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Entrepreneurship 1: Developing the Opportunity, Startup, G3, :red_flag:…
Entrepreneurship 1:
Developing the Opportunity
1.4 Venture Creation's Role in Society
1.5 Type Of Enterprise
Types of Stratups
Lifestyles Startups
Minimal funding
No large- scale growth or hiring
Hobby or supplemental income
Small Business
Goal : "Feed the family" (sustainability over rapid expansion)
Funded through personal savings,loans,or family/friends
High-Growth Startups (Sillicon Valley Style)
Goal : Rapid expansion and scaling
Seek venture capital or angel investors
Aim for IPO (Initial Public Offering) or acquisition
Intrapreneurship (Startups Inside Larger Organizations)
uses company resources, reducing personal risk
Goal : Integration into the company or spin-off as a speparate unit
Social Ventures
Primary focus : Social good over profit
Funding sources :Grants, donations,volunteers
Aim for sustainability rather than exit strategy
Key Considerations for startups
Why Start a Business :question:
financial goals
Passion
innovation
social impact
Resources Needed
Funding
: Self-funding, inestors, grants
Skills, knowledge, and team support
Locations Factors
High-growth startups thrive in tech hubs
Social ventures may be better in specific communities
1.1 Course Introduction
Entrepreneurship
1. Introduction to Entrepreneurship
Creation and management of a new enterprise to accomplish an objective.
Entrepreneurship can be small-scale (e.g., street vendors) or large-scale with broader goals beyond making money.
Examples of entrepreneurs with different motivations (e.g., Bedtime Math, Raaka Chocolate, Terrafugia).
2. Financial Sustainability in Business
Essential for long-term success, regardless of the entrepreneur’s main objective.
Two models of financial sustainability:
Product-based businesses: Formula → Q(p-c) > F
Service/software businesses: Formula → LTV > CAC
3. Understanding Financial Models
For product-based businesses:
Revenue must exceed costs (Q = quantity sold, p = price, c = cost per unit, F = fixed costs).
Example: Belle-V Bottle Opener’s revenue and cost breakdown.
For service/software businesses (Subscription Model):
Customer Lifetime Value (LTV) should be higher than Customer Acquisition Cost (CAC).
Example: Gridium software company’s revenue structure.
4. Probability of Success and Risk Assessment
Success depends on the entrepreneur and the chosen opportunity.
Different opportunities have different risk levels:
Franchises → High success rate (80-90%).
Innovative ventures (e.g., new medical devices) → Low success rate (5-10%).
Business survival statistics:
78.5% of businesses survive their first year.
Only 33.5% survive after 10 years.
5. Investor Perspective & Financial Returns
Most startups fail (majority return zero profit to investors).
However, successful startups can generate high returns, averaging 2.2x the initial investment.
Investors take on high risks, expecting a few ventures to generate massive returns.
1.6 Technology Entrepreneurship
Challenges in Developing the Opportunity
Tipping Points and Technology Platforms
Appealing to the Mainstream
What Determines Pie Allocation?
Bargaining Power
Market Power
Entrepreneurial Opportunity Windows in a Typical Adoption S-Curve
Stages of the S-Curve
Takeoff
Maturity
Ferment
Maturity
Drivers of Market and Bargaining Power
Complementary Assets:
Stage of Industry Evolution
Appropriability
Economic Impact
Indicators of Impact
Second-Order Effects
Appropriability
Geographic Clustering of Technology/Entrepreneurship
Appropriability and Complementary Assets Over the Life Cycle
Life Cycle Stages
Takeoff Stage
Maturity Stage
Ferment Stage
Technology and Entrepreneurship
Success Factors
Founding Teams
Entrepreneurial Opportunity
1.3 Entrepreneiurship in Established Firm
Challenges
Opportunity Space
Exploration
Limited Resource
Exploitation
Focus
Balance
Succesfull Firm
Ambidextrous innovation
Distruptive Innovation
Sustaining Innovation
Beyond Customer needs
Disruptive innovation
-Clay Christensen
Low
Medium
High
Corporate Innovation Strategies
Partnerships
Opportunity
eg.TESLA
w/ TOYOTA
Technological component
Market
w/ AirBnB
Feature
Battery Charger
Acquisitions
Acquire
Target
Technology
Talent
Customer
Brands
example
Facebook
Major
Instagram
Oculus
WhatsApp
Market
Internal Development
Time
Exploration
Sabbatical
Long Brake
R&D Lab
1.2 Profile of the Entrepreneur
1. The Myth of the "Typical" Entrepreneur
The media often portrays successful entrepreneurs as young, male, college dropouts (e.g., Bill Gates, Mark Zuckerberg, Elon Musk).
In reality, the most successful entrepreneurs do not fit this stereotype.
2. The Truth About Entrepreneurial Age
The average age of a successful founder is 42 (including VC-backed startups).
The peak success age for major startups is between 45 and 52.
Entrepreneurship is not limited to young people—older individuals often have better chances of success.
3. Diversity in Entrepreneurship
38% of businesses in the U.S. are founded by women.
36% of businesses are started by minority groups.
While women and minorities face barriers to entry (e.g., funding challenges), research shows no difference in startup performance once funded.
4. The Role of Personality in Entrepreneurship
Entrepreneurs are often seen as overconfident, passionate, and highly driven
Overconfidence helps people enter entrepreneurship but does not predict success.
Passion can be beneficial but is not a strong success factor.
No single personality type guarantees success—entrepreneurship is open to all personality types.
1.7 Impact Entrepreneurship
Definition & Purpose
Combines business with social and environmental impact ,Aims to solve global challenges through entrepreneurial solutions ,Focuses on creating positive change while being financially sustainable
Core Principles
Social Value ,Sustainability, Innovation,Scalability, Measurable Impact
Key Sectors & Examples
Common sectors are education, healthcare, clean energy, and waste management.
Examples include Muhammad Yunus (Grameen Bank), TOMS Shoes, and Patagonia.
Opportunities & Impact Measurement
There are many opportunities from impact investors, NGOs, and governments. Impact can be measured using SROI, B Corp Certification, and IRIS.
Startup
money flow
Venture Capitalist
talent flow
Established Firms
The Value
28+ million enterprises in the U.S.
99% classified as small businesses (<250 employees)
Unicorn Startups
uber
blue apron
eventbrite
Exits & Investment Returns
Initial Public Offering (IPO)
Acquisition by larger firms
Overall Impact on Society
Job Creation
Investment Returns
Innovation & Economic Growth
Technology & Healthcare Driving High-Value Ventures
G3
IBS(3) Weylia 張微微 (50%)
IBS (3) Felicia 林代玲 (50%)
IBS (3) Jason 林俊良 (50%)
IBS (3) Filbert 黃峰量 (40%)
IPCM (3) Frenk 屠志仁 (40%)
IPCM (3) Yosua 李賢 (50%)
:red_flag:
rare startups reaching a $1B+ valuation
:red_flag: <0.2% of all venture-backed startups
eg. GOOGLE
eg. IBM, LinkedIn
eg. Yahoo Labs, Microsoft Research, Google X
