KING ABDUL AZIZ UNIVERSITY - kau



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KING ABDUL AZIZ UNIVERSITY

Jeddah Community College

BIT-200 Course Syllabus

Business Entrepreneurship

Fall 2008 Semester

Instructor: Dr. Mairaj Salim

Phone: (02) 2870026, Ext 410 Class hrs: Mon 11:00 -11:50 am (RM-109B),

Wed-11:00 -11:50 am (RM-108A) Section: 4

Email:dr_mairajsalim@

Office hrs: Posted, RM-204B/1

Course Description:

Credit Hours: (2:2, 0)

Course Objectives:

Fundamentals of starting or buying a new business, the nature of the entrepreneurial process and the skills required to be successful, including planning, financing, starting and managing the business.

Prerequisite: FAYOC

Students will be able to:

• Define entrepreneurship, and explain its role in the Saudi economy.

• Conduct a self analysis to determine suitability for owing and operating a small business.

• Explain the advantages and disadvantages of various types of business ownership.

• Outline a framework for analyzing new ventures using the milestone approach to business planning.

• Identify and describe the types of primary and secondary research used to develop customer, market, and competitive assumptions.

• Identify and describe the types of financing sources that are available for new venture endeavors.

• Explain how the microcomputer can be used to support strategic analysis and decision making in the entrepreneurial process.

• Define the accounting information systems and reports used in business.

• Describe the business planning activities required for the successful launching of a new venture.

• Overview of the Saudi Business laws and procedures.

Textbooks / Required Materials:

Required Text:

Text Book: Essentials of Entrepreneurship and Small Business Management, Thomas Zimmerer, and Norman Scarborough, 5th edition, 2008, Prentice Hall, Pearson Education

Note: To get this book, students can contact JCC library, KAU library, Al-Marrikh (Phone: 02-6527052) and Jarir (Phone: 02-6732727) book stores.

Attendance Policy:

1. Student must be in class on time.

2. Students will get first verbal warning from his faculty member after missing cumulative classes’ equivalent to one week in a course.

3. After missing cumulative classes’ equivalent to two weeks in a course he must get second warning in written from the faculty member

4. Similarly if a student misses cumulative classes’ equivalent to three weeks in a course, he’ll be given DN from that course.

5. DN cannot be removed.

6. If a student arrives late (1-15 minutes) in a class he’ll be marked as LATE and two lates will be considered as one absent.

7. If a student arrives after 15 minutes he’ll be marked as absent.

8. There will be a deduction of grades 5-15% based on number of classes missed.

9. If a student does not miss a single class during the whole semester he can be rewarded by giving him the next grade in his final marks of that particular course.

It’s responsibility of the student to keep the record of his absences.

SPECIAL Accommodations:

If there is any student in this class who has special needs because of learning disabilities or other disabilities, please discuss these needs with me.

Evaluation / Grading:

Students must earn 60% at least of the total possible points. The official grades in this course are:

|Marks |Grade |

|95-100% |A+ |

|90-94% |A |

|85-89% |B+ |

|80-84% |B |

|75-79% |C+ |

|70-74% |C |

|65-69% |D+ |

|60-64% |D |

|0-59% |F |

Students earn 59% and below are failed, F (Failed Grade).

Denied students will earn DN (denied grade).

Students who do not attend at all (any exam, any lecture and any Lab) will be considered AF (Absent Fail grade).

Evaluation Policy:-

|Item |Marks |

|Assignments/Quizzes/ Case Presentations |10% |

|Class Attendance/Participation |10% |

|Exam I (Written) |20% |

|Exam II (Written) |20% |

|Final Exam (comprehensive) |40% |

Late Assignments:

All assignments are due at the BEGINNING of class on the due date. Late assignments will be penalized as follows: one day late...1 grade reduction, two days late...two grades reduced, after three days...1/2 credit. If a student submits more than two late assignments in a term, additional late papers may not be accepted.

Course Procedures:

• Students may collaborate on assignments, but each student must submit an original copy of his/her OWN work. If an assignment is obviously copied, individuals involved may receive no credit.

• If a student must miss a class he is expected to contact the instructor regarding make-up work before the next class meets.

• Keep all graded papers to verify grades.

• It is the student's responsibility to officially drop a class. Failure to officially withdraw from a course may result in a F (Failed grade) or AF (Absent Failed grade).

• Cell phones, pagers and electronic entertainment devices must be turned off during all class and Lab times. Students violating this policy may be asked to leave class.

Course Schedule

|Week No. |Date |Contents |

|1 |Oct 11-15 | |

| | |. Introduction of Entrepreneur |

| | |a. Meaning of Entrepreneur |

| | |b. Characteristics of Entrepreneurs |

| | |c. Difference between Entrepreneur and Manager |

| | |d. Difference between Entrepreneur and Intrapreneur |

| | |e. Barriers of Entrepreneurship |

|2 |Oct 18-22 | Introduction continue |

| | | |

|3 |Oct- 25-29 | |

| | |Types of Entrepreneurs |

| | |a. Innovate Entrepreneurs |

| | |b. Technology Based Entrepreneurs |

| | |c. Economic Based Entrepreneurs |

| | |d. Market Economy Based Entrepreneurs |

|4 |Nov 1-5 | |

| | |Types of Entrepreneur Continue |

|5 |Nov 8-12 | |

| | |Entrepreneurial Motivation |

| | |a. Meaning of Motivation. |

| | |b. Motivational Factors |

| | | |

| | |Tentative Date for Exam-I ? 20% Marks |

|6 | Nov 15-19 | Entrepreneurial Training |

| | |a. Meaning of Entrepreneurial Training. |

| | |b. Methods of Training. |

|7 |Nov 22-26 |Franchising |

| | |a. Benefits of Franchising |

| | |b. Drawbacks of Franchising |

| | | |

|8 |Nov 29-Dec 3 |Franchising |

|9 |Dec 14-17 |Franchising |

| | |Tentative Date for Exam-II ? 20% Marks |

|10 |Dec 20-24 | Ownership |

| | |Factors to consider |

| | |Forms of ownership |

| | | |

|11 | Dec 27-31 | Ownership |

|12 |Jan 3-7 |Entrepreneur Thoughts and Action |

| | |Detailed Guidelines to Launch an Industry |

| | | |

|13 |Jan 10-14 |Identification of New Opportunities |

| | |a. Identification of New Product |

|14 |Jan 17- 21 |Business Law |

| | |Employment Law |

| | |Contract Law |

| | |Sales Law |

| | |d Consumer Law |

| Final exam |

|Tentative? |

|Comprehensive 40 % marks |

| |

Good Luck

Notes of BIT-200

Introduction to Entrepreneur

Meaning of an Entrepreneur –One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.

Characteristics of Entrepreneur

• Desire to take initiative

• Preference for moderate risk

• Confidence in their ability to succeed

• Self-reliance

• Desire for immediate feed back

Benefits of Small Business

• Create your own destiny

• Make a difference

• Reach your full potential

• Earn impressive profits

• Contribute to society and to be recognized for your efforts

• Do what you enjoy and to have fun at it

Drawbacks of small Business

• Uncertainty of income

• Risk of losing your entire investment

• Long hours and hard work

• High level of stress

• Complete responsibility

Difference between Entrepreneur and Manager

| |Entrepreneur |Manager |

|1 |An entrepreneur sets up a new enterprise or |A manager does not take a new venture and renders services in|

| |undertakes a venture for action. |an existing enterprise |

|2 |An entrepreneur assumes risk of |A manager does not assume or share any risk involved in the |

| |uncertainty involved in the enterprise |enterprise. |

|3 |The reward of an enterprise for his risk bearing role |The reward of a manger for rendering his services is salary. |

| |is profits. | |

|4 |The entrepreneur applies innovation from time to time |A manager simply keeps running the enterprise on already |

| |in the enterprise by adopting new technology. |established lines on a routine basis. |

|5 |An entrepreneur is his own boss and enjoys an |A manager is a salaried person, he is dependent on |

| |independent status as the owner of the enterprise. |entrepreneur. |

|6 |An entrepreneur needs qualities like mission, creative |A manager needs distinct qualifications such as knowledge of |

| |thinking, risk bearing ability. |human behavior, management theory etc. |

Barriers of Entrepreneurship

➢ Lack of Market Knowledge

➢ Lack of Technical Skills

➢ Lack of business know how

➢ Lack of Motivation

➢ Lack of Time Management

➢ Lack of attachment with business

Difference Between Entrepreneurship and Intrapreneurship

| |Entrepreneurship |Intrapreneurship |

|1. |An entrepreneur is an independent businessman |An intrapreneur is semi- dependent on the owner of the company|

|2. |An entrepreneur himself raises the required funds |An intrapreneur uses the funds raised by his company |

|3. |An entrepreneur bears full risks of his business |An intrapreneur does not fully bear the risk of the business |

|4. |An entrepreneur operates from outside the |An intrapreneur operates within the organisation |

| |organization | |

Types of Entrepreneur

1) Innovate Entrepreneur

2) Technology Based Entrepreneur

3) Economic Based Entrepreneur

4) Market economy Based Entrepreneur

1) Innovate Entrepreneur : Innovation means doing new things in a new way. It

is a way of production.

2) Technology Based : The use of new technology for the future growth

Entrepreneur of business.

3) Economic Based : Turn out of maximum at minimum cost is

Entrepreneur economic based entrepreneur.

4) Market Economy : It is based on market opportunities available to keep

Based Entrepreneur the organization constantly on the path of his objective.

Entrepreneurial Motivation

Meaning of Motivation: means to induce people to act in a desired manner.

Objectives of Motivation

➢ To attain a high level of efficiency.

➢ To reduce employees turnover and absenteeism

➢ To establish good relations.

➢ To make good image of organization.

➢ To achieve the goals of the organization.

➢ To satisfy needs of employees.

Problems in Motivation

➢ Costly Effort

➢ Trouble Making Employees

➢ Motivation is an Internal Feeling

➢ Opposition to Changes

Types of Motivation

➢ Positive and Negative Motivation

➢ Financial and Non-financial Motivation

➢ Individual and Group Motivation

Entrepreneurial Training

Meaning of Training: Training is the systematic instruction of staff at all levels in new attitudes or new skills.

Methods of training

➢ Individual Training– In this a single person is selected for training

➢ Group Training – In this a suitable group of persons is selected for training.

➢ Lecture Method- In this trainer communicates orally to train them and also

solve questions.

➢ Demonstration Method- In this trainer give practical knowledge how to do it.

➢ Meetings – In this training involve a group of people who discuss the various problems.

Principles of Training

➢ Principle of need.

➢ Principal of planning.

➢ Principle of economy.

➢ Principle of reward.

➢ Principle of practical.

➢ Principle of competition.

Franchising and the Entrepreneur

Franchising

Franchising is the door to expansion with minimal investment and minimal risk; to achieve maximum outcome for any business.

Benefits of Franchising

• Business system

• Management training and support

• Brand name appeal

• Standardized quality of goods and services

• National advertising program

• Financial assistance

• Proven products and business formats

• Centralized buying power

• Site selection and territorial protection

• Greater chance for success

Drawbacks of Franchising

• Franchise fees and profit sharing

• Strict adherence to standardized operations

• Restrictions on purchasing

• Limited product line

• Unsatisfactory training programs

• Market saturation

• Less freedom

Ownership

■ There is no one “best” form of ownership.

■ The best form of ownership depends on an entrepreneur’s particular situation.

■ The key to choosing a form of ownership understands how each form’s characteristics affect an entrepreneur’s specific business and personal circumstances.

Factors to Consider

■ Tax considerations

■ Liability exposure

■ Start-up capital requirements

■ Control

■ Managerial ability

■ Business goals

■ Management succession plans

■ Cost of formation

Forms of Ownership

■ Sole Proprietorship

■ Partnership

■ Corporation

■ S Corporation

■ Limited Liability Company

■ Joint Venture

The Corporation

■ A separate legal entity from its owners.

Types of corporations:

➢ Domestic - a corporation doing business in the state in which it is incorporated.

➢ Foreign - a corporation chartered in one state and doing business in another state. formed in another country but doing business in the United States.

➢ Publicly held - a corporation that has a large number of shareholders and whose stock usually is traded on one of the large stock exchanges.

➢ Closely held - a corporation in which shares are controlled by a relatively small number of people, often family members, relatives, or friends.

Advantages of the Corporation

■ Limited liability of the stockholders

■ Ability to attract capital

■ Ability to continue indefinitely

■ Transferable ownership

Disadvantages of the Corporation

■ Cost and time of incorporating

■ “Double taxation”

■ Potential for diminished managerial incentives

■ Legal requirements and regulatory “red tape”

■ Potential loss of control by founder(s)

Identification of New Opportunities

Selection of a Project

1. Project Cost

2. location or Site

3. Technology

4. Raw Material

5. Cheap labor Supply

6. Equipment

7. Marketing

Selection of a Product

1. Import Restrictions

2. Past Experience

3. Degree of Profitability

4. Facility of Concessions

5. Category Under Which Product Falls

6. Market of the Product

7. Product License

8. Ancillary Unit and Service Unit to the Major Industry

Checklist for Choosing Ideas of New Product

A. Fit with your Skills and Experience

B. Fit With the Market

C. Fit with the Enterprise

What to do when Your Idea is rejected?

• Give up and select a new idea.

• Listen carefully, understand what is wrong, improve your idea and your presentation, and try again.

Detailed Guidelines to Launch an Industry

1. Selection of Industry

2. Factory Accommodation

3. Registration

4. Machinery

5. Raw Materials

6. Finance

7. Technical Know-how

8. Standardization

9. Marketing

10. Export

11. Inventions

12. Training

13. Problems

14. Voluntary Organizations

What Is Law

-The collection of rules imposed by authority.

- Law is a rule of civil conduct, prescribed by the supreme power of a State commanding what is right and prohibiting what is wrong.

Contract Law

An agreement creating and defining obligations between the parties.

Employment Law

Employment law covers all rights and obligations within the employer-employee relationship -- between employers and current employees, job applicants, or former employees

Important employee rights include:

• Right to privacy

• Right to be free from harassment.

• Right to a safe workplace.

• Right to fair wages for work performed.

Consumer Law

Consumer Law consists of regulations and statutes that seek to create a more equitable balance for a buyer in the marketplace.

Sales Law

Law that regulates the transfer of business assets so that business owners cannot dispose of assets in order to avoid creditors.

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