eMBA Nov12 Session 3

7/28/2019 eMBA Nov12 Session 3

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Entrepreneurship

Course

EMBA Batch

April 2013

Session 3


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The ProgramSession Topic Curriculum Date

1 Introduction

Welcome the students Explain course and schedule The Contract Students expectation of the course InteractionI the Business Case Study #1 InteractionThe Name Ball Interaction-I the Investor Part 1 Discussion Singapore Incorporated and Entrepreneurship

9th April7.00 pm to 8.15pm

2 Entrepreneurship

Presentation Entrepreneurship Process Presentation Leadership and Entrepreneurship explained InteractionI the Business Case Study #2 Discussion Doing Business in India and China

9th April9.00 pm to 10.15 pm

3 The Entrepreneur

Interaction Jockey Quiz Presentation Myths about entrepreneurship Presentation The ten mistakes a new entrepreneur make InteractionI the Business Case Study #3 Self Assessment - Are you the entrepreneurial type? Discussion Challenges of an Entrepreneur Discussion Guan Xi and networking

Discussion Business entertainment


4 Business Planning

Presentation Generating ideas and opportunities Presentation Types of Business Plan Presentation Making assumptions and identifying constraints InteractionI the Business Case Study #4 Interaction Briefing on The Coffee Stall Business Discussion Business Entertainment


5 Site Visit at DignityKitchen

Understanding of social entrepreneurship Learning the value of business (The Coffee Stall Business)

11th April6.00 pm to 8.30 pm6


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The ProgramSession Topic Curriculum Date

7 Getting Started in Business

Presentation Understanding and evaluating business risks Presentation Taking Risk Presentation Funding Types and Process Presentation Closing the Deal Interaction - I the Investor Part 2 InteractionI the Business Case Study #5 Discussion - My Business Values

13th April2.00 pm to 3.15pm

8 Doing Business

Presentation Business structures & its incorporation

Presentation Processes and System Presentation Maintaining a business Presentation Growth of a Business InteractionI the Business Case Study #6 Discussion Learning from the $100 Experience


9 Success in Business

PresentationDeath of a business Presentation Why business failed Presentation Element of Success in Business

Discussion Bad Business Practice


10 Assessment I the Business Individual Assessment14th April

10.00 am to 11.15 am

11 Assessment The $100 Experience Business Plan Presentation14th April

12.00 pm to 1.15 pm

12 Conclusion

Course Review Result of your Assessment Review of The Contract



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Session 3The Entrepreneur

Christopher Benjamin Consultancy Services 4

InteractionJockey Quiz

PresentationMyths about entrepreneurshipThe ten mistakes a new entrepreneur make

InteractionI the Business Case Study #3Self Assessment Are you the entrepreneurial type?The Name Ball

Discussion

Challenges of an EntrepreneurPreview & AssignmentBackground ReadingQuestions and Answers


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Jockey Quiz

Interaction


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Jockey Quiz

On your understanding of entrepreneurship Multiple choice - 15 questions

Duration - 10 minutes Write down only your student number on the top right

hand cornerAssess the quiz paper of your friend objectively

Play the Jockey



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Jockey Quiz - Example

00

Graduated from the London School of Economics and subsequently becoming

the financial controller for Virgin Records in London

"Malaysian CEO of the Year 2003" in December 2003 and "Malaysian Ernst &

Young Entrepreneur of the Year 2006"

Introduced the first budget no-frills airline to the Malaysians with the tagline

"Now everyone can fly

Tony Fernandes


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Jockey Quiz


No. Description Who Am I?

1

Discovered his interest in software and began programming computers at age 13

He is the chief software architect in the worldwide leader in software

He and his wife donate rigorously to charities all around the world

2

After he got out of the US military he decided he wanted his own department store, so that he can support his family Borrowed $20,000 from his father-in-law and had $5,000 saved from the military to start his business

Became the world's number one retailer

3

At an early age, he learned that he could buy matches in bulk from Stockholm and sell them at a fair price, but a good

profit. At age 17, his father gave him a nice reward for doing well in school and he started his company

Today it is one of the largest, most successful privately held companies in the world, with over 200 stores in 31 countries,

employing over 75,000 people

4

A Kitchen wares salesman

At age 52 and in poor health, took over a family-run restaurant in the desert outside Los Angeles

Develop the concept of a limited menu, fast service and low prices and expand it nationally, in the process creating the

fast-food industry

5

Founded a banking system 30 years ago to lend small amounts of money to the rural poor in Bangladeshi villages

Today has 2,422 branches, employs more than 20,000 people

Awarded the 2006 Nobel Peace Prize winner

6

He hopes of becoming a doctor but abandoned studies to start his own business at just 19 years of age.

He founded his company from his University of Texas dorm room in 1984 with just $1000

Created a new model for PC sales. He combined the just-in-time production techniques pioneered by Toyota with a

direct-to-customer sales system

7

His first business venture were growing Christmas trees and raising budgerigars)

After the failed endeavor at the age of 16, he had begun his first successful company - a student magazine

By the age of 20, he had founded a small mail order record retailer called Virgin, and shortly thereafter, he opened a

record shop on Oxford Street in London

Bill Gates

Sam Walton

Ingvar Kamprad

Ray Kroc

Muhammad Yunus

Michael Dell

Richard Branson


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Jockey Quiz


No. Description Who Am I?

8

A avid artist from an early age and producing a silent cartoon called Plane Crazythat featured a new character named

Mickey Mouse

He won 26 Oscars over the course of his career, the most awards given to any individual

Opened the worlds first theme park in 1955 unlike any other the world had seen.

9

started tertiary education to become a teacher, married and make a living running a restaurant and a hotel

She created cosmetics out of every ingredient that she stored in her garage and finance the store using her hotel as

collateral

Today she has over 1,980 stores and more than 77 million customers in 50 different markets serving customers in

over 25 different languages

10

Forced to leave school at 15 and founded a job in a trading company

After several financial setback, he started his first business manufacturing plastic flowers

Often referred to in Hong Kong as Superman because of his business prowess

11

He started as a front desk clerk, at The Cecil Hotel at a salary of Rs 50 per month.

He acquired his first hotel by mortgaging his wife's jewelry and all his assets

He was the first to employ women in the hospitality sector

12

He started his entrepreneurial career by selling bhajias to pilgrims in Mount Girnar over the weekends

He worked in Yemen as a gas-station attendant, and as a clerk in an oil company.

He returned to India in 1958 with Rs 50,000 and set up a textile trading company.

13

Grew up dreaming of being "a soldier, a policeman or a scientist" but he wound up teaching English in his hometown

instead

Failed college entrance examinations twice

Created the worlds largest online B2B marketplace

14

At a young age, displayed an amazing aptitude for both money and business with an uncanny ability to calculate

columns of numbers off the top of his head. Filed his first tax return at the age of 13

Apply to Harvard Business School and got rejected

Become a millionaire at the age of 32 and today is one of the richest man in the world

15

Born in a small village in Rajasthan, India and move to live in United Kingdom

Started his own steel business by buying a rundown plant in Indonesia

Created the largest steel group in the world

Walt Disney

Anita Roddick

Li Ka-shing

M.S. Oberoi

Dhirubhai Ambani

Jack Ma

Warren Buffet

Lakshmi Mittal


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Jockey Quiz Tie break

What does S P in S P Jain stand for?

Who are Christopher and Benjamin in theChristopher Benjamin Consultancy Services?

Where in Singapore is Palau Blakang Mati?



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The 5 Myths about Entrepreneurship

Presentation


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The 5 Myths About Entrepreneurs

1) The Risk Taking Myth:

Most successful entrepreneurs take wild, uncalculated risks in starting their companies.

Why is this wrong?

2) The High-Tech Myth:

Most successful entrepreneurs start their companies with a breakthrough invention, usually technological in nature.

Why is this wrong?

3) The Expert Myth:

Most successful entrepreneurs have strong track records and years of experience in their industries.

Why is this wrong?

4) The Strategic Vision Myth:

Most successful entrepreneurs have a well developed business plan and have researched their ideas before takingaction.

Why is this wrong?

5) The Venture Capital Myth:

Most successful entrepreneurs start their companies with millions in venture capital to develop their idea, buysupplies and hire employees.

Why is this wrong?

by Dr. Peter Strachan The 5 Myths about Entrepreneurs


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The Risk Taking Myth

Most successful entrepreneurs take wild, uncalculated

risks in starting their companies.

Risk is part of doing business

Professional risk most entrepreneurs are not well-established

Financial risk most entrepreneurs have few if any financialassets

Highest risk often comes later in the business, not at the start

Most risk is carried by employees, suppliers, customers


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The High-Tech Myth

Most successful entrepreneurs start their companies with

breakthrough invention, usually technological in nature.

While many of us think of the technology boom and high tech start-ups, theFortune 500 lists a variety of types of companies. Many successful newbusinesses found a way to market an existing product in a new fashion or toa new customer base. Think of:

Starbucks

McDonalds

Dell

Pantaloon

Shoppers Stop

The key is having the right product at the right time.


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The Expert Myth

Most successful entrepreneurs have strong track records

and years of experience in their industries.

40% of Inc. 500 founders had no prior industry experience;

One-third of Inc. 500 founders were out of work when they started their companies.

Examples:

Dato Tony Fernandes and Air Asia

Steve Wozniak was an undistinguished engineer at HP

Donald Trump and the Taj Casino

George Quek of BreakTalk has no bakery qualification


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The Strategic Vision Myth

Most successful entrepreneurs have a well developed business

plan and have researched their ideas before taking action.

Only 4% of Inc. 500 companies used any sort of system research todevelop their business ideas;

First attempt is often not the product that eventually brings success(but developing the entrepreneurial mindset at the beginning is themost important)


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The Entrepreneur

PresentationChristopher Benjamin Consultancy Services 18


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The Entrepreneur



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The Entrepreneur

There are many reasons why people seek to

be entrepreneurs

Make more money Fulfill their dreams

Prove that they are more capable

Need for achievement Independence Be their own Boss

Create employment opportunity for self and others



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Who is the Entrepreneur?

INVENTOR ENTREPRENEUR

PROMOTERMANAGER /

ADMINISTRATOR

LOW

HIGH

HIGH

CREATIVITY &

INNOVATION

GENERAL MANAGEMENT SKILLS, BUSINESS

KNOW-HOW & NETWORK

Reference: Jeffry Timmons New Venture Creation


Lee Kuan Yew ?

Liew Mun Leong (Capitaland)

Goh Chok Tong ?

Lee Hsieh Lung ?

Ho Ching ?

Richard Li (PCCW)

Koh Boon Hwee? (DBS Bank)


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there has been increased interest in entrepreneurship in Singapore

even though it still lags other countries


0

5

10

15

20

25

30

35

40

45

50

Australia Singapore Malaysia New Zealand

%

Percentage of people

who want to be their

own Boss

Source: Business Trends Survey, 2002

The Entrepreneur


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Do realize that starting a business is still a risky

endeavor

>40% of adults think of starting a small business

50% of these 10% close within 4 years

Note: US statistics from Frank Tarkenton, What losing taught me about winning.

The Entrepreneur



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Reasons why you DID NOT

take up entrepreneurship

PresentationChristopher Benjamin Consultancy Services 24


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Fear of the Unknown

Lack of information

Threats to status

Threats to established skills and competencies

Fear of Failure

Reluctance to let go

Lack of Perceived benefits

Reasons why you DID NOT take up

entrepreneurship



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History and Previous custom

Fear of looking stupid

Feeling vulnerable and exposed

Threat to self esteem

Lose of team relationships

High anxiety

STRESS

Reasons why you DID NOT take up

entrepreneurship



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The ten mistakes a NEW

entrepreneur makes

Presentation



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1. Getting into the business for the wrong reasons.

Many people decide to start a business because they have become disillusioned with their

current job or have lost their position due to a layoff or termination. While the entrepreneurial

route is certainly one option to consider, it is often a reaction to what has felt like a negative

situation, i.e., If I start my own thing, no one can fire me! There are a host of other factors to

consider before starting your own business. Do your due diligence before you leap into thedeep end.

2. Quitting your day job too soon.

Starting a business can be expensive, and it is rarely profitable in the beginning. Dont cut off

your source of income until you have yourself established with a game plan for a new one.

3. Postponing incorporation.Its tempting to simply set up shop as a sole proprietor because its easy, but its also risky. All

of your personal assets are at risk and there is no line of demarcation between you and your

enterprise. Invest the time and resources necessary to create a business structure that stands

separate and on its own

The ten mistakes a new

entrepreneur makes



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4. Thinking you can do it all yourself.

When you work for an established organization in a regular job, you typically have a defined

role with a limited scope. People setting up a new business are often tempted to try to do it all in

order to cut costs and save time. Do the things you do well and hire out the rest.

5. Not having a well-defined target market.

Make sure you are clear about who you will serve and how, or else you may end up serving noone.

6. Over-promising.

In starting a business, many people are so eager to find customers that they create expectations

that are impossible to fulfill. Make sure you are setting expectations that you can actually

deliver.

7. Emphasizing packaging over substance.

Theres something exciting about getting your first set of business cards and taking a Web site

live for the first time that is exhilarating. On the other hand, many people invest big dollars on

things that are just not necessary in the beginning. Consider where you want to invest your

resources before mounting a glitz campaign that may be more than you need.


entrepreneur makes



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8. Working in the business instead of on the business.

Many new business owners get so knee-deep in delivering products or services that they

neglect to set up the management structures and systems that are necessary for sustaining a

business. Take the time to create the container in which your products and services will reside

and then manage that structure.

9. Incurring too much debt.It can be tricky to determine what constitutes a reasonable debt load in a new business. But it

is important to have some personal answers. What is your own risk tolerance? How much debt

can you take on before you begin losing sleep at night? How much (if any) of your own funds

are you able or willing to use to seed the business? It will be hard for your new enterprise to

flourish if you are overwhelmed by money worries.

10. Letting the business consume your life.

One of the best reasons for becoming an entrepreneur is to add to your quality of life. Dont

allow the business that you worked so hard to establish to leech into your personal life. Build

strong boundaries that will enable you to have a life that isnt just about your work; both you

and your business will be better served.By Barbara Poole

Career Coach


entrepreneur makes



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Are you the Entrepreneur type?

Interaction



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Interaction Are you the Entrepreneur type? Self Assessment

Better measure your entrepreneurial potential

50 Questions

1= Totally Disagree

2=Somewhat Disagree

3=Somewhat Agree

4=Totally Agree

Developed by the Canadian Business Centre for Entrepreneurship Development.

Based on 3 Criteria Motivation, Aptitudes and Attitudes

Add up your score at the end and compare with the industrial means score



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Interaction Are you the Entrepreneur type? MOTIVATION

Need for achievement / success

Power / control appeal

Need for challenges / ambition

Self-sufficiency / freedom ATTITUDES

Perception to act upon ones destiny

Action oriented

APTITUDES

Perseverance / Determination

Self-confidence / Enthusiasm

Tolerance towards ambiguity /

Resistance to stress

Creativity / Imagination

Action oriented



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Challenges of an Entrepreneur

DiscussionChristopher Benjamin Consultancy Services 34


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Findings for 2007

Survey of 1500 start-up

Conducted by Action Community for Entrepreneurship(ACE) and DP Information Group

Started on own funding

Education and starting a business may have a correlation

Over 50s less likely to do a start-up

Reasons why you DID NOT take up entrepreneurship


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Findings 2006 (%) 2007 (%)

Not Profitable 37 58

Age of founders

30 and Under 20 19

31 40 45 46

41 50 27 28

Over 50 8 7

Educational Level

Secondary or lower 30 26

Diploma and A Level 28 36

Bachelor degree 26 23

Masters 16 15

Start-up Funding (some overlapping)

Own Money 90 84

From friends and family 23 12

Term loans 12 9

Bank overdraft 11 6

Venture capital 5 4

Other sources 17 10

Source : DP Information Group


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Being Employed to Self EmployedBeing Employed

Fixed income range

Fixed scope of work

Fixed hours of work Fixed circle of network

Fixed prospect

Self Employed

Variable component of incomesources

Variable range of work scopeand greater learning

Variable working hours butlonger / flexible hours

Variable circle of network

Variable prospects



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Worried about $$$- Samads Income Component


IncomeComponents

Halalcertifiedassessor

Footballreferee

Coach ata Primary

school

Traineron foodhygiene

Footballjersey

designer

Internet

footballtourorganizer

Basic

BonusAllowance

Miscellaneous


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Worried about $$$- Carols Income Component


IncomeComponents

SafetyOfficer

PropertyAgent

CafOwner

RestaurantDesign

Consultant

Basic

BonusAllowance

Miscellaneous

Income is limited by your skill base and time


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Worried about $$$


IncomeComponents

Consultancy

Assessment

Teaching

Book Selling

Mentoring

Merger /AcquisitionBasic

BonusAllowance

Miscellaneous

Need to build up your competencies and charge for it


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Worried about $$$


Attain the Minimum income

$

Time(Per period of Time)

Bonuses


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Want and Need


Youth starting upstall in Vivocityshopping mall

Ladies starting up

stall on the street ofMumbai

One WANTS to be and the other NEEDS to be


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The Entrepreneur Rollercoaster

https://www.youtube.com/watch?v=XKocnAS345Uhttps://www.youtube.com/watch?v=XKocnAS345U


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Case Study #3

Family Health Centre



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Interaction:I as the BusinessScenario:

You are the owner of a Family Theme Health Center in Shenzhen,

China. Your started the business eight years ago with a group of ex-army

officers. The business has grown from strength to strength and is now a

top health centre for family.

Due to some shareholders problems, you wanted to sell off your shares

in the business.

The problem is due to the recent investigation by the authority on

corruption and you want to be out of the business. The reason you give ispoor health and migration oversea for your childs education.

You valued your 10% stake for USD 250,000 .

C

hristopherBenjaminConsultancyServices



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Interaction:I as the Business



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Interaction



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Interaction Are you the Entrepreneur type? Self Assessment

Better measure your entrepreneurial potential

50 Questions

1= Totally Disagree

2=Somewhat Disagree

3=Somewhat Agree

4=Totally Agree

Developed by the Canadian Business Centre for Entrepreneurship Development.

Based on 3 Criteria Motivation, Aptitudes and Attitudes

Add up your score at the end and compare with the industrial means score



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Interaction Are you the Entrepreneur type? MOTIVATION

Need for achievement / success

Power / control appeal

Need for challenges / ambition

Self-sufficiency / freedom

ATTITUDES

Perception to act upon ones destiny

Action oriented

APTITUDES

Perseverance / Determination

Self-confidence / Enthusiasm

Tolerance towards ambiguity /

Resistance to stress

Creativity / Imagination

Action oriented



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Students profile ( as per 200 students)

Industrial Means

Motivation 56 to 72

Aptitudes 54 to 63

Attitudes 22 to 28

Total Score 132 to 163

Entrepreneurs (as per Canadian Entrepreneurship study)Industrial Means

Motivation 58 to 75

Aptitudes 62 to 70

Attitudes 29 to 38Total Score 149 to 183


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The Name Ball

1. The Name Ball will be the person with the highest votes.2. The voting criteria will be "The person "Most Deservedly" from your class to

have the Name Ball". You and you alone define the meaning of "MostDeservedly.

3. One person one vote.4. Self nomination is NOT allowed.5. Submission is by Friday Midnight. You can submit anytime before the date.6. Once submitted you are not allowed to change.7. Class participation 5 marks No submission ZERO mark8. Submission will be "Your Name = XXXXXXXX; Your choice = XXXXXXXXX

(full name)" to this email address.9. In the event of a tie, the tie break will be a trial of three IQ challenges. - "Theegg drop"/ "Set the mahjong" / "Break the code

10.The Name Ball will be presented on the final lesson.

Have Fun



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Background Reading


The 5 Myths about Entrepreneurs by Peter Strachan


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Questions & AnswersMy email address: [email protected]

eMBA Nov12 Session 3

Documents

Transcript of eMBA Nov12 Session 3