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ENTREPRENEURSHIP IN THE PRIVATE AND SOCIAL SECTORS

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Joint HKS – HBS Course

Entrepreneurship in the Private and Social Sectors

EPSS 1622 (HBS)

MLD-830B (HKS)

Time: Mondays 4:15pm- 5:30pm, Innovation Lab Classroom (122 Batten Hall HBS)

Tuesdays: 4:15-5:30, Littauer 280 (HKS)

HKS Shopping Day: January 20, 2012, 4:10-5:25, Littauer 280

HBS Shopping Day: January 23, 2012, 4:15-5:35, Innovation Lab Classroom

Robert F. Higgins

[email protected]

617-401-4512

Richard E. Cavanagh

[email protected]

Phone: 617-495-0544

Course Assistant:

Michael Belinsky

[email protected]

Phone: 678-296-7474

Faculty Assistants

HBS HKS

Matthew O’Connell Rosita Scarfo

Rock Hall 111 Belfer 127B

[email protected] [email protected]

617-495-6477 617-496-1739

January 19, 2011

mailto:%[email protected]

mailto:[email protected]





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Course Description and Requirements

MLD-830 B/EPSS 1622 is a joint HBS/HKS course that explores the theory and practice of

entrepreneurial management in the private and social sectors. The course seeks to prepare students

for future work with and leadership in entrepreneurial ventures and to provide an informed perspective to those who may someday promote or regulate such ventures.

At the heart of the course are twenty discussion sessions -- each informed by cases and readings.

Each student will also prepare and submit an individual 10-15 page term paper on a past, present or

prospective entrepreneurial venture - - applying the course insights to either a case study or a

proposal/business plan for a new venture. Grades will be based on the quality of class participation, and on the individual term paper.

Recommended Texts:

Four books will figure prominently in the course, two of which will be included in the course packet

that will be distributed by HBS.

Peter F. Drucker, Innovation and Entrepreneurship (Harper & Row Publishers, 1985)

David Bornstein, How to Change the World: Social Entrepreneurs and the Power of New Ideas

(Oxford University Press, 2004)

In addition, the instructors will provide two other volumes:

Donald Clifford and Richard E. Cavanagh The Winning Performance: How America’s Midsize

Companies Succeed (New York: Bantam Books, 4th edition, 1985)

To be provided gratis by the instructor

Not in course packet

Ashoka—Innovators for the Public, Leading Social Entrepreneurs (Arlington, VA, 2008)

Provided gratis by instructor

Not in course packet


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Class Calendar

Sun Mon Tues Wed Thurs Fri Sat

JANUARY JAN 1 2

3 4 5 6 7

8 9

10 11 12 13 14

15 16

17 18 19

20

HKS

Shopping

Day

21

22 23

HBS

Shopping

Day

24

NO CLASS

25

26 27

28

FEBRUARY 29 30

Intro.

31

Zipcar

FEB 1 2 3 4

5 6

Starbucks

7

Extend

Fertility

8 9 10 11

12 13

Aravind

14

Narayana

15 16 17

18

19 20

PRES.

DAY

21

Odyssey

22 23 24 25

MARCH 26 27

Infosys

28

Grameen

29 MAR 1 2 3

4 5

SKS

6

Compartamos

7 8 9 10

11

BREAK

12

BREAK

13

BREAK

14

BREAK

15

BREAK

16

BREAK

17

BREAK

18

19

NO

CLASS

20

NO CLASS

21 22 23 24

25 26

Third

Rock

27

Ashoka

28 29 30 31


4

APRIL APR 1 2

Echoing

Green

3

New Profit

4 5 6 7

8 9

Acumen

10

Omidyar

11 12 13 14

15 16

NO

CLASS

17

Vertex

18 19 20 21

22 23

Summary

24

NO CLASS

25 26 27 28

29 30


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Schedule

Friday, Jan. 20 – HKS Shopping Day

Monday, Jan. 23 – HBS Shopping Day

Tuesday, Jan. 24 - No Class

INTRODUCTION

Monday, Jan. 30

Assignment

Global Heroes: A Special Report on Entrepreneurship, The Economist, March 14, 2009,

pp. 1-20.

Stevenson, Howard H., "A Perspective on Entrepreneurship," Apr. 13, 2006, HBS Case

no. 9-384-131.

Coster, Helen, Wolan, Christian ―Impact – 30 Top Social Entrepreneurs‖, Forbes,

December 19, 2011, pp. 78-84

Drucker, Peter F., Innovation and Entrepreneurship: Practices and Principles, Harper &

Row Publishers: New York, 1985.Introduction and Chapter 1.

Schumpeter, Joseph A., The Theory of Economic Development, Harvard University Press:

Cambridge, 1961. Pp.74-94

Questions

1. TBD

GETTING STARTED (1)

Tuesday, Jan. 31

Guest: Peter Aldrich (invited)

Assignment

Zipcar—The best new idea in business (September 24, 2009) Fortune, cover and Pp 42-

52.

Hammermesh, Richard G., Paul W. Marshall and Taz Pirmohamed, "Note on Business

Model Analysis for the Entrepreneur," Jan. 22,2002, HBS Case no. 9-802-048. CASE:

Hart, Myra, Michael J. Roberts and Julia D. Stevens, "Zipcar: Refining the Business

Model," Oct. 1, 2001. HBS Case no. 9-803-906.


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Questions

1. What is the purposeful innovation of Zipcar?

2. What are the pros and cons of a for-profit and non-profit model for an organization like

Zipcar?

3. Why do you believe the founder left?

GETTING STARTED (2)

Monday, Feb. 6

Assignment

Starbucks: Howard Schultz vs. Howard Schultz (August 6,2009) Business Week. Pp. 28-

33.

Miller, Claire Cain, "Now at Starbucks: A Rebound,‖ The New York Times, January

20,2010

Koehn, Nancy F., "Howard Schultz and Starbucks Coffee Company," Sept. 30, 2005.

HBS Case no. 9-801-361.

Questions

1. How are Starbucks' strategy and management innovative?

2. How did Howard Schultz want to "change the world"?

3. Why did they get in trouble?

GETTING STARTED (3)

Tuesday, Feb. 7

Assignment

Sahlman, William, "How to Write a Great Business Plan," July 1, 1997. Harvard

Business Review, #97409.

Walton, Ennis J. and Michael J. Roberts, "The Business Plan," Oct. 21, 1998. HBS Case

no. 9-389-020.

Stevenson, Howard H. and Michael J. Roberts, "New Venture Financing," Aug. 1, 2006.

HBS Note no. 9-802-131.

Hart, Myra and Sylvia Sensiper, "Extended Fertility," July 21, 2005. HBS Case no. N9-

805-065.


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Questions

1. What are the elements of innovation in the Extend Fertility business concept?

2. Do you think Christy Jones will succeed? Why or why not?

3. If you were Christy, what would be the most attractive source of financing for this

venture (bootstrapping; friends and family; angels; venture capitalists, corporate

partners)?

GOING TO SCALE (1)

Monday, Feb. 13

Assignment

Drucker, Peter F., Innovation and Entrepreneur ship, Chapters 2-10.

Rangan, Kasturi, "The Aravind Eye Hospital, Madurai, India: In Service for Sight," Jan.

10,2007, HBS Case no. 9-593-098.

Questions

1. What is innovative about this hospital?

2. How do Peter Drucker's insights apply to this case?

GOING TO SCALE (2)

Tuesday, Feb. 14

Assignment

Drucker, Peter F., Innovation and Entrepreneur ship, Chapters 11,13,14.

Khanna, T. and Rangan, Kasturi, "Narayana Hrudayalaya Heart Hospital: Cardiac Care

for the Poor," April 25, 2006, HBS Case no. 9-505-078.

Questions

1. What is innovative about each of these hospitals?

2. How do Peter Drucker's insights apply to these two hospital cases, and to the earlier

Starbucks, Zipcar and Extend Fertility cases?

Monday, Feb. 20 – President’s Day


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DRIVING THE BUSINESS MODEL (1)

Tuesday, Feb. 21

Assignment

Higgins, Robert F., Fuller Virginia A., Odyssey Healthcare, HBS case no. 9-809-052,

January 29, 2010

Clifford & Cavanagh, The Winning Performance, Chapter 1, 2, and 8.

Questions

1. What are the advantages and disadvantages for Odyssey of being a public company, a

private company or a non-profit?

2. Is the evolution of hospice care in America typical of the way new service industries

develop?

DRIVING THE BUSINESS MODEL (2)

Monday, Feb. 27

Assignment

Reich, Robert B., "Entrepreneurship Reconsidered: The Team as Hero," HBS Case no.

87309, Harvard Business Review. May/June 1987.

Hamermesh, Richard G., Heskett, James L., Roberts, Michael J., "A Note on Managing

the Growing Venture," April 23, 2005, HBS Case No. 9-805-092.

Kuemmerle, Walter, "Infosys: Financing an Indian Software Start-Up," April 8, 2004,

HBS Case No. 9-800-103.

Questions

1. What innovative evidence is there in the Infosys case?

2. How are the founders/leaders of Infosys different from other entrepreneurs we've

studied? Does their leadership style have any relevance outside of this specific setting

(e.g., in your experience can you think of anywhere else this would apply)?

3. Infosys is the first case in which we see the company's progression from start to finish;

what insights from Chapter 4 (from The Winning Performance) apply to Infosys?


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MICROFINANCE (1)

Tuesday, Feb. 28

Assignment

Dees, J. Gregory, "The Meaning of "Social Entrepreneurship," Pp. 1-5

Kennedy School of Government Case Program, "Muhammad Yunus and the Grameen

Bank," KSG Case no. 1830.0

Questions

1. How was/is the Grameen Bank innovative—as a business and as a social institution?

2. What do you think led Yunus to change his bank’s corporate status from government

agency to for-profit to mutual non-profit? Does it matter if microlenders are non-profit or

for-profit?

3. Many world class entrepreneurs have run-in’s with governments. (Gates with the US

antitrust agencies; Larry Ellison of Oracle with the SEC and the EU; the aluminum and

oil oligarchs in Russia; Yunus with his central bank.) Why do you suspect this happens?

MICROFINACE (2)

Monday, March 5

Guest: Michael Chu (invited)

Assignment

World Microfinance Forum Geneva, (October 2008), "Is it fair to do business with the

poor?" Pp. 1-12.

Chen, Theresa, ―SKS Microfinance Case,‖ HBS case 9-208-137, May 07, 2008.

Bajaj, Vikram, ―Amid Scandal, Chairman of Troubled Lender to Quit,‖ New York

Times, Nov. 24, 2011, pB-3

Questions

1. TBD


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MICROFINACE (3)

Tuesday, March 6

Assignment

Chu, Michael, Garcia Cuellar, Regina, ―Banco Compartamos,‖ HBS case 9-308-094, Jan.

28, 2008

Questions

1. TBD

Monday, March 12 – No Class – Spring Break

Tuesday, March 13 – No Class – Spring Break

Monday, March 19 – No Class – Individual Final Paper Topic Research

Tuesday, March 20 – No Class – Individual Final Paper Topic Research

GETTING HELP AND FUNDING (1)

Monday, March 26

Higgins, Robert, Kindred, Natalie, ―Third Rock Ventures,‖ Sept. 27, 2019, HBS Case N1-

811-002

HBS Venture Capital Note


Tuesday, March 27

Assignment

Drayton, Bill, "Everyone A Changemaker: Social Entrepreneurship's Ultimate Goal" MIT

Press with Harvard University and George Mason University, Pp.l-27.

Bornstein, David, How to Change the World, Chapters 2, 5, 6, 10, 12, 14, 15, and 20.

Ashoka Innovators for the Public, Leading Social Entrepreneurs, Ashoka 2009. (To be

distributed)


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Questions

1. How is Ashoka innovative?

2. Compare and contrast what you learned about Ashoka with what you know or learned

earlier in the course about venture capital firms.

3. What were Bill Drayton's personal characteristics and interests, and how did it affect the

organization, both positively and negatively?

4. When organizations scale as Ashoka did (from $50,000 to over $30 million in budget in

Ashoka's case), what do you believe are the benefits and challenges of such growth?


Monday, April 2

Guest: Cheryl Dorsey (invited)

Assignment

Dorsey, Cheryl, Toward a Theory of SEQ (Social Entrepreneurship Quotient), Echoing

Green, October 2009.

Echoing Green Annual Report (2010) (To be distributed)

Battilana, Julie, Delong, Thomas, and Weber, James, "Echoing Green," HBS Case no. 9-

410-013, December 7, 2009.

Questions

1. In what ways were Ashoka and Echoing Green similar, in what ways were they

different? How do you think this affects their fundraising?

2. Ten years from now, which organization do you believe will be more successful, and

why?


Tuesday, April 3

Guest: Vanessa Kirsch (invited)

Assignment

Kaplan, Robert S., ―New Profit, Inc.: Governing the Nonprofit Enterprise,‖ HBS case 9-

100-052, November, 30, 1999

Questions

1. TBD


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Monday, April 9

Assignment

Denend, Bill, Meehan, Bill, ―Acumen Fund and Embrace: From the Leading Edge of

Social Venture Investing, HBS case 9-100-052, July 3, 2001

Costa, Helen, ―Can Venture Capital Save The World?‖ Forbes December 29, 2011. Pp.

66-75

Questions

1. TBD


Tuesday, April 10

Assignment

Chu, Michael, Hazell, Jean Steege, ―Omidyar-Tufts Microfinance Fund: Striving to

Reshape the Social Enterprise Capital, HBS case 9-307-078, October 30, 2007

Questions

1. TBD

Monday, April 16 – No Class


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CROSS SECTOR JOINT VENTURES (1)

Tuesday, April 17

Guest: Joshua Boger (invited)

Assignment

Groopman, Jerome, "Open Channels: Do new Cystic-Fibrosis therapies hold the key to

treating other genetic disorders?" The New Yorker. May 4,2009, Pp. 30-34.

Stephanie Strom, ―To Advance Their Cause, Foundations Buy Stocks,‖ The New York

Times, Nov. 24, 2011.

Higgins, Robert F., Sophie Lamontagne and Brent Kazan, "Vertex Pharmaceuticals and

the Cystic Fibrosis Foundation," HBS Case no.9-808-005.

Questions

1. How is this joint venture (JV) innovative?

2. Who is the real entrepreneur in the story?

3. What strengths and skills do nonprofits and for-profits bring to JVs?

Monday, April 23 – Course summary

Term papers due May 4, 2012