SMALL AND MEDIUM ENTERPRISE MANAGEMENT APT 3063 PREPARED BY :

Distinguish between an entrepreneur and a small business owner Characteristics of entrepreneurial opportunities Motivators or rewards of entrepreneurial careers 5 potential competitive advantages of small entrepreneurial companies as compared to large firms Factors related to readiness for entrepreneurship and getting started in an entrepreneurial career This Chapter Will Help You:

These groupings are decided based on EITHER I. Number of Employees Based on the number of full-time employees II. Annual Sales Turnover Based on annual sales turnover MicroSmallMedium

Primary Agriculture Manufacturing (including Agro-Based) & MRS* Services Sector (including ICT**) MICRO Less than 5 employees SMALL Between 5 & 19 employees Between 5 & 50 employees Between 5 & 19 employees MEDIUM Between 20 & 50 employees Between 51 & 150 employees Between 20 & 50 employees I.Number of Employees Based on the number of full-time employees : *MRS : Manufacturing-Related Services ** ICT : Information and Communications Technology

Primary Agriculture Manufacturing (including Agro- Based) & MRS* Services Sector (including ICT**) MICRO Less than RM200,000 Less than RM250,000 Less than RM200,000 SMALL Between RM200,000 & less than RM1 million Between RM250,000 & less than RM10 million Between RM200,000 & less than RM1 million MEDIUM Between RM1 million & RM5 million Between RM10 million & RM25 million Between RM1 million & RM5 million : II. Annual Sales Turnover Based on annual sales turnover

WHAT IS A SMALL BUSINESS?

WHAT IS A SMALL BUSINESS?

WHO ARE ENTREPRENEURS?

DIFFERENCES BETWEEN BUSINESSMAN & ENTREPRENEUR??

DIFFERENCES BETWEEN BUSINESSMAN & ENTREPRENEUR BUSINESSMAN Own an enterprise or venture Usually a profit oriented Usually plays safe May be purchased, donated or inherited Generally traditional Works for the Company Generally hire people to contribute profit ENTREPRENEUR Own an enterprise or venture Customer oriented Bold and ambitious Creates his own idea and realize it as a business An innovator The Company works for him Hire people to make their lives better

Entrepreneur and founder of Famous Amos Chocolate Chip Cookies. Born on July 1, 1936, in Tallahassee, Florida. An Air Force veteran who worked as a talent agent with the William Morris Agency. “The "Famous Amos" cookie tale began when Wally Amos began using his bite-sized cookies as calling cards and thank-you gifts. As Wally made his rounds in his entertainment business, more and more of his friends and clients asked for another bag of Wally Amos Cookies. Finally, with the backing of several Hollywood personalities, Wally launched The Famous Amos Cookies Company in 1975.”

Characteristics of Entrepreneurial Opportunities Exist for those who can produce enough product/service desired by customers. An economically attractive and timely opportunity that creates value for interested buyers/ end users. Exist for those who have interest, resources & capabilities required to succeed. ** Bootstrapping: you can control some resources without having to own them.

REWARDS OF ENTREPRENEURSHIP Financial gain proportionate to personal achievement Profit Enjoyment satisfying way of life Personal satisfaction Power to make own decisions Independence Contribution to the community Personal fulfillment Escape from an undesirable situation Freedom

VARIETIES OF ENTREPRENEURSHIP Founder entrepreneurs VS other business owner and franchisees High potential ventures (gazelle) Vs Attractive Small Firm and microbusinesses Artisan Vs Opportunistic entrepreneurs Women entrepreneurs Entrepreneurial teams

The Competitive Edge of Entrepreneurs Customer focus Quality performance Integrity and responsibility Innovation and globalization Special niche

Factors related to readiness for entrepreneurship Age and entrepreneurial opportunity Characteristics of successful entrepreneurs