Fear of failure vs failure to start (part 2)

My apologies on announcing the winners of last week's Peter Farrell Cup. Official press release or announcement coming soon. In the meanwhile, I couldn't help building on the earlier blog post about fear of failure vs failure to start. It was nagging me to create this bubble chart based on the same GEM data with a few changes:

• Fear of failure and entrepreneurial intentions in the same chart as different axes
• Bubble area according to additional population data (since the GEM data is based at the individual level, not firm level) 
• Color coded by GEM's classification (Factor-driven economy: RED, Efficiency-driven economy: BLUE, Innovation-driven economy: YELLOW)

So, if one were to draw a linear regression line through the whole data set, then Australia would probably be middle of the road for the overall data. If you look at only the yellow bubbles (innovation-driven economies), then Australia tends to be towards the upper right, i.e., greater intentions to start (not bad), but higher fear of failure (not good). Does that mean that relative to the other innovation-driven economies, Australia is a country of "intentrepreneurs" or "wantrepreneurs"?

Blog posts coming up:

• Winners of the Peter Farrell Cup
• UNSW vs Australia in graduate exit surveys: Who is creating jobs (not just filling them)?

Don't forget, tonight (Wed 2 Nov) is our semi-annual Meet the Entrepreneur event, co-sponsored by E&Y. This event's theme will be State of Play - What are the myths and realities about the VC industry in Australia, how does it compare to the rest of the world, and does the quality of entrepreneurship and innovation in Australia "stack up"?

We are pleased to confirm Ernst & Young and RosesOnly as sponsors of the CIE. We would like to thank the Farrell Family Foundation and Gary Zamel for their generous donations. We also acknowlege the continuing support of the Australian School of Business. All of our sponsors help provide the means to host networking events, award prizes, and reimburse our suppliers and service providers. In exchange, these donors receive good karma and public recognition as supporters of innovation and entrepreneurship. To become a sponsor of CIE and support our community engagement activity, please contact us at cie@unsw.edu.au.

 

Fear of failure or failure to start?

There have been recent critiques about What's Killing Australian Innovation (see our commentary on a recent talk by ASB Dean Alec Cameron, and related ABC radio interview). At this week's TiECon Australia, TiE Sydney chapter president Dilip Rao commented that Australia is ranked 18th globally for having a 'fear of failure' (first being worst). Based on the GEM Global Report 2010, Australia actually shows up worse, ranked 16th out of 59 countries.While that sounds quite bad, the spread of the scores shows that Australia is nonetheless close to the average, and not that much different to, say, Germany (see figure below). The classic benchmark is the US, which is ranked 47, and still not close to being statistically significantly away from average (assuming a normal distribution).

Fear of Failure: Percentage of 18–64 age group with positive perceived opportunities who indicate that fear of failure would prevent them from setting up a business

Wait a second, but what's this other variable, called "Entrepreneurial Intention"? Well, it's defined as the "percentage of 18–64 age group (individuals involved in any stage of entrepreneurial activity excluded) who intend to start a business within three years" (p. 63 in the 2010 GEM report). Australia ranks poorly on this one as well (39/59) if you take the rankings at face value. Interestingly, the US ranks even lower than Australia here (44/59).

What the heck is going on?

My best guess, is that in some countries, entrepreneurship is not a choice, but a way of life. Almost everyone there has to hustle and bustle to feed their family. Meanwhile in the "Innovation-Driven Economies" it's an optional career choice. So, focusing on the latter, what do we see?

Well, Australia ranks 6/23 on the fear of failure measure, but still very close to average for the group (US ranks 20/23 in this group). Australia also ranks 7/23 on the entrepreneurial intention measure, again still very close to average for the group (US ranks 11 in this group, worse than Australia!).

=> Claims that Australia has a fear of failure are NOT supported by THIS data

So, what IS killing Australian Innovation? Come join the debate at the next Meet the Entrepreneur to find out!

Meet the Entrepreneur is our semi-annual speaker series which is co-sponsored and hosted by Ernst & Young at their Sydney CBD office. This professional networking event features a moderated panel discussion between industry experts on a chosen topic.  After the discussion, a Q&A session winds up the formal part of the evening. Hosted networking occurs both before and after the discussion.

This event's theme will be State of Play - What are the myths and realities about the VC industry in Australia, how does it compare to the rest of the world, and does the quality of entrepreneurship and innovation in Australia "stack up"? 

Does Australia have enough critical mass to be a world leader in innovation? Are we creative enough, do we have a big enough appetite for risk, or are we just gamblers? Come hear our panel of venture capitalists, innovators, and entrepreneurs discuss this topic guided by the expert moderation of noted journalist Valerie Khoo.

Yours truly,
The Centre for Innovation & Entrepreneurship


We are pleased to confirm Ernst & Young and RosesOnly as sponsors of the CIE. We would like to thank the Farrell Family Foundation and Gary Zamel for their generous donations. We also acknowlege the continuing support of the Australian School of Business. Their continued support helps provide the means to host networking events, award prizes, and reimburse our suppliers and service providers. In exchange, our sponsors receive good karma and public recognition as supporters of innovation and entrepreneurship. To become a sponsor of CIE and support our community engagement activity, please contact us at cie@unsw.edu.au.

Meet the Entrepreneur - CleanTech - AFTERWORD



Dr Marc Newson, Ernst & Young



Expertly moderated by Ernst & Young's Dr Marc Newson, the CIE's spring Meet the Entrepreneur event explored three innovative businesses in the rapidly-growing field of clean technology.

The panellists:

Guy Pross - Director, Business Development and Commercial Partnerships, Better Place Australia

Stone Wang - Managing Director, Artemis Building Systems

Matthew Warnken - Managing Director, Crucible Carbon

Guided by the themes of Economics, Scalability, and Convenience, the panel related some insights gained from their experiences in starting and building three very different businesses:

Better Place Australia is a global company dedicated to zero emissions driving through the delivery of services to enable confident adoption and use of electric vehicles (EVs). Better Place Australia will build and operate the infrastructure and systems to optimise energy access and use. By providing the infrastructure and services that make it easy, affordable and attractive for motorists to adopt and drive electric vehicles, Better Place will enable the mass adoption of EVs in Australia. (http://australia.betterplace.com/)



Guy Pross, Better Place Australia



Artemis Building Systems pty ltd (ABS) is a Building Integrated Photovoltaic (BIPV) specialist with design, supply and engineering capabilities in Australia and China. ABS provides innovative and responsible supply solutions for building-envelope sustainability such as integrated curtain wall and overhead glazing systems with conventional and high performance glass and claddings or can provide Building Integrated Photovoltaic (BPV) systems to suit particular design requirements. (http://www.artemisbs.com/)

Crucible Carbon's pyrolysis process is designed to produce biochar, biocrude oils and pyrolysis gas from a variety of biomass sources at low capital cost and high energy efficiency - the goal being to have technology that is scalable, replicable and financially viable in today's economic conditions. Pyrolysis has significant potential to reduce greenhouse gas emissions at a global 'wedge' level of carbon abatement through the production and land application of biochar, in addition to generating renewable energy. (http://www.cruciblecarbon.com/)

Matthew Warnken, Crucible Carbon

Stone Wang, Artemis Building Systems

 So, what did the panellists have to say about Economics, Scalability, and convenience? 

1. Australia is an excellent test market. It's our backyard and a convenient place to demonstrate proof of concept if you're looking to scale up for the US.
2. While it is generally inconvenient to be the first to try unproven technology, no one wants to be the last person with obsolete technology (i.e. a petrol-powered vehicle in an EV world).
3. Sure the early adopters will pay to be green, but ultimately the rest of the market wants and needs to know how their lives will be impacted - will they retain, or regain, more time and money for food, housing, medicine, education, family?
4. Where is the value? What's the IRR to the investor? What are the government money factors (corporate taxes and employment income that offset subsidies, tax breaks and grants)? These have to be clearly defined - and credible!
5. If you're depending on subsidies, this can get tricky as companies scale up by expanding to other regions. These days it's not enough to think less than globally.

And what's keeping the panellists up at night?

Given the rapid development of new technologies and regulations in clean technology, our panellists cited the following issues:

• The question of balance - do you hold out for perfection or make a prototype that's "good enough"?

• The problem of standardization - many emerging proto-standards can stretch resources too thin.

Join us for our next Meet The Entrepreneur, to take place in the early part of next year. The theme will be Open Innovation.

CIE Newsletter (Spring 2010 edition)

In this issue: :: Entrepreneur's Notebook :: Entrepreneurial Internship Program :: Entrepreneurs' Confidence Barometer :: Diploma in Innovation Management :: Upcoming Events   Welcome to CIE's emergence into the web2 era of communication! In addition to an updated homepage, we now have a more automatic way of subscribing to more frequent updates about news and events: Events: For real-time updates on new event announcements, please subscribe to the "events@cie" RSS feed or email service.  News: For real-time updates on all news, please subscribe to the "news@cie" RSS feed or email service. Since last April, the CIE has continued many of the existing programs with increasing momentum, and pursuing several new programs too. We also have a new Program Manager, Linda Glave, to help with the daily operations so Martin can dedicate a little more time to teaching and researching innovation and entrepreneurship in Australia.

Entrepreneur's Notebook Networks & Networking - Don't waste your time; invest it! by Dr Martin J Bliemel   Networks and networking are pretty hot topics these days. When exploring a new line of business, product, or market, networking is often a quick way to get rich feedback. I ran my own business consulting firm for a couple years, searched for clients and partners, and recently completed my PhD dissertation on the networks of entrepreneurs, so I feel the need to disseminate some of my observations. Setting aside my rant about the differences between networks, social networks, and online social networks, this column reviews two key things to consider before networking: ·   Is this the right network for me? ·   How should I use the opportunity to network? Which network is the right one? Networks (and organizations that facilitate networking events; example) range along a variety of variables. Some are more durable, and others more trendy. Some are more like a market, and others more like a clique. If you are prospecting for customers, why would you spend your time at an industry conference among all your competitors? If your business is relationships based, why would you network at conferences instead of pursuing individual referrals from your existing network? If you are looking to increase sales and want to 'spread the word', then yes, a shotgun approach to networking might be the best one. That might be by handing out more business cards than Darcy Rezac, through to blasting the news out there with all the new social media platforms. However, if you are looking for that needle in the haystack, and can clearly describe that needle to others, a more targeted search is more applicable. With a more targeted approach, you should approach specific people (for specific referrals). Social media platforms can still help, but work better if you prequalify who you contact, and address them directly. Just think of the last time you felt personally compelled to reply back to a "Dear Subscriber" message (ironic that this column should start that way, I know);, asking for something specific, other than selling you a product or service. Learn to think twice about which networking events to go to, and how to leverage them to your advantage (my second point, below). How to network For beginners, networking feels awkward at first, but can quickly become second nature. The basics include (i) having a business card, (ii) offering it somewhere toward the middle or end of your elevator pitch so it doesn't appear like you're liberally giving cards away, (iii) handing it over in a way that can be read easily (e.g. with two hands, card face up and oriented the right way), and (iv) respectfully reading the other person's card. The point I would like to emphasize here though is the elevator pitch. In particular I often see two areas in which networkers fall short of their potential: explicitly stating what value they provide, and what they are looking for. Regarding the value proposition, in addition to clearly stating your name, role, and who you work for, never assume people are familiar with the company or can extrapolate what services the company provides. Don't leave them guessing, and provide a simple, concise example of who a typical (or ideal) client looks like, and how you improve their business/life. A personal story of the impact you have on their business/life is way better than numbing statistics of how many products you sell and how many customers you have. Regarding what you are looking for, everyone is obviously looking for opportunities. Opportunities are ubiquitous, idiosyncratic and ambiguous. The first implication of your networking is that you are looking to drum up business. If however, you have other needs, it is perfectly ok to admit you are growing your business and looking for help. People have a natural tendency to help, IF they know they can and it does not come at a major cost to them. For example, after your elevator pitch, you might invite the other person to assist you in finding a better recruiting agency, or providing you a direct referral to a potential employee. Don't overwhelm them and ask for them to help you with all aspects of your business, just show a little humility and ask for ideas relating to a currently important or urgent issue you are dealing with. You may not get what you ask for, but you also don't get what you don't ask for. 3rd Year for the Entrepreneurial Internship Program   The Meet-and-Match event for CIE's Entrepreneurial Internship Program was our biggest ever!  A "short"-list of 30 Honour's and Dean's List students competed for 12 spots with our industry partners.  But then, the partner companies were so blown away with the quality of students that 5 additional positions were created and offered on the spot! This year's partners are: Anittel Atlassian BMDI Healthcare Homestar Finance IPScape NICTA Pet Barn ResMed Telcoinabox Our congratulations to the students and to our partners for their efforts, and we can't wait to see the reports and posters at the March Wrap-Up event!  Entrepreneurs' Confidence Barometer  Entrepreneurs lead the way back to growth   A recent survey of the Ernst & Young Entrepreneur Of The Year alumni has found that 74% of respondents defied the market and grew their businesses in 2009, with 60% expecting to achieve double digit growth in calendar 2010. The Ernst & Young survey found that the respondents - some of Australia's most successful entrepreneurs - are increasingly confident about their business growth prospects, with 72% confident about the Australian economy in 2010 and 67% believing the availability of capital will improve in 2011. Seventy one percent expect to employ more people in the next 12 months, 62% plan to raise funds in the next 12 months and 68% plan to expand operations overseas. In addition, the entrepreneurs surveyed overwhelmingly agreed that passion, determination and vision are the key ingredients for success, with 80% believing that this has not changed in the past 10 years and will not change in the future. The survey respondents had started on average four businesses each, creating their first business at the average age of 25 and were motivated primarily by the desire to create a business, with wealth creation as a secondary driver. These are a few of the many findings contained in the 2010 Entrepreneurs' Confidence Barometer, a survey conducted to mark the 10th anniversary of the Entrepreneur Of The Year program in Australia. Ernst & Young partner Greg Logue says the responses illustrate that successful entrepreneurs are more than simply higher achievers. "They are the ones who seek out opportunities and turn their vision into reality, creating a flow-on success for those around them through employment, export growth and social contributions," says Logue. "The confidence and focus of these entrepreneurs is both inspiring and heartening - these are the people who continue to drive the economy forward and create the future." The survey findings also suggest that there is a greater appreciation of the contribution entrepreneurs make to our economy and communities. Fifty six percent of respondents believe the Australian culture supports entrepreneurship - a significant shift in attitude compared to a similar 2004 survey that found that only 38% of respondents held the same view. Diploma in Innovation Management  Now open to ALL UNSW undergraduate students!   The Diploma in Innovation Management has been successfully migrated from the Faculty of Science to the Australian School of Business. The Diploma is a unique undergraduate offering that is open to students of any Faculty, AND is taught by academics from various faculties, further supplemented by presentations and lectures from industry experts and government officials. Course material covers areas such as creativity in enterprises, business principles, business planning for new ventures, funding, management and commercialisation of intellectual property, and valuation and assessment of innovative businesses. Students engage in exercises to set up and run their own new ventures and participate in case studies with Australian and international entrepreneurs. The lectures, workshops, case studies and tutorials in each of the program's courses are delivered by a well-balanced mixture of university academics and expert industry and government professionals. Upcoming Events Meet the Entrepreneur: Ernst & Young   When:    Thursday 23 September Meet the Entrepreneur is a semi-annual event; this session's topic is CleanTech, and will be moderated by Dr Marc Newson, Partner Oceania Cleantech Leader, Ernst & Young. Click here to register by Thursday, 16 September Peter Farrell Cup - NEW website!! www.pfcup.com.au  The Peter Farrell Cup provides students with the opportunity to bring their innovative business idea to life by pitching to a panel of experts from the Sydney entrepreneurial community.  The competition is open to teams containing at least one currently-enrolled UNSW student.  Teams submit a business plan and finalists are selected to pitch their ideas live to the judging panel. Want to team up with a student to help you represent in the competition? Meet-Mix-Match Event - Tues 21 Sept Click here for details. Entrepreneur of the Year Award Join us to celebrate the 10th anniversary of the Ernst & Young Entrepreneur Of The Year program in Australia!  This is the world's most prestigious business award for entrepreneurs and celebrates building and leading successful, growing and dynamic businesses, recognising them through regional, national and global awards programs in more than 135 cities in 50 countries.  Over the last decade, Ernst & Young has recognised the achievements of over 800 extraordinary business leaders in this country. Click here for details.

Sponsors We are currently seeking sponsors for Diploma Scholarships, internship opportunities, and the Peter Farrell Cup. If you are interested in being associated with these innovative initiatives in our newsletters, press releases, website, and at the event, please contact us. Sponsorship may be in the form of general sponsorship for the event (cash or in-kind), or by sponsoring a student intern at your organization. We are pleased to confirm AusIndustry, Ernst & Young, NewSouth Innovations and RosesOnly as sponsors of the CIE.  Likewise, we would like to thank Peter Farrell and Gary Zamel for their generous donations. Their continued support helps provide the means to host networking events, award prizes, and reimburse our suppliers and service providers. In exchange, our sponsors receive good karma and public recognition as supporters of innovation and entrepreneurship. If your firm is keen to engage with UNSW students, faculty and alumni, and our members from industry, please contact us.

CIE and Ernst & Young present Meet the Entrepreneur: CleanTech

(updated 25 Aug)

<register here>

When

Thursday September 23, 2010 at 5:30 PM for a 6 PM start

Add to my calendar!

 

Where

Ernst & Young Sydney
680 George Street
Level 33
Sydney 2000
Australia 

Details
Hosted by Ernst & Young and Dr Martin Bliemel, Director of the CIE at the Australian School of Business, Meet the Entrepreneur is a moderated panel discussion followed by a lively Q&A session  This is an excellent opportunity for entrepreneurially-minded individuals to learn from leaders in the field. 

At this event, the Australia-Israel Chamber of Commerce will also be releasing the latest version of the Australia and New Zealand Cleantech portal, supported by
Austrade, Ernst & Young and Industry & Investment NSW.

The panel members for this event are leaders in the Cleantech space and will bring to life the challenges they experienced in moving from a technology to a product, securing finance at different stages, evolving their business models, and finding and working with corporate partners.

This session will be moderated by Dr Marc Newson, Partner and Oceania Cleantech Leader, Ernst & Young. 

Meet the panel:

Stone Wang - Managing Director, Artemis Building Systems.  Stone is an engineer turned business leader with over 20 years experience working as a senior executive for Fortune 500 companies in Australia, Hong Kong and China, including BHP and Corus. Using his cross-cultural expertise, Stone has successfully established a manufacturing base and distribution network in China for Australian and European companies. Fluent in English, Mandarin and Cantonese, he has negotiated joint ventures in China, Hong Kong and the USA.  Artemis Building Systems pty ltd (ABS) is a Building Intergraded Photovoltaic (BIPV) specialist with design, supply and engineering capabilities in Australia and China.   ABS has won the contracts for supplying the services and materials to several prestige projects, such as Sydney Town Hall, TAFE NSW Yallah Campus. 

 Mathew Warnken -  Chief Executive Officer, Crucible Carbon, has a thorough understanding of the waste and resource recovery industry, including policy issues, industry trends, market pressures, business drivers, NGO sector issues and carbon implications (climate change, carbon credits and carbon trading). Matthew is a well regarded analyst and presenter and is also a columnist for environmental management news.  

 Guy Pross - Director, Business Development and Commercial Partnerships, Better Place Australia.  Reporting directly to the Chief Commercial Officer, Mr. Pross is responsible for a range of major projects within the Information Management and Development of Corporate/Government Partnerships. In his previous role, Mr. Pross headed up the Trade Division of the Australia-Israel Chamber of Commerce with a focus on developing the bi-lateral relations between Australia and Israel. He has worked extensively in a range of public policy, business development and marketing roles including roles at Accor Asia Pacific group focused on their deployment across Australia and Asia and a position held at the office of former Israeli Minister and head of the Israeli Security Services, Ret. Admiral Ami Aylaon.

Meet the Moderator:

Dr Marc Newson - Partner and Oceania CleanTech Leader, Ernst & Young.  Marc joined the Ernst & Young partnership in 2008. Prior to this he spent 12 years in product development in the professional services industry. He has facilitated the response to a number of regulatory and economic reform programs including the ASX corporate governance guidelines on behalf of the Business Council of Australia, and the Company Law and Economic Reform Program (CLERP) for the Institute of Chartered Accountants.  Since 1992 Marc has been accumulating practical experiences from the US, South Korea, UK and Australia in the business response to environmental issues and emerging environmental markets.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

If you have any questions about the event or how to register, please contact the CIE (info below).  Thank you  for your attention and we look forward to seeing you at Meet the Entrepreneur!

 Sincerely,

Centre for Innovation & Entrepreneurship
cie@unsw.edu.au
+61 2 9385 9730

Ernst & Young is global leader in assurance, tax, transaction and advisory services. Worldwide, our 144,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.   Ernst & Young is a proud sponsor of the Centre for Innovation & Entrepreneurship.

The CIE is located in the School of Strategy and Entrepreneurship at the Australian School of Business (ASB).  Its principal ambitions are to improve the quality of innovative thinking in Australia, and to stimulate entrepreneurial skills in students, faculty members, UNSW alumni and the general entrepreneurial public. For more information please visit cie@unsw.edu.au

<register here>

Meet the Entrepreneur

The Centre for Innovation and Entreprenuership (www.cie.unsw.edu.au) is running another Meet the Entrepreneur event, sponsored by Ernst & Young. The target audience includes people related to the start-up community in the greater Sydney area, including entrepreneurs, investors, government grant administrators, etc.

Topic: From concept to commercial reality

Are you interested in starting up a technology business? If you want it to be successful, learn from those who already are. Our panel members are leaders in this field and will provide guests an insight on their entrepreneurial approach and how to navigate through the commercialisation process, including securing funding and grants.

Learn about their experiences of commercialising early stage technology businesses and receive practical advice, followed by a facilitated question and answer session.

Meet the panel

The success story: Damian Kay, Founder, Telcoinabox. From a conversation in the lift, telcoinabox has become a leader in the telecommunications industry, with an annual growth rate of over 180%.
The technology commercialisation hub: Hamish Hawthorn, CEO, ATP Innovations. ATP is a collaboration between four of Australia’s top universities, providing value-added services to accelerate growth of early stage technology businesses.

Date: Thursday, 20th May 2010
Time: 5:30 for 6pm Start, Until 8pm
Location: 680 George Street, Ernst & Young Sydney City Offices
Register: Please click here to register by Thursday 13 May