is thriving at Northwestern and Kellogg thanks to talented
professors and students, innovative courses and alumni support
partnerships are serious business for Kellogg Dean Dipak
C. Jain and Northwestern President Henry Bienen...
there's also plenty to smile about when alumni, such as
Larry Levy '67, lend their expertise and financial support
to enhance curriculum innovation.
fact, Kellogg has reinvented itself several times over its
100-year history — even shedding a successful undergraduate
program in the 1960s to instead blaze a trail in graduate
business studies, anticipating market demand for more sophisticated
managers. Today, new classes, programs and partnerships arise
regularly to meet student needs, and an entrepreneurial approach
to leadership has been a hallmark of the Kellogg administration
course, Kellogg experts like Steven
Rogers are quick to note that innovation and entrepreneurship,
while related, are not the same thing. It's a message the
Gordon and Llura Gund Family Professor of Entrepreneurship
tells students and others who think that entrepreneurs must
launch brand-new ventures to qualify. That's not a requirement.
person never has to feel burdened by finding an idea,"
says Rogers, director of the Kellogg
Larry and Carol Levy Institute for Entrepreneurial Practice
and author of The Entrepreneur's Guide to Finance and Business:
Wealth Creation Techniques for Growing a Business (McGraw-Hill,
2002). While some entrepreneurs do combine their passion,
talent and creativity to start a venture from scratch, he
says, others tap the same resources to acquire and manage
existing companies or franchises. "We let students know
that the entrepreneurial spectrum is much broader than what
they may have heard."
no doubt that an innovative approach to shaping its curriculum
and teaching has elevated the Kellogg Entrepreneurship and
Innovation Program into the top three nationally, according
to a 2006 study by The Princeton Review and Entrepreneur
wonder. With more than 30 classes focused on entrepreneurship
and some 50 programs and projects managed through the Levy
Institute, this is a curriculum that continues to grow
in exciting ways.
are the future of our economy," says Kellogg School Dean
C. Jain, the Sandy and Morton Goldman Professor of Entrepreneurial
Studies. "As their numbers have grown, so has the Kellogg
and Innovation Program. Our entrepreneurship offerings
are constantly evolving."
reasons for this success include an experiential curriculum
that blends theory and practice; exceptional professors with
real-world track records as entrepreneurs; creative partnerships
between Kellogg and Northwestern University that push the
boundaries of design innovation; and the contributions of
notable alumni, such as the Levys and Gordon '60 and
Carole Browe Segal (NU '60), co-founders of Crate and
Barrel, who have provided generous support for teaching and
2003, a gift from Larry and Carol Levy bolstered the
Kellogg entrepreneurship curriculum. Today, the founder and
chairman of Levy Restaurants and his wife continue that support
with a new gift. The Kellogg graduate's special passion is
social entrepreneurship, efforts such as those of John
Wood '89 and Andrew Youn '06. As founder and president
of Room to Read, Wood has overseen the San Francisco-based
nonprofit as it fights illiteracy by building schools and
libraries in developing countries. Similarly, Youn launched
the One Acre Fund while still enrolled at Kellogg. The plan
came together in Barry
Merkin's Entrepreneurship and New Venture Formulation
course, earning high praise from the veteran clinical professor.
One Acre combats hunger in Africa by teaching farmers more
effective agricultural methods. Both Youn and Wood have garnered
widespread distinction for their efforts.
doing amazing things in the entrepreneurship program at Kellogg,
and we need role models, we need mentors and we need more
great success stories," says Levy.
Segals, meanwhile, are funding a new design institute at Northwestern's
McCormick School of Engineering and Applied Science, home
of an innovative joint-degree program between Kellogg and
Northwestern called the Master
of Management and Manufacturing (MMM). The initiative,
whose students work closely with faculty to turn technological
breakthroughs into sound business proposals, features a capstone
Integration Project, which requires second-year students
to take an entrepreneurial approach to problem solving by
serving as consultants to leading manufacturing companies
or by developing a business venture based on a new product.
The MMM program celebrates its 17th anniversary this year.
world as we know it would be unrecognizable without engineering,"
says McCormick Dean Julio M. Ottino. "Engineering
creates goods, knowledge, services, and infrastructures that
benefit humankind; it is no exaggeration to argue that engineering
is one of the main drivers in our world today."
critical driver is the ability to bring this innovation to
market using sound business practices. The Kellogg-McCormick
collaboration prepares students to do both.
Jain and McCormick School Dean Julio Ottino bring management
and design together.
bringing together technological tools and management acumen,
MMM seems to exemplify what management thinker Peter F. Drucker
had in mind when he outlined the elements of business creativity.
In his 1985 text Innovation and Entrepreneurship, Drucker
wrote, "Innovation is the specific instrument of entrepreneurship
... the act that endows resources with a new capacity to create
experts concur on that point.
reason I think that entrepreneurship should be supported is
that entrepreneurs create most of the new jobs in the world,"
says Levy. "If we can teach people how to be good entrepreneurs,
we can have more people earning a good living and having a
has also noted the importance of entrepreneurship to the overall
economy. In his 2002 book, he writes that the 1990s created
an enormous number of new businesses: More than 600,000 were
started at the beginning of the decade. By 1997, he reports,
"entrepreneurs were starting a record 885,000 new businesses
a year" — nearly 2,400 a day or four times the
number of firms created in the 1960s. According to recent
statistics by the U.S. Small Business Association, small businesses
(defined as firms of 500 employees or less) represent 99.7
percent of all employees and provide 60 to 80 percent of net
new jobs annually. These businesses, numbering nearly 26 million,
accounted for about $6 trillion of U.S. GDP. Many of these
enterprises are characterized as "entrepreneurial."
figures are familiar to Adam Caplan '01, founder and
president of Chicago-based Model Metrics, a customer relationship
management company. He sponsored a survey of Kellogg alumni
conducted by the school to determine the career paths of those
who majored in entrepreneurship at the school. The results?
Eighty-five percent of those people went on to become entrepreneurs
at some time in their lives. What's more, says Caplan: "Companies
founded by Kellogg graduates now employ more than 7,000 people.
The revenue created is estimated at just north of $1 billion."
these numbers stand Kellogg School faculty members who deliver
the insights to help their students create this wealth. Besides
Merkin and Rogers, Kellogg thought leaders in entrepreneurship
include Professors John
Ward, a preeminent family business scholar, and Lloyd
Shefsky, clinical professor of managerial economics. Colleagues
Shein, clinical professor of management and strategy;
Collins, clinical assistant professor of finance; and
Wolcott, adjunct assistant professor in the Levy Institute,
lend their experience and insights to the program, as does
Scott Whitaker '97, who is associate director of the
curriculum offers strong and comprehensive courses that address
every aspect of entrepreneurship and innovation. For example,
Entrepreneurship and New Venture Formulation focuses
on business plan development; Corporate Innovation and
New Ventures shows how to build entrepreneurial capabilities
within an existing firm; Managing Innovation teaches
how to manage R&D for organizations pursuing breakthrough
industry innovations; Entrepreneurial Finance is designed
to teach students how to become adept at managing all aspects
of valuation, cash flow analysis and raising capital; Venture
Capital and Private Equity Investing provides an understanding
of key issues related to funding ventures. Strategic Management
of Technology and Innovation; Small Business Management;
Family Business: Issues and Solutions; Intellectual
Capital Management; and Social Entrepreneurship
are also part of the Kellogg School's innovation portfolio,
which boasts dozens of formal courses and other structured
the latter, the Entrepreneur in Residence program brings
students face to face with successful entrepreneurs to glean
practitioner insights. The Entrepreneurship
Internship program allows students to hold a summer
role in an entrepreneurial setting, such as Smith Whiley &
Co., where Venita Fields '88 is senior
managing director. "[Students] get firsthand, hands-on
experience," says Fields. "They don't just stay
in a closet and run numbers all day. We get them involved
in client meetings. They actually go out in the field and
visit the company and kicks the tires like we do."
business competitions such as the Kellogg
Cup, students have a chance to hone their ideas, testing
and strengthening them against the critiques of real-world
experts. Tour de KAE, meanwhile,
offers an opportunity for Kellogg alumni entrepreneurs to
showcase their achievements to members of their alma mater.
At the same time, they get to offer strategic and operational
insights to current Kellogg students who join faculty for
an on-site visit to the alum's company.
the annual Alumni
Entrepreneur Conference — this year's event is scheduled
for May 30 — students also have a chance to learn from
Kellogg peers who have demonstrated proven skills in entrepreneurship.
Similarly, the Distinguished Entrepreneur
Speaker Series brings leading practitioners to Kellogg
to share their experiences with students.
try to create environments where our students and alums can
network with one another," says Professor Rogers. In
addition, he says, "We want to teach students in the
classroom in the traditional way about entrepreneurship. First
and foremost they are coming to Kellogg to receive a premier
education from a premier faculty. We've had more faculty recipients
of Ernst & Young's Entrepreneur of the Year Award than
any other school in the country." (Rogers himself has
won the award.)
mantra, which is backed by empirical evidence, is that those
who come to Kellogg and major in entrepreneurship are destined
to become entrepreneurs at some point in their professional
lives. But he also says that entrepreneurship is a lifelong
journey, one that Kellogg is always ready to support.
reality is, the entrepreneur who stops learning is the entrepreneur
who dies," says Rogers. "Graduates from our program
are and will always be members of the Kellogg entrepreneurship
family. We expect you to come back and continue your education.
We want to always be a part of your life."