6.1 Flashcards
Forms of Capital
1-5
1 Human
2 Social
3 Natural
4 Physical
5 Financial
1 Human Capital
normal vs. entrepreneurial
- capabilities & knowledge
- personality
normal:
- investment education: educational level, in-company training)
- investment experience (work experience, internships)
entrepreneurial:
- education: management studies, entrepreneurial training, learning by doing
- experience: self-employment, search for experienced team, exchange and cooperation
Definition Social Capital
Social Capital is the contribution to an organizations success that can be attributed to personal relationship and networks, both within the organization and outside of it.
Social capital
1-3
Social capital further measures group effectiveness itself
- bonds (family, close friends, culture)
- bridges (distant friends, colleagues, associates)
- linkages (people/groups up or down the social ladder)
Effect of high Social Capital in Start-ups
1-3
- people with higher social capital found more companies (intention & behavior)
- people with higher social capital found companies faster (venture creation progress)
- companies founded by people with higher social capital perform better (venture performance)
Factors that improve social capital of company
1-7
1 networks
2 trust
3 reciprocity
4 participation
5 values / norms
6 diversity
7 sense of belonging
Self-assessment of social capital
1-3
- Do i have the necessary know-how about industry, market and technology?
- Do i have the knowledge to accomplish those critical tasks?
- is my required business network big enough?
Failure of Startup
- 9 out of 10 ventures fail
30-40% liquidation of all assets
70-80%: failing to see the projected return on investment
90-95%: failing to meet the projection
reasons why startups fail
1 No market need: 42%
2 ran out of cash: 29%
3 not the right team: 23%
4 get outcompeted: 19%
5 pricing/cost issues: 18%
6 user unfriendly product: 17%
Shakeholders
1: 1-3
2: 1-7
intern:
1 founder
2 employees
3 management
extern:
1 shareholders
2 creditors
3 customers
4 government
5 suppliers
6 society
7 competition
Leadership
leadership is: 1-4
1 influence employees to achieve organizational goals
2 influence others to put action into goals/targets
3 create support/confidence to achieve goals
4 a power of influencing others
Leadership according to Taylor
„Workers dont usually enjoy work. Because of this, they need to be monitored and controlled closely.“ F.W. Taylor, Scientific Management
- science, not rule of thumbs
- scientifically train employees
- pay based on results
- ensure that most efficient ways of working are used
- divide work between mangers and workers
Manager vs. Leader
1-5
M vs. L
1 do the thing right vs. do the right thing
2 have employees vs. create fans
3 direct vs. coach
4 build processes vs. build relationships
5 rely on existing skills vs. grow personality
Entrepreneurial Leadership
1 Scenario enactment
- envisaging and creating a scenario of possible opportunities
- can be seized to revolutionize current set
- given resource constraints
2 Cast enactment
- convincing both potential followers and network of stakeholders
- transformation is possible by assembling resources
What great leaders have in common
1-5
1 performance oriented
2 visionary
3 convincing, inspirational, encouraging
4 improvement oriented
5 decisive
Factors adding Entrepreneurial Spirit
1-5
1 Autonomy
2 competitive aggressiveness
3 innovativeness
4 proactiveness
5 risk-taking
Factors adding Entrepreneurial Spirit
1 Autonomy
- independent action taken
- bringing new venture to seeing it to fruition
Factors adding Entrepreneurial Spirit
2 Competitive aggressiveness
- efforts to outperform rivals
- strong offensive posture/aggressive responses to actions of competitors
Factors adding Entrepreneurial Spirit
3 Innovativeness
- creativity and experimentation to introduce new products/services/processes
Factors adding Entrepreneurial Spirit
4 Proactiveness
- opportunity-seeking
- forward-looking
- introduction of new products/services to get ahead
- anticipate future demand
Entrepreneurial principles
1-5
1 focus on control (environment shapable)
2 means-oriented (preferences, knowledge, networks)
3 affordable loss (restriction on downside potential)
4 partnerships (partners share means)
5 leveraging contingencies (incorporation of external info)
Entrepreneurial Leadership based on effectuation
- Entrepreneurs reluctant to set specific goals
- control evolving processes without prediction
- employees co-create the firm
- employee competencies leveraged as means for firm
- absorb the paralyzing effects of uncertainty by applying principle of affordable loss
- create environment of validated learning (allow failure/learning; make sure learning is captured)
Entrepreneurial success factors
1-10
1 Be passionate
2 Maintain focus
3 Work hard and focus on things you can control
4 Be willing ti take action and make decisions - fast!
5 Enjoy the journey. And do no plan with the exit scenario
6 Be flexible but persistent. Build resilience
7 Know your own core skills and strengths. And trust the team
8 Focus on execution
9 Connections. And maybe luck
10 Entrepreneurial knowledge
