eMBA Apr13 Session 2

Entrepreneurship Course
EMBA Batch
April 2013 Session 2
The Program
Session Topic 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 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
Introduction
Entrepreneurship
9th April 9.00 pm to 10.15 pm
The Entrepreneur
Business Planning
5 6
Site Visit at Dignity Kitchen
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
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Conclusion
14th April
2.00 pm to 3.15 pm
Session 2 Entrepreneurship
Presentation Entrepreneurship Process Leadership and Entrepreneurship explained Interaction I the Business Case Study #2 Discussion Doing Business in India and China Preview & Assignment Background Reading Questions and Answers
Christopher Benjamin Consultancy Services
Introduction to Entrepreneurship
Presentation
Christopher Benjamin Consultancy Services 5
Entrepreneurship Process
Moral value is the conscious of the entrepreneur
Review, modify and adapt Why Do It?
Focus on needs not want, business last longer
Identify the Needs
Age, sex, religion, language are not barrier to success, the mind is
Need a platform
Implement
Build the KNOWLEDGE and Learn the SKILL
Generating the idea
Never start with how to write a business plan but with an idea
Need an entity tangible or intangible

Document
Research, Evaluate and Communicate
Competencies
..hopes to develop these competencies some but not all.
Entrepreneurship
Entrepreneurship is about seeing opportunities and bringing about changes
Entrepreneurship is a skill - Can be learned Difficult to teach Need to practice
Entrepreneurship
Entrepreneurship is defined as
The process of organising a commercial undertaking
Webster Dictionary
Entrepreneurship
The entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.
French economist J. B. Say around 1800
10
Entrepreneurship
All new small businesses have many factors in common. But to be entrepreneurial, an enterprise has to have special characteristics over and above being new and small. Indeed, entrepreneurs are a minority among new businesses. They create something new, something different; they change or transmute values. Peter Drucker
11
Entrepreneurship
It is identifying an opportunity and executing on that opportunity for the purpose of wealth creation. An entrepreneur sees, evaluates and exploits opportunities, whereas a manager concentrates on the effective use of available resources to achieve optimum results. - SM Lee Kuan Yew, Feb 2002
12
Entrepreneurship
Entrepreneurship is a behavior that includes:
initiative taking the organizing and harnessing of social and economic factors for wealth creation the acceptance of risk or failure
Entrepreneurship
Why is entrepreneurship important? Entrepreneurship contributes to job creation and growth Entrepreneurship is crucial to competitiveness Entrepreneurship to unlock personal potential Entrepreneurship and societal interests
Entrepreneurship
What does it take to produce more entrepreneurs? Entry barriers Risk and reward Fostering capacity and skills Making entrepreneurship accessible to all members of society
15
Entrepreneurship
How can enterprises be geared to growth?
The regulatory environment Taxation Access to skilled labour Access to finance
Helping firms to exploit knowledge and international opportunities

Intrapreneurship and corporate venturing
Entrepreneurship
Three pillars for action towards an entrepreneurial society Bringing down barriers to business development and growth Balancing the risks and rewards of entrepreneurship A society that values entrepreneurship
Singapore ?????
Why should we learn entrepreneurship?

To find solutions to problems or needs To stimulate new business and the economy new jobs and opportunities
To move to an information society where strategic resources are information, knowledge and creativity
To adjust to an increasingly global, competitive economy To accept and response to
To improve performance
changes
To help the number of To help shift workers from To find new ways to solve social problems To inspire and enhance opportunities for women, youth and elderly.
failed business
a manufacturing/industrial
base to a service oriented industry
Entrepreneurship
NOT EVERYONE IS AN ENTREPRENUER..

Leadership and Entrepreneurship
Presentation

Setting
Broad scanning Intellectual flexibility
Direction
Political astuteness
Personal Qualities
Seizing the future
Self belief
Self awareness
Drive for results
Leading change through people
Self management Drive for improvement Personal integrity
Collaborative working
Holding to account Effective and strategic
Empowering
others
Delivering the Service
influencing
21
22

Entrepreneurial leaders can fall under these three leadership styles
I. Visionary Evangelist
II. Team and Consensus Builder III.Manager of Execution
23

Persuades employees to work toward his/her vision of the future. Creates, sells, and drives the strategy of the organization. Serves as the spokesperson for the organization and demonstrates confidence in its potential for success. Takes charge, pushes for action and instills a sense of urgency to achieve the organizations goals.

Very bright get to core issues quickly
Creative and visionary yet realistic and savvy Inspirational motivators Open to new ideas will seek others advice before making a decision Learn from mistakes & failures Willing to take risks but also like to have a plan Make firm, clear cut decisions High level of drive & desire to achieve excellence Confident but understand their limits Enthusiastic & passionate love their work & their product Can sell ideas, influence & negotiate Make good first impression Enjoy positions of influence
Example
Steve Job of Apple
Dennis Wee of DWR

Lee Kuan Yew

II. Team and Consensus Builder
Develops teamwork, commitment, alignment and employee motivation by involving, empowering and creating a positive work environment. Develops loyalty by investing in building relationships with others and by showing interest in employees needs, growth and career development. Is open to their ideas and willing to share power.

II. Team and Consensus Builder
Develop loyalty by showing interest, talking to people & investing in relationships Sociable, friendly, warm, supportive & approachable Read people & situations accurately diplomatic, tactful & astute Persuasive know how to influence and win others over to their side Put group interest ahead of self-interest Liberal with praise & encouragement Balance emphasis on people & results Trusted & credible strong values, high integrity, conscientious Open & forthright no hidden agendas
Example
Anita Roddick of Body Shop Oliver Lum of Hyflux Manmohan Singh & Hu Jintao
Teambuilder emphasize cooperation & alignment

Empowering style
27

III. Manager of Execution
Provides organization, focus and clarity of direction to employees. Good administrator. Structured, disciplined, and skilled at setting short term targets and goals. Good at setting priorities and meeting commitments. Sets up systems and processes. Worries about the details. Monitors results versus plans and provides the rigor and control necessary to stay on course and correct for deviations from the plan. Gets results.

III. Manager of Execution
Model hard work but not workaholic
Succeed through steadiness and determination

Disciplined & focusedclear goals & priorities Keep it simple Avoid perfectionism
Example
Donald Trump Sim Wong Hu of Creative Mahathir Mohamed
Keep others informed

Prefer to set a course and stick with it but willing to be flexible Feel bound to meet commitments
29
I. Visionary Evangelist II. Team and Consensus Builder III. Manager of Execution
Which are You?

Project Nutritient
Case Study #2
Interaction: I the Business

To raise US$250,000 in exchange for 55% equity or as loan with repayment of X% p.a.
Scenario:
Nutirient, a soy based product is developed mainly for post operation patient where solid food intake is restricted. It is well certified and an established channel of distribution.
One of founder investor (with 25% holding) discovered that his younger brother (another founder investor with 25% holding) has been manipulating the supply chain and pocketing extra money into his personal account. The elder brother after several failed attempts to persuade his brother to come clean, decided to sue the brother and unfortunately publicize the company predicament.
With the falling sales following the publicity, the younger brother in desperation decided to collaborate with several other minority shareholders to raise the money to keep the business going.
32
The Product
1. The product is soya bean based compound, brand name Nutritient. It is a complete and balanced nutritional drink with the necessary minerals and vitamins, packaged in our standard 400 grams size container or 20gram sachet. The product has been certified in China by the health authority and recommended by the China Nutrition Society. There is no direct competition to this product in the local market. The only competition is the oversea equivalent called Ensure, manufactured by Wyeth. In Singapore, the product has been approved by the Agri-Food & Veterinary Authority of Singapore (AVA)
2. 3.
33
Funding Requirements
1. The fund requirement is US$250,000 which will be used for working capital and expansion of the current business only. - Establish new factory to increase production. - Improved product packaging for export market. 2. The fund can be for equity of the business (for 55% stake holding) or a loan to the company at an agreed loan rate and repayment period.
34
Doing Business in India and China
Discussion
China
37
China
Anshan Zibo
Guangzhou
38
1980s
Anshan, Liaoning Province As an Employee
39
40
Steel Foundry Project in Anshan
Background Steel Foundry development project 3.5m investment with Anshan Iron and Steel Corporation Participants include Chinese Gov, ECGB and Midland Bank International 18 months project
Lesson Learned Failure to understand the cultural differences Contractual failure Need for good people
41
1990s
Guangzhou, Guangdong As an Investor..
42
Guangdong
43
Guangdong Business Environment

Total Number of Industrial Enterprises (unit) 24494
Grouped by Ownership State-owned with State-holding Industry Fully State-owned Industry Collective-owned Industry Cooperative Enterprises Share Holding Enterprises Foreign Funded Industry Enterprises Funded by Entrepreneurs from Hong Kong, Macao and Taiwan 2103 1344 2513 305 5549 2070 9% 5% 10% 1% 23% 8%
8549
35%
44
Hardware Distributor in Guangdong

Background Dubai owned company Establish 100% foreign owned wholesale/retail business Registered in Guangzhou Chinese managed Budgeted US$1m investment Lesson Learned Legal Representative Registration of business Paid up capital Free trade fine details Changing policies
45
2000s
Zibo, Shantung
As a Consultant.
46
Hotel Development for India

Background
Indian hotelier building 8 hotels in India Complete turnkey by Chinese Visit to China in 2005 Contract signed on 2006 Work starts in 2007
Lesson Learned
Language Issues Attitude International exposure Contractual difference
The Rules for the Chinese Market
Think Chinese
Learn Chinese
Be Chinese
48
Changing Profile of the Chinese Business person

1980s / 1990s 2000s Beyond Communist turns Capitalist The Little Emperors The Professional Socialist
49
India
50
Malaysian Chinese Vegetarian Business in India

Background Manufacture vegetarian ready-to-eat food product Collaboration with Indian Start import then factory Target Indian vegetarian market Lesson Learned Understanding of Indian culture Legislature requirements Lack of cold chain structure
51
Chinese Government-owned Electronic Firm to India

Background Distribution of Chinese brand of consumer electronics Indian partnership Plan for Retail / Wholesale / Assembly Started in Delhi Lesson Learned China brand Import duties Need for latest product Indian supply chain
52
Automotive Component Distributor in India

Background Chinese motorcycle manufacturer partnership with Indian suppliers Manufacture motor cycle repair kit Under license for major brand Lesson Learned Language issues Lack of leadership Indian trust and Chinese reputation Indian engineering skill & Chinese design capability
53
The Rules for the Indian Market
Respect
Patience
Tolerance
54
China & India
in comparison.
55
China and India - Business Commonality

Large Population
Young people Growing middle
Economic growth
Low cost labour High educational level
class Spending power High consumption Affluent
and technically able Vast natural resources Large returning national
56
China and India - Business Differences

China
State owned enterprises Bureaucrat Leadership Singular entity Single child mindset Do and think approach Politically bias Rapid growing infrastructure
India
Family managed business Patriarch leadership Multi facet entities Extended family mindset Think Think Think and do approach Religious bias Weak infrastructure
57
China and India
India & China Sell to the mass market
Whats sells Infrastructure Lifestyle and Brand (Food / Consumer Electronic / Automotive) Education
Other Lessons Learnt

Human Resources Beyond paper qualification The Chinatown Tailor Social Issues Female distraction The Cow and the Milk Business Practices Kickback and corruption The Scholarship
59
Talking to the Chinese
Contractual
Relationship
Ice Breaking Topic Child Study Money
Compromise -in your favor -- in their favor
People, People, People
Repatriation of Fund Miscellaneous Expenses Who to pay? How to pay? How much?
Minority vs Majority
60
Financial Crisis China & India

Its happening in Guangzhou Min Wage / Insurance for worker Arrogance and GDP / HK Factory Closure
Beijing China Builders Fair Indian and African vs the European and the American
Its happening in Mumbai Corruption Lack of confidence in market Job lost Banks are conservative and no mini-bonds
Being Successful in Business Development
ADAPT! ADAPT! ADAPT!

Local Knowledge important important to have a representative Need for good people Less focus on initial entry and more on a longer term view
62
New Market Development for Small Business
Developing oversea business is not cheap Finding the right network to start off Cultivating the network
Need for people to sustain the new market

Making money out of the new market Taking money out of the new market What next?
63
Background Reading
Innovation & Entrepreneurship Entrepreneurship Strategies & Resources Entrepreneurs Helpline Harvard Business Review on entrepreneurship Singapores Homegrown Entrepreneurs tell you how to do it
by Peter Drucker by Marc Dollinger by Alexandrino Ferreria by Harvard Business School by Russell R Miller
64
Questions & Answers
My email address: chrisben@singnet.com.sg

eMBA Apr13 Session 2

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Entrepreneurship Course

April 2013 Session 2

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

Site Visit at Dignity Kitchen

11th April 6.00 pm to 8.30 pm

Getting Started in Business

Christopher Benjamin Consultancy Services

Focus on needs not want, business last longer

Identify the Needs

Build the KNOWLEDGE and Learn the SKILL

Generating the idea

Need an entity tangible or intangible

Research, Evaluate and Communicate

Christopher Benjamin Consultancy Services

..hopes to develop these competencies some but not all.

Christopher Benjamin Consultancy Services

Christopher Benjamin Consultancy Services

Christopher Benjamin Consultancy Services

Christopher Benjamin Consultancy Services

Christopher Benjamin Consultancy Services

Christopher Benjamin Consultancy Services

Christopher Benjamin Consultancy Services

Helping firms to exploit knowledge and international opportunities

Why should we learn entrepreneurship?

To adjust to an increasingly global, competitive economy To accept and response to

NOT EVERYONE IS AN ENTREPRENUER..

Leadership and Entrepreneurship

Leadership and Entrepreneurship

Drive for results

Leading change through people

Self management Drive for improvement Personal integrity

Holding to account Effective and strategic

Delivering the Service

Christopher Benjamin Consultancy Services

Leadership and Entrepreneurship

Christopher Benjamin Consultancy Services

Leadership and Entrepreneurship

Christopher Benjamin Consultancy Services

Leadership and Entrepreneurship

Leadership and Entrepreneurship

Dennis Wee of DWR

Leadership and Entrepreneurship

Leadership and Entrepreneurship

Teambuilder emphasize cooperation & alignment

Christopher Benjamin Consultancy Services

Leadership and Entrepreneurship

Leadership and Entrepreneurship

Succeed through steadiness and determination

Keep others informed

Christopher Benjamin Consultancy Services

Leadership and Entrepreneurship

Which are You?

Interaction: I the Business

Christopher Benjamin Consultancy Services

Christopher Benjamin Consultancy Services

Christopher Benjamin Consultancy Services

Doing Business in India and China

Christopher Benjamin Consultancy Services

Christopher Benjamin Consultancy Services

Anshan, Liaoning Province As an Employee

Christopher Benjamin Consultancy Services

Christopher Benjamin Consultancy Services