[ Music ]
>> Good afternoon.
My name is Ali Kujoory for
those of you who do not know me.
And I'm from the Engineering
Science Department.
I'm one of the organizers
of this lecture series.
On behalf of our department
and School of Science
and Technology, I would
like to thank you all
for joining this 11th
lecture in the academic year,
and 134th lecture in the series
since we started in 2006.
And I also want to thank
our speaker, in fact,
accepted our talk for today.
The other organizers of this
lecture series are, in fact,
Mr. [inaudible] and also
Miss Kate [inaudible].
Before I introduce our
guest speaker for today,
let me mention that we have our
next talk on April the 19th.
And the title of the talk is
"Why Did Silicon Valley Develop
in the San Francisco Bay Area
Instead of the East Coast?"
And I think that's going to
be very interesting for you
to get some history, and
so forth, on why that is.
That's [inaudible]
by Dr. Estreich,
who is an Adjunct
Professor in the department.
At 5:30 we are going to have
the pizza is going to arrive,
and I hope you all
enjoy having it.
Our guest speaker for today
is Mr. Sergio Canavati.
And the title of his talk
is "Engineering Knowledge,
Industry Experience and the
Recognition of Opportunities
for Entrepreneurship
and Innovation."
Dr. Sergio Canavati is
an Assistant Professor
of Management at
Sonoma State University.
His research focuses
on entrepreneurship opportunity
recognition, family firms
and entrepreneurship leadership.
Sergio also collaborates with
North Coast SCORE, SCORE stands
for Schools of California
Online Resources for Educators,
to advise small and medium
family businesses in the region.
Sergio holds a Ph.D. in
Economics and Entrepreneurship
and Innovation from
the University
of Missouri-Kansas City.
So here is Sergio now.
[ Applause ]
>> Thank you for that
kind introduction.
And thank you so
much for having me.
For me it's really cool
to present to an audience
that is not in my field,
from another field.
I consider that to be the
most interesting thing to do,
because I always speak
to people in my field.
And it makes it more difficult
to get more variety of ideas
and more creative ideas,
and also to see what people
outside the field think,
because you guys
are from a field
that is supposed to be distant.
But it, actually, is really
related to entrepreneurship.
And that's what I
hope to talk about.
So today I'm going to talk
about a work in progress
that I've been working on
for the past three years.
And I felt it was really
relevant for this colloquium,
because it relates to
different types of knowledge,
and how that helps
identify opportunities
for creating a new venture
for entrepreneurship.
So with that, before I start,
I wanted to thank the people
that have helped me connect
with the Engineering Department.
Chris Stewart, Ali Kujoory, who
helped set up this talk for me,
and Professor Farahmand, who has
worked to create avenues for me
to be engaged with
your department.
And I'm really thankful for
that, for the opportunity
to collaborate with
people that do work that is
so serious as yourselves.
[ Inaudible Speaker ]
Exactly. So when I
said work that is
so serious I meant
really rigorous,
and really thorough work that
I haven't seen in many other
of my experiences,
work that is complete.
And everyone in the Senior
Design Project takes the
coursework with the
utmost seriousness.
And that is something
that really impresses me,
and also motivates me to be, you
know, to be a better instructor,
and also to do a
better job myself.
So with that, I will get
into the topic of today,
which is how do people use what
they know to find opportunities
to create a new business, or to
use a technology to make money.
So I wanted to start by
defining what an opportunity is.
An opportunity is simply when
you come to the realization
that something that
you can do will create
in the future something that
that is feasible and desirable
for yourself, that you can
enact it, and that can add value
in the market, value
for yourself,
and value for consumers.
That's why sales are called
output that evolves value added.
So the thing about
the opportunity is
that the opportunity has to do
with something that allows you
to make money in the
environment, a change,
a new technology,
a new development.
But the technology itself
doesn't represent an
opportunity, if you don't
see it as an opportunity,
and you don't feel that you can
exploit it as an opportunity.
So in that sense an opportunity
has both something outside
that creates a way to make
money, and something related
to the person that
allows that person to see
that as an opportunity.
Right? Because that's
the question.
Why do some people recognize
opportunities, and others don't?
And one of the reasons would
be that they know something
that other people don't know.
That maybe they have experience
working with that technology.
They have technical knowledge.
And that's why they're able to
say, "Oh, I know this technical,
you know, I know
this technology.
Now we have this
problem that emerged.
Maybe that technology can be
used to solve that problem.
And we can create a business
to make money with it."
So that's the core essence
of what I am arguing.
The role of the prior knowledge
in recognizing opportunities.
So what we have done is divided
the opportunity recognition
process into two stages.
In the first stage people come
up with an opportunity idea.
They have an idea, and I will
define it, but they have an idea
of something they
could do to make money.
And in the elaboration stage
they work to develop confidence
in whether the opportunity
is feasible, is desirable,
and it actually is a
match for the problem.
I mean it's a match
for the technology,
or whatever they know,
whatever solution they have.
Right? So the outcome,
if they're able
to develop confidence that
it's a good opportunity,
should be that they
decide to launch a venture.
But, as I will show in
a minute, that depends
on whether they believe
there's an opportunity there
for somebody else, or
an opportunity for me.
Right? Maybe some of you have
identified an opportunity,
and said, "You know,
somebody could make a lot
of money doing this."
Or in that situation
maybe you didn't say,
"I could make a lot
of money doing this."
Do you see the difference
between that?
Is there an opportunity?
Yes. Okay.
So is that opportunity for me?
Is this something I can do?
Or is an opportunity for
someone else who has the access
to the resources,
and has experience.
Right? And if they realize that
there's opportunity for them,
then they may decide to enact
that opportunity, or that idea.
So let me break down
everything that I just said
into more detailed slides.
So the opportunity idea, the
person arrives at an idea
through a combination of
something in the environment
that changes, that
creates an opportunity.
But that itself is not enough
for the person to
identify an idea.
Right? Because something can
happen in the environment,
and one person doesn't
see an opportunity idea,
and the other person does.
Right? So there's also personal
attributes of the individual
that enable him or
her to consider
that an idea for an opportunity.
Like, for example, things
like global warming,
right, creates fires.
Now you're faced with fires.
Right? That's a change in the
environment that creates a need.
So if you find a technology,
or you know about something,
you have some knowledge of
[inaudible], for example,
and then you know something that
can be used in that situation
to solve the problem, then
you might have an idea.
Right? But you still don't
know how you would go about it.
Have you ever had an
idea, but you don't feel
like you can enact it?
Like you would, there you go.
Okay. So that's the
difference between an idea,
and then the process of
developing the confidence
that it's a good idea, and
that it can be enacted.
So the recognition,
the identification
of an opportunity idea
happens in the creative stage.
And it happens when the
individual perceives
an opportunity.
And whether it's an opportunity
for making money or not,
the person doesn't know.
They just have an idea.
What if I did this?
But they have an incomplete
model of what it represents.
And I will explain
that in more detail.
But the creative stage,
and the recognition
of an opportunity
idea, is a prerequisite
for the elaboration stage.
It happens after
you have an idea.
You've been thinking
about it for a while.
And then you seek
meaning about that idea
through interaction with peers.
And there are several layers
of social interactions.
But the most relevant one
happens with your peers.
Then there are like
your instructors.
And there are maybe people
that you vaguely know.
Then there are experts.
Right? So the people that
influence the formation
of your beliefs about whether
it's an idea that you need
to pursue, or someone
else could pursue,
happens within your
inner circle.
So this is a process.
And in the end you either form
beliefs that it's a good idea,
or that it's not a good idea.
Now this model is a basic
representation of what the model
of an opportunity
could look like.
Right? What a good
opportunity could look
like for an individual
would be an opportunity
with a clearly defined
customer segment.
Right? There is a group
of people that can buy it.
There's a group of people for
whom this would be useful,
right, which is the customer
need, the value part.
Like there's a need.
Right? Like I mentioned,
for example,
global warming creates
more frequent fires,
which creates a need
to solve that problem.
Right? So we have a need.
We have a problem.
And do we have a
customer segment?
Do we have a group of
people that would be willing
to pay for our solution?
Who are they?
Right? Do we know?
And once we talk to people,
once we talk to our dad,
who's an expert maybe on
something related, our uncle,
right, our peers, our
inner circle, our friends,
then we start to form
beliefs about each one
of these three components
of the model.
Is there a segment that
wants to pay for it?
Right? Is there a problem?
And how well does this
solution solve that problem?
And, finally, can I get
the resources to start it?
Can I get the funding?
Can I get access
to the technology?
Can I get the technicians or
the lab personnel that I need?
The cash? And do I have
the knowledge to do it?
Right? Do I know how to
manage the situation?
Do I have the capabilities?
And that's the opportunity
confidence component.
Now check this out.
If the individual forms a
positive belief about the fact
that there is a group of people
that have the money to pay
for this innovation that solves
a genuine problem or need,
but he or she doesn't
feel like she has access
to the resources
needed to launch this,
or to develop this technology,
and doesn't have the
capabilities to do so,
then that person now is sure
that there is a good opportunity
there for someone else.
That doesn't lead to
technology commercialization.
That doesn't need
to a new venture.
Now just like in the
previous example,
if that person forms positive
beliefs about the existence
of a segment of people that have
the money and are willing to pay
for it, and that the invention
addresses a significant need
or a problem that is pressing.
And that person feels like they
can get access to the resources
that they need to
launch this venture,
or to develop this technology.
For example, to get medicine
approved by the FDA, a drug,
how many years does it take?
>> A lot.
>> Several years.
And what do they require
you to do in order to apply?
You have to test.
Millions and maybe, you know,
billions of dollars' worth
of testing engineers
and whatnot.
But if that individual feels
like they can get the access
to the resources, and
they have the capabilities
to do it, they can do it.
They can manage the company.
They can manage the project.
Then they have formed
a first-person
opportunity confidence.
They have formed beliefs that
the opportunity is feasible,
it's desirable, and it's
a fit for the problem.
Right? It says the solution
is a fit for the problem.
And that's what [inaudible]
to people actually continuing
working on their innovation.
So when people are
making an assessment
of whether there's an
opportunity for them,
they are focusing on themselves.
Right? Can I get access
to those resources?
Can I handle the situation?
Do I have the capabilities
to do this?
So what role does what
you already know play
in this process?
Remember, there are two stages.
Right? So when we are talking
about a problem, right,
we're talking about
an innovation,
there has to be a
matching between the two.
Right? The innovation has to
be a solution for the problem.
Does that make sense?
And whatever you develop
it has to be a match
for what these people want.
Whoever approves the
purchases of fire retardants.
Whoever has the money.
How much money they
have to pay for it.
Is it going to be so expensive
that they can't pay for it?
Right? So you have to match
what you see with the problem.
Right? So in order to do that
people rely on mental models.
Like the one I showed you.
Which is why I showed
you the model.
So that now when I talk about
cognition, I don't lose you,
because you can make reference
back to what you just learned.
That's exactly the role
of prior knowledge.
I just gave you a new
category about mental models,
what a mental model is.
So it's all about
identifying similarities
between what your
technology can do,
and what problem someone else
in some other country has.
And in order to make
these connections,
people rely on structural
alignment.
So here's what happens.
When I showed you the
concept of a mental model,
I had never heard
of a mental model,
and most people may
not have heard of it.
Right? So when you are faced
with a new stimuli, something,
you make sense of it by saying,
"Does it look like something
that I have seen before?"
Like if you look at this
chair, you know it's a chair.
Why? Because it has
somewhere to sit.
It also has something
to recline on,
or something to support
your back.
It has legs.
So that's a chair.
Right? Then we can talk
about that's a black chair.
That's a plastic plus
metal chair that looks
like a somewhat comfortable
chair.
But it doesn't have the,
so now you can compare it
to other chairs that you
have seen in the past.
Right? That's what people do
when they see something new.
When you learn something
in the classroom.
Right? That's new stimuli.
And then it reminds
you of some problem
that they have somewhere
in Idaho.
And whatever this thing that
you just learned may just be the
solution to that problem.
That is the structural
alignment.
You are making associations
between what you are just being
faced with, with what you know.
Does that make sense?
How can you make those
associations if you don't know,
if you live in your mom's
basement, and never, you know,
went to school or
anything like that?
Right? So that's why prior
knowledge is important
in the process of the
structural alignment.
So if you have been exposed
to a problem, like for me,
this is the first time that
I lived through a wildfire.
So now that I've been exposed to
this, or this is the first time
that a wildfire has
impacted my life so closely.
Right? I used to think of it as
things that happened, you know,
I don't know, like very rarely,
and they don't really
affect people.
I have never actually
thought of it.
Right? But now that I'm
exposed to that problem,
now I'm more aware
when I see something
that may be a solution to it.
Does that make sense?
So it allows the formation of
associations or connections
between what you learn,
and how it can be used
to solve that problem.
For example, in a lab
when you learn something
about a technology, what a
technology can do, and you know
about a problem that
some other people have,
then you can make
that association.
Right? What you have come
up with is simply an idea.
A very incomplete mental
model of what, eventually,
may look like a technology that
is commercialized for money.
So when you make
those connections
between what you
were just faced with,
with what you just learned, and
something that you already knew,
there are two types of
connections that you can make.
You can make connections
between superficial features.
Like, okay,--
This chair is black
like the chair I have
at home, for example.
Right? You're making
a connection
between two superficial
features.
This chair is made of plastic.
Right? Now structural
relationships would be something
like this chair has armrests
that support my body, my arms,
and it makes me feel
more comfortable.
Or I would say this
chair doesn't.
So it's that relationship
between two things.
Right? My arm and the chair.
Or, in the case of a
technology, for example,
what does the technology
produce?
It produces 3D objects.
Right? That's saying, "Oh,
that machine produces 3D
objects like this machine.
Right? That's a superficial
feature.
And you're making a comparison
based on a superficial feature.
Now to make a comparison based
on structural relationships
would be
that machine makes 3D objects
using the same technology
that the other machine does.
Right? It's a relationship
between two superficial
features.
Or saying, in both cases,
the chain moves the
device that prints.
Right? So we're not just
talking about one thing,
but the relationships
between the objects.
Or if we look at higher order
structural relationships,
we would say this product
uses the same chain mechanism
to move the device that
prints, and that allows it
to make 3D objects using less
resources, or less material.
And, therefore, are cheaper.
So the key takeaway from that
is you want to get to a point
where you are able to
make associations based
on structural relationships,
not simply superficial features.
Because making associations
based
on superficial features leads
to more creativity no
doubt, leads to ideas.
But in order for you to get to
the conviction that you want
to do something, you
have to make associations
between problem and solution.
Or, you know, discoveries
of technology device
that you learned to
use, and solution based
on structural relationships.
Like how the relationships
between the objects lead
to a different outcome
that is superior,
something that could
have value in the market.
And in order to do that,
it usually takes expertise.
It takes not only education,
but also practical training.
Because experts tend
to rely a lot more
on structural relationships
than novice users, newbie users.
And when we make
associations between things,
in this case problem solution,
based on structural
relationships,
we feel more confident
about them.
We feel like it's something
that can be explained
by a mechanism of
cause and effect.
And we feel more comfortable
with that than something
that can be explained
by superficial features.
And that's why it's important,
because it leads to action.
Okay. So my next slide is close
to, how much time do I have?
>> Another [inaudible]
half an hour.
>> Half an hour?
Okay. So this slide touches
upon the second component
of the study, which
is the different types
of prior knowledge.
And we now we want to apply
that to the different stages
of opportunity recognition.
We have technical
experience and expertise.
We have entrepreneurship
experience.
And then we have
education, going to school.
Now in the process of making
associations between things,
when you have been trained
to look at things one way,
when you have received
education, you can become
so absorbed into that framework
that you learned, that you tend
to explain everything in
terms of that framework.
Has it ever happened to
you that you used to think
in many different ways, and
once they taught you to think
about things in one
theory, in one way,
now that's how you
explain the world?
And it's very difficult
to explain the world
within any other framework.
That happened to me as
I studied economics.
I became so used to the
terms that they used,
the way that they look at
relationships, that anybody
that talked about this situation
without using these terms
and referring to these
models, I couldn't understand.
I couldn't even think
that there was much value
to what they were saying.
And yet that was
me two years ago.
Right? So it limits what
we see as an opportunity,
because we have been
indoctrinated,
to put it in a more common term.
So--
Experience should lead to
making associations based
on structural relationships,
and higher-order
structural relationships.
Like relationships between
the superficial features
that lead to outcomes.
Like a lighter product, a more
mechanized production process.
Right? And that can
be associated
to more lower costs and whatnot.
Right? And if we are to apply
the structural relationship
theory to entrepreneurship,
it would be these features
that we would pay attention to,
because we know that the process
of deciding whether
it's a good idea
for yourself is very stressful.
Think about what's,
you know, on the line.
What are you risking?
Can you provide examples of
why you would feel stressed
when making a decision whether
to start a company or not?
Whether that idea
is worth pursuing.
Do you have any examples?
>> You have to mortgage
your house to get the money.
>> So getting the resources
together, you know, brings a lot
of anxiety, because
of the risk involved.
Right? You're risking
your personal property,
or your livelihood, in
order to pursue this idea.
Yes?
[ Inaudible Speaker ]
Right. So there's also the
hassle of asking people
for money, fundraising.
And then how you
have to take the risk
that you may never be
able to pay back the loan.
And what would be the
consequences of that?
[ Inaudible Speaker ]
Not being able to
borrow in the future.
Right. So it's an
emotionally demanding task,
cognitively demanding, and it
involves a lot of uncertainty.
And that's why it's important.
>> It also leads to
a lot of divorces.
>> Definitely.
I mean if you start, yeah,
if you decide to launch the,
I had never thought of that.
If you decide to launch the
venture, you're committing to,
basically, doing that,
you know, 80 hours a week.
Right? So it takes away
time from your family,
and from whatever
you want to do.
Definitely.
Yeah. That brings, you
know, fear, uncertainty.
So it's not an easy
decision to make
when you are making these types
of, forming these beliefs,
making assessments about
the different components
of the model.
So what I have been working
on is a meta-analysis.
And, basically, we
summarized the results
of 132 different studies.
We didn't look at studies that
had the same group of people.
Right? They had to
be different people
in different time
periods, et cetera.
And that leads to observations
on, it would be wrong
to say 386,000 individuals,
maybe 3,000 individuals,
because sometimes it's
for several years.
But it's simply individual
year observations.
But it's probably close to
maybe be 100,000 people,
100,000 cognitive
processes examined.
And this is a synthesis
tool that allows us
to derive statistical
summaries of all their results,
rather than one study.
So I brought some.
I put two tables in this study,
because this is a
work in progress.
This table that I'm going
to show you next shows
you all my new studies,
my work in progress.
The table after that is a
table that has fewer studies,
but it was done in a more
rigorous way, because I did it
and I completed that process.
I'm still in the process of
refining the data in this table.
But what you see here are
correlation coefficients.
What that means is
when education goes up,
how does the ability
to recognize these
opportunities go up?
Right? Is a concept
of a correlation coefficient
common in engineering?
[ Inaudible Speaker ]
Like give me one example
of how it is applied.
Or just a correlation,
the concept of correlation
in engineering.
[ Inaudible Speaker ]
Okay.
[ Inaudible Speaker ]
To denote association
between two things.
So this is the association
between, for example,
so what I wanted to
show you was this.
Remember we talked
about the ideas?
Right? So what is the impact of
the different types of knowledge
on the ability to generate
ideas for entrepreneurship,
or commercializing technology,
inventions in the lab?
And what you see is that
in this case, for example,
when the individuals--
When the individuals lack
entrepreneurship experience,
then they tend to
form third-person
opportunity confidence.
Right? They believe it's
an awesome opportunity
for someone else to pursue.
And otherwise they're
more likely to form,
or the association is stronger
when they have experience
in entrepreneurship.
Now let me show you these
other results, that I wanted
to complement my presentation
with, to show that in some cases
for the information of ideas,
for stumbling upon something,
and saying, "Oh,
this could be an idea
for making money," Right?
It is very important to
have technical knowledge,
technical expertise.
So what that means is
if you have a student
that has never seriously tried
to learn anything outside
of their field, my field being
business, right, they only know
about business, it's going
to be more difficult for them
to identify ideas
for innovation,
for entrepreneurship, because
they simply don't have the
knowledge about other
things that exist,
how to use different devices,
how different technologies work.
Like what is covered in a lab,
where people become acquainted
with technical processes,
devices,
with things that
we take for granted
that we have no idea
how they work.
Does that make sense?
So the takeaway, in my
opinion, is getting knowledge
in areas other than your
area, and being an expert
in technical issues, is
key for a business student,
for an entrepreneurship student
to be able to see opportunities
that they may never
see otherwise,
because they have no idea of
the inner workings of a device,
of how to use CAD software.
Or if we were to extend it, even
traveling to other countries.
Right? Doing things
that increase your knowledge
helps you be more creative,
and see ideas for implementing
maybe something they do
in another country, and doing
it here, and making money.
Right? Because this
is the creative stage.
But in order for entrepreneurs
to develop, I mean engineers
to develop beliefs that they can
commercialize the technology,
that is something they can do,
either alone or with a team.
They need to gain experience
in doing something
in entrepreneurship.
And here I also included
entrepreneurship courses,
entrepreneurship training,
because it tends
to be experiential.
And based on doing
interviews with students
on developing a logo,
trying to develop a website,
then testing the market.
Right? So, basically, just like
business students seriously need
to understand how technology
works in order to be able
to identify opportunities
they may otherwise miss.
In order for all groups of
students, they also need
to have entrepreneurship
experience,
whether it's an experiential
experience guided
by the instructor, or actually
trying to set up a venture.
Here's something about
structural alignment.
When you fail, you keep thinking
about that failure
for a long time.
So the next time that
you see a problem,
you may try to take away
from what you learned
from your failure, to say,
"This is a good opportunity,
because the other one failed,
because it didn't have
the money quickly.
So we were waiting three years
for the people to buy us.
But these people will
pay within a month."
Right? So experience is key.
And there is no way, going to
school and, hey, my job depends
on people going to
school, but still,
going to school is not
going to be enough.
You have to get entrepreneurship
experience.
You have to get professional
experience.
You have to learn
how things work.
Because here under industry
and professional experience I
included technical expertise,
knowledge of the
technology, knowledge of ways
to use the technology,
engineering knowledge,
engineering experience.
So for students what
that means is they need
to prioritize also internships,
collaboration with industry.
And being experts in one area
is not going to be enough.
They actually need to understand
that not only do they have
to pursue their main field
of study, but they also have
to get, if they're
business students,
they have to get understanding
that goes beyond a
textbook of how things work.
So with that, I bring my
presentation to an end.
[ Applause ]
>> Can I ask a question?
In your previous slide I noticed
that the first-person
opportunity confidence needs
to be [inaudible] higher
than the third-person
so that you would succeed,
right, [inaudible]?
>> Yeah. First-person
opportunity confidence is what
leads to people actually
commercializing technology.
I don't have the facts
completely, the whole story.
But I know Bill Gates
didn't create the program
that made him a billionaire.
Right?
>> Yes.
>> He didn't.
>> Yeah.
>> So how did he get it?
>> So the story is like some
other person developed it.
I don't remember his name.
And at that time he was selling
his software to many people.
He went to [inaudible].
This [inaudible] program.
So this [inaudible] said
this is a nonsense program.
He said no.
But then somehow Bill Gates
came to know about this person,
and then this program
that he was developing.
Then he went and he
bought it for some x money.
And then he took it.
And then he took
it to [inaudible]
to such a big levity
that [inaudible].
And then it became [inaudible].
>> Right. So he took an
idea, someone else's concept,
and he thought that was an
opportunity for himself.
Because what happened is they
went to Seattle to buy it
from the other company,
but the owner wasn't there.
And the employees
didn't want to negotiate
on behalf of the owner.
So the IBM representatives
they went to see Bill Gates.
And he told him, "Yes, I
have something to sell you."
You know? And then he
bought that program
for $50,000, and sold it to IBM.
So in order for people
to develop the belief
that they can enact
an opportunity,
they need to have experience.
Right? He had experience
founding his company.
He had experience in
the industry no doubt.
He had developed his own
software and had failed.
Right? So even if you fail,
learning is always happening,
and you're becoming more skilled
at identifying what a good
technology looks like,
what a good commercialization
opportunity looks like.
>> And, in fact, the confidence
it seems it plays a big role.
>> Yes. Yeah.
Confidence in the opportunity.
Yes?
>> I see that first-person
confidence,
which seems to me
the most important,
that has the highest
number there related
to having experience
in entrepreneurship,
rather than what you learn
in class, for instance.
But, like they say,
correlation is not causation.
[ Inaudible Speaker ]
How do you know that it's
not just the personality
of those people, rather than
the knowledge they have,
you know, some other factor?
>> Yeah. So there could be
many confounding factors.
It could be that
entrepreneurs are, I mean people
with these characteristics are
attracted to entrepreneurship.
But what I do know is the
studies that I'm including
in the main analysis,
they have looked
at the cognitive processes, the
structural alignment process
of entrepreneurs and
non-entrepreneurs.
And they've found that
they are different.
That entrepreneurs
tend to rely more
on higher-level structural
relationships.
And that may explain why they
are able to develop confidence.
And they also have
the experience
in launching a company.
So, remember that the
third component had to do
with like do you have the
capabilities to do it?
So this is not causation.
And that's a very good point.
Main analysis cannot
prove causation.
You know? It can only
prove correlation,
association between two things.
And it's never clear
what causes what.
I explained like conceptually
how we believe things are
associated, right,
what is associated
with what, and for what reasons.
But the takeaway simply is don't
be afraid of gaining experience
in something other
than your field,
because there is a
learning process involved.
And as you become an expert,
you start to be more proficient
in the way that you think.
>> Yep. In that third
row we notice
that the first-person confidence
is not as high as the third.
So this means that
maybe that third-person,
because he has the first
two confidences, he can go
and buy the other
confidence using other people
in the third party to get
that, that is the industry
and professional
experience [inaudible].
>> They may actually sell it.
Yes. Yes. That's
a very good point.
And that is something that
is available to you guys.
Like open innovation.
Right? They may not be able
to take it all the way,
but this is an opportunity,
a great opportunity
for another company.
That I have never thought of.
And it actually has
profound implications.
Right? Because if you like the
entrepreneurship experience,
it's still good to be able to
be proficient at the evaluation
of opportunities,
because you can sell them
out to other companies.
>> Yeah. Yeah.
>> Yes?
>> On his comment,
I'm wondering if,
because you have more
experience, you know,
it's harder than the
person who doesn't.
>> So for me beliefs
about the opportunity
that are positive may not
be necessarily a good thing.
Right? Because you
mortgage your home.
I mean you cash out
your home mortgage,
and use it to launch a
company that's going to fail.
You know? So forming confidence
beliefs about an opportunity
that is not good,
is not a good thing.
And that's a limitation
of the study
that I recently became aware of.
Right? It's not just
forming confidence beliefs.
Is that a good thing
in the first place?
Right?
>> Now from your
experience, well, you know,
[inaudible] study are a bunch of
factors that you need to meet.
And then own to make
the thing happen.
Right? Now the question
is that which one
of these factors you can buy,
and then make the opportunity.
You know?
>> Right. Right.
So it doesn't necessarily have
to be an opportunity for you.
And you can actually, yeah,
you can actually hire
someone to do it.
But that person would
have to be proficient
in the technical aspect, too,
in order to make that matching.
Right? Like how does
it work in teams.
Right? Yeah.
>> Yeah. In fact, [inaudible]--
>> That's a good question.
>> I see that [inaudible]
can go and hire lawyers.
They can go and hire engineers.
They can go and consult.
There are a bunch of
things that you can buy.
>> Right.
>> And to make the opportunity
happen [inaudible] and succeed.
>> Definitely.
>> Right.
>> Yeah. That would
require access
to those resources [inaudible].
>> Good.
>> Thanks.
>> Okay.
>> Thanks for being patient.
[ Applause ]
>> Thank you.
[ Applause ]
[ Music ]
