BDV4C1 Entrepreneur: Web-Based Venture 4
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4 BDV4C1 Entrepreneur: Web-Based Venture Unit 2 – Preparing Yourself Labour: Past & Present Role of labour in the economy has evolved Nomadic existence & sustenance Agricultural Age brought increased output requiring markets Early entrepreneurs included craftsmen and merchants As technology evolved, Industrial Age was born 4 Labour in the Industrial Age Role of labour increasingly linked to production processes – many employed by a few No longer craftspeople but labourers Organizations used new technology to increase production output Concept of Assets and Capital Capital investment required money to grow business Intangible assets Command and control model of managing labour. 4 Labour in the Industrial Age Jobs became increasingly routine Enterprising workers often discouraged (hard to ‘control’) Different relationship between employer and employee Reaction to control of many by few led to organized labour movement Labour movement and reforms led to rise of middle class of wage earners and consumers. 4 Globalization = Opportunities 4 Increased production required broader markets: Trading partners Colonies Other sources of labour and raw materials Communication and transportation advances spurred growth Impact of wars on production methods & technology Information Age: ‘The New Economy’ Information and knowledge have value With less capital required, entrepreneurs now have a less costly way to start a business Globalization & telecommunication has shifted labour supply offshore Rising middle class has resulted in higher domestic labour costs Global companies use cheaper foreign labour Job openings arise from new work or attrition 4 4 Labour Market Trends Opportunity for Opportunity for Trend Entrepreneurs Enterprising People Rapid Growth in Global Economy Imports and exports More jobs for people with international experience and/or a second language 4 Labour Market Trends Trend Increase in the number of small and medium sized businesses Opportunity for Opportunity for Entrepreneurs Enterprising People Political & economic climate is right Growing opportunities to share experiences & resources Greater opportunities for employees who can multitask and who have a fresh, positive attitude 4 Labour Market Trends Opportunity for Trend Opportunity for Entrepreneurs Enterprising People Rapid change and growth in technology sector Emerging tech sector yields opportunities in IT, medical, environmental and comm. technology Opportunities to learn and grow as new businesses develop and business practices change 4 Labour Market Trends Trend Increasing use of contract labour Opportunity for Opportunity for Entrepreneurs Enterprising People Entrepreneurs set up consulting practices with priofessionals who can work for a variety of clients Opportunity to become self-employed while working for a large organization on a contract-by-contract basis Employer Checklist Basic literacy and numeracy skills mandatory Effective communication skills Computer literate – software and hardware Post-secondary education desired Personal management skills: organization, time management Teamwork skills Open attitude to change 4 The Work-Life Balance Commitment to job competes with commitment to family Young family Eldercare Competitive advantage lies in attracting and keeping the right talent Motivators: Great company/brand – working with a winner Compensation & lifestyle/benefits – location and salary Great job – autonomy, advancement opportunities 4 Small Office - Home Office: ‘SOHO’ An important concept for entrepreneurs’ staffing needs Made possible by communication technology and information technology (IT) Less stress over travel time Easier to juggle family demands or personal situation with work Various forms of Alternative Work Arrangements the key 4 Alternative Work Arrangements Work at Home Description The employee is given equipment to use at home and connected electronically to employer’s offices Benefits Reduces travel time & costs Benefits environment Employer saves money on office costs 4 Alternative Work Arrangements Compressed Work Week Description The employee works fewer days per week but works longer hours each day Benefits Employee enjoys more time for family or personal goals Can use extra days for continuing education 4 Alternative Work Arrangements Flexible Work Schedules Description The employee works the full five day week, but selects start and end times – covers the core business hours Benefits Employee works when he/she feels most productive Parents can alternate dropoff and pick-up times for small children 4 Alternative Work Arrangements Job Share Arrangements Description Two employees share the same job and coordinate their schedules to ensure coverage Benefits Employees may opt to work partial weeks, alternate weeks, alternative months Allows employees to respond to needs for health care and/or eldercare 4 Alternative Work Arrangements Part Time Work Description Employee can work fewer hours per day or fewer full days each week but still be considered a permanent employee Benefits Offers flexibility to schedule personal commitments Receive same benefits as full-time workers, but prorated 4 Alternative Work Arrangements 4 Personal Leave Programs Description The employee is allowed to take paternity or elder care leaves Leaves for professional development or travel Job is not lost, but position may be changed Benefits Enhances organization’s skill base Reduces employee burnout Intellectual Capital in The Information Age A key asset to an organization Transferrable between organizations Gives a competitive advantage A characteristic of intrapreneurs Often compensated by advancement or raise Can be the seed for entrepreneurial growth May ‘level the playing field’ with larger competitors 4 The Changing Workplace 4 The New Economy is forcing changes on the traditional workplace: Effects of globalization Intense competition Application of new technologies Concerns for human rights Impact of e-commerce Greater focus on quality Changing needs of employees Increased customer demands and expectations Ideas and the Creative Edge Most ventures start with an idea that comes from: Innovation: offering something that no one has offered before. This may be the result of applying an invention to satisfy customer needs. The ‘Gap’ approach where a customer need is identified and the idea is developed to satisfy the need 5 Ways to find new ideas Newspapers identify discoveries and trends Magazines provide greater depth in specific areas, detailing trends, new products, competition. Trade Shows give entrepreneurs the opportunity to directly connect with industry leaders and associations, and can also be a showcase for small entrepreneurs to find capital and customers. 5 Ways to find new ideas Look for patterns in change or demographics; the more perceptive you are, the greater chance to beat the competition Research is critical in identifying if an idea is financially feasible: there must be enough potential customers to make it profitable! Help is available from Government agencies, Community organizations Business associations. 5 Invention vs Innovation An Invention is when something new is created An Innovation is a change to something that already exists; Innovation is a process of putting inventions to work Invention and Innovation are often the result of: 5 Accident – trying something you hadn;’t planned on Necessity – trying to make something to solve a problem Curiosity – wondering ‘What If….? Application – seeing what a new device can do, or do differently Connection – combining two seemingly different things Protecting Your Ideas 5 Patent is a grant made by Government to inventor to make, use and sell invention for a set period of time – a ‘reward’ for advancing knowledge and providing an opportunity to recover research costs before competition can catch up. Copyright protects literary works, music and software for an extended period of time. Trademarks are words, symbols and/or designs used to identify products and services Protecting Your Ideas Industrial Design Act protects the maker of a distinctive design – the proprietor gets exclusive rights for 10 years. Integrated Circuit Topography Act (ICT) gives electronic circuit designers 10 year protection and is reciprocated internationally. 5 Problem Solving Process 5 Identify the problem Idea finding – Generate lots of possible solutions Establish criteria to make sure which solutions can meet your needs Use criteria to evaluate the ideas/solutions Rank and select the best ideas (Test the top three on target market to help identify the best) Implement the selected idea Evaluate the effect of the selected idea and modify as required. Lateral Thinking: Looking from different perspectives 5 Edward De Bono’s ‘The Six Thinking Hats’ represents a way of examining a problem from different perspectives. The White Hat gathers data and facts – no emotions The Red Hat considers feelings and emotions The Green Hat proposes new ideas and alternatives The Black Hat challenges the others to ensure balance The Yellow Hat is logical but in a constructive way The Blue Hat coordinates and moderates the other five hats to keep everyone focused and make sure there is a balanced representation. Aspects of Creativity Know how you are personally interpreting information Consider that some problems may have more than one solution Change routines to experience different perspectives Talk to and listen to people Make lists and write down information and ideas Read something unfamiliar and try something new If you have a hard time ‘wearing all six hats’ when working on a problem, consider a teamwork approach where members wear different hats. Recognize that there IS a difference between the analytical left hemisphere and the creative right hemisphere. 5 Four ways to generate ideas Word Clustering is the free association of words and ideas – making a series of connected words representing connected concepts Mind Mapping involves using images/pictures to visualize the concepts instead of words Brainstorming results from writing every idea down without any barriers – evaluation comes after so ideas are uninhibited Visualization works for people by letting them close their eyes and imagine no restrictions on what can be imagined. 5 Trends Due to the time it takes to develop a product and bring it to market, entrepreneurs look for indications of future popularity – trends Entrepreneurs hope their anticipation of a future popularity or need will be an advantage over others who don’t recognize the trend Forecasting is a big business and trend indicators can be found in: Newspaper articles and analyses Financial experts use computer modelling to predict future prices Magazines often run articles on ‘futurism’ Opinion polls and federal demographic/census data predicts markets Consultants regularly write about their position on future growth. 5 Ideas and Opportunities ‘Convergence’ concept is when the time is right, the market is right the technology is right. Market-Pulled Entrepreneurship: Identify 6 a problem or perceive a need in the market and solve it. Product-Driven Entrepreneurship: Develop a product or service and find or create a market for it. Following Trends Trends are long-term business opportunities, if recognized! Long-term trends allow you to prepare to enter a growth market. Short-term trends are considered ‘fads’ and are usually too short to take advantage of. A forecast is a prediction about the future and a projection will indicate where the volume will likely be at a future point 6 6 Forecasting Trends …to be ready to enter the market here Sales $ & Demand Recognize the trend and plan here… Time Time-Series Forecast 6 Used to plot data from past and present and compare categories over same time frame to see relative relationship and growth/decline pattern. Current Period Previous Period Sales $ & Demand Time Graph: Stable Situation Fixed Costs Time 6 Graph: Linear Declining Trend Sales $ & Demand Time 6 Graph: Linear Increase Sales $ & Demand Time 6 Graph: Accelerating Growth Sales $ & Demand Time 6 Graph: Irregular Growth Sales $ & Demand Time 6 Graph: Cyclical Line Sales $ & Demand Time 6 6
