240716_MGMT602 – Lecture

MGMT602 - Week 1: Lecture Summary

Overview of Weekly Learning Outcomes

Provide a definition of entrepreneurship.

Explain the recognition, evaluation, and exploitation of opportunities.

Outline the importance of SMEs in the economy.

Explain the differences between SME management and entrepreneurship.

Learning Objectives

Define entrepreneurship.

Understand the origins and evolution of the term.

Explain the recognition, evaluation, and exploitation of opportunities.

Learn about how entrepreneurs identify and act on opportunities.

Outline the importance of SMEs in the economy.

Recognize the role of SMEs in economic growth and development.

Differentiate between SME management and entrepreneurship.

Understand the unique aspects and challenges of managing SMEs versus entrepreneurial ventures.

Course Content

Defining Entrepreneurship

Origins: Stemming from the French word entreprendre, meaning "to undertake."

Historical Usage: First used during the Industrial Revolution to describe individuals who created new business ventures by formulating ideas, assembling resources, and launching businesses.

Towards a Definition

Entrepreneurship: The process by which individuals identify new opportunities and convert them into marketable products or services.

Key Elements of Entrepreneurship

Individual (Entrepreneur): Perceives, pursues, and exploits opportunities. Influenced by active search, entrepreneurial alertness, prior knowledge, and social networks.

Market Opportunity: Situations where new products, services, or processes can be introduced profitably.

Adequate Resources: Financial, physical, human, technological, social, and organizational resources.

Business Organization: Entrepreneurship can occur in various forms, such as startups, corporate ventures, franchises, joint ventures, and business acquisitions.

Favorable Environment: Community and societal factors, including population density, cultural norms, and government policies.

The Process of New Venture Creation

Not all individuals have the potential to launch a business.

Many stages from potential to actual business formation, with varying success rates.

Role of Entrepreneurship in Economic Growth and Development

Creative Destruction (Schumpeter): The simultaneous constructive and destructive consequences of entrepreneurship.

Economic Impact: Entrepreneurs create new ventures, jobs, and wealth while displacing non-innovative enterprises.

Values, Politics, and Economic Institutions

Values: Readiness for change is essential for societal wealth.

Politics: Provide a framework for entrepreneurship.

Economic Institutions: Property rights, stock exchanges, and banks enable various types of economic enterprises.

Measuring Entrepreneurial Activity

Global Entrepreneurship Monitor (GEM): Measures start-up activity and survival rates.

Common Features of Entrepreneurship in the Asia-Pacific Region

Ethnic Entrepreneurs: Presence of ethnic Chinese and Indian entrepreneurs.

Family-Owned Firms: High proportion of family-owned businesses in Asia.

State Role: Promoting entrepreneurship and SMEs, creating conducive environments, and developing small business networks.

Sociocultural Features

Ethnic Chinese: Cultivate relationships to identify opportunities, guided by Confucian principles.

Ethnic Indians: Skilled and educated professionals using social networks to mobilize resources.

Emerging Trends

Liberalization, globalization, adoption of Western ideas, rules-based systems, and the emergence of an entrepreneurial society.

Flashcards for Key Concepts

Entrepreneurship

The process of identifying and converting new opportunities into marketable products or services.

Creative Destruction

The process of simultaneous emergence and disappearance of technologies, products, and firms due to innovation.

Key Elements of Entrepreneurship

Individual, market opportunity, adequate resources, business organization, and favorable environment.

Entrepreneurial Alertness

The ability to notice and act on potential opportunities.

Opportunity Cost

The cost of passing up one investment in favor of another.

Global Entrepreneurship Monitor (GEM)

Measures the level of start-up activity and survival rates in an economy.

Family-Owned Businesses in Asia

Higher proportion compared to Australia and New Zealand, often structured as pyramids.

Ethnic Entrepreneurship

Entrepreneurship arising from push or pull factors within ethnic communities.

Liberalization and Globalization

Trends promoting the adoption of Western ideas and rules-based systems, fostering an entrepreneurial society.

Real-Life Examples

Creative Destruction: The rise of digital photography displacing traditional film photography companies.

Ethnic Entrepreneurship: Ethnic Chinese entrepreneurs leveraging community networks to establish businesses in the Pacific Rim region.

Preparation for Next Week

Focus on understanding opportunities and entrepreneurs, particularly the Discovery and Creation theories.

Participate in workshops and team conversations in preparation for Assessment 1.

References

Ashwell, J. (2024). Entrepreneurship: Definition and Evolution. Flinders University.

Kinicki, A., Scott-Ladd, B., Perry, M., & Williams, B. (2018). Management: A Practical Introduction (2nd ed.). Sydney, NSW: McGraw-Hill.

240723_MGMT602 – lecture

MGMT602 - Week 2: Lecture Summary

Overview of Weekly Learning Outcomes

Explain the Discovery and Creation theories in relation to the identification of opportunities.

Understand the Characteristics/Behaviourist Management approach.

Be aware of the four risks related to SMEs management.

Learning Objectives

Explain entrepreneurial opportunities.

Understand how opportunities are formed and the roles of entrepreneurs in both Discovery and Creation perspectives.

Discuss the roles and characteristics of entrepreneurs.

Differentiate between the economic and behaviourist perspectives of entrepreneurs.

Identify the risks of a career in entrepreneurship.

Recognize financial, career, social, and health risks.

Understand relevant performance measures.

Learn about economic performance, social contribution, opportunity cost, liquidity premium, risk premium, and uncertainty premium.

Explain entrepreneurial behavior in a social context.

Analyze the impact of life stages, social networks, and ethnicity on entrepreneurial opportunities.

Course Content

Individuals and Opportunities

Entrepreneurial Opportunities:

Discovery Perspective: Entrepreneurs perceive opportunities arising from inefficiencies or competitive imperfections in the market, following a causal approach.

Creation Perspective: Opportunities are created through the actions and innovations of entrepreneurs, involving new stakeholders and goals.

The Decision to Exploit Entrepreneurial Opportunities

Decisions depend on individual characteristics and the nature of the opportunity.

Techniques to assist decision-making include risk-return analysis, real options, and affordable loss.

Profile of an Entrepreneur

Economic Perspective: Entrepreneurs are seen as risk bearers, arbitrageurs, innovators, and coordinators of scarce resources.

Behaviourist Approach: Focuses on characteristics such as the need for achievement, internal locus of control, and risk-taking propensity.

Risks in Entrepreneurship

Financial Risks: Involves investing personal money and potentially borrowing funds. Legal structures can help mitigate these risks.

Career Risks: Includes the potential impact on future employment, particularly for well-paid specialists or those close to retirement. Can be minimized by starting part-time.

Social Risks: Entrepreneurship can impact family and social life. Family involvement can help reduce conflicts.

Health Risks: The demands of entrepreneurship can lead to high stress and health problems. Entrepreneurs should ensure they can handle these demands.

Relevant Performance Measures

Economic Performance: Providing returns for enterprising efforts.

Social Contribution: The individual’s impact on society.

Performance Measures: Opportunity cost, liquidity premium, risk premium, and uncertainty premium.

Entrepreneurs in a Social Context

Stage of Life: Most entrepreneurs are male, with post-secondary education, aged between 25-44, and have an established career record.

Social Networks: Personal networks are crucial and should be dynamic. Networks vary in importance across cultures, being central to Eastern cultures.

Ethnicity: Ethnic entrepreneurship often arises from push factors (lack of opportunities) or pull factors (family role models, social status, resources).

Flashcards for Key Concepts

Discovery Perspective

Entrepreneurs perceive opportunities from market inefficiencies and competitive imperfections.

Creation Perspective

Opportunities are created through entrepreneurial actions, reactions, and innovations.

Risk-Return Analysis

A technique to evaluate the potential returns and associated risks of an entrepreneurial opportunity.

Economic Perspective of Entrepreneurs

Entrepreneurs as risk bearers, arbitrageurs, innovators, and coordinators of scarce resources.

Behaviourist Approach

Focuses on the need for achievement, internal locus of control, and risk-taking propensity.

Financial Risks

Involves investing personal money and potential borrowing.

Career Risks

Potential impact on future employment opportunities.

Social Risks

The effect of entrepreneurship on family and social life.

Health Risks

Physical and mental demands of entrepreneurship.

Opportunity Cost

The cost of passing up one investment in favor of another.

Liquidity Premium

Extra return for investments that are not easily converted to cash.

Risk Premium

Additional return for taking on higher risk.

Uncertainty Premium

Extra return for dealing with uncertain outcomes.

Social Networks

Personal and dynamic networks crucial for entrepreneurial success.

Ethnic Entrepreneurship

Entrepreneurship arising from push or pull factors within ethnic communities.

Real-Life Examples

Discovery Perspective: An entrepreneur identifies a market gap for eco-friendly products due to inefficiencies in current offerings.

Creation Perspective: An entrepreneur develops a new service by proactively innovating and involving new stakeholders.

Preparation for Next Week

Focus on planning, decision-making, negotiation, and problem-solving conflict.

Participate in workshops and team conversations in preparation for Assessment 1.

References

Ashwell, J. (2024). Opportunities and Entrepreneurs. Flinders University.

Kinicki, A., Scott-Ladd, B., Perry, M., & Williams, B. (2018). Management: A Practical Introduction (2nd ed.). Sydney, NSW: McGraw-Hill.

MGMT602 - Week 2: Lecture Summary

Overview of Weekly Learning Outcomes

Explain the Discovery and Creation theories in relation to the identification of opportunities.

Understand the Characteristics/Behaviourist Management approach.

Be aware of the four risks related to SMEs management.

Learning Objectives

Explain entrepreneurial opportunities.

Understand how opportunities are formed and the roles of entrepreneurs in both Discovery and Creation perspectives.

Discuss the roles and characteristics of entrepreneurs.

Differentiate between the economic and behaviourist perspectives of entrepreneurs.

Identify the risks of a career in entrepreneurship.

Recognize financial, career, social, and health risks.

Understand relevant performance measures.

Learn about economic performance, social contribution, opportunity cost, liquidity premium, risk premium, and uncertainty premium.

Explain entrepreneurial behavior in a social context.

Analyze the impact of life stages, social networks, and ethnicity on entrepreneurial opportunities.

Course Content

Individuals and Opportunities

Entrepreneurial Opportunities:

Discovery Perspective: Entrepreneurs perceive opportunities arising from inefficiencies or competitive imperfections in the market, following a causal approach.

Creation Perspective: Opportunities are created through the actions and innovations of entrepreneurs, involving new stakeholders and goals.

The Decision to Exploit Entrepreneurial Opportunities

Decisions depend on individual characteristics and the nature of the opportunity.

Techniques to assist decision-making include risk-return analysis, real options, and affordable loss.

Profile of an Entrepreneur

Economic Perspective: Entrepreneurs are seen as risk bearers, arbitrageurs, innovators, and coordinators of scarce resources.

Behaviourist Approach: Focuses on characteristics such as the need for achievement, internal locus of control, and risk-taking propensity.

Risks in Entrepreneurship

Financial Risks: Involves investing personal money and potentially borrowing funds. Legal structures can help mitigate these risks.

Career Risks: Includes the potential impact on future employment, particularly for well-paid specialists or those close to retirement. Can be minimized by starting part-time.

Social Risks: Entrepreneurship can impact family and social life. Family involvement can help reduce conflicts.

Health Risks: The demands of entrepreneurship can lead to high stress and health problems. Entrepreneurs should ensure they can handle these demands.

Relevant Performance Measures

Economic Performance: Providing returns for enterprising efforts.

Social Contribution: The individual’s impact on society.

Performance Measures: Opportunity cost, liquidity premium, risk premium, and uncertainty premium.

Entrepreneurs in a Social Context

Stage of Life: Most entrepreneurs are male, with post-secondary education, aged between 25-44, and have an established career record.

Social Networks: Personal networks are crucial and should be dynamic. Networks vary in importance across cultures, being central to Eastern cultures.

Ethnicity: Ethnic entrepreneurship often arises from push factors (lack of opportunities) or pull factors (family role models, social status, resources).

Flashcards for Key Concepts

Discovery Perspective

Entrepreneurs perceive opportunities from market inefficiencies and competitive imperfections.

Creation Perspective

Opportunities are created through entrepreneurial actions, reactions, and innovations.

Risk-Return Analysis

A technique to evaluate the potential returns and associated risks of an entrepreneurial opportunity.

Economic Perspective of Entrepreneurs

Entrepreneurs as risk bearers, arbitrageurs, innovators, and coordinators of scarce resources.

Behaviourist Approach

Focuses on the need for achievement, internal locus of control, and risk-taking propensity.

Financial Risks

Involves investing personal money and potential borrowing.

Career Risks

Potential impact on future employment opportunities.

Social Risks

The effect of entrepreneurship on family and social life.

Health Risks

Physical and mental demands of entrepreneurship.

Opportunity Cost

The cost of passing up one investment in favor of another.

Liquidity Premium

Extra return for investments that are not easily converted to cash.

Risk Premium

Additional return for taking on higher risk.

Uncertainty Premium

Extra return for dealing with uncertain outcomes.

Social Networks

Personal and dynamic networks crucial for entrepreneurial success.

Ethnic Entrepreneurship

Entrepreneurship arising from push or pull factors within ethnic communities.

Real-Life Examples

Discovery Perspective: An entrepreneur identifies a market gap for eco-friendly products due to inefficiencies in current offerings.

Creation Perspective: An entrepreneur develops a new service by proactively innovating and involving new stakeholders.

Preparation for Next Week

Focus on planning, decision-making, negotiation, and problem-solving conflict.

Participate in workshops and team conversations in preparation for Assessment 1.

References

Ashwell, J. (2024). Opportunities and Entrepreneurs. Flinders University.

Kinicki, A., Scott-Ladd, B., Perry, M., & Williams, B. (2018). Management: A Practical Introduction (2nd ed.). Sydney, NSW: McGraw-Hill.