Coursework 3093

This posting is to recap some of the things mentioned during the first week of lecture.

Coursework for BBDM3093 consists of the following:
CW1 Uploading of Executive Summary to Facebook (20 marks - group assessed)
CW2 Business Model Proposal (40 marks - group assessed)
CW3 Presentation of the proposed business model (40 marks - individually assessed)

Assume that you are writing this business model to a rich aunt of yours whom you hope to impress. You are contemplating the possibility that she may become your angel investor, since you have quite a pretty close relationship with her. Hopefully, she may come back to you for a more detailed business plan later. Your aunt is a simple woman and educated only up to secondary school level. She has accumulated her wealth through a combination of hard work, business acumen, and sound investment principles - a very down-to-earth, straight-talking woman - just say it as it is.Your business model proposal write-up to her should be written in simple, direct, and easy-to-understand style. You are not doing a piece of academic writing to be submitted to your professor. Do not indulge yourself in a fit of theoretical frenzy and write about all sorts of strategic theories which serve no purpose other than to drive your dear aunt to the madhouse.

You should discuss your business model proposal based on four areas:

• core strategy
• strategic resources
• partnership network
• customer interface

Most important element to be discussed under core strategy would be your basis for differentiation. How do you differentiate your business from your competitors? Differentiation is important - otherwise, why should consumers buy from you? They buy from you because you are different - you are able to provide them with something that your competitors don't. I'm a Dell customer because I want to pay only for components that I need. I'm a Maybank account holder because it provides convenience by having the largest network of ATMs. I study in TARUC because I have no choice!! (1. LOL, private joke with one group of students - please ignore! 2. Or is it because TARUC is so strongly differentiated that you don't really have to look at our competitors?). Differentiation can be in many forms - in terms of the design of the product, service given to customers, distribution channels, payment methods, etc. Use your creative thinking. Take a walk - go to a shopping mall, observe the many businesses there, ask yourself how you can do things differently and add-value for customers.

Under strategic resources, there should be a good discussion on core competencies. It refers to what you can do best that your rivals cannot match. It is your core competency that gives your business the competitive advantage to achieve more sales. Your core competency may be a tangible or an intangible asset. Ensure that this core competency is possessed only by you and not your competitors, at least in the short run. Of course, your core competency could be eroded in the long run. Therefore, it is in the interest of a business to create new core competencies from time to time in order to defend or grow its market share.

Partnership network considers the relationship between your business and suppliers, as well as other business partners. Emphasis here should be on how you intend to build relationship between your suppliers and you. Sound relationships with suppliers will ensure that you get your raw materials or other merchandise at fair prices and punctual delivery schedules. You may also wish to establish networking with environmental groups, consumer associations, government agencies, educational institutions, etc. All these relationships are crucial to ensure that there are no negative effects on your revenue.

Similar to partnership network, the last section, customer interface considers the many ways that you connect with your customers. You may want to use a mix of various social media platforms to connect with customers. It is advisable also to consider the use of CSR initiatives to create a positive corporate image. Building relationships with customers is important because they are your best promotional tools. Satisfied and delighted customers will help promote your products to their friends. Word-of-mouth, I would say, is the most effective promotional tool. Why do I buy a Myvi car? Because my friend told me it's good - not because of any advertisement I watched.

Therefore, guys, put on your thinking cap - think creatively. Open your eyes, observe the many business models around you. Come up with your own unique model. Don't procrastinate. Start working on your assignment now. Any questions you have, you can put in the comments section below, and we can have a discussion here. Cheers, enjoy your weekend!!

BBDM3093 Entrepreneurship Exam Postmortem - What Happened?

Another exam session finished and done with - now waiting for the Board of Examiners to confirm the set of results. For BBDM3093 Entrepreneurship, this is only the second time that we had the examination. The first time was last semester, the exam being taken by RCA, RIN, and RHR. This round, students from four programmes took the exam - RPA, RLM, REC, and RMK. The outcome is highly satisfactory, in terms of the passing rate (inclusive of coursework), but let us wait for the confirmation by the Board of Examiners before announcing it. As of now, let me just give you a feedback of what you had done for the exam.

Question 1(a) asked on the myths of entrepreneurship. I would say that you have done well, but not excellently. You have demonstrated an understanding of the subject matter as well as the ability to relate to the case study. Your answers are almost too mechanistic to me - explain and relate. Shows that you have studied your notes, listened to your tutors, and read my blogs (ha!!). But, nothing beyond that - you have not read widely, you have not shared your thoughts, you have not been "original". Okay, to be fair to you, you were too bogged down with coursework and you were simply just struggling to stay alive!!! I did come across one script where the candidate wrote one full page for each myth - there's one answer book for the five myths asked. The discussion was so thorough, that I simply had to give full marks. And this candidate managed to provide equally thorough answers for all the questions. One of a kind!!!

Question 1(b) touched on the success factors as experienced by Tan Sri Lim. Some candidates wrote on general success factors which were not related to the case. These candidates got very low marks. The instruction verb used in the question was "evaluate". Just explaining what a particular success factor is, is not sufficient. You should "evaluate" - can an entrepreneur do without this factor; is it really crucial to the success of an entrepreneur? For example, take integrity as a success factor. Besides explaining just briefly what integrity may be, you should also give your view as to what may happen to an organization if the integrity factor is not present. How would it affect relationships with stakeholders? Answers given by many candidates were generally scanty and lack depth. It is important to pay heed to the instruction verb. Otherwise, your answer lacks the adequacy to be awarded an excellent grade.

Question 2(a) required candidates to determine the source of the innovative idea and the type of innovation. There is no right or wrong answer, just that your explanation has to be well-justified. Most candidates picked process needs and perceptual change as the sources. As for type of innovation, many were on the side of invention and synthesis. Whatever, the important thing is to give sound reasons as to why you said it is this or that. Some candidates gave a whole list of possibilities - there is no necessity to do this; the instruction verb is not "discuss". It becomes a discussion if you are exploring so many angles.

Question 2(b) only needed you to outline some ways to create a climate of creativity in an organization. Because the instruction verb is "outline", you are just required to describe some proposals. It is not necessary to give a lengthy explanation. Most candidates were able to get high marks for this question. Still, there were some candidates who gave the stages of creative thinking as the answer!! I wonder what it is in the question that influence them to think that this is what was asked!!! Something not right upstairs!!!

Question 3 asked you to propose a marketing plan in order to increase the number of foreign students. Many who chose to answer this question got below average marks. Some proposals were to increase the student enrollment, which was not what the question wanted. You should propose the marketing goals (must be SMART), the type of segmentation to apply, the target market to focus on, and the marketing mix strategy. Common weaknesses - goals were ambiguous, explaining all types of segmentation, no specific target market, not knowing your products, letting foreign students enjoy government-subsidized fees, and lack of elaboration on promotional strategies. There is a suspicion that candidates running out of time during the exam chose to answer this question because there are no parts, unlike the other questions. Surprisingly, the RPA students, with no foundation in marketing, did quite well in this question and got good marks.

Question 4(a) and (b) asked on the Ansoff Matrix of Growth Strategies. I would say that most candidates answered well in this question. Many were able to propose the appropriate growth strategy for the burger company and followed by an adequate discussion. The other growth strategies were also well-rationalized. Overall marks for the answers to this question were on the high side.

Question 5 - what can I say about this question? LOL!!! Many candidates secured maximum marks for this quantitative question. Those who didn't get high marks for this question - what can I say about you? LOL!!!

 

Business Model Assignment Part 3 and 4

These are the final two parts of your Business Model Assignment - Partnership Network and Customer Interface.

Partnership Network consists of two sections:

• Suppliers
• Other key relationships

Your suppliers are the ones whom you depend on for the materials needed to manufacture your product. Without them, it will be quite impossible for you to be in business. Take our national car maker as an example - it depends on many suppliers for its supply of car components, paint, cushion seats, etc. Imagine what would happen if these suppliers were to sever their relationship with you. You get nothing, manufacture nothing and sell nothing. It is therefore, extremely vital, to maintain good relationship with your suppliers. Good relationship means creating a win-win situation for yourself as well as for your suppliers. For your assignment, identify who your key suppliers are, and explain how you maintain good relationships (for example, paying them promptly).

Other key relationships would refer to your relationships with many other parties which impact upon your business. Depending on the type of business you are running, key relationships may need to be established with: government agencies, environmental groups, consumer associations, trade unions, logistics firms, etc. These key relationships may help to facilitate the development of your business. For example, having good relationship with government agencies may land your business some sales contracts with the government. For your assignment, identify any other key relationships, and explain why you view these relationships so seriously.

Customer Interface consists of three sections:

• Target market
• Fulfillment/Support
• Pricing structure

Target market refers to the market segment in which you would concentrate most of your sales efforts. It is quite impossible to cater to the needs of the whole market. People have different needs and due to the constraints upon your own resources, you cannot possibly be satisfying everyone. Therefore, it is important for you to wisely choose a segment of the market which you can zoom into. You can then use your limited resources to try to satisfy the needs of this particular segment. Perodua for example, targets fresh graduates starting out their career who want to own an affordable car. BMW targets the up-and-coming executives, and Mercedes will be looking at those who have high purchasing power. So, who are you targeting and what is the rationale of your choice?

Fulfillment/Support refers to the ways in which you hope to make your customers feel happy with you. Happy customers are satisfied customers, and satisfied customers tend to repeat their purchases from you. Therefore, think of ways to make your customers' purchase experience a memorable one for them. Not only will satisfied customers become your long-term customers but they also function as your promotional tool. They will promote your product to their whole village and very soon the whole village will buy from you!! Word-of-mouth is a more powerful tool than all the advertisements you put on television!!

Pricing structure refers to the pricing strategy that you want to implement which will help you realise your mission statement or marketing goal. Some examples of pricing strategies are such as market penetration strategy, market skimming, differentiated pricing, cost-plus pricing, package pricing, psychological pricing, etc. Identify the pricing strategy that you want to implement and make sure that your pricing strategy is consistent with your mission statement. You cannot possibly be talking about making your product affordable to the community in your mission statement, but then you embark on a market skimming strategy!!

Okay, so that's it - all the four parts of the business model - core strategy, strategic resources, partnership network, and customer interface. Time is fast running out, deadline is not too far away. Start your assignment asap, otherwise you will have sleepless nights!!

Coursework 3: Business Model Assignment Part 2

Okay, this post deals with the second aspect of your Business Model Assignment - Strategic Resources. It contains two sections, each being allocated 5 marks. First section touches on core competencies. Second section is on strategic assets.

Core competencies refer to those capabilities of your business which give you the competitive advantage over your competitors. Over time, companies may develop key areas of expertise which are distinctive to that company. These areas of expertise may be in any area. Here are some examples of core competencies:

a) Maybank - having the largest network of ATMs in the country which provides convenience and efficiency to its customers.

b) Tesco.com - ability to design a customer interface which allows for personalized online shopping, thereby enriching the online shopping experience.

c) Dell - made-to-order computers where its customers can determine what components are to be assembled and therefore customers only pay for what they want.

d) Apple - innovative designs and technology. Apple introduces products that really wow the market.

e) Starbucks - unwavering focus on quality, outstanding customer service, continuous product improvement, care for its employees, and the desire to be everywhere.

Having a core competency at one stage of your business does not mean that it is set in stone and you can always enjoy its benefits. Your core competency may be eroded by your competitors over time. Therefore, as the business environments change, you also need to adapt, modify, or reinvent your core competencies in order to sustain your business.

So, what do you need to do for your assignment? Examine closely your business venture. Determine what it is that your business can do better than your competitors. You can have one or more core competencies. Remember - core competencies can occur anywhere in your business. It may be that your business has a fantastic sales team - that is your core competency. It may be that you are able to source your raw materials at very low cost - that is also your core competency. It may be that you have exclusive rights - again a core competency. If yours is a restaurant business and you have a chef who can conjure up dishes that are out of this world - it is your core competency!!!!! Identify your core competencies and give a clear explanation of each of your core competency. Why do you think it is a core competency? How long do you think this core competency will last? What steps do you intend to take to ensure that your core competency can be sustained as long as possible? In what way can you reinvent your core competency?

Okay, now let us look at strategic assets. These are assets without which will put the future of the business in jeopardy. Put in simple terms, these assets are very crucial to the long term survival of the business. If these assets are taken away, then there will be a big question mark on the ability of the business to continue. Examples of strategic assets would be:

a) a loyal, dedicated and experienced workforce which brings about high productivity

b) managerial competency resulting in wise decisions and strong leadership

c) data, information, knowledge, and technology which give you the extra edge in producing better quality products and shorter response time in reacting to changes in the environments

d) supplier chain allowing you to source your raw materials or goods at lower cost

e) varied and powerful network of contacts enabling you establish useful connections beneficial to the development of your business

Okay, so what do you need to do? Try identify the strategic assets that you already have or for a new startup, you may identify and develop some assets to become future strategic assets. You may want to develop and train your workforce, you may want to set up a knowledge management strategy (ask your friends who are taking Knowledge and Innovation Management under Dr Teh or you may do some research on this).

Alright, so this the end of Part 2. Try to at least finish doing this part before CNY. If you keep to this schedule, you won't be getting any nightmares when the submission deadline nears.

Coursework 3: Business Model Assignment Part 1

Had been very busy lately finishing up on all the marking and a host of other stuff. Why is it that everything has to come together at the same time? Now I have to advise my students on completing their Business Model Assignment. My advise to them: "Do a little bit every day. Don't wait until the week of submission and then try to cramp everything in one week. You will go haywire if you do that." There are four parts to the business model as required in the coursework brief: core strategy, strategic resources, partnership network, and customer interface. Now, we are in Week 4. Try to cover one part in one week, and you will be able to complete your assignment by Week 7. Of course, you would have to compromise on your CNY celebrations. Never mind, you still have many more CNYs to come. :)) In this post, I will touch on the first part - i.e. core strategy.

Let me start with business model. A business model is just a simplified description of how a business makes money. Usually, it is the precursor to the business plan. The objective of having a business plan is to "sell" your project to external financiers or internally to top management. If you have a well-thought out business model, then it forms the basis for writing a good business plan. A business plan may consist of the management team, the business model, the implementation plan, the financial plan, an analysis of the external environments, and maybe also a part on risk analysis. So you see, the business model is actually just a part of the business plan.

Okay, now let's look at core strategy. What exactly do we mean by "core"? It simply refers to our most valuable customers - who we are selling to. It also refers to our most important product - what we are selling. Also refers to our most important channels - how we are selling. Strategy? It's just the art and science of today's business environment i.e. how we differentiate ourselves from others. It refers to us finding our very own space in an over-crowded market. In the marking scheme, marks for this part is allocated for three areas of discussion: the mission statement (3 marks), product and/or market scope (4 marks) and basis for differentiation (4 marks). Let us move to the first of these: the mission statement.

The mission statement simply defines what we sell and who we sell to. Having a mission statement provides us and our employees the framework and purpose of the existence of our business. The mission statement can be stated in one sentence or several sentences. Get your group's members to sit down together and brainstorm on a mission statement for your group's business venture. If you put your brains together, you will be able to come up with a reasonably good mission statement. Google for examples of mission statements. Learn from the mission statements of others and try formulate a good one for yourself. After your group has come up with the mission statement, then explain your mission statement. So, in this area, two things you need to do: State and explain your mission statement.

The next area of discussion is your product and/or market scope. Product scope refers to the number of products you carry for sale in your business. You may build a successful business based on a single product strategy or you may have different lines of product to cater to a larger variety of customers. Your product scope will determine your future marketing strategy, your profit goals, and market saturation. With a single product scope, you build your business around one primary product. You become a specialist and often can build a niche market for your product, especially if you can develop territories over which you have complete control. Management is simple and inventory is easily monitored. A multiple product scope can include selling two or three or hundreds of products. Market scope is similar to product scope. It defines the number of customers you sell to and who they are. Yeah, you are right - it's akin to market segmentation. You should have studied about market segmentation in your Fundamentals of Marketing course. If you have forgotten, well, just Google and find out. So, in this area, what you need to do is to describe your product/s and/or your customer segments.

What's next? Oh yeah, basis for differentiation. Meaning how you differentiate your product or service with those offered by your competitors. Differentiating your product makes you stand out from the crowd. It represents the X-factor that sways the customer's preference in your favor. In other words, successful product differentiation creates a competitive advantage for you because customers will tend to perceive that your product is unique or one of a kind. Product differentiation may be as simple as just changing the way that a product is packaged. It may also be as elaborate as introducing new functionalities to the product. So, in this area, what you need to do is to explain how your product/service is differentiated from those of your competitors.

So, do have a timeline for the completion of your assignment. If you plan your work and be discipline enough to work your plan, then you should be able to complete your assignments with the minimal of stress. 

Do you have it to conquer the world?

There is no one-size-fits-all when it comes to figuring out the characteristics of successful entrepreneurs. You may check yourself against the list of characteristics below and if you find yourself short on a few of them, don't worry, you are perfectly alright. Many of the characteristics can be learnt through practice and experience.

Commitment, determination, and perseverance. Success comes to those who are focused on what they are doing and what they want to achieve. You then commit yourself, your time, energy, and resources fully into realizing your dream. Being half-hearted and flimsy most probably will lead down the road to nowhere. You would also need determination, that is, the earnestness and strength - the willingness to walk the extra mile. You are all ready to run through a wall to get what you desire. It is that single-mindedness for success. And, of course, we need perseverance too - that never-say-die spirit of getting up again and again from every knockout blow. Commitment, determination, perseverance - this is a very potent concoction for success, not just in entrepreneurship, but also in life.

Drive to achieve. Keyword here is "drive" - the inexhaustible energy that an individual has in his pursuit of success. Of course, there is a limit to every person's physical capability but it is the mental strength that keeps him going and going. Very much similar to the first marathon runner, Pheidippides, who ran 280 km in two days to announce the victory of the Greeks over the Persians. After he announced "we have won!!", he collapsed and died. His last breath, "Joy to you". Well, you are not going to die after all your hard work. LOL!!! It's just that you need to have that willingness to work long and hard to get what you want.

Opportunity orientation. Meaning to say that successful entrepreneurs are always on the lookout for opportunities. The world is beset with problems - social, health, environmental, educational, etc. Opportunity oriented thinking and innovation are required to provide solutions to these problems, given that we have limited resources. Opportunity orientation may involve recognizing an opportunity when it arises, evaluating and then exploiting it. Looking at things from new angles, exploring new possibilities, and finding new ways of doing things can all help to open our eyes to opportunities for innovation.

Initiative and responsibility. Successful entrepreneurs are people with initiatives, that is to say that they are the first ones off the starting block. It also means that they lead from the front - they reap the glory of victories, and they also bear the responsibilities of failures. They are people who dare to be different, and they have no qualms whatsoever about going into the unknown. Unlike some people - wait and see la what happens first!!! Entrepreneurs - just do it!!! Ok, fail already, I'll take the stick but I will return!!!

Persistent problem solving. Problems? There will always be problems. Many of us are good in creating problems!! LOL!! Entrepreneurs focus on finding solutions to problems. They alleviate problems, not exacerbate them. For many people, a problem is seen to be an impediment to success. To the entrepreneur, a problem represents an opportunity to find a better solution. It's all in the mind. 

Seeking feedback. Getting feedback from customers enables the entrepreneur to know what his customers like or don't like, make customers feel that they are important and involved, and it helps him to consistently improve the value proposition to customers. Asking customers for their feedback allows the entrepreneur to get valuable insight about his business. This feedback helps the entrepreneur to decide on his next course of action.

Internal locus of control. Successful people, not just entrepreneurs, have internal locus of control. This means that they believe they themselves are in charge of their lives, they determine their own destiny. They are not easily influenced by external factors. They live or die by their own decisions. Past research suggests that entrepreneurs with internal locus of control tend to favor innovative strategies while those with external locus prefer low cost strategies.

Tolerance for ambiguity. Being an entrepreneur is similar to being in the pits. Let's just hope that you don't die there!! LOL!! Life for an entrepreneur is not always a love story with a happy ending. More often than not, it's a romance that ends in tragedy, just as in Shakespeare's Romeo and Juliet. :)) There is a lot of chaos, making contingent decisions, and plenty of moments in which fear and doubts tend to engulf you. In other words, life for the entrepreneur is full of uncertainty - it's a long and torturous journey. And to be tolerant of this ambiguous journey makes the difference between success and failure. The ability to paint a compelling vision and charge ahead - creating order out of chaos - is what sets an entrepreneur apart from other people.

Calculated risk taking. The difference between risk takers and calculated risk takers is the difference between failure and success. Risk takers bet their life on one gamble and if they lose, they will not live to fight another day. Risk takers simply leave too much to chance. Successful entrepreneurs, being calculated risk takers, reduce their risk on every step of the way. They take one small step at a time, and if they stumble and fall, they can still recover and fight another battle. They may lose a battle but not necessarily lose the war. 

Tolerance for failure. How does an entrepreneur look at failure? Failure, to an entrepreneur, is not period. Meaning it is not the end of life. On the other hand, it is perceived as an opportunity - a lesson well-learned. Life carries on. It is this tolerance for failure that makes the entrepreneur keep on persevering in his endeavors. Failure? The entrepreneur doesn't have this word in his dictionary. Only learning opportunity.

High energy level. Entrepreneurs are very energetic people. They work hard and they play hard. They put in long hours to get to the mountain top. Their high levels of energy are translated in enthusiasm and charisma. It is this enthusiasm and charisma that draw other people (customers, employees, suppliers) into the game plan of the entrepreneur.

Self-confidence and optimism. Successful entrepreneurs have a lot of confidence in their own abilities. Pretty cocky, you may say, but that is what gives them the courage to do what others dare not. And going into the unknown enables them to explore new opportunities and to open up new frontiers. They are also optimistic people - looking at the positive side of things. The glass is always half full, never half empty.

Creativity and Innovativeness. Entrepreneurs are creative people, always thinking up newer and better ways of doing things or solving problems. They are innovative - bringing with them changes that rock the market. Creativity and innovativeness represent the driving power of entrepreneurship. The entrepreneur who continuously creates new ideas and innovates will be able to meet the demands of contemporary markets, and in so doing, creates wealth not only for himself but also for the nation.

Vision - Successful entrepreneurs should look ahead to the future. They should develop a vision for future growth. This vision helps guide daily operations and strategic decision-making necessary to achieve success. Not only should an entrepreneur possess a vision, but this vision needs too to be articulated to those people around him - people whom he relies upon for support - his family, friends, employees. These are the ones who give him support through the ups and downs of business, and he must make them believe that his vision is achievable as well as the reason for achieving it.

Independence. It is said that independence is what drives entrepreneurship. Large organizations stifle the entrepreneurial individual because you always have to answer to someone else. Entrepreneurs have a very strong desire for independence and this is what motivates them to work long, hard hours to make their business a success.

Team building. Successful entrepreneurs are very much aware of the value of people. They are not lone rangers. The success of a venture does not just depend on the feasibility of the idea, but also the people. Building a team of good people around himself, the entrepreneur is already on the road to success. It is people, that represents the most important asset of an organization.

So, there you are - a list of characteristics of successful entrepreneurs. But it's also good to acknowledge that timing, luck, and simply being in the right place at the right time do play a part in many success stories. 

Do you have any ideas you wish to share? You can always share in the comment box below. 

Women from Venus, Men from Mars

This posting touches on the comparisons between male and female entrepreneurs. Being comparisons, there will be similarities and differences. Are they really that different? In my view, there are more similarities than differences.

Motivation - The factors that motivate male and female entrepreneurs seem to be more intrinsic than otherwise, if you like, such as the need for achievement, the need to be independent, and the need to be in control of their own destinies. These factors seem to be common among males and females. Nevertheless, studies have also shown that females are greatly motivated by the flexibility and work-family balance afforded by being in a business of their own. Running their own businesses also allows females to work at home, thus overcoming the problem of finding child-care. On the other hand, it is more likely for males to cite money as a primary motivational factor. Males have the tendency to prioritize the financial issue more highly than females.

Departure point - This refers to when they leave employment to jump into the cauldron of entrepreneurship. It could be due to work frustration, lack of promotional opportunities, or even enforced layoff due to a sluggish economy. It could also be due to the opening of a window of opportunity which makes it worth jumping out of employment into starting their own businesses. Females may also decide to jump into fire when there is a change in their personal circumstances. For instance, when their children have all grown up and with less parental commitment now, females may start their own businesses to realize their personal dreams. Remember the story of Julia Chong? Females tend to talk more about how and why their businesses got started, whereas males would prefer to harp on how big their businesses will grow.

Sources of funds - Popular sources of funds for both male and female entrepreneurs tend to be from personal savings and borrowings from family members or friends. Being the more aggressive gender, male entrepreneurs are more likely to seek out investors and request for bank financing. Females tend to have a lower risk profile, preferring to start business on a smaller scale and therefore requiring less funding. Females may also find it difficult to get financing from banks or venture capitalists due to discrimination.

Occupational background - Most entrepreneurs, male or female, tend to have some employment experience before they start their own businesses. This working experience is necessary to put them in good stead when they are on their own. There is a tendency for female entrepreneurs to have less formal or corporate experience than males. Male entrepreneurs are more likely to possess greater amounts of experience with personnel, technical and financial issues. This most probably explains why females usually go for home-based businesses while males go for ventures which are much bigger.

Personality characteristics - Both gender portray similar personality characteristics such as being innovative and creative, enthusiasm in their pursuit of success, energetic, goal-oriented, and industriousness. Nevertheless, there is a question mark on the level of confidence of female entrepreneurs. Female entrepreneurs are less likely to believe that they can undertake the key tasks of starting a new venture, such as obtaining bank financing and attracting customers. Male entrepreneurs show more perceptions about opportunities and their own capabilities. They also have a lower fear of failure.

Background - Male entrepreneurs tend to start earlier in life compared to females. Young male entrepreneurs are more likely to perceive opportunities but this drops after the age of 35. Young females have a lower perception of opportunities, but their perception grows and even exceeds that of males in the 45 or higher age group. Females in the younger age groups have a much higher fear of failure than males but this declines across older age groups. For males, the opposite is true - the older they get, the more chicken they become!!

Support groups - For both male and female entrepreneurs, they get a lot of support and encouragement from their spouse, children, and well-meaning friends. Female entrepreneurs, particularly, also get support from women's organizations. These organizations support female entrepreneurs by giving out micro loans or providing training and networking opportunities. Examples of women's organizations in Malaysia supporting female entrepreneurs include the Federation of Women Entrepreneurs Malaysia, National Association of Women Entrepreneurs of Malaysia, and Persatuan Usahawan Wanita Bumiputera.

Type of business started - Male and female entrepreneurs tend to go different directions when it comes to the type of business to start. Male entrepreneurs are likely to be found in the manufacturing and high-tech industries. On the other hand, female entrepreneurs are usually engaged in the retail and personal services sector. Female entrepreneurs tend to start businesses that are less growth oriented, but more oriented towards wage substitution.

From the above, it's quite obvious that male and female entrepreneurs do not speak the same language. I cannot make up my mind who is better, but currently it's still a man's world. Don't you think so? Well, you can leave your thoughts in the comment box below.

What, How and Whom

If you look at the title of this post, you are basically looking at what a business model is all about. Simply put it, a business model is a representation of how a business earns its money. It is a simplified picture of the real thing - that is to say without all the complexities of a real business - the organisational structure and culture, work methods, operation systems, intertwining human relationships, corporate strategies or production processes. Having a business model enables us to understand the essence of how a business works without having to deal with all the complexities.

A business model basically is just a story explaining how a business works. It provides answers to questions such as:

• What is it that we are offering to the market?
• Who are our customers?
• How do we distribute to them?
• In what ways do we communicate with our customers?
• What are the resources that we need?
• What are the key activities to be performed?
• Who are our business partners?
• How do we make money in this business?
• What is our cost structure like?

Business models became very popular in the late 90's during the internet boom. Many new ways of doing business became possible due to the low cost of sharing information among businesses and which reached all the way to customers. New distribution channels were created and more customers were reached. Value chains were broken up and reconfigured. This led to globalization, intense competition and new ways of doing business. There is now a larger variety of ways of how businesses make money in terms of what they sell, how they sell it, and whom they sell to.

Today, it is just not sufficient to be in a lucrative industry. There can be many different business models operating in the same industry. For startup entrepreneurs, you may want to create new business models in order to make your mark in the market. It is important to have a competitive business model to differentiate yourself from the crowd. Not only that, but if your business model is successful, most likely it will be copied by your competitors. Therefore, it is also important to regularly innovate your business model to give yourself that competitive edge.

Some business models used by companies which most likely you will know:

• AirAsia - bringing air travel to the masses
• Dell - using the web as a distribution channel
• Walmart - slashing costs in all its activities
• Gillette - establishing continuous relationship with its customers
• WorldVentures - combining fun with income earning capability :))

Entrepreneurial Decision Process - To Be or Not To Be

The entrepreneurial decision process is about deciding to become an entrepreneur by leaving your present lifestyle to form a new enterprise. It may mean quitting your current employment to become a full-time entrepreneur. Very easy to say, but this is certainly a gut-wrenching decision. Well-meaning friends may tell you "Anda Boleh" (You Can Do It!!) or "Buat Saje" (Just do it!!) but a decision of such scale needs to be analysed thoroughly. We call it a "process" because it involves several activities.

Analyse the industry that you wish to get into. Getting into an industry with high growth potential, such as the travel and education industries, will give you a better chance of success. People love to travel - look into the mirror, don't you love travelling?? As income goes up (we are going to become a high income nation come 2020, said Ajib Kor) more and more people will spend on travelling. Education is recession-proof. Come what may, people will still send their children to college. On the other hand, it wouldn't be wise to go into an industry that is already mature, saturated with competitors, and with declining growth rate. Try selling groceries - most likely you would fail or you would earn much less than what you could have earned elsewhere.

Analyse your work experience. Do you have the necessary and relevant experience to go into a particular industry? Chinese say, "Don't know, don't do". And you have to believe them - they are great entrepreneurs!!! LOL!!! If you wish to go into an industry which you do not have previous experience, go find a job in that industry first. Learn the ropes of the trade before starting your own business. When you are already in business, learning can be a very expensive affair. Very high tuition fees you would have to pay!!! So the trick is - "learn first before you go in, not go in first then learn". This will reduce your risk (remember? Entrepreneurs are not gamblers, they take calculated risk).

Analyse your buyers. Who do you intend to sell to? Are your customers corporate buyers or retail buyers? Corporate buyers means your customers are businesses like yourself. B2B, business to business, dig? Retail buyers means your customers are individuals like myself. B2C, business to consumer. Corporate buyers tend to be more rational in their purchase. If you can prove to them that your product can help them save money or earn more money, they will buy from you long term. Retail buyers like myself are more prone to being irrational. Product may be fantastic but I won't buy from you - why? I don't like your face (yeong shui!!!!). It's much harder to sell to retail buyers because so many things influence their purchase decision. For corporate buyers, only the bottom line counts.

There are other matters which you may want to analyse. Above is just a short list of three. For example, you may want to analyse your own financial commitments before you plunge into starting your own business. It takes time to generate income from your business but meanwhile you still have to pay for your car, apartment, and sending your kids to school. Some people never bother to do any analysis at all - What process???? And they too can be successful. Some people do a lot of analysis and ended up as non-starters. They never get to the point of launching their business!!! Nevertheless, sitting down and doing some analysis will reduce the odds of you failing. So, before you jump, take some time to go through this process. It may help you to make a safer decision - to go into a business of your own or not. To be or not to be. Good luck to you!! (You may put your thoughts in the comment box at the bottom of this post, tq.)

http://brandmakernews.com/business-brand/entrepreneur/4115/20-reasons-why-entrepreneurship-rocks.html

Entrepreneur Myths Part 2

Are you more enlightened after reading Part 1 of this topic? Really hope it helps. Let me know if there is any topic you would want me to blog on. Will try to meet your request. Advantage of blogging here over lecture is that I have time to think. Lecture, being a verbal delivery, I have very limited time to properly encode what I want to say. Due to this, misunderstandings or misinterpretations occur, and occur very often. So, all these blogging stuff is actually meant to provide a better and improved understanding. This is not an academic writing but written in a much more candid manner to facilitate understanding. Okay, what's next about myths?

All entrepreneurs need is money. Is money a guarantee for success? Obviously not, right? Money is an important resource. It can buy you raw materials. You can employ the most qualified workers. You can pump up your promotional activities. But without leadership, you won't be able to inspire your workers. Without the right strategy, your promotional activities will not be translated into sales dollars. And if you are not selling that much, what's the use of all those raw materials that your money can buy? You need more than just money. You need to have leadership to inspire and to motivate your workers towards achieving your company's vision as well as their personal dreams. You need to strategize on how you are going to form that emotional connection with your customers. How are you going to connect with them? Money can only get you the tools, but do you know how to optimize those tools so that you will get the desirable results? Therefore, to say that all you need is money, is indeed a myth.

All entrepreneurs need is luck. Lucky Eddie!!! Haha!!! Once in a while, luck plays a part in success. But nobody is lucky all the time - if you can be lucky all the time, no need become entrepreneur, be a Genting kaki instead. LOL!!! Success in entrepreneurship requires more than just luck. You also need to have the relevant management skills, the right people surrounding you, if you are a guy - maybe a woman behind you will do the trick. Nevertheless, off and on, all of us need that lucky break. But, luck alone is not enough. All you need is luck? Well, just another myth.

Ignorance is bliss for entrepreneurs. This is tantamount to pulling a cotton wool over your eyes. See no evil, hear no evil, speak no evil. Better for you not to know the challenges and the risks of being in business. Otherwise, you will be reporting to work tomorrow with a big smile on your face!! But, if we are in business, then we can't just turn our back to all the problems and complexities. We have to meet those challenges head-on. So what do we need? We need to do careful planning. We need to know the strengths and weaknesses of our business venture. We need knowledge and information. We cannot afford to be ignorant. If we are ignorant, then we become a part of the statistics for business failure. So, is ignorance bliss? No, it isn't - it's a pathway to failure.

Entrepreneurs seek success but experience high failure rates. Is the failure rate of entrepreneurs really that high? Here, we would have to rely upon empirical data. In a research done by Kirchoff who traced 814.000 businesses started in 1977, only 18% actually failed in the sense of leaving behind outstanding liabilities. It is true that many entrepreneurs fail, but if they are willing to learn from their failures, this will lead them to future success. Failure is therefore a stepping stone to success. It is not period - meaning you don't step down and out. You get up and fight another day... and another day... until you win.

Entrepreneurs are extreme risk takers (gamblers). Maybe this stems from the perception of people with regard to individuals who move out of their secure job into the topsy-turvy world of business. "You must be crazy to leave your job". In truth, entrepreneurs are calculated risk takers. They try to minimize their risk exposure by doing painstaking planning. Well, to say that entrepreneurs are extreme risk takers may be true (for the failed ones!!!) but the truth is that successful entrepreneurs take risks because they believe that there is a pay-off at the end of it. The basis for this belief - it is the burning desire to succeed.