Professional Documents
Culture Documents
Hospitality Small
Business Operations
Ms. Elaine Yang Chiao Ling
Prescribed Texts
Lecture
Baboon Caf
http://zanephotoz.blogspot.com/2011/10/baboon-house-cozy-cafehostel.html
Limau-limau Caf
http://limaulimaucafe.blogspot.com/
Introduction to Small
Business
Lecture 1
Learning Objectives
Define what is small business
Describe the characteristics of small business
Discuss where the opportunities are for small businesses
Explain some of the current problems small business face
Explain why people start small businesses
SME in Malaysia
97% of total businesses
32% of total GDP
19% of total exports
60% of total workforce
The BIGGEST business community in Malaysia
What is Small?
Under 20 employees Very small
20-99
Small
100-499
Medium
500 or more
Large
EU:
34% of workforce is less than 10 people
Service
Profit
Social
Prepared by Elaine Yang
Growth
Service Objective
To serve customers
Small business must set service as the primary objective but seek to
make a profit as a natural consequence
Profit Objective
Profit is the revenue received by a business in excess of the
expenses paid.
Profit motive is entering a business to make a profit, which is the
reward for taking risks.
Social Objective
Goals regarding assisting groups in the community and protecting
the environment
Social responsibility & ethics
Growth Objective
Will I be satisfied for my business to remain small?
Do I want it to grow and challenge larger firms?
Do I seek a profit that is only satisfactory or do I seek to maximize
profits?
Steve Jobs was a 21-year-old college dropout living with his parents in Los Altos, Calif, where
he and two friends, Steve Wozniak and Ronald Wayne, would hang out in the garage.
For other trios, this would be the beginning of a rock band; but Jobs, "Woz" and Wayne had
other things on their minds.
Jobs and Wayne had both worked together at the gaming company, Atari, while Wozniak,
26, had worked for Hewlett-Packard. The three men incorporated Apple Computer on April
1, 1976.
While the two Steves went on to greatness as Apple's revolutionary approach to personal
computing bore fruit, Wayne sold his share of the newly created Apple for just $800 just three
months after its inception.
With Wozniak doing most of the building and Jobs handling the sales, the two made enough
money off the hobbyist market to invest in the Apple II.
It was the Apple II that made the company. Jobs and Wozniak created enough interest in
their new product to attract venture capital. This meant they were in the big leagues and their
company, Apple, was officially incorporated in 1977.
Steve Jobs was a month shy of his 22nd birthday and would be a millionaire by his 23rd.
Values
Mental
Abilities
Attitudes
Prepared by Elaine Yang
Economics
Technology
Lifestyle
Political-legal
Demographics
Population growth rate, age and regional shifts, ethnic moves and life
expectancy, size and character of markets
Reading
Problems of Small and Medium Budget Hotel Operator
Introduction
Reasons of Failure
Lack of managerial experience
Lack of financial backing
Poor location
Unexpected growth
Communication skills
Threat of Failure
Discontinuance: A voluntary decision to terminate a business
Formal failures
Failure ending up in court with loss to creditors
Personal failures
The owner who cannot succeed voluntarily terminates the business
Reading
Problems of Small and Medium Budget Hotel Operator
Discussion
Conclusion
Business Incubators
Business plan competition
MIBPC Poster
Discussion
All of us have had personal experiences with small business.
Explain one or more such experience you have recently had.
What comes to your mind when you think of a small business?
How does your concept differ from what you have learnt in this
lecture?
Distinguish between a small business and an entrepreneurial
venture. If you were to start your own business, which would you
wish it to be? Why?
Discussion
What are the unique contributions of small business? Give
examples from your own experience.
What are some problems facing small businesses? Give examples
from your own experience.
Explain the interrelationship between the service and profit
objectives.