The Entrepreneurial Life - Introduction To Business - ثاني ثانوي

PLANNING A CAREER IN ... CONSULTING 20 When businesses face unique problems or undertake major changes, they often turn to consultants for advice and help. Consultants are not long- term employees of a company. They are hired to complete a specific task or to focus on an important challenge facing the business, such as advising on sustainability or updating the client database. Consultants may either work independently or be part of a large consulting business that employs many specialists. siness Management & Administration Related Job Titles • Business Analyst • Management Consultant • Performance Consultant Quality Control Consultant • Security Consultant • Training Consultant Consultants provide a level of expertise to a business that may not be present among its employees and that would be difficult to develop quickly enough to solve a current problem. Consultants also may be more objective about the business than people who are working there. The primary work of consultants is to conduct research and complete other types of analysis that help businesses address important challenges they are facing. Consultants often prepare written reports and plans, provide advice to decision makers, and may even offer help in reorganizing the company and redirecting its efforts. Analyze Career Opportunities in... CONSULTING Use library and Internet resources to learn more about careers in consulting. Choose one of the job titles listed in the box and answer the following questions. 1. Identify the minimum educational requirements for the job. Explain other training or education that might be needed for advancement. 2. Is this a career that interests you? What can you do now to help prepare yourself for this career? What it's like to work as a... Consultant Rasheed works as a small business consultant for a bank in Abha. The bank is committed to strengthening its services to small businesses. The bank employs a 10-person team to support its small business customers. Rasheed earned a degree in accounting, worked five years for a major accounting business, and then operated his own accounting service for five years. The bank hired him as a small business consultant because of his accounting expertise and reputation in the community. He decided the consulting opportunity would be an interesting challenge. This morning, Rasheed is meeting with Safiya, who is planning to open a home furnishings store. Safiya has submitted a business plan, but the financial plan is incomplete. Rasheed is looking forward to helping Safiya gather information and develop a complete picture of the financial needs of her business. What about you? How do you believe Rasheed's work as a consultant is similar to and different from the work he did as the owner of a small accounting business? وزارة التعليم Ministry of Education 2024-1446 Entrepreneurship and Small Business Management | 207

7.1 The Entrepreneurial Life Link to digital lesson www.ien.edu.sa Learning Outcomes Once you have completed this lesson, you should be able to: 7.1.1 Explain what entrepreneurship is. 7.1.2 Identify characteristics of successful entrepreneurs. 7.1.3 List types of entrepreneurs and describe how they are categorized. Key Terms Entrepreneurship Entrepreneur Social Entrepreneurship Intrapreneur Focus on REAL LIFE Maha has been working as a computer technician at a large company in Jeddah for the past three years. Maha enjoys her work because she has always been interested in technology. Since school, she has taken coding classes and has completed a number of certification courses in coding. In her spare time, she has provided technological advice for her friends and members of the company where she works. Maha is seriously thinking about using her coding skills to establish an app development start-up. She wants to create apps that provide solutions to problems for people and businesses. She already has a number of contacts to help her get underway. Maha has been able to save more than SAR 50,000 in her bank account and has no debts. Maha decides to go forward with the plan, just as many other entrepreneurs do each year. Those that become new business owners are willing to contribute a great deal of time and energy, and risk personal savings, for their venture. They hold the hope of a successful business and a reasonable profit. LO 7.1.1 WHAT IS ENTREPRENEURSHIP? There is no single definition of entrepreneurship. Some focus on the willingness of a person (the entrepreneur) to create value while assuming both significant risks and the rewards for his or her efforts in a new or existing business venture. Others target innovations created by entrepreneurs, while still others focus on the personality traits of entrepreneurs. An alternative working definition of entrepreneurship focuses on the process: Entrepreneurship is the process of starting, organizing, managing, and assuming the responsibility for a business. It involves a process that begins with identifying an opportunity and ends with exiting the business, or what is often called "harvesting the value of the company." Following this process-based approach, entrepreneurship entails starting, organizing, managing, and assuming the responsibility for a business. Thousands of young people have creative ideas and turn them into businesses each year. Not all ideas lead to successful businesses, but each provides evidence of the opportunities available. 208 Chapter 7 | Entrepreneurship and Small Business Management وزارة التعليم Ministry of Education 2024-1446 GE44.PATHWAYS.G02.ITB.SB.PP1.indb 208 08/05/2024 09:14

From beginning to end, entrepreneurship involves four stages, which are reflected in Figure 7-1: 1. Identifying an attractive opportunity. An opportunity is more than merely having a good idea. Real opportunities should be market driven, offering customers a product or service that is so appealing that they are willing to spend their money to buy it. 2. Acquiring critical resources needed for growing the business. In a small business, there is no more important issue than efficiently managing resources. Learning how to think about resources may mean the difference between success and failure. When entrepreneurs think about resources, they should not just think about money. It is important to also understand the following: ● Entrepreneurs find ways to do more with less when it comes to resources. Critical resources include much more than money, such as the right management team, the right partners, and access to the right assets, such as inventory and equipment. 3. Executing the plan. The entrepreneur must now scale the business to make it economically attractive. You will need to know how the firm will make money, support growth, and create barriers of entry to keep the competition away. 4. Harvesting firm value. At some point, an entrepreneur must think about exiting the business to capture the value that he or she has created over the years. This can happen by passing the business on to the next generation in the family, by selling the company to other investors, or in a few rare instances, by issuing the company's stock to the public. Identifying the Opportunity Aquiring Critical Resources Executing the Plan Harvesting Firm Value Does every entrepreneur's journey follow this four-stage process? FIGURE 7-1 The Entrepreneurial Process Life-Span Plan Can you think of a potentially popular service or product that is either not being offered or that you could offer more efficiently than others? Do you have a special talent that could become the starting point for a business? If so, you have the basis for a new business enterprise. Small business ownership can provide a good opportunity for practicing entrepreneurship. CHECKPOINT What are the four stages of entrepreneurship? وزارة التعليم Ministry of Education 2024-1446 7.1 The Entrepreneurial Life | 209

Life-Span Plan What personal characteristics do you have that could help you become a successful entrepreneur? What characteristics would you need to develop to be a successful entrepreneur? Describe how these characteristics may affect the life-span goals you set for your future. E Do you have ideas or skills that you could use to start a small business? C= LO 7.1.2 CHARACTERISTICS OF ENTREPRENEURS An entrepreneur is someone who takes a risk by starting a business to try to earn a profit. Some key factors in starting your own business are having a real desire to be your own boss and developing a good initial plan. Possessing special skills and abilities and developing innovative ideas are also important. Clearly, successful—and unsuccessful-entrepreneurs share certain characteristics. However, not all entrepreneurs approach their goals in the same way. You only have to listen to their stories to hear the apparent differences in their priorities, perceptions, personalities, and behavior. Their success generally arises from having a clear mission, a desire to lead, and the recognition that business success requires hard work and long hours. What Does It Take to Become an Entrepreneur? Not all people who own or manage a business are entrepreneurs. It takes unique skills and personal characteristics to develop a new idea for a product or service. A person must also have both the confidence and capability to turn an idea into a business. Entrepreneurs come from all age categories and different social groups. They represent both men and women, as well as varied amounts and types of education. Some entrepreneurs begin their ventures early in life, while others do not take the step until retirement. ليم 210 Chapter 7 | Entrepreneurship and Small Business Management Ministry of Education 2024-1446

It is important to have an understanding of business operations and management. This understanding does not always come from getting a business degree in college. People learn how to run a business in many ways. They may work in a business or ask for help and advice from an experienced business owner. They may read and study on their own as well as in school. There are personal traits that are common to successful entrepreneurs, as shown in Figure 7-2. While some people already have many of these qualities, others do not. If you have a desire to become an entrepreneur, you can work to develop these characteristics. What are some advantages and disadvantages of turning a hobby into a business? PERSONAL CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS ENTREPRENEURS HAVE ENTREPRENEURS ARE . competitive • • ability to partner ⚫ creative energetic ⚫ goal-oriented • ⚫ independent ⚫ inquisitive persistent • ability to secure resources ability to spot opportunity • capability to learn from failure personal initiative • problem-solving skills strong integrity • reliable • • tolerance for ambiguity ⚫ self-confident willingness to work hard Which characteristics of successful entrepreneurs do you possess? Which ones would you like to develop? FIGURE 7-2 Personal Characteristics of Successful Entrepreneurs LO 7.1.3 TYPES OF ENTREPRENEURS CHECKPOINT What personal characteristics are common to most successful entrepreneurs? Entrepreneurs are not only founders of new businesses. In fact, a wide range of subcategories have been created to describe different types of entrepreneur, typically grouped into broader categories themed around a specific trait. Some focus on the personality of the individual entrepreneur, or their motivations for entrepreneurship. Another approach considers the extent that the entrepreneur innovates rather than imitates. Other classifications of entrepreneurship categorize according to the size or structure of the business, stages of development, or the sector in which the business operates. Some of these key types of entrepreneur are discussed below: Solopreneurs: As the name suggests, these entrepreneurs work on their own to achieve their aims. They are typically very independent with a range of skills and do not like to rely ●⚫ upon others to make their business a success. Nor do they wish to share the profits and recognition if the venture proves successful. وزارة التعليم 7.1 The Entrepreneurial Life | 211 Ministry of Education 2024-1446

Scalable start-ups: These entrepreneurs have big ideas with the potential to go global quickly through rapid expansion. Many social media platforms and online delivery services are examples. • Lifestyle entrepreneurs: This type of entrepreneur is less focused on making profits, and more centered upon the lifestyle that running the business affords them. They might enjoy the perks that come with the experience of working within a particular sector they are interested in. Serial entrepreneurs: Unlike many entrepreneurs who devote themselves to one business they are passionate about, serial entrepreneurs build up new businesses quickly, then sell them on and use the profits to start again with a new venture. Social entrepreneurs or socialpreneurs: Social entrepreneurship involves focusing on a social purpose that's integral to the company. In line with the wider aims of Saudi Vision 2030, a growing number of ventures are being launched with the explicit purpose of addressing a social challenge or human need. An increasing number of universities worldwide are offering programs in social entrepreneurship. Ecopreneurs: Similar to socialpreneurs, ecopreneurs are entrepreneurs with a conscience, who put green and sustainable objectives above personal advancement or profit. • Intrapreneurs: An intrapreneur works within an existing corporation as an employee. This individual assumes responsibility for converting a new idea into a profitable product, service, or even process. Thus, an intrapreneur mostly creates value for the company, rather than starting his or her own new business. Work as a TEAM You are planning to open a small business that will rent electric bicycles (e-bikes) for an environmentally friendly way to move around the city. As a team, identify three possible business locations in your community and discuss which location would be best for the business. Prepare a presentation that compares and contrasts the locations. Use visuals such as maps, photos, and drawings to help illustrate your presentation. CHECKPOINT What are the different types of entrepreneurs? P212 Chapter 7 | Entrepreneurship and Small Business Management Ministry of Education 2024-1446

XXX XXX XXX Business Insight W Social Responsibility in Small Business Saudi Vision 2030 places people and communities at the heart of its goals. Companies across Saudi Arabia are increasingly showing commitment to the communities where they do business. Their contribution starts with creating jobs and providing valued products or services, but many entrepreneurs feel a duty to give back even more to the community in return for the local support they enjoy—and they usually benefit from increased goodwill as a result. It is important to recognize that opinions differ as to the extent to which businesses are obligated to engage in socially desirable activities, and the response of small businesses to that obligation also varies. In any case, entrepreneurs should think carefully about their community commitments, because building a business on a foundation of "doing good" may add to a small company's financial burden. However, this is often more than offset by increased loyalty from customers and employees who buy into the mission, which leads to improved productivity and morale. It also sets a company apart from competitors that offer similar products or services but make no charitable contributions. Perhaps most importantly, this commitment is often rewarded by customers in two ways—repeat sales and a willingness to pay a little more for what they get. These are strong incentives to give serious consideration to a company's dedication to the community. Think Critically 1. Can small businesses be profitable and responsible? 2. Suggest ways in which small businesses can play an active role in the local community. Entrepreneurial Success Rami Abu Ghazalah is the CEO of Albaik, a company founded by his father in 1974. In 2022, there are more than 120 branches of ALBAIK with more than 40 in Jeddah. Search for more information about the success story of Rami Abu Ghazalah and give a brief presentation on how ALBAIK has grown into one of the most famous restaurants in Saudi Arabia. وزارة التعليم Ministry of Education 2024-1446 7.1 The Entrepreneurial Life | 213

7.1 ASSESSMENT Key Concepts Determine the best answer. 1. True or False. Everyone who owns or manages a business is an entrepreneur. 2. Which of the following is not one of the four stages of the entrepreneurial process? a. Harvesting value b. Seeking employment c. Identifying the opportunity d. Acquiring critical resources Make Academic Connections 3. Math Ali is opening a manufacturing business. It will produce a new type of USB flash storage card for smartphones and digital cameras. He has several sources for the money needed to start his business. Those sources and amounts are personal savings, SAR 56,500; loans from family and friends, SAR 38,000; venture capital investment, SAR 128,000; bank loan, SAR 22,500. Determine the total amount of capital he has accumulated and the percentage of that total from each of the sources. Prepare a pie chart that illustrates the answers. 4. History Use the Internet to identify important inventions and innovations developed in the past 50 years. Select the five you believe have had the greatest business success. Now select the five you believe have been most important in improving society. Prepare a short report in which you identify and briefly describe each of the inventions and innovations you selected and justifications for your choices. P214 Chapter 7 | Entrepreneurship and Small Business Management Ministry of Education 2024-1446