Chapter 22 Contemporary Issues

Learning Outcomes On completion of this chapter you will be able to: Describe the following forms of emerging entrepreneurship –Family business entrepreneur –Information entrepreneurship –Diva entrepreneurship –Technology entrepreneurship –Franchising entrepreneurship Discuss the skills and organisation needed to start a specific form of entrepreneurship Identify the advantages and disadvantages of each of these types of entrepreneurships

Types of entrepreneurs Family Business Where one or more members of a family have a significant ownership interest and major commitments to the success of the business”. Skills and Organisations needed to start: Solid Groundwork. Discussion about job assignments that match personal interests and skills with the tasks of the business. Other skills needed - communication, conflict resolution, family systems, finance, legal, accounting, insurance, investing, leadership development, management development, and strategic planning The right legal business organization form.

Family business: Advantages & Disadvantages AdvantagesDisadvantages Family participates as managersPersonal interest conflicts with what and/or owners of the business.is best for the business. One person, financial balancing Other members might insist in done automatically. funds being distributed even when the business cant afford it. The development of family business and succession are affected by the size of the family, the volume of business, and the family members' managerial ability, technical ability and commitment.

Information entrepreneurs Definition: An entrepreneur who uses the opportunities on the Internet to market and promote information products. Skills and Organisations needed to start: - Production skills such as writing, graphic design, and videography. - Must be able to recognize and avoid the common pitfalls in marketing the information product. - Goods marketing skills are needed to position the product correctly in the market.

Information entrepreneurs: Advantages & Disadvantages Advantages: - Cost to begin and establish the business model can be quite modest. - Can be done part-time. Disadvantages: - There is an abundance of information available on-line for free. - There are many information products of questionable value. - This is a quickly changing model and the entrepreneur must keep up-to-date on new marketing opportunities.

Diva entrepreneur Diva entrepreneur has a Traditional definition and a Modern interpretation. Traditionally definition: A “diva” is an opera singer and a diva entrepreneur is a woman of music who transitioned from a music career into an entrepreneurial career. Modern definition: A diva is a distinguished female entrepreneur who organizes and manages family, enterprise and environment with heart, passion and style”

Diva entrepreneur Skills and Organization Needed To Start: - To approach entrepreneurship with verve, energy, and commitment -To learn sound business principles and to put them into practice. -Other skills needed include a business plan, some finances, computer literacy, and social skills. Advantages - The personal verve and drive of the woman is the most valuable asset of the business. - A growing number of online networking groups available. Disadvantages - Ultimately the diva will need to become as savvy about business.

Technology entrepreneur Are the innovators who have been developing new forms of business marketing and transactions through on-line global communication. Skills and Organization Needed To Start: -The ability to learn all of the current techniques of on-line marketing. - Curiosity, ability to learn, computer literacy, and a good understanding of marketing principles are important personal assets. - Basic video skills.

Technology entrepreneur Advantages - Marketing tools are free. Disadvantages -Most purchases are still made in brick-and-mortar stores. -Competition is now global.

Franchise entrepreneur A franchise is an agreement or license entered into by the franchisor and the franchisee. A franchise gives a person or several people (the franchisee) the rights to market a product or service using the trademark of another business (the franchisor) as well as using the operating methods of the franchisor. Skills and Organization Needed To Start: –Franchisee must thoroughly research available franchises. –Franchisee must have the means or a way to access the funds to make the investment to secure the franchise. –Must have a passion for the product and the drive to build a successful business.

Franchise entrepreneur: Advantages & Disadvantages Advantages -Established name recognition. - The franchisor helps in the corporate marketing. - Franchisor’s bulk purchasing power helps the franchisee to buy equipment and products to run the business. - Franchisor provides the necessary training to the small business staff. Disadvantages - Franchisee loses creative control. - Franchisees often find difficulty in negotiating terms and condition that are favorable to the franchisee.

Glossary Family Business Information Technology Diva entrepreneurship Technology Entrepreneur Franchising Entrepreneur