Podcast
Questions and Answers
What percentage of total business units in Hong Kong do SMEs account for as of March 2024?
What percentage of total business units in Hong Kong do SMEs account for as of March 2024?
Which industry is NOT mentioned as a leading sector for small and medium enterprises (SMEs) in Hong Kong?
Which industry is NOT mentioned as a leading sector for small and medium enterprises (SMEs) in Hong Kong?
What is one advantage of spinning up a franchise over starting a new business?
What is one advantage of spinning up a franchise over starting a new business?
Which of the following is NOT a commonly cited advantage of small businesses?
Which of the following is NOT a commonly cited advantage of small businesses?
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What is a potential downside of purchasing an existing business?
What is a potential downside of purchasing an existing business?
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What is one of the key advantages of franchising?
What is one of the key advantages of franchising?
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Which of the following is a disadvantage of franchising?
Which of the following is a disadvantage of franchising?
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What is a primary purpose of a business plan?
What is a primary purpose of a business plan?
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What should a business plan include regarding costs?
What should a business plan include regarding costs?
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What is a significant component of franchising agreements?
What is a significant component of franchising agreements?
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What was Sarah's main focus in her entrepreneurial venture?
What was Sarah's main focus in her entrepreneurial venture?
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Which of the following traits did Sarah demonstrate by conducting market research?
Which of the following traits did Sarah demonstrate by conducting market research?
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What is meant by intrapreneurship?
What is meant by intrapreneurship?
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What is one characteristic that defines entrepreneurial managers?
What is one characteristic that defines entrepreneurial managers?
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Which factor is NOT contributing to the increase in small businesses, according to the provided content?
Which factor is NOT contributing to the increase in small businesses, according to the provided content?
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Why is it important for businesses to meet customers' changing needs?
Why is it important for businesses to meet customers' changing needs?
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What is one role of small and medium enterprises (SMEs) in the economy?
What is one role of small and medium enterprises (SMEs) in the economy?
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What does the term 'planned obsolescence' refer to in an entrepreneurial context?
What does the term 'planned obsolescence' refer to in an entrepreneurial context?
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What best defines entrepreneurship?
What best defines entrepreneurship?
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Which characteristic is most essential for an entrepreneur based on Sarah's journey?
Which characteristic is most essential for an entrepreneur based on Sarah's journey?
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What is a defining feature of a Small and Medium Enterprise (SME)?
What is a defining feature of a Small and Medium Enterprise (SME)?
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Which of the following is NOT an advantage of SMEs?
Which of the following is NOT an advantage of SMEs?
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What essential element should be included in a business plan?
What essential element should be included in a business plan?
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Which argument against supporting SMEs might be valid?
Which argument against supporting SMEs might be valid?
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How did Sarah display her entrepreneurial spirit during her journey?
How did Sarah display her entrepreneurial spirit during her journey?
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Which action is part of the entrepreneurial process?
Which action is part of the entrepreneurial process?
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Study Notes
Entrepreneurship & Small Business
- Entrepreneurship is the process of creating and managing a business to achieve a desired objective.
- Entrepreneurial activity involves starting, buying, or growing a business, often with innovative products or processes.
- Intrapreneurship is the process of creating and maintaining the innovation and flexibility of a small-business environment within a large organization.
- Small and Medium Enterprises (SMEs) are independently owned and operated businesses that are not dominant in their competitive area and employ a limited number of employees.
- In Hong Kong, SMEs are typically defined as manufacturing enterprises with fewer than 100 employees and non-manufacturing enterprises with fewer than 50 employees.
- Industries that attract SMEs include retailing, wholesaling, services, and small-scale manufacturing.
- SMEs play a significant role in Hong Kong's economy:
- Economic impact: Accounted for over 98% of the total business units in Hong Kong.
- Employment impact: Provided job opportunities for over 1.2 million people, about 44.4% of total employment.
- Technological impact: Contribute to technological innovations.
- Market impact: Serve market niches that larger businesses ignore.
Advantages of Small Businesses
- Better personal relationships
- Ability to adapt to change
- Simplified record keeping
- Independence
- Ease of start-up
- Profit retention
- Ability to keep secrets and privacy
Disadvantages of Small Business
- Limited access to capital
- High failure rate
- Difficulty in attracting and retaining qualified employees
- Vulnerability to economic downturns
- Lack of resources and expertise
Arguments for Supporting SMEs
- Job creation
- Economic growth
- Innovation
- Competition
- Support for local communities
Arguments Against Supporting SMEs
- Inefficiency
- Lack of accountability
- Potential for corruption
- Cost to taxpayers
- Limited impact on the wider economy
Approaches to Starting a Business
- Acquire an existing business: Advantageous for established customer networks and suppliers.
- Join a franchise: Offers training, support, brand name appeal, and proven products.
- Start a new business: Provides more freedom and control.
Starting a New Business
- Develop a concept or general idea.
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Create a business plan: A statement of rationale and step-by-step plan for achieving goals.
- Purpose: Communicate to potential investors, manage progress, plan various phases of the business.
- Essential elements: Nature and mission of the venture, reasoning for its viability, goals, cost, and other key details.
Business Plan Essentials
- Executive summary: Concise overview of the business plan.
- Company description: Detailed information about the company, including its history, mission, and goals.
- Products or services: Description of the products or services offered, including their features and benefits.
- Market analysis: Analysis of the target market, including its size, growth potential, and competition.
- Marketing plan: Outline of how the company will reach its target market, including pricing, promotion, and distribution strategies.
- Management team: Information about the company's management team, including their qualifications and experience.
- Financial projections: Forecasts of the company's financial performance, including revenue, expenses, and profitability.
- Funding request: If seeking funding, a clear description of the amount of money needed and how it will be used.
Franchise
- Franchisor: The company selling a franchise.
- Franchisee: The purchaser of a franchise.
- Franchise agreement: Contract outlining the terms of the franchise relationship.
Entrepreneurial Characteristics
- Vision: A clear and strong view of the future.
- Passion: Enthusiasm and drive for the business.
- Risk tolerance: Willingness to take calculated risks.
- Persistence: Determination to overcome challenges.
- Adaptability: Ability to adjust to changing circumstances.
- Creativity: Ability to generate new ideas and solutions.
- Leadership: Ability to inspire and motivate others.
Entrepreneurial Managers
- Carry out entrepreneurial efforts within a larger organization.
- Have freedom to define and initiate new projects.
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Description
Explore the principles of entrepreneurship and the significance of small and medium enterprises (SMEs) in Hong Kong. This quiz covers concepts like intrapreneurship, the role of SMEs in the economy, and key industries for small businesses. Test your knowledge on how these elements contribute to business success.
