part 10: Global entrepreneurship class

Developing Global Mindset for Entrepreneurs

Class #10
Saturday June 12th , 2010
* MAYBE ON THURSDAY (?)

Professor of international finance and global
entrepreneurship with Forum-Nexus Study Abroad. Guest
lecturer with the IQS Business School of the Ramon Llull
University in Barcelona, and the Catholic University of Milan.
Previously, Brian taught finance, economics and global trade
courses at Thunderbird’s Global MBA program in Miami, and
worked as a research analyst at the Columbia University
Business School in New York City.
briandbutler@gmail.com
A global citizen, Brian was born in Canada, raised in
LinkedIn/briandbutler Switzerland (where he attended international British school),
educated through university in the U.S., started his career
with a Japanese company, moved to New York to work as an
Skype: briandbutler
analyst, married a Brazilian, and has traveled extensively in
Latin America, Asia, Europe and North America. Brian
currently lives in Recife, Brazil where he is teaching classes
on “Global Entrepreneurship” at the university FBV.

 Today- last lecture before exam
 Exam 30% of your grade!!
▪ Need to decide:
▪ Saturday - June 19th (?) -- OR --
▪ Thursday – June 17th

 One week later – team project due
 Saturday June 26th - submit by EMAIL
25% of your grade!!

 You MUST return Exam#1 BEFORE taking
Exam #2

 You will not be allowed to take exam #2
without turning in Exam #1

 If you forget it… you will be asked to go
home, and return with it!!!! Please don’t
forget!!!

 Social networks & Entrepreneurs
 Entrepreneurship Clusters + Economic
Development
 International IQ – Brazil – risks / opportunities

 Homework / assignments:
 I f you missed any homework… you may still
submit them!
 How? Review slides from previous lectures. Look
for homework assignments. If you didn’t do any…
DO THEM NOW!!!!
 Group Project
 Get together and start working today!
 Don’t wait till the last second!!

Entrepreneurship and Economic Development
 Economic development through innovation and
entrepreneurship
 Development through transfers of technology and
business models
 Geographic Clusters of innovation: What makes Silicon
Valley work?
 Is India the next emerging competitor to Silicon Valley?
 VC and innovation clusters – Silicon Valley, Boston, Israel.
What’s missing in Europe? Latin America? A look at
cultural, political, and economics issues.
 Innovation Eco-systems: innovative potential of places

 “The rise of Silicon Valley has garnered
worldwide attention because it seemed to
offer the possibility that a region with no
prior industrial history could make a direct
leap to a leading-edge industrial economy,
given the right set of elements, without the
time and effort required to pass through any
intermediate stages of development. “

Helga Tawil, “Silicon Valley's Table of Elements” , Dec. 2000

 “The idea that so much growth could occur in
so short a time within such a small
geographic area has sent planning bodies and
government agencies from Albuquerque to
Zimbabwe scramming to grow the next
Silicon Valley in their backyards (Miller and
Cote 1985). “


 “The model of Silicon Valley has become the
Holy Grail of economic development.”

 “Nowadays, virtually every government in the
world seems to want to create its own Silicon
Valley. “


 One article mentions that “at the last count, no fewer than
72 places had billed themselves as the “next” silicon Valley

 The U.S. alone is home to Silicon Desert (Utah), Silicon Alley
(New York), Silicon Hills (Austin) and Silicon Forest (title fought
over between Seattle and Portland), among many others.

 Taiwan, Israel, India and Britain all boast respectable imitations.

 Some of the more unlikely aspirants include:
▪ France's Cote d'Azur (“Europe's California”),
▪ Egypt's Pyramid Technology Park, and
▪ Malaysia's “Multimedia Super Corridor,” a 478 square mile area and $40
billion set aside by the Prime Minister for his own version of Silicon
Valley, that will include an IT city of 100,000 people. (Mickelthwait
1997).

 Silicon Valley of Europe?

 “Will it be "in Romania, Sweden, Holland, Ireland,
France?". When I asked which region was most
likely to emerge as Europe’s Silicon Valley, the
answers were all over the map: London, Munich,
Berlin, Zurich, Geneva, even Barcelona. …”

http://kookyplan.pbworks.com/Silicon-Valley-of-Europe

 The cluster effect is similar to (but not the same
as) the network effect.

 A business cluster is a geographic concentration
of interconnected businesses, suppliers, and
associated institutions in a particular field.

 Clusters are considered to increase the
productivity with which companies can
compete, nationally and globally.

 Governments and companies often try to use
the cluster effect to promote a particular
place as good for a certain type of business.
 For example, the city of Bangalore, India has
utilized the cluster effect in order to convince
a number of high-tech companies to setup
shop there.
 Similarly, Las Vegas has benefited through
the cluster effect of the gambling industry.

 The Silicon valley, in California in the field of
computer technology
 The Napa Valley wine-producing region in
California
 Paris, in France, for Haute couture
 U.S. movie production in Hollywood
 London's financial sector, known as "the City
of London" or just as "the City“

 Can you think of any others???….
http://en.wikipedia.org/wiki/Business_cluster

This guy clearly
was thinking
about “clusters”

http://www.scribd.com/word/view/24617

Trying to re-
create Silicon
Valley’s success
in Recife???!?!


 Additional (optional) readings for FBV class
Global Entreprenership:

 INTRODUCTION
 It started 40 years ago with the Traitorous Eight, a
handful of disgruntled engineers. Here's what
happened...
 HOW IT REALLY WORKS
 "What matters is how smart you are." The fuel
behind Silicon Valley's growth is brainpower
 MOVERS AND SHAKERS
 We all know the kings, but who are the
kingmakers?

 BEYOND THE VALLEY
 Many regions have tried to recreate the magic,
but none has succeeded.
 Applying the lessons of Silicon Valley to
companies of all stripes
 THE NEXT GENERATION
 Who'll replace Steve, Larry, and Andy?
 Here's a look at 16 potential leaders of Silicon
Valley's Next Generation.

 Silicon Wannabes
 TAIWAN'S NEW GRAIL: INNOVATION
 AMID THE RUBBER TREES, A MULTIMEDIA SUPER
CORRIDOR?
 SCREEN: Prime Minister of Malaysia's Web Site
 CAMBRIDGE: THE HALLOWED HALLS OF HOMEGROWN
TECH
 AUSTIN: A THRIVING CLONE OF THE VALLEY
 TABLE: Austin's Top Entrepreneurs
 TABLE: Austin's Top Tech Companies
 BOSTON'S ROUTE 128: COMPLEMENTING SILICON VALLEY
 NEW YORK'S SILICON ALLEY: A STEEP ROAD AHEAD

http://paulgraham.com/siliconvalley.html

 At least one question on the exam will come
from this article


Social Media for global entrepreneurs
 Using Social Media to create global presence
(twitter, facebook, etc)
 “Flat-world” strategies for competing globally

 To get ready for class presentation on how global
entrepreneurs can use social media to attract global
clients:
 All students must signup for
 Twitter, facebook, linkedin
 Be prepared for discussion about “social media” and
entrepreneurship

 Extra credit +1 point for class participation: available to
student that finds & connects with me on the most
number of locations

 Due: Tursday, May 1st (before easter)

 Question: who has signed up?
 Who got the most? (extra credit for most)

 What benefits do you think cold be found in
social networks for entrepreneurs?

 Discuss….

 Why lecture on “social networks” in a class on
global entrepreneurship?

 Why? To…
 Project SIZE (small appears large)
 World is flat – talk to anyone, anywhere

 But… how do you use social networks for this?
 Class discuss…

 Social networks are about communication.
 Creating communication, creating
community
 The goal is to create community AROUND
your company / idea / brand / startup

 Why?

 Why?
 Repeat customers: Website visitors visit one time,
and leave. A community stays around, talks,
comes back.
 Viral loop – more people talking, referring, talking
more, referring more…. Etc
 Give you a chance to LISTEN!! -- feedback, find
problems before by listening to your community,
and responding.
 Google ranking. Based on links + social activity

 Do you remember our class discussion on the
“3R’s” of entrepreneurship?

 R - risk
 R- relationships
 R – reputation

 This lecture:
 Using social media –to build network, project
Reputation (3 R’s) Reputation
 Tools:
▪ – linkedin – facebook – twitter – google – orkut, etc…

 Reputation
▪ Not just among your friends & family…
▪ But, how is your reputation online?
▪ If a future employer were to GOOGLE your name, what would
he / she find?
▪ Note: everyone in today's world has TONS of photos online
they would rather employers not see (remember that spring-
break vacation? Once content is online, its there forever!)
▪ The goal is not to remove all traces of your past from online,
but to make sure that there is enough professional material
that will come FIRST.
▪ So if an employer/ partner / business associate… if they were
to google your name… what would they find? Are you giving
off the right image? Are you MANAGING THAT IMAGE?

 Reputation

▪ Investors invest in competent entrepreneurs
▪ Business partners join reputable leaders
▪ Employees risk working for an entrepreneurs if they believe in them
▪ Reputation is essential
▪ Embrace risk, don’t fear failure, but manage your reputation (online
especially!!)

▪ Build with online tools
▪ LinkedIn
▪ Blogs, networks

▪ In a future class (coming soon) we will look at social media (online tools) that
you can use to manage your online REPUTATION

 Relationships

▪ With clients, bosses, teachers, alumni, networks
▪ Entrepreneurs must be the PR department, the
marketing department, the sales department
▪ You are the face of the company (so keep smiling)
▪ Build your network of influential people, and ASK THEM
TO HELP YOU!!

▪ Maintain with online tools

▪ Suggestion: actively try to take risk
everyday (get into habit) + work to build
your reputation + relationships

http://www.slideshare.net/alex_dc

 Twitter:
 100 million+ users, with 50 million tweets sent each day.
 Facebook :
 nearing 500 million users. The average user has 130
friends, spends 55 minutes a day on the site and receives
three "event invitations" to real-life gatherings every
month (in December 2009, the company stated that 3.5
million events were created every month).
 Next? According to The New York Times, Facebook will
soon incorporate 'location' in two ways: its own features
for sharing location
 LinkedIn :
 over 65 million members. A new member joins LinkedIn
approximately every second.
http://www.trendwatching.com/briefing/

 Nearly three quarters (73%) of online teens
and an equal number (72%) of young
adults* use social network sites. 73% of adult
profile owners use Facebook, 48% have a
profile on MySpace and 14% use LinkedIn.
(Source: Pew, Feb 2010.)

http://www.trendwatching.com/briefing/

What are you waiting for?!?!!?

 (Reuters) - Social media company Twitter is
struggling to craft a profitable business model,
but the Web-based service has helped Dell Inc
chalk up millions of dollars in sales.
 Dell said on Thursday it has raked in more than
$3 million from Twitter followers who clicked
through its posts to its Web sites to make
purchases. The company, which has posted to
Twitter about two years and tracks the sales
with proprietary software, made more than $1
million in the past 6 months.

Reuters.com, “Twitter helps Dell rake in sales”, Fri Jun 12, 2009

 Dell said it posts 6 to 10 times a week to its DellOutlet
account, which is where the majority of Twitter-based
sales have come from. Stephanie Nelson, who
manages the account, said almost every post includes
a coupon or a link to a sale, and about half of the posts
are Twitter-exclusive deals.
 The PC maker, which has about 600,000 followers, is
one of the Top 100 most-followed accounts on Twitter,
according to private trackers TwitterCounter and
Twitterholic.
 Other non-media companies ranked in the Top 100
include Whole Foods Market Inc, Woot.com,
Zappos.com, JetBlue Airways Corp.


Different ways to communicate…

Examples…
 Simple: Post and broadcast 1 to many
 @forumnexus – to send message to staff
 #forumnexus – to talk to group
▪ Other name for this trip?

 Twitter had approximately 17 million unique
U.S.-based visitors in April, and about 24
million worldwide, according to Nielsen. Its
number of users has grown by more than a
thousand percent over the last year.


 Check out this fun video: "United Breaks
Guitars", and if you are taking our
"International Marketing" class, think about
how much $ a company like United would
need to pay in traditional advertising to
compensate for the reputational-damage
caused by one angry (and very talented)
customer. (note: this song went to #1 in
Apple iTunes, and has been viewed by
millions on YouTube)

 Search “intercambio” (study abroad in
Portuguese)

 “CETUSA is a terrible organization, never do
intercambio with them!!)….
 I hope they are watching twitter, and know how
to respond!!

http://www.unionsquareventures.com/2009/06/bring_the_world.html

▪ Question – If I search for you online
today… what will I find? (assume Im a
future employer, partner, boss, etc)…

Google
profile!

YouTube!

slideshare!

Twitter!
groups

http://www.google.com/profiles/briandbutler

http://www.roubini.com/author/brian_butler

Next Step:
connect Twitter
to other social
sites: facebook,
LinkedIn ,etc

http://learn.linkedin.com/twitter/

 Read the news,
search the
internet just as
you normally
would.
 Highlight text
 Click “share on
tumblr” button

 A window pops
up
 Click “advanced”
button, and
 select “share on
twitter”

And, select which account to send it
from …twitter, facebook or Linkedin

Why? In the future, they may If you find stuff you like… try re-
share yours… the social web in tweeting (sharing someone else’s
action!!! post with your readers).

Search for “study
abroad” and
Europe

Find kids looking for
study abroad in
Europe and start a
conversation!!!

Conversion Tracking
Conversion tracking allows you to track
activity that happens on your website
as a result of someone on Facebook
seeing or clicking on your Facebook
Ad. In combination with your ad
statistics like impressions and clicks,
conversion tracking will help you better
understand the value of your Facebook
ad campaign. You can find more
information in our Conversion Tracking
Guide

Create a YouTube page for your new company

 How is Brazil effected by:
 Crisis in Europe outlined earlier this semester?
 China-America issues outlined in last class?

 Why important for global entrepreneurs in Brazil
to be aware of this issue?

• “currencies either pegged to the dollar or more or less actively
managed against it (a group that includes Japan)”
 Oil Exporters
 Bahrain
 Oman
 Qatar
 Saudi Arabia
 UAE (Dubai included)
 China
 Japan
 Russia
 Singapore
 Taiwan
 Malaysia
 Hong Kong
 Thailand
 India
 Others: Ecuador, Panama, more…. Used to be Argentina!
Sources: figure 6.6 from Wolf “Fixing Global Finance”
And, Economist.com, May 23 2009, “Monetary Union in theGulf”

 Key point: there is NO “best” system
 It all depends on what you want to achieve…
 History: Cycle from Fixed to Flexible to Fixed
to Flexible……(future?)
1970’s –today:
Great Depression era since U.S. left the gold/dollar standard
Flexible Flexible

?????

Fixed Fixed
The gold standard (~1850–1914) Post WWII
Fixed exchange rates during the 1920s Bretton Woods / IMF system (1944–1971)

• Future… if crisis brought terrible volatility…
• Will we move toward era of FIXED FX?
▫ emerging markets DOLLARIZE?
▫ More countries to join the EURO?
▫ US / euro move to fixed?
▫ New Breton Woods?

• Or, move toward more flexibility?
▫ “Dollar Bloc” move toward flexibility?
▫ Europe abandon the Euro?

▫ Answer: no body knows what will happen, but HISTORY tells us
the CHANGE = the only CONSTANT!!

 At least one question on the exam will
come from this article


Challenge to students:
keep learning after the
class is done!!!

part 10: Global entrepreneurship class

part 10: Global entrepreneurship class

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part 10: Global entrepreneurship class