Entrepreneurship

• Why startup?
• How to start an organization
• Lean startup method
 Why to become an Entrepreneur?
• MakeMoney
Be YourOwn Boss
Enjoy a Satisfying Life
Rewards of Being an Entrepreneur
• High degree of independence-freedom from
constraints
• Get to use a variety of skills and talents
• Freedom to make decisions
• Accountable to only yourself
• Opportunity to tackle challenges
• Feeling of achievement and pride
• Potential for greater financial rewards
 Benefits of Small Business Ownership
• The opportunity to create your own destiny
• make a difference
• reach your full potential
• reap unlimited profits
• contribute to society and be recognized for your
efforts
• do what you enjoy and have fun at it
•
 Challenges of Being an Entrepreneur
• Must be comfortable with change and
uncertainty
• Must make a bewildering number of decisions
• May face tough economic choices
• Must be comfortable with taking risks
• Need many different skills and talents
• Must be comfortable with the potential for
failure
 Drawbacks of Small Business
Ownership
• Uncertainty of income
• Risk of losing entire investment
• Long hours and hard work
• Lower quality of life until the business gets
established
• High levels of stress
• Complete responsibility
• Discouragement
2. Factors the affecting the start up process

Opportunity

Environment Environment

Entrepreneur

Resources Organizations

Environment
2. Factors the affecting the start up
process 2.1.Entrepreneur
Establishing companies require at least 1
person who is highly motivated.
Entrepreneur is the one who lay the
foundation for the establishment of
companies, is the supreme commander
who can recognize opportunities, put the
resources to pursue these opportunities and
build organizations, including the
associating of the resources necessary to
exploit these opportunities.
• An entrepreneur creates and/or exploits
change for profit by innovating, accepting risk
and moving resources to areas of higher
return.
 Entrepreneurs
Entrepreneurs must meet the following four
required factors:
• Actively seek opportunities
• Be clear of the business opportunity
• Good knowledge
• Social network
 Entrepreneurs
2. Characteristic of a successful entrepreneur
•Confident
•Risk taker
•Flexible
•Independent in thinking
•Determination and hard-working
•Creative
•Achievement leads
•Emotionally control
 Entreprenuers
2. Characteristic of a successful entrepreneur (cont)
•Acceptance of ambiguity
•Take into account others’ suggestions
•Leadership style
•Sufficient resources available
•Communication skill
•Patient
•Interested in benefit
•Forehanded
WHERE DOES ENTREPRENEURSHIP
COME FROM?
 Fathers of entrepreneurship
• Richard Cantillon
– 1680s - 1734
– French economist and banker
– Was the first to use the word
“entrepreneur” and
“entrepreneurship”

• Entrepreneurs are:
– Non-fixed income wage earners
– Brings equilibrium to the market because
entrepreneurs can better understand and predict
consumer preferences
 Fathers of entrepreneurship
• Peter Drucker
– 1909 - 2005
– Austrian management consultant
– Wrote many, many books and articles
about entrepreneurship

• Entrepreneurs are:
– Innovators who take ideas in industries to new,
higher levels
– Not all business owners are entrepreneurs
– Entrepreneurs require special characteristics
– Entrepreneurs are not risky, instead, they
welcome change and uncertainty
 Entrepreneurs in Vietnam
• There is an entrepreneurial feeling here
– Have you sensed it?
– How has it presented itself to you?

• Rockstars of Vietnam
– Pham Nhat Vuong
– Doan Nguyen Duc
– Dang Le Nguyen Vu
– Pham Thi Viet Nga
 Highlighted
Vietnamese entrepreneurs
• Pham Nhat Vuong
– Vietnam’s first USD billionnaire
– Born in Hanoi in 1968
– First startup: instant noodles in Ukraine
– VinGroup
• VinPearl, VinCom, VinRetail, VinPearl, etc..
 Highlighted
Vietnamese entrepreneurs
• Doan Nguyen Duc
– WSJ’s Most Influential Entrepreneur in Southeast
Asia
– Hoang Anh Gia Lai Group
• Real estate in Vietnam
• Sugarcane-sugar, rubber, and estate projects in Laos,
Cambodia and Myanmar
 Highlighted
Vietnamese entrepreneurs
• Dang Le Nguyen Vu
– National Geographic: “King of Coffee of Vietnam”
– Trung Nguyen Coffee
• Exporting coffee to 60+ countries
 Highlighted
Vietnamese entrepreneurs
• Mai Kieu Lien
– Corporate Governance Asia Journal: Top Asian
CEOs
– Forbes: Asia’s 50 Most Powerful Businesswomen
– CEO and Chairwoman of Vinamilk
• 51% share of the liquid milk market
• Steady annual increases
• Exports to 30+ countries
 Highlighted
Vietnamese entrepreneurs
• Pham Thi Viet Nga
– Forbes: Asia’s 50 Most Powerful Businesswomen
– CEO and Chairwoman of Hau Giang Pharmacy
WHO IS AN ENTREPRENEUR?
 Who is an entrepreneur?
• Let’s draw an entrepreneur
– Describe the qualities of an entrepreneur
– What are some words we can use to describe
an entrepreneur?
 Who is an entrepreneur?
• Innovative
• Creative
• Calculated risk takers
• Systematic planners
• Visionary
• Achievement oriented
• Persistent
• Dynamic
• Hard-working
• Self-confident
• Aggressive
• Egotistic
• Emotional Intelligence
 What kind of person starts a business?

• Passionate creators
• Freedom seekers
• Legacy builders
• Struggling survivors
• Speculators
• Social entrepreneurs
 Types of entrepreneurs
• Nascent
– Individuals considering establishing a business
• Novice
– First time entrepreneurs, and have no
experience
• Serial
– Habitual entrepreneur who owns only one
business at a time
• Portfolio
– Habitual entrepreneur who owns more than
one business at a time
INTRAPRENEURS
 Entrepreneur vs intrapreneur
• Entrepreneur
– Person who creates new ventures based on
innovative ideas
– Has the freedom to act on his or her whim
– Total autonomy

• Intrapreneur
– Employee who promotes innovation within
the limits of the organization
– Needs management approval for any changes
that cause conflicts within the organization
Entrepreneur vs intrapreneur
Basis for Entrepreneur Intrapreneur
Compari
son
Meaning Creates a venture with a Innovates a product, service, and/or
new idea or concept process at a company
Resourc Raises own resources Uses resources provided by the company
es
Capital Raises own resources Financed by the company
Enterpri Newly established An existing one
se
Risk Individual Company
Failure May lose everything Often still have a paycheck
Level of Macro-scale Skilled and specialized
expertis
e
Works Anywhere their vision Change and renew an existing
 Intrapreneurs
• Lockheed Martin
– Intrapreneur: Kelly Johnson
– Project: Skunk Works
– Purpose: Advanced Development
Programs

– Results
• Created some of the most innovative aircrafts ever
seen!
• Lockheed Martin
– Intrapreneur: Kelly Johnson
– Project: Skunk Works
– Purpose: Advanced Development
Programs

– Results
• Created some of the most innovative aircrafts ever
seen!
 Intrapreneurs
• Google
– Intrapreneur: Everyone, Paul Buchheit
– Project: 20% personal time
– Purpose: Email program with
search function

– Results
• Gmail
• Revolutionized the industry!
 Intrapreneurs
• Facebook
– Project: Hackathon
– Purpose: Innovation

– Results
• The Facebook “Like” button
• Users can show approval, and Facebook can track
users
MYTHS ABOUT ENTREPRENEURS
 Myths…
• All entrepreneurs are rich
• Entrepreneurs are born, not made
• Entrepreneurship is easy
• You need a lot of money to start a business
• Successful entrepreneurship needs only a great
idea
• Entrepreneurs always generate new ideas
• All you need is luck
• Entrepreneurs are extreme risk takers
2. Factors the affecting the start up process
2.2. Opportunities
• Opportunity is one situation in which one product, one
service or procedure is introduced and sold at higher
prices than the cost of producing it.
2. Factors the affecting the start up process
2.3. Resources
• If the opportunity is not always there, the entrepreneur
are always ready to organize and put the resources in
order to pursue a particular opportunity and turn their
ideas into a business.
• Resources can be anything, it could be “the quality”, as
long as these factors are helpful to the establishing of a
new business. According to the resource-based theory,
there are 6 types of resources, which are: financial
resources, physical resources, human resources,
technology resources, social resources and organizational
resources.
2. Factors the affecting the start up process
2.4. Organization
• There are many different types of organizations in
accordance with the exploitation of a business
opportunity. Although the most common one is the
establishment of a brand new independent business, but
there are many other organizational forms, such as joint
ventures, franchising, joint stock companies and mergers.
2. Factors the affecting the start up process
2.5. Environment
✓ There are 2 levels of the environment that can affect the
“life” of a business: the industrial level and the general
level.
✓ At the level of the industry, the number of firms in the
industry and the strong relationships between the
companies in the industry are important to the “life” of
the business.
✓ At the general level, there are at least two aspects form
the operating environment of a business: the cultural
values ​and the operations and policies of the
government.
3. Process of establishing a new business

T
Environment
o Ideas
Goal Opportunities
W Decisions
Individual
S Ideas
SEGMENTS OF HOSPITALITY
 Food and Beverage
• Consists of businesses that prepare food for
customers.
• Largest segment of the hospitality industry in
the U.S.
• The food service industry provides 50 of all
meals eaten in the US today.
• Businesses in this industry can range from
casual
to fancy, large to small, expensive to
inexpensive.
 3 Types of Food Service
• Commercial
• Institutional
• Food service within a consumer business
 Commercial Food Service
• Food and beverage businesses that compete
for customers. They are designed to make a
profit.
• Commercial food service businesses include
• Quick-service restaurants
• Full-service restaurants
• Catering businesses
• Hotel and club food service
 Quick-service restaurants
• Work to provide customers with convenient, fast,
and basic foods at relatively low prices.
• Quick-service restaurants generally have few
employees and rely on the customers to serve
themselves.
• Businesses that would qualify as quick-service
include fast-food, cafeterias, buffets, and
carry-out. Street vendors would also qualify in
this category under fast-food.
•
 Full-service restaurants
• Seat customers at a table and utilize servers and
other staff to take orders, deliver drinks and
food, and clear tables.
• They can be fine-dining or casual-dining.
Fine-dining restaurants usually have high prices
and lavish service with a high number of
employees in relation to the number of customers
Fine dining establishments also have professional
chefs with years of culinary training and
experiences. Only about 1 of full-service
restaurants are considered to be fine-dining, the
other 99 are casual.
• Casual restaurants usually have a larger menu and
more
• seating than fine dining restaurants.
 Catering businesses
• Provide food and service for a special event.
• Catering usually involves feeding large numbers
of people at one time, and the guests may be
offered a variety of items to choose from or just
a few.
• Special events that utilize catering can be for
business or social occasions these events may
include business
• meetings, receptions, awards dinners, holiday
parties, weddings, proms, birthday parties,
reunion, or charity
• events.
 Institutional Foodservice
• Institutional foodservice provides customers
food
and drink in an institution (such as a school,
hospital, assisted living community, military
base, prison, or factory).
• Institutional foodservice customers generally
do
not have the time or ability to seek food in a
commercial foodservice business.
 Foodservice within a Consumer
Business
• Foodservice within a consumer business is a food
and beverage business that is located within a
consumer
• business such as a movie theater, sports arena,
museum, theme park, airport, or train station.
• It could be fullservice or quick-service.
Customers generally do not seek these places out
to dine in on any given day. Rather,they eat in
these places because they are customers to the
business they are within and choose to eat there
out of convenience.
• Providing foodservice within a consumer business
is another way for that consumer business to
provide service to its customers.
 Lodging
• Lodging, also known as accommodation, is a
place
to sleep for one or more nights.
• A business in the lodging industry is a business
that provides a place for people to sleep
overnight. It can be one of many sleeping
places
such as a fancy hotel, a youth hostel, an elder
hostel, a campground, or highway side motel.
• There are many different kinds of lodging that
fit into four categories full-service hotels,
limited-service properties, specialty
accommodations, and institutional housing.
• Both full-service hotels and limited-service
properties offer rooms with private baths.
• Full-service hotels are more expensive than
limited-service and are generally larger and
fancier.
• Specialty accommodations may offer rooms with
baths or may offer many rooms with a shared bath
such as a bed-and-breakfast or one large bunk
room/house with shared bathrooms such as a
hostel.
• Institutional housing is housing found at
colleges and universities, hospitals, prisons,
and military bases.
• Lodging businesses can be in any number of
locations depending on what population is being
served.
• Resort lodging is near resorts, travel lodging
near airports, and campgrounds near areas known
for recreation.
• Lodging businesses market to many different
market segments such as business travelers,
convention and meeting attendees, leisure
travelers, budget travelers, long-stay travelers,
and special travelers such as those working with
the airlines, government, and military.
 Recreation

• Recreation is any activity that people do for

rest, relaxation, and enjoyment.
• The goal of recreation is to refresh a persons
body and mind. Any business that provides an
activity for rest, relaxation, and enjoyment in
order to refresh a persons body and mind is in
the recreation business.
• Recreation businesses are incredibly diverse
because people have varying ideas on what
activities they participate in for rest,
relaxation and enjoyment.
• There are four general types of recreation
businesses entertainment, attractions, spectator
sports, and participatory events.
• Entertainment businesses provide a show for you
to watch such as a movie or live theater, and
concerts.
• Attractions are places of special interest to
visit such as natural scenery, museums, zoos, and
historical sites.
• Spectator sports are sport that you watch others
play such as foot ball games, baseball games, or
the Olympics.
• Participatory sports or events are sports or
events in which you take part in yourself such as
sports, yoga retreats, or cooking schools.
•
 Travel and Tourism
• The travel industry is in the business of moving
people from place to place. Busses, planes, cabs,
boats, and passenger trains are all part of the
travel industry.
• When people travel they spend money on
hospitality.
• Pleasure or leisure travel is when a person takes
a vacation and spends money on lodging, food, and
recreation while on that trip.
• Business travel is when a person travels for work
and also spends money on lodging and food. Some
business travelers also spend money on recreation.
• The tourism industry provides those people with
services that promote travel and vacations.
• Travel agencies, tour operators, cruise
companies, convention planners, and visitors
bureaus are all part of the tourism industry.
• The major function of the tourism is to encourage
people to travel. When people travel they use
hospitality services and when people spend money
on hospitality, the businesses in that industry
and the businesses that support that industry
grow. Tourism helps many economies, on a local
and national level, grow.