Entrepreneurship Course

EMBA Batch

April 2013 Session 3

The Program
Session Topic 1

Introduction

Entrepreneurship

The Entrepreneur

Business Planning

Curriculum Welcome the students Explain course and schedule The Contract Students expectation of the course Interaction I the Business Case Study #1 Interaction The Name Ball Interaction-I the Investor Part 1 Discussion Singapore Incorporated and Entrepreneurship Presentation Entrepreneurship Process Presentation Leadership and Entrepreneurship explained Interaction I the Business Case Study #2 Discussion Doing Business in India and China Interaction Jockey Quiz Presentation Myths about entrepreneurship Presentation The ten mistakes a new entrepreneur make Interaction I the Business Case Study #3 Self Assessment - Are you the entrepreneurial type? Discussion Challenges of an Entrepreneur Discussion Guan Xi and networking Discussion Business entertainment Presentation Generating ideas and opportunities Presentation Types of Business Plan Presentation Making assumptions and identifying constraints Interaction I the Business Case Study #4 Interaction Briefing on The Coffee Stall Business Discussion Business Entertainment Understanding of social entrepreneurship Learning the value of business (The Coffee Stall Business)

Date

9th April 7.00 pm to 8.15pm

9th April 9.00 pm to 10.15 pm

10th April 7.00 pm to 8.15 pm

10th April 9.00 pm to 10.15 pm

5 6

Site Visit at Dignity Kitchen

11th April 6.00 pm to 8.30 pm

The Program
Session Topic Curriculum Presentation Understanding and evaluating business risks Presentation Taking Risk Presentation Funding Types and Process Presentation Closing the Deal Interaction - I the Investor Part 2 Interaction I the Business Case Study #5 Discussion - My Business Values Presentation Business structures & its incorporation Presentation Processes and System Presentation Maintaining a business Presentation Growth of a Business Interaction I the Business Case Study #6 Discussion Learning from the $100 Experience Presentation Death of a business Presentation Why business failed Presentation Element of Success in Business Discussion Bad Business Practice I the Business Individual Assessment The $100 Experience Business Plan Presentation Course Review Result of your Assessment Review of The Contract Date

Getting Started in Business

13th April
2.00 pm to 3.15pm

Doing Business

13th April
4.00 pm to 5.15 pm

Success in Business

13th April
6.00 pm to 7.15 pm

10 11

Assessment Assessment

14th April
10.00 am to 11.15 am

14th April
12.00 pm to 1.15 pm

12

Conclusion

14th April
2.00 pm to 3.15 pm

Session 3 The Entrepreneur

Interaction Jockey Quiz Presentation Myths about entrepreneurship The ten mistakes a new entrepreneur make Interaction I the Business Case Study #3 Self Assessment Are you the entrepreneurial type? The Name Ball Discussion Challenges of an Entrepreneur Preview & Assignment Background Reading Questions and Answers

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Jockey Quiz

Interaction

Jockey Quiz

On your understanding of entrepreneurship Multiple choice - 15 questions Duration - 10 minutes Write down only your student number on the top right hand corner Assess the quiz paper of your friend objectively Play the Jockey

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Jockey Quiz - Example

00

Graduated from the London School of Economics and subsequently becoming the financial controller for Virgin Records in London "Malaysian CEO of the Year 2003" in December 2003 and "Malaysian Ernst & Young Entrepreneur of the Year 2006" Introduced the first budget no-frills airline to the Malaysians with the tagline "Now everyone can fly

Tony Fernandes

Jockey Quiz
No. Description Who Am I? 1

Discovered his interest in software and began programming computers at age 13 He is the chief software architect in the worldwide leader in software He and his wife donate rigorously to charities all around the world After he got out of the US military he decided he wanted his own department store, so that he can support his family Borrowed $20,000 from his father-in-law and had $5,000 saved from the military to start his business Became the world's number one retailer At an early age, he learned that he could buy matches in bulk from Stockholm and sell them at a fair price, but a good profit. At age 17, his father gave him a nice reward for doing well in school and he started his company Today it is one of the largest, most successful privately held companies in the world, with over 200 stores in 31 countries, employing over 75,000 people A Kitchen wares salesman At age 52 and in poor health, took over a family-run restaurant in the desert outside Los Angeles Develop the concept of a limited menu, fast service and low prices and expand it nationally, in the process creating the fast-food industry Founded a banking system 30 years ago to lend small amounts of money to the rural poor in Bangladeshi villages Today has 2,422 branches, employs more than 20,000 people Awarded the 2006 Nobel Peace Prize winner He hopes of becoming a doctor but abandoned studies to start his own business at just 19 years of age. He founded his company from his University of Texas dorm room in 1984 with just $1000 Created a new model for PC sales. He combined the just-in-time production techniques pioneered by Toyota with a direct-to-customer sales system His first business venture were growing Christmas trees and raising budgerigars) After the failed endeavor at the age of 16, he had begun his first successful company - a student magazine By the age of 20, he had founded a small mail order record retailer called Virgin, and shortly thereafter, he opened a record shop on Oxford Street in London

Bill Gates

Sam Walton

Ingvar Kamprad

Ray Kroc

Muhammad Yunus

Michael Dell

Richard Branson

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Jockey Quiz
No. Description A avid artist from an early age and producing a silent cartoon called Plane Crazy that featured a new character named Mickey Mouse He won 26 Oscars over the course of his career, the most awards given to any individual Opened the worlds first theme park in 1955 unlike any other the world had seen. started tertiary education to become a teacher, married and make a living running a restaurant and a hotel She created cosmetics out of every ingredient that she stored in her garage and finance the store using her hotel as collateral Today she has over 1,980 stores and more than 77 million customers in 50 different markets serving customers in over 25 different languages Forced to leave school at 15 and founded a job in a trading company After several financial setback, he started his first business manufacturing plastic flowers Often referred to in Hong Kong as Superman because of his business prowess He started as a front desk clerk, at The Cecil Hotel at a salary of Rs 50 per month. He acquired his first hotel by mortgaging his wife's jewelry and all his assets He was the first to employ women in the hospitality sector He started his entrepreneurial career by selling bhajias to pilgrims in Mount Girnar over the weekends He worked in Yemen as a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958 with Rs 50,000 and set up a textile trading company. Grew up dreaming of being "a soldier, a policeman or a scientist" but he wound up teaching English in his hometown instead Failed college entrance examinations twice Created the worlds largest online B2B marketplace At a young age, displayed an amazing aptitude for both money and business with an uncanny ability to calculate columns of numbers off the top of his head. Filed his first tax return at the age of 13 Apply to Harvard Business School and got rejected Become a millionaire at the age of 32 and today is one of the richest man in the world Born in a small village in Rajasthan, India and move to live in United Kingdom Started his own steel business by buying a rundown plant in Indonesia Created the largest steel group in the world Who Am I?

Walt Disney

Anita Roddick

10

Li Ka-shing

11

M.S. Oberoi

12

Dhirubhai Ambani

13

Jack Ma

14

Warren Buffet

15

Lakshmi Mittal

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Jockey Quiz Tie break

What does S P in S P Jain stand for?

Who are Christopher and Benjamin in the

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Where in Singapore is Palau Blakang Mati?

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The 5 Myths about Entrepreneurship

Presentation

The 5 Myths About Entrepreneurs

1) The Risk Taking Myth:
Most successful entrepreneurs take wild, uncalculated risks in starting their companies. Why is this wrong? 2) The High-Tech Myth: Most successful entrepreneurs start their companies with a breakthrough invention, usually technological in nature. Why is this wrong? 3) The Expert Myth: Most successful entrepreneurs have strong track records and years of experience in their industries. Why is this wrong? 4) The Strategic Vision Myth: Most successful entrepreneurs have a well developed business plan and have researched their ideas before taking action. Why is this wrong? 5) The Venture Capital Myth: Most successful entrepreneurs start their companies with millions in venture capital to develop their idea, buy supplies and hire employees. Why is this wrong?
by Dr. Peter Strachan The 5 Myths about Entrepreneurs

The Risk Taking Myth

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

Risk is part of doing business Professional risk most entrepreneurs are not well-established

Financial risk most entrepreneurs have few if any financial assets

Highest risk often comes later in the business, not at the start Most risk is carried by employees, suppliers, customers

The High-Tech Myth

Most successful entrepreneurs start their companies with breakthrough invention, usually technological in nature.
While many of us think of the technology boom and high tech start-ups, the Fortune 500 lists a variety of types of companies. Many successful new businesses found a way to market an existing product in a new fashion or to a new customer base. Think of: Starbucks
McDonalds Dell Pantaloon Shoppers Stop

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

The Expert Myth

Most successful entrepreneurs have strong track records and years of experience in their industries.
40% of Inc. 500 founders had no prior industry experience;
One-third of Inc. 500 founders were out of work when they started their companies. Examples:
Dato Tony Fernandes and Air Asia
Steve Wozniak was an undistinguished engineer at HP Donald Trump and the Taj Casino George Quek of BreakTalk has no bakery qualification

The Strategic Vision Myth

Most successful entrepreneurs have a well developed business plan and have researched their ideas before taking action. Only 4% of Inc. 500 companies used any sort of system research to develop their business ideas;

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

The Venture Capital Myth

Most successful entrepreneurs start their companies with millions in venture capital to develop their idea, buy supplies and hire employees. Only 4% of Inc. 500 companies, and less than 1% of all start-up companies in the US, used venture capital;

Founders of Hotmail failed to secure venture capital despite more than 20 attempts;
Bill Gates and Paul Allen failed to receive venture capital for Microsoft;

Venture capital is dominant in some industries, such as biotechnology.

The Entrepreneur

Presentation
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The Entrepreneur

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The Entrepreneur
There are many reasons why people seek to be entrepreneurs

Make more money Fulfill their dreams Prove that they are more capable Need for achievement Independence Be their own Boss Create employment opportunity for self and others
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Who is the Entrepreneur?

Lee Kuan Yew ? Liew Mun Leong (Capitaland) Goh Chok Tong ? Lee Hsieh Lung ? Ho Ching ? Richard Li (PCCW) Koh Boon Hwee? (DBS Bank)

HIGH

INVENTOR
CREATIVITY & INNOVATION

ENTREPRENEUR

PROMOTER

MANAGER / ADMINISTRATOR
HIGH

LOW GENERAL MANAGEMENT SKILLS, BUSINESS KNOW-HOW & NETWORK

Reference: Jeffry Timmons New Venture Creation

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The Entrepreneur
there has been increased interest in entrepreneurship in Singapore

even though it still lags other countries

%
50 45 40 35 30 25 20 15 10 5 0 Australia Singapore Malaysia New Zealand
Source: Business Trends Survey, 2002

Percentage of people who want to be their own Boss

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The Entrepreneur
Do realize that starting a business is still a risky endeavor >40% of adults think of starting a small business <10% of these get it done within 2 years >50% of these 10% close within 4 years
Note: US statistics from Frank Tarkenton, What losing taught me about winning.

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Reasons why you DID NOT take up entrepreneurship

Presentation
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Reasons why you DID NOT take up entrepreneurship

Fear of the Unknown Lack of information Threats to status Threats to established skills and competencies Fear of Failure

Reluctance to let go
Lack of Perceived benefits
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Reasons why you DID NOT take up entrepreneurship

History and Previous custom Fear of looking stupid Feeling vulnerable and exposed

Threat to self esteem

Lose of team relationships High anxiety

STRESS
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The ten mistakes a NEW entrepreneur makes

Presentation
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The ten mistakes a new entrepreneur makes

1. Getting into the business for the wrong reasons. Many people decide to start a business because they have become disillusioned with their current job or have lost their position due to a layoff or termination. While the entrepreneurial route is certainly one option to consider, it is often a reaction to what has felt like a negative situation, i.e., If I start my own thing, no one can fire me! There are a host of other factors to consider before starting your own business. Do your due diligence before you leap into the deep end. 2. Quitting your day job too soon. Starting a business can be expensive, and it is rarely profitable in the beginning. Dont cut off your source of income until you have yourself established with a game plan for a new one. 3. Postponing incorporation. Its tempting to simply set up shop as a sole proprietor because its easy, but its also risky. All of your personal assets are at risk and there is no line of demarcation between you and your enterprise. Invest the time and resources necessary to create a business structure that stands separate and on its own

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The ten mistakes a new entrepreneur makes

4. Thinking you can do it all yourself. When you work for an established organization in a regular job, you typically have a defined role with a limited scope. People setting up a new business are often tempted to try to do it all in order to cut costs and save time. Do the things you do well and hire out the rest. 5. Not having a well-defined target market. Make sure you are clear about who you will serve and how, or else you may end up serving no one. 6. Over-promising. In starting a business, many people are so eager to find customers that they create expectations that are impossible to fulfill. Make sure you are setting expectations that you can actually deliver. 7. Emphasizing packaging over substance. Theres something exciting about getting your first set of business cards and taking a Web site live for the first time that is exhilarating. On the other hand, many people invest big dollars on things that are just not necessary in the beginning. Consider where you want to invest your resources before mounting a glitz campaign that may be more than you need.
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The ten mistakes a new entrepreneur makes

8. Working in the business instead of on the business. Many new business owners get so knee-deep in delivering products or services that they neglect to set up the management structures and systems that are necessary for sustaining a business. Take the time to create the container in which your products and services will reside and then manage that structure. 9. Incurring too much debt. It can be tricky to determine what constitutes a reasonable debt load in a new business. But it is important to have some personal answers. What is your own risk tolerance? How much debt can you take on before you begin losing sleep at night? How much (if any) of your own funds are you able or willing to use to seed the business? It will be hard for your new enterprise to flourish if you are overwhelmed by money worries. 10. Letting the business consume your life. One of the best reasons for becoming an entrepreneur is to add to your quality of life. Dont allow the business that you worked so hard to establish to leech into your personal life. Build strong boundaries that will enable you to have a life that isnt just about your work; both you and your business will be better served.
By Barbara Poole Career Coach

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Are you the Entrepreneur type?

Interaction
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Interaction Are you the Entrepreneur type?

Self Assessment

Better measure your entrepreneurial potential

50 Questions 1= Totally Disagree 2=Somewhat Disagree 3=Somewhat Agree

4=Totally Agree
Developed by the Canadian Business Centre for Entrepreneurship Development. Based on 3 Criteria Motivation, Aptitudes and Attitudes Add up your score at the end and compare with the industrial means score

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Interaction Are you the Entrepreneur type?

MOTIVATION Need for achievement / success Power / control appeal Need for challenges / ambition Self-sufficiency / freedom ATTITUDES APTITUDES Perseverance / Determination Self-confidence / Enthusiasm Tolerance towards ambiguity / Resistance to stress Creativity / Imagination Action oriented

Perception to act upon ones destiny

Action oriented

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Challenges of an Entrepreneur

Discussion
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Findings for 2007

Survey of 1500 start-up Conducted by Action Community for Entrepreneurship

(ACE) and DP Information Group Started on own funding Education and starting a business may have a correlation Over 50s less likely to do a start-up

Reasons why you DID NOT take up entrepreneurship

Findings
Not Profitable

2006 (%)
37

2007 (%)
58

Age of founders
30 and Under 31 40 41 50 Over 50 20 45 27 8 19 46 28 7

Educational Level
Secondary or lower Diploma and A Level Bachelor degree Masters 30 28 26 16 26 36 23 15

Start-up Funding (some overlapping)

Own Money From friends and family Term loans Bank overdraft Venture capital Other sources 90 23 12 11 5 17 84 12 9 6 4 10
Source : DP Information Group

Being Employed to Self Employed

Being Employed Fixed income range Fixed scope of work Fixed hours of work Fixed circle of network Fixed prospect Self Employed Variable component of income sources Variable range of work scope and greater learning Variable working hours but longer / flexible hours Variable circle of network Variable prospects

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Worried about $$$ - Samads Income Component

Halal certified assessor Internet football tour organizer

Miscellaneous

Basic

Football referee

Income Components

Allowance

Bonus
Football jersey designer Trainer on food hygiene Coach at a Primary school

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Worried about $$$ - Carols Income Component

Safety Officer

Miscellaneous

Basic

Restaurant Design Consultant

Income Components

Property Agent

Allowance

Bonus

Caf Owner

Income is limited by your skill base and time

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Worried about $$$

Consultancy

Miscellaneous

Basic

Merger / Acquisition

Assessment

Income Components

Allowance

Bonus
Mentoring Teaching

Book Selling

Need to build up your competencies and charge for it

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Worried about $$$

$ Bonuses

Attain the Minimum income

Time (Per period of Time)

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Want and Need

Youth starting up stall in Vivocity shopping mall

Ladies starting up stall on the street of Mumbai One WANTS to be and the other NEEDS to be
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The Entrepreneur Rollercoaster

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Family Health Centre

Case Study #3
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Interaction: I as the Business

Scenario:
You are the owner of a Family Theme Health Center in Shenzhen, China. Your started the business eight years ago with a group of ex-army officers. The business has grown from strength to strength and is now a top health centre for family.
Due to some shareholders problems, you wanted to sell off your shares in the business. The problem is due to the recent investigation by the authority on corruption and you want to be out of the business. The reason you give is poor health and migration oversea for your childs education. You valued your 10% stake for USD 250,000 .
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Interaction: I as the Business

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Interaction: I as the Business

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Interaction: I as the Business

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Are you the Entrepreneur type?

Interaction
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Interaction Are you the Entrepreneur type?

Self Assessment

Better measure your entrepreneurial potential

50 Questions 1= Totally Disagree 2=Somewhat Disagree 3=Somewhat Agree

4=Totally Agree
Developed by the Canadian Business Centre for Entrepreneurship Development. Based on 3 Criteria Motivation, Aptitudes and Attitudes Add up your score at the end and compare with the industrial means score

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Interaction Are you the Entrepreneur type?

MOTIVATION Need for achievement / success Power / control appeal Need for challenges / ambition Self-sufficiency / freedom ATTITUDES APTITUDES Perseverance / Determination Self-confidence / Enthusiasm Tolerance towards ambiguity / Resistance to stress Creativity / Imagination Action oriented

Perception to act upon ones destiny

Action oriented

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Are you the Entrepreneur type?

Entrepreneurs (as per Canadian Entrepreneurship study) Industrial Means Motivation Aptitudes Attitudes Total Score 58 to 75 62 to 70 29 to 38 149 to 183
Students profile ( as per 200 students) Industrial Means Motivation Aptitudes 56 to 72 54 to 63

Attitudes
Total Score

22 to 28
132 to 163

The Name Ball

Interaction
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The Name Ball

1. The Name Ball will be the person with the highest votes. 2. The voting criteria will be "The person "Most Deservedly" from your class to have the Name Ball". You and you alone define the meaning of "Most Deservedly. 3. One person one vote. 4. Self nomination is NOT allowed. 5. Submission is by Friday Midnight. You can submit anytime before the date. 6. Once submitted you are not allowed to change. 7. Class participation 5 marks No submission ZERO mark 8. Submission will be "Your Name = XXXXXXXX; Your choice = XXXXXXXXX (full name)" to this email address. 9. In the event of a tie, the tie break will be a trial of three IQ challenges. - "The egg drop"/ "Set the mahjong" / "Break the code 10. The Name Ball will be presented on the final lesson.
Have Fun
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Background Reading

The 5 Myths about Entrepreneurs

by Peter Strachan

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Questions & Answers

My email address: chrisben@singnet.com.sg