university of south-east asia. chapter 1 foundations of entrepreneurship lecturer: lim delux 2

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UNIVERSITY OF SOUTH-EAST ASIA

CHAPTER 1

Foundations Of Entrepreneurship

Lecturer: Lim Delux

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Learning Objective

After you learned this chapter, you will be able to:

- Define the role of the entrepreneur in business- in the United States and across the world

- Describe the entrepreneurial profile and evaluate your potential as an entrepreneur

- Describe the benefits and drawbacks of entrepreneurship

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Learning Objective


- Explain the forces that are driving the growth of entrepreneurship

- Explain the cultural diversity of entrepreneurship

- Describe the important role small businesses play un our nation’s economy

- Describe the 10 deadly mistakes of entrepreneurship and explain how to avoid them

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Learning Objective


- Put failure into proper perspective

- Explain how entrepreneurs can avoid becoming another failure statistic

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Chapter Outline

The world of the entrepreneur

What is an entrepreneur?

The benefits of entrepreneur

The potential drawbacks of entrepreneurship

Behind the boom: what’s feeding the entrepreneurial fire?

Cultural diversity of entrepreneurship6

Chapter Outline

The power of small business

The 10 deadly mistakes of entrepreneurship

Putting failure into perspective

How to avoid the pitfalls

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Growing numbers of the people are realizing their dreams of owning and operating their own businesses.

The entrepreneurial spirit is the most significant economy’s development

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Downsizing has all but destroyed the long standing notion of job security in large cooperation

Next, most of people view small beautiful.

When you launch a company it means

“ Life without a safety net-thrilling and dangerous”

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An entrepreneur is one who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them.

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- Desire for responsibility: prefer to be in control of their resources and use those resources to achieve self-determined goals

- Preference for moderate risk: not like gambler: Entrepreneur sees the situation from different perspective and believe their goals realistic and attainable. 11

What is an entrepreneur?- Confidence in their ability to succeed:

They tend to be optimistic for success- Desire for immediate feedback: Doing

business is challenging so they look for feedback

- High level of energy: More energetic than average person

- Future orientation: They are looking forwards to the future opportunities

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- Skill at organizing: They know how to put the right person at the right place for accomplishing the goals

- Value of achievement over money: Misconception “ Entrepreneurs are driven by the desire to make money”

Truly the achievement is primary force. So money is the symbol of achievement

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The benefits of entrepreneurship

Opportunity to create your own destiny: owing a business provides entrepreneurs the independence and the opportunity to achieve what is important to them

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Opportunity to make difference: Because they see an opportunity to make difference in a cause that is important to them.

Opportunity reach your full potential: sense of empowerment

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Opportunity to reap impressive profits: most of entrepreneurs become super-rich and do become quite wealthy

Opportunity to contribute to society and be recognized for your effort:

Opportunity to do what you enjoy and have fun at it (Interest in them)

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The potential drawbacks of entrepreneurship

Uncertainty of income:

Risk of losing your entire investment

Long hours and hard work

Lower quality of life

High level of stress

Complete responsibility

Discouragement17

Behind the boom: what’s feeding the entrepreneurial fire? Entrepreneurs as heroes

Entrepreneurial Education

Demographical and Economic factors

Shift to a service Economy18

Behind the boom: what’s feeding the entrepreneurial fire? Technological advancement

Independent lifestyle

E-commerce and the www

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The cultural diversity of entrepreneurship

Young Entrepreneurs

Women Entrepreneurs

Minority Enterprises

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The cultural diversity of entrepreneurship

Immigrant Entrepreneurs

Part-Time Entrepreneurs

Home-Based Business

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The power of small business

Small business not only offers job to people but the most important things are that employees’ training and development. Moreover it is the incubator for new ideas, products, services

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Management mistakes: poor management

- Poor planning, organizing, leading, controlling

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Lack of Experience

Small business managers need to have experience in the field they want to enter. Film Stair shop in Cambodia is the good example

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Poor Financial Control

Business success requires having a sufficient amount of capital on hand at the start up. When the company is under the capitalization this causes the company failure because it can generate the negative cash flow

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Weak Marketing efforts: Business needs much of effort in marketing meant that building a powerful marketing plan.

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Failure to develop a strategic plan

If business do not develop a strategic plan, there is no clear strategy serving to maintain competitive edge in the market place

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Uncontrolled Growth: Growth means a natural, healthy and desirable part of any business enterprise. It must be planned and controlled. When there is an expansion of business, what happen?

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Poor Location

If location business is chosen without proper study, investigation, and planning, the result will be …

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Improper Inventory Control

Managerial responsibilities play an important role. Shortage stock, over stock

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Incorrect pricing

Must understand how much it costs:

- High Price

- Low Price

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Inability to make the entrepreneurship transition

After start-up the business growth will different styles of management. Making over the entrepreneurial hump is no guarantee of business success

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Putting failure into perspective

Entrepreneurs use their failures as a rallying points and as a mean of refocusing their business ventures for success

- Failure is a part of creative process

- Entrepreneurs require both persistence and resilience: back from failure

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Know your business in depth: Right types of experience in the business you plan to start. Get the best education in business area

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Develop a solid business plan

Well-written business plan is a crucial ingredient in preparing for business success.

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Manage financial Resource

- Have an adequate of capital for start-up

“ Estimate how much capital you need to get the business going and then double that figure”

- Have enough cash to pay the bills and obligations

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Understand financial statements

- Income statement

- Changes in owner’s equity

- Balance sheet

- Cash flow

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Learn to manage people effectively

- Well training

- Well motivated employees

- Attracting talented and skillful employees

- Keeping the best employees

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Keep in tune with yourself

Starting business is like running a marathon. Entrepreneurs need to be physically and mentally strength

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university of south-east asia. chapter 1 foundations of entrepreneurship lecturer: lim delux 2

Documents

power of small business

new business

learning objectiveafter

goalsvalue of achievement

misconception entrepreneurs

significant opportunities

symbol of achievement

failure statistic