IT Entrepreneurs By: Ben Pritchett Larry Welch Nick Wnuk Sunee Sae Tan Thanisara Sanpanorasete (Aim) 1
Objectives Meaning of Entrepreneur Start-up/Small Business Success and Failure Rates Meet with Local, International and Global Entrepreneurs Characteristics/Traits of Entrepreneurs 2
Guess the Entrepreneur Steve Jobs Apple 3
Objectives Meaning of Entrepreneur Start-up/Small Business Success and Failure Rates Meet with Local, International and Global Entrepreneurs Characteristics/Traits of Entrepreneurs 4
What is Entrepreneurship “Entrepreneurship is the process of creating or seizing an opportunity and pursuing it regardless of the resources currently controlled” (Timmons, 1994) Byers, Tom. , Helee Kistc and Robert Sutton, Characteristics of the Entrepreneur: Social Creatures, Not Solo Heroes, FL, October, 1997 5
Who is an Entrepreneur “a person who set up a business or businesses” (oxford dictionary) “The entrepreneur is the individual or team that identifies the opportunities, gathers the necessary resources, creates and is ultimately responsible for the consequences of the organization” • http: //www. smallbusinessnotes. com/choosing/whatis. html viewed March 23. • Carton, Robert. “The Entrepreneur and Entrepreneur ship: operational definitions of their role in society” 1998 6
Objectives Meaning of Entrepreneur Start-up/Small Business Success and Failure Rates Meet with Local, International and Global Entrepreneurs Characteristics/Traits of Entrepreneurs 7
Economic Perspectives 4 th Quarter 2007 Federal Reserve Bank of Chicago Evidence on Entrepreneurs in the United States, Data from the 1989 -2004 Survey of Consumer Finance “Entrepreneurs in the U. S. economy”, Monthly Labor Review, December 2007, P. 38. 8
Who are entrepreneurs ? People who own businesses, invest their own money in their businesses, and actively manage their businesses: self-employed business owners • 7% - 8% of the nation’s households are headed by people fitting this definition • They own nearly one-third of all wealth in the USA “Entrepreneurs in the U. S. economy”, Monthly Labor Review, December 2007, P. 38. 9
Their median net worth ranges between about $260, 000 and $540, 000 (about 4 and 6. 5 times the median net worth of other households) Their median income ranging from $52, 000 -$85, 000 The proportion of Entrepreneurs with a college degree is 15% - 20% higher than the rest of the population “Entrepreneurs in the U. S. economy”, Monthly Labor Review, December 2007, P. 38. 10
Northeastern University’s School of Technological Entrepreneurship The survey based on 202 responses The survey was distributed via email From September 27 through October 11, 2006 • • “New Survey Shows Two-Thirds of Entrepreneurs Born not Bred; …”, PR Newswire. New York: October 20, 2006. Taylor, Leslie. “Are Entrepreneurs Born or Made? ”, Education and Self-Improvement Article – Inc. October 24, 2006. 11
The survey showed: • • 42% launched their first venture in childhood 62% of entrepreneurs claim that they do not have a family member that is an entrepreneur “New Survey Shows Two-Thirds of Entrepreneurs Born not Bred; …”, PR Newswire. New York: October 20, 2006. Leslie Taylor, “Are Entrepreneurs Born or Made? ”, Education and Self-Improvement Article – Inc. October 24, 2006. 12
The survey showed: • • However, 36% of them picked family as their biggest inspiration Two-Thirds of them were motivated by innate desire “New Survey Shows Two-Thirds of Entrepreneurs Born not Bred; …”, PR Newswire. New York: October 20, 2006. Leslie Taylor, “Are Entrepreneurs Born or Made? ”, Education and Self-Improvement Article – Inc. October 24, 2006. 13
What were your biggest motivators towards starting your own venture? • http: //www. neu. edu/sote/Documents/NEU%20 STE%20 Born%20 v%20%20 Bred%20 Survey%20 Results. pdf? u=6189825 50144 viewed April 4. 14
How fearful were you that your first venture would not succeed? • http: //www. neu. edu/sote/Documents/NEU%20 STE%20 Born%20 v%20%20 Bred%20 Survey%20 Results. pdf? u=6189825 50144 viewed April 4. 15
Do you consider yourself a risk taker when making big decisions that deal with your business? • http: //www. neu. edu/sote/Documents/NEU%20 STE%20 Born%20 v%20%20 Bred%20 Survey%20 Results. pdf? u=6189825 50144 viewed April 4. 16
Small Business • Defined as having fewer than 500 employees • Employ about 50% of U. S. workers • 67% of new employer businesses survive 2 years • 44% survive at least 4 years • U. S. has 24, 653, 098 small businesses • Missouri contains 461, 259 small businesses • Knaup, Amy. “Survival and Longevity in the Business Employment Dynamics Database”, Monthly Labor Review, vol 128, no 5, May 2005, pp. 50 -6 • Headd, Brian. “Redefining Business Success: Distinguishing between Closure and Failure”, Small Business Economics, vol 21, no 1, Aug 2003, pp 51 -61. 17
Small Business Statistics (US) Year 2004 2005 2006 New start ups 628, 917 653, 100 649, 700 Closed for business 541, 047 543, 700 564, 900 Bankrupt 34, 317 39, 201 19, 695 Closed for business and Bankrupt 575, 364 582, 901 584, 595 www. sba. gov/advo/research/ viewed April 8. 18
Guess the Entrepreneur Chris De. Wolfe & Tom Anderson My. Space 19
Objectives Meaning of Entrepreneur Start-up/Small Business Success and Failure Rates Meet with Local, International and Global Entrepreneurs Characteristics/Traits of Entrepreneurs 20
Meet with IT Entrepreneurs 21
Ed Heisler Narisara Chavaltanpipat Michael Dell 22
George Caleb Bingham, Stump Speaking, 1853 -1854 23
Ed Heisler 24
Personal Background 53 Years Old, raised in South St. Louis. Bevo neighborhood Married, 4 Children BS Management from Maryville University Technical Certificate from Washington University Enjoys fishing, golf and good cigars In childhood held various jobs such as grass cutting, delivery boy. Never afraid to put in a hard day’s work 25
Narisara Chavaltanpipat 26
Phuket, Thailand 27
Where is Phuket, Thailand? 28
Phuket, Thailand Total population is 315, 498 people registered as living in Phuket (December 2007) Total area is about 209. 66 sq miles (543. 03 sq km) and about the size of Singapore Each year, over 3 million visitors arrive to enjoy Phuket's natural splendor and many amenities. • • • http: //www. dopa. go. th/stat/y_stat 50. html viewed April 12. http: //www. doae. go. th/stats 9. htm viewed April 12. http: //www. phuket. net/visit-phuket/about/economy. htm viewed April 12. 29
Personal Background The second of six children Willing to own business since she was a child Bachelor’s Degree of Art major in Marketing from Srinakharinwirot University @ Bangkok, Thailand Master’s Degree of Art in Marketing from Webster University @ St. Louis, USA No IT – experiences before establishing these companies • Interview with Narisara Chavaltanpipat by phone, Phuketinternet Co. , Ltd. April 8, 2008 30
Michael Saul Dell 31
Personal Background Born February 23, 1965 Second of three sons (brothers: Steven & Adam) Father: Alexander -- Orthodontist Mother: Lorraine -- Stock Broker ◦ Met & married in Brooklyn; moved to Houston early 1960 s • Strategic Direction. , "There’s something about Dell: How to look good and stay healthy in middle-age". Vol. 21 No. 9 2005, pp. 8 -11, Emerald Group Publishing Limited, ISSN 0258 -0543. • Koehn, Nancy F. , Brand New: How Entrepreneurs Earned Consumers’ Trust from Wedgwood to Dell, p. 259 -305. Harvard Business School Press, Boston, 2001. 32
Personal Background Age 9 had checking account H. S. student assistant to principal ◦ wrote admin programs to track absences & budgets Age 15 parents purchased Apple II for birthday Age 16 assistant subscription coordinator Age 17 began purchasing used IBM PCs Fall 1983 enrolled @ the University of Texas at Austin ◦ Attended pre-med classes ◦ Devoted time to enhancing and selling IBM PCs Austin business-people at 10 – 15% below retail ◦ “I want to compete with IBM!” Became youngest CEO in Fortune 500 at 27 yrs old Koehn, Nancy F. , Brand New: How Entrepreneurs Earned Consumers’ Trust from Wedgwood to Dell, p. 259 -305. Harvard Business School Press, Boston, 2001. 33
Guess the Entrepreneur Mark Zuckerberg Facebook 34
Ed Heisler 35
Organization Background Started company in 1992. Made decision 1 year prior to start. Prior to that had various technical jobs with increasing responsibility up to VP Operations. Started the company because he had the feeling of “Been there…done that” and wanted challenges. Consulting/Engineering company-Security and Surveillance, Building Automation, Utility Analysis for large facilities/companies. Provides a niche between traditional consultants and systems integrators (Sales and Service Providers). Create something of value. Revenues from $500 k-$1 Million. 5 Employees • Interview with Ed Heisler, Principal, Facility Control Systems, Inc. , April 3, 2008. • Emma, Philip, “Reinventing Entrepreneurial Inventing for the 21 st Century”, IEEE Computer Society, January-February 2007, pp. 133 -135. 36
Organization Background Current Projects include design of: IP surveillance systems for Food container manufacturing plant, Theme Park, Food Distribution Facility. Utility Analysis for food manufacturer. Security for multiple Data Centers Fiber Optic Backbone for Theme Park Convergence of Physical Security with IT • Interview with Ed Heisler, Principal, Facility Control Systems, Inc. , April 3, 2008 • Geer, Daniel E, Jr. , “Convergence”, IEEE Security and Privacy Published by IEEE Computer Society, 2006, p. 88 37
Narisara Chavaltanpipat 38
Organization Background Setting up Phuketinternet Co. , Ltd. in 1996 as a local ISP Setting up Systems & Networks Solution in 2001 as a SI Company Taking over Abix Co. , Ltd. in 2007 as a retail computer shop • Interview with Narisara Chavaltanpipat by phone, Phuketinternet Co. , Ltd. April 8, 2008 39
Organization Background • B 2 B • B 2 C • B 2 B • B 2 C Targeted Market 1996 2001 • Interview with Narisara Chavaltanpipat by phone, Phuketinternet Co. , Ltd. April 8, 2008 2007 40
Organization Background 46 employees (in total of 3 companies) Targeted Revenue for this year is 50 million baht (about 1. 6 million dollars) Current Project: Wi. MAX, Vo. IP Solution Companies’ challenges: Technology goes so fast. Sellers and buyers do not have the same expectation. • Interview with Narisara Chavaltanpipat by phone, Phuketinternet Co. , Ltd. April 8, 2008 41
Michael Saul Dell 42
Organization Background • • • Jan 1984 registered PC's Limited (Texas) May 1984 incorporated Dell Computer Corp. (Austin) Moved to Round Rock, TX in 1994 ◦ Maintains manufacturing facilities in Austin Opened 1 st facility outside of TX in Nashville, TN in 1999 End Fiscal 2008, approx. 88, 200 employees Direct Customer Relationship Interacts > 3 million customers around the world Market Share: 1994 – 2. 7% Global & 4. 2% Domestic 2007 – 14. 7% Global & 30. 5% Domestic http: //www. dell. com/downloads/global/corporate/inv_history/market_share_q 2. pdf , viewed March 23, 2008. http: //www. crito. uci. edu/git/publications/pdf/dell. pdf, viewed March 31, 2008. Koehn, Nancy F. , Brand New: How Entrepreneurs Earned Consumers’ Trust from Wedgwood to Dell, p. 259 -305. Harvard Business School Press, Boston, 2001. 43
Organization Background http: //www. bloomberg. com/apps/news? pid=conewsstory&refer=conews&tkr=DELL: US&sid=a. Scf 7 TCv. Pxn. E#, viewed April 23, 2008. 44
Organization Background http: //www. bloomberg. com/apps/news? pid=conewsstory&refer=conews&tkr=DELL: US&sid=a. Scf 7 TCv. Pxn. E#, viewed April 23, 2008. 45
Organization Background Koehn, Nancy F. , Brand New: How Entrepreneurs Earned Consumers’ Trust from Wedgwood to Dell, p. 259 -305. Harvard Business School Press, Boston, 2001. 46
Organization Background http: //www. dell. com/downloads/global/corporate/sec/Q 410 KFY 08 pdf. pdf, viewed April 4, 2008. 47
Companies Comparison Ed Heisler Narisara C. Michael Dell Location St. Charles, MO (USA) Phuket, Thailand Round Rock, Texas (USA) Number of Employee 6 46 88, 200 (worldwide) Revenue (million dollars) 0. 5 -1. 0 -1. 2 61, 133 48
Guess the Entrepreneur Larry Page & Sergey Brin Google 49
Objectives Meaning of Entrepreneur Start-up/Small Business Success and Failure Rates Meet with Local, International and Global Entrepreneurs Characteristics/Traits of Entrepreneurs 50
Characteristics 51
Characteristics of Entrepreneurs Bianchi’s (1993) research examines how US individual demographic and cultural backgrounds affect the chances that a person will become an entrepreneur and be successful being an off spring of self-employed parents being fired from more than one job being an immigrant or a child of immigrants previous employment in a firm with more than 100 people being the oldest child in the family being a college graduate Bianchi, A. 1993. Who’s most likely to go it alone? Inc. 15(5): 58. Bianchi 52
Characteristics of Entrepreneurs Timmons’ (1994) analysis of more than 50 studies found a consensus around six general characteristics of entrepreneurs commitment and determination leadership opportunity obsession tolerance of risk, ambiguity and uncertainty creativity, self reliance and ability to adapt motivation to excel Timmon Byers Tom , Kistc Heleen, and Sutton Robert, Characteristics of the Entrepreneur: Social Creatures, Not Solo Heroes, FL, October, 1997 53
Characteristics of Entrepreneurs Southern Methodist University’s Cox School of Business (1999) came up with common characteristics of over 200 successful entrepreneurs. Successful was defined as being in business for at least 5 years and who has gross revenues of at least $1 million. good health a need to control and direct self-confidence sense of urgency comprehensive awareness realistic outlook conceptual ability low need for status objective approach emotion stability attraction the challenge describing with numbers Cox School of Business http: //www. aw-wrdsmth. com/FAQ/characteristics_successful_entre. html viewed March 27. 54
Smart Luck Nurtured Nature Soft Resilience Driven Discipline Detoured Brains Sly Ambition Divine Energy Double Vision Smart Luck Davidson, Andrew. “Smart Luck”, Management Today, Sept. 2001 pg 66 -71 55
Ed Heisler 56
Guess the Entrepreneur Theodore W. Waitt Gateway Computer 57
Characteristics Firmly believes in the rewards of hard work. Worked since 8 th grade. Feels that he could succeed in any endeavor as management skills are universal. Largest change was hiring 1 st employee. Told to “Grow or die” by customer. Risk not a huge factor as he feels he can work anywhere. Advice includes plan to wear many “hats”, work hard and deliver quality products and services with integrity. Very different view of employees at small companies (<20) vs large and their “ownership” of the company. He likes to play the role of “Devil’s Advocate” to ensure due diligence. 58
Observation Somark Innovations, RFID Ink 2 times as long, 3 times as much money Biggest challenge was financing Probably would not have succeeded in another city due to their contacts from Washington University and local business and organizations such as Arch Angels Develop patience Knowledge of Business Functions UMSL Breakfast and Business Discussion, Mark C. Pydynowski & Ramos M. Mays; President and Chief Science Officer, respectively, April 10, 2008. • Goldberg, Jay, “Teaching Entrepreneurship in Senior Design”, IEEE Engineering in Medicine and Biology, March/April 2005, pp. 17 -18. • 59
Narisara Chavaltanpipat 60
Characteristics Grew up in business-owner family Highly self-confident Vision is the most important thing which business owners should have Being able to understand IT-business Model 61
Michael Saul Dell 62
Characteristics Brought up in a strong family environment Fascinated to the point of obsession with computers Highly motivated and driven to succeed “I want to compete with IBM. ” Willing to take huge risks High level market insight, opportunity detection & vision 63
Characteristic Comparison Local, International & Global Entrepreneurs Using Bianchi Study 64
Characteristic Comparison Ed Heisler Narisara C. Michael Dell being an off spring of selfemployed parents NO YES NO being fired from more than one job NO NO NO being an immigrant or a child of immigrants NO YES NO previous employment in a firm with more than 100 people YES YES being the oldest child in the family NO NO NO being a college graduate YES NO Bianchi 65
Guess the Entrepreneur Sandy Lerner Cisco 66
The Challenges of IT Entrepreneurs Today 67
Start up Consulting Firm’s traits/skill set of successful entrepreneurs Product/expertise Strong motivation/desire to achieve Marketing/sales skill Integrity/follow through Communication skills Interpersonal skills Professionalism Healthy relationship with money Planning Skills Problem solving skills • http: //www. gaebler. com/entrepreneur-characteristics. htm viewed April 10. • http: //www. 4 d. com/startconsulting/gettingstarted/typicaltraits. html viewed April 10. 68
Today’s Challenges Lack of capital or capital that is more difficult to secure Lack of highly skilled employees Outsourcing as threat or opportunity Lack of skilled customers in the right market Value still drives success of new products U. N. Umesh, Len Jessup and Minh Q Huynb, “Technology Entrepreneurs”, Communication of the ACM; October 2007, P. 60 – 70. 69
Summary – So What? ? Research mostly says the same thing Entrepreneurs share subjective characteristics No blue-print of a successful entrepreneur Are entrepreneurs born or made? Probability of success & certain characteristics Identify opportunities Exploit market inefficiencies 70
Questions… 71
References 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Bianchi, A. 1993. Who’s most likely to go it alone? Inc. 15(5): 58. Byers, Tom. , Helee Kistc and Robert Sutton, Characteristics of the Entrepreneur: Social Creatures, Not Solo Heroes, FL, October, 1997 Carton, Robert. “The Entrepreneur and Entrepreneur ship: operational definitions of their role in society” 1998 Davidson, Andrew. “ Smart Luck”, Management Today, Sept. 2001 pg 66 -71 Emma, Philip, “Reinventing Entrepreneurial Inventing for the 21 st Century”, IEEE Computer Society, January-February 2007, pp. 133 -135. “Entrepreneurs in the U. S. economy”, Monthly Labor Review, December 2007, P. 38. Geer, Daniel E, Jr. , “Convergence”, IEEE Security and Privacy Published by IEEE Computer Society, 2006, p. 88 Goldberg, Jay, “Teaching Entrepreneurship in Senior Design”, IEEE Engineering in Medicine and Biology, March/April 2005, pp. 17 -18. http: //www. dopa. go. th/stat/y_stat 50. html Headd, Brian. “Redefining Business Success: Distinguishing between Closure and Failure”, Small Business Economics, vol 21, no 1, Aug 2003, pp 51 -61. http: //www. 4 d. com/startconsulting/gettingstarted/typicaltraits. html viewed April 10. http: //www. aw-wrdsmth. com/FAQ/characteristics_successful_entre. html viewed March 27. http: //www. bloomberg. com/apps/news? pid=conewsstory&refer=conews&tkr=DELL: US&sid=a. Scf 7 TCv. Pxn. E# , viewed April 23, 2008. http: //www. crito. uci. edu/git/publications/pdf/dell. pdf, viewed March 31, 2008. http: //www. dell. com/downloads/global/corporate/inv_history/market_share_q 2. pdf , viewed March 23, 2008. http: //www. dell. com/downloads/global/corporate/sec/Q 410 KFY 08 pdf. pdf, viewed April 4, 2008. http: //www. doae. go. th/stats 9. htm viewed April 12. http: //www. dopa. go. th/stat/y_stat 50. html viewed April 12. 72
References 18. http: //www. emeraldinsight. com/Insight/html/Output/Published/Emerald. Full. Text. Article/Pdf/0560210903. pdf, viewed 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. April 2, 2008. http: //www. gaebler. com/entrepreneur-characteristics. htm viewed April 10. http: //www. neu. edu/sote/Documents/NEU%20 STE%20 Born%20 v%20%20 Bred%20 Survey%20 Results. pdf? u=61898 2550144 viewed April 4. http: //www. phuket. net/visit-phuket/about/economy. htm viewed April 12. http: //www. sba. gov/advo/research/ view April 8. http: //www. smallbusinessnotes. com/choosing/whatis. html viewed March 23. Interview with Ed Heisler, Principal, Facility Control Systems, Inc. , April 3, 2008. Interview with Narisara Chavaltanpipat by phone, Phuketinternet Co. , Ltd. April 8, 2008 Knaup, Amy. “Survival and Longevity in the Business Employment Dynamics Database”, Monthly Labor Review, vol 128, no 5, May 2005, pp. 50 -6 Koehn, Nancy F. , Brand New: How Entrepreneurs Earned Consumers’ Trust from Wedgwood to Dell, p. 259 -305. Harvard Business School Press, Boston, 2001. “New Survey Shows Two-Thirds of Entrepreneurs Born not Bred; …”, PR Newswire. New York: October 20, 2006. Strategic Direction. , "There’s something about Dell: How to look good and stay healthy in middle-age". Strategic Direction, Vol. 21 No. 9 2005, pp. 8 -11, Emerald Group Publishing Limited, ISSN 0258 -0543. Taylor, Leslie. “Are Entrepreneurs Born or Made? ”, Education and Self-Improvement Article – Inc. October 24, 2006. Umesh, U. N. , Len Jessup and Minh Q Huynb, “Technology Entrepreneurs”, Communication of the ACM; October 2007, P. 60 – 70. UMSL Breakfast and Business Discussion, Mark C. Pydynowski & Ramos M. Mays; President and Chief Science Officer, respectively, April 10, 2008. 73
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