Zach Zacharakis & Julian LangeArthur M. Blank Center of Entrepreneurship

Babson College

Entrepreneurship andEntrepreneurship and

New Venture DevelopmentNew Venture Development

ITESM ITESM

Gerber Products CompanyDaniel Gerber ’20

Founder

Tradition of Entrepreneurial LeadershipTradition of Entrepreneurial Leadership

The Hamilton CompaniesFrederic Hamilton ’48; Ferris Hamilton ’50

Co- Founders

Tradition of Entrepreneurial LeadershipTradition of Entrepreneurial Leadership

Home DepotArthur Blank ’63

Co-Founder

Tradition of Entrepreneurial LeadershipTradition of Entrepreneurial Leadership

PepsiCoRoger Enrico ’65

President CEO

Tradition of Entrepreneurial LeadershipTradition of Entrepreneurial Leadership

CabletronCraig Benson ’77

Founder

Tradition of Entrepreneurial LeadershipTradition of Entrepreneurial Leadership

Lycos Robert Davis M’85

President, CEO

Tradition of Entrepreneurial LeadershipTradition of Entrepreneurial Leadership

Tradition of Entrepreneurial Tradition of Entrepreneurial

LeadershipLeadership

SeronoErnesto Bertarelli, ‘89

CEO

• $1.5B Revenue 2002• $12.4% Growth• $321M Net Income 2002• Bertarelli:

• $4.7B net worth (#64 on Forbes World’s Richest People list)

• Winner America’s Cup

Jiffy LubeStephen Spinelli M’91

co-founder

Tradition of Entrepreneurial LeadershipTradition of Entrepreneurial Leadership

Tradition of Entrepreneurial LeadershipTradition of Entrepreneurial LeadershipThe upThe up--andand--comerscomers

Ajay Bam (01), FounderMobilLime

J.B. Schneider & Antonio Turco (05)Founders, P’kolino

Jim Poss (01) Founder Seahorse PowerBenjapon

Jivasantikarn (05)

Founder, Benjapon’s

Gloria Ro Kolb (01)Founder, Fossa

Kirt Poss (01)Founder, VisEn

Top 5 Entrepreneurship Program2000-2004

Annual College Rankings, The Best Colleges - 2000, 2001, 2002.

In 2000: Professors ranked #1

Babson ranked #2 in interaction of diverse population.

School of Executive Education

Top five programs worldwide for entrepreneurship (2001)

Only part-time Evening MBA New England school in the

top 15 (2002)

#1 Entrepreneurial Dean's List (2001)

MBA Rankings: #1 among "Hidden Gems" – "schools whose graduates sparkle." (2001,

2002 and 2003)

Top 10 Best Internships/Co-op (2002)

#1 in Student Entrepreneurial Skills. Babson received "the highest number of perfect scores" from recruiters for its students'

entrepreneurial skills (2001 - only year published)

#2 among Top Teaching Schools for Entrepreneurship (2003)

# 1 MBA Program for Entrepreneurship 1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Babson College

Arthur M. Blank Center for EntrepreneurshipOpened September 1998

Babson College

Arthur M. Blank Center for EntrepreneurshipOpened September 1998

Babson College

Hamilton Exhibition HallArthur M. Blank Center for Entrepreneurship

Babson College

RotundaArthur M. Blank Center for Entrepreneurship

Babson College

Hamilton Exhibition HallArthur M. Blank Center for Entrepreneurship

Babson College

Hamilton Exhibition HallArthur M. Blank Center for Entrepreneurship

Babson College

Hamilton Exhibition HallArthur M. Blank Center for Entrepreneurship

Babson College

Hamilton Exhibition HallArthur M. Blank Center for Entrepreneurship

ZachZach’’s Star of Successs Star of Success

Success

QuestionsQuestions

�Name?

�PASSION?

Rules of EngagementRules of Engagement

�Active Participation

– Friendly environment

– Stretch yourself

– Carry the discussion

�Tie back to implications for you

�HAVE FUN

Course ObjectivesCourse Objectives

1. You will be superior opportunity assessors and shapers.

2. You will understand the integration of people and process in entrepreneurship.

3. You will be able to write, articulate and present a business plan that will be ready for venture capitalist review.

4. You will have a better understanding of your personal entrepreneurial capacity.

What is What is

Entrepreneurship?Entrepreneurship?French Word

Entrepreneurship Entrepreneurship DefinedDefined

� Traditional Academic:

“Identifying an opportunity regardless of the resources currently available.”

� Babson definitional (r)evolution:

“A way of thinking and acting that is opportunity obsessed, holistic in approach and leadershipbalanced.”

For the Purpose of Wealth Creation.

next

Thinking meansThinking means……

� “Due diligence”– Know your customer

• Listen to them, Talk to them, Work with them, Serve them

– Know your competitors• Strengths and Weaknesses

• Market

– Know yourself

back

Acting meansActing means……

• Taking a risk…do something even though you don’t have all the facts and balancing that against the expected returns

• Being nimble in reaction to market needs and changes

• Having an “options” mentality

back

Opportunity Opportunity

ObsessedObsessed……• Your plan is old as soon as it comes out of the printer

• Shaping is a way of life not a single exercise

• Balancing discipline and flexibility

back

Holistic meansHolistic means……

• Shaping the opportunity changes• Team

• Resources

• A change in resources affects• Opportunity

• Team

• The mix of TEAM members influences• Opportunity

• Resources

back

Leadership meansLeadership means……

�Whatever goes wrong is my fault

�Whatever goes right is our success

�Being a good listener and follower

�Being a great servant

back

Customers

Custom

ersCustomers

Ecosystem PerspectiveEcosystem Perspective

ENTEcosystem

Knowledge

TechnicalSkills

Financial

Support

Venture Capital

Angels

Universities

Similar Companies

Professional ServicesSkilled Employee Pool

Zacharakis, Shepherd & Coombs, 2003

0% 5%

10%

15%

20%

25%

30%

Hungary

Japan

Belgium

Sweden

Slovinia

Netherlands

Denmark

Italy

Finland

South Africa

Austria

France

Germany

Spain

Mexico

Switzerland

Croatia

United Kingdom

Greece

Latvia

Singapore

Norway

Canada

Argentina

Ireland

Iceland

Australia

Chile

Brazil

United States

China

Jamaica

New Zealand

Thailand

Venezuela

Percentage of adultp population between 18-64 years

Total Entrepreneurship Activity (TEA) In

dex 2005

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

New Zealand

Iceland

Netherlands

Denmark

Slovenia

Belgium

Australia

Norway

Switzerland

United States

Singapore

Austria

Spain

Greece

Japan

Latvia

Sweden

Italy

Canada

Ireland

Finland

United Kingdom

Chile

Mexico

Germany

Thailand

Argentina

Venezuela

Jamaica

Hungary

South Africa

China

Brazil

France

Croatia

Opportunity motive

Necessity motives

Both

Opportunity to Necessity Early-Stage Entrepreneurship

Entrepreneurial SectorEntrepreneurial Sector

EntrepreneurshipEntrepreneurship

• 98% of all new jobs

• 50% of workforce

• 45% of GNP

• 67% of new inventions

KondratieffKondratieff

FailureFailure

n Year 1

� Year 2

n Year 6

Do something you love, keep at it. I

know it sounds corny, but don’t do it

to try to get rich. It’s not a game, it’s

a passion. And passion only comes

from doing what you like.

Tom Scott, aka “The Juice Guy”

Founder of Nantucket Nectors