SMALL AND MEDIUM ENTERPRISE MANAGEMENT APT 3063 PREPARED BY : rosliza.cr@umk.edu.my

SMALL AND MEDIUM ENTERPRISEMANAGEMENT

APT 3063

PREPARED BY : rosliza.cr@umk.edu.my

SME Overview, Management, Entrepreneurship and Ownership

CHAPTER 1 & 2

Distinguish between an entrepreneur and a

small business owner

Characteristics of entrepreneurial opportunities

Motivators or rewards of entrepreneurial careers

5 potential competitive advantages of small

entrepreneurial companies as compared

to large firms

Factors related to readiness for

entrepreneurship and getting started in an

entrepreneurial career

This Chapter Will Help You:

These groupings are decided based on EITHER

I. Number of EmployeesBased on the number of full-time employees

II. Annual Sales TurnoverBased on annual sales turnover

DEFINITION SMALL AND MEDIUM ENTERPRISES (SME)

Micro Small

Medium

Primary Agriculture Manufacturing (including Agro-Based) & MRS*

Services Sector (including ICT**)

MICRO Less than 5 employees Less than 5 employees Less than 5

employees

SMALL Between 5 & 19 employees

Between 5 & 50 employees

Between 5 & 19 employees

MEDIUM Between 20 & 50 employees

Between 51 & 150 employees

Between 20 & 50 employees

I. Number of Employees

Based on the number of full-time employees :

*MRS : Manufacturing-Related Services** ICT : Information and Communications Technology

Primary Agriculture

Manufacturing (including Agro-Based) & MRS*

Services Sector (including ICT**)

MICRO Less than RM200,000

Less than RM250,000

Less than RM200,000

SMALLBetween

RM200,000 & less than RM1 million

Between RM250,000 & less than RM10 million

Between RM200,000 & less than RM1 million

MEDIUMBetween RM1 million & RM5

million

Between RM10 million & RM25

million

Between RM1 million & RM5

million

:

II. Annual Sales Turnover

Based on annual sales turnover

WHAT IS A SMALL

BUSINESS?

WHAT IS A SMALL BUSINESS?

WHO ARE ENTREPRENEURS

?

DIFFERENCES BETWEEN

BUSINESSMAN & ENTREPRENEUR??

DIFFERENCES BETWEEN BUSINESSMAN & ENTREPRENEUR

BUSINESSMAN

•Own an enterprise or venture•Usually a profit oriented•Usually plays safe•May be purchased, donated or inherited•Generally traditional•Works for the Company•Generally hire people to contribute profit

ENTREPRENEUR

•Own an enterprise or venture•Customer oriented•Bold and ambitious•Creates his own idea and realize it as a business•An innovator•The Company works for him•Hire people to make their lives better

Who is this man?

WALLY AMOS• Entrepreneur and founder of Famous Amos

Chocolate Chip Cookies. • Born on July 1, 1936, in Tallahassee, Florida.• An Air Force veteran who worked as a talent

agent with the William Morris Agency.

“The "Famous Amos" cookie tale began when Wally Amos began using his bite-sized cookies as calling cards and thank-you gifts. As Wally made his rounds in his entertainment business, more and more of his friends and clients asked for another bag of Wally Amos Cookies. Finally, with the backing of several Hollywood personalities, Wally launched The Famous Amos Cookies Company in 1975.”

Characteristics of Entrepreneurial Opportunities

Exist for those who can produce enough product/service desired by customers.

An economically attractive and timely opportunity that creates value for interested buyers/ end users.

Exist for those who have interest, resources & capabilities required to succeed.

** Bootstrapping: you can control some resources without having to own them.

REWARDS OF ENTREPRENEURSHIP

• Financial gain proportionate to personal achievement

Profit

• Enjoyment satisfying way of life

Personal satisfaction

• Escape from an undesirable situation

Freedom

VARIETIES OF ENTREPRENEURSHIP

Founder entrepreneurs VS other business owner

and franchisees

High potential ventures (gazelle) Vs Attractive

Small Firm and microbusinesses

Artisan Vs Opportunistic entrepreneurs Women entrepreneurs

Entrepreneurial teams

The Competitive Edge of Entrepreneurs

Customer focus

Quality performan

ce

Integrity and responsibility

Innovation and

globalization

Special niche

Factors related to readiness for entrepreneurship

Age and entrepreneurial

opportunity

Characteristics of successful

entrepreneurs