ZOMIA VENTURE

SERVICES Entrepreneurship and Small Business

Management (BABA143WE11 or
BABA12BM1)
With Dr Diep Ho

1
 2

Biography – Dr. Diep Ho

 Dr. Ho is Lecturer at International University HCMC; a serial-entrepreneur; and a Director and Founder of
Zomia Group. Zomia Group is a investment boutique focusing on investing in startups in Vietnam. Dr. Ho is
also the Director and Co-founder of: EDUNet (edunetjsc.vn), Aura Corporate Services (aurajsc.vn),
CyanRoof Marketing (cyanroof.com), Larvae Technologies (larvaetech.com), ProArt Creative Agency (
proart.vn) and Cloud / Website Hosting ebizhub.tk (TBA: Android Apps Prototyping: apps.ebizhub.tk).
 Prior to that Dr. Ho was the Chief Financial Strategist for Dongtam Group; and have been consulted on
Japan-Vietnam cross-border joint-venture such as: Misawa Homes and Dongtam Group; and Asahieito
Corporation and Thien Thanh Sanitaryware JSC.
 Dr. Ho also has over 10 years of experience in European capital markets, including:
 Dual role of Chief Risk Officer and Chief Operational Officer at startup bank Azure AG;
 Senior Risk Management Developer at hedge fund Cheyne Capital Management LLP; and
 Portfolio Manager and Quantitative Asset Manager at investment management company Gordian Knot Ltd.
 Dr. Ho holds a Doctorate in Mathematics from London’s City University. He is a British National and
currently resides in HCMC, Vietnam.
 Email: hdiep@hcmiu.edu.vn ZOMIA VENTURE
SERVICES
 Tel: +84 946 317 379
 3

Course Details

 Course Tittle: Entrepreneurship and Small Business Management

(BABA143WE11 or BABA12BM1)
 Lecturer: Dr Diep Ho
 Email: hdiep@hcmiu.edu.vn
 Course website:
http://www.diepho.info/lectures/entrepreneurship-and-small-business-management-baba12bm1
 Assessment:
 Class participation and Assignment: 25%
 Midterm (writing test): 20%
 Term Project (NO FINAL): 55%
 Textbook:
 Howard H Fredric, Donald F. Kuratko and Richard M. Hodgetts: “Entrepreneurship: Theory – Process &
Practice”, Thomson, Edition 2009 or 2014
 Registering your email address:
http://www.diepho.info
/lectures/entrepreneurship-and-small-business-management-baba12bm1/register-your-email
 4

Course Details

 Course Tittle: New Products Development

 Lecturer: Dr Diep Ho
 Email: hdiep@hcmiu.edu.vn
 Course website:
 http://www.diepho.info/new-products-management
 Assessment:
 Individual: 40%
 Team:60%
 Textbook:
 Crawford, C. and Di Benedetto, A. (2008) New Product Management (Paperback) , McGraw Hill Higher
Education; 10th edition (January 1, 2008) , ISBN- 978-0-07-340480-6
 Registering your email address:
http://www.diepho.info/new-products-management/register-your-email-npm
 5

Edgar Dale’s Cone of Experience –

“Simulate” and “Do the real thing”
 6

Individual Project –
Part A: Technologies
(20%)
 7

Requirements

1. Submission deadline: ???

2. 10-minute presentation and discussion of a case(s) or article or a emerging technologies areas.
3. You can and shall conduct additional research to find additional resources to supplement the case materials provided. 
Send this materials to me right after your presentation. 
4. Prepare a set of PowerPoint slides covering background information of the case and related theories.
5. Identify major issues in the case/article/emerging technologies.
6. Try to highlight if possible the following aspects described in the case/article/emerging technolgies: Technology,
Organization (Business Processes), Management (Decisions), Business challenges/problems/opportunities,
Strategies, and Business/IT solutions.
7. Prepare a set of interesting and challenging questions as well as prepare appropriate information to generate the class
discussion.
8. Come up with three multiple choice questions based on the case and include that at the end of your slide deck.
9. The PowerPoint slides should be submitted by email to me on the date of your presentation.
 8

Case Study

Case Study:
1. Zara (________)
2. Netflix (________)
3. Amazon (________)
4. Lazada (________)
5. Facebook (________)
6. Google (________)
7. Grab (________)
8. Alibaba.com (________)
9. Thegioididong.com (________)
10. VinaGames (________)
11. etc.
 9

Emerging Technologies

Emerging Technologies:
1. Blockchain/Cryptocurrency (________)
2. FinTech (________)
3. Artificial Intelligence/Deep Learning (________)
4. Internet of Things (________)
5. Industrial 4.0 (________)
6. Big Data (________)
7. Virtual Reality and Augumented Reality (VR/AR) (________)
8. Digital Transformation (________)
9. Marketing/Retail 4.0 (________) (see link)
10. Agriculture 4.0 (________) (see link)
11. CRISPR/Cas9 (________)
12. etc.
 10

Individual Project –
Part B: CleanTech
(20%)
 11

Business Simulation Game Details

 In this single-player simulation, students play the role of the founder of
a new startup company in the clean tech sector. Each quarter, students
set prices, decide on new hires, set compensation (including salary,
stock, options, and profit sharing), and raise capital through sales or by
approaching venture capitalists.
 The dynamics of entrepreneurship are unique and can be difficult to
master without real-world experience — or at least experimentation. In
this simulation, students build a business, starting with a great idea and
a little startup capital. They must win customers, hire and motivate
people, improve the product, and finance their growth. Students can
choose external financing from venture capitalists or seek to build a
fully employee-owned firm.
 12

Written Report

 Submission deadline: ???

 The submission is to be typed and should not exceed two-pages,
summarizing your strategies and the experiences that your team
have learnt. That is to report:
 Team assignment strategies
 Team management strategies
 Summarizes your mistake(s) and how you over come them
 Lessons learnt from the simulation
 If you have to redo the assignment again what would you do
differently 
 13

Team Project -
eBizHub (60%)
 14

Group Project

 Submission deadline: ???

 Submit a detailed PowerPoint slides covering the deliverables listed in the following:
 Deliverables:
1. One-minute elevator pitch (in one slide)
2. Business Model Canvas
3. Describe what products/services to be offered and why your group choose these
products/services.
4. What is your value proposition
5. Describe what your target audiences are (market/customer segmentation).
6. Domain Name (go to freenom.com and find a meaningful free domain name and register
it)
 15

Group Project, cont.

8. Website Navigation Diagram

9. Data model for the site.
10. Function decomposition diagram and process models for major business functions.
11. Define the basic requirements/functionalities for the Web site design using Use Case
Diagram
 http://www.gatherspace.com/static/use_case_example.html
 http://www.agilemodeling.com/essays/initialRequirementsModeling.htm
12. Your navigation diagram and UI/UX design.
13. Competitors and business strategies deployed to compete
14. Web 2.0 features such as crowdsourcing if any
15. Social networking strategies if any
16. Your internet marking startegies (SEO etc.)
 16

Group Project, cont.

17. Innovative features that is worth mentioning

18. Scalability and extension
19. Web prototype. The more real the better.
 Use website prototyping tools such as: ebizhub.tk, wix.com, weebly.com, …
 Use Mobile Apps prototyping tools: appinventor.mit.edu, proto.io, infinitemonkeys.mobi, …
20. Describe your hosting plan for your Web site. (e.g., http://ebizhub.tk,
https://www.matbao.net, http://aws.amazon.com, etc)
21. Describe how you are going to measure the traffic and success of your Web site. (Web
traffic ranking tools, google analytics, http://www.alexa.com/, KPIs and performance
measure)
 17

Suggested Tools

 Website:
1. http://ebizhub.tk (free, recommended) 3. http://www.weebly.com
2. http://Wix.com 4. http://www.shopify.com
 Mobile Apps:
1. http://appinventor.mit.edu (free, recommended)
2. http://www.infinitemonkeys.mobi 5. http://www.InVisionApp.com
3. http://www.Appsbar.com 6. http://www.fluidui.com
4. http://www.Andromo.com 7. http://www.proto.io
 Social networking strategies:
1. http://facebook.com (recommended) 4. http://youtube.com (recommended)
2. http://linkedin.com (recommended) 5. http://wikipedia.com
3. http://twitter.com 6. Your own blog (ebizhub) (recommended)
 Corporate email hosting:
1. https://www.zoho.com (free, recommended) 3. http://outlook.com
2. https://gsuite.google.com 4. http://icloud.com
 18

Grading criteria

 Each group has about 30 minutes to present their project.

 Presentation slides and design documents (40%) - As detail as possible, but the group
should use only a subset of the slides in their presentation. Design documents include
database design's ER Model, user interface design documents, and process models.
 Presentation (30%): Other than some key issues presented in the slides, the group should
use different scenarios based on various user's roles to illutrate the functionalty and design
of the website via the prototype.
 Prototypes (30%): It does not need to be fully functional, but the more realistic the better.
Spend about half of your presentation on the demonstration of the prototype to highlight
the useful and innovative features of your website.
 19

Motivations
Some of the Reasons Why You Are Not (or 20

will be) a Millionaire

Millennials -
https://www.youtube.com/watch?v=QXWNChoIluo
Versus
Millionaire -
https://www.youtube.com/watch?v=xPKfiWvO8Ss
 21

The Startup Process

 22

Question
 23

Asia’s and Vietnam’s Widening

Middle Class
 More people live inside this circle than outside.
 It will be the biggest consumption zone and the home of the majority of the
world’s middle class.
 24

Asia’s Widening Middle Class, cont.

Source: East Asia Bureau of

Economic Research
Big Benefits from Free-Trade 25

Agreements (FTAs)

Eurasian
 In 2015, Vietnam has signed three
FTAs: TPP, Europe-Vietnam FTA and
Eurasian-Vietnam FTA; joined
ASEAN Economic Community; and
signed a bilateral Korean-Vietnam
FTA. ASEAN
 Made­in­Vietnam products will have a
cost advantage (due to FTA
preferential market access) over goods
from other non­FTA producers.
 Combine FTAs to covers 79.6% of the
world’s GDP(55 partners, including
all G8 Members, and 15 members of
G20).
 26

Ho Chi Minh City, Vietnam

 One of the world's best start-up hubs: Ho C

hi Minh City, Vietnam
 Population: 8 million (12 million unofficial)
 Pros: A unique start-up culture, great value, a good
climate and a solid entrepreneur community.
 Cons: The hiring process can come with many
pitfalls, which may put your managerial skills to the
test.
 Cost: A real city for bootstrappers, getting your
business up and running comes with limited
overheads.
 What to expect: A young, fast and vibrant country
with a fierce work ethic and a strong motorbike
culture.
 27

Bootstraping (low startup costs)

 A situation in which an entrepreneur starts a company with little
capital—attempts to start and build a company from personal
finances or from the operating revenues of the new company.
 Compared to using venture capital, boot strapping can be
beneficial as the entrepreneur is able to maintain control over all
decisions. On the downside, however, this form of financing
may place unnecessary financial risk on the entrepreneur; and
may not provide enough investment for the company to become
successful at a reasonable rate.
Opportunities: Population 28

Demographics

 Vietnam is now in a so-called period of “golden population structure” – the number of

working people exceeds the number of dependent people.
 According to the United Nations Vietnam’s “golden population structure” will last about 27
years (from 2008 to 2035).
 Vietnam now has 61 million people of the working age (15-64), or 66% of the population.

Baby-boomer

echo??

Baby-boomer
echo
Drag picture to placeholder or click icon to add

Lecture 1: Entrepreneurship in the

Twenty-First Century

29
 30

Introduction
 31

Lecture 1 Outline

I. The Entrepreneurial Revolution

II. Entrepreneurship: An Evolving Concept

III.Intra-preneurship: Developing Corporate

Entrepreneurship
 32

The Entrepreneurial
Revolution
 33

Motivation

 Long Version (Schumpeterian’s creative destruction):

 An entrepreneur is the person who destroys the existing economic
order by introducing new products and services, by introducing new
methods of production, by creating new forms of organization, or by
exploiting new raw materials.

 Short Version (nicer version):

 An entrepreneur is the person who perceives an opportunity and
creates an organization to pursue it.
Entrepreneurs versus 34

Small Business Owners: A

Distinction Example
 Small Businesses Owners
 Manage their businesses by expecting stable sales, profits, and
growth

 Entrepreneurs
 Focus their efforts on innovation, profitability and sustainable growth
 35

Entrepreneurship: A Mindset

 Entrepreneurship is more than the mere creation of business:

 Seeking opportunities
 Taking risks beyond security
 Having the tenacity to push an idea through to reality
 Entrepreneurship is an integrated concept that permeates an
individual’s business in an innovative manner.
 36

The Evolution of Entrepreneurship

 "The problem with the French is that they don't have a word for
entrepreneur.” – funny but untrue.

 Entrepreneur is derived from the French entreprendre, meaning

“to undertake.”
 The entrepreneur is one who undertakes to organize, manage, and
assume the risks of a business.
 Although no single definition of entrepreneur exists and no one
profile can represent today’s entrepreneur, research is providing an
increasingly sharper focus on the subject.
 37

A Summary Description
of Entrepreneurship
 Entrepreneurship (Robert C. Ronstadt, 1984)
 The dynamic process of creating incremental wealth.
 This wealth is created by individuals who assume major risks in
terms of equity, time, and/or career commitment of providing value
for a product or service.
 The product or service itself may or may not be new or unique but
the entrepreneur must somehow infuse value by securing and
allocating the necessary skills and resources.
 38

An Integrated Definition

 Entrepreneurship
 A dynamic process of vision, change, and creation.
 Requires an application of energy and passion towards the creation
and implementation of new ideas and creative solutions.
 Essential ingredients include:
 The willingness to take calculated risks—in terms of time, equity,
or career.
 The ability to formulate an effective venture team; the creative
skill to marshal needed resources.
 The fundamental skills of building a solid business plan.
 The vision to recognize opportunity where others see chaos,
contradiction, and confusion.
 39

Example: Google

 Page and Brin began Google in January 1996 as a PhD research project at
Stanford University in California.
 Google analyzed the relationships between websites.
 They called this new technology Page Rank, later rename Google
 The first funding (August 1998) US$100,000 from Andy Bechtolsheim, co-
founder of Sun Microsystems
 Early in 1999, while still graduate students, Brin and Page sold it to Excite (a
venture capital) for $750,000.
 On June 7, 1999, a $25 million round of funding from venture capital firms
Kleiner Perkins Caufield & Byers and Sequoia Capital.
 Google's IPO August 19, 2004. The company offered 19,605,052 shares at a
price of $85 per share gave Google a market capitalization of more than
$23 billion (currently: $363 billion).
 40

Survivorship Bias

 The Misconception: You should focus on the successful if you wish

to become successful.
 The Truth: When failure becomes invisible, the difference between
failure and success may also become invisible.
 The military looked at the bombers that had returned from enemy
territory. They recorded where those planes had taken the most
damage. Over and over again, they saw that the bullet holes tended
to accumulate along the wings, around the tail gunner, and down the
center of the body. Wings. Body. Tail gunner. Considering this
information, where would you put the extra armor?

Where to add
extra armor?
 41

Survivorship Bias

 It is easy to do, survivorship bias is likely

bungling many of your own day-to-day
assumptions.
 Simply put, survivorship bias is your
tendency to focus on survivors instead of
whatever you would call a non-survivor
depending on the situation. Sometimes that
means you tend to focus on the living
instead of the dead, or on winners instead
of losers, or on successes instead of
failures.
 Not only do you fail to recognize that
what is missing might have held important
information, you fail to recognize that
there is missing information at all.
Introduction: Zomia Venture Builder 42

Ecosystem at the International

University HCMC
Aura
 We’re building ecosystem to support each stage Aura
Corporate
Corporate
Services
Services JSC
of an entrepreneur’s journey: EDUNet JSC
JSC
3D
3D Generation
Generation
JSC
JSC
1. VITEHUB Capital– Venture Capital (VC)
2. EDUNet JSC – IT Outsourcing (ITO)
3. Aura JSC – Corporate Services VITEHUB
VITEHUB Cyanroof
Capital Marketing
4. 3D Generation JSC – Fast Prototyping Capital

ZOMIA
ZOMIA VENTURE
5. Cyanroof Marketing – Digital Marketing VENTURE
BUILDER
BUILDER
6. ?? Human Resource ??
7. ?? Logistics ??
…
15. ??
 43

Mr. Tran Van Vuong– EDUNet JSC

– www.edunetjsc.vn
 Profile:
 Director and Co-founder of EDUNet JSC
 29 years old
 Startup capital USD 15,000
 EDUNet JSC
 IT outsourcing for SMEs and startups—provide services: web UX/UI
design/development, software/apps development, e-marketing/e-sales,
SEO/SEM—developers in python/django, ruby/rails, javascript/node.js, etc
 www.diemcao.vn – Tutors matching website
 Education:
 MBA in Finance, IU-VNU
 BEng in Software Engineering, IU-VNU
Miss Nguyen Ha Phuong and Miss 44

Tang Kim Phung – Aura JSC –

www.aurajsc.vn
 Profile:
 2 X co-founders of Aura Corporate Services JSC
 30 and 21 years old respectively
 Startup capital USD 15,000
 Aura JSC
 Corporate services support for SME and startups—provide services:
accounting, payroll, tax, legal, import/export, company registration, advisory,
translation, etc…
 Education:
 Bachelors of Finance – IU VNU
Miss. Võ Hoàng Loan Anh and Mr 45

Vu Long – thehe3D and Petalobe –

www.thehe3D.vn
 Profile:
 Director and Co-founder of 3D Generation JSC
 21 years old
 Startup capital USD 5,000
 3D Generation JSC
 high-tech startup focusing on digital manufacturing—such as 3D printing,
CNC, laser cutting and electronics—for fast prototyping and fabrication
 Education:
 BA in Management, IU-VNU
 BA Electronic Engineering, Bach Khoa
 46

vite.edunetjsc.vn
 Joint venture between:
 EDUNet JSC Venture Builder – edtech, IoT, ITO
 AURA JSC Venture Builder – fintech, adtech, BPO
 Alpha Vision Venture Builder – adtech, HR marketplace
 Leapers Venture Builder – adtech, IoT
 Puffin Builders Venture Builder – HR marketplace
 ?? – socialtech, biotech, insuratech,…
 A diversified venture capital fund that focuses on investing
in international-active SMEs
 47

Entrepreneurship and National

Culture
 3 principles:
I. A certain portion of the adult population can be classified a
entrepreneurs
II. We can measure that proportion
III. A country, a culture or even an ethnic group can be rated as higher
or lower in entrepreneurial activity than another
 Many researches show the impact of national culture and
ethnicity on entrepreneurship and economic development
 What about Vietnam??
Stages of Development of an 48

Economy (Source: The Global

Competitiveness Report 2014)
 Factor-driven stage - e.g., Vietnam – These comprise countries compete based on their factor
endowments—primarily unskilled labor and natural resources. Companies compete on the basis
of price and sell basic products or commodities, with their low productivity reflected in low Vietnam
wages. Maintaining competitiveness at this stage of development hinges primarily on well- Factor-driven
functioning public and private institutions, a well developed infrastructure, a stable macroeconomic
environment, and a healthy workforce that has received at least a basic education.
 Efficiency-driven stage – e.g., Thailand – As a country becomes more competitive, productivity
will increase and wages will rise with advancing development. Countries will then move into the
efficiency-driven stage of development, when they must begin to develop more efficient
production processes and increase product quality because wages have risen and they cannot Efficiency-
increase prices. At this point, competitiveness is increasingly driven by higher education and
training, efficient goods markets, well-functioning labor markets, developed financial markets, the driven
ability to harness the benefits of existing technologies, and a large domestic or foreign market.
 Innovation-driven stage – e.g., Singapore – Finally, as countries move into the innovation-driven
stage, wages will have risen by so much that they are able to sustain those higher wages and the
associated standard of living only if their businesses are able to compete with new and unique
products. At this stage, companies must compete by producing new and different goods using the
most sophisticated Innovation-
driven
Key Findings from the Global 49

Entrepreneur Monitor (GEM) Viet

Nam 2014
 http://www.gemconsortium.org/country-profile/119
 The perception about the existence of opportunities in Viet Nam is low. Only
39.4% of surveyed adults in Vietnam realize the opportunities to start their own
businesses and 58.2% of them are aware of their business capabilities. In factor-
driven countries (i.e., India & Philippines), this average respectively are 54.6%
and 64.7.
 18.2% of respondents in Viet Nam intend to start a business in the next 3 years,
lower than the average ratio of 40.2% in other factor-driven economies.
 In Viet Nam, entrepreneurs are highly appreciated by society 75.9% and is a
desirable career choice of 67.2% surveyed adults.
 The percentage of adults who owned and managed of an established business in
Viet Nam is 22.2%, higher than the average level in factor-driven economies.
Key Findings from the Global 50

Entrepreneur Monitor (GEM) Viet

Nam 2014 cont.

 Like other countries, Vietnamese adults started the business primarily to take
advantage of opportunities 70.3% rather than there is no better choice for work
29.7%.
 Vietnamese take the opportunities mainly to increase their income (41.5%)
rather than being more independent (11.8%).
 The number of males engaging in business is always higher than females in all
stages of the business cycle. The percentage of people engaged in business
activities in the early stages in Viet Nam is highest in the age group of 25-34.
The higher the education level, the more likely to start a new business activity.
Key Findings from the Global 51

Entrepreneur Monitor (GEM) Viet

Nam 2014 cont.
 The primary entrepreneurial activity in Viet Nam is to serve
consumers 89%. The business owners mainly receive tips and
advices from friends and families. The business cooperation
generally focuses on sales and marketing stages.
 The rate of adults who abandoned their business activities in 2014 is
3.6%, including 1.6% of adults discontinued and 2% of adults sold
their business which still continues to operate.
 Three main reasons raised by Vietnamese for abandoning their
business activities are personal reasons, financial problems and
unprofitable business.
 Entrepreneurial activities in Viet Nam have low innovation-driven
and low international orientation.
Key Findings from the Global 52

Entrepreneur Monitor (GEM) Viet

Nam 2014 cont.
 Among the total of 12 business condition indicators in Vietnam,
three indicators have the highest levels:
 Physical Infrastructure
 the dynamics of the domestic market,
 cultural and social norms,
 On the other hand, the lowest rank indicators encompass:
 post-secondary education,
 R&D Transfer,
 Government entrepreneurship programs, and
 Finance.
Key Findings from the Global 53

Entrepreneur Monitor (GEM) Viet

Nam 2014 cont.
weakness strength
 54

Perceived opportunities and

capabilities in Viet Nam in 2014

Source: The global Adult Population Survey (APS) 2014

 55

Entrepreneurship development in
Vietnam in 2014 and 2013
 2013:

Reduction in the startup pipeline

 2014:

Source: The global Adult Population Survey (APS)

 56

Network to support business in

Vietnam

strength

weakness

Source: The global Adult Population Survey (APS) 2013

Culture Eats Business Process for 57

Lunch: Entrepreneurship and

National Culture cont.
 Lam and Patiel (1994) argue that Confucianism is correlated with
economic development and entrepreneurship in Taiwan and Japan
 Hofstede (1984) argues that culture dimensions such as power
distance, uncertainty avoidance, individualism/ collectivism and
masculinity/ femininity affect national wealth and economic
growth
 Moris and Davis (1994) showed that entrepreneurship declines the
more collectivism is emphasized.
 Lee and Peterson (drawing as well upon Lumpkin and Dees,
1996) propose that a society’s propensity to generate autonomous,
risk taking, innovative, competitively aggressive and proactive
entrepreneurs and firms depends on its cultural characteristics
HIDDEN CULTURE
58
 59

6 cultural dimensions (Hofstede)

1. Power distance
2. Individualism / Collectivism
3. Masculinity / femininity
4. Uncertainty avoidance
5. Long-term / short-term
6. Indulgence / restraint

 In general, Ideal type entrepreneurs would (Le & Peterson):

generally accept uncertainty and risk,
not tolerate unequal relationships,
stress materialism and wealth,
emphasize individual accomplishment,
believe that power and status are earned through competition and hard
work, and
believe that code of laws exist equally for all.

https://geert-hofstede.com/ vietnam.html
 60

Vietnam’s Culture values

Source: Mai Nguyen Quynh, 2014

 61

Why So Few Female Entrepreneurs?

Male and Female Students’ Aspirations to Be Business Owners
As early as high school,
women are less interested
than men in having their
own businesses.

The solution to the gender

gap lies in getting girls to
be more interested in
owning businesses when
they grow up.

Source: John Pryor and E.J. Reedy, Kauffman Foundation, 2009. “Trends in Business Interest Among U.S. College Students.”
 62

Entrepreneurship: an
evolving concept
 63

The Myths of Entrepreneurship

 Myth 1: Entrepreneurs Are Doers, Not Thinkers

 Myth 2: Entrepreneurs Are Born, Not Made
 Myth 3: Entrepreneurs Are Always Inventors
 Myth 4: Entrepreneurs Are Academic and Social Misfits
 Myth 5: Entrepreneurs Must Fit the “Profile”
 Myth 6: All Entrepreneurs Need Is Money
 Myth 7: All Entrepreneurs Need Is Luck
 Myth 8: Ignorance Is Bliss For Entrepreneurs
 Myth 9: Entrepreneurs Seek Success But Experience
High Failure Rates
 Myth 10: Entrepreneurs Are Extreme Risk Takers (Gamblers)
 64

Entrepreneurial Schools-of-Thought
Approach
 65

Macro View: External Locus of

Control
 The Environmental School of Thought
 Considers the external factors that affect a potential entrepreneur’s
lifestyle.
 The Financial/Capital School of Thought
 Based on the capital-seeking process—the search for seed and growth
capital.
 The Displacement School of Thought
 Alienation drives entrepreneurial pursuits
 Political displacement (laws, policies, and regulations)
 Cultural displacement (preclusion of social groups)
 Economic displacement (economic variations)y
 66

Financial Analysis Emphasis

Venture Stage Financial Consideration Decision

Start-up or acquisition Seed capital Proceed or abandon
Venture capital sources
Ongoing Cash management Maintain, increase, or
Investments reduce size
Financial analysis and evaluation

Decline or succession Profit question Sell, retire, or dissolve

Corporate buyout operations
Succession question
 67

Micro View: Internal Locus of

Control (cont’d)
 The Entrepreneurial Trait School of Thought
 Focuses on identifying traits common to successful entrepreneurs.
 Achievement, creativity, determination, and technical knowledge
 The Venture Opportunity School of Thought
 Focuses on the opportunity aspect of venture development—the
search for idea sources, the development of concepts, and the
implementation of venture opportunities.
 Corridor principle: New pathways or opportunities will arise that
lead entrepreneurs in different directions.

Definitions And Criteria Of One
Approach To The Micro View
Entrepreneurial
Model Definition
“Great Person” “Extraordinary Achievers”
Psychological Characteristics Founder
Control over the means
of production
Classical People who make innovations
bearing risk and uncertainty
“Creative destruction”
Management Creating value through
the recognition of business
opportunity, the management
of risk taking . . . through the
communicative and management
skills to mobilize . . .
Leadership “Social architect”
Promotion and protection
of values
Intrapreneurship Those who pull together
to promote innovation
Source: Adapted from J. Barton Cunningham and Joe Lischeron, “Defining Entrepreneurship,” Journal of Small Business Management (January
1991): 56.
Measures
Personal principles
Personal histories
Experiences
Locus of control
Tolerance of ambiguity
Need for achievement
Decision making
Ability to see opportunities
Creativity
Expertise
Technical knowledge
Technical plans
Attitudes, styles
Management of people
Decision making
68
Questions
What principles do you have?
What are your achievements?
What are your values?
What are the opportunities?
What is your vision?
How do you respond?
What are your plans?
What are your capabilities?
What are your credentials?
How do you manage people?
How do you change and adapt?
 69

Micro View… (cont’d)

 The Strategic Formulation School of Thought

 Emphasizes the planning process in successful venture development.
 Ronstadt’s View (1984)
 Strategic formulation is a leveraging of unique elements:
 Unique Markets—mountain gap strategies—identify major market
segments
 Unique People—great chef strategies—skills or special talents of one or
more individual around whom the venue is built
 Unique Products—better widget strategies—innovation that encompass
new or existing markets
 Unique Resources—water well strategies—ability to gather or harness
special resources over long-term
 70

Environmental Factors in Vietnam

Source: Mai Nguyen, 2014

 71

Motives in Vietnam

Source: Mai Nguyen, 2014

 72

Differences of Motives

Recognize the opportunity

Challenging
Desire for knowledge
Family financial security

Entrepreneurs are higher

Students,
Lecturers &
Employees are
low
Source: Mai Nguyen, 2014
 73

Process Approach

I. Integrative approach
II. Entrepreneurial assessment approach
III. Multi-dimensional approach
 74

Integrative Approach

 Built around the concepts of inputs to the entrepreneurial

process and outcomes from the entrepreneurial process.
 Focuses on the entrepreneurial process itself and identifies five
key elements that contribute to the process.
 Provides a comprehensive picture regarding the nature of
entrepreneurship that can be applied at different levels.
 75

Integrative Approach model of

entrepreneurial

Source: Michael H. Morris, P. Lewis, and Donald L. Sexton, “Reconceptualizing Entrepreneurship: An Input-Output
Perspective,” SAM Advanced Management Journal 59, no.1 (Winter 1994): 21–31.
 76

Entrepreneurial Assessment
Approach
 Stresses making assessments qualitatively, quantitatively,
strategically, and ethically in regard to the entrepreneur, the
venture, and the environment
 77

Entrepreneurial Assessment
approach

Source: Robert C. Ronstadt, Entrepreneurship (Dover, MA: Lord Publishing Co., 1984), 39.
 78

Multidimensional Approach

 Views entrepreneurship as a complex, multidimensional

framework that emphasizes the individual, the environment, the
organization, and the venture process.
Multidimensional approach 79
Individual(s)
Environment Need for achievement Organization
Venture capital availability Locus of control Overall cost leadership
Presence of experienced entrepreneurs Risk-taking propensity Differentiation
Technically skilled labor force Job satisfaction Focus
Accessibility of suppliers Previous work experience The new product or service
Accessibility of customers or new market Entrepreneurial parents Parallel competition
Governmental influences Franchise entry
Age
Proximity of universities Geographical transfer
Availability of land or facilities
Education
Supply shortage
Accessibility of transportation Tapping unutilized resources
Attitude of the area population
Customer contract
Availability of supporting services
Living conditions
Becoming a second source
High occupational and industrial Joint ventures
differentiation Licensing
High percentage of recent immigrants in the Market relinquishment
population Sell-off of division
Large industrial base Favored purchasing by
Process
Large urban area government
Availability of financial resources
Locating a business opp.
Government rule changes
Barriers to entry Accumulating resources
Rivalry among existing competitors Marketing products & services
Pressure from substitute products Producing the product
Bargaining power of buyers Building an organization
Bargaining power of suppliers Responding to government and
society
 80

Intrapreneurship:
Developing corporate
entrepreneurship
 81

Introduction

 Intrapreneurship = Corporate entrepreneurship = process that

can facilitate firms’ efforts to innovate constantly and cope
effectively with the competitive realities
 Global economy  change for institutions, businesses, and
industries
 Firms and enterprises  re-examine purposes and strategies to
satisfy their multiple stakeholders and to response to rapid,
discontinuous and significant changes  re-structured
operations
 1/4 of new start-ups come about through corporate
entrepreneurship
 82

Are you starting a Business for your

employer? (2005)
COUNTRY PERCENTAGE OF ADULT POPULATION
China 10.59
United States 8.13
Thailand 7.76
New Zealand 5.95
Singapore 3.17
Australia 3.10
Hong Kong (2004) 1.53
Japan 0.06
 83

The nature of intrapreneurship

 Intrapreneurship = entrepreneurial behavior of people within large firm and

organization = corporate entrepreneurship or corporate revolution
 Corporate entrepreneurship: formal or informal activities  creating new
businesses in established companies through product or process innovations and
market developments
 4 kinds of corporate entrepreneurship
 Sustained regeneration: create stream of new products and innovations in
existing products
 Organization rejuvenation: focus on firm’s internal processes and
procedures to increase the value from production chain
 Strategic renewal: seeking to change how it competes to align better with
external environment
 Domain redefinition: staking out new markets
 84

Obstacles to corporate
entrepreneurship
Obstacles to corporate venturing Adverse effects
Sources and solutions to obstacles in corporate
Recommended actions

venturing
Enforce standard procedures to Innovation solution blocked, Make ground rules specific to
avoid mistakes funds misspent each situation

Manage resources for efficiency
and ROI
Control against plan
Plan for the long term
Competitive lead lost, low
market penetration
Facts ignored that should replace
assumptions
Non-viable goals locked in, high
failure costs
Focus effort on critical issues (e.g.
market share)
Change plan to reflect new
learning
Envision a goal, then set interim
milestones, reassess after each

Manage functionally Entrepreneur failure and/or Support entrepreneur with

venture failure managerial and multidiscipline
skills
 85

Obstacles to corporate
entrepreneurship
Obstacles to corporate venturing Adverse effects
Sources and solutions to obstacles in corporate
Recommended actions

venturing
Avoid moves that(con’t)
risk the base Missed opportunities Take small steps, build out from
business strengths
Protect the base business at all Venturing dumped when base Make venturing mainstream, take
costs business in threatened affordable risks

Judge new steps from prior Wrong decisions about Use learning strategies, test
experience competition and markets assumptions
Compensate uniformly Low motivation and inefficient Balance risk and reward, employ
operations special compensation

Promote compatible individuals Loss of innovators Accommodate ‘boat rockers’ and

‘doers’
 86

Obstacles to corporate
entrepreneurship
Factors for successful innovators
 Atmosphere and vision: clear-cut vision of and recognized support
for an innovative environment
 Orientation to the market: vision to the realities of the marketplace
 Small, flat organizations
 Multiple approaches: encourage projects to proceed in parallel
development
 Interactive learning
 87

Intrapreneurial myths dispelled

 Myth1: The primary motivation of intrapreneurs is desire for

wealth and to climb the corporate ladder
 Myth 2: intrapreneurs is high risk-takers
 Myth 3: intrapreneurs lack analytical skills  luck is all you
need
 Myth 4: intrapreneurs lack morals or ethics due to their strong
desire to succeed
 Myth 5: intrapreneurs have a power-hungry attitude, they want
the venture to grow as big as fast as it can.
 88

Specific elements of a corporate

intrapreneurial strategy
 Developing the vision
 Encouraging innovation
 Radical innovation
 Incremental innovation
 Structuring an intrapreneurial climate
 Developing venture teams

Successful and unsuccessful models of
corporate venturing
ECOSYSTEM VENTURING
Focus Take minority stakes in suppliers,
customers, and/or complementors
to improve prospects of existing
businesses
Generate value through
commercial links with firms
invested in
Main pitfall The loss of focus pitfall –
investing to widely and seeking
too much autonomy
Examples Intel investing in its community –
good example is creation of the
Wifi standard
Performance Significant cash bonus scheme
measures and based on impact on existing
incentives businesses and portfolio
performance; no carried interest
INNOVATION VENTURING
Use venturing techniques as a more
effective means of performing (part
of) an existing functional activity
Often, but not exclusively, this
applies to R&D
The culture change pitfall – aiming
for a board impact on culture change
rather than focusing on improving
part of a function
Xerox New Enterprises identified
ideas from within the firm and
provided financing
Performance benchmarked against
rest of function; financial interest
given to entrepreneurs, not nurturers
HARVEST VENTURING
Generate cash from
harvesting spare resources
The new legs pitfall – seeking
to develop new growth
platforms in addition to
harvesting
Lucent New ventures Group
(LNVG) commercialized IP
coming out of Bell Labs
Cash performance against
allocated assets; large bonus
paid against performance
targets, no carried interest
89
PRIVATE EQUITY
VENTURING
Take advantage of unique
deal flow and relevant, non-
tradable assets to participate
directly in the venture capital
The anyone can do this pitfall
– believing that it is easy
because others are having
success
GE equity, an spin-off of
General Electric
Nokia Venture partners
Bonus and share carry
incentives in line with
venture capital industry
norms
 90

The intrapreneur’s 10 commandments

1. Build your team, intrapreneuring is not a solo activity

2. Share credit widely
3. Ask for advise before you ask for resource
4. Under-promise and over-deliver – publicity triggers the corporate immune
system
5. Do any job needed to make dream work, regardless of your job description
6. Remember it is easier to ask for forgiveness than permission
7. Keep the best interests of the company and its customers in mind, especially
when you have to bend the rules or circumvent the bureaucracy
8. Come to work each day willing to be fired
9. Be true to your goals but be realistic about how to achieve them
10. Honor and educate your sponsors
 91

EXTRAS
 92

Dunning Kruger effect