Description
Entrepreneurship New Venture Management
4 t h Edit ion
E n t r e p r e n e u r s h i p
T N e w V e n t u r e
M a n a g e m e n t
V A N A A R D T •
H E W I T T
B E N D E M A N
B E Z U I D E N H O U T
J A N S E V A N R E N S B U R G
N A I D O O
V A N A A R D T
V A N D ER B A N K
V I S S E R
OXPORD
UNIVERSITY PRESS
SOUTHERN AFRICA
T a ble of con t e n t s
PART ONE:
Introduction
Chapter 1: Entrepreneur ship defined
MAGDA HEWI TT AND JACO VAN DER BANK
Outcomes
Introduction
1.1 A definition of entrepreneurship
1.2 Entrepreneurship and growth
1.3 The development of entrepreneurship
1.4 Entrepreneurial ventures and small
businesses
1.5 Approaches to entrepreneurship
1.6 Our entrepreneurial economy
1.7 The structure of this book
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Mark Shuttleworth
Chapter 2: The entrepreneurial mindset
MAGDA HEWITT
Outcomes
Introduction
2.1 Historical development of
entrepreneurs
2.2 Characteristics of successful
entrepreneurs
2.3 Myths regarding entrepreneurs
2.4 The risks to the entrepreneur
2.5 Gathering information about
entrepreneurs
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Leroy's Recording Studio
1
3
3
3
4
4
5
6
6
8
10
11
11
11
12
12
14
15
15
15
16
17
19
20
22
23
23
24
24
24
25
PART TWO:
The entrepreneurial process
Chapter 3: Creativity and generating
new business ideas
ISA VAN AARDT
Outcomes
Introduction
3.1 Creativity
3.2 Barriers to creativity
3.3 Myths and realities surrounding
creativity
3.4 The creative process
3.5 Sources of product or service ideas
3.6 Methods for generating new product
or service ideas
3.7 Initial screening of ideas
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Ezulwini Chocolat
Chapter 4: Opportunity recognition
and evaluation
JACO VAN DER BANK AND ISA VAN AARDT
Outcomes
Introduction
4.1 Foundations of opportunity
recognition and evaluation
4.2 Venture capitalists' evaluation criteria
for new ventures
4.3 Opportunity assessment and screening
4.4 The idea-screening guide
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Follow your dreams ...
29
29
29
29
29
32
33
34
36
39
42
43
44
44
44
45
45
47
47
47
48
[
51
53
60
62
62
63
63
63
64
PART T HRE E :
' N e w ve n t u r e cr e a t i on 65
Chapter 5: Entrepreneurial strategy 6 7
ISA VAN AARDT
Outcomes 67
Introduction 67
5.1 Importance of strategic planning for
the entrepreneur 68
5.2 The process of entrepreneurial strategic
management 68
5.3 Strategy formulation 70
5.4 Strategy evaluation 84
5.5 Strategy implementation 85
Conclusion 87
Glossary 87
Self-assessment questions 88
Discussion questions 88
Experiential exercise 88
Case study: Soft Craft Systems 89
Chapter 6: Business start-up 90
ISA VAN AARDT
Outcomes 90
Introduction 90
6.1 Characteristics, traits, abilities of the
prospective entrepreneur 91
6.2 The market and a marketing strategy 91
6.3 The presence of competitors 92
6.4 Resource needs 92
6.5 The size of the proposed enterprise 93
6.6 The geographical location of premises 93
6.7 Types of ownership 95
6.8 Business industries 102
6.9 Business support systems 104
6.10 Challenges during start-up 112
Conclusion 114
Glossary 114
Self-assessment questions 115
Discussion questions 115
Experiential exercise 116
Case study: Lucky Pooe:
The Stone Soup Project 116
Chapter 7: Franchising
ISA VAN AARDT
Outcomes
Introduction
7.1 Definition of franchising
7.2 Franchising in South Africa
7.3 Types of franchising
7.4 Advantages and disadvantages of
franchising
7.5 Finding the most suitable franchise
7.6 Evaluating a franchising opportunity
7.7 Franchising a business
7.8 Franchisee recruitment: A five-step
approach
7.9 The franchise package
7.10 Start-up assistance package
7.11 Ongoing franchisee support
7.12 Competition legislation and
franchising
7.13 International franchising
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Paws and Snouts pet shops
118
118
118
119
119
120
122
124
125
c
127
130
131
134
135
136
137
139
139
140
140
141
141
Chapter 8: Business ethics and social
responsibility
HANNELI BENDEMAN
142
Outcomes 142
Introduction 142
8.1 Business ethics 143
8.2 Values 144
8.3 The personal ethics of the entrepreneur 144
8.4 Operating the venture and ethical
dilemmas 146
8.5 Creating an ethical culture in a small
business
8.6 Developing a code of ethics
8.7 Ethics resources
8.8 The social responsibilities of
entrepreneurs
Conclusion
Glossary
Self-assessment questions
Discussion questions
148
150
152
153
155
155
156
156
Experiential exercise
Case study: Respecting one another's values
and culture
Chapter 9: The entrepreneurial
management team
THEA VISSER
Outcomes
Introduction
9.1 Business functions
9.2 Entrepreneurial leadership and teams
in the workplace
9.3 Entrepreneurial management
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: One cool entrepreneur
Chapter 10: Marketing
THEA VISSER
Outcomes
Introduction
10.1 Overview of the marketing function
10.2 Marketing concepts and descriptions
10.3 Marketing and the four Ps
10.4 Global marketing
10.5 Future marketing trends
10.6 Ethics and its implications for
marketing
10.7 Overview of the marketing plan
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Feeling the love
Chapter 11: Operations
MAGDA HEWITT AND
LEON JANSE VAN RENSBURG
Outcomes
Introduction
11.1 Operations management
11.2 Operational plan
156
157
158
158
158
158
162
165
172
172
173
173
173
174
175
175
175
175
176
180
182
183
185
186
190
190
191
191
191
192
193
193
193
194
195
11.3 Operations management plan
checklist
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Leroy's growing business
Chapter 12: Human resources
THEA VISSER
Outcomes
Introduction
12.1 Human-resources concepts and
functions
12.2 Relationship of the human-resources
strategy to the business strategy
12.3 The recruitment and selection
processes
12.4 Orientation, job analysis, job
descriptions, and job specifications
12.5 Recent developments in human
resources
12.6 Future trends and implications for
human resources
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: The challenge of managing
diversity in South Africa
Chapter 13: Basic financial concepts
STEFAN BEZUIDENHOUT
Outcomes
Introduction
13.1 Accounting
13.2 Financial statements
13.3 Financial management
13.4 Financing capital requirements
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Xtreme Sports
201
203
203
204
204
204
205
206
206
206
207
207
212
213
214
217
219
219
219
220
220
221
222
222
222
222
223
232
239
242
242
242
243
243
244
Chapter 14: Financial planning and
forecasting
STEFAN BEZUIDENHOUT
16.2 Preparing a business plan 288
245 16.3 Aspects covered in the business plan 289
16.4 International business plans 292
16.5 A pro forma business plan 293
Outcomes
Introduction
14.1 Financial planning
14.2 The financial plan
14.3 Financial forecasting
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study 1: Dube's Cellular
Case study 2: Joe's Plumbing Service
Chapter 15: Technology and information
technology
LEON JANSE VAN RENSBURG
Outcomes
Introduction
15.1 Technology
15.2 Information-technology
management versus information
technology
15.3 The benefits of information
technology
15.4 Business-information alignment risks
15.5 Information technology and planning
15.6 Basic principles when selecting
information technology
15.7 Implementations of information
technology
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Child Support Agency Australia
Chapter 16: The business plan
STEFAN BEZUIDENHOUT
Outcomes
Introduction
16.1 The purpose of a business plan
245
245
245
248
254
270
271
271
271
272
273
274
275
275
275
276
276
276
277
278
279
280
283
284
284
284
285
285
286
286
286
287
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: The business plan of the Cement
andBrickYard(Pty)Ltd.
Chapter 17: Legal aspects
ISA VAN AARDT
Outcomes
Introduction
17.1 The establishment of the venture
17.2 South African Revenue Service
(SARS)
17.3 Contracts
17.4 Personnel
17.5 Insurance
17.6 Registering patents, designs,
copyrights, and trademarks
17.7 Complying with the Broad-Based
Black Economic Empowerment Act,
No. 53 of 2003
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Designer Shoes
PART FOUR:
Managing the venture
Chapter 18: Business cycles and the
entrepreneur
CAREL VAN AARDT AND PATRICK NAIDOO
Outcomes
Introduction
18.1 The nature of business cycles
18.2 Business cycles in South Africa: A
historical perspective and lessons for
entrepreneurs
299
299
300
300
300
301
307
307
307
308
310
314
315
317
318
318
320
320
321
321
321
322
323
325
325
325
326
328
18.3 Ensuring profitability during
the different phases of the business
cycle
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Gavin Peters starting a new
business
336
340
340
340
341
341
342
20.9 Promoting corporate
entrepreneurship
20.10 Measuring instruments
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Peter Maloyi: Zebra
Components
373
374
374
374
374
375
375
376
Chapter 19: Managing growth and
harvesting 343
JACO VAN DER BANK AND
MAGDA HEWITT
Outcomes
Introduction
19.1 The life cycle of business ventures
19.2 Characteristics of high-growth
ventures
19.3 Factors influencing the growth of
entrepreneurial businesses 349
19.4 Leading practices of high-growth
companies
19.5 Harvesting
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Discovery in venture with
US insurer
Chapter 20: Corporate entrepreneurship
MAGDA HEWITT
Outcomes
Introduction
20.1 South Africa's need for job creation
20.2 Defining corporate entrepreneurship
20.3 Forms of corporate entrepreneurship
20.4 Corporate entrepreneurial life cycle
20.5 Corporate entrepreneurial intensity
20.6 Corporate entrepreneurial culture
20.7 Characteristics of the corporate
entrepreneur
20.8 Constraints on corporate
entrepreneurship 370
343
343
344
348
21.1
21.2
21.3
21.4
21.5
Chapter 21:Turnaround and failure 377
ISA VAN AARDT
Outcomes 377
Introduction 377
The troubled business 378
Stages in business failure 380
The business turnaround model 381
Bankruptcy and insolvency 387
Entrepreneurial management
needed in turnaround 388
Conclusion 389
Glossary 389
357
357
362
362
362
363
363
364
365
365
365
366
366
367
368
369
369
370
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Sport Equips FIFA World
Cup 2010 blues
Chapter 22: Contemporary issues
LEON JANSE VAN RENSBURG AND
MAGDA HEWITT
Outcomes
Introduction
22.1 Emerging entrepreneurial types
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: All in the family
Glossary
Bibliography
Index
390
390
390
391
392
392
392
393
401
401
402
402
402
403
404
410
417
doc_608316657.pdf
Entrepreneurship New Venture Management
4 t h Edit ion
E n t r e p r e n e u r s h i p
T N e w V e n t u r e
M a n a g e m e n t
V A N A A R D T •
H E W I T T
B E N D E M A N
B E Z U I D E N H O U T
J A N S E V A N R E N S B U R G
N A I D O O
V A N A A R D T
V A N D ER B A N K
V I S S E R
OXPORD
UNIVERSITY PRESS
SOUTHERN AFRICA
T a ble of con t e n t s
PART ONE:
Introduction
Chapter 1: Entrepreneur ship defined
MAGDA HEWI TT AND JACO VAN DER BANK
Outcomes
Introduction
1.1 A definition of entrepreneurship
1.2 Entrepreneurship and growth
1.3 The development of entrepreneurship
1.4 Entrepreneurial ventures and small
businesses
1.5 Approaches to entrepreneurship
1.6 Our entrepreneurial economy
1.7 The structure of this book
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Mark Shuttleworth
Chapter 2: The entrepreneurial mindset
MAGDA HEWITT
Outcomes
Introduction
2.1 Historical development of
entrepreneurs
2.2 Characteristics of successful
entrepreneurs
2.3 Myths regarding entrepreneurs
2.4 The risks to the entrepreneur
2.5 Gathering information about
entrepreneurs
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Leroy's Recording Studio
1
3
3
3
4
4
5
6
6
8
10
11
11
11
12
12
14
15
15
15
16
17
19
20
22
23
23
24
24
24
25
PART TWO:
The entrepreneurial process
Chapter 3: Creativity and generating
new business ideas
ISA VAN AARDT
Outcomes
Introduction
3.1 Creativity
3.2 Barriers to creativity
3.3 Myths and realities surrounding
creativity
3.4 The creative process
3.5 Sources of product or service ideas
3.6 Methods for generating new product
or service ideas
3.7 Initial screening of ideas
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Ezulwini Chocolat
Chapter 4: Opportunity recognition
and evaluation
JACO VAN DER BANK AND ISA VAN AARDT
Outcomes
Introduction
4.1 Foundations of opportunity
recognition and evaluation
4.2 Venture capitalists' evaluation criteria
for new ventures
4.3 Opportunity assessment and screening
4.4 The idea-screening guide
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Follow your dreams ...
29
29
29
29
29
32
33
34
36
39
42
43
44
44
44
45
45
47
47
47
48
[
51
53
60
62
62
63
63
63
64
PART T HRE E :
' N e w ve n t u r e cr e a t i on 65
Chapter 5: Entrepreneurial strategy 6 7
ISA VAN AARDT
Outcomes 67
Introduction 67
5.1 Importance of strategic planning for
the entrepreneur 68
5.2 The process of entrepreneurial strategic
management 68
5.3 Strategy formulation 70
5.4 Strategy evaluation 84
5.5 Strategy implementation 85
Conclusion 87
Glossary 87
Self-assessment questions 88
Discussion questions 88
Experiential exercise 88
Case study: Soft Craft Systems 89
Chapter 6: Business start-up 90
ISA VAN AARDT
Outcomes 90
Introduction 90
6.1 Characteristics, traits, abilities of the
prospective entrepreneur 91
6.2 The market and a marketing strategy 91
6.3 The presence of competitors 92
6.4 Resource needs 92
6.5 The size of the proposed enterprise 93
6.6 The geographical location of premises 93
6.7 Types of ownership 95
6.8 Business industries 102
6.9 Business support systems 104
6.10 Challenges during start-up 112
Conclusion 114
Glossary 114
Self-assessment questions 115
Discussion questions 115
Experiential exercise 116
Case study: Lucky Pooe:
The Stone Soup Project 116
Chapter 7: Franchising
ISA VAN AARDT
Outcomes
Introduction
7.1 Definition of franchising
7.2 Franchising in South Africa
7.3 Types of franchising
7.4 Advantages and disadvantages of
franchising
7.5 Finding the most suitable franchise
7.6 Evaluating a franchising opportunity
7.7 Franchising a business
7.8 Franchisee recruitment: A five-step
approach
7.9 The franchise package
7.10 Start-up assistance package
7.11 Ongoing franchisee support
7.12 Competition legislation and
franchising
7.13 International franchising
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Paws and Snouts pet shops
118
118
118
119
119
120
122
124
125
c
127
130
131
134
135
136
137
139
139
140
140
141
141
Chapter 8: Business ethics and social
responsibility
HANNELI BENDEMAN
142
Outcomes 142
Introduction 142
8.1 Business ethics 143
8.2 Values 144
8.3 The personal ethics of the entrepreneur 144
8.4 Operating the venture and ethical
dilemmas 146
8.5 Creating an ethical culture in a small
business
8.6 Developing a code of ethics
8.7 Ethics resources
8.8 The social responsibilities of
entrepreneurs
Conclusion
Glossary
Self-assessment questions
Discussion questions
148
150
152
153
155
155
156
156
Experiential exercise
Case study: Respecting one another's values
and culture
Chapter 9: The entrepreneurial
management team
THEA VISSER
Outcomes
Introduction
9.1 Business functions
9.2 Entrepreneurial leadership and teams
in the workplace
9.3 Entrepreneurial management
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: One cool entrepreneur
Chapter 10: Marketing
THEA VISSER
Outcomes
Introduction
10.1 Overview of the marketing function
10.2 Marketing concepts and descriptions
10.3 Marketing and the four Ps
10.4 Global marketing
10.5 Future marketing trends
10.6 Ethics and its implications for
marketing
10.7 Overview of the marketing plan
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Feeling the love
Chapter 11: Operations
MAGDA HEWITT AND
LEON JANSE VAN RENSBURG
Outcomes
Introduction
11.1 Operations management
11.2 Operational plan
156
157
158
158
158
158
162
165
172
172
173
173
173
174
175
175
175
175
176
180
182
183
185
186
190
190
191
191
191
192
193
193
193
194
195
11.3 Operations management plan
checklist
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Leroy's growing business
Chapter 12: Human resources
THEA VISSER
Outcomes
Introduction
12.1 Human-resources concepts and
functions
12.2 Relationship of the human-resources
strategy to the business strategy
12.3 The recruitment and selection
processes
12.4 Orientation, job analysis, job
descriptions, and job specifications
12.5 Recent developments in human
resources
12.6 Future trends and implications for
human resources
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: The challenge of managing
diversity in South Africa
Chapter 13: Basic financial concepts
STEFAN BEZUIDENHOUT
Outcomes
Introduction
13.1 Accounting
13.2 Financial statements
13.3 Financial management
13.4 Financing capital requirements
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Xtreme Sports
201
203
203
204
204
204
205
206
206
206
207
207
212
213
214
217
219
219
219
220
220
221
222
222
222
222
223
232
239
242
242
242
243
243
244
Chapter 14: Financial planning and
forecasting
STEFAN BEZUIDENHOUT
16.2 Preparing a business plan 288
245 16.3 Aspects covered in the business plan 289
16.4 International business plans 292
16.5 A pro forma business plan 293
Outcomes
Introduction
14.1 Financial planning
14.2 The financial plan
14.3 Financial forecasting
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study 1: Dube's Cellular
Case study 2: Joe's Plumbing Service
Chapter 15: Technology and information
technology
LEON JANSE VAN RENSBURG
Outcomes
Introduction
15.1 Technology
15.2 Information-technology
management versus information
technology
15.3 The benefits of information
technology
15.4 Business-information alignment risks
15.5 Information technology and planning
15.6 Basic principles when selecting
information technology
15.7 Implementations of information
technology
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Child Support Agency Australia
Chapter 16: The business plan
STEFAN BEZUIDENHOUT
Outcomes
Introduction
16.1 The purpose of a business plan
245
245
245
248
254
270
271
271
271
272
273
274
275
275
275
276
276
276
277
278
279
280
283
284
284
284
285
285
286
286
286
287
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: The business plan of the Cement
andBrickYard(Pty)Ltd.
Chapter 17: Legal aspects
ISA VAN AARDT
Outcomes
Introduction
17.1 The establishment of the venture
17.2 South African Revenue Service
(SARS)
17.3 Contracts
17.4 Personnel
17.5 Insurance
17.6 Registering patents, designs,
copyrights, and trademarks
17.7 Complying with the Broad-Based
Black Economic Empowerment Act,
No. 53 of 2003
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Designer Shoes
PART FOUR:
Managing the venture
Chapter 18: Business cycles and the
entrepreneur
CAREL VAN AARDT AND PATRICK NAIDOO
Outcomes
Introduction
18.1 The nature of business cycles
18.2 Business cycles in South Africa: A
historical perspective and lessons for
entrepreneurs
299
299
300
300
300
301
307
307
307
308
310
314
315
317
318
318
320
320
321
321
321
322
323
325
325
325
326
328
18.3 Ensuring profitability during
the different phases of the business
cycle
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Gavin Peters starting a new
business
336
340
340
340
341
341
342
20.9 Promoting corporate
entrepreneurship
20.10 Measuring instruments
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Peter Maloyi: Zebra
Components
373
374
374
374
374
375
375
376
Chapter 19: Managing growth and
harvesting 343
JACO VAN DER BANK AND
MAGDA HEWITT
Outcomes
Introduction
19.1 The life cycle of business ventures
19.2 Characteristics of high-growth
ventures
19.3 Factors influencing the growth of
entrepreneurial businesses 349
19.4 Leading practices of high-growth
companies
19.5 Harvesting
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Discovery in venture with
US insurer
Chapter 20: Corporate entrepreneurship
MAGDA HEWITT
Outcomes
Introduction
20.1 South Africa's need for job creation
20.2 Defining corporate entrepreneurship
20.3 Forms of corporate entrepreneurship
20.4 Corporate entrepreneurial life cycle
20.5 Corporate entrepreneurial intensity
20.6 Corporate entrepreneurial culture
20.7 Characteristics of the corporate
entrepreneur
20.8 Constraints on corporate
entrepreneurship 370
343
343
344
348
21.1
21.2
21.3
21.4
21.5
Chapter 21:Turnaround and failure 377
ISA VAN AARDT
Outcomes 377
Introduction 377
The troubled business 378
Stages in business failure 380
The business turnaround model 381
Bankruptcy and insolvency 387
Entrepreneurial management
needed in turnaround 388
Conclusion 389
Glossary 389
357
357
362
362
362
363
363
364
365
365
365
366
366
367
368
369
369
370
Self-assessment questions
Discussion questions
Experiential exercise
Case study: Sport Equips FIFA World
Cup 2010 blues
Chapter 22: Contemporary issues
LEON JANSE VAN RENSBURG AND
MAGDA HEWITT
Outcomes
Introduction
22.1 Emerging entrepreneurial types
Conclusion
Glossary
Self-assessment questions
Discussion questions
Experiential exercise
Case study: All in the family
Glossary
Bibliography
Index
390
390
390
391
392
392
392
393
401
401
402
402
402
403
404
410
417
doc_608316657.pdf