Basics of Entrepreneurship Flashcards
Gründerzeit
- time between Revolution 1848/49 and forming of rich
founding - golden age of the liberalism
- founding had a negative touch because of the
speculative character - reasons: win of the war against France, repair payment,
motivation, rich founding - p.ex.: Dt. Bank, Commerzbank, Thyssen, Siemens, Krupp
- invention of the railway after the steam Engine
Gründerkrach
- stock market crash 1873
- crises, deflation, Great Depression
Types of innovations
- 4 + 1
- old solution & old problem:
Incremental innovation (Iphone 6) - old solution & new problem:
Technology-Push Innovation ( Sony Walkman)
- new solution & new problem: Radical Innovation (electrical light)
- new solution & old problem:
Market-Pull Innovation (car airbag) - disruptive innovation
destroying breakthroughs
often crated by start up`s , developing a new customer
rate, reaching the core markets
dilemma: the big firms miss the connection (Kodak)
The 6 points of the ecosystem
- Capital
- Policy
regulations, tax fees, special facilities - Support
- Culture & Community
- Market Characteristics
technology adoption rate, access to markets - Talents
unicorns
- start-up`s
- reaches without established performance record an
estimated valuation of more than 1 billion dollars - first ones founded in the years 1990: Google
- most of them came around 2000: Facebook
reasons for the start-up explosion
- micro-multinationals
- speed of consumer adoption of new technology
telephone, tv - start-up`s can be built for thousands
easier terms of financing
uber - higher resolution venture finance industry
higher chance for venture capitals, less costs than in the
past - Entrepreneurship is developing its own management
science
research in many universities
founding
- many big companies founded in Germany between
1800 and 1900, from then on decreasing - American firms are rather founded from the end of the
19th century until today - Business Angels and Venture Capital
founding in Germany
- public risk capital
investment funds for high-risk investments / start-up`s
highest sum in Bayern - Entrepreneurship mostly in Bayern + Nordrhein-
Westfalen
Gründerzeit vs. internet era
Talent
= People having ideas and executing them as entrepreneurs
comparison:
- entrepreneurship has become aspirational since 2012 latest
- more and more talents want to become entrepreneurs
- Gründerzeit is also known as an era of pioneers
Gründerzeit vs. internet era
capital
= risk capital that can be invested in new firms
- during Gründerzeit lots of capital was floating the market due to
French Reparation payments - today lots of capital is available as interest rates are fairly low
Gründerzeit vs. internet era
policy
= regulation, tax laws
- “Aktien-Novelle” during Gründerzeit
- nowadays regulators strongly support startups on all different
levels - p.ex. sandbox uk - allows businesses to test innovative products, services, business models and delivery mechanisms in real market
Gründerzeit vs. internet era
support
= support institutions, infrastructure
- today lots of accelerators incubators emerge
- accelerators + incubators are programs to help start-up’s with
knowledge, networks, coaching, work space, resources - at that time families like Rothschild strongly supported entrepreneurs
Gründerzeit vs. internet era
culture & community
= mindset of the people, paying forward
- time of revolution since 1848
- today entrepreneurship is become an attractive career model
Gründerzeit vs. internet era
market characteristics
= access to markets, structure of markets, technology adoption
rate
- radically new technologies (internet + railways) make it possible to
reach new markets easier than before
