorkPeers
Work
How fearful were you that your first venture would not succeed?
12%
14%
32%
42%
Fear delayedventure
Significantfear
No fear
Some fear,but confident
35
Our Interviews
N=3
Northeastern University Study
N=202
(10)
Some fear
Some fear
100%
No fear
Significant
Fear delayed
Do you consider yourself a risk taker when making big decisions that deal with your business?
41%
49%
5% 5%Yes
Somewhatcautious
Big decisionskeep me up atnightI avoid bigdecisions 100%
36
Our Interviews
N=3
Northeastern University Study
N=202
(10)
Somewhat
Yes
Yes
Results of SurveyQuestion Survey Majority
ResponseInterview Majority
Response
Family member Entrepreneur No No
First Venture During Childhood Age 18-30
Biggest Inspiration Family Mixed response
Biggest Motivator Innate Drive Work
Fear of failure Some fear, but confident
Some fear, but confident
Risk taker Somewhat cautious Yes
(9 , 10)37
Donald J. Taffi ResearchMatthew Porter,
Contegix
Csaba Zajdó, WebShop-
Experts
Akom Thongloy,
Extreme Solution
Unusually well-developed ego
Detail oriented, perfectionists who rarely develop personal intimacy in their relationships
Endowed with inexhaustible reservoir of energy
Nothing is done soon enough, everything is a crisis
Tend to be contingency thinkers, generally six months or longer ahead
Unwilling to surrender the need for complete control
Above average intelligence; tend to see the “big picture”
Higher than normal level of emotional stability
Strong desire to succeed, passion for product or business
Calculated risk takes, not gamblers
(7)
38
Taffi’s Conclusion “It takes one to know one”
(7)39
Guess the Entrepreneur
40Mark Zuckerberg, Facebook
Start Up Cost One of the most intimidating aspects of starting
your own business in any industry Microsoft’s Small Business Center recommends
saving enough to cover your initial expenses plus six months worth of operating expenses
(1)41
Interviews: Start Up Costs
Matthew Porter, Contegix: Initially none, because still working full time. Then when money was needed for expansion, they sold an interest to a minority shareholder company
Csaba Zajdó, WebShop-Experts: Almost nothing, but foundation costs. Needed only a computer and knowledge (rather business skills than technical!)
Akom Thongloy, Extreme Solution: Initially none. Reinvested profits to expand the company.
42
Location, Location, Location West and Bamford studied two recent literature
reviews to identify the characteristics present in communities that foster entrepreneurial growth
What factors created the Silicon Valley successes?
Universities Government Business Human Resources
Social/Financial Structure
Community Resources Infrastructure
(6)43
Interviews: LocationMatthew Porter,
St. Louis, MO
Csaba Zajdó, Debrecen,
Hungary
Akom Thongloy, Bangkok,
Thailand
Pros Moderate wages;
Low cost of living; Family environment
Cheap labor force;
Huge opportunities; Globalized market
Center of Business;
Close to customers
Cons Conservative money Highly competitive because of low start up costs
Highly competitive
44
Perfect Timing MobileStar’s portable data
network failure Interviews:
Matthew Porter, Contegix – fate led to good timing
Csaba Zajdó, WebShop-Experts – Cool e-commerce, everyone is in the hype of internet
Akom Thongloy, Extreme Solution – Initial customers encourage to start own company
(15)45
Now is the time! Sales figures for tech leaders, like Microsoft
and Intel are up Stock prices are up Venture capital investment increase 8% in 2004, and
similarly in 2005 and 2006 Amazing stories like that of Google show that
companies are making a come back from the dot-com burst
(20)46
Acting as CEO According to Mark
Henricks in Entrepreneur Magazine, it may be best to demote yourself and place someone with experience in your company’s top position
(2)47
Role of Entrepreneurial CEO
The remaining 12% is devoted to “Playing” activities including negotiating, technical grasp of firm, monitoring employees, and contacting suppliers, customers and other related parties.
(3)48
Interviews: Acting as CEO Matthew Porter, Contegix: “I don’t have an MBA,
but I know when to shut up and listen to what customers want and balance that with our core competencies.”
Csaba Zajdó, WebShop-Experts:“Marketing and management - that's the two main parts where I concentrate my efforts.”
Akom Thongloy, Extreme Solution: “Empowering employees is the way to keep them with the company”
49
Importance of Education1. Dropouts: $131.36 Billion
*Bill Gates Microsoft 56 Billion*Paul Allen Microsoft 18 Billion*Larry Ellison Oracle 21.5 Billion*Steve Jobs Apple 20 Billion*Michael Dell Dell 15.8 Billion*Mark Zuckerberg Facebook 1 Billion (2006 rejected buyout offer)*Kevin Rose Digg 60 Million+ (Business Week August, 2006)
2. Stanford University: $38.9 Billion*Larry Page Google 16.6 Billion*Sergey Brin Google 16.6 Billion*David Filo Yahoo $3 Billion*Jerry Yang Yahoo 2.2 Billion*Reid Hoffman Linkedin 500 Million (Digg, Technorati, Facebook; original PayPal board member)
3. Tufts University: $10.2 Billion 4. Princeton University: $3.6 Billion 5. University of Illinois at Urbana-Champaign: $600 Million 6. Indiana University of Pennsylvania: $500 Million 7. Claremont Colleges: $30 Million
(4)50
Interviews: Education Matthew Porter, Contegix: BS, Computer Science
Education was crucial. Not because of textbook knowledge, but learning how to think (develop professionalism and views).
Csaba Zajdó, WebShop-Experts: MSc in Business Administration and ongoing MSc studies in Programming-Mathematics Learned the basics of most of the important fields
Akom Thongloy, Extreme Solution: BE, Electronics Important to get degree, because it gave him credibility in the eyes of
his customers.
51
Do You Feel “Cool”? David Margulius of InfoWorld said in a recent article that
“Entrepreneurship has become cool again, if not obligatory, for IT.”
Interviews: Matt Porter, Contegix
No need for “Rockstar CEOs” Tells people, “I work for Contegix”, not “I own it!”Csaba Zajdó, WebShop-Experts It is rather “uncool” in Hungary Usual for everyone, who can make a website to make his
own company, and start earning "big money" Akom Thongloy, Extreme Solution Feeling more proud than cool
(5)52
Guess the Entrepreneur
53Larry Ellison,
Oracle
Objectives Understand the evolving definition of an
entrepreneur Learn about the characteristics and demographics of
entrepreneurs Meet real entrepreneurs from around the globe Examine the large amount of research that has been
conducted on entrepreneurs and compare it to the entrepreneurs we interviewed
Find out if you have what it takes54
Marriott School Entrepreneurial Test Audience results? If you scored +35 or more, you have everything going for you. You ought to achieve spectacular
entrepreneurial success (barring acts of God or other variables beyond your control). lf you scored +15 to +34, your background, skills and talents give you excellent chances for
success in your own business. You should go far. If you scored 0 to +15, you have a head start of ability and/or experience in running a business and
ought to be successful in opening an enterprise of your own if you apply yourself and learn the necessary skills to make it happen.
If you scores 0 to -15, you might be able to make a go of it if you ventured on your own, but you would have to work extra hard to compensate for a lack of built-in advantages and skills that give others a leg up in beginning their own business.
If you scored -15 to -43, your talents probably lie elsewhere. You ought to consider whether building your own business is what you really want to do, because you may find yourself swimming against the tide if you make the attempt. Another work arrangement—working for a company or for someone else, or developing a career in a profession or an area of technical expertise—may be far more congenial to you and allow you to enjoy a lifestyle appropriate to your abilities and interests.
55
(14)
Myers Briggs Type Indicator Examines preferred styles of perception and judgment Entrepreneurs are more intuitive, thinking and
perceptive Managers are more sensing, feeling, and judging http://www.funeducation.com/products/testmaster/
(16) 56
Suggestions for Aspiring Entrepreneurs Matthew Porter, Contegix:
Pay attention to the market, but don’t allow it to be your sole indicator
Do an internship while you are a student to gain experience
Understand what you are getting into – mentally, financially, and intellectually
57
Suggestions for Aspiring Entrepreneurs Csaba Zajdó, WebShop-Experts
Learn marketing and management Maybe get some experience somewhere first. He
didn't have any, and sometimes he feels that maybe it wouldn't have hurt being employed first. But he has got over his inexperienced phase successfully, so it does not really matter any more
58
Suggestions for Aspiring Entrepreneurs Akom Thongloy, Extreme Solution:
Know the direction of your company Be able to estimate the market share and competitors Understand the customer demand
59
Objectives Understand the evolving definition of an
entrepreneur Learn about the characteristics and demographics of
entrepreneurs Meet real entrepreneurs from around the globe Examine the large amount of research that has been
conducted on entrepreneurs and the entrepreneurs we interviewed
Find out if you have what it takes60
Conclusion Research on entrepreneurs offers various
conclusions Location of entrepreneur also affects the
business environment Don’t be afraid to start your own business!
61
62
References1. Microsoft Small Business Center
http://www.microsoft.com/smallbusiness/resources/expert/strauss102005.mspx2. Henricks, Mark. “Bringing in a CEO.” Entrepreneur Magazine March 2007.3. Fried, Vance H. et al. “The Entrepreneurial CEO as "Coach/Player.”’ The
Journal of Private Equity. London: Summer 2006. Vol. 9, Iss. 3; pg. 35, 8 pgs.4. New York Habit Blog. “The Top Ten Colleges of Today’s Richest Tech
Entrepreneurs.” http://richohanian.wordpress.com/2007/04/11/the-top-10-college-degrees-of-todays-richest-tech-entrepreneurs/
5. Margulius, David L. “Entrepreneurial IT.” InfoWorld 28 (2006): 21-27.6. West, G. Page III and Charles E. Bamford. “Creating a Technology-Based
Entrepreneurial Economy: A Resource Based Theory Perspective.” Journal of Technology Transfer 30 (2005): 433-451.
7. Yarzebinski, Joseph A. “Understanding and Encouraging the Entrepreneur.” Economic Development Review 22 (1992).
63
References Continued8. Hatch, Jim, and Zweig, Jeffrey, “What is the stuff of an entrepreneur?” Ivey
Business Journal, Nov/Dec 2000, Vol. 65, Issue 2, pp. 68-72.9. “New Survey Shows Two-Thirds of Entrepreneurs Born not Bred…” PR
Newswire US, 2006.10. http://www.neu.edu/sote/Documents/NEU%20STE%20Born%20v%20%20Bred
%20Survey%20Results.pdf?u=618982550144 viewed September 19, 2007.11. http://www.woopidoo.com/articles/geimure/entrepreneur-article.htm, viewed
October 3, 2007.12. Garrett, Sheryl. “The True Entrepreneur.” Financial Planning. May 2006. pp.
115-116.13. http://en.wikipedia.org/wiki/entrepreneur viewed September 27, 2007.14. http://marriottschool.byu.edu/cfe/startingout/test.cfm viewed October 3, 2007.15. Umesh, U.N. et al. “Creating Successful Entrepreneurial Ventures in IT.”
Communications of the ACM 48 (2005):82-87.16. Caird, Sally P. “What Do Psychological Tests Suggest About Entrepreneurs?”
Journal of Managerial Psychology 8 (1993): 11-20.
64
References Continued17. Weber, Paull and Schaper, Michael. “Understanding the Gray Entrepreneur.” Journal of
Enterprising Culture 12 (2004): 147-164.18. Hayton, James C. et al. “National Culture and Entrepreneurship: A Review of Behavioral
Research.” Entrepreneurship Theory and Practice (2002): 33-52.19. Robb, Alicia M. “Entrepreneurial Performance by Women and Minorities: The Case of New
Firms.” Journal of Developmental Entrepreneurship 7 (2002): 383-396.20. Umesh, U.N. et al. “Current Issues Faced by Technology Entrepreneurs.” Communications
of the ACM 50 (2007): 60-66.21. Interview with Matthew Porter, CEO and founder Contegix. Interviewed September 18,
2007. St. Louis, MO. 22. Interview with Akom Thongloy, CEO and founder Extreme Solution. Interviewed October
20, 2007. 23. www.extremesolution.co.th24. Long, Wayne. “The Meaning of Entrepreneurship.” American Journal of Small Business
VIII (1983).25. Interview with Csaba Zajdó, CEO and founder of Webshop-Experts. Interviewed October
24, 2007. Debrecen, Hungary
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