Roles and Contributions of Entrepreneurs to the Sustainable of the Economy: Case Study of Joyce...

Faculty of Business Administration

Department of Accounting & Information Systems

BBA Program

Term Paper on

“Roles and Contributions of Entrepreneurs to the Sustainable

Development of the Economy: Case Study of Joyce Clyde Hall & Stefan

Persson”

Submitted by:

Group-02; Section-B

Session: 2006-07

BBA 2nd Batch

Submitted to:Md. Nazmul Islam

Lecturer, Department of Accounting & Information Systems

Date of Submission: 19 January, 2012

Copyright: Shaheen mahmud/+8801713798993/[email protected]

Group Members:

Group-02

Serial Name Roll

1 Md. Shaheen Mahmud 06691052

2 Md. Saiful Islam 06691030

3 Md. Shafiul Alam 06691118

4 Jesmin Ferdous 06691192

5 Zahirul Islam 06691092


January 19, 2012

Md. Nazmul Islam

Lecturer, Department of Accounting & Information Systems

Jagannath University, Dhaka

Subject: Submission of Term Paper

Dear Sir,

We would like to take the opportunity to thank you for giving us a chance to prepare an

assignment on “Roles and Contributions of Entrepreneurs to the Sustainable Development of

the Economy” and “Case Study on Successful Entrepreneurs”. It helped us a lot to sharpen

our ideas, knowledge and analytical ability regarding entrepreneurial aspects. The working

experience to accomplish the assignment substantially helped us to describe the major

functional roles played by the entrepreneurs in economic perspective. We want to submit our

assignment for your kind consideration. We would like to beg your pardon for ours

limitation.

Thanking you for your kind supervision.

Sincerely yours,

Group-02, Section B

Session: 2006-07

BBA 2nd Batch


ACKNOWLEDGEMENTS

We would hereby like to express our appreciation to all those who have supported me with

motivation and spirit for accomplishing this dissertation. We are grateful to all who supported

us.

First, we would like to express our gratitude to father, mother, sister, and brothers for

providing the spirit of motivation through the duration of the academic year as well as our

lifetime. Special thanks to our supervisor, Md. Nazmul Islam for his help and guidance

alongside improving the quality of this term paper.

We are also deeply appreciative of the responses of some people for taking their limited time

in participating in this term paper and without whose constructive comments and response we

would not have been able to accomplish this paper. We are also deeply indebted to our

friends who gave us a good piece of advice and supporting the spirit of motivation to

accomplish the completion of this dissertation.


EXECUTIVE SUMMARY

This paper presents the results of a comparative study on roles and contributions of

entrepreneurs to the sustainable growth of the economy. An entrepreneur is a person who

perceives opportunities, organizes the resources needed to exploit the opportunity and sets up

an enterprise. The process of setting up an enterprise is called entrepreneurship.

The entrepreneur who is a business leader looks for ideas and puts them into effect in

fostering economic growth and development. Entrepreneurship is one of the most important

inputs in the economic development of a country. The entrepreneur acts as a trigger head to

give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not

only in the development of industrial sector of a country but also in the development of farm

and service sector.

This paper is an assigned job as a partial fulfillment of course requirement by honorable

Course teacher Md. Nazmul Islam, Lecturer, Department of Accounting & Information

Systems, Faculty of Business Administration, Jagannath University. Our term paper is on

“Roles and Contributions of Entrepreneurs to the Sustainable Development of the Economy:

A Case Study on Successful Entrepreneurs”. We are discussed about various aspects

regarding those concerns. While discussing about these we also provide a lots of information

and examples regarding those perspective.


TABLE OF CONTENTS

Serial No. Particulars Page

1 Introduction 1

2 Objectives of the Study 2

3 Methodology of the Study 2

4 Limitations of the Study 3

5 Literature Review 6-21

6 Findings and Analysis 22-62

7 Recommendations 63

8 Conclusions 65

9 References 67-68


1. INTRODUCTION

Entrepreneurs act as the locomotives for the economic development of the country. There are

various roles which Entrepreneurs play in the economy. Through Entrepreneurship, new

businesses and opportunities are explored. Entrepreneurship also promotes efficient

mechanism of production like right allocation of capital, labor and technology.

Entrepreneurship increases the innovation in an economy which brings evolution in the social

system. Entrepreneurship also results in the growth of the industrial sector which ultimately

increases the economic growth of the economy. Entrepreneur also explores resources and

makes them valuable for the economy.

The accomplishments of entrepreneurs in our modern world have been possible because of a

climate of individual freedom that is so rare in human history. The society that does not

honor entrepreneurial accomplishment will find fewer able people engaged in wealth

creation. History has shown time and again that economies that appreciate the benefits

created by entrepreneurs flourish, while those that devise laws and regulations aimed at

seizing the entrepreneurs' rewards founder.


2. OBJECTIVES OF THE STUDY

After completing this term paper we should be able to:

Inculcate the Desire to take up Entrepreneurship as a Career.

Learn about the Functions performed by an Entrepreneur.

Outline the qualities of a successful entrepreneur.

Explain the issues and problems faced by entrepreneurs.

Understand the Roles and Contributions of Entrepreneurs to the Sustainable

Development of Economy.

3. METHODOLOGY OF THE STUDY

The term paper is completed based on the information extracted from different sources

collected by using a specific methodology. In this case, we depend largely on various

websites in relating to entrepreneurship and its role in economy. The information of

successful entrepreneurs are collected from their company’s website and different other sites.

Research papers, annual reports, economic index, surveys, newspaper articles, books etc. are

also help us to complete this term paper.


4. LIMITATIONS OF THE STUDY

The report is not free from some limitations. Following limitations have faced during the

report and the time of working & data collection:

Lack of knowledge and experience

Lack of communication facilities

Lack of information regarding local entrepreneurs

Lack of adequate relevant information

Lack of up-to-date information

As the report is mostly based on website, there may be some mismatch with the actual

information.


Capacity and willingness to undertake conception, organization, and management of a

productive venture with all attendant risks, while seeking profit as a reward is

entrepreneurship. In economics, entrepreneurship is regarded as a factor of production

together with land, labor, natural resources, and capital. Entrepreneurial spirit is characterized

by innovation and risk-taking, and an essential component of a nation's ability to succeed in

an ever changing and more competitive global marketplace.

Entrepreneurs act as the locomotives for the economic development of the country. There are

various roles which Entrepreneurs play in the economy. Through Entrepreneurship, new

businesses and opportunities are explored. Entrepreneurship also promotes efficient

mechanism of production like right allocation of capital, labor and technology.

Entrepreneurship increases the innovation in an economy which brings evolution in the social

system. Entrepreneurship also results in the growth of the industrial sector which ultimately

increases the economic growth of the economy. Entrepreneur also explores resources and

makes them valuable for the economy. For example, economic development of Estonia is

contributed to the development of enterprise sector, which shows development because of

contributions of Entrepreneurs.

The idea that entrepreneurship and economic growth are very closely and positively linked

together has undoubtedly made its way since the early works of Schumpeter (1911). An

increase in the number of entrepreneurs leads to an increase in economic growth. This effect

is a result of the concrete expression of their skills, and more precisely, their propensity to

innovate. Schumpeter has already described this innovative activity, “the carrying out of new

combinations”, by distinguishing five cases:


(1) The introduction of a new good – that is one with which consumers are not yet familiar –

or of a new quality of a good.

(2) The introduction of a new method of production, that is one not yet tested by experience

in the branch of manufacture concerned, which need by no means be founded upon a

discovery scientifically new, and can also exist in a new way of handling a commodity

commercially.

(3) The opening of a new market that is a market into which the particular branch of

manufacture of the country in question has not previously entered, whether or not this market

has existed before.

(4) The conquest of a new source of supply of raw materials or half manufactured goods,

again irrespective of whether this source already exists or whether it has first to be created.

(5) The carrying out of the new organization of any industry, like the creation of a monopoly

position (for example through trustification) or the breaking up of a monopoly position.

Through his innovative activity, the Schumpeterian entrepreneur seeks to create new profit

opportunities. These opportunities can result from productivity increases, in which case, their

relationship to economic growth appears quite clearly. Moreover, the disequilibrium created

by the entrepreneur can be propitious for additional innovations and profit opportunities.

Therefore, more entrepreneurs mean more growth, which in turn leads to more

entrepreneurs… The phenomena seem to be self-feeding.

Kirzner (1973) described the entrepreneur not primarily as someone who initiates change, but

who facilitates adjustment to change by spotting opportunities for profitable arbitrage.

Knight (1921) emphasized the uncertainty attached to the exploitation of opportunities.


According to Schultz (1975:843) the entrepreneur is anyone who can ‘perceive an economic

disequilibrium, evaluate its attributes ... and if it is found to be worthwhile to act, reallocate

their resources’.

Kanbur (1979:773) has the notion of the entrepreneur as one who ‘manages the production

function’ by paying workers wages (which are more certain than profits) and shouldering the

risks and uncertainties of production.

The way in which entrepreneurs discharge these functions would often, although not

exclusively, be through the creation of a new firm, as defined by Hart (2003:5) who sees

entrepreneurship essentially as the ‘process of starting and continuing to expand new

businesses’. Most new firms are small firms, so that a substantial part of the entrepreneurship

literature is concerned with the dynamics of SMEs.


5.1 Roles and contributions of entrepreneurs to the sustainable development of the economy

The industrial health of a society depends on the level of entrepreneurship existing in it. A

country might remain backward not because of lack of natural resources or dearth of capital

[as it is many times believed] but because of lack of entrepreneurial talents or it inability to

tap the latent entrepreneurial talents existing in that society. Entrepreneurs historically have

altered the direction of national economies, industry or markets- Japan, Singapore, Korea,

Taiwan to name a few.

Entrepreneurship is basically concerned with creating wealth through production of goods

and services. This results in a process of upward change whereby the real per capita income

of a country rises overtime or in other words economic development takes place. Thus

entrepreneurial development is the key to economic development. In fact it is one of the most

critical inputs in the economic development of a region. It speeds up the process of activating

factors of production leading to a higher rate of economic growth, dispersal of

economic activities and development of backward regions. If a region is unable to throw up a

sufficient number of entrepreneurs then alien entrepreneurs usually step in to provide goods

and services needed by the people. However the profits earned by these entrepreneurs are

usually not ploughed back but repatriated to their place of origin. As a result development in

that region cannot take place. Dr. M.M. Akhori refers to this practice as ‗The Leech Effect‘.

The above reiterates the importance of entrepreneurship development for fuelling economic

growth of a region.

Entrepreneurship begets and also injects entrepreneurship by starting a chain reaction when

the entrepreneur continuously tries to improve the quality of existing goods and services and

add new ones. E.g. when computers came into the market there was continuous improvement

in the models, their functions etc. like first generation computers, personal computers,


laptops, palmtops etc. Not only had this fostered the development of the software industry,

computer education institutes, computer maintenance and stationery units etc. but also other

industries like banking, railways, education, travel, films, medical and legal transcriptions,

business process outsourcing [BPOs] etc. In this manner by harnessing the entrepreneurial

talent a society comes out of traditional lethargy to modern industrial culture. India needs

entrepreneurs to capitalize on new opportunities and to create wealth and new jobs.

An entrepreneur is an individual who establishes a firm. Because of their importance in the

modern economy, entrepreneurs should be at the heart of microeconomics. Entrepreneurs set

up firms in response to economic incentives. In turn, firms create and operate markets that

provide mechanisms of exchange for consumers.

Firms also create and manage organizations that provide internal coordination and market

interactions. The actions of entrepreneurs are the essential force that helps to drive the

economy towards equilibrium. Entrepreneurs are endogenous to the economy in the general

theory of the firm.

The entrepreneur is, before anything, a consumer. The consumer becomes an entrepreneur by

choosing to establish a firm. Consumers bring to the task of entrepreneurship their judgment,

knowledge, and technology. Consumers decide to become entrepreneurs based on their

personal characteristics and their judgment of available market opportunities. Entrepreneurs

act rationally and purposefully based on maximizing their net benefits.

A firm is defined to be a transaction institution whose objectives are separate from those of

its owners. All firms involve some combination of market mechanisms and organizational

structures. A market is a transaction mechanism that brings buyers and sellers together. A

market can be a store, a web site, a matchmaker, or an auction. An organization is a

mechanism for managing nonmarket transactions inside the firm, including those between


owners and managers, between managers and employees, and between employees, and for

managing the firm‘s market transactions. An organization can involve hierarchies,

bureaucracies, groups, teams, and networks.

The connection between the entrepreneur and market making can be illustrated by the

example of Amazon.com. Entrepreneur Jeff Bezos established the firm which in turn created

a vast set of online markets for a wide range of products. These products were grouped into

such broad categories as (1) books, music, and movies, (2) toys & video games, (3) consumer

electronics, (4) computer and office, (5) tools and automotive, (6) food and household, (7)

home and garden, (8) clothing and jewelry, (9) health and beauty, (10) kids and baby, and

(11) sports and fitness. Within these broad categories were over 40 product categories

containing many thousands of products from many manufacturers. These represented

thousands of markets where Amazon brought together buyers and sellers. Amazon served

tens of millions of buyers and over one million sellers. Amazon also offered start-up sellers

an alternative to ―heavy lifting, by providing web hosting and transaction intermediation.

The connection between the entrepreneur and organizations can be illustrated by the example

of Intel. Entrepreneurs Bob Noyce and Gordon Moore established the firm which in turn

created an organization that had more than 90,000 employees within forty years of its

founding. The connection between the entrepreneur and organizations can be illustrated by

the example of Intel. Entrepreneurs Bob Noyce and Gordon Moore established the firm

which in turn created an organization that had more than 90,000 employees within forty years

of its founding. The firm was structured around five groups: three groups were based on

the company‘s technology platforms for mobility, the digital enterprise and digital home,

another group was concerned with digital applications in healthcare, and another group dealt

with worldwide distribution. The firm had a worldwide network of R&D laboratories, the

firm‘s researchers focused on advanced computing, communications, and wireless


technologies. The firm operated manufacturing plants for producing microprocessors,

component assembly, and quality testing, and conducted research on manufacturing

processes.

Individual members of the society establish firms to facilitate, formalize, and enhance

economic relationships. The social and economic origins of the firm should be reflected in

the structure of the economic theory of the firm. Rather than being given exogenously, firms

arise endogenously because consumers choose to become entrepreneurs. Consumer

characteristics are the givens and firms are the result of consumer decisions. The existence of

firms, their purpose, and their organizational structure depend on the decisions of the

entrepreneur.

The entrepreneur establishes a firm to achieve a desired economic objective. As with any

type of man-made instrument, the firm augments the abilities and capacity of the entrepreneur

who creates it. The individual becomes an entrepreneur because establishing a firm allows

him or her to accomplish something that otherwise could not be done as effectively.

Consumers have preferences over consumption bundles. They own endowments of goods and

services. They own production technologies and can carry out manufacturing using those

technologies. Consumers also possess ideas, capabilities, skills, blueprints, transaction

methods, and other types of intellectual property. Consumers can invent new technologies

and can exchange them. Consumers also have the capacity to perform various activities,

acting as inventors, investors, managers, and workers.

In the theory of the firm with endogenous entrepreneurs, the exogenous data of the model are

the characteristics of consumers. The characteristics of entrepreneurs, including preferences

and income have been studied extensively and data is available to examine their

decisions to establish firms.5 In addition, the consumer decision depends on knowledge of


production and transaction technologies and ownership of intellectual property, such as

patents, copyrights, industrial processes, brands, and trademarks. The consumer‘s education,

training, and experience are likely to influence the decision to become an entrepreneur. The

individual‘s access to information about market opportunities is critical to making business

decisions. The consumer‘s abilities, interests, creativity, and business judgment can enter into

the decision to become an entrepreneur.

Entrepreneurs create new businesses, and new businesses in turn create jobs, intensify

competition, and may even increase productivity through technological change. High

measured levels of entrepreneurship will thus translate directly into high levels of economic

growth. However, the reality is more complicated. If, by entrepreneurship, one allows

inclusion of any type of informal self-employment, then high levels of entrepreneurship may

actually mean either that there are substantial bureaucratic barriers to formally creating a new

business, or simply that the economy is creating too few conventional wage-earning job

opportunities.

Under these circumstances, we might reasonably hypothesize that high levels of

entrepreneurship would correlate with slow economic growth and lagging development.

Entrepreneurs occupy a central position in a market economy. For it's the entrepreneurs who

serve as the spark plug in the economy's engine, activating and stimulating all economic

activity. The economic success of nations worldwide is the result of encouraging and

rewarding the entrepreneurial instinct. A society is prosperous only to the degree to which it

rewards and encourages entrepreneurial activity because it is the entrepreneurs and their

activities that are the critical determinant of the level of success, prosperity, growth and

opportunity in any economy. The most dynamic societies in the world are the ones that have


the most entrepreneurs, plus the economic and legal structure to encourage and motivate

entrepreneurs to greater activities.

For years, economists viewed entrepreneurship as a small part of economic activity. But in

the 1800s, the Austrian School of Economics was the first to recognize the entrepreneur as

the person having the central role in all economic activity. Why is that?

Because it's entrepreneurial energy, creativity and motivation that trigger the production and

sale of new products and services. It is the entrepreneur who undertakes the risk of the

enterprise in search of profit and who seeks opportunities to profit by satisfying as yet

unsatisfied needs.

Entrepreneurs seek disequilibrium--a gap between the wants and needs of customers and the

products and services that are currently available. The entrepreneur then brings together the

factors of production necessary to produce, offer and sell desired products and services. They

invest and risk their money--and other people's money--to produce a product or service that

can be sold at a profit.

More than any other member of our society, entrepreneurs are unique because they're capable

of bringing together the money, raw materials, manufacturing facilities, skilled labor and land

or buildings required to produce a product or service. And they're capable of arranging the

marketing, sales and distribution of that product or service.

Entrepreneurs are optimistic and future oriented; they believe that success is possible and are

willing to risk their resources in the pursuit of profit. They're fast moving, willing to try many

different strategies to achieve their goals of profits. And they're flexible, willing to change

quickly when they get new information.


Entrepreneurs are skilled at selling against the competition by creating perceptions of

difference and uniqueness in their products and services. They continually seek out customer

needs that the competition is not satisfying and find ways to offer their products and services

in such a way that what they're offering is more attractive than anything else available.

Entrepreneurs are a national treasure, and should be protected, nourished, encouraged and

rewarded as much as possible. They create all wealth, all jobs, all opportunities, and all

prosperity in the nation. They're the most important people in a market economy--and there

are never enough of them.

The entrepreneur who is a business leader looks for ideas and puts them into effect in

fostering economic growth and development. Entrepreneurship is one of the most important

inputs in the economic development of a country. The entrepreneur acts as a trigger head to

give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not

only in the development of industrial sector of a country but also in the development of farm

and service sector. The major role played by an entrepreneur in the economic development of

an economy is discussed in a systematic and orderly manner as follows.

(1) Promotes Capital Formation:

Entrepreneurs promote capital formation by mobilizing the idle savings of public. They

employ their own as well as borrowed resources for setting up their enterprises. Such types of

entrepreneurial activities lead to value addition and creation of wealth, which is very essential

for the industrial and economic development of the country.

(2) Creates Large-Scale Employment Opportunities:

Entrepreneurs provide immediate large-scale employment to the unemployed which is a

chronic problem of underdeveloped nations. With the setting up.of more and more


units by entrepreneurs, both on small and large-scale numerous job opportunities are created

for others. As time passes, these enterprises grow, providing direct and indirect employment

opportunities to many more. In this way, entrepreneurs play an effective role in reducing the

problem of unemployment in the country which in turn clears the path towards economic

development of the nation.

(3) Promotes Balanced Regional Development:

Entrepreneurs help to remove regional disparities through setting up of industries in less

developed and backward areas. The growth of industries and business in these areas lead to a

large number of public benefits like road transport, health, education, entertainment, etc.

Settings up of more industries lead to more development of backward regions and thereby

promote balanced regional development.

(4) Reduces Concentration of Economic Power:

Economic power is the natural outcome of industrial and business activity. Industrial

developments normally lead to concentration of economic power in the hands of a

few individuals which results in the growth of monopolies. In order to redress this problem a

large number of entrepreneurs need to be developed, which will help reduce the concentration

of economic power amongst the population.

(5) Wealth Creation and Distribution:

It stimulates equitable redistribution of wealth and income in the interest of the country to

more people and geographic areas, thus giving benefit to larger sections of the society.

Entrepreneurial activities also generate more activities and give a multiplier effect in the

economy.


(6) Increasing Gross National Product and Per Capita Income:

Entrepreneurs are always on the lookout for opportunities. They explore and exploit

opportunities encourage effective resource mobilization of capital and skill, bring in new

products and services and develops markets for growth of the economy. In this way they help

increasing gross national product as well as per capita income of the people in a country.

Increase in gross national product and per capita income of the people in a country, is a sign

of economic growth.

(7) Improvement in the Standard of Living:

Increase in the standard of living of the people is a characteristic feature of economic

development of the country. Entrepreneurs play a key role in increasing the standard of living

of the people by adopting latest innovations in the production of wide variety of goods and

services in large scale that too at a lower cost. This enables the people to avail better quality

goods at lower prices which results in the improvement of their standard of living.

(8) Promotes Country's Export Trade:

Entrepreneurs help in promoting a country's export-trade, which is an important ingredient of

economic development. They produce goods and services in large scale for the purpose

earning huge amount of foreign exchange from export in order to combat the import dues

requirement. Hence import substitution and export promotion ensure economic

independence and development.

(9) Induces Backward and Forward Linkages:

Entrepreneurs like to work in an environment of change and try to maximize profits by

innovation. When an enterprise is established in accordance with the changing technology, it


induces backward and forward linkages which stimulate the process of economic

development in the country.

(10) Facilitates Overall Development:

Entrepreneurs act as catalytic agent for change which results in chain reaction. Once

an enterprise is established, the process of industrialization is set in motion. This unit will

generate demand for various types of units required by it and there will be so many other

units which require the output of this unit. This leads to overall development of an area due to

increase in demand and setting up of more and more units. In this way, the entrepreneurs

multiply their entrepreneurial activities, thus creating an environment of enthusiasm and

conveying an impetus for overall development of the area.

(11) Alleviation of Poverty:

The entrepreneurs help in poverty alleviation by investing in micro finance. With a regional

office in our country units‘fights global poverty today by helping create large scale, poverty

focused and commercially sustainable MFIs. The entrepreneur can contribute a small amount

of capital and can create a business opportunity which helps his or her to become a

self- independent. The people who have nothing to do in the job sector because of educational

background can become an entrepreneur for reducing his poverty. This is the way to alleviate

poverty by an entrepreneur.

(12) Creating Innovation:

An entrepreneur is a person who always looks for changes. Apart from combining the factors

of production, he also introduces new ideas and new combination of factors. He always try to

introduce newer and newer technique of production of goods and services. An entrepreneur

brings economic development through innovation.


5.2 Role played by entrepreneurs in rural development

Entrepreneurial activity and new firm formation are unquestionably considered engines of

economic growth and innovation. As such, they are among the ultimate determinants of the

large regional differences in economic performance. The importance of new firm formation

for growth has been recognized since Schumpeter (1934). According to the Global

Entrepreneurship Monitor Report (2000), about 70 percent of an area‘s economic

performance is dependent upon how entrepreneurial the area‘s economy is.

Entrepreneurial orientation in rural areas is based on stimulating local entrepreneurial talent

and subsequent growth of indigenous companies. This in turn would create jobs and add

economic value to a region, and at the same time it will keep scarce resources within the

community. According to Petrin (1992), to accelerate economic development in rural areas, it

is necessary to build up the critical mass of first generation entrepreneurs.

Studies conducted by Economic Commission for Latin America and Caribbean (ECLAC) and

Food and Agricultural Organization (FAO) in the Latin American and Caribbean region have

indicated that rural enterprises can be an important modernizing agent for small agriculture.

Governments have supported this process by creating incentives for agro-industry to invest in

such regions. This has not only been in developing countries, but it has also been a clear

policy of the European Union (EU) which channels a large part of the total common budget

to develop the backward and poor regions of Europe.

Lyson (1995) echoes the prospects of small-enterprise framework as a possible rural

development strategy for economically disadvantaged communities and provides this

description of the nature of small-scale flexibly specialized firms: ―First, these businesses

would provide products for local consumption that are not readily available in the mass

market.. Second, small- scale technically sophisticated enterprises would be able to fill the


niche markets in the national economy that are too small for mass producers. Third, small,

craft-based, flexibly specialized enterprises can alter production quickly to exploit changing

market conditions.

According to a study conducted in the United States it has been found that rural poverty has

become as intense as that found in the inner cities, and has stubbornly resisted a variety of

attempts at mitigation through economic development policies. The latest strategy for

addressing this problem is the encouragement of emerging ―home-grown‖ enterprises in

rural communities. The expectation is that these new ventures-a) will provide jobs or at least

self-employment; b) will remain in the areas where they were spawned as they grow; c) and

will export their goods and services outside the community, attracting much-needed income.

(Lyons, 2002).

Gavian, et al (2002), in a study on the importance of SME development in rural employment

in Egypt, have suggested that SMEs are traditionally thought of as well poised to respond to

increased demand by creating jobs.

It is important to stress here that rural entrepreneurship in its substance does not differ from

entrepreneurship in urban areas. Entrepreneurship in rural areas is finding a unique blend of

resources, either inside or outside of agriculture. The economic goals of an entrepreneur and

the social goals of rural development are more strongly interlinked than in urban areas. For

this reason entrepreneurship in rural areas is usually community based, has strong extended

family linkages and a relatively large impact on a rural community.


5.3 Role played by Entrepreneurs in Developed Economy

The nature of a developing economy is quite different from a developed economy.

The developing economy can be an agricultural country moving towards the industrialization

or it may be the one where in the industry may be in its infancy lacking advance technology.

The modern era is an era of changes. The whole world is becoming a village due to the

industrial revolution and fast developing communication technology. The globalization of

industry and commerce is bringing a vast change in various aspects of life. Economic

development of a country is the outcome of purposeful human activity. The modern era is an

era of changes. The whole world is becoming a village due to the industrial revolution and

fast developing communication technology. The globalization of industry and commerce is

bringing a vast change in various aspects of life. Economic development of a country is the

outcome of purposeful human activity. Economic development is a highly dynamic process

characterized by the pattern of demand shifts, new products are needed, appear for the

production of goods within a country. A developing country needs entrepreneurs who are

competent to perceive new opportunities and are willing to incur the necessary risk in

exploiting them. A developing economy is required to be brought out of the vicious circle of

low income and poverty. Entrepreneur can break this vicious circle. Entrepreneurs and

helping government can change a developing economy in developed economy.


5.4 Importance of Entrepreneurship Development in Bangladesh

Bangladesh needs a large number of entrepreneurs and in quality. It is important for creating

incremental wealth by undertaking productive activities particularly industrialization. Rapid

industrialization is an inescapable necessity to generate employment opportunities to

meet crucial educated unemployment and underemployment problems. Every year those

ands of educated unemployed is joining the labor force. In addition there are thousands of

dropouts from different levels of our education system. Who are the wealth as well as job

creators? Definitely the existing as well as emerging entrepreneurs. Among three important

sources (the individuals, the spin off and Entrepreneurs) the most important source is

individual entrepreneurs. The major sources of entrepreneurs are the college and university

graduates and educated youths. Bangladesh is predominantly an agricultural country in search

of employment to a large number of individuals start business with great enthusiasm but

retire soon facing innumerable problems. As a result our first generation entrepreneurs having

no family or industry / business experience go ahead to operate their promotion. Excepting

few vulnerable industries all sectors were open to local foreign investors. Despite generous

support and encouragement the overall performance has remained unsatisfactory. The impact

is reflected in the share of contribution in GDP and employment.


6.1

Joyce Clyde Hall

Born: 29-Aug-1891 David City, Nebraska

Died: 29-Oct-1982 Kansas City, Missouri

Nationality: United States

Ethnicity: White

High School: Drop out

Executive summary: Founder of Hallmark Cards

Author of Books: When You Care Enough (1979, memoir, with Curtiss Anderson)


"It didn't start its business to see how much money it could make, but to see how good a job it could do."

6.1.1 A BRIEF OVERVIEW

Joyce C. Hall was a preacher's son, named for a bishop in his father's church, one Isaac Joyce.

Growing up with a girl's name, he always preferred to be called "J.C.". He was eighteen years

old when he arrived in Kansas City in 1910 and rented a room at the YMCA. Penny postcards

with pretty pictures printed on one side were already a nationwide fad, and Hall liked the

profit margin -- in his high school years he sold penny postcards door-to-door. So with two

boxes of penny postcards, he began selling them wholesale to small bookstores, drug stores,

and gift shops. Soon he was printing his own cards, and his brothers joined him in the

business. When World War I effectively shut down shipments of popular European postcards,

Hall Brothers (now Hallmark) became dominant in the card market.

Christmas, birthday, and Valentine's Day cards were early best-sellers, but Hall wanted to

manufacture cards that expressed virtually every sentiment for any occasion. He hired writers

including Ogden Nash and Norman Vincent Peale, and artists from Winston Churchill to

Grandma Moses to Andrew Wyeth. His other major innovation was the installation of long

card racks in stores, allowing customers to browse through hundreds of different cards --

previously, the cards had been stored behind the counter in most stores, with customers

unable to see them without asking the clerk. The company's warm-hearted and well-reviewed

Hallmark Hall of Fame TV movies began running in 1951, and continue airing today.

A millionaire many times over, he drove the same Buick for many years and usually ate

lunch in the company cafeteria. Hall personally approved every card the company produced

until he was well into his 70s, and by his death in 1982 Hallmark was valued at about $1.5

billion, printing millions of cards daily in thousands of designs. Hall left about $200 million

to his children, and $100 million to charity.


Father: George Nelson Hall (minister, b. 1858)

Mother: Nancy Dudley Houston Hall (b. 1859)

Brother: Roland Hall ("Rollie", Hallmark executive, d. 1968)

William Hall (Hallmark executive, b. 1884)

Sister: Marie Hall (b. 1895)

Wife: Elizabeth Ann Dilday Hall (b. 3-Aug-1896, m. 25-Mar-1920, d. 17-Mar-1975)

Son: Donald J. Hall (Hallmark President & CEO)

Daughter: Elizabeth Ann Hall Reid

Louise Hall Marshall (Hallmark executive)

High School: (dropped out)

Founder: Hallmark Founder, President (1923-66)

Hallmark Chairman (1923-82)

Awards:

Emmy 1961 (award to Hallmark Corporation)

French Legion of Honor

Peabody 1965

Advertising Hall of Fame (1998)

Author of books:

When You Care Enough (1979, memoir, with Curtiss Anderson)


6.1.2 CHILDHOOD

He was named Joyce after a Methodist Minister that visited their town. His family was very

poor, and he worked odd jobs, mostly involving sales, from age 8 on to supplement the

meager income of his father. When he was 16, Joyce and his two older brothers, Rollie and

William, pooled their money and opened the Norfolk Post Card Company. But the market for

imported post cards was limited, and the new business hung on by a slender thread. In

January 1910, at the age of 18, he dropped out of high school over the objections of his

family, crammed two shoeboxes full of post cards and boarded a train for Kansas City. He

sold his cards to drugstores, bookstores and gift shops. This was the start of what was to be

the largest greeting card company in the world. He coined the phrase “When you care enough

to send the very best.” During his life, he never lost his plain-spoken, common sense, man-

of-the-plains touch, despite being: commander of the order of the British Empire; holder of

the French Legion of Honor; winner of the Eisenhower Medallion; first-name intimate of

Winston Churchill, Dwight Eisenhower and Harry Truman; winner of the first Emmy ever

awarded to a television sponsor; recipient of plaques, scrolls and honorary degrees and the

Horatio Alger Award.

6.1.3 A BOY NAMED JOYCE

Hall went to work at the age of eight. A year later, his entrepreneurial talent already showed.

He was only nine when he began to sell cosmetics and soap door-to-door for the California

Perfume Company, which later became Avon Products, Inc. (see entry). When Hall was ten

years old, the family moved to Norfolk, Nebraska, where Rollie and William had purchased a

book and stationery store. In 1905, a Chicago salesman visited the store and convinced Hall

that there was money to be made in selling postcards. Hall, then sixteen, invested his life


savings of about $170 into the venture and convinced Rollie and William each to match his

investment.

Together, they founded the Norfolk Post Card Company, importing foreign postcards and

selling them to local merchants. During the school year, Hall was the company's order filler

and card sorter. During vacations he took to the streets, selling both the postcards and a

sawdust sweeping compound. The business struggled to survive and in 1910, Hall dropped

out of high school and moved to Kansas City, Missouri, with a suitcase of clothes and two

shoeboxes of postcards. He began selling the cards to drugstores, bookstores, and gift shops.

Hall's brother Rollie joined him in 1911 and they opened a small book, card, and gift shop in

downtown Kansas City, buying products designed and manufactured elsewhere and selling

them wholesale.

After a fire destroyed the Hall brothers' shop in 1915, they quickly moved to new

headquarters and started over. One of the first original designs they created after the fire was

a card featuring a drawing of a rope with a knot at the end. The inscription read, "When you

get to the end of your rope, tie a knot and hang on." The modern version of that card shows a

cat dangling from a rope with the message shortened to, "Hang in there, baby."

6.1.4 EARLY CAREER

Joyce C. Hall always put quality first, whether it came to products, customers, or employees.

Because of this, Hall, a high school dropout, was able to build a multibillion-dollar greeting

card empire that diversified into a wide variety of products and services, including residential

and commercial property, art supplies, gift wrap and accessories, and television

programming. In less than one hundred years, Hallmark went from a tiny postcard shop in

Kansas City, Missouri, to the world's largest manufacturer and distributor of greeting cards,

with thousands of retail outlets around the globe and annual sales of $4 billion.


"If a man goes into business with only the idea of making a lot of money, chances are he

won't. But if he puts service and quality first, the money will take care of itself. Producing a

first-class product that is a real need is a much stronger motivation for success than getting

rich."

6.1.5 COMPANY AND BUSINESS LEADER

Although the business was a brotherly effort, Joyce Hall was the company's backbone. He

constantly looked for ways to modernize things and kept his finger on the pulse of public

tastes. Through the 1920s, Hall expanded the inventory to include Christmas and other

decorative seals, party invitations, sympathy cards, and calendars, all of which were big hits

with customers in a time of economic boom. But Hall also paid attention to his personal life.

On March 25, 1922, he married family friend Elizabeth Ann Didlay. They had three children,

Elizabeth Ann, Barbara Louise, and Donald Joyce.

In the 1930s, Hall introduced a number of new marketing and sales strategies, such as an

automatic reorder system, and self-service open display racks. Previously, cards were kept

behind the sales counter and customers had to have a clerk pick out choices for them. People

loved being able to sort through the cards on their own, and business soared.

The decade also brought the Great Depression, which devastated the nation's economy. Hall

worked hard to ensure that his employees would keep their jobs. He was also dedicated to

returning prosperity to the United States. The 1930 Joyce Hall Prosperity Plan was embraced

and promoted by Rotary Clubs throughout the country. Rotary Clubs are community-based

business organizations. The plan encouraged suppliers and customers to buy materials in

advance, providing working capital for companies. According to Hall, his plan allowed

people to keep working and earning wages. It also kept the spending cycle going. Some

newspapers credited Hall and his plan with aiding the country's eventual economic recovery.


Joyce C. Hall used his greeting cards and his successful business to further the fine arts. The

Hallmark Gallery Artists Christmas cards featured works by such great masters as

Michelangelo (1475-1564), Leonardo da Vinci (1452-1519), and Rembrandt (1606-1669).

Hall hoped these cards would bring the art of celebrated painters to people who would not

ordinarily see them. He also created the International Hallmark Art Awards, providing funds

to artists worldwide, and acquired famous works for the Hallmark Fine Arts Collection.

During the 1950s, Hall took a stand against the Cold Warera threat of nuclear destruction,

and became involved in a peace-keeping effort. In 1956, President Dwight D. Eisenhower

(1890-1969) invited Hall and other prominent American businessmen to the White House for

an important discussion. The meeting concerned establishing an organization to promote

world peace. The resulting organization was called People-to-People. It was an effort to

foster mutual understanding, respect, and friendship between American citizens and citizens

of the world. Hall served on the group's board of directors and was chairman of People-to-

People's executive committee. During his service, he made several trips overseas to promote

the peace initiative.

A few years later, Hall started the Hallmark Corporate Foundation, a nonprofit group that

provides funds to Kansas City-area organizations and schools. The foundation's gifts have

included grants to the University of Kansas to establish a business professorship and a design

professorship, and annual scholarships for students at the Kansas City Art Institute.

6.1.6 NEVER SLOWING DOWN

Hall's outside activities took up much of his time and he found that he was less able to focus

his attention on running a company. He gradually weaned himself away from managing day-

to-day operations of Hallmark, finally retiring as CEO in 1966. Hall continued to serve as

chairman of the company's board of directors, but he soon found a new interest: land


development. The urban decay surrounding Hallmark's Kansas City headquarters bothered

him and when the city failed to take action, Hall launched the redevelopment himself. Within

ten years, he had built the 85-acre Crown Center. The residential, office, hotel, and

entertainment district brought renewed interest to the area, and revitalization spread to nearby

neighborhoods.

Because of his work with Crown Center and his charitable activities, Hall never totally

retired. Not one to drop out of sight, he also continued to keep a close watch on the quality of

Hallmark products until his death in 1982 at the age of ninety-one. Hall believed the secret to

his success was that throughout his life, he demanded excellence—from himself and from

those around him. He also believed that he succeeded in business because he simply worked

harder than anyone else. Not surprising for a man who asked millions of people to "care

enough to send the very best."

6.1.7 CONSEQUENCE OF GROWTH

Joyce C. Hall: Hallmark founder believed "When you care enough to send the very

best"

The person who turned greeting cards into one of the most important means of personal

communication in the 20th century was Joyce C. Hall, the Nebraska native who founded

Hallmark Cards in 1910.

Along with the help of his family, he developed what became the world's largest greeting

card company. Presently, it annually creates some 23,000 designs in over 30 languages and

distributes them in more than 100 countries. Hallmark also offers other products such as gifts,

gift wrap, party products, and stationery.


Known for innovations and practices ahead of his time, he believed that "good taste is good

business" and that selling ideas is the most crucial of jobs.

Hall also felt that "It didn't start It’s business to see how much money It could make, but to

see how good a job It could do."

His original experiences in business occurred as a youth in Nebraska. But after he relocated

in 1910 to Kansas City, Missouri, he became a mail-order postcard distributor, and added

greeting cards a year later when he was joined by his older brother, Rollie.

In 1914, the Hall brothers set up a retail store and sold cards and stationery. During World

War I, they began manufacturing their own cards, and later introduced greeting cards that

expressed friendship. Joyce also understood that a company's success is in direct ratio to its

dealers' success.

Older brother, William, joined the partnership, and by 1923, the Hall Brothers Company built

a new plant and opened their own employee cafeteria. The staff had grown from flour in 1911

to some 120 employees at this time, with 16 salesmen doing business in all 48 states. Their

12 artists were creating 600 different designs per year.

A popular card contained lines from Edgar Guest's poem "A Friend's Greeting," and the

company introduced decorative gift wrap. Begun also was a line of nonfolding flat cards and

envelopes with heavy gold foil, which reinforced Joyce's belief the public wanted quality

products.

By the mid-1920s, the word "Hallmark" began appearing on the backs of cards, and it was

one of the first companies to offer bonuses to employees. In 1928, its first national ad

appeared in Ladies Home Journal.


In the 1930s, Walt Disney characters were used on cards, the welfare of company employees

became a high priority, and display racks that made it convenient for customers to select

cards were introduced at dealers' stores.

By 1940, Hallmark began advertising on radio, and flour years later, it initiated its slogan

"When You Care Enough to Send the Very Best," which at the time became the second most

memorable behind Coca Cola's "The Pause That Refreshes."

Ever the innovator, Joyce visited various retail stores for ideas to expand his offerings. He

had discovered the vast majority of greeting card buyers prefer verse to prose, and quotations

and poetry from William Shakespeare to Ogden Nash were used.

After World War II, the company officially adopted as its logo a five-pointed crown, and

among its staff of artists were individuals who represented 13 different nationalities.

A new line of Christmas cards introduced the public to works by such renowned artists as

Leonardo da Vinci and Rembrandt. And former British prime minister Winston Churchill

consented to use of his paintings on Christmas cards.

In 1954, the company name became Hallmark Cards, Inc. Also in the early 1950s, Hall

wanted to showcase some of the world's greatest performers, so he sponsored the Hallmark

Hall of Fame, which established the concept of a television special that pre-empted regularly

scheduled programs. In more than 50 years, the Hallmark Hall of Fame has produced more

than 200 shows and won more than 80 major awards.

About 1960, Hallmark introduced the Ambassador brand of cards to serve large, mass

marketing stores, and soon new product offerings included albums, candles, gifts, party

favors, stationery, and more.


After Joyce had served over 50 years as company leader, his son Donald assumed presidency

in 1966. At that time, some 14,000 designs per year were produced by more than 300 artists

and another 150 engaged in specialized graphic techniques.

In the later 1960s and 1970s, Joyce and Donald oversaw construction of Crown Center, a

retail, office and residential complex surrounding Hallmark headquarters that became a city

within Kansas City. While Joyce continued as chairman of the board until his death in 1982,

his son began to diversify the company's operations, and several personal development

industries became subsidiaries.

By the turn of the 21st century, Hallmark Cards, Inc. was the personal expression leader, with

company cards sold under brand names such as Hallmark, Shoebox, Expressions From

Hallmark, and Ambassador in more than 42,000 U.S. retail stores, more than 4,000 of which

comprise the Hallmark Gold Crown store network. It also owns businesses in family

entertainment, such as the Hallmark Channel cable network.

Its sales have reached some $4 billion annually, and Joyce's grandson Donald J. Hall, Jr. has

served as chief executive since 2002.

The legacy of Joyce C. Hall was assured also by his many significant honors, such as the

Horatio Alger Award in 1957, an Emmy Award as sponsor in 1961, and honorary doctorate

degrees granted by several institutions, including the University of Nebraska in 1968.

Born in 1891 at David City, Butler County, Nebraska, one of five children of George and

Nancy Houston Hall, Joyce attended the local elementary school. At the age of eight, he held

various part-time jobs after his father abandoned the family. One summer he was a local

door-to-door salesman for the California Perfume Company, later renamed Avon Products.


In 1902, he moved with his family to Norfolk, where his older brothers had purchased a

bookstore. There he worked after school and on weekends. One summer he traveled with his

brother, Rollie, to western Nebraska, Wyoming, and South Dakota selling candy.

Three years later, he and his brothers began a picture postcard business, and learned the

importance of quality retailing, he reported later.

Joyce did not complete high school in Norfolk, but decades later he was granted a diploma

from David City High School during a graduation ceremony held in May 1962, reported the

May 25 Lincoln Evening Journal.

At the end of 1909, he was persuaded by a cigar salesman to move to Kansas City, where he

attended Spalding's Commercial College for one year, and conducted his mail-order postcard

business. He also developed an interest in the theater.

Joyce C. Hall and his wife, Elizabeth, raised three children, and our supporters of the

community in many ways. He died in 1982 at nearby Leawood, Kansas. He was

posthumously inducted into the Emmy Hall of Fame in 1985.


6.1.8 Company Profile

HALLMARK CARDS, INC.

Founder: Joyce C. Hall

Founded: 1910

Industry: Media

President & CEO: Donald J. Hall, Jr.

Corporate Headquarter: Kanas City, MO

Ownership: Private

Consolidated Annual Revenues: $4.1 billion in 2010

Consolidated Annual Revenues: $ 4.1 billion in 2010

Employees: 25,300

Products: 83,000 greeting cards & related products

U.S. Distribution: 40,000 outlets & 3,000 Hallmark Gold Crown® Stores

International Business: Products in 30 languages distributed in 100

countries

Website: www.hallmark.com

About Hallmark


“Creativity, innovation, quality and caring have guided It’s decisions and

earned us the trust of people who work with us, buy It’s products and live in the

communities It call home. It's a trust we intend to keep”

http://www.hallmark.com/

Founded informally in 1910 by Joyce C. Hall and eventually incorporated as Hall Brothers

Company. Cards were branded 'Hallmark' beginning in 1922, and in 1954 the business

changed its name to Hallmark Cards, Inc.

For more than 100 years, Hallmark Cards, Inc. has helped people connect with one another

and give voice to their feelings. Its employees are personally passionate about caring,

creativity, quality and innovation, values that have guided us from the start and remain at Its

core.

It is best known for greeting cards, but much more than that. Products include paper party

supplies, gifts and wrapping paper… ornaments, gift

books and decorative items for the home… memory-

keeping picture frames, albums and scrapbooks… e-cards

and personalized photo cards... even a cable television

channel. It is with all at holidays and any-days, at its most

important milestones and unexpected occasions, when any

want to share a laugh and when you seek to offer comfort.

It is privately held, and committed to remaining so. It is

family-owned with third-generation. It has grown from two shoeboxes of postcards into a

$4.1 billion company. Its products can be found in 100 countries around the world and in

more than 40,000 stores in the United States alone. Its flagship retail partners are more than

3,000 Hallmark Gold Crown® stores that offer the widest selection of its products in

communities across the U.S. Most of them are independently owned by local entrepreneurs

who care about their communities as much as it cares about it.

Its roots extend deep in Kansas City, Mo., its corporate headquarters, and It has employees

and facilities around the globe, including European headquarters in England, Australasian


Hallmark's worldwide headquarters is in Kansas City, Mo.

headquarters in Australia and a buying office in Hong Kong. It has manufacturing and

distribution facilities that employ some 1,400 people in Missouri, Kansas, Connecticut,

Georgia, Texas and Illinois, and it is active in helping build healthy communities in the cities

and towns where its employees live and work.

Creativity, innovation, quality and caring have guided It’s decisions and earned us the trust of

people who work with us, buy It’s products and live in the communities It call home. It's a

trust It intend to keep.

Hallmark history

Founding 1910s

Eighteen-year-old J.C. Hall arrived in Kansas City in 1910 to begin the business that would

become Hallmark Cards, Inc.

Its story begins in 1910, when 18-year-old Joyce Clyde Hall stepped off a train in Kansas

City, Mo., with nothing but two shoeboxes of postcards under his arm. He had little money –

not even enough to take a horse-drawn cab to his lodgings at the

YMCA – but he had an entrepreneurial spirit and the determination

of a pioneer. Hall quickly made a name for himself with the picture

postcards he sold.

Rollie Hall joined his brother in business, and the company was

named Hall Brothers. On Jan. 11, 1915, a fire destroyed their office and inventory. They took

the only salvageable item – their safe – and set up shop again. With $17,000 in debt, they

decided to press onward. As postcard sales declined, they recognized the public's desire for

more privacy, so they started offering high-quality valentines and Christmas cards mailed in


envelopes. The fateful fire resulted in the decision to buy printing presses and begin

producing their own greeting cards in 1915.

Early Innovation 1910s - 30s

Armed with the success of the Hall Brothers greeting cards, J.C. and his brother continued to

innovate. Their first foray into other product lines came in 1917 when the Hall brothers

"invented" modern gift wrap. During the peak Christmas season, the Hall Brothers ran out of

solid-colored gift dressing, and improvised by selling fancy decorated French envelope

linings. Those sold out so quickly that the brothers decided to begin printing their own gift

wrap.

J.C. Hall also was an innovator in marketing his cards. He was intrigued by the word

"hallmark" used by goldsmiths as a mark of quality. Mr. Hall liked that it not only said

quality, but also included his family name. So, in 1928, the company began marketing its

brand by using the Hallmark name on the back of every card. That same year, Hallmark was

the first in the greeting card industry to advertise nationally. The ad was written by J.C. Hall

personally and appeared in Ladies' Home Journal. Hall was convinced of the power of

national advertising and next turned to radio, sponsoring "Tony Wons' Radio Scrapbook."

But the innovation didn't stop there. In 1932, Hallmark signed its first licensing agreement

with one of the 20th century's most recognizable names – Walt Disney. Another innovation

was the company's patented "Eye-Vision" greeting card displays, which took cards out of

shop drawers and put them on display racks where people could easily see and read them.

The way you see greeting cards displayed today was an industry first created by Hallmark.


Building a Brand 1930s - 50s

One of the world's best-known slogans was born on a 3x5 note card as the brainstorm of a

Hallmark executive in 1944.

The burgeoning brand solidified its position in American

history in 1944 with nine simple words. One of the most

recognized slogans in advertising, "When You Care

Enough to Send the Very Best," was born from a three-by-five-inch notecard. Ed Goodman, a

sales and marketing executive at Hallmark, jotted down his thoughts on what Hallmark stood

for – caring, quality, the best.

In 1951, NBC approached Hallmark about sponsoring the first original opera created

especially for television, Amahl and the Night Visitors. J.C. Hall decided to sponsor the

program to thank all the people who bought Hallmark cards.

The opera aired on Christmas Eve and moved viewers to send thousands of letters, cards, and

telegrams thanking Hallmark for presenting it. This would be the first in a series of specials

that would become the Hallmark Hall of Fame.

In the nearly 60 years since, Hallmark Hall of Fame productions have won 80 Emmy

Awards. The National Academy of Television Arts and Sciences has presented two Emmy

Awards to Hallmark as a sponsor.

By the time the company name was officially changed from Hall Brothers to Hallmark Cards,

Inc. in 1954, the tradition of entrepreneurship and innovation started by J.C. Hall was deeply

ingrained.


Growing and Expanding 1960s - 80s

Under the leadership of Donald J. Hall, son of J.C., who became president and CEO in 1966,

Hallmark grew and expanded its offerings. Hallmark introduced its quality products to global

audiences when it formed Hallmark International.

During this time period, Hallmark Keepsake Ornaments were introduced, revolutionizing

Christmas decorating and sparking the phenomenon of ornament collecting. To meet the

needs of smaller card departments and retailers in the mass channel, Hallmark rolled out the

Ambassador brand. The launch of the Shoebox Greetings line of humorous greeting cards

was, at the time, the company's single largest product line introduction. Mahogany cards were

introduced for African-American consumers, and card lines for Jewish and Hispanic

consumers soon followed.

In 1986, the Hallmark Gold Crown® store program was formalized, bringing together a

network of independently owned and operated retailers to build on the strength of the

Hallmark brand and products.

Building for the Future 1980s - 90s

When J.C. Hall passed away in 1982, Don Hall became Chairman. Irvine O. Hockaday, Jr.

was named president and CEO. During this time, Hallmark began building for the future by

acquiring complementary companies to reach new audiences and channels of distribution.

Today those subsidiaries are known as: Crayola, maker of Crayola® brand crayons and art

products; Sunrise Greetings, an innovative greeting card company; Image Arts, a boxed and

seasonal card company; DaySpring, a leading producer of cards for Christian consumers;

William Arthur, a producer of personalized stationery; and Irresistible Ink, a company

specializing in handwritten customization of direct mail.


To keep pace with changing times, Hallmark.com was launched as a website offering news

and information, and soon moved into e-cards and e-commerce. The Expressions From

Hallmark greeting card brand was introduced in mass channel retail stores, making the

Hallmark brand available to people wherever they shopped. One of Hallmark's largest-ever

product introductions, the Hallmark Warm Wishes greeting card line, made hundreds of cards

available for 99 cents at retail outlets nationwide.

Innovation in the 21st Century & Beyond

As the leader of the greeting card industry, Hallmark leaves its mark on more than just cards.

Donald J. Hall, Jr. and David E. Hall, both grandsons of the founder, continue the legacy of

strong family leadership and innovation. Don steers the company as president and CEO,

while Dave leads the wholesale products side of the business.

Even as the company enters its second century, the Hallmark brand continues to evolve.

Quality family entertainment started with the Hallmark Hall of Fame and lives on with the

Hallmark Channel television network that reaches millions of households with family-

oriented programming. And on the greeting card front, by combining the shared emotion of

music, the surprise of a loved one's voice, or the excitement of motion with the power of a

greeting card, It’s Cards With Sound, Recordable Cards With Music, and Cards With Motion

are transforming the industry once again.

Today, Hallmark products can also be found at more than 40,000 retail outlets domestically

and online at Hallmark.com. The company publishes in 30 languages, and its products are

available in more than 100 countries around the globe. Hallmark Gold Crown® stores, the

company's network of more than 3,000 independently-owned card and gift specialty stores,

bring the most extensive selection of Hallmark products to its neighborhood.


It has come a long way from a man with empty pockets, two shoeboxes of postcards, and a

dream. But most importantly, It has held onto the enduring beliefs and values that fill the

basic human need to connect with others.

Executives

Name Occupation Birth Death Known forHenry F. Frigon Business c. 1936 CEO of CARSTAR, Inc., 1998-2001

Donald J. Hall Business 9-Jul-1928 CEO of Hallmark, 1966-86

Joyce C. Hall Business 29-Aug-1891 29-Oct-1982 Founder of Hallmark Cards

Irvine O. Hockaday, Jr. Business 12-Aug-1936 CEO of Hallmark, 1986-2001

Jan L. Murley Business c. 1951 CEO of The Boyds Collection, 2003-06

Current board members or directors

Name Occupation Birth Death Known forWilliam D. Perez Business c. 1947 CEO of Wrigley

Board members or directors

Name Occupation Birth Death Known forJohn F. Akers Business 28-Dec-1934 CEO of IBM, 1986-93

Herman Cain Business 13-Dec-1945 Godfather's Pizza

Frederick B. Hegi, Jr. Business c. 1943 Wingate Partners

John P. Mascotte Business c. 1940 CEO of The Continental Corporation, 1983-95

Beliefs & Values

Its believe:That its products and services must enrich people's lives.

That creativity and quality – in its products, services and all that it do – are essential

to Its success.

That innovation in all areas of its business is essential to attaining and sustaining

leadership.

That the people of Hallmark are it’s company's most valuable resource.


That distinguished financial performance is imperative to accomplish its broader

purpose.

That it’s private ownership must be preserved.

It’s value and is committed to:

Excellence in all it do.

High standards of ethics and integrity.

Caring and responsible corporate citizenship for Kansas City and for each community

in which it operate.

These beliefs and values guide its business strategies, it’s corporate behavior, and it’s

relationships with business partners, suppliers, customers, communities

and each other.

Committed to Creativity

Appreciation for and understanding of the creative spirit runs deep at Hallmark. Founder J.C.

Hall began the tradition of nurturing creativity that keeps it’s more than 700 artists, designers,

stylists, writers, editors and photographers motivated and inspired. Some creative employees

joke that working here is "like being paid to go to graduate school." That's because they have

access to unparalleled creative resources, such as a corporate fine art collection and archives,

a creative library, renowned visiting speakers, and ongoing renewal opportunities.

Innovation for Success


Its success is tied to keeping up with the needs of today. Whether it's creating new products

or entirely new businesses, it is constantly innovating. It stay in touch with consumers

through ongoing research and interaction to gain insight into their lives. It innovate in the

ways It develop products, too – Hallmark artists are just as likely to draw in charcoal or hand-

paint an illustration as they are to design on a sophisticated 3-D computer system or use laser-

cut technology. It's an ever-changing world, so it is an ever-changing company.

Culture Collaboration

It recognizes and celebrates diverse cultures, especially as the world becomes more

connected. It embrace its similarities and differences, and see them as an opportunity to help

connect and celebrate with even more people. Its employees reflect this wonderful, varied gift

of humanity. You can also see this reflected in its workplace practices, its diversity programs,

its philanthropic efforts and its product lines.

Hallmark’s Hall of Fame

It’s the most-honored program in the history of television.

Born in the era of fully sponsored television programming, the

Hallmark Hall of Fame has stood the test of time and has been

largely responsible for elevating the Hallmark brand to the

status of an American icon.

“Its brand is one of its most valuable assets,” says Brad Moore, president of Hallmark Hall of

Fame Productions. “It can point to many factors that have gone into the strength of its brand –

but Hallmark Hall of Fame and its role in reinforcing messages of quality and caring may be

the single most important force in giving its brand the power it enjoys.”


Or as Chairman Donald J. Hall, son of founder J.C. Hall whose vision gave birth to the series,

has stated, “The Hallmark Hall of Fame has had an amazing impact on consumers, its

employees, retail partners, business leaders and opinion molders. It continues to work its

magic on its image to a degree I cannot fully explain. I am not aware of any such vehicle, in

or out of television, available to any other company, with such a positive impact.”

60 Years, 80 Emmys, Countless Loyal Viewers

Hallmark Hall of Fame productions have won many industry awards and the hearts of

viewers.

The Hallmark Hall of Fame debuted on Christmas Eve 1951, with the world premiere of

Amahl and the Night Visitors, an original opera by Gian Carlo Menotti. Viewer response was

so positive that encores were televised in April and December 1952.

The next original production, of William Shakespeare’s Hamlet, was broadcast in April 1953.

More people watched Hamlet on television that evening than had cumulatively seen it in all

its live performances in the 350 years since it had been written.

Subsequent years brought more Shakespearean fare as well as classic works. More recently

the series has offered biographical material, classic children’s stories, works based on popular

literature, and even undertaken social issues.

To date, the series has earned 80 Emmys, nine Golden Globes, 11 Peabody Awards, 25

Christopher Awards, and few’s Humanitas Prizes. It’s no wonder it is one of the few

television productions that attracts actors who usually appear in motion pictures.


http://blog.hallmark.com/2010/01/29/red-carpet-connections-to-61-amazing-actors/

Brand legacy

Quality. Innovation. Caring.

Simple but powerful words that come to mind when you

mention Hallmark. Creating a brand as powerful as the

Hallmark name started with the pursuit of quality more

than 100 years ago.

Mark of Quality

In the early days, its greeting cards carried the company

name “Hall Brothers” on the back. But the term “hallmark,” used by goldsmiths in the 14th

century, fascinated founder J.C. Hall. As he explained, “It not only said quality in an

authoritative way, but it also incorporated its family name.” In 1925, “Hallmark” appeared on

products for the first time, and by 1928, it was used on the back of every greeting card.

Subsidiaries and assets

Hallmark owns:

Crayola LLC (formerly Binney & Smith): makers of Crayola-brand crayons

DaySpring Greeting Cards, is the world's largest Christian greeting card company. It was purchased in 1999 from Cook Publishing and is based in Siloam Springs, Arkansas.

Hallmark Business Expressions: Formed in 1996, Hallmark Business Expressions is a business-to-business subsidiary of Hallmark Cards, Inc. and is headquartered in Kansas City, MO.

Hallmark Channel: cable television network — Hallmark Cards owns the majority of stock in this publicly traded company (Crown Media Holdings), joint venture with Discovery Communications;

Hallmark Gold Crown: a chain of independently-owned card and gift stores in the United States and Canada.


http://en.wikipedia.org/wiki/Crayola

Hallmark Business Connections: Incentives - Reward programs, recognition programs and online gift certificates;

Halls, an upscale department store at Kansas City's Country Club Plaza and Crown Center

Rainbow Brite: a franchise of children's dolls

Shirt Tales: a franchise of cards, featuring animals with shirts that read different messages

Sunrise Greetings: Located in Bloomington, IN

Zoobilee Zoo: a 1986 TV show, centered a zoo populated by animals with artistic tastes.


Stefan Persson

Full Name: Carl Stefan Erling Persson

Born: 4 October 1947 (age 64)

Residence: Stockholm

Citizenship: Sweden

Education: University of Stockholm

Occupation: Businessman

Known for: Chairman and main shareholder of H&M

Net worth: US $ 24.5 billion

Spouse: Carolyn Denise Persson

Awards: International Award, (U.S.) National Retail Federation, 2000.

Forbes list: 13th Forbes Billionaires

6.2


http://en.wikipedia.org/wiki/File:Stefan_Persson.jpg

6.2.1 Sidelights

Stefan Persson chairs the hugely successful clothing retailer Hennes & Mauritz AB, a

company founded by his father in Sweden in 1947. Known informally as "H&M," the

international chain of nearly 900 stores has mastered the art of delivering cheap but chic

styles and is poised to corner this segment of the United States market. Ranked Sweden's

richest private citizen, Persson is widely credited with taking the company global when he

succeeded his father as chief executive officer in 1982. BusinessWeek writers Kerry Capell

and Gerry Khermouch described H&M's successful strategy in a 2002 company profile:

"Treat fashion as if it were perishable produce: Keep it fresh, and keep it moving," they

wrote. "That means spotting the trends even before the trendoids do, turning the ideas into

affordable clothes, and making the apparel fly off the racks."

Persson was born the same year, 1947, as H&M. His father, Erling, was the son of a butcher

in Västerås, an hour or so outside of Stockholm. An entrepreneur, the senior Persson traveled

to New York City just after World War II and was impressed by large department stores like

Macy's and the range of women's apparel they offered. Returning to Västerås, he opened a

women's clothing store, Hennes ("hers" in Swedish), which offered inexpensive but stylish

apparel. It proved a hit with locals, and was soon able to open a Stockholm store, where lines

around the block formed on its first day of business. "The idea of providing such garments for

the average woman fitted in well with the egalitarian mood of post–war Sweden," noted

Financial Times writer Nicholas George, who wrote that the Scandinavian country's thriving

economy helped make it rise quickly to the list of the world's most affluent nations. "It is

often said that if Per–Albin Hansson, the legendary Social Democratic leader, created

Sweden's 'people's home' with welfare and security, Ingvar Kamprad, founder of Ikea,

furnished it and Erling Persson clothed it."


The Hennes company became "H&M" in 1968 when it bought Mauritz Widforss, a Swedish

hunting and gun retailer, which gave them a men's clothing line. By then, it had cautiously

ventured abroad, opening stores in Norway and Denmark. Persson joined his father's

company in 1972, and helped out at the launch of H&M's first London store four years later

by standing outside and handing out ABBA records as a promotional stunt. He became board

chair in 1979, with his father remaining chief executive officer (CEO), and began to

accelerate the expansion process soon afterward. The company moved into West Germany in

1980, and by 1985 had 200 stores across the continent and in the United Kingdom. "All over

northern Europe, frumpy department stores with sluggish centralised buying processes found

themselves out–thought and outsold by the new arrival," noted a writer for London's

Independent newspaper, Darius Sanai.

Persson attended the University of Stockholm. He lives in Stockholm, Sweden and is married

to Carolyn Denise Persson. They have three children. In 2009 his son, Karl-Johan Persson,

took over as President and CEO of H&M.

6.2.2 Stefan Persson with H&M

In 1982, Persson took the chief executive job when his father retired. H&M continued its

expansion, and a period of almost exponential growth followed. Listed on the Stockholm

Stock Exchange since 1974—a move made in part to avoid paying Sweden's onerous

inheritance taxes—H&M shares steadily increased in value as the company posted growth

rates of an astonishing 25 percent annually for a number of years. It launched children's and

maternity lines in its stores and by the late 1990s had bested competitors to become Europe's

largest apparel retailer. At one point in early 2000, H&M shares were considered by some

financial analysts to be the world's most highly valued stock in the retail sector. That stellar

reputation plummeted a little a few months later, when Fabian Mansson, a thirty–ish former


skateboard champion and chief executive officer to whom Persson had handed over his CEO

title in 1998, suddenly departed. Persson, who served as board chair, and his directors then

chose Rolf Eriksen, a company veteran, to replace Mansson, and returned to a more pressing

concern—the launch of H&M's first United States store, "the traditional graveyard for

ambitious European manufacturers and retailers," remarked Sanai in the Independent article.

H&M had leased a piece of prime real estate, on Fifth Avenue just across the street from

Rockefeller Center, and spent heavily on a pre–launch advertising campaign geared toward

an opening date of March 31, 2000. Persson was confident about entering such a tough,

saturated market when he spoke to WWD writer Anne D'Innocenzio on the night before the

flagship New York store opened to the public. "We are giving an extra edge when it comes to

fashion," he told D'Innocenzio. "We are giving value for the money. Americans like to make

a good deal." His instincts proved correct: When the doors opened the next day, shoppers

besieged the multi–level emporium, and security personnel had to close the doors for a time

because the space was above–capacity.

6.2.3 H&M’s Success

Part of H&M's success came from the in–house design team that Persson had established at

company headquarters in Stockholm in the mid–1980s, staffed by recent design–school

graduates. The company's manufacturing was then outsourced to a vast network of some

1,600 suppliers in countries like Bangladesh, China, and Turkey, where labor costs were low.

Persson was also convinced that tweaking merchandise for different countries was a waste of

company resources. "Everyone listens to the same type of music, watches the same films," he

told D'Innocenzio in WWD.

Persson's father, Erling, died at age 85 in October of 2002. He and his sister, Lottie, hold

some 70 percent of H&M voting shares, and 37 percent of its capital. H&M has survived


economic downturns in the retail sector and has even thrived: on 2002 sales of $5.8 billion,

the company turned an $833 million profit on an astonishing 550 million items sold. As

H&M chair, Persson is known to run a frugal ship, albeit one staffed by 39,000 employees

worldwide. Only a few executives have mobile–phone privileges, and those traveling on

behalf of the company—which operates in 17 countries and began expanding into Eastern

Europe in 2003—fly coach and do not submit expense–report receipts for cab rides. Persson

described such budgetary concerns as "crucial," he asserted in an interview with the

Financial Times 's George in 2001. "If we are to survive with our business idea of having the

best price and value, every unnecessarily spent krona [Swedish currency] will ultimately be

put on the price and threaten the whole business idea."

6.2.3 Founder

He is the founder of a non-profit organization, the Mentor Foundation. In 2000, he has

received International Award, National Retail Federation (U.S.). He also owns the small

English village of Linkenholt.

6.2.4 Achievement

According to Forbes Magazine 2007, he was the second richest man in Sweden and the

world’s 17th richest man with $18.4 billion and 2010 Forbes stated that, he was the world’s

13th richest man whose net worth stood $22.4 billion.


Type: Public traded Aktiebolag

Industry: Fashion

Founded: Vasteras, Sweden (1947 as “Hennes”)

Headquarters: Stockholm, Sweden

Key People: Stefan Persson (Chairman), Karl-Johan Persson (President and CEO)

Product: Clothing, cosmetics

Revenue: SEK 126.97 billion (2010)

Consolidated Annual Revenues: $ 4.1 billion in 2010

Operating Income: SEK 24.66 billion (2010)

Profit: SEK 18.68 billion (2010)

Employees: 59,440 (FTE, 2010 average)

Website: www.hm.com

6.2.5 Company Profile

Hennes & Mauritz AB

A retail Clothing Company


http://www.hm.com/

About H&M

H & M Hennes & Mauritz AB (operating as H&M) is a Swedish retail-clothing company,

known for its fast-fashion clothing offerings for women, men, teenagers and children. It has

over 2,300 stores in 41 countries and as of 2011 employed around 87,000 people.

The design team in the company’s Sweden office controls the steps of production from

merchandise planning to establishing specifications, and production is outsourced to

approximately 800 factories in Europe and Asia. These facilities are used for horizontal

division of labor rather than being integrated.

History

The company was established in 1947 by Erling Persson in Västerås, Sweden. At the time it

only sold women's clothing and was called Hennes, Swedish for "hers".

In 1968, Persson acquired the premises and inventory of a Stockholm hunting-equipment

store, Mauritz Widforss. Included in the inventory was a supply of men's clothing, prompting

Persson to expand into menswear. Accordingly, he renamed the store Hennes & Mauritz,

later abbreviated to H&M.

Erling's son Stefan became chief executive officer in 1990 and chairman of the board in

1998.

Today, the majority of the clothing is manufactured in Asia including Bangladesh, China,

Egypt, India, Pakistan and Turkey.

Business

The Group’s business consists mainly of sales of clothing, accessories, shoes, cosmetics and

home textiles to consumers. H&M’s business concept is to offer fashion and quality at the


best price. H&M’s principle for expansion is that every store shall have the best commercial

location. The business is operated from leased store premises, through internet and catalogue

sales and on a franchise basis. At the end of the financial year H&M was present in 38

markets, and the operations in nine of these were on a franchise basis. The total number of

stores at the end of the financial year was 2,206, of which 50 franchise stores, 35 COS stores,

48 Monki stores, 18 Weekday stores and one Cheap Monday store. Internet and catalogue

sales are offered in Sweden, Norway, Denmark, Finland, the Netherlands, Germany, Austria

and the UK. The home textile range, H&M Home, is sold via internet and catalogue sales and

also through stores in Stockholm, Helsinki, Copenhagen, London and Amsterdam. Focusing

on the customer, H&M’s own designers work with pattern designers and buyers to create a

broad and varied range for the fashion conscious. H&M’s design and buying department

creates the collections centrally. To ease the flow of goods, H&M is using the concept of

regional grouping.

H&M does not own any factories but instead outsources product manufacturing to around

700 independent suppliers through H&M’s 16 local production offices in Asia and Europe.

To guarantee the quality of the products and that manufacturing takes place under good

working conditions, H&M works in close cooperation with the suppliers. The production

offices are responsible for ensuring that orders are placed with the correct supplier, that the

products are manufactured at the right price and are of good quality, and that they are

delivered at the right time. The production offices also check that manufacturing takes place

under good working conditions.

Tests, such as chemical and laundry tests, are carried out on a continuous basis at the

production offices and at external laboratories. The goods are subsequently transported by

sea, rail, road or air to various distribution centres. From there the goods are distributed

directly to the stores and/or to central regional replenishment centres. The best price is


achieved by having few middlemen, buying in large volumes, buying the right product from

the right market, being cost-conscious in every part of the organisation and having efficient

distribution processes.

The company worldwide

Europe

Its first non-Swedish store was opened in Norway in 1964,[8] and from then onwards, the

company embarked upon a major expansion program opening many further stores in Europe,

including Denmark, Germany, Switzerland and the United Kingdom. The first H&M store to

open outside of Scandinavia was in the United Kingdom, in 1976.

In the 1990s, its first stores opened in Austria, Belgium, Finland, France, the Netherlands and

Spain. In Portugal the first store opened in 2003, in Chiado, Lisboa. The company has

continued to expand its business and the company has an extensive network throughout much

of Europe. Germany is the company's largest market (with 377 stores as of 2011), followed

by the United Kingdom (with 192 stores as of 2011) and then Sweden (with 168 stores as of

2011).

In Europe, online shopping is available in the UK, Germany, Sweden, Norway, The

Netherlands, Finland, Denmark and Austria.

Croatia

Croatia is the second country that isn't in The European Union where H&M opened their

store. On 7 and 14 April 2011, first two stores were opened in Croatia in the exclusive

Cvjetni shopping center in Zagreb and in the Arena Centar, near the Zagreb Arena. On 25

August 2011 store was opened in City Center One, Split, on 8 September 2011 store was


opened in Zadar and on 15 September 2011 store was opened in City Center One, Zagreb. On

20 October 2011 store was opened in Westgate Shopping City.

Russia

On 13 March 2009, the company opened its first location in Russia, in the Metropolis mall in

Moscow, near the Moscow Metro Voykovskaya station. On 20 March 2009, it opened a

second Russian location in the MEGA Family Shopping Centre in Khimki. On 22 October

2009, a third location opened in the MEGA Family Shopping Centre in Belaya Dacha. On 18

October 2009, a store was opened in Rostokino at the Golden Babylon shopping centre,

Europe's largest shopping centre.

The Americas

Canada

The company opened its first Canadian store in March 2004. There are currently fifty-six

stores in Canada, including Alberta, British Columbia, New Brunswick, Nova Scotia, Ontario

and Quebec.

United States

H&M store on 125th Street in New York City, United States (unknown date; pre April 2006).

Map of H&M stores in the U.S., as of August 2011. As of August 2010, the company had

nearly two hundred individual stores in the United States.

It had opened its first U.S. store in New York City, on Fifth Avenue (at 51st Street) in March

2000; there are now nine additional stores in city's Manhattan borough aloneOn 18 March


2010, the company opened its first store in North Carolina at the Crabtree Valley Mall in

Raleigh.

In October 2010, plans were announced for it to open its first Texas location in Dallas. The

Dallas store opened 19 August 2011 at the North Park Mall off of 75 in North Dallas. The

company opened in The Gardens Mall in Palm Beach Gardens, Florida, on 5 November

2010.

On 11 November 2010, it opened its first Oregon location at the Pioneer Place in Portland.

In 2011, H&M announced that it would open another location in the Carolinas in Winston-

Salem, North Carolina.

Online Shopping

On 27 January 2011, H&M announced through its official Twitter account that there will be

online shopping available to USA customers at the turn of 2011/2012.

Asia

H&M store in the Ginza district in Tokyo, Japan.

The company opened its first Asian store (also the

company's first franchise) in Dubai, United Arab

Emirates, in 2006. It followed with a store in the

Salmiya district of Kuwait City, Kuwait.

The first Israeli store was opened in Tel Aviv in 2010,

followed by five more stores across the country. More

stores are expected to open, mainly in the Tel Aviv

Metropolitan Area.


It expanded into East Asia in March 2007, with its first store opening in Central Hong Kong

on 10 March 2007. Australian pop singer Kylie Minogue opened that store where she also

exclusively launched her range of swimwear, "H&M loves Kylie".

The first location in Shanghai, China, was opened in 2007.

The first Japanese store was opened in Ginza on 13 September 2008, while a second store

was opened in Harajuku in November 2008. Another store was opened in the Shibuya

shopping district on 19 September 2009.

On 25 February 2009, the company announced that it had signed an agreement to open its

first store in South Korea, located in the Myeongdong district of Seoul, and that it was

scheduled to open during Spring 2010.

The company will open the first store in Singapore in Autumn 2011, to be located on Orchard

Road.

Australia

Although the company as of May 2011 has no stores in Australia, in April 2007, Kylie

Minogue teamed up with the company to introduce a swimwear line called, "H&M loves

Kylie", featuring a theme of Australia. "When we think of Australia and glamour, we think

Kylie, who is such a stylish person," the company's design head Margareta van den Bosch

said in a statement. It has been suggested that a barrier to entry into Australia (and other

Southern Hemisphere nations) is that these countries seasons are opposite to the Northern

Hemisphere.

Marketing


In 2008, the company used the song "Hang On" by British singer-songwriter Lettie as

background music to its UK website. Their fashions have been featured in an interactive

fashion art film by Imagine Fashion called Decadent Control. It premiered in March 2011 and

stars Roberto Cavalli, Kirsty Hume, Eva Herzigová and Brad Kroenig.

Guest-designer collaborations

In November 2004, selected company stores offered an exclusive collection by fashion

designer Karl Lagerfeld. The press reported large crowds and that the initial inventories in the

larger cities were sold out within an hour, although the clothes were still available in less-

fashion-sensitive areas until the company redistributed them to meet with demand.

In November 2005, the company launched a collection by Stella McCartney and, in

November 2006, by avant-garde Dutch designers Viktor & Rolf.

In March 2007, it launched another collaboration designed by the pop star Madonna. In June

2007 the company worked with game developers Maxis to create a stuff pack for the latter's

The Sims 2 computer game, H&M Fashion Stuff.

In November 2007, the company launched a collection by Italian designer Roberto Cavalli. It

was reported that the clothing sold out very quickly. Also in 2007, another design with Kylie

Minogue was launched in Shanghai, China. In the fall of 2008 the Japanese company Comme

des Garçons was selected as guest designer.

For spring and summer 2009, the British designer Matthew Williamson created two exclusive

ranges for the company – the first being a collection of women's clothes released in selected

stores. The second collection saw Williamson branch into menswear for the first time, only in

selected stores. The second collection also featured swimwear for men and women and was

available in every company store worldwide.


On 14 November 2009, the company released a limited-edition diffusion collection by Jimmy

Choo featuring shoes and handbags, ranging from £30 to £170 including a range of men's

shoes. The collection also included clothing designed by Choo for the first time, many

garments made from suede and leather, and was available in 200 stores worldwide, including

London's Oxford Circus store. Sonia Rykiel also collaborated with the company, by

designing a ladies knitwear and lingerie range that was released in selected company stores

on 5 December 2009.

For Fall 2010, the company collaborated with French fashion house Lanvin for its 2010 guest

designer.

For Spring/Summer 2011, the company collaborated with fashion blogger Elin Kling, which

was available at selected stores only.

In June 2011, H&M announced a collaboration plan with Versace, that was released on

November 19. Versace is also planning a Spring collaboration with H&M that will only be

available in countries with online sales.

In November 2011, H&M announced a collaboration plan with Marni, to be launched in

March 2012. The campaign will be directed by award-winning director Sofia Coppola.

Brand

The branding consultancy Interbrand ranked the company as the twenty-first most-valuable

global brand in 2009 and 2010, making it the highest-ranked retailer in the survey. Its worth

is estimated at $12–16 billion.

The full company name Hennes & Mauritz was rebranded to H&M to simplify worldwide

perception of the brand.


The company owns the two-letter domain hm.com. The domain was registered in the early

1990s, but data on the first registration is lost. In 1998 Hennes & Mauritz was able to buy the

domain hm.com from a company called A1 in a non-published domain transaction.

Home furnishing

In a press release, the company announced that it would begin selling home furnishings. As

of 2009, it was distributed exclusively by the company's internet catalog, so it is only

available in countries where H&M is sold online, such as Denmark, Finland, Germany, the

Netherlands, Norway, Sweden and the UK.

Controversies

On 6 January 2010, it was reported that unsold clothing and other items in one New York

City store are cut up before being discarded, presumably to prevent resale or use.


7. RECOMMENDATIONS

The study of the programs for entrepreneurship education indicates the proposition that given

the motivational training and key inputs, the educated youth particularly having

entrepreneurial qualities could be attracted to entrepreneurial activities and lured to undertake

small ventures. Bangladesh has immense potentiality in terms of resource endowments both

material and human for entrepreneurship development. What is needed is to devise

appropriate policy and implementation measures for the improvement of entrepreneurship

education and training in the country. For developing sound entrepreneurship education and

training, the following measures are recommended:

a) Entrepreneurship education should be recognized as an important component of human

resource development in the country. This should be reflected in the education and

development policy of the country.

b) In order to create general awareness on the subject entrepreneurship course should be

introduced in the curriculum at different levels of educational system in all disciplines. The

courses should be designed by experts and offered by trained teachers. The graduates

intending to take self-employment by starting small ventures should be provided by required

support & sustaining assistance.

c) Short term training course should be designed and organized for different target groups and

offered by trained motivated and trained/trainers. While designing the training programs,

specific needs of the target group are required to be identified by appropriate means.

Needless to say that the training program should be supported by appropriate assistance.

d) Training of trainers and motivators is essential for organizing successful operation of

entrepreneurship Education and training.


e) Provision should be made for improving the capability of existing training institutions by

providing needed assistance.

f) A separate training institute for entrepreneurship development should be established.

Establishment of new training institutions particularly in the private sector should be

encouraged by taking policy initiative and promotional assistance.

g) Special program should be designed for those beneficiaries who want to graduate

themselves out of income generating activities in the country.

h) Appropriate mechanism should be developed to establish effective linkage with

institutions (including universities, donor agencies) engaged in entrepreneurship education

and training at national, regional, and international level for strengthening existing and new

approaches in bringing qualitative improvement in force.

Specific Recommendations for Technical Graduates:

(i) Introduction of general awareness and basic courses on entrepreneurship and self-

employment into the vocational training curriculum. The objective of adding the new

dimension to the Technical Education curriculum should be to create awareness of business

opportunities available for the graduates as well as to motivate them toward self –

employment and entrepreneurship.

The following key points should be considered in implementing this recommendation.

A compulsory module or course on entrepreneurship should be introduced for all

disciplines in the technical education system.

The curriculum on entrepreneurship should be developed by an expert committee


Reading, instructional materials, and teaching aids for the course should also be

developed by specialists in the area of entrepreneurship, small business management,

behavioral science.

Instructors offering entrepreneurship courses should be professionally trained and

motivated to teach the subject successfully. A cadre of dynamic young instructors

should be recruited from accredited business schools and by carefully screening and

selecting applicants from among those existing instructors who have the aptitude and

ability to serve in this capacity.

(ii) An intensive short term entrepreneurship training program should be offered for

Technical graduates and others living in the immediate vicinity of the technical centers who

are unemployed and interested in starting micro-enterprises and small business ventures.

An integrated package of assistance in terms of capital, kits, etc. may be designed and made

available to the graduates motivated to take up self-employment or start a small business

venture.

(iii) For effective administration and proper implementation of the entrepreneurship

education in technical education system as separate division named entrepreneurship

development should be established under the Bangladesh Technical Education Board.


8. CONCLUSIONS

To sum up experiences of the programs of entrepreneurship education and training, it may be

stated that it has not yet received due attention at the policy level as a strategy of human

resource development. This is also reflected in the educational curriculum and inadequate

training provisions in the country. General awareness of entrepreneurial attitude and

motivation are required to be developed during the learning periods of the students.

Entrepreneurship course has not yet been included in the curriculum at all levels of education

system in our country. This shortfall can be dealt by bringing reforms in the Education

system of our country. Lack of trained and experienced teachers, absence of text books and

reading materials exposing Bangladesh situation, inconsistencies and over-lapping of course

contents and absence of positive attitude of concerned authorities appear to be major

problems for effective delivery of entrepreneurship education. However, it is observed from

the experience of few seminars organized by Technical Education Board for teachers and

institutional heads that the attitude towards entrepreneurship education is changing in a

positive direction.


References:

1. AUDRETSCH, D.B. (1994), “Small business in industrial economics: the new learning”,

Revue d‟Economie Industrielle, 67, 21-39.

2. BALAND, J.-M. and P. FRANCOIS (2000), “Rent-seeking and resource booms”, Journal

of Development Economics, 61 (2), 527-542.

3. BAUMOL, W.J. (1993), Entrepreneurship, management, and the structure of payoffs,

Cambridge, Massachusetts: MIT Press.

4. BURKE, A.E. (1995), “The Re-emergence of entrepreneurial analyses”, in BURKE, A.E.,

ed., Enterprise and the Irish Economy, Dublin: Oak Tree Press, 4-20.

5. CASSON, M. (1982), the Entrepreneur. An Economic Theory, Oxford: Martin

RoCONGLETON, R.D. and R.D. TOLLISON, ed. (1995), The economic analysis of rent

seeking,

6. DUTZ, M.A., J.A. ORDOVER and R.D. WILLIG (2000), “Entrepreneurship, access

policy and economic development: lessons from industrial organization”, European

Economic Review, 44, 739-747.

7. SCHUMPETER, J.A. (1911), Theorie der wirtschaftlichen Entwicklung. Eine

Untersuchung über Unternehmergewinn, Kapital, Kredit, Zins und den Konjunkturzyklus ;

translated by R. OPIE, The Theory of Economic Development. An Inquiry into Profits,

Capital, Credit, Interest, and the Business Cycle, Oxford: Oxford University Press (1963

(1934)).

8. SCHUMPETER, J.A. (1942), Capitalism, Socialism and Democracy, New York: Harper

and Row.


9. Andrews, Kelly J. "Outsourcing Lessons From Hallmark." Target Marketing (December

1999): p. 22.

10. Ancestry of Joyce Clyde Hall

11. "Annual Results 2010". Hennes & Mauritz. Retrieved January 27, 2011.

12. "About H&M". HM.com.

13. H&M – Fashion. Hm.com (November 25, 2008). Retrieved December 31, 2010

14.http://www.forbes.com/sites/bluecarreon/2011/11/29/marni-for-hm-collaboration-for-

spring-2012/ Marni For H&M Collaboration For Spring 2012, 29 November 2011.

Websites

1. www.wikipedia.com

2. http://www.crayola.com

3. http://www.hallmark.com

4. http://www.referenceforbusiness.com/businesses/G-L/Hall-Joyce-C.html#ixzz1jSp10idT

5. www.hm.com

6. http://www.businessweek.com/magazine/content/03_02/b3815611.htm

7.http://www.notablebiographies.com/newsmakers2/2004-Ko-Pr/Persson-

Stefan.html#ixzz1gJhT3VZq

8. www.forbes.com


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