Entrepreneurship

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Judith ConeVice President - Entrepreneurship
Danish Ministry of Economic and Business Affairs

• Entrepreneurship
• Makes a Difference

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From the Industrial Triangle to the
Entrepreneurial Theater
Personal Savings Angel Investing Venture Capital
Stockholders Investments Corporate Debt
Start-ups Entrepreneurial Companies
Corporate Transformation
Established Large-scale Firms
Tech Transfer Process
Industry / Government Contracting
Universities
Government / University Collaboration
Government
Industry/Government Contracts Foundation
Grants Tuition Endowment Income Gifts
Taxes
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• The Kauffman Foundation
• Who are we?
• What we do?
• How we do it?
• Results

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Ewing Marion Kauffman Foundation

• Founded by Ewing Kauffman, successful
  entrepreneur in Kansas City, Missouri USA
• 1.9 billion in total assets (US)
• Granting 90 Million per year to U.S. NGOs and
  educational institutions

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The Kauffman Foundation Agenda
The Foundation

• Economically independent individuals who are
  engaged citizens, contributing to the improvement
  of their communities.
• By advancing
• Educational achievement
• Entrepreneurial success

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www.kauffman.org
The Foundation
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The Foundation
Messages

• Entrepreneurship is critical to economic well
  being
• Publicize the work of our grantees and partners

Methods

• Think of entrepreneurship as our product and
  promote it
• Inhouse Communication Team working with leading
  communication firms.
• Work with Public Forum Institute to publish a
  weekly newsletter called National Dialogue on
  Entrepreneurship
• Publish Thoughbooks
• Foundation newsletter
• Sponsor NPR Radio
• Serve as resource to business press and television

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Results
The Foundation

• Millions around the world access our resources
• Research
• Programs
• Staff
• Major corporations partner with us
• The U.S. government works with us on policy and
  programs
• Business press see us as credible source
• Wall Street Journal, Fortune, Business Week,
  Inc., New York Times, CNN.
• Other governments seek our advice

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A Continuum Toward An Entrepreneurial Economy
Value / Meaning
Researching Entrepreneurship
Innovation
Intellectual Capital
Entrepreneurship
Entrepreneurial Activity (Know How and
Resources)
Entrepreneurial Growth (Know How and Resources)
Ideas, Discoveries Inventions New Knowledge
Research Creativity Exploration
Entrepreneurial Economy
Conducive / Supportive Environment Knowledge
Sharing
Jobs Wealth Economic Independence Higher Standard
of Living
Alliances
Government
Industry
NGOs, Universities
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Researching Entrepreneurship
Researching Entrepreneurship
Entrepreneurial Growth (Know How and Resouces)
Entrepreneurial Activity (Know How and
Resources)
Research Creativity Exploration
Ideas, Discoveries Inventions New Knowledge
Entrepreneurial Capitalism
Conducive / Supportive Environment Knowledge
Sharing

• Critical to understand entrepreneurship
• Must have top tier researchers studying it
• Faculty development is important

Messages
Methods

• Fund research and dissertations
• Provide data sets
• Publish and publicize key studies
• Be available to talk with business press
• Use the Web to create a community of researchers

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Researching Entrepreneurship

• Standard measures and data sources
• Bureau of Economic Research, RAND Corp, Other
  Faculty, Panel Studies
• Entrepreneurial Index working with Denmark
  researchers
• Research projects Examples New York University
  University of California-Berkeley Univeristy of
  Chicago University of Illinois Harvard
  Princeton, University of North Carolina,
  Northwestern and many others.
• Seeking proposals on the intersections between
  entrepreneurship and other fields

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Researching Entrepreneurship

• Funded nearly 100 dissertations in
  entrepreneurship and/or in the intersection of
  entrepreneurship and another subject, such as
  engineering
• Studying technology transfer and the innovation
  process
• Discovering and creating bibliography

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The Ewing Marion Kauffman Prize Medal for
Distinguished Research in
Entrepreneurship
Researching Entrepreneurship
Medal depicts Joseph Schumpeter and Maximilian
Weber
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Researching Entrepreneurship
Web Portal for Researchers www.kauffman.org/resear
ch
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Results
Researching Entrepreneurship

• Hundreds of researchers throughout universities
  have studied entrepreneurship for 13 years
  resulting in a greater understanding of the
  phenomenon, better policies.
• New faculty developed
• Faculty now exposed to entrepreneurship that
  leads them to consider their own new knowledge
  and its market potential
• Emerging as a respected, field of study on
  campuses

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ContactBob Litan blitan_at_kauffman.orgBob
Strom rstrom_at_kauffman.org
Researching Entrepreneurship
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Advancing Innovation (Technology Transfer)
Messages

• Universities are incubators of new knowledge
• Faculty lack understanding of commercialization
  process
• Policies, regulations, and investment can impede
  rather than promote commercialization

Methods

• Study the situation
• Work with top funding agencies (NIH, NSF)
• Bring public attention to the issues
• Build a culture of innovation
• Social networks
• Fund best practices such as Innovation Hubs
• Rules and regulations promote deal flow
• Create a tool to increase knowledge sharing

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Current State of U.S. University Innovation
Process
End Run
University A
Tech TransferOffice Evaluate Patent Develop
Research Funding
End Run
New Knowledge
Commercial Market
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Advancing Innovation
Best of Intentions

• Environment to empower innovation is flawed
• Under-supported
• IP ownerships an issue
• Patenting system problematic
• Commercially unfriendly
• Lack of faculty understanding
• Limited success

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Advancing Innovation
Top Ten U.S. UniversitiesLicensing Income
1999-2000

• University of California San Francisco
• Columbia University
• Florida State University
• Stanford University
• Dartmouth College
• University of Washington
• Michigan State University
• Massachusetts Institute of Technology
• University of Florida
• University of Wisconsin

Source AUTM Technology Transfer Data
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Advancing Innovation
Common Elements Top Ten U.S. Universities

• A few big hits
• Correlation between deal flow and income
• Culture
• Continuity of deal flow tied to
• experience of innovators
• expertise of Technology Transfer Office
• supportive faculty culture
• institutional location
• social networks and resources

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Advancing Innovation
Building Collaborations and Social Networks

• Kauffman Campuses Initiative
• Innovation Hubs
• LARTA
• Midwest Innovation Hub - Wash U/St. Louis/UIUC
• iBridge Online System

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Advancing Innovation
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Advancing Innovation

• Results
• Greater understanding that
• a culture of innovation is needed
• focus on the flow of new knowledge to the
  marketplace rather than on revenue as an endpoint
• Develop or source capabilities to support
  innovators
• Create collaborations rather than trying to build
  all needed resources within the college or
  university
• Policies must support the endpoint
• Created an electronic marketplace for ideas
  (still in pilot stage)

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ContactLesa Mitchell lmitchell_at_kauffman.orgKe
n Lynn klynn_at_kauffman.org
Advancing Innovation
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EntrepreneurialActivity and Growth
Researching Entrepreneurship
Entrepreneurial Growth (Know How and Resouces)
Entrepreneurial Activity (Know How and
Resources)
Ideas, Discoveries Invention
Entrepreneurial Capitalism
Research
Conducive / Supportive Environment Knowledge
Sharing
Know How and Resources
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• The Birth of an Entrepreneur

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The Birth of an Entrepreneur

• Express your creativity
• Make something happen
• Make a difference in the world
• Take charge of your life
• Make a job rather than take a job

Messages
Methods

• Build awareness
• Curriculum in school experiential learning
• Exposure to role models
• Out of school connect to fun activities
• Partner with corporations who know how to reach
  young people

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The Birth of an Entrepreneur
In School Curriculum for Kindergarden-High School

• Mini Society, Making a Job, New Youth
  Entrepreneur
• Work with school clubs
• Summer internship for students

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The Birth of an Entrepreneur Out of School
Activities Using the Media, Games, and Activities
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The Birth of an Entrepreneur
Disney World Orlando Florida Epcot Center
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Results
The Birth of an Entrepreneur

• Millions of young people have
• Heard the message of entrepreneurship.
• Studied entrepreneurship in school and clubs.
• Played Hot Shot Business Game on Disney and
  attended Epcot Center
• Most popular game on disney.com
• Won Parents Choice Award and other awards
• 7 out of 10 children and youth in U.S. say they
  are interested in starting a business according
  in a Harris Poll.

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ContactCraig Armstrong carmstrong_at_kauffman.org
The Birth of an Entrepreneur
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• The Youth of an Entrepreneur

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The Youth of an Entrepreneur

• Understand the importance of entrepreneurship
• Think and act entrepreneurially
• Know how to create an enterprise that generates
  value

Messages
Methods

• Fund entrepreneurship education courses
• - 2,000 colleges universities offering at
  least one
• course (300 programs)
• - Kauffmans Investment of 100M 1,100 grants
• over 13 years
• Promote cross-campus entrepreneurship education
• Fund faculty development, research and curriculum
• Create a knowledge community of educators

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Entrepreneurship Education inColleges and
Universities
The Youth of An Entrepreneur

• Enfranchising every student
• The Kauffman Campus Initiative
• 25 million to 8 campuses
• Evaluation by Mathematica Corporation, 11 year
  study
• Required top Administration support
• Provides incentives for faculty to embed
  entrepreneurship in their courses

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The Youth of an Entrepreneur
The Kauffman Campus Initiative Schools

• Florida International University
• Howard University
• University of Illinois at Urbana-Champaign
• University of North Carolina at Chapel Hill

• University of Rochester
• University of Texas - El Paso
• Wake Forest University
• Washington University in St. Louis

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The Youth of an Entrepreneur
Kauffman Panel on Entrepreneurship in Higher
Education

• Panel Chair Rich Newton, Dean of Engineering,
  Univ. California-Berkeley
• Purpose Conduct a year long exploration into the
  nature of cross-campus entrepreneurship
  education. The Panel will convene groups around
  the country to address questions such as
• What is to be taught?
• By whom?
• In what manner?
• Issue recommendations, models, frameworks.

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The Youth of an Entrepreneur

• Results
• First year results are encouraging
• Courses in 87 different subjects
• Faculty teaching entrepreneurship for first time
• Administrators are supporting it
• Students are signing up in record numbers
• More to do
• University regulations still are impediment for
  interdisciplinary studies
• Tenure and promotions not tied to work in
  entrepreneurship
• Faculty need more help
• Only 8 schools in program

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ContactPaul Magelli paulmagelli_at_kauffman.orgJ
udith Cone jcone_at_kauffman.org
The Youth of an Entrepreneur
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• The Mature Entrepreneur

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The Mature Entrepreneur
Messages

• Awareness and encouragement that you can start a
  business
• Support for entrepreneurs through the
  entrepreneurial process with special focus on
  those who want to/are building innovative, growth
  companies

Methods

• Educational programs delivered via the Web and
  through support organizations
• Helping women and minorities grow their companies
• Working with capital suppliers
• Encouraging successful entrepreneurs to give back
  to entrepreneurship

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The Mature Entrepreneur
Educational Resource for Support Groups

• Practical, hands-on combined with theory
• Training the experienced entrepreneur to share
  knowledge and lead other entrepreneurs
• Facilitation skills
• Adult learning techniques
• National network of over 300 partners
• Brand recognized

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Women and Minority Entrepreneurship
The Mature Entrepreneur

• Research report by Bush, Carter, Gatewood,
  Greene, Hart
• Gatekeepers of Venture Growth The Role and
  Participation of Women in the Venture Capital
  Industry
• Springboard Program for Growth-Oriented Women
• Urban Entrepreneur Partnership
• National Urban League
• Business Round Table
• Kauffman Foundation
• White House
• Research
• The Entrepreneur Next Door
• Minorities and Venture Capital A New Wave in
  American Business

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The Mature Entrepreneur
Entrepreneurial Activity (Know How and
Resources)
Ideas, Discoveries Invention
Entrepreneurial Capitalism
Entrepreneurial Growth
Research
Conducive / Supportive Environment
Conducive / Supportive Environment Understanding
Entrepreneurship Knowledge Sharing

• Access to Capital
• Kauffman Fellows Program
• Association of Angel Groups

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The Mature Entrepreneur
Kauffman Fellows Program
Enhancing the Human Investment in the Venture
Capital Process Globally
Female
Female
6
25
Male
Male
Male
94
75
94
Fellows Classes 1 - 8
VC Industry
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The Mature Entrepreneur
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The Mature Entrepreneur
Results

• 53 Fellows investing in 325 companies that
  created
• 33,000 jobs
• 86 billion revenues
• 66 successful acquisitions
• 23 IPOs
• 33 deals syndicated with other Fellows
• 70 investments in minority or women-led
  businesses
• 734 mentors advised
• 240 Board positions held

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Access to Capital
The Mature Entrepreneur

• Angel investing
• Angel Capital Association
• Seminar on the Power of Angel Investors
• Guidebook for Angels Angel Investment Groups,
  Networks and Funds A Guidebook to Developing the
  Right Angel Organization for Your Community

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Kauffman National Angel Network
The Mature Entrepreneur
Association of Angel Groups
Member Locations Provisional Member
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The Mature Entrepreneur
Giving Back to Entrepreneurship
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Results
The Foundation

• More than 150,000 people have learned key
  business skills through the FastTrac intensive
  education program
• Millions have used the Web site for entrepreneurs
  which is among the top 10 most popular business
  sites
• Venture capital has new and different leaders
• Angels now investing in groups and groups are
  investing in a more professional manner
• More women and minorities are growing their
  businesses.
• Entrepreneurs are donating to entrepreneurship

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FastTrac Growth Entrepreneurs Web
PortalStefanie Weaver sweaver_at_kauffman.orgWom
en Maggie Kenefake mkenefake_at_kauffman.orgMinori
ty Daryl Williams dwilliams_at_kauffman.orgGiving
Back Marianne Hudson mhudson_at_kauffman.org
The Mature Entrepreneur
Contact
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Catalyze an Entrepreneurial Economy