small and medium enterprise management apt 3063 prepared by : [email protected]
TRANSCRIPT
SMALL AND MEDIUM ENTERPRISEMANAGEMENT
APT 3063
PREPARED BY : [email protected]
SME Overview, Management, Entrepreneurship and Ownership
CHAPTER 1 & 2
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 EmployeesBased on the number of full-time employees
II. Annual Sales TurnoverBased on annual sales turnover
DEFINITION SMALL AND MEDIUM ENTERPRISES (SME)
Micro Small
Medium
Primary Agriculture Manufacturing (including Agro-Based) & MRS*
Services Sector (including ICT**)
MICRO Less than 5 employees Less than 5 employees 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
SMALLBetween
RM200,000 & less than RM1 million
Between RM250,000 & less than RM10 million
Between RM200,000 & less than RM1 million
MEDIUMBetween 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
Who is this man?
WALLY AMOS• 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
• 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 performan
ce
Integrity and responsibility
Innovation and
globalization
Special niche
Factors related to readiness for entrepreneurship
Age and entrepreneurial
opportunity
Characteristics of successful
entrepreneurs