HM3041: Entrepreneurship and the SMEs Trimester 1, 2017 HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION SUBJECT OUTLINE HM3041: Entrepreneurship and the SMEs TRIMESTER 1 / 2017 Holmes Institute is committed to providing the highest quality education in a dynamic, student-centred learning environment. Holmes Institute fosters in its students rational thought, intellectual integrity and social responsibility. www.holmes.edu.au HM3041: Entrepreneurship and the SMEs Trimester 1, 2017 2 FACULTY OF HIGHER EDUCATION Holmes Institute Faculty of Higher Education offers business courses that combine discipline-based excellence with practical application. The faculty operates on campuses in Melbourne, Sydney, Brisbane and Hong Kong. The faculty offers a Bachelor of Business, a Bachelor of Professional Accounting, a Master of Professional Accounting, a Master of Business Administration and a Graduate Diploma in Business. Details about the members of the faculty can be found on the homepage of the Faculty of Higher Education at www.holmes.edu.au/undergraduate. HOLMES INSTITUTE UNDERGRADUATE PROGRAMS At Holmes Institute, the Bachelor of Business and the Bachelor of Professional Accounting offer domestic and international students the opportunity to study a set of contemporary subjects in the field of business. These subjects prepare students for the challenges in business environments of the 21st century. These programs emphasize the global and cross-cultural dimensions of business. Teaching utilizes a combination of delivery methods and includes critical analysis and case study methods. A combination of exams, case studies and company analysis are used in assessment. SUBJECT OVERVIEW Welcome from the Subject Coordinator: Welcome to HM 3041 Entrepreneurship and the SMEs.. We see this subject as a key to seeing and acting on opportunities for wealth creation. The fundamental rationale for this subject is that, by the time you complete this third year subject, you will know where to look for business opportunities and know what it takes to create wealth and manage innovation. SUBJECT RATIONALE & OBJECTIVES Entrenched and established as it may be today, the study of management traces its origins from Machiavelli in the 16th century and the relatively recent Henri Fayol and Fredrick Taylor of the early 20th century. The study of management only found its way into Australian university curricula in the post second world war period giving it an academic pedigree of just over fifty years. Much more recently, entrepreneurship was identified as an important subset of the management discipline namely the part associated with the drivers of economic wealth. Unlike the study of management over a time period sufficient to see the emergence of management theories, the serious study of entrepreneurship is still at the stage of analysis of actual cases (the practice) and the identification of theories (the principles) derived from those practical cases. HM3041: Entrepreneurship and the SMEs Trimester 1, 2017 3 Entrepreneurship is about the ‘new’ and this implies innovation and creativity but we shall see that innovation is pursued in a purposeful way and this debunks the myth of the high-risk-tolerant entrepreneur. Purposeful innovation and creativity often lead to a new venture or start-up family business. The term “Entrepreneurial Management” is used to describe the approach to the special managerial challenges which arise in managing such a new venture as distinct from managing an existing business. As the start-up grows to an SME, special challenges arise for the founders. The necessity for purposeful innovation is not confined to start-up new ventures. Existing businesses and even the public sector are challenged to be innovative: “Can the elephant learn how to dance?” “Intrapreneurship” is a term coined to describe the Entrepreneurial Management principles required to handle innovation in a large existing business. Even the public sector requires Entrepreneurial Management to handle the ever expanding portfolio of services they are expected to provide. J Timmons in The Entrepreneurial Mind defined entrepreneurship: “Entrepreneurship is a human, creative act that builds something of value from practically nothing. It is initiating, doing, achieving and building . . . rather than just watching, analysing and describing. It is the pursuit of opportunity regardless of the resources, or lack of resources, at hand. It requires a vision and the passion and commitment to lead others in the pursuit of that vision. It also requires a willingness to take calculated risks”. SUBJECT ADMINISTRATION Awards Duration Core/Elective Subject weight Campus BBus, BPA 1 semester Elective 3 credit points Melb Mode of delivery On campus Prerequisites Nil Workload Students are expected to attend all classes Delivery One three hour class each week. Contributions to the discussions at class form the first assessment item worth 15% of the subject Independent study 8 hrs CONTACT DETAILS Subject Coordinator Lecturer & Tutor 1 Tutor 2 Campus Melbourne Melbourne Melbourne Email [email protected] Phone Students please note: Holmes Institute provides each student with a Holmes webmail. Faculty and Administrative staff can only communicate with you using your Holmes Institute mail address. Emails from private and/or business email accounts cannot be used and may not be answered. CONSULTATION TIMES* * Times by arrangement HM3041: Entrepreneurship and the SMEs Trimester 1, 2017 4 STUDENT ASSESSMENT SUMMARY The assessment structure has been designed to give participants an opportunity to develop and demonstrate both individual ability as well as teamwork. A summary of the assessable items is provided in the table: Assessment Weight Due Date 1. Discussion of Issues in Innovation and Entrepreneurship 15% Each session starts will a series of questions for discussion. (Weeks 2-12) To enable you to prepare in advance for the discussion each week, various e-learning activities have been prescribed (URLs, clips, MOOCs TED talks). These are activities and you should allow up to two hours per week to prepare your personal notes for the discussion sessions held at the beginning of each lecture. If you are unable to attend a on particular week, you may submit your notes as a blog or as an email. This enables you to obtain marks even if you are unable to attend for the discussion 2. Preliminary Business Plan and Pitch 25% 10% Individually, students devise an idea for an innovative project by Week 5. Students then form into groups and between weeks 5-12 they select the best individual idea to develop in the form of a business plan and succinct marketing pitch Final Deadline At the final lecture of the trimester in Week 14 3. Final Exam 50% Examination Period HM3041: Entrepreneurship and the SMEs Trimester 1, 2017 5 SUBJECT LEARNING OUTCOMES MAPPED TO ASSESSMENT SCHEME The student learning outcomes (SLOs) which are expected of a student on successfully completion of this subject are outlined below. The SLOs are related to the Assessment Scheme in that the formative assessments of that scheme are designed to provide a learning opportunity to assist students in reaching the SLOs. The final examination in that scheme is a summative assessment which establishes whether a student has reached the required level of performance as specified in the SLOs. Learning outcomes for subject Assessment tasks Type * (see examples noted below this table) When assessed – year, session and week (for example, year 1, semester 1, week 1) Weighting (% of total marks for subject) Knowledge Students will differentiate innovation from invention. Students will be able to, appraise innovation as a purposive activity and learn where to look for innovative opportunities (sources of innovation). Through analysis of case studies of successful innovators, student will develop the ‘mind set’ of the innovator. Students will appreciate policies that have been used effectively in encouraging and supporting innovation. Students will appreciate the role of the entrepreneur in managing innovation. Assessment Task 1 Prescribed Internet activity preparing for discussion sessions and blogs. (Formative Assessment) Assessment Task 2 Devise an innovative project idea. (Formative Assessment) Assessment Task 3 End of study period examination (Summative Assessment) Year 3 Semester may vary Week 2-12 Semester may vary Week 2-5 Semester may vary Week 14 Task 1 – 15% Task 2 - 35% Task 3 – 50% Skills Students will develop the ‘skill sets’ of the innovator e.g. creativity stimulants such as brainstorming to enable them to develop an innovative project idea. Assessment Task 2 Groups of four are formed and, from the four individual project ideas, one is chosen for development. The ‘skill sets’ of the innovator are practiced in the group. (Formative Assessment) Year 3 Semester may vary Week 6-12 Task 2 - 35% HM3041: Entrepreneurship and the SMEs Trimester 1, 2017 6 Application of Knowledge and skills Student groups apply the skills and knowledge learned to develop their innovative idea. Students define their developed project in the format of a business plan which includes marketing and financial projections. Students develop a highly specialized marketing ‘pitch’ to present their project in a succinct and persuasive manner. Assessment Task 2 Students develop the innovative project to the point where it could be submitted to venture capitalists. Students apply their ‘mind set of innovation’ which they have developed through their knowledge of other successful innovators. Students apply their ‘skill set of innovation’ which they have developed through brainstorming, to the point where they can define a business plan to venture capitalists in the form of a business plan and present that plan in the form of a marketing ‘pitch’. (Formative Assessment) Year 3 Semester may vary Week 6-12 Task 2 - 35% ASSESSMENT POLICY To be eligible to pass this subject, students must complete all forms of assessment and demonstrate achievement of the learning outcomes. All assignments must be submitted electronically using a word processor, uploaded to Blackboard via SafeAssign. You must print and attach the full SafeAssign report with the Holmes Institute Cover Sheet to the printed assignment (hard copy). The assignment cover sheet must include the student/s name, number, subject code and subject name, subject lecturer’s name, assignment due date and time of submission. All hard copies must be placed in the Assignment Box in the Resource Centre during opening hours. Submission deadlines are strictly enforced and late submission incurs penalties of 5 (five) % of the assessment value per calendar day unless an extension and/or special consideration has been granted by the Subject Coordinator prior to the assessment deadline. Unless an extension and/or special consideration has been granted by the Subject Coordinator prior to the assessment deadline, no assessments are accepted after 14 calendar days of the due date or the end of the trimester for assessments due later in a trimester. Students are requested to familiarize themselves with the Holmes Institute Assessment Policy located on the Blackboard Student Subject: HE-General Study Information (HGEN_HE) > General Information > Policies and Procedures > Holmes Institute Student Assessment Policy v1.pdf. HM3041: Entrepreneurship and the SMEs Trimester 1, 2017 7 ASSESSMENT DETAILS 1. Tutorial Activities: Assessment criteria ASSESSMENT Weighting: 15% 1 Further details will be provided by your tutor. You will required to participate in activities in the tutorial or submit your discussion notes as a blog/e-mail TOTAL 15 2. Business Plan and Pitch: Assessment criteria Weighting: Length: 35% Maximum of 15 pages ASSESSMENT 2 Preliminary Business Plan (Written report): 25 Initially you will individually devise an idea for an innovative project from the lectures on “Sources of Innovative Opportunity” (Week 2-5) You will form into groups of four. Your group select the best of the individual ideas for development of it as a business model. All such business opportunities need to be defined by a business plan, for two reasons: 1. To prove to a potential financier that the business venture is financially viable. 2. To act as a blueprint for the management team in establishing the business and developing it for the next three years. Though not a full Business Plan (Industry Analysis, for instance in not required), your Preliminary Business Plan should include: an executive summary; a description of your proposed business and its product or service- also mention the source of your innovative opportunity; a list of key personnel and their roles; an operation and production plan; financial forecasts and identification of need for venture capital a timeline of how the business will be operated; and any risks to the business as well as ways to overcome them. Your preliminary business plan is a project to be developed by your group over the whole trimester. Students will complete sections of the business plan one-by-one over the course of the trimester guided by the structure and content advised in Chapters 9, 10 and 11 of Kuratko’s book. While some time is put aside during the class to work on the plan and monitor your group’s progress on the plan, it is expected that most of the project will be developed outside the classroom. A well-written preliminary business plan should be no more than 15 pages (excluding the appendices and the two-page executive summary). Pitch (Oral Presentation): Complementing your Preliminary Business Plan is your “Pitch”. Entrepreneurs are sometimes asked to do a “pitch” to venture capitalists or other funders. A pitch is a short—three to five minute—presentation designed to elicit further interest from potential funding sources. As such, it puts a premium on salesmanship and “hitting the high points” of the entrepreneurial idea. If the pitch is successful, the recipient should want to grant you more time to hear more. You will be asked to deliver your pitch at the last formal class of the trimester. The criteria that will be used to assess your pitch are: Impact, particularly opening impact Clarity and overall impression of excellence Management of time Closure 10 3 3 2 2 TOTAL 35 HM3041: Entrepreneurship and the SMEs Trimester 1, 2017 8 3. Final Examination Assessment criteria Weighting: 50% ASSESSMENT 3 Length: 2 hours and 10 minutes The final examination will be drawn from the material presented in lectures. In preparation you should find the discussion issues from each of our formal sessions useful in assessing your own preparedness for the examination. More detail will be provided during the trimester. The exam is scheduled during the regular examination period. TOTAL 50 STANDARD GRADING SYSTEM AND DISTRIBUTION GRADE LETTER RANGE High Distinction HD 80% and above Distinction D 70 – 79% Credit CR 60 – 69% Pass P 50 – 59% Fail NN 0-45% (did not meet the standard required according to the learning outcomes in the Subject Guide ) Faculty Pass* FP 46 – 49% (awarded by Board of Examiners) Supplementary Exam Granted (a temporary grade) NS Supplementary examination granted Deferred Exam (a temporary grade) ND Officially Deferred examination Fail NA Student did not submit any work according to the schedule in the Subject Guide Result Withheld RW Additional assessment and/or work required Result Withheld WH Outstanding fees or non-return of Holmes Institute materials * This grade is sometimes referred to as a conceded pass at other institutions Explanation of Letter Grade HD Outstanding work which exhibits sophisticated understanding and critical synthesis, analysis and evaluation of the subject matter. While the work utilizes opinions of others, judgements about the value of the subject matter are made and drawn together in an organized whole. Gaps in the subject matter might also be identified and the implications discussed. D Substantial work of high quality, which demonstrates a clear understanding of the subject matter, in which the relationship between the constituent elements are identified clearly and discussed with some level of critical analysis. The work also applies abstract ideas in concrete situations. CR Sound and competent work, which demonstrates a reasonable but not complete grasp of the subject matter. The work utilizes recall and paraphrases the work of others concerning the subject matter. Some basic level of critical analysis is evident. Originality in the work is rarely evident. HM3041: Entrepreneurship and the SMEs Trimester 1, 2017 9 P Work that demonstrates a satisfactory engagement with the subject matter such that the student is said to have a general understanding of the field. Provides an adequate basis for further study. NN Did not meet the learning objective of the subject VIEWING STUDENT GRADES Results including the final grade can be viewed via the Grade Centre on Blackboard. Results for all assessments are published within two weeks of the due date of the assessment and the final examination. Students who wish to appeal their mark for a specific assessment are advised to follow the procedures outlined at www.holmes.edu.au /undergraduate/appeals. PLAGIARISM AND ACADEMIC MISCONDUCT Holmes Institute view any forms of academic misconduct as most serious offences. Academic misconduct in any form during an examination is not tolerated and will be dealt with according to the policies and procedures set out in the Holmes Institute Student Handbook (located on Blackboard in the Student General information Subject: HE-General Study Information (HGEN_HE) > General Information > Student Handbook 2010 v.3.pdf). Plagiarism occurs when one uses another person’s ideas or manner of expressing them and passes them off as one’s own work by failing to give appropriate acknowledgement (that is, referencing the source). Any instances of plagiarism will be dealt with promptly). It is important that student reference their work appropriately. The Faculty of Higher Education at Holmes Institute uses the APA (American Psychological Association) style of referencing. A detailed guide to referencing can be found in the Student Handbook. It expected that you will be familiar with the APA style of referencing. USE OF BLACKBOARD Holmes Institute uses Blackboard as its online teaching platform and all students enrolled have access to Blackboard to view and download their lecture material, grades, important announcements on their subjects and discussion rooms for selected subjects. Please note that it is the student’s responsibility to check Blackboard on a regular basis. It is expected that students will have viewed lecture materials and additional readings before class. All students are advised to familiarize themselves with the use of Blackboard. Guides to Blackboard are available in the Resource Centre on each campus. Should you have difficulties accessing and/or using Blackboard, please contact your lecturer or the Holmes Institute Blackboard Helpdesk on: [email protected]. USE OF RESOURCE CENTER AND PROQUEST For most subjects, students are expected to engage in additional research. Textbooks and teaching materials available in the Resource Centre will be of use here. In addition, current students have access to a range of electronic academic journals via Proquest, which is accessible once you log into Blackboard. Should you require any assistance with the use of Proquest and/or online research, please contact your lecturer and/or the Resource Centre staff on your campus. HM3041: Entrepreneurship and the SMEs Trimester 1, 2017 10 STUDY SKILLS & ACADEMIC SUPPORT Students who have difficulties with their studies and/or specific forms of assessment should visit online Study Skills on www.holmes.edu.au/undergraduate/studyskills. Holmes Institute also offers regular Academic Support, which is free for any student enrolled. See details on http://www.holmes.edu.au/undergraduate/Information. SUBJECT RESOURCES Prescribed Textbook Peter Drucker proposed a framework for the disciplined search for innovative opportunities and that framework forms the core of this subject. That framework was originally published as: Drucker, Peter F. (1985) Innovation and Entrepreneurship: Practice and Principles, Harper & Row. Drucker’s framework has been republished countless times, for instance: Drucker, Peter F. (2002) The Discipline of Innovation, in The Innovative Enterprise (Special Issue) Harvard Business Review, Aug 2002 ….and more recently summarised in Drucker, Peter F. The Discipline of Innovation, pp. 143-156 in “On Innovation”, HBR’s 10 Must Reads, (2013) Recommended Text [Only if you are not able to obtain any of the Drucker references listed above, then this is a suitable alternative; Also it is a useful reference book] Kirby, David. A (2003) Entrepreneurship. London, McGraw-Hill. HolmesOnline Lecture Notes/slides: These will be ready for downloading every Friday folder under >Lectures & Tutorials for the following week’s lectures. Readings/Tutorial Activities: These will be available in the Weekly folder under > Lectures & Tutorials on HolmesOnline. It is the student’s responsibility to check HolmesOnline on a regular basis. It is advised that students view lecture materials and readings before coming to class. HM3041: Entrepreneurship and the SMEs Trimester 1, 2017 11 LECTURE SCHEDULE Lecture Number TOPICS SCHEDULED TEXT CHAPTERS Kirby Drucker 1 Discussion Topics Innovation: is it just Inspiration? Entrepreneurship: is it just good luck? Post-war, where did 35million US jobs come from (+50%)? 1, 2 Preface and Introduction Lecture Course Overview The Entrepreneurial Economy 2 Discussion Topics Is all small business entrepreneurial? What makes something entrepreneurial? Is entrepreneurship risky? What is entrepreneurship and what is innovation? What is the relationship between innovation and change? 5, 6 1, 2 Lecture LESSONS FROM THE FIELD in the Practice of Innovation Purposeful Innovation and Seven Sources for Innovative Opportunity 3 Discussion Topics Is innovation technical or is it socio-economic? As steel demand rose, profits dropped unexpectedly, Why? Faster ships unexpectedly didn’t solve port congestion, Why? As take-up of phones grew, what process needed replacing? 6 3, 4 and 5 Lecture 1. The Unexpected 2. Incongruities 3. Process Need 4 Discussion Topics Which is more appropriate in today’s car industry: the National Car Concept or the World Car Concept? Why did VW’s Europe – US – Sth America strategy fail? Name three major demographic changes in the last 50yrs Which country is the source of the world’s largest migration demographic change 6 6, 7 Lecture 4. Industry and Market Structures 5. Demographics 5 Discussion Topics People ‘see’ gyms differently from the way they once did; but are they just a short-term fad or a business opportunity? Australians’ view of wine-bars has changed over the years. How? Is this a business opportunity? What is the typical lead time for new knowledge to become applicable technology and accepted in the market? 6 8, 9 and 10 Lecture 6. Changes in Perception 7. New Knowledge and the Bright Idea HM3041: Entrepreneurship and the SMEs Trimester 1, 2017 12 THREE HOUR BLOCKS TOPICS SCHEDULED TEXT CHAPTERS Kirby Drucker 6 Discussion Topics Do you know the English saying: “The best thing since sliced bread!” Research sliced bread and you will find: • The innovator did not invent bread, and • The innovator did not invent slicers And yet, sliced-bread is a bench-mark in innovation (obviously not based on 7. New Knowledge). What was the crucial element in this successful innovation? Referring to the definition of Innovation, what makes sliced-bread a successful innovation? Because innovation is not just conceptual, and is also perceptual - what does that imply for the innovator? Should innovators aim at dominance/leadership in their field? 6 11 Lecture Principles of Innovation 7 Discussion Topics “Big Businesses don’t innovate; It is hard to teach an elephant how to dance” Do you agree? In what situations is entrepreneurship important? i. In a new venture? ii. In an existing business? iii. In a public service institution? 5 1, 2 Lecture LESSONS FROM THE FIELD in the Practice of Entrepreneurship The Nature, Characteristics and Behaviour of the Entrepreneur 8 Discussion Topics A New Venture, poses special problems; What are they? 12, 15 Lecture Entrepreneurial Management The New Venture 9 Discussion Topics What does the following saying mean about new ventures?: “Rags to Riches and back to Rags in Three Generations” 10 11 Lecture New venture planning and creation Retaining entrepreneurship as the venture grows 10 Discussion Topics What organisation structure did IBM choose when it wanted to innovate a Personal Computer within twelve months? 12 13 Lecture The Entrepreneurial Business Intrapreneurship: Developing entrepreneurship in large organisations 11 Discussion Topics While Entrepreneurial Management is necessary in all of the three situations discussed in week 7, it is more difficult in the third of these - the Public Service. Why? (3 reasons) Notwithstanding these difficulties, do you know of some successful Entrepreneurial Management in the Public Service? 14 Lecture Entrepreneurship in a Service Institution 12 Whole of Session Presentations: Your Project ‘Pitch’ HM3041: Entrepreneurship and the SMEs Trimester 1, 2017 13 STUDENT ASSISTANCE Studying in higher education presents many experiences and challenges. These might involve academic, personal and/or professional issues. At Holmes Institute, we have a range of people who can help you with various challenges. The following table identifies contact points should you require any support. SUPPORT REQUIRED WHO TO CONTACT Information for Current Students Holmes Institute Student Handbook: Academic Probation / Mentoring Academic Mentors, Associate Dean Accommodation Holmes Institute Home Stay Computers, Blackboard, Email IT Help Desk Disability Needs Holmes Institute Campus Directors Employment and Careers Career Development Team Enrolment Higher Education Coordinator Exams Higher Education Coordinator Financial Issues Holmes Institute Campus Directors Personal Issues National Higher Education Program Manager, Mentoring Team Proquest Database Librarian on each Campus Study Skills Holmes Institute Academic Support & Study Skills Team Visa Issues, COEs etc. Higher Education Coordinator This subject outline was prepared by the Course Development Team for the Postgraduate Programs, Faculty of Higher Education, Holmes Institute. It was correct at the time of publication. Change to the Subject Outline may occur at any time. However, the Faculty of Higher Education endeavours to inform the students accordingly. This publication is copyright. Apart from any fair dealing for the purpose of private study, research, criticism, or review as permitted under the Copyright Act, no part may be reproduced by any process or placed in computer memory without written permission. Enquires should be made to Holmes Institute Faculty of Higher Education. © Copyright 2016