1. 11th International Entrepreneurship Forum, PWTC,Kuala Lumpur, 3-5th September 2012 Murray HunterUniversity Malaysia Perlis

2. MostEntrepreneurs look like this 3. TOTAL ESTABLISHMENTS OF COMPANIES BY SIZE 4,542 LARGE(0.8%) 12,694 MEDIUM(2.3%)100,561SMALL (18.2%)435,052 MICRO(78.7%)Census of Establishments & Enterprises 2005 DOS - TOTAL ESTABLISHMENTS: 552,849Dec 20103 4. DISTRIBUTION OF SMEs BY SECTOR Manufacturing Agriculture39,376 34,225(7.2%) (6.2%)Services474,706TOTAL SMEs : 548,307 Census of Establishments & Enterprises 2005 DOS -(86.6%) Dec 2010 4 5. CONTRIBUTION BY SMEs(%)608.150403.933.930 0.120 19.77.910 14.58.411 0G DPE mploymentT otal E x portcontributionManufacturing S ervicesAg riculture Preliminary Statistics by DOS - Dec 2010 5 6. Degree of ambiguity Active/ImaginativeAllocativeConstructionIntuitiveAnalytical Supply/Demand changesNew technologiesDemographic changesNew Business modelsValue creationnt io va no Locus of change In InductiveImitationDiscoveryDeductiveReplication & ExtensionIncongruities (Black & white) Structural changesPassive/Reactive Hunter (2012)The forms of opportunity 7. LowIntuitive High High Large Companies & Breakthrough Consumer TypeTechnologyMarketsHigh analytical and highHigh analytical & Lowintuitive opportunities, high intuitive opportunities, strategy & high tacticalAnalytical high strategy & low tacticalexploitation Growing exploitation importanceImitative BusinessEntrepreneurial of formal Low analytical & low intuitive Low analytical & high intuitive, strategy opportunities, low strategy &low strategy & high tactical low tactical exploitationexploitation Low Growing importanceHunter (2012)of tactical moves 8. Imitative 9. Imitative 10. Imitative 11. Four potential firm opportunity seeking typologies Market OrientatedBoth Market &FirmsEntrepreneuriallyHigh Orientated FirmsHigh adaptability to the environment but lowHigh adaptive and idea generative idea & strategy Market Orientationgenerative & strategy ability development ability Conservative firms Entrepreneurial FirmsLowVery lowadaptability to High generative idea environment& strategy capabilityLowHigh Entrepreneurial Orientation 12. Space Global NationalCity NeighbourhoodSectional Interest Today Next Next NextLife Childrens Time W Week Year Few Years TimeLifetime 13. People start businesses for the wrong reasons and mistake something they like for an opportunity 14. Tissue Culture 15. Microwave Oven Pressure CookerChemicals & Spoons, etc.Glassware 16. Why let the train leave without you? 17. Mostpeople liketo takethings easy 18. Insufficient SalesInsufficient Capital No business plan No managerial focus Inadequate records Lack of profit focus Cash flow Inadequate systems Failure to plan for taxation Inadequate resource management Break even point Failure to develop new products 19. Can and doentrepreneurs use a business plan? 20. We can land a man on the moon and return himsuccessfully to Earth but we are still not too surewhat factors make a firm successful 21. Consumers Positioning Potential new novel Opportunityproduct extendingmarket field or creating a new oneAttempting through existing orto createTargeting new channels and Refining thesome form business models.Ideaofcompetitive advantage Segmentation Concept Product idea tocompete with Market existing productsin marketIdentification The set of possibleideas/products/marketsThe Causation ProcessThe Effectuation Process 22. Wind in the case of a yacht orenvironmental turbulence in theVision &case of a firm. Goals Actual Path & Performance y ateg d Strate Modifiedt icipAn Vision & Goals 23. Evolved Strategy Trial and error tactical use with various levels ofXXXX Success/Non-SuccessTactics Applied 24. Opportunity ShiftTimeNewly identifiedopportunity needingdifferent goals, An identified strategies,opportunity incompetencies, skills, the pastresources and organization than previouslyThe Opportunity Landscape What strategies are required to successfullyPresentNeeded exploit the new Strategies Realignment of Strategies Strategiesopportunity and meet theorganizations new goals?Competitiveness What type of organization and Present Needed business model is Organization Realignment of OrganizationOrganization needed to support theselected strategy? What skills,competencies andPresent Skills &Needed Skills &technologies areRealignment of Skills & Competenciesneeded to support the CompetenciesCompetencies new business modeland strategy? What resources areneeded to supportPresentNeededRealignment of Resources skills, competencies, ResourcesResources technologies, new business model andstrategy? What networks arePresentNeeded needed to exploit the Networks Realignment of Networks Networksopportunity, acquires skills, technologies and resources, support the new business model and strategy?What new goals arePresent Goals New GoalsSetting of New goals needed to exploitthe newly identified opportunity? Reengineering of Total Organization 25. Young & invigorating imageInternet BookingsAn exciting lowYoung good looking cost airline to flyair & ground crewsModern and trendy onaircraft interiors Advertising image Limited use of Baggagetravel agentsStandardized aircraft toNo baggage transfers cut down on No connection with maintenance costsother airline baggage Fast Aircraftservices turn-around times Baggage surcharge General savings onoverheadsExtra means of Auto-check with norevenuebaggageNot burdened by Paid snacks & mealsSeatingtraditional air and groundLow landing chargesBlanketscrew proceduresand terminal fees Computerized ticketingNo connection with otherHeadquarters locatedmethods airlinesat airport terminalRelated businesses - hotels 26. The Wright Bros. developed the airplane through effectuation (trial & error). They developed a new theory and a new invention. 27. It was only when a use for the newinvention was found that an industry developed. 28. Could the Wright Brothers developed a business plan whenthey first decided to build a flying machine? 29. At the time this looked just as viable 30. The Secret 31. Forecasting 32. Things arealways amystery untilwe get there 33. Rate of Adoption Innovation Growth Maturity100%80%60%40%20% 1975 19801985 199019952000 20052010 34. Market ResearchLess than 2% of filed patents are ever commercialisedDoes a new invention have consumer benefits or create anycompetitive advantage?Can consumers accept the new invention? 35. Product EvolutionPre 1900s Laundry BlueUp to Late 1940sSolid Soaps & Powders Laundry Detergent Bars1950s until presentLaundryDetergentsPowders LaundryDetergents withLiquidsSpecialDetergentsAdditives Concentrated1980s until presentLaundryPowders Laundry Detergent Tablets 36. Society & family, peers & Influence on other paradigmsrole models, assumptions,values, beliefs, learning,mentors, perceptionsPeer groups mentors,society CulturalParadigmCommitment and ethicsUpbringing and family Social & Educationalbackground, education and Backgroundlife experiences, stressfulunexpected events, fate ParadigmChance & FateIdentify and exploitLooking for benefits, opportunitieseffective performance,able to secure resources,overall vision, able to Resource gatheringweigh things up inParadigmStrategicstrategic way Customer orientatedEnvironment, peers, family,culture, realities, motivation, Sense of achievementdedication, self assurance,self perception, morality,Motivation &responsibility, determinationaccountability, adversity to ParadigmPersonalityrisk taking (courage), standon beliefs, level of comfortAdversity to risk takingEnvironment, triggers,Seek & identifyinspiration, lateral &opportunitiesserial thinking,technical skills, ideas,opportunities, solutionInnovativeParadigmCreativityfindingHealth, personal energy,focus, time orientation,orientation to getting things In control of thedone, orientation towards business Actiongetting the right thingsParadigm Attributes of the EntrepreneurdoneAble to inspireSelecting the right people,team/individual orientation,peopleview of outside expertise,networking, interpersonal Ability to workoutlooks, management style, with peopleleadership, Paradigmdominance/submissivenessNetworkingInterpersonalPositive & negative Experienceexperiences, success &failure, education &skills, soft skills, talentsTechnical skillsand abilitiesSkillsParadigmSoft skillsTalents & abilities 37. The Potential Socio-psycho Factors that Influence Opportunity Discovery and Behavior. World and work experience, education, culture, family upbringing, etc. Personal Paradigms SkillsBehavior Alertness Influencers MotivationThe PsychPriorKnowledge Sense of self. ego,encodedPerceptionStrategicOutcomesassumptions,Outlookbeliefs and values.Personality FeedbackCreativityExpectations, goals,Traits self regulatingPropensity restraints, etc. to Action Talents and Motivational Abilities TriggerInterpersonal IdeaGAP What I doHow I feel Who I amA Trigger External event orSituation internal feelings 38. People start businesses for the wrong reasons and mistake something they like for an opportunity 39. Size First entrepreneurial phase Possible matureentrepreneurial phaseUsually NPD strategies SalesRegenerationUsually timeof increasingMid-life crisis organizational rigidity An era ofcomplacency and Declinerigidity Enterprise begins to take a Profit past orientation Pre start-up Start-upGrowthMaturity Decline or rebirth Entrepreneurship is just a stage in the firm lifecycle 40. Change in how and where people buy the productRiskNone SomeGreat None None LowMediumChangeIn User SomeLowMedium High Habits Great Medium HighDangerous 41. Entrepreneurship Curriculum &TeachingWithout Relevant TechnologyKnowledge & Training 42. The educationsystem is hung upabout measuring intelligence 43. Entrepreneurshiphas very little to dowith intelligence. Itis all about creativity.Otherwise onewould have to be aprofessor to start a new business. 44. Unlikeintelligence creativity can be taught 45. New IdeasUnknown Opportunities Surrounding Developing Strategies The MetaphoricEnvironmentSolving Problems Concept of CreativeDomain &Field IntelligenceEnvironmental Environmental Factors conduciveFactors thatto creativityhinder creativityInternal Influencing PerceptionFactors MotivationalFocus & AttentionTriggerCreative Sensitivity Patterning Energy Emotion Thinking CuriosityProcessesPrior Empathy (Self OrganizingKnowledge Patterned ThinkingConfidence System) Processes DisciplineInterestPassion Cognitive ThinkingTools & StylesMemory HeuristicsBeliefImagination Applied Thinking FantasyTools, Domain & FieldExperience Manifestations &Acceptance/ Tacit Knowledge Elaborations Rejection Creative ProductHunter (2012) 46. Creativity Tool Cognitive Skill Knowledge (vocabulary) of odorous substancesImaginationOlfactory sensitivityKnowledge of potential strengths, weaknesses and applications ofodorous materialsKnowledge ofCuriosity, enquiry outstanding and Perfumer fragrance creationsexperimentationExcellencewithin the domain Practical knowledge& experience Process & Interest and Product passion Time, patience,perseverance EmotionKnowledge Base 47. Understanding Complexity 48. Paticcasamuppda When this is, that is(1)(Present) From the arising of this comes the(2)arising of that(Past to present) From the stopping(4) of this comes thestopping of that(Past to present)(3)When this isnt, thatisnt (Present) 49. Location Climate Genetic MaterialHumidityCollection TemperaturePurchaseSunshine hoursTopography UV radiation Plant physiology SeasonsSlope & drainagePropagationYield andRainfall characteristics ChemicalConstituents of theHumus NutrientsMethod of extraction Essential Oil Extraction timeCompactness Drainage & waterholding qualities Pest & weed pHcontrolPre-harvest handlingMineral residuals Irrigation & preparation Plant densitiesSoil typeTime & method of harvestAgronomic Harvest & Soil Practices ExtractionPractices 50. Automobile Chassis Engine Tires Control & Braking System Environment management SystemsRubberSuspensionFuelElectronics Alloys Road Rules systems Compression ChemicalHydraulicsRoads &SteelMicroprocessors & Processes Carriageways Combustion Plantations 51. The Past PresentThe FutureTimeThe effect of competitorinnovation will bring We know the present and product evolution and can learn about the past. create new market segments Examples: 2 in 1 shampoo & Sugarless carbonated drinks Market TimelineNo changeRadical change in technology will bring a Without any changesnew Industry our timeline will remain fundamentally unaltered. Examples: Home computers in the 1970s & mobile phones in the 1980s Time 52. Decrease in economic development Conflict of valuesLocal people Higher land taxes to support struggle to local infrastructure surviveMassiveIncrease landdemographicpricesRising landchanges Less land available prices for farmingInflux of out ofLocals emigrateregion land from region buyersLush Beautiful farmlandsIncreased conservationand hinterlands 53. New PollutionParadigmsEconomic A situational analysis of the environmentFossil Fuels Growth Export/Import Transport Farm Raw materialsTransport Government PowerProduction Transport Diversity generationWarehouse ManagementSupermarket ConflictResearch &CommunityDevelopmentConsumption Education Regulation Competition & TensionAir Transport Poverty &UnhappinessDevelopmentWasteHealth Uncertainty 54. The world is seen from our own perspective our narrative 55. Narrative expresses ..Hopes Feelings Ethical & spiritual codesSocial hierarchies Empathy Imagination Self identity Fears Our introspectionsSharing valuesSharing beliefs Means of transferring ideasProblem solvingOur projectionsOur relational position to society Meaning 56. Narrative Compresses Time to aManageable Dimension 57. The truth keepschanging as we see new things