W2, Entrepeneurship

Question 1

What is entrepeneurship?

Answer 1

• Definition: ‘The pursuit of opportunity beyond resources controlled
• ’1 The three elements of pursuit, opportunity and ‘beyond resources controlled’ are defined by Stevenson as follows:
• “Pursuit” implies a singular, relentless focus
• “Opportunity” implies an offering that is novel in one or more of four ways. The opportunity may entail: 1) pioneering a truly innovative product; 2) devising a new business model; 3) creating a better or cheaper version of an existing product; or 4) targeting an existing product to new sets of customers
• “Beyond resources controlled” implies resource constraints. At a new venture’s outset, its founders control only their own human, social and financial capital

Question 2

How do entrepeneurship & innovation relate to pharmacy & healthcare?

Answer 2

• ‘In the context of pharmacy, entrepreneurship is generally associated with the establishment of community pharmacy and business management. However, entrepreneurship and its associated skills are key to the development of a range of health services in community and hospital sectors.’ Laverty, Hanna, Haughey and Hughes 2
• UK: repeat dispening, medication management, minor ailment services, pharmacists prescribing meds
• US: patient adherance, medication management therapy programs; with interactive voice recognition tools to remind patients to pick up or order medications
• AUS: provision of influenza vaccines, in store allied health services
• entrepeneurship is more than dispensing & OTC sales but interaction with patients & clients

Question 3

Example of entrepreneurship (1)

Answer 3

• U.S. Pharmacist turned fintech entrepreneur3 • Michael Rea, Kansas City pharmacist
• Medicines very expensive
• Mr Rea invested his time in working out alternative, more affordable medicines
• Savings of $250 per month for one customer
• Created the company Rx savings
• Now employing 35 people

Question 4

Example of entrepreneurship (2)

Answer 4

• View Health (chemo@home)4
• Founded in 2013 by:
• Julie Adams, Curtin University Graduate and Cancer Services Pharmacist and (2016 Telstra Business Woman of the Year) and •Lorna Cook, Registered Nurse & MBA qualifications
• Both founders realised there was a gap in the service delivery systems available for an ‘at-home’ service for patients requiring chemotherapy and other infusion treatments
• This multi award winning company is now Australia’s leading provider of home based infusion treatments, including:
• Chemotherapy
• Immunotherapies
• Targeted cancer therapies
• Infusions for chronic conditions
• Iron infusions and many others

Question 5

The entrepeneurial process

Answer 5

1. Identify an opportunity
   - change in demographic
   - new technologies
   - emergence of new market segments
   - regulatory change
2. Develop the concept
   - opportunity for new products, services or processes/
   - new technologies or sales distributions channels
3. Determine required resources
   - skilled employees
   - some general management expertise
   - technical expertise
   - financing & distribution supply
   - sources of supply
   - protection of intellectual property
4. Acquire necessary resources
   - debt, equity, leasing
   - temporary staff
   - joint ventures
   - supplier financing
5. Implement & manage
   - implementation of concepts
   - re investment
   - expansion
6. Harvest the venture
   - absorbing the new concept into mainstream operations if successful
   - licensing of rights
   - family succession
   - selling venture
   - going public
   - if unsuccessful, selling the venture