Entrepreneurship in Asia

Entrepreneurship in asia

traditional career path : stability and assure revenue stream with low risk, delegation and managing, follow upper management.

entrepreneur : risk taking, get rich, DIY, and actively making decision.

entrepreneur operates in unstructured environment since the business model and idea are new.

Rich : get big fast, cash out and become rich. hiring high cost employee and scaling up.

King : control our own destiny and not fail. hiring employees who are interested in long term, might not scaling because risk[pic 1]

Idea : a content of cognition

Successful entrepreneurship requires the ability to balance technical and market knowledge

where the difference between what customer will to pay and what will cost is the greatest, the more unique the product the more is the pay-off.

Individual traits : Stable characteristics” possessed by individuals such as
Need for achievement
Personal preferences to be entrepreneurs
Risk bearing?
Tolerance for ambiguity?

A lot depends on the ability to evaluate new information

Absorptive capacity : ability to evaluate, assimilate and exploit knowledge.It allows you to see some opportunities more clearly but may blur others

Weak tie between two people : when the people they know are not connected.

Weak tie enhance diversity, complementary to internal expertise which are indispensable for evaluating ideas developed externally.

Creativity : the ability recombine existing idea and apply to the context but an essential element here is also the previous knowledge and skills, which provide the basis for making novel associations and linkages with new information.

The idea is to identify a market that is structured and stable but still growing.

market choosing :

large and growing, identify market niche, no major brand loyalties, potential for product expansion and being a market leader.

positive cash flow, upfront capital need to be low, R&D initial and ongoing low, high gross margin.

it covers opportunity cost, competitive advantage with incumbent. the venture should be high strategic value to a potential acquirer.

Decision making - Entry strategy

How do you start-up : only if the expected net profit over the time > investment

need a business plan to estimate revenue and cost