Why do certain cities and communities create more entrepreneurs than others? What makes some companies more successful than others? Are there common ingredients that make for better entrepreneurship and success within both cities and companies? Haskayne School of Business researchers delve into their research to answer these and other related questions. Jim Dewald, dean, and Seok-Woo Kwon, associate professor, share their findings on what puts some cities and companies on the path to success and greatness while others languish or fail.

1. Ingredients for entrepreneurial
success
Jim Dewald, Dean, Haskayne School of Business
Seok-Woo Kwon, Associate Professor of
Entrepreneurship, Haskayne School of Business
January 12, 2017

2. Welcome
 Webinar series by University of Calgary scholars
 Information presented is a summary of the
scholars’ research
 Please submit questions throughout the duration of
the webinar
 Keep the conversation live on Twitter during the
webinar using #exploreUCalgary

3. Seok-Woo Kwon
 Associate Professor of Entrepreneurship
at the University of Calgary
 Taught at the University of Kentucky,
University of California, and Temple
University
 Education: PhD from the University of
Southern California
 Research on entrepreneurship from a
social capital perspective

4. Jim Dewald
 Dean, Haskayne School of Business
 Associate Professor of Strategy and Global
Management
 Held several senior executive positions,
including President & CEO of Hopewell
Residential Communities
 Serves on the boards of Boardwalk
Communities, the West Campus
Development Corporation, CPA Alberta,
Junior Achievement Southern Alberta, the
Real Estate Development Institute, and
Innovate Calgary
 Written two books, two book chapters, over
20 academic papers, and over 50 newspaper
articles

5. Technology
Personal Travel
Air Travel
Home Heating
Home Plumbing
Personal
Communication
Media
Manufacturing
Late 1800’s
Horse and Carriage
Non-existent
Wood Stove
Outhouse
Telegraph
Newspaper
Job-based
1960’s
Private Auto
Boeing 737
Forced Air Furnace
Municipal Services
Telephone (land line)
Newspaper and Television
Assembly Line
Today
Private Auto
Boeing 737
Forced Air Furnace
Municipal Services
Telephone (cellular, email,
texting, etc.)
Newspaper, Television,
Internet, and Social Media
Automated Assembly Line
Photo credit: Marci Plank, 2011; NetCarShow, 2015; HD Wallpapers, 2015
Pace of change

6. Change for someone born before IR 2.0
Nellie McClung (1873-1951)
 Nellie McClung was a
women’s rights activist,
legislator and author who is
best known for her
involvement in the Persons
Case.
 Consider the changes over
her life time.
http://www.thecanadianencyclopedia.ca/en/article/nellie-letitia-mcclung/

7. She grew up in a world of horses for travel,
candles for light, salting and canning for food
preservation, and telegraphs for
communication.

8. “The world of her passing had cars and airplanes,
electric light and refrigerators, telephones, radio,
and motion pictures…”

9. “we find ourselves wondering why our present
progress seems so paltry in comparison.”
Mark Huberty, 2015
Berkeley Professor
“we were promised flying cars and instead what
we got was 140 characters.”
Peter Thiel, 2011
Co-Founder, PayPal

10. “General Purpose Technologies are pervasive technologies
that provide an inventive platform that will interrupt and
accelerate the normal march of economic progress”
Brynjolfsson and McAfee, 2012
Wheel, 3500 BC
Mesopotamia
Printing Press, 1440
Johannes Gutenburg
Light Bulb,
1879
Thomas
Edison
Telephone,
1876
Alexander
Graham Bell
Internal
Combustion
Engine, 1879
Karl Benz
Technology is the foundation of
change
Industrial
Revolution 2.0
The Industrial
Revolution
Steam Engine, 1775
James Watt
Cotton Gin, 1793
Eli Whitney

11. Computer (IR3?)
Principle 1: Constricted Vision (Scientific Paradigms and Framing)

12. Computer
This is why popular theory
focused on ‘bells and whistles’,
or ‘faster, smaller, cheaper’.
The period when Modern
Management Theory was
developed.
Principle 2: Narrow Theoretical Lens (e.g. Management Theory)

13. With Principles 1 & 2 in play, one has to
wonder? How do we ready ourselves for
the next shift?
Photo credit: RemedyTip, 2015; Annapolis Valley Regional Library, 2015; Sott, 2015; Telco Motion, 2014; Yale Scientific, 2012; The Breakthrough, 2015

14. Economists are entering a new
debate
Do we take bold
leaps into the
future?
Or, we will
continue to
resist change?
Robert Gordon
Northwestern
Erik Brynjolfsson
MIT Sloan

15.  The truth is, we don’t know what the future holds for us.
 We don’t know the challenges our students will face in the
future – a future destined to be unlike other times.
 If we don’t understand the challenges, how can we give
them the answers? We can’t.
 But, we can teach HOW to tackle unknown problems.
 One way is to teach both couple critical thinking AND
entrepreneurial thinking.

16. Entrepreneurial thinking

17. Conventional view of the firm
Dewald, J (2016), “Achieving Longevity: How Great Firms Prosper Through Entrepreneurial Thinking”, University of Toronto Press

18. Firms survival (data from 1994
to 2014)
“Even the most successful companies are only two years from possible failure”
Mac Van Wielingen
Bureau of Labor Statistics Glossary, accessed on January 1, 2015 at http://www.bls.gov/bls/glossary.htm.

19. Strategy and entrepreneurship
Dewald, J (2016), “Achieving Longevity: How Great Firms Prosper Through Entrepreneurial Thinking”, University of Toronto Press
https://www.pinterest.com/pin/104568022571054384/ http://www.orau.org/ptp/collection/surveymeters/cs40A.htm http://pshfes.org/event-1851047

20. The three principles of
agility/longevity
Entrepreneurial
Culture
Opportunity
Recognition
Constrained
Resources
- A clear narrative across the firm
- Appreciation of failure and success
- Rewards for learning
- Discover and create
- Not limited in exclusive “clubs”
- The use of process
- Effectuation – pre-supposed ‘means’
- Bricolage – pre-supposed ‘end’
Dewald, J (2016), “Achieving Longevity: How Great Firms Prosper Through Entrepreneurial Thinking”, University of Toronto Press

21. Evidence supports entrepreneurial
thinking
Name Est. Original Business Evolving Comment
Honda 1946 Motorcycles Robotics Honda will pursue anything with an engine
Hasbro 1923 Textiles Toys Pencil cases led to Mr. Potato Head
IBM 1911 Tabulating &
Recording
Consulting Multiple changes to core business
Nucor 1905 Auto
Manufacturing
Steel Twice filed for bankruptcy and had multiple
business changes
3M 1902 Mining Adhesives &
Cleaning
Shifted from mining to sandpaper to
adhesives
Nokia 1865 Pulp, rubber,
cable
Mobile Phones Microsoft purchased Nokia Mobile in 2013,
and they continue their search for new
entrepreneurial endeavours.
DuPont 1802 Gun powder Polymer Adhesives,
insecticides, fire
extinguishers, etc.
A legacy of innovation and entrepreneurial
thinking
Dewald, J (2016), “Achieving Longevity: How Great Firms Prosper Through Entrepreneurial Thinking”, University of Toronto Press

22. Takeaways
 Start small – strive to adopt an entrepreneurial
culture in one part of your business
 Get an idea – use process, not expectations of
brilliance, to find an opportunity to pursue
 Commit – use either bricolage (vision without
means) or effectuation (invention without vision) to
move forward

23. Social capital & entrepreneurship
Seok-Woo Kwon

24. Best places for entrepreneurs

25. Entrepreneurship and job growth
 The U.S.
• Since 1980, without startups,
net job creation is negative (a 2011
report from the Kauffman Foundation)
 Japan
• Companies created before 1996
shed a 3.1 million jobs
• Companies created after 1996
add 1.2 million new jobs (Forbes, March 17,
2014)

26. 2016 Entrepreneurial city rankings
From Canadian Federation Of Independent Business

27. Resources for entrepreneurs
Financial capital
Human capital
Physical capital

28. Social capital?

29. What is social capital?
The benefits drawn from social networks or
relationships

30. History of the social capital concept
 Old concept introduced as early as 1916

31. The decline of social capital

32. Social capital matters
 Families and youth
behavior problems
 Crime and violence
 Schools and education
 Public health
 Democracy

33. Social capital on entrepreneurship
Social capital in
nations &
cities

34. Poll
Do you think there would be, in
the next 6 months, good
opportunities for starting a
business in the area where you
live?
Yes or No

35. Perceived opportunities in Canada
from Global Entrepreneurship Monitor

36. Perceived opportunities
from Global Entrepreneurship Monitor

37. Components of social capital
 Residents’ levels of
general trust
 Residents’
voluntary
organization
membership

38. Poll
Do you think most people can be
trusted?
Yes or No

39. Can most people be trusted?
from World Values Survey Wave 5: 2005-2009

40. Plot of predicted probabilities (with 95%
confidence interval) of entrepreneurial
opportunity perception for generalized trust
.1.2.3.4.5
0 20 40 60 80
The percentage of individuals who believe that others can be trusted

41. Interpersonal trust General trust
Can you trust
her/him/them?
Can you trust most
people?
Two types of trust

42. Interpersonal trust General trust
Can you trust
her/him/them?
Can you trust most
people?
Depends on the
trustworthiness of
specific
individuals/groups
Depend on your opinion
about the
trustworthiness of the
“average” person/group
Two types of trust

43. Interpersonal trust General trust
Can you trust
her/him/them?
Can you trust most
people?
Depends on the
trustworthiness of
specific
individuals/groups
Depend on your opinion
about the
trustworthiness of the
“average” person/group
Critical at interpersonal
level
Critical at societal- and
community-level
Two types of trust

44. Interpersonal
trust
Low general trust High general trust

45. Have you invested in a new
business?
In the past 3 years, have you personally
provided funds for a new business started by
someone else?
If yes, what was your relationship with the
person that received your most recent
personal investment?
1. close family member
2. some other relative, kin, or blood relation
3. a friend or neighbour
4. a work colleague
5. a stranger with a good business idea

46. Have you invested in a new
business?

47. 0
.25
.5
0 20 40 60 80
Generalized trust
Close family member Some other relative
Friend or neighbor Work colleague
Stranger with a good business idea
Probabilities of weak tie
investment
Note: The vertical line marks the
average value of generalized trust in
the sample.

48. Components of social capital
 Residents’ levels of
general trust
 Residents’
voluntary
organization
membership

49. Breadth of organizational
memberships
School
Church
Prof. assoc.
B
A

50. …may have access to very
different network resources
A B

51. Breadth of organizational
memberships
from World Values Survey Wave 5: 2005-2009

52. Plot of predicted probabilities (with 95% confidence
interval) of entrepreneurial opportunity perception
for formal organizational memberships.2.3.4.5.6
0 1 2 3 4
The average number of different types of formal org. memberships of individuals

53. Geography of entrepreneurship
in the US
(0.11,0.28]
(0.09,0.11]
(0.07,0.09]
[0.03,0.07]

55. Two types of
organization memberships
1. Connected organization memberships
2. Isolated organization memberships

56. Connected associations
B
A

57. Connected associations
B
A
D

58. Connected associations
B
A
D

59. Connected associations
B
A C
D

60. Connected associations
B
A C
D

61. Connected associations
B
A C
D

62. Isolated associations
A B

63. Isolated associations
A B
C D

64. Isolated associations
A B
C D
E F

66. Social capital matters
Financial capital Human capitalPhysical capital

67. Takeaways
1. Social fabric of a community matters for
entrepreneurship
2. Entrepreneurs should surround themselves with the
network of high trust and diversity

68. Upcoming webinars
 Lessons in refugee settlement, January 17, 12-1
p.m. MST
 Healthy neighbourhoods, January 19, 12-1 p.m.
MST
 Pets, people and urban places, January 26, 12-1
p.m. MST

69. Thank you
Sign up for other UCalgary webinars,
download our eBooks,
and watch videos on the outcomes of our
scholars’ research at
ucalgary.ca/explore/collections

70. Other webinar topics
For ideas on other UCalgary webinar topics,
please email us at
exploreucalgary@ucalgary.ca