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Entrepreneurship and Small Business


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Table of Contents

Preface xvii Acknowledgements xviii PART 1 The nature of small business and entrepreneurship 1 CHAPTER 1 Entrepreneurship: definition and evolution 3 Defining entrepreneurship 4 Entrepreneur profile: Olivia Lum, Hyflux 9 The role of entrepreneurship in economic growth and development 11 Common features of entrepreneurship in the Asia?Pacific region 16 CHAPTER 2 Opportunities and entrepreneurs 29 Individuals and opportunities 30 The discovery perspective 30 Understanding the profile of an entrepreneur 35 The risks of a career in entrepreneurship 39 Relevant performance measures 41 Entrepreneurs in a social context 43 CHAPTER 3 Creativity, innovation and entrepreneurship 51 Creativity 52 Innovation 59 Linking creativity, innovation and entrepreneurship 65 From creativity to entrepreneurship: screening opportunities 67 CHAPTER 4 Small business: definitions and characteristics 77 Defining small business 78 Characteristic features of a small business 82 The advantages and disadvantages of operating a small business 86 The economic significance of the small business sector 90 General importance 90 Entrepreneur or small business owner?manager? 95 CHAPTER 5 Community contexts of small business 105 Integrating entrepreneurship and society 106 Societal and philanthropic responsibility 107 Environmental responsibility 109 Social entrepreneurship 111 The nature and extent of family business 113 Issues unique to family business 115 PART 2 Getting into business 125 CHAPTER 6 Options for going into business 127 Issues to consider before going into business 128 Starting a new business 130 Purchasing an existing business 134 Entering a franchise system 140 Comparison of options 143 Procedural steps when starting a business venture 143 1. Undertake market research 144 2. Check the statutory requirements 144 3. Access suitable core resources 145 4. Critically evaluate options: buy, start-up or franchise? 145 5. Work out financial projections 145 6. Prepare a business plan 146 CHAPTER 7 Market research and strategy formulation 151 The role of market research 152 Constraints on research 154 Developing a strategy 161 Developing a business model 170 CHAPTER 8 Preparing a business plan 177 The concept of a business plan 178 Elements of a business plan 180 Different types of plans 186 Preparing the document: the business-planning process 189 CHAPTER 9 Legal issues 219 Legal structures 220 Intellectual property 230 Other legal issues 235 CHAPTER 10 Financing business ventures 243 Sources of debt finance 244 Sources of equity finance 247 Other useful categorisations of finance sources 254 Alternative sources of finance 259 CHAPTER 11 Accessing business advice and assistance 267 The business adviser 268 Forms of support for new and small firms 280 PART 3 Managing key functions 289 CHAPTER 12 Marketing 291 The concept of marketing 292 An overview of the marketing process 293 The marketing mix 295 CHAPTER 13 Operations management 317 Operations as a management process 318 Physical site factors 319 Production processes 323 Service design 323 Evaluating, improving and securing operational activities 330 Procedural systems and quality assurance 334 Risk management 335 CHAPTER 14 Human resource issues in new and small firms 343 Concept and functions of human resource management 344 HRM as a business strategy 345 Acquisition of staff 346 Maintenance 354 Termination 358 Governmental and regulatory requirements 359 Self-employment and human resources 361 Differences in employment practices between large and small firms 362 HRM variations across the Asia?Pacific region 363 CHAPTER 15 Financial information and management 369 The purpose of financial information 370 Differences between small and large firms 372 Regional variations in financial management 373 Types of financial information 374 Analysing financial data 382 Keeping records of financial information 385 PART 4 Selected topics 399 CHAPTER 16 ICT as a business tool 401 The role and importance of ICT for SMEs 403 Information systems for SMEs 405 Implementing an ICT strategy 409 Attracting visitors to a website 416 CHAPTER 17 Managing growth and transition 427 The dimensions of business growth 428 Theorising about small business growth 431 Growth predictors 434 Growth strategies and growth enablers 435 From the entrepreneur to the manager 440 Harvesting 443 CHAPTER 18 Corporate entrepreneurship 453 Dimensions of and rationale for corporate entrepreneurship 454 The new venture development process 460 The key steps in developing entrepreneurial spirit 465 Glossary 480 Index

About the Author

Michael Schaper (BA, MComm, PhD) is an adjunct professorat Curtin Business School, Curtin University of Technology, WesternAustralia, and is also deputy chairman (responsible for smallbusiness issues) of the Australian Competition and ConsumerCommission. Michael was previously dean of Murdoch Business School,head of the School of Business at Bond University, and held thefoundation professorial chair in Entrepreneurship and SmallBusiness at the University of Newcastle, Australia. He hasextensive experience in the area of small business through hisprevious roles, which have included appointments as Small BusinessCommissioner for the Australian Capital Territory, and as Presidentof the Small Enterprise Association of Australia and NewZealand. Before his academic career, Michael worked for several years as aprofessional small business adviser in Australia. In addition, heran his own business and was involved in numerous other start-upprojects. He holds a PhD and a Master of Commerce degree fromCurtin University of Technology, as well as a Bachelor of Arts fromthe University of Western Australia. Michael is the author orco-author of ten books, all in the field of business management,and numerous journal articles, newspaper columns and scholarlyresearch papers. Thierry Volery is a professor of Entrepreneurship and theDirector of the Swiss Institute for Entrepreneurship and SmallBusiness at the University of St Gallen, Switzerland. FromSeptember 1999 until 2002, he was a professor of Entrepreneurshipat EM Lyon Business School, France. He was previously a seniorlecturer in Entrepreneurship and International Business at CurtinUniversity of Technology in Perth, Western Australia. Thierry has been a visiting professor at the China EuropeInternational Business School (CEIBS) in Shanghai and at theUniversity of Western Australia Business School. He has served onseveral editorial boards, including the Journal of Small BusinessManagement, the International Small Business Journal, the Journalof Enterprising Culture and the International Journal ofEducational Management. He holds a doctorate in business economicsand social sciences from the University of Fribourg, Switzerland.His research interests include entrepreneurs behaviours andcompetencies, entrepreneurship education and training, andinnovation in small firms. Paull Weber is a senior lecturer in Entrepreneurship andSmall Business at Curtin University in Western Australia. He hailsfrom a banking background and began his academic career aftercompleting a research Masters in marketing in 2003 and then a PhDin entrepreneurship in 2007. He has taught management and marketingcourses in small business management, entrepreneurship, creativityand innovation, marketing communications and marketing principles.His research activities concentrate in the areas of matureentrepreneurship, lifestyle entrepreneurship, small businesssuccess metrics, growth perceptions and motives, ethics in smallbusiness and tourism. Paull has contributed several book chapters, journal articles andcase studies in the disciplines of entrepreneurship and tourism. Heis also the deputy chair of Business Foundations, a highlysuccessful and well-respected business incubator, advisory andtraining organisation that has assisted many thousands of smallbusiness owners over a 20-year period. Brian Gibson has over 30 years experience inuniversities, including positions as lecturer and senior lecturerat the University of Newcastle, Director of the Institute ofIndustrial Economics at the University of Newcastle, associateprofessor in Accounting at Murdoch University, and professor inAccounting at the University of New England. In addition to hiscurrent part-time roles in curriculum development and research withTOP Education, he is currently a conjoint professor in theNewcastle Business School at the University of Newcastle andDirector of International Accounting at Rangsit University inThailand. Prof. Gibson has served on several accrediting committeesincluding the Australian Society of CPAs National Accreditation SubCommittee and has recently been appointed to the TEQSA register ofexperts in accounting and business. He is also a past President anda Wilford White Fellow of the International Council for SmallBusiness (ICSB) and the immediate past President of the SmallEnterprise Association of Australia and New Zealand (SEAANZ). Hisprimary research achievements are in the area of the management(especially financial management, accounting and governance) ofsmall enterprises (privately-held firms). Research outcomes include28 refereed journal publications, 61 refereed conferencepresentations, 42 other publications (including papers in books)and presentations, and involvement in research projects withfunding of $225 000. He is currently consulting editor of SmallEnterprise Research (the journal of SEAANZ) and an editorial boardmember on several other international journals.

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