Small Business Management 4660

Case Study – Upin & Ipin Creators of Upin & Ipin - Nizam Abdul Razak, Safwan Abdul Karim and Usamah Zaid - among founding members of Les' Copaque. Trio were Multimedia University graduates who started off as animators in another local animation, till in 2005, they met a former oil dealer, Haji Burhanuddin Radzi, and his wife, Hajjah Ainon Ariff, to set up Les' Copaque. 1-2

Case Study – Upin & Ipin…continued First series - produced specially for Ramadan in 2007 to instil the significance of the holiest month amongst its audience. According to Safwan, "We started this short four-minute animation series last year to test local market acceptance and to gauge how it would react to our story telling capabilities.“ 1-3

Nizam believed - international animation market may be interested in a particular Malaysian cultural aspect made of a relaxed, unhurried village life. He explained in a 2008 report, "Famous animation series, such as Japan’s Doraemon, are based on their respective local rather than international culture. We believe we can do the same with ours." 1-4 Upin & Ipin…concept

Wielded its influence in countries of the Malay archipelago - in Malaysia and Indonesia which share linguistic and cultural similarities. Its first season landed its first award, for Best Animation in KLIFF Upin & Ipin…influence

1. Definition of SMEs Central point of reference for SMEs Adopted a common definition of SMEs to facilitate identification in various sectors and subsectors. To formulate effective development policies, support programmes, provision of technical and financial assistance. 1-6

An enterprise is considered an SME in each of the respective sectors based on Annual Sales Turnover or Number of Full-Time Employees 1-7

Manufacturing, Manufacturing-Related Services and Agro-based industries Enterprises with full-time employees not exceeding 150 OR with annual sales turnover not exceeding RM25 million" 1-8

MicroSmallMedium Sales Turnover < RM 250,000 or < RM 10 million < RM 10 and < 25 million Full time employees < 55 and 5051 and 150 Category: Manufacturing, Manufacturing-Related Services and Agro-based Industries

Services, Primary Agriculture and ICT Enterprises with full-time employees not exceeding 50 OR with annual sales turnover not exceeding RM5 million 1-10

MicroSmallMedium Sales Turnover < RM 200,000 or < RM 200,000 and < RM 1 million < RM 1 million and < 5 million Full time employees < 5Between 5 and 19 Between 20 and 150 Category: Services, Primary Agriculture and ICT

2. Focus Small businesses are imitative in nature – doing what other businesses have done with a twist. Considered an entrepreneur if: Self-employed (e.g. accountant, graphic designer, lawyer) Founders Franchisee Business buyers Heirs Highly entrepreneurial businesses are characterized by novelty – products, services, and business models are INNOVATIVE. 1-12

3. Key Differences between Small Businesses and High-Growth Ventures 1-13

4. Small Business and Economy 1. In the US, small business - the engine of job creation, generating 75% of the 3.4 million new jobs Small businesses employ > half of all Americans 1-14

Malaysia? Great important to Malaysia economy. Recognized as the backbone of the economy and played a significant role in: Generating employment Nurturing a culture of entrepreneurship Opening up new business opportunities Supporting the large scale industries 1-15

With a small capital requirement – always considered as a platform for young and aspiring entrepreneurs to start their businesses. According to the National SME Development Council, 99.2 percent (518,996) of total business establishment in Malaysia are made up of SMEs. Employs about 5.6 million people Contributes 32% to Malaysian gross domestic product 19% of total exports of the nation. 1-16

Innovations - Creative Destruction the way that newly created goods, services, or companies can hurt existing competitors E.g CD players; however, in 2001, the iPod was released. E.g. The availability of online news has resulted in declining circulation of newspapers 1-17

5. Rewards Growth rewards what people get from facing and beating challenges Income rewards $$$ money made by owning one’s own business Flexibility rewards ability of business owners to structure life in the way that suits their needs 1-18

1-19 Figure 1.2

6. Myths about Small Businesses Not enough financing You can’t start a business during a recession To make profits, you need to make something If you fail, you can never try again Students don’t have the skills to start a business 1-20

Revision 1-21