Instructor Resource
Neck, Neck, & Murray, Entrepreneurship: The Practice and Mindset
SAGE Publications, 2018
1
Experiential Exercises
Chapter 12: Bootstrapping for Resources
Source: “The Resource Challenge,” by H. Neck, in Teaching Entrepreneurship: A Practice-
Based Approach (p. 229–233), by H. Neck, P. Greene, & C. Brush, 2014, Northhampton, MA:
Elgar.
Exercise: The Resource Challenge
Description
The Resource Challenge requires student teams (five to seven per team) to generate as much
profit as they can with two hours and $5. The challenge is a great lesson in bootstrapping and
Learning Objectives
• Demonstrate that value can be generated with very little.
• Apply an entrepreneurial mindset to resource acquisition.
• Encourage nascent entrepreneurs to “think cash last.”
Materials List
• One envelope per team that includes a $5 bill within a folded 8.5 inch × 11 inch piece of
paper. The piece of paper has one sentence in the middle: How do you start something
with nothing?
Time Plan (60 minutes in class)
Assignment
The Resource Challenge should be assigned to students two to five days in advance. An envelope
(as described in the “Materials List” section) should be given to each team, with the directions at
the end attached to the envelope.
Presentations 0:00–0:35 (35 minutes)
Each team is allocated 3 minutes to present their one PowerPoint slide, followed by 3 minutes of
Instructor Resource
Neck, Neck, & Murray, Entrepreneurship: The Practice and Mindset
SAGE Publications, 2018
2
Debrief 0:35–0:55 (20 minutes)
There are two aspects to debriefing: (1) an overall discussion and reflection on the assignment;
1. Reflection: The following questions are suggested:
a. How did you feel when you were given the assignment?
2. Bootstrapping: It’s important to explain to the students that what they experienced was
classic bootstrapping. Bootstrapping is starting a new venture with minimal capital, and
doing so requires a heightened level of resourcefulness. The instructor should summarize
Awards ceremony 0:55–1:00 (5 minutes)
The most profitable team earns a certificate. The instructor should also identify the most creative
Key Takeaways
• The resource base of entrepreneurs is initially determined by who they are, what they
know, what they currently have, and whom they know. Cash is not necessarily the most
needed asset to start something new.
• Generally, the most successful teams are those who never use the $5. Their
resourcefulness and creativity allow them to compete on an entirely different level. Most
Teaching Tips
This exercise was adapted from Tina Seelig at Stanford University. Tina gives very little
Instructor Resource
Neck, Neck, & Murray, Entrepreneurship: The Practice and Mindset
SAGE Publications, 2018
3
Attribution
Instructor Resource
Neck, Neck, & Murray, Entrepreneurship: The Practice and Mindset
SAGE Publications, 2018
4
Instructions
WELCOME TO THE RESOURCE CHALLENGE
How much profit can you generate with only $5 and 2 hours?
This envelope contains seed money. Your team can spend as much time as you want planning,
but once you open the envelope, you have only 2 hours to make as much money as possible
(using only the seed money provided) by the start of class on [date].
How much money is in the envelope?
Can you use additional money obtained elsewhere to get started?
Is there anything not allowed?
• You cannot participate in illegal activities.
Deliverable
Be prepared to present one PowerPoint during class on [date] that answers the following
questions:
• What did you do?
• How much profit did you earn? (Remember: Profit = Revenues − Expenses)!
• What did you learn about resources?
Grading
Group grade will be determined by (1) amount of profit earned and (2) creativity.