Rob Adams
Director, Moot Corp
Professor of Entrepreneurship
McCombs School of Business
University of Texas, AustinRob has signed checks on both sides of the venture business - as an entrepreneur and as a financier. Now he teaches MBA students and oversees a Moot Corp with a worldwide reputation.
Is now an especially good time in the U.S. for entrepreneurship, and for whom?
Yes. Risk-takers today stand to profit in a year or so when the economy has a fuller head of steam. Competitors may also be scarce right now, which is an added bonus. College students who will graduate in the near future will do so with a low-cost lifestyle. That gives them an advantage in getting a business going.
Is college an especially good enabler for young entrepreneurs?
Yes. College students can view a number of successful and unsuccessful startups as coursework in an academic year or less. At the same time they have access to professors with considerable business acumen. A year in college can be the equivalent of three years or more at work in a business. I advise students to get the maximum exposure during their college stay.
What level of college - undergraduate or graduate - is a better enabler?
Both are good, but each produces a different outcome. Undergraduate businesses are usually service businesses. They don't require much capital, and they can produce cash flow fairly quickly. Graduate students themselves often have business experience. The businesses pursued are usually more complex, often life sciences, technology or manufacturing. Outside money is often necessary.
How important for success is the ability to persuade investors?
Very important. However, investors are persuaded with facts. So a clear understanding of the marketplace must be communicated well.
Is that persuasiveness something that can be taught in college?
In college you should learn how to gather the data to make a persuasive case.
Is the ability to make a case more or less important that the ability to make a business plan?
The case is more important than the business plan. Investors are really evaluating the business case. The business plan is a ticket to get their attention.
Why is the higher education industry such a fertile field for entrepreneurship today?
The internet is a significant disrupter of the education model. Why does the teacher have to be standing in front of you? And why has he been so for so long? The higher education industry will shift radically toward an online environment.
Can you provide another reason?
The price is high and without bricks and mortar expenses there is a substantial margin…
Why is Texas particularly well-suited for entrepreneurs?
Texas is very business-friendly. The cost of living is very low. The quality of life is very high. The population is booming. Texas is so big you can do a lot of business without leaving the state.
If a young entrepreneur wants to make his fortune outside the U.S., where do you point him or her?
China.
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