Chapter 1
Concept of entrepreneur
- Person with high need for achievement
- Innovator
- Person who shift resources from an area of low productivity to high productivity
- Person who act as agent in transforming demand into supply
- An economic agent who transform resources into product and services
- The pursuit of opportunity without regard to resources currently controlled
Advantages of entrepreneur
- Flexible time
- Better income
- Learn more
- More control as a leader
- exciting
Entrepreneur Process
- Discovery
- Concept Development
- Resourcing
- Actualization
- Harvesting
Types of entrepreneur
- Social entrepreneurship (Create business on solving the social problem)
a. Owner and takes own decisions
- Intrapreneurship (create business within existing organization)
a. A manager, salaried employee, executes decision with the concurrence of owner.
- Corporate entrepreneurship
- Innovative entrepreneurs
- Imitating entrepreneurs
- Fabian entrepreneur
- Drone Entrepreneurs
Culture diversification of entrepreneur
- Young entrepreneur
- Woman entrepreneur
- Minority-owned entrepreneur
- Immigrant entrepreneur
- Part-time entrepreneur
Entrepreneur pull and push factors
Pull Factors | Push |
Perception of advantages | Job Dissatisfaction |
Spotting an opportunity | Jobless |
Government policies | Lay off |
Motivation from success story | Retirement |
The deadly mistake of entrepreneur
E.g. poor management / lack of experience / poor financial control…...
Entrepreneur common myths
- Entrepreneurs are born not made
- Entrepreneur is gambler
- Entrepreneur is only motivated by money
- Entrepreneur is young and energetic
- Entrepreneurs love spotlight
- To be an entrepreneur, one needs money only
- To be an entrepreneur, a great idea is the only ingredient
Personality factors of the Entrepreneur
(a) Initiative (does things before being asked for)
(b) Proactive (identification and utilization of opportunities)
(c) Perseverance (working against all odds to overcome obstacles and never complacent with success)
(d) Problem-solver (conceives new ideas and achieves innovative solutions)
(e) Persuasion (to customers and financiers for patronization of his business and develops & maintains relationships)
(f) Self-confidence (takes and sticks to his decisions)
(g) Self-critical (learning from his mistakes and experiences of others)
(h) A Planner (collects the information prepares a plan, and monitors performance)
(i) Risk-taker (the basic quality).
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Chapter 2
Level of Ethical
- The Law
- Policies and Procedures
- Morality
Social Responsibility
- Employee
- Drug testing
- AIDS
- Prevent sexual harassment
- Privacy
- Cultural diversity-SPLENDID
- Study
- Plan
- Lead
- Encourage
- Notice
- Discussion
- Inclusion
- Dedication
- Customer
- Safety
- Know
- Be heard
- Education
- Choice
- Investors
- An attractive return
- Accurate financial report
- The community
- Get jobs
- The environment
- Reduce
- Reuse
- Recycle
5 Reasons for Accelerated Business Growth
- Information technology has given businesses the tools to solve complex Growth problems.
- Information technology allows businesses to make better decisions.
- Information technology has improved marketing.
- Information technology has improved customer support.
- Information technology has improved resource management.
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Chapter 3
Opportunity Defined
· An opportunity is a favorable set of circumstances that creates a need for a new product, service, or business.
· Characteristic
- Attractive
- Timely
- Durable
· How to Identify opportunity
- Observing trends
- Economic Forces
- Social Forces
- Technological Advances
- Political or Regulatory Changes
- o Solving a problem
- o Finding gaps in the marketplace
· Personal Characteristics of the Entrepreneur
- Prior Industry Experience
- Cognitive Factors
- Social Networks
- Creativity
- Steps (Preparation→Incubation→Insight→Evaluation→Elaboration)
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Chapter 4
· Strategic Management
- Develop a vision and translate it into a mission statement (purpose value)
- Assess strengths and weaknesses
- Scan environment for opportunities and threats
- Identify key success factors
- Analyze competition
- Competitor Analysis
- Direct competitor (same product)
- Significant competitor (some of the similar product)
- Indirect Competitor （same of similar products in small areas）
- Create goals and objectives
- Goals
- Objectives
- Specific
- Measurable
- Assignable
- Realistic (yet challenging)
- Timely
- Written down
- o Formulate strategies
- o Translate plans into actions
- o Establish accurate controls
- Knowledge management
- Intellectual capital: comprised of
- Human capital
- Structural capital
- Customer capital
· Competitive advantage: Core competencies (a unique set of skills, knowledge, or abilities)
· Three strategic option
- Cost leadership
- Differentiation
- Focus
·
S skill needed by manager
- People management skill
- Influencing skill
- Communication Skills
- Negotiation skills
- Project management skill
· Porter five forces
- Threat of substitute product
- Threat of new entrants
- Bargaining power of suppliers
- Bargaining power of customers
- Competitive rivalry amount
· Creating a Canvas
- Customer Segments (CS)
- Value Proposition (VP)
- Channels (CN)
- Customer Relationships (CR)
- Revenue Steams (R$)
- Key Resources (KR)
- Key Activities (KA)
- Key Partnerships (KP)
- Cost Structure (C$)
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Chapter 5
Selecting a Market and Establishing a Position
Segmenting the market → Selecting a target Market → Crafting a unique positioning strategy
Marketing Mix - 4P in Entrepreneur
o Promotion
- Viral Marketing - It is a commonly used network marketing method, often used for website promotion, brand promotion,
- etc. Viral marketing uses the principle of user word-of-mouth communication
- Guerrilla Marketing - Since the main goal of guerrilla marketing is to establish a brand by establishing a unique and long-lasting connection with the audience.
- Important element – Promise, Investment, Coherent, confident, patient, continuedly, patient, dependence…...
o
Place
- Distribution channel
- § Direct selling or Selling through intermediary
o
Product
- how is the product feel?the form, function,satisfaction and so on
- etc. the appearance, benefit,brand, packaging......
o
Price
- Cost-based pricing
- Value-Based pricing
Advertisement
- Purpose
- Target audience
- Medium
- Create advertising
- Select place and time
- Fulfill expectations
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Elements in Entrepreneur
- CAPITAL
- Knowledge
- Market/demand
- Cost
- financial
- PERSONAL ASSETS
- SPAN OF CONTROL
- SHARING INFORMATION
- ……
Types of business ownership
- Sole proprietorship
- Partnership
a. General partnership
i. A partnership in which all partners have unlimited personal liability and take full responsibility for the management of the business.
b. limited partnership
i. A partnership in which the partners’ liability is limited to their investment.
- Corporations
a. Private company
i. Limited by shares
ii. More than 2, less than 50
b. public company
i. limited by shares
ii. more than 7 and no max limit
iii. obtain capital by selling shares to public
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Chapter 7
There are six enablers of small business innovation:
- Passion
- Customer connection
- Agility and adaptation
- Experimentation and improvisation
- Resource limitations
- information sharing and collaboration
Creativity: the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation: the ability to apply creative solutions to those problems and opportunities to enhance or to enrich people’s lives
Barriers to Creativity
- Blindly following the rules
- Searching for the one “right” answer
- Focusing on “being logical”
- Fearing looking foolish
- Fearing mistakes and failure
How to Enhance Creativity
- Expect failure and learn from it
- Provide creativity training
- Reward creativity
- Talk with customers
- Develop a procedure for capturing ideas
The Creative Process
- Preparation
- Investigation
- Transformation
o Convergent thinking: the ability to see the similarities and the connections among various and often diverse data and events
o Divergent thinking: the ability to see the differences among various data and events
- Incubation
- Illumination
- Verification
- Implementation
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Chapter 8
Sources of capital
- Family funds
- Bank or other financial institutions
- Personal funds
Bank loan view for
- Character
- Capacity
- Capital
- Conditions
- Collateral
The parties who provide facilities and assistance
Financial assistant:
- MINISTRY OF ENTREPRENEUR DEVELOPMENT
- DEVELOPMENT AND INFRASTRUCTURE BANK MALAYSIA BERHAD
- CREDIT GUARANTEED MALAYSIAN CORPORATION LIMITED
- MAJLIS AMANAH RAKYAT
Facilities assistant:
- Mara
- Bank Pembangunan Malaysia.
- Urban Development.
- MIEL
- State Development Corporation
- Local Government
Types of business support
- Financial
- Technical
- Management of entrepreneur training
- Advisory service
- Location
- Marketing
- Research and development
- Information
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