Entrepreneurship and Corporate Social Responsibility

Daniel Uribe
August 3rd, 2018

General Objective:
 Provide the basic tools of entrepreneurship and CRS with a focus on identifying the potential business opportunities to execute
 Provide a framework to analyse entrepreneurial opportunities and the capabilities to develop under the innovation funnel
methodology
 Provide you the tools and framework to “Design Your Life” and apply the Design Thinking methodology to any context.

The course is designed to funnel the talents of students to apply certain theorical and practical frameworks on their life project. The course
will use guided reflection, case studies, guest speaker, visits, certain reads and workshops; guided towards linking the more and theorical and
practical aspects of the course and make useful breakthroughs for the skills and changes necessary for the development of a start-up.

 Midterm 20% August 21st  Initial Presentation 25%  Final Presentation 25%
 CSR Case Study 10% October 5th November 2nd
September 21st  Class Follow-up 20

What is Entrepreneurship?
Entrepreneurship has had a redefinition starting from the 1950s. While Richard Cantillon, Jean Baptiste Say, Joseph Schumpeter
conceptualised it as a task needing of resource allocation, risk taking and building capital; the average businessman made exploitation of
opportunities by allocating resources to turn a profit. Entrepreneurship was all-about efficiency and an almos soulless pursuit of capital.
Entrepreneurship now is viewed as driven by innovation rather than exploiting markets. The contemporary entrepreneur exploits people’s needs
through production or service focused on bettering the lifestyle of their clients. The focus on needs makes it necessary to constantly search for
opportunities.

Cantillon (c.1680-1734) introduced the term entrepreneur and its economic importance. He said an entrepreneur in a risk taker who buys
goods at know prices and sells them at unknown prices. Say (1767-1832) defined it and as he who shifts economic resources our of an area of
lower productivity into an area of higher productivity and greater yield. Schumpeter (1883-1950) said that entrepreneurship is the main driver of
capitalism, dynamically creating innovation.

Entrepreneurship can be said to be the process of turning ideas into opportunities and establishing an organizational structure to exploit
those opportunities; the expansion of opportunities makes the company diversify its services or products catalogue. Entrepreneurs are committed
individuals willing to take risks. It’s is more than just having an idea, it is to prototype it, and scale it. It is a lifestyle. The revenues of a company
are determined by the value of its clients and by the number of clients overall.

SCHOOL OF THOUGHT: a group of ideas accepted by a determined group of people.

 Environmental: for an entrepreneur to succeeded they
must accede to things it cannot control.
 Capital or Financial: the more capital an entrepreneur
has, the more likely they are to succeed.
 Displacement: an entrepreneur must follow vogues or
create its own to succeed.
 Entrepreneurial Trait: entrepreneur must acquire
certain traits to succeed.
 Venture Opportunity: the entrepreneur must focus on
opportunities they can exploit.
 Strategic Plan: success on entrepreneurship is all
about strategy.

Traditional start-ups are those that take an existing product and make it better or sell it cheaper. Digital entrepreneurships offer digital
services. Social entrepreneurship, either for-profits or non-profits, are services designed to impact social and economic standing of their clients
either by teaching skills or making opportunities easier for them to reach. Intrapreneurship consist in creating new and innovative products and
services inside and through larger companies. Unicorns (start-ups valued over one billion dollars’ worth) can come from any kind of
entrepreneurship.

Companies can be valued by either their intrinsic values measured by free cash flow, by their comparable through how similar companies
are valued, or by precedent measured by the values at which similar companies were sold. The absolute value of a company is plainly its free
cash flow for perpetuity and therefore all valuing methods are simple estimates. The estimated values of the higher cost and the lower are what
the company is estimated to be worth, adjusted by the estimation made; however, a company’s price is whatever the buyer is willing to pay.

August 10th, 2018

Entrepreneurship Environments
The Global Entrepreneurship Monitor (GEM) is an annual report which ranks entrepreneurship habitats based on factor, efficiency, and
innovation driven growth. It also profiles and reports on different countries according the start-up and commercial environments.

Silicon Valley
Silicon Valley is a hub for entrepreneurship since the 60’s because of the research Universities located around the San Francisco bay area
provide, especially on tech fields. The traction that, over the years, it has gained, has made a centre of gravity for tech company and human and
risk capital growth for research and innovation. The San Francisco area is known for its rather liberal attitude which allows companies there to
dabble on different projects without worrying about moral quarrels. Silicon Valley however, lacks in networking compared to the general
measure of North America, mainly for its isolation to the rest of entrepreneurial ecosystems on the United States.

Israel
Israel is a very fertile habitat for Jews. Because of the open policy on Zionist-oriented immigration and mandatory merit-based military
service, Israelis know who to work with and who to talk to get thing done. Israel, however, lack on international reach and internal competition
due to the minimum concentration of similar companies, the already filled economic niches and a hostile diplomatic environment around them.

Colombia
Colombia is lacking in a lot of fields and average in others. However, the high growth due to a high opportunity sense engrained in our
culture. Product perception is, however, experiencing a lot of growth, mainly on the service industry. Ruta N, a public-private company, has
made a breakthrough on connecting investors and businesses and patent bridges for innovation. Proantioquia, a think-tank focused on research
and development, offer conferences and mentorships for entrepreneurs. ANDI del Futuro is the entrepreneurial branch of the Asociación
Nacional de Industriales (ANDI), its main asset being networking opportunities. Creame is the seed capital heaven and investment incubator for
local entrepreneurs and developing companies, most entrepreneurships that are worth something go there. Promotora is a networking firm and
accelerator fund for start-up companies.

Entrepreneurial Process
DISCOVERY STAGE: The discovery stage is all about the idea of a product, the creations of concepts and the research necessary for its
creation, including investments. (Own capital, Family’s, friends’ and fools’ investments)

BIRTH STAGE: The birth stage is all about the realisation of the product through investments and networking. (Seed capital, Angel
Investments, Grants)

START-UP STAGE: The start-up stage is all about the product and the marketing; the minimum viable product gets quickly worked upon.
(Pre-Series, Series A (optimise), Series B (build), Series C (scale))

GROWTH STAGE: The growth stage is about the company getting better and bigger through more thorough organisation and expansions
and team, customer, and sells growth. (Initial Public Offering or Private Purchase)

Financing Sources: Family’s, friends’ and fools’ investments, grants, licences, angel investors, venture capitalists, crowd funding,
incubators and accelerators are the main sources of seed capital for entrepreneurships.

August 17th, 2018

MUST SEE SLIDESHEETS

Entrepreneurial Mindset
To understand entrepreneurship, one must differentiate and determine certain things. Entrepreneurship may be hindering towards
employability due to the risk inherent to the activity. Furthermore, entrepreneurship is different from founding a small business. Small businesses
are meant to stay small while the entrepreneur work towards expansion and growth.
 Intrapreneurship
Corporate entrepreneurship or intrapreneurship is the same process of entrepreneurship but dependant on a corporations’ funds. Corporate
venturing and strategic entrepreneurship are its main forms: the first one is centred on innovation of products while the second one is focused on
renewal and redefinition of existing products, brands, processes and structures. Both have similar point on which they collide however: all
intrapreneurs focuses on processes within the company, their risk is on the context of their jobs, they contribute to increase productivity and to
drive innovation, they are skilled problem solvers, they require freedom and the ability to experiment, they understand and follow trends, and
they understand their company and become leaders within them.

Entrepreneurial Motivation

The entrepreneur must be passionate about their start-up in some way, be it the mission or the process. The entrepreneur is all about wealth
creation, independence, job satisfaction, personal achievement, customers satisfaction, and innovation. The social aspects of entrepreneurship
and the entrepreneurial goals are driven towards social value creation and even saving the world. Human capital is the main thing an
entrepreneur is recognised for.

Prior experience has a huge impact on the process of entrepreneurship. The entrepreneur must understand the industry their getting at, their
costumers’ problems and how to exploit them. They understand innovation and its potential for the industry, the existing technology and its
current state. The entrepreneur has an even better knowledge of their competitors and their trade, building to work on better, bigger and closer
networks. The entrepreneur learns by doing; they are expert on running independent businesses.

August 24th, 2018

Innovation
Joseph Schumpeter is considered the father of innovation. He proposed five different types of innovation relative to: technology, processes,
businesses models, positions, and innovation onto itself. There is other way to divide innovation, by category; innovation can be either
disruptive, incremental, or lateral. Innovation can be said to be the invention of new things and their value.

Innovation is different from invention; while innovation adds value to an invention, invention is the plain creation of new things and the
process though which they have been made. Innovation is invention times capitalisation. Innovation can be measured by the business models and
the technical competence.

EXISTING
SKILLS NEW SKILLS

Architectural
Disruptive
NEW Innovation
Innovation
MODELS (technology
(mere business)
services)
Routine Radical
EXISTING Innovation Innovation
MODELS (iteration of (mere
products) technology)
 August 31st, 2018

Lean Star-up Methodology

To start a start-up, one must be focused on the customers problem considering its urgency. The ideas of the entrepreneur ought to be guided
towards solving problems. The knowledge, environment, likes and dislikes, experience, creativity and observations of an entrepreneur are vital to
the resolution of their goals. When founding a start-up with someone else one must make sure they are determined, humble and share the same
passion one does. Cofounders must share values before complementing skills; it is easier to learn skills than to acquire values.

The entrepreneur has a relentless faith in the future through innovation and tries to achieve their ideals through their work. A start-up must
be born out of an idea that tries to solve a problem rather than a raw passion for business. Start-ups ride the waves of innovation. The new
possibilities that technology allows provide new possibilities to solve problems.

A start-up’s early days are preferably measured by frequency of use according to the nature of its product. It is better to star deep and
narrow relative to the customer base than to start wide and shallow. Initial customers must be involved with the product and be passionate about
it to have a strong base to build upon on the future. Building a customer base is a manual labour in the infancy of a product; one must send the
product and contact plausible users to build it.

“The team you build is the company you build” -Sam Altman
Regarding employees, it is better stay lean while the company stabilises. To start hiring is to make a commitment to the people you hire. At
the very beginning of a start-up, it must be flexible, and a large team doesn’t allow that. Once hiring is due, to hire mediocre people dooms the
company to mediocrity. The excellence of a company is measured by the excellence of its team.

PITCH: a short presentation of the start-up. It may contain a proven industry example and its new focus (the <product> of <industry>), the
target demographic, the problem, he usefulness, the product and its features and difference from the competition.

September 14th, 2018

Corporates Social Responsibility

The paradigm change in business has had a drive forward to provide services and practices that help to wellbeing of mankind. In the past
business only drove for profit, and the nude wellbeing of their shareholders. Now, conscious capitalism, a doctrine for capitalism to be
sustainable in different areas such as the environment and society. Conscious capitalism strives to maximise profit through the betterment of
society and the environment for a better consumer landscape.