T E R I N G

S U R
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Principles of Management
Group 4
Table of 01 The concept of entrepreneurship

contents 02 Start-up

03 Organizing a venture

P R O F I T 04 Leading issues

I
L O S S
05 Control issues
K
 The concept of entrepreneurship
 Differences between entrepreneurship ventures and
 can
What is entrepreneurship?
You
losing
Resize
quality
without
small business
It is the act of using opportunities to
You start a business
can Change Fillby changing,
revolutionizing,
Color & transforming and
creating
Line Colora new product or service.

 Why is entrepreneurship important?

The importance of entrepreneurship
is shown in 3 areas:
FREE  Steps in entrepreneurship process
 Innovation
PPT
 Number of new start-ups 1.Exploring the external environment

TEMPLATES
 Job creation
2.Identifying the possible opportunities and competitive advantages
www.allppt.com
3.Starting the business

4. Managing the business

 Start-up
 Identifying competitive advantage and opportunity
BUY Peter Drucker ’s 7
The unexpected
potential sources
of opportunity

The incongruous The process need

BUY
SELL Industry and Demographics 
market structures

Change in
SELL New knowledge
perception
 Researching the venture’s feasibility
Three areas of venture’s feasibility

IDEAS
- Generating ideas
- Evaluating ideas

COMPETITORS
Your Picture Here

FINANCING
- Personal finance
- Bank, saving and loan institutions, …
- Venture capitalists
- Angel investors
- Initial public offering (IPO)
- Governmental development program
  Developing a business plan
After considering the feasibility, it is time to develop a business plan, which is a written document that summarizes a business
opportunity and how to exploit it.

Executive Description of
summary business 

Analysis of Financial data

opportunities and projections

Analysis of Supporting
context documentation

BUY SELL
 Organizing a venture
Legal forms of organization
Ownership
Structure Tax treatment Liability
requirement

SOLE PROPRIETORSHIP One owner Taxed at the owner’s personal income tax rate Unlimited

GENERAL PARTNERSHIP 2 or more  owners Taxed at the owner’s personal income tax rate. Unlimited

LIMITED LIABILITY Limited, although one partner must

2 or more owners Taxed at the owner’s personal income tax rate.
PARTNERSHIP (LLP) retain unlimited liability

Unlimited numbers of Dividend income is taxed at corporate and

C CORPORATION Limited
shareholders personal shareholder levels

S CORPORATION Up to 75 shareholders Taxed at the owner’s personal income tax rate Limited

LIMITED LIABILITY COMPANY

(LLC)
Unlimited members Taxed at the owner’s personal income tax rate Limited
  Human resource management
BUY
 Recruitment
 Retention

 Managing change and stimulating innovation

 Be aware of dynamic changes, both external and

internal.
 Explain the organizational changes to employees.
 Encourage change effort 
SELL  Guide change process
 Create a suitable environment for innovation
 Leading issues
What is proactive personality? Various items on the proactive
Personality Characteristics of Entrepreneurs
personality
are not be impacted by the
environment five things: gender, education, having an
entrepreneurial parent, and possessing a
proactive personality.
Motivating Employees Through Empowerment

What is employee empowerment ?

Giving employees the power to make decisions and take actions on their own to solve problems

a. Leading the venture The Entrepreneur as Leader b. Leading employee work team

have a vision in order to make the decision traditional command-and-control

in some unprediuctable situation. style => the coach-and-collaboration style 
 Control issues
 Managing Growth
100%

90%
60%
80% a. Planning for growth
The plan have to be flexible to expand
70% maximum the opportunity of the rise

60%
40%
50% b. Organizing for growth
 Finding capital
40%  Finding people
 Strengthening the organization
30% 80%

20% c. Controlling for growth

A management should give his or her best
10% try in a project even though mistakes
cannot be eliminated entirely.
0%
A1 A2 A3 A4
  Managing downturns
a. Recognizing crisis situations: b. Dealing with downturns

 Not enough money or losing money  identify the best strategy and
 Excessive employees restructure the project

 Unnecessary procedure

 Fear of taking risks

 Cannot handle the project

 Lack of mision or goals

 Ineffective organization
  Existing the Venture

a. BUSINESS
VALUATION
METHODS
b. OTHER
Valuation techniques IMPORTANT
generally fall into CONSIDERATIONS
three categories: IN EXITING THE
VENTURE
 Assess the valuation  decide where will they sell the
 Assess the income products and who will buy them
 Assess the cash flow
 make sure that the company
which they are cooparating with
is pleased with the number of
products are sold

 minimum the decrease or errors

and maximize the benefit.