SHORT NOTE: ECB20603 SMALL BUSINESS MANAGEMENT

1. DEFINITION ENTREPRENEURSHIP

4. STARTING THE BUSINESS

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.
Individual who had formulated a venture
idea, developed it, assembled resources and
created a new business venture

Differentiate

2.
ELEMENT
OF
ENTREPRENEURSHIP

TO

BE

5. INNOVATIVE THINKING TO GENERATE

IDEA (SWOT)

SUCCESS

Entrepreneur active search of opportunity,

entrepreneurial alertness, prior knowledge,
social networks
Opportunity
Resources
Organization
Environment
3. 3 TYPE OF ENTREPRENEUR

Opportunity entrepreneur - Entrepreneurs

who start business because they spot an
opportunity in the marketplace
Necessity entrepreneur - Entrepreneurs who
start business because they cannot find work
any other way
Serial entrepreneur Entrepreneurs who
repeatedly start businesses and grow them to a
sustainable size before striking out again.

Common Source

Idea
New Market: startup ideas centered around
providing customers with an existing product
or service not available in their market.
New technology: Startup ideas involving new
or relatively new technology, centered around
providing customers with a new product.
New benefit: Startup ideas centered around
providing customers with new or improved
products or services.

6. FRANCHISEES TERMINOLOGY

Franchising A business relationship in which

an entrepreneur can reduce risk and benefit
from the business experience of all members of
the franchise system.
UNIVERSITI KUALA LUMPUR BUSINESS SCHOOL
BBA (HONS) MANAGEMENT AND ENTREPRENEURSHIP

SHORT NOTE: ECB20603 SMALL BUSINESS MANAGEMENT

Franchisor The party in a franchise contract
that specifies the methods to be followed and
the terms to be met by the other party
Franchisee An entrepreneur whose power is
limited by a contractual relationship with a
franchising organization.
Legal aspects vital and must be understood
Franchise contract- The legal agreement
between franchisor and franchisee

franchise agreements such as non-compete

clauses that may not allow franchisees to use
personal skills and experience.
8. COST FRANCHISING

i.
ii.

The Pros

The Cons
Financial Issues - What are the true costs of
becoming and remaining a franchisee? Other
issues include such things as churning (actions
by franchisors to void the contracts of
franchisees in order to sell the franchise to
someone else and collect an additional fee)
Franchisor Competition Encroachment
The franchisors selling of another franchise
location within the market area of an existing
franchisee. Special clauses inserted into some

RISK MANAGEMENT
You should plan an honest assessment of the
risks involved, as well as how you can
minimize them.
11. BP FORMAT

7. PROs AND CONS

Trade Names and Trademarks success

results from intellectual property such as the
names that are well known to prospective
customers.
Operations Manual well-developed and
thoroughly tested methods of marketing and
management.

Organizational Chart
Labor Act
Salary and Wages

9. IMPORTANT INFORMATION

Reasons for Buying an Existing Business

Reduction of Uncertainties
Acquisition of Ongoing Operations and
Relationship
10. BUSINESS PLAN
MARKETING

This section describes how and where you sell

your products/services (or plan to in the future).
Many enterprises describe this in terms of the 4 Ps
(products, price, place and promotion) that you are
using to deliver benefits to your customers and
community.
HRM

iii.
iv.
v.
vi.
vii.
viii.
ix.
x.

Executive Summary
The Industry, Target
Competitors
The Company
The Marketing Plan
The Operations Plan
The Development Plan
The Growth Plan
The Team
The Financial Plan
Appendices

Customers,

and

12. PURPOSE OF THE BP

A logical statement of a problem and its

solution.
A significant amount of cold, hard evidence.
Candor about the risks, gaps, and other
assumptions that might be proved wrong
12. WORKING CAPITAL ASET MANAGEMENT

Working capital management the

management of current assets and current
liabilities
Working capital cycle the daily flow of
resources through a firms working capital
UNIVERSITI KUALA LUMPUR BUSINESS SCHOOL
BBA (HONS) MANAGEMENT AND ENTREPRENEURSHIP

SHORT NOTE: ECB20603 SMALL BUSINESS MANAGEMENT

accounts

Cash conversion period the time required to

convert paid for inventory and accounts
receivable into cash

UNIVERSITI KUALA LUMPUR BUSINESS SCHOOL

BBA (HONS) MANAGEMENT AND ENTREPRENEURSHIP