1. ​ UNIVERSITY OF SOUTH-EAST ASIA

2. CHAPTER 1 Foundations Of Entrepreneurship Lecturer: Lim Delux 2

3. Learning Objective After you learned this chapter, you will be able to: -Define the role of the entrepreneur in business- in the United States and across the world -Describe the entrepreneurial profile and evaluate your potential as an entrepreneur -Describe the benefits and drawbacks of entrepreneurship 3

4. Learning Objective After you learned this chapter, you will be able to: -Explain the forces that are driving the growth of entrepreneurship -Explain the cultural diversity of entrepreneurship -Describe the important role small businesses play un our nation’s economy -Describe the 10 deadly mistakes of entrepreneurship and explain how to avoid them 4

5. Learning Objective After you learned this chapter, you will be able to: -Put failure into proper perspective -Explain how entrepreneurs can avoid becoming another failure statistic 5

6. Chapter Outline  The world of the entrepreneur  What is an entrepreneur?  The benefits of entrepreneur  The potential drawbacks of entrepreneurship  Behind the boom: what’s feeding the entrepreneurial fire?  Cultural diversity of entrepreneurship 6

7. Chapter Outline  The power of small business  The 10 deadly mistakes of entrepreneurship  Putting failure into perspective  How to avoid the pitfalls 7

8.  The world of the entrepreneur Growing numbers of the people are realizing their dreams of owning and operating their own businesses. The entrepreneurial spirit is the most significant economy’s development 8

9.  The world of the entrepreneur Downsizing has all but destroyed the long standing notion of job security in large cooperation Next, most of people view small beautiful. When you launch a company it means “ Life without a safety net-thrilling and dangerous” 9

10.  What is an entrepreneur? An entrepreneur is one who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them. 10

11.  What is an entrepreneur? -Desire for responsibility: prefer to be in control of their resources and use those resources to achieve self-determined goals -Preference for moderate risk: not like gambler: Entrepreneur sees the situation from different perspective and believe their goals realistic and attainable. 11

12.  What is an entrepreneur? -Confidence in their ability to succeed: They tend to be optimistic for success -Desire for immediate feedback: Doing business is challenging so they look for feedback -High level of energy: More energetic than average person -Future orientation: They are looking forwards to the future opportunities 12

13.  What is an entrepreneur? -Skill at organizing: They know how to put the right person at the right place for accomplishing the goals -Value of achievement over money: Misconception “ Entrepreneurs are driven by the desire to make money” Truly the achievement is primary force. So money is the symbol of achievement 13

14.  The benefits of entrepreneurship  Opportunity to create your own destiny: owing a business provides entrepreneurs the independence and the opportunity to achieve what is important to them 14

15.  The benefits of entrepreneurship  Opportunity to make difference: Because they see an opportunity to make difference in a cause that is important to them. Opportunity reach your full potential: sense of empowerment 15

16.  The benefits of entrepreneurship  Opportunity to reap impressive profits: most of entrepreneurs become super- rich and do become quite wealthy Opportunity to contribute to society and be recognized for your effort:  Opportunity to do what you enjoy and have fun at it (Interest in them) 16

17.  The potential drawbacks of entrepreneurship  Uncertainty of income:  Risk of losing your entire investment Long hours and hard work  Lower quality of life High level of stress  Complete responsibility  Discouragement 17

18.  Behind the boom: what’s feeding the entrepreneurial fire?  Entrepreneurs as heroes  Entrepreneurial Education Demographical and Economic factors  Shift to a service Economy 18

19.  Behind the boom: what’s feeding the entrepreneurial fire? Technological advancement  Independent lifestyle  E-commerce and the www 19

20.  The cultural diversity of entrepreneurship  Young Entrepreneurs  Women Entrepreneurs Minority Enterprises 20

21.  The cultural diversity of entrepreneurship  Immigrant Entrepreneurs Part-Time Entrepreneurs  Home-Based Business 21

22.  The power of small business Small business not only offers job to people but the most important things are that employees’ training and development. Moreover it is the incubator for new ideas, products, services 22

23.  The 10 deadly mistakes of entrepreneurship  Management mistakes: poor management -Poor planning, organizing, leading, controlling 23

24.  The 10 deadly mistakes of entrepreneurship  Lack of Experience Small business managers need to have experience in the field they want to enter. Film Stair shop in Cambodia is the good example 24

25.  The 10 deadly mistakes of entrepreneurship Poor Financial Control Business success requires having a sufficient amount of capital on hand at the start up. When the company is under the capitalization this causes the company failure because it can generate the negative cash flow 25

26.  The 10 deadly mistakes of entrepreneurship  Weak Marketing efforts: Business needs much of effort in marketing meant that building a powerful marketing plan. 26

27.  The 10 deadly mistakes of entrepreneurship Failure to develop a strategic plan If business do not develop a strategic plan, there is no clear strategy serving to maintain competitive edge in the market place 27

28.  The 10 deadly mistakes of entrepreneurship  Uncontrolled Growth: Growth means a natural, healthy and desirable part of any business enterprise. It must be planned and controlled. When there is an expansion of business, what happen? 28

29.  The 10 deadly mistakes of entrepreneurship  Poor Location If location business is chosen without proper study, investigation, and planning, the result will be … 29

30.  The 10 deadly mistakes of entrepreneurship  Improper Inventory Control Managerial responsibilities play an important role. Shortage stock, over stock 30

31.  The 10 deadly mistakes of entrepreneurship  Incorrect pricing Must understand how much it costs: -High Price -Low Price 31

32.  The 10 deadly mistakes of entrepreneurship  Inability to make the entrepreneurship transition After start-up the business growth will different styles of management. Making over the entrepreneurial hump is no guarantee of business success 32

33.  Putting failure into perspective Entrepreneurs use their failures as a rallying points and as a mean of refocusing their business ventures for success -Failure is a part of creative process -Entrepreneurs require both persistence and resilience: back from failure 33

34.  How to avoid the pitfalls  Know your business in depth: Right types of experience in the business you plan to start. Get the best education in business area 34

35.  How to avoid the pitfalls  Develop a solid business plan Well-written business plan is a crucial ingredient in preparing for business success. 35

36.  How to avoid the pitfalls Manage financial Resource -Have an adequate of capital for start-up “ Estimate how much capital you need to get the business going and then double that figure” - Have enough cash to pay the bills and obligations 36

37.  How to avoid the pitfalls  Understand financial statements -Income statement -Changes in owner’s equity -Balance sheet -Cash flow 37

38.  How to avoid the pitfalls Learn to manage people effectively -Well training -Well motivated employees -Attracting talented and skillful employees -Keeping the best employees 38

39.  How to avoid the pitfalls  Keep in tune with yourself Starting business is like running a marathon. Entrepreneurs need to be physically and mentally strength 39