Source Material:Gregory Dees, Jed Emerson, and Peter Economy, Strategic ToolClass Schedule:Karl Eller Center Eller College of Business and Public Administration ENTR 500a Entrepreneurship for the MBA Syllabus Fall 2002 Class Time: Monday and Wednesday (1 hr 15 min) Dates: Oct 28 to November 27 Class Location: McClelland Hall 125 Instructors: Gary Libecap John Nighswander Office: McClelland Hall Room 202 Office Hours: Tuesday, Thursday 1:00 PM to 3:00 PM and by appointment Gary Libecap: 621.2576 John Nighswander: 626.4031 [email protected] The objectives of Entrepreneurship for the MBA, ENTR 500: ♦ Defining social entrepreneurship and general entrepreneurship and their roles in the society. ♦ Identify the importance of business planning for all ventures, social and those more purely commercial. ♦ Create an awareness of the value of an entrepreneurial educational experience ♦ Create an awareness of the career paths available to the entrepreneur ♦ Introduce the skill sets characteristic of successful entrepreneurs, critical thinking, problem solving, can do attitude ♦ Introduce the relationship between technological innovation and entrepreneurial activity ♦ Introduce the student to the concept of the business plan as an accepted business practice for planning and critical thinking ♦ Introduce the student to the concept and opportunities in social venturing Framework: ♦ Entrepreneurship as a function of the social and commercial activities ♦ Opportunity and risk identification, goals clarification and strategic plan ♦ Start-up strategies for new ventures ♦ Business Plan development as a critical strategic tool ♦ Financing alternatives for entrepreneurial ventures ♦ Social venturing as an entrepreneurial opportunity Grading: Reading analyses 80%Class attendance, participation and presentation: 20% Course Materials: Readings: Joseph Schumpeter, The Theory of Economic Development, 1961, and “The Process of Creative Destruction,” in Capitalism, Socialism, and Democracy, 1976. Alvin Klevorick, Richard Levin, Richard Nelson, and Sidney Winter, “On the Sources and Significance of Interindustry Differences in Technological Opportunities,” Research Policy, 1995. Scott Shane, “Prior Knowledge and the Discovery of Entrepreneurial Opportunities,” Organization Science, 2000. Lowell Busenitz and Jay Barney, “Differences between Entrepreneurs and Managers in Large Organizations,” Journal of Business Venturing, 1997. D.K. Sarasvathy, Herbert Simon, and Lester Lave, “Perceiving and Managing Business Risks: Differences Between Entrepreneurs and Bankers,” Journal of Economic Behavior and Organization, 1998. Wayne Stewart, Warren Watson, Joann Carland, and James Carland, “A Proclivity for Entrepreneurship: A comparison of Entrepreneurs, Small Business Owners and Corporate Managers,” Journal of Business Venturing, 1998. Alberta Charney and Gary Libecap, “The Economic Contribution of Entrepreneurship Education: An Evaluation of the Berger Program,” forthcoming, International Journal of Entrepreneurship Education. Stanley Rich and David Gumpert, “How to Write a Great Business Plan,” Harvard Business Review, July August 1997. Ernst and Young LLP, “Outline for a Business Plan: A Proven Approach for Entrepreneurs Only,” 1997. Christine Letts, William Ryan, and Allen Grossman, “Virtuous Capital: What Foundations Can Learn From Venture Capitalists,” The Entrepreneurial Venture, Harvard Business School Press, 1999. Alice Oberfield, J. Gregory Dees, “Starting a Nonprofit Venture,” Harvard Business School Press, 1999. Robert Lowe, “The Role and Experience of Start-Ups in Commercializing University Inventions: Start-Up Licensees at the University of California,” in Gary Libecap, ed, Advances in the Study of Entrepreneurship, Innovation and Economic Growth, 13, 2001. Source Material: Gregory Dees, Jed Emerson, and Peter Economy, Strategic Tools for Social Entrepreneurs. Case Studies: Howard Schultz and Starbucks Coffee Company, HBS reprint Next Stage Entertainment, Stanford University reprintKarl Eller, Stanford University reprint Pyramid Block Technologies, Inc. Super Servicio, LLC Optica Technologies, Inc. Casa Sin Fronteras X-Celeration, Inc. Class Schedule: Class 1, October 28, Gary Libecap: ENTREPRENEURSHIP!—CONCEPTUAL ISSUES IN SOCIAL AND COMMERCIAL ENTREPRENEURSHIP. What is entrepreneurship—commercial and social? Is everyone an entrepreneur? Are inventors entrepreneurs? How critical is it for an economy? What forces or institutions promote entrepreneurship? Oppose it? Why would entrepreneurs be opposed? What is the role of culture? What individual characteristics describe entrepreneurs? What ethical issues are involved? Why should MBA students be interested in entrepreneurship as a phenomenon? What types of organizations and what settings benefit from entrepreneurial activities: individuals, private firms, socially-aware organizations? The essence of individual risk taking in a market as opposed to mandated government economic policies. Class 2, October 30, Gary Libecap: ENTREPRENEURSHIP IN ECONOMIC HISTORY AND ECONOMIC DEVELOPMENT. Reading summary due at start of class: Joseph Schumpeter, The Theory of Economic Development and “The Process of Creative Destruction,” in Capitalism, Socialism, and Democracy. Discussion of Schumpeter, American economic history. Mixed views of 19th century entrepreneurs. Many unknown entrepreneurs; active patenting activity near major access to markets; economies of agglomeration; frontier economy; new opportunities; few established patterns; promotion in the Constitution; Robert Fulton—adaptation of steam power for water transportation; Francis Lowell—organization and use of water power in textile mills. Later in the 19th century, well-known entrepreneurs—Rockefeller, Carnegie, Frick, Swift, Armour. Innovation in technology, organization, finance, products. Multiple dimensions. Scale. Successful. Controversial—the “Vital Few,” “Robber Barons.” 20th century entrepreneurship—adoption of new technology, such as electricity and other forms of energy. Disruption of WWI, WWII. Post war slow down in US productivity growth—large protected industries, unions, regulationpervasive. Growth of US productivity by early 1990s coincides with deregulation and tax