Friday, 22 April 2016

SADE1013 INTRODUCTION TO ENTREPRENEURSHIP

written by Lew Bee Hui, Ng Ivon, Chia Mei Leng and Lim Boon Ping, posted on 23 April 2016


Section A


Introduction 


Entrepreneur is generally considered as someone who organizes or manages a venture to gain benefit or opportunity. Entrepreneurs also known as the people who have the initiative to provide solution to a problem, produce good or provide services in order to enhance the living standards. In this globalization world, the world economics are getting more advance due to the great efforts of the entrepreneurs. They create their own market, build their own brand, company, platform and etc. They work harder than anyone to do what they desire and to prove themselves, they always have positive mindset to cheer themselves up. In addition, the essential elements that can decide one’s success are the entrepreneurial traits. The entrepreneurial traits are highly needed and must be applied in order to achieve success in a business. Entrepreneurial traits such as networked, open risk taker, observant, visionary, failure is an option, open culture, outcome oriented, team oriented and proactive are the important elements that assist the entrepreneurs to succeed. In this task, the entrepreneurial traits as mentioned above will be analyzed and also discussed. Meanwhile, the related examples of the successful entrepreneur will be attached in each traits to make further explanation.




1.     Networked 


One of the most important key in a business is entrepreneur need to know the way to win and keep his or her customers, and at the same time, strengthen the relationships between the clients and the company. Relationship is an important element that need to be formed in a business’s network. To be a successful entrepreneurs, he or she have to co-operate with different parties. Business partners, financial partners, peers and contacts are the source of network for an entrepreneur to succeed. Success business people will foster these relationships and keep the people who can help them to be more effective. 



Picture 1: Earl Tupper 


The entrepreneur related with networked is Earl S.Tupper, the founder of Tupperware Corporation. He is one of the entrepreneurs that brings out the networked traits successfully. Earl S.Tupper had cooperate with Brownie Wise, a single mother with no formal business training. To keep a good relationship with the Tupperware’s user and promote the Tupperware product to the customer, Brownie Wise started a home parties, where in this home parties, product of Tupperware is promoted. Brownie Wise, vice president of Tupperware Company, or partner of Earl S.Tupper had successfully selling a lot of Tupperware product at home parties, where she keep a good relationship and network with her customers. 




2.     Open Risk Taker 


Risk Taker can be defined as someone who is willing to behave in a way that might bring harm or loss to himself or herself, however, this action might bring opportunity or financial reward. Almost all of the businesses has its own risk so to make the business a successful one, entrepreneur should dare to take risk if they want to expand their business and earn more money. All of the entrepreneurs are open risk taker. 




Picture 2: Robert Kuok 


The best example for open risk taker is Robert Kuok Hock Nian. Robert Kuok is known as a Malaysian billionaire and business tycoon who is now considered as the richest man in both Malaysia and Southeast Asia. He had an estimated wealth of 17 billion dollars. Besides, he has multiple companies in many fields of business such as sugar mills, food products, plantation, hotels and resorts. He is well-known for owning the world-class Shangri-La Hotels which is a chain of hotel resorts that run over 60 hotels worldwide in cities like Tokyo, Dubai, Manila, Singapore, Kuala Lumpur, Hong Kong, Vancouver and Paris.



In May and June 1963, Robert Kuok make a risky decision, he took 100,000–200,000 tons of sugar as preparation for the future market. He thought he would make big money as the market would grow. However, in July and August, the market fell dramatically. He claimed that the company might gone bankrupt if they had not been able to put in enough money. Then, at the end of August, a huge typhoon hit Cuba and caused major damage to the sugarcane plantation and also granulated sugar output. Thus, international sugar price kept rising. This show that Robert Kuok is willing to take risk in his business to success. Robert Kuok claim that, there are risks in every business; if you are brave enough to grab on the first or next opportunities, then you will never be a poor person forever. This proved that he is an open risk taker. 




3.     Observant 


Observant is a special entrepreneurial trait that needed by a successful entrepreneur. Observant people diligent in noticing what is going on around the people or environment. They are good at listening and watching and they perceive things easily because they are attentive to details. A particularly observant entrepreneur able to notice the problems or the current trend easily, then they provide a solution or create something to solve the problems. They see what people need and they create what people need.




Picture 3: Pua Khein Seng 


Example of entrepreneur, who showed this trait is Pua Khein Seng. Pua was born in 1974 and at Pin Hwa High School he completed his schooling. He began his degree at the age of 19 in electrical and control engineering at Chiao Tung University, Taiwan. In November 2000, after the founding of Phison Electronics, Pua made his mark by creating the pendrive in the Information Technology industry.


Pua is totally a good observant that quick to notice things. He came up with the first single chip USB flash storage device which an great improvement over the earlier multi-chip-design that had been researched earlier. He focus on the pendrive invention where he sees the world need a better technology to replace the data storage devices that are impractical due to the limited storage capacity. He successfully created a storage device which is smaller, faster, high capacity, more durable and reliable to store the information and also cheaper to produce at the age of 27 in 2001. His invention was definitely groundbreaking and even regarded as “father of pendrive” in Malaysia. 



Pua’s story can be considered as an excellent lesson on how to succeed with the ability to spot and grab on the opportunities in the current competing marketplace. To conclude, Pua is a role model of successful entrepreneur and investor that Malaysian can identify with and learn from.




4.     Visionary 


Visionary is one of the defining entrepreneurial traits which has the strategic ability to spot on opportunity and able to view things with a long-term perspective. Visionary leaders are also common with the qualities such as openness, persistence, conviction and imagination. The visionary leaders always build a future’s conceptual model based on their present keen understanding. A successful visionary leaders bring a modal into reality to create the future. They always found their way to success with their ability to determine and exploit on an requirement or demand for a product or service. 



Picture 4: Walter Elias Disney 


Great leaders with vision are people like Walter Elias Disney or better known as Walt Disney, create animation was his first vision. Walt Disney paid a lot of effort on the vision for Mickey Mouse to get the cartoon published. Then, he envisioned Disneyland which was inspired by the bigger picture to be a place where will brings happiness to everyone. It took Walt Disney a whopping 7 years to draft and plan out a Disneyland whereas most of the people would have probably already given up after a year. Meanwhile, he did not stop after creating the “happiest place on earth”, he further on to produce and create more, water parks, motion pictures, hotel room and even more. 



This is what visionaries do, they see what things could be instead of what things are. People like them always have a great talents to see the potential in every situation. They have great imagination and dreams, they will never give up easily in finding ways to express their vision.




5.     Failure is an option 


Failure and rejection are the most inevitable part of business, the way to handle and deal with failures will eventually affect one’s success. Those who are able to cope and to learn from the failure and rejection have the fearless attitude to risk. They try over and over again and they will not hold their idea sacred, they accept the feedback from the people who determine what works and what doesn’t. Entrepreneurs who have the characteristic failure is an option have positive attitude to failure and not afraid to fail, these bring them great success. 



Picture 5: Howard Schultz

Howard Schultz was the Chairman and CEO of Starbucks Corporation and he is considered as a classic entrepreneur. He was born in 1953 and being raised in the rough and tumble Bay View housing project in Brooklyn, New York. Schultz was the first to attend a college in his family. And now, he is worth over $2.2 billion and the company he owned is in the list of top 100 brands in America. His company valued at over $60 billion. Schultz expanded his company in Seattle from a single coffee shop to over 20,000 across the world in 1986. However, in 2007, the early runaway success of Starbucks almost led to a devastation. The journey of Schultz from success to failure and back again is an interesting story.


After graduating with a communications degree from Northern Michigan University, Schultz works at a company called Starbucks Coffee Company. After a trip to Milan, Schultz had tried to persuade the ownership to open cafés to sell beverages within the stores but being rejected. Schultz then raised $400,000 to open his own coffee shop named it as Il Giornale. A couple of years later, Schultz spent $3.8 million to buy the Starbucks retail stores and brand name and turned the Starbucks stores into coffee cafes and rebranded Il Giornale to Starbucks. 



In 2000, Schultz became the Chairman of the board after stepped down from the position of CEO and focus particularly on international growth. There were soon 13,000 Starbucks across the globe and about two stores were opening every two day in 2007. But, soon trouble was brewing for Starbucks. However, Schultz failed to oversee and retain the key features that made Starbucks succeed. After realized the problems, Schultz decided to return to his job as CEO to save the haemorrhaging company. On February of 2008, 7,100 stores were closed to retrain the baristas. The company lost $6 million but Schultz knew the important to prepare the perfect coffee. The company then finally got some positive press in year 2008.



The journal of Schultz to achieve success is full of obstacle. It wasn’t easy for the turnaround effort to bring back the new Starbucks which had became stronger after the rebuilding. Schultz is not a stranger to failure anymore and he always have positive mindset, he faced failures but he never give up yet always learn from failures, and keep trying to achieve what he wants. Schulz will always internalized the failures, learned from lessons to be better, stronger and ultimately even more successful.





6.     Open Culture 


Open Culture is an idea that knowledge should be disseminate openly. The knowledge growth should come from enriching, altering and developing on the existing works with the basis of collaboration and sharing but it must not being restricted by the rules that linked to the intellectual property legal protection. 



Picture 6: Dr. John E. Warnock & Charles M. Geschke

The entrepreneurs of Open Culture are Dr. John E. Warnock and Charles M. Geschke. Adobe System was founded by Dr. John E. Warnock and Charles M. Geschke in 1982. They were part of the Research team at Xerox Corporation which they left and start a new company. The first product of them was the “PostScript” software which was a very powerful computer language that described to the printer layout of the electronic page. They always provide challenge to their employees and they also trust and support the employees to overcome those challenges well. 

For instance, Dr. John E. Warnock and Charles M. Geschke are never measure the employee's capabilities by rating them because they think that rating will inhibits creativity and harms the team work. So that the managers play the role of a coach, they let the employees set the goals and determine how they should be evaluated. 


In 2013, Adobe has more than 11 000 employees and the sales revenue in the excess of $4.30 billion. This is the success of Dr. John E. Warnock and Charles M. Geschke because they believe that “putting trust in your employees goes a long way towards positive company culture, because trust leads to independent employees who help your company grow”.





7.     Outcome Oriented 


Outcome orientation is working for a goal but it is not simply set a goal and go for it. Likewise, it is a dynamic or flexible approach that can keep client’s desired outcome (demand of the client) resolutely in the therapist's mind when guiding their behaviour choice. In the other words, outcome orientation can also be defined as focus on the actual result or outcome and then work towards to achieve it.




Picture 7: Pierre Omidyar 


The entrepreneur for outcome oriented is Pierre Omidyar. He is the founder of eBay (electronic Bay) in 1995. He didn’t expect to become a billionaire as he just wanted to impress his girlfriend by setting up a very small online auction in his website. However, this had become a $3 billion empire with what had just started out as his hobby. He had more than 2 million subscribers and he found his name at the most profitable and popular Web-based in Internet history. 



Omidyar was born in 1967 in Paris. He was interested in computers and sneak out of physical-education classes in his youth time. In 1995, eBay was founded by Omidyar. He developed a place for users where they could go online and bid for the items. By this the early success of the eBay, he quit his day job and he invest his time to building eBay’s community and technology with Skoll. They believe that they system work and it would grow. And, they did it! eBay has become one of the highest visited sites on the Web in mid- 1997.



Today, eBay has become the popular and hottest sites in the Internet and it has changed e-commerce. Pierre Omidyar just amazed by the eBay’s unbelievable growth. Therefore, as Pierre Omidyar said “I never had it in mind that I would start a company one day and it would really be successful. I have just been motivated by working on interesting technology”, work hard on the goal that set to achieve it.





8.     Team Oriented 


Team oriented is a crucial entrepreneurial trait for an entrepreneur to run a business successfully. Most of the entrepreneurs acknowledge that effort alone isn’t enough to build neither a company nor a business. Team oriented is important in a business operation and by delegating the responsibilities regard to the professional of every members, efficiency and operations of a company will be improved, meanwhile, allow the company to focus on its core competencies moderately.



Picture 8: Bill Gates


Bill Gates, the co-founder of Microsoft is one of the example who has the team oriented trait. He recognized that everyone has a contributing factors in the operation so he assigned the position regards to everyone’s professional, ability and capability, meanwhile, he also provide a comfort workplace for his team, and trust on his team members.



For an example, in 1995 Bill Gates was so persuaded that the Internet will be the Microsoft’s future and he wrote a long memo to his company because he felt necessitate. He stated that Internet will be a tidal wave that change the rules and it is an unimaginable opportunity and unimaginable challenge ahead. Bill Gates is looking forward on how his team can improve their strategy to continue their track record and achieve greater success. 



Bill Gates realized it is important for his whole team with Microsoft’s mission to be on board, he not just think for himself but the whole team. At last, Windows 95 was launched and came bundled with Internet Explorer. This was the result he achieved with the efforts of his team. 



In conclusion, Bill Gates is a role model we can see team oriented trait in him. He trust on his team and back up his team all the time. He believes that great organizations demand a higher level of commitment with the people involved. Business will not be well organized with only effort alone, it is about a group of people or a team.




9.     Proactive 


Proactive is a unique entrepreneurial trait which considered as an action or result oriented behaviour. Proactive entrepreneurs are those who have the ability to control over a circumstance and able make adjustment in a sudden condition. They do not wait for things to happen. Besides, proactive trait also aims at the identification and exploitation of opportunities and focuses on action taken against the potential problems or threats. Most of the successful entrepreneurs applied this entrepreneur trait to their business. This trait assist them to make a move and continue in testing circumstances, especially when they see opportunity. A successful entrepreneur is great at finding opportunity and will constantly seek for more. 




Picture 9: Li Ka-shing

Hence, Li Ka-shing is a role model who applying this trait to his business. Li Ka-shing is one of the top 20 world millionaire that listed in Forbes millionaire list. He recognized that plastics would turn into a blasting industry and he was right. He properties the accomplishment of Cheung Kong, which he began with just $50,000 to a readiness to take in the most recent industry pattern. "The relationship in the middle of knowledges and business as the way to achievement is nearer than any time in recent memory," he said. 

Besides, he knows that internet is getting more popular in the future so he became one of the main enormous speculators in Facebook. Recently, everyone is concerning about healthy food so he starts to put resources into a startup that intends to supplant eggs with plant substitute. 

A proactive entrepreneur is the one who can sees opportunity and able to react quickly in an expected situation, they are the one making something happen. In addition, they are also able to create or lead the trend and increase their profit at the same time. This is the reason why their company able to sustain for a long period and always leading the trend.


Conclusion 


In a nutshell, most of the entrepreneurs often faced many obstacles or failures along their way to build their own company. Before they success, they might be the unemployed that had experienced thousands times of being rejected or being treated as ridiculous human beings that think of silly ideas. They work harder than anyone to do what they desire and to prove themselves, they always have positive mindset to cheer themselves up. In addition, the entrepreneurial traits are the important elements in leading a business to success. They applied those entrepreneurial traits to build their company, market, own brand, platform, presence and etc. As the saying, Rome wasn’t built in one day, but they were laying bricks every hour, which means that someone need to be patient and it take times to complete or create something great. So, the entrepreneur that had success in their business or career fully prove to us that they take a lot of times and had been go through a lot of failure in order to success. C.S. Lewis said that hardship often prepare ordinary people for an extraordinary destiny. There is no success without hardship, those successful entrepreneur had paid their hardship and at the end they success.



Section B



Picture 10: Jack Ma (Ma Yun)


Jack Ma was born in Hangzhou, China on 15 October 1964. Jack Ma is a successful role model of entrepreneur. He was the founder of China’s first Internet-based company in 1995 and he had been considered as Steve jobs of China. He is the founder of Alibaba Group that well known of the methodology he used in business and his leadership quality. He is one of the billionaires in China who having net worth of $8.4 billion. Jack Ma’s success is an interesting story. He was an English teacher at Electronic Industry University in his hometown, Hangzhou before he achieve the success today.

He decided to make a change after he had been an English teacher for six years. Jack worked part-time for local government to create website and he found that working for government isn’t easy. He is a good observant and recognized that he could create more opportunity by collaborating with the small and medium newly established companies that accounted 85% of the China's Enterprises. Jack begun to build his own new online model rather than using the B2C or C2C model because from his observation, models are important to gear towards big enterprises with its own channels of distribution and the huge advertising expertise.

In early 1995, his friend introduced about internet when he was first visited to U.S. Then, “beer” was Jack Ma’s first online search. Then, he was wondered when the results did not show any information about Chinese beers. As Jack Ma is a visionary entrepreneur and his vision start when he decided to create an internet company for China. In order to start his own online company named “Alibaba”, he persuade his friends to invest in his plan as he is inspired by the internet he heard. Soon, his company attract members from different places to invest in his company. Goldman Sachs had invest 5 million, SoftBank has invest 20 million and so on. In October 1999 and January 2000, Alibaba received international investment of 25 million. Then, he continue to improve global e-commerce system, and he founded Taobao Marketplace. 

The third entrepreneurial trait that applied by Jack Ma is failure is an option. Here are the stories of massive failure that lead Jack Ma to success. Jack Ma failed three times for the college entrance exam. After that, he applied 30 times to get a job but he was rejected. He didn’t give up, he approached to apply the job of police and still didn’t get it. Then, when KFC first time came to China, he went to get a job. There were 24 people went for it and 23 people were accepted while he was the only one who dismissed. Not only that, he tried 10 times to apply to return to the Harvard University USA but at the end he failed. After years, he founded Alibaba and he was met a lot of challenges. At the first 3 years, he didn’t get profit in this brand. However, he didn’t give up and find solution to solve it. Today, there are 800 million people use Alipay and Alibaba is worth more than $200 billion. As Jack says, do not be afraid to fail, try to learn from mistakes and failures.

Moreover, Jack Ma is also known as an open risk taker. For example, he decided to give to be an English teach and started to create and Internet company in China after he couldn’t search any Chinese beer from the internet. He take risk on developing internet business when he has a stable job. Thereby, he was given a nickname, “Crazy Ma” because of his unusual management philosophy. There are four elements of his management style which are be like Forrest Gump, innovate on the shoulders of giants, soar with eagles and take your business but not yourself seriously. He believes that there is nothing impossible if he remains committed to his principles and works hard. After he founded Alibaba Company, he proposed his own payment program which is Alipay. This idea was rejected but he believed that this could work and he take the risk on investing this payment program. Lastly, this program was globalized.

Last but not least, Jack Ma also apply outcome oriented trait into his business. He had a goal which was built a China’s first Internet-based company after he found that Chinese beer was not found in Yahoo. He dreams to set up his own e-commerce company so he decided to launch and register a China page. He had no money and technology when he decided to build a company. To start his business, he borrowed $2000 to set up the company and he used every dollar very carefully. At that time, he knew nothing about the computer but he still worked hard to achieve his dream. Throughout his great effort, he achieved his goal and built his company, Alibaba which is a successful internet company in China now. 

Jack Ma is a role model of a successful entrepreneur which we can see so many entrepreneurial traits in him. He observes what others don’t, he sees opportunity, dare to take risk, is a quick decision maker and never fears of failures. He overcomes all the obstacles he faced and put in a lot of efforts to build his company, the success he achieved today was a great return we can see. As he said, “Never give up. Today is hard, tomorrow will be worse, but the day after tomorrow will be sunshine.” 


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