Welcome to Hanyang University online course
I am Taejun Bae, who will teach
Global Entrepreneurship, Launch Your Startup
Actually, I initiated this course at Hanyang University
Let me introduce myself a little bit
I was a salesperson
at the steel making company in Korea
So I was working over there for three years
Then suddenly,
I wanted to study entrepreneurship
Then I went to America to study entrepreneurship
and got a PhD degree in the field of entrepreneurship
Then I became an associate assistant professor
at Hofstra University, New York, Long Island
Later on, I came to Korea again
So I have been working at Hanyang University since 2018
On my campus,
I mainly teach entrepreneurship
both in undergraduate and graduate schools
And also, I am in charge of the Department of Entrepreneurship
at the graduate school
So, why I study and teach entrepreneurship?
Actually, I am very interested in the question about
Who started their businesses
and why they did that
and how the startups can be found
I am really interested in these types of questions
To me, starting their businesses
is kind of almost impossible
Think about it
We have reliable job options
In other words
We can get a job at a big company
And that big company will give us a regular paycheck
And my job will be stable
Because I will make a contract with my employer
On the other hand
If I start my businesses,
it could be risky
And no one knows how long it will take
to reach out to certain kind of levels
Good thing? Benefit?
Yes, of course
If my business is successful,
then I will be a billionaire overnight
But the probability was really low
So, I tried to understand
the phenomenon of entrepreneurship
So I read a book
and I searched for the researches
But surprisingly, there's not too many materials
that I referred to
So I decided to study entrepreneurship
At that time,
I thought that someone should prepare
some kind of knowledge, gather the data,
generalize knowledge,
and provide those kinds of knowledge
to the students
So, that's why I decided
to study entrepreneurship in America
I'm pretty sure that you've been taking
a lot of entrepreneurship classes in your university
And I think you know how
normal entrepreneurship classes are being conducted
Normal entrepreneurship classes are pretty similar
The professors ask you to make a group
and come up with a hypothetical business idea
and just try to write down a potential business plan
and present this potential business plan
in front of the class
This is kind of a pretty similar logic
of an entrepreneurship class
But this class is a little bit different
from the other normal entrepreneurship classes
I'm going to try to combine
business cases and theories
in terms of the business case
We can gain the knowledge
through the different style of case
But think about it
Your own situation
is not the same as other cases
We live in a different time
We live in different countries
We are in a different environment
So the past successful cases
don't necessarily apply to your cases
We say it is a first-person case
We should go beyond that
So we try to generalize knowledge
through the empirical research
about large-scale data
and empirical design
and survey data
This is a kind of theory-driven approach
But, sometimes this theory-driven approach
is far from the real world
So we say it is a third-person knowledge
So the case is about the first-person knowledge
and the theory is about third-person knowledge
far from the real example
So in this class,
we want to combine these two areas,
which is case-based first-person knowledge
and theory-driven third-person knowledge together
So we say this approach is
kind of a second-person hands-on knowledge
This is the way how I designed this class
I hope my explanation
helped you understand this class before
So, again,
we will see a lot of cases throughout the class
and a lot of researches throughout the class as well
So if you need it,
we will be introducing useful tools
and practicing them together during the class
I also wanted this class to be
a great help to your future career path
Therefore, I designed some kind of examples
and useful tools
and introduction of the research results
that will be covered in this class
to connect you to your career
Let's get it off
Are you ready?
I want to introduce a very interesting quote
Some researchers wrote about career related to startup
Personally, I think this quote is very insightful
I will read it
Making entrepreneurship one's career
is neither the result of
incidental decisions or inherent status,
but the result of intentional activities
at the risk of one's career distinct from paid employment
It's a beautiful sentence
Who wrote it?
Yes, I wrote it
Thank you very much
I wrote this sentence
Then I was satisfied with this sentence
Then we published the paper
to the high-quality scholarly journals many years ago
I'm very interested in your career path
in terms of the entrepreneurship
Let's look at the pictures
Bill Gates, Mark Zuckerberg and Ivan Spiegel
Bill Gates is the founder of Microsoft
Mark Zuckerberg is the founder of Facebook
and Ivan Spiegel is the founder of Snapchat
You know that, right?
What do they have in common
except for entrepreneurship?
What do they have in common?
Yeah, they are rich
Yes, of course, they are rich
And some of them are young,
some of them are old,
but they were young when they start their business
And what else?
Think about the answer related to the education
Yes, they all quit college
Bill Gates quit Harvard University,
Mark Zuckerberg, same,
and Ivan Spiegel quit Stanford University
Of course, everyone here is a billionaire
Bill Gates is previously
one of the richest men in the world for a long time
And Mark Zuckerberg?
Mark Zuckerberg found Facebook
and he is worth how much?
You know how much?
$243 billion
Not million
$243 billion
I searched for his ranking
and in the Forbes magazine,
he is also ranked second
Ranked second
He is the second richest person right now,
although he is very young
And what about Ivan Spiegel?
Ivan Spiegel is relatively poor
I'm sorry
But he has a net worth of $2.6 billion
From their success,
sadly, college education did not help them succeed
In other words
College education has nothing to do with their success
What do you think?
Let's take another example
Look at the picture
Do you know who he is?
His name is Vitalik Buterin
No idea?
Look at the picture on his shirt
What is it?
Yes, it is Ethereum
He is co-founder of Ethereum
What is Ethereum?
Ethereum is the world's second largest blockchain platform
after Bitcoin
Is he rich?
Yes, of course
He created Ethereum
So his net worth may be more than $1 billion
Did he attend university?
Yes
He attended the University of Waterloo in 2011
But he dropped out in 2014
Then later,
he applied to Peter Thiel Foundation
Then he received a scholarship from this foundation
With that money,
he initiated this project of Ethereum
What is Peter Thiel Foundation?
Peter Thiel Foundation was founded by Peter Thiel
Peter Thiel is a founder of PayPal
He sold PayPal to eBay
Yes, of course, he became a billionaire
And with the money,
he set up this foundation
And he tried to recruit
any potential entrepreneurs all over the world
So who can apply to Peter Thiel Foundation?
Only those who quit school
can apply to Peter Thiel Foundation
His experiment is controversial
But successful entrepreneurs
graduated from his foundation program
It's kind of ironic
So from this anecdotal evidence, we thought that,
college education in terms of entrepreneurship is kind of meaningless
It's kind of useless
What do you think?
If college education of entrepreneurship is meaningless
and it's not useful,
then, you don't have to be here
What do you think?
So that's why I conducted research
Specifically, I conducted meta-analysis
So what is the meta-analysis?
Meta-analysis is a unique type of research
that combines the individual research results
In this case
I collected 73 independent studies
in terms of the relationship between
college education of entrepreneurship
and student's intention to be an entrepreneur
Then, we found that there is a small,
14%, small but significant relationship
between intentional and entrepreneurial education
What do you mean by that?
If you take entrepreneurship education at college level,
then at the end of the semester,
your intention to be an entrepreneur
will be increased by 14%
14%
14%?
That is not a big number
But still significant
This is the research
I want to introduce another research
very similar to this type of research
The researchers evaluated the causal impact of
two major entrepreneurship programs at Stanford University
One is the Center for Entrepreneurship Studies,
which is CES
Another one is Stanford Technology Ventures Program
They measured the relationship between
the college education about entrepreneurship
and some results
So, the first result was
Entrepreneurship education may not
significantly increase the total number of startups
So, the entrepreneurship education may not be related with
the entrepreneurial rate at the university
In other words,
just because more students take entrepreneurship courses,
doesn't mean
more of them will actually start their businesses
The second result is
Education does help students avoid launching
poor fit ventures
Poor fit ventures
What do you mean by that?
The university education gives us
some kind of self-assessment tool
and helps us understand
whether the startup life is really good for me or not
The last result was
Entrepreneurship education
supports the creation of more successful startups
What do you mean by that?
It means that
If you start your businesses
after taking entrepreneurship education,
you are more likely to perform better
Why?
Because you are well prepared
throughout entrepreneurship education
So, overall,
this research suggests us
the function of entrepreneurship education at the college level
So, entrepreneurship education
can serve as filters
and training methods
Training means,
it will give you some relevant skill set
in terms of entrepreneurship
On the other hand
Filtering means
it will help you to understand about
whether entrepreneurship is right for you or not
At the end of this course,
probably, you'll understand your career path very well
Because this course can serve as filtering as well
At the same time
You will have a relevant skill set
Do you understand the function of the entrepreneurship course?
I want to introduce
a very interesting and insightful recent research to you
The researchers conducted a randomized control trial
with 116 Italian startups
And then,
the researchers divided these startups into two groups
Each group has 10 business training sessions
All situations are same
But, there is one critical difference
For the experiment group,
experiment group was
instructed to make a decision
using scientific method
What is the scientific method?
Scientific method means
before you make an important decision,
you'd better come up with your hypothesis,
collect data, and run the test
in order to make a great decision
This is the scientific method approach
What about the control group?
Control group just followed 10 business sessions,
but they were not instructed to use the scientific method
Look at this picture
This picture illustrates the experiment design
Again, we have 116 startups
and we divided into two groups
One group, treatment group
Experiment group
In the treatment group,
you should come up with your hypothesis
collect data and run the test
before you make an important decision
On the other hand, the control group
You just follow the lectures
You just follow the seminar
That's it
Then, what about the result?
The result was shocking
Look at these two lines
There are two lines
One is the blue line and one is the red line
So, the blue line represents
the experiment group
Do you remember the experiment group?
The startups were trained to make a decision scientifically
What about the red line?
The red line represents the control group
The control group received just general business training
but were not taught the scientific method
At the beginning,
the two groups' results are quite similar
But, as time goes,
Look at this
As time goes,
their cumulative revenue
continues to rise on the blue line,
which is the scientific method group
Blue line
This line rises faster and higher than the control group
By week 66, the difference is kind of dramatic
So, what does it mean?
This result tells us that
teaching entrepreneurship
is not important than teaching
how to think about scientific method
Teaching how to think scientific
doesn't just sound good
It creates incredible results
That's why we'd better combine
entrepreneurship's successful case
and scientific results
through our empirical findings
Also, we need to practice to think like a scientist
In other words,
in each process,
we need to think about our hypothesis,
how to collect data and how to test this data
So, instead of saying that
I created my product and my consumer will love my product
You'd better say
What if my consumers don't like my product?
Let's take a survey question
Let's take an interview from potential consumers
And let's analyze the data
in order to make a great decision
This is a scientific approach
Throughout this course, we will practice in this way
I will give you another example
This research is conducted from Africa
The researchers conducted
another randomized control trial
with women entrepreneurs in Africa
Again, they collected 1,000 women entrepreneurs
and they divided into two groups
One group is a traditional business training group
I think it's very similar to the previous research
Another group is experimental group
that received additional personal initiative training
Again, the experimental group
will receive the traditional business training
and additionally, they will receive the personal initiative training
What is the personal initiative training?
The personal initiative training
focused not on what to do
but how to think
and how to act like entrepreneurs
In the experimental group,
they were instructed to think about
very successful, initiative,
and proactive entrepreneurs
And, control group
They just received training business course
Look at the graph
This result suggests us
the women who received
the traditional business training
and personal initiative training together
performed better than control group on every segment
Either in the poor segment or rich segment
So, this result indicates us that
thinking like entrepreneurs
and acting like a successful entrepreneur,
it's not just knowing
the knowledge about entrepreneurship
It's about creating your future success
Also, what is more important in entrepreneurship education is that
just mindset, behavior or your initiative
rather than just knowledge about accounting,
knowledge about marketing,
and knowledge about the successful case of the entrepreneur
Please keep that in your mind
Initiative is very important
Mindset is very important
So, why do we study entrepreneurship?
It is easy to think that
entrepreneurship is only for the people
who started their businesses
But in your real situation,
the skillset and mindset of entrepreneurs
can help you in any career path,
in any field
I thought there are three reasons
why studying entrepreneurship makes sense
even if you don't want to be entrepreneur
The first reason is
you are able to learn to think like entrepreneurs
Because we will talk about
entrepreneurs a lot throughout this course
And second reason
You develop some vision for your life
Vision is very important for you and for entrepreneurs
A vision is a picture of what you want
What you want the future to be
That is the vision
Vision is kind of love
Vision is your big picture
Vision is the reason why you live in this area
Third reason is there are many stakeholders
Many stakeholders mean
there are a lot of people engaging in the field of entrepreneurship
It means you don't have to be entrepreneurs
Although you take entrepreneurship course, you don't have to be
because there are a lot of other types of stakeholders
For example, investors
For example, researchers like us
For example, supporters
For example, government policy makers
in terms of entrepreneurship
You can be whatever you want
Let's look at the sentences
The future orientation
and being able to set the goal is very important
for anybody to be successful
in your career or in your life in general
Acting like an entrepreneur means
pursuing opportunities about which you have a passion
and very strong interest in something
Thinking like an entrepreneur
and being mindful of how to run a business more successfully
can help you become better employees
Thinking like an entrepreneur
also can help you make smarter decisions
about managing your money
Entrepreneurs are always watching the world around them
They are curious
They ask questions like
What is not working here?
Why do people struggle with this?
And is there any better way?
So by observing,
entrepreneurs start to see the problems
And every problems are potential opportunities
That's why they were more likely to catch the opportunity
much faster than anybody else
Because they observe very well
So we practice in observation
Second
Entrepreneurs are not just an idea machine
They are a good listener
They pay attention to
what consumers, teammates, or users are saying
They are very careful on their problems
throughout listening carefully
So we need to practice in listening
Third, entrepreneurs think differently
When they see a problem, they don't just complain
Instead, they ask
Why is this happening?
What is the real cause?
What could we do about it?
So the entrepreneurs are kind of problem solvers
Thinking critically is one of the critical skills
you should develop throughout this course, like entrepreneurs
Look at these guys
Steve Jobs, Elon Musk, and Mark Zuckerberg again
They are all entrepreneurs
But not all entrepreneurs are the same
They are all different
Mark Zuckerberg is young
Steve Jobs passed away
Elon Musk is kind of controversial
Not all entrepreneurs are the same
You don't have to be the same to be an entrepreneur
I prepared some very interesting videos related to Webtoon
Let's watch this news clip shortly
And we will come back
Did you watch this news?
This news is Webtoon went to IPO in Nasdaq
Previously, Webtoon is not an independent company
Webtoon was one of the departments of Naver
You know the Naver?
Naver is a successful search engine company in Korea
It is similar to Google
So, we say it's Korean Google
Anyway, the Webtoon became separated from
Naver recently and was very successful
So that's why it successfully
went to IPO in Nasdaq recently
Who is the CEO of Webtoon?
I want to introduce him
Right now, he is the CEO of Webtoon
His name is Kim Jun Koo
But he did not create Webtoon as a company
Because Webtoon was one of the departments of Naver
So previously,
he started his career at Naver as an employee
When he was a junior staff member,
he moved to the recently formed business unit,
which is the Naver Webtoon department
Why?
Because he loved Webtoons and cartoons
Then, he worked very hard
What was his job?
His job was to recruit any potential cartoonist
and make a phone call to them
and ask them to meet the deadline
If the cartoonist missed the deadline,
then he visited cartoonist's home
and waited for a long time
This is kind of his simple job
Anyway, it takes 10 years
Then later, he became the CEO of Naver Webtoon
Then again, Naver Webtoon became independent
then went to IPO to the Nasdaq
Then he became the CEO of this company
He earned a lot of salary as a bonus
Also, he has equity as well
He's not an entrepreneur,
but he thinks like an entrepreneur
and he acts like an entrepreneur
So then later, he became an entrepreneur
Much successful entrepreneur
So, I want to introduce these new types of careers
related to the entrepreneurship
I will show you another example
See the picture
His name is Han Kim
and in the middle is Don Valentine
and the right is Ben Horowitz
Do you know what do they have in common?
They are all investors
They are not entrepreneurs
but they are all strongly associated with
the entrepreneurship field
Because they are very influential investors
Very strong investors
I want to show you a very successful venture capitalist in Korea
His name is Kim Je Wook
Right now, he's the vice president at Atnum Investment
He started his career at
Daewoo Lab first and Samsung Lab
He studied environmental engineering for undergraduate
and computer science for graduate at Seoul National University
In 2010, he joined the venture capital field,
the venture capital company
Then later what happened?
He received the income, how much?
$21 million last year
Think about $21 million as a salary
It's not a revenue of the company
It is an individual salary
He's not an entrepreneur
And he didn't create his own venture capital company
He's just a partner of
an already established venture capital company
Basically he's an employee
But his job is strongly associated with the venture
or startup and entrepreneurship field
Then he became successful as investor
So how much is it?
His salary, $21 million
So he's salary
ranked number one in Korea in terms of venture capital
Let me summarize
Entrepreneurship education has a small but significant relationship
with being an entrepreneur of you
But entrepreneurship education
can help you make a better startup for sure
Lastly,
even if you don't pursue entrepreneurship,
this course is worthwhile
Because throughout this course,
you will practice thinking like entrepreneur
and acting like entrepreneur
It will be very helpful for your future career