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Course Title Be Your Own Boss - Entrepreneurship Course Code CLA9004 Recommended Study Year NIL No. of Credits/Term 3 Mode of Tuition Sectional Approach Class Contact Hours 42 hours (3 hours per week) Category Core Curriculum (Under "Creativity and Innovation" Cluster) Discipline - Prerequisite(s) NIL Co-requisite(s) NIL Exclusion(s) NIL Exemption Requirement(s) NIL Instructor: Dr. Esther Li Office: SEK101/9 Phone: 2626 8232 Email: estherli@ln.edu.hk

Contact Hours Office Consultation Hours

SEK205 15:30-17:00 (Tuesdays)

SEK107 10:30-12:00 (Fridays)

SEK101/9 15:30-18:00 (Thursdays)

SEK101/9 13:30-15:00 (Fridays)

Brief Course Description People in every nation have enormous entrepreneurial qualities and aspirations, and that spirit is finding its way into nearly all world markets. The adoption of the entrepreneurial mindset grows exponentially in countries like India, China, Korea, Mexico, South Africa, and those in the former Soviet bloc. To prepare the next generation of entrepreneurial leaders, this subject focuses on understanding the entrepreneurial process, the establishment as well as the management of a new business venture. Both conceptual issues (understanding decision to become an entrepreneur, and developing successful business ideas), and practical issues (financing, managing, and growing a venture) will be covered. Aims With an increasing recognition of the important role played by entrepreneurship in economic and social prosperity, there has been an exponential growth in interest over knowledge and skill sets in developing successful startups/new ventures/entrepreneurial businesses. Given the critical role of entrepreneurship in world economy, it is imperative for students to have some basic knowledge of entrepreneurship and ways of successfully launching new ventures. The objective of this course is to acquaint students with unique challenges of entrepreneurial firms and the managerial implications. Features topics include characteristics of successful entrepreneurs, ways of discovering and selecting real business opportunities, mechanisms of setting up new ventures through proper consideration of legal, financial, management, and fund-raising issues, and designing strategies for managing rapid growth.

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Learning Outcomes On completion of this course, students will be able to: 1. Develop an understanding of the characteristics and attitudes of successful entrepreneurs, and enhance one’s ability to engage in entrepreneurial behavior by fostering an appreciation of one’s real talents, strengths and weakness and ways of exploiting them (LO1); 2. Have an appreciation of the entrepreneurial process by which real business opportunities – not just ideas – can be discovered and selected (LO2); 3. Recognize critical issues concerning preparation of a proper legal foundation for new ventures, venture team creation, and fund-raising issues faced by entrepreneurs (LO3); 4. Understand the critical issues in entrepreneurial management and strategies for managing rapid growth (LO4); and 5. Develop the communication and critical thinking skills needed to present and respond to critical questions related to one’s business model (LO5). Indicative Content Topics to be covered include the following major components: Part One - Introduction to Entrepreneurship Decision to become an entrepreneur Characteristics of successful entrepreneurs Importance of entrepreneurship to economy and society Part Two - Developing successful business ideas Recognizing Opportunities and Generating Ideas Feasibility Analysis Industry and competitor analysis Developing an effective business model Part Three – Moving from an idea to an entrepreneurial firm Preparing a proper ethical and legal foundation Building a New-Venture Team Assessing a New Venture’s Financial Strength and Viability Getting Funding or Financing Part Four – Managing and Growing an entrepreneurial firm The Importance of Intellectual Property Unique Marketing Issues Confronting New Ventures Strategies for Firm Growth Teaching Method The basic method of instruction will be through lectures coupled with assignments, cases, and projects. Students will be required to apply concepts to analyze current business issues, and significant use will be made of cases of multinational businesses operating in Asia and of Hong Kong firms operating in the international environment.

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Measurement of Learning Outcomes 1. Product/service feasibility reports require students to develop original new concept statements, collect

target customers’ feedback to revise and strengthen the concept, and test the finalized concept’s overall feasibility through a survey of target customers’ perceptions over product desirability and purchase intention. Student will learn about the processes by which real business opportunities – not just ideas – can be discovered and selected. (LO2)

2. Real entrepreneurial cases on funding application require students to take up the role of venture capitalist and apply conceptual knowledge in making judgments over: a. strength of the new venture team, b. strength of the opportunity, c. strength of the industry, and d. strength of the business model under investigation. Additional research tasks require students to collect information from web sites on the latest news on the involved new ventures applying for funding. The conceptual analysis together with research findings all related specifically to entrepreneurship should help students decide whether a particular venture should or should not be funded. Students will be required to provide an oral presentation to account for the resultant funding decision, and address questions from the class and the instructor. (LO1, 2 & 5)

3. A series of learning activities require students to apply concepts and skills of entrepreneurship management in tackling application exercises (LO1, 2, 3, & 4)

4. Final examination require students to apply past learning in addressing examination questions under the entrepreneurship perspective. (LO1, 2, 3 & 4)

Assessment

(1) Continuous Assessment: 50% Group assignment - “You be the VC” Funding Decision (20%) Individual assignment - Product/Service Feasibility Report (25%) Learning Activities Preparation and Class participation (5%)

(2) Final Examination: 50%

_____________________________________________________ Total: 100%

Importance of Academic Honesty Students shall be aware of the University regulations about dishonest practice in course work and the possible consequences as stipulated in the Regulations Governing University Examinations. Required/Essential Readings Barringer, Bruce R. and Ireland R. Duane, Entrepreneurship: Successfully Launching New Ventures, Pearson Education Inc., 5th edition (2016) Recommended/Supplementary Readings 1. Robert Hisrich, Michael Peters and Dean Shepherd (2010), Entrepreneurship, 8th edition, McGraw Hill.

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Guidelines for group assignment on Funding Decision for an Emerging Enterprise:

An individual group will take up the role of venture capitalist and apply conceptual knowledge in making judgments over strength of the new venture team, strength of the opportunity, strength of the industry, and strength of the business model of a real enterprise under investigation, and decide whether a particular venture should or should not be funded. Each group will present their analysis and funding decision to the other groups, and respond to critical questions related to their judgment and decision. Each presentation will take no longer than 25 minutes. Group analysis should be tabulated and handed in to the instructor BEFORE presentation. Comment/Score

strength of the new venture team 1 2 3 4 5

strength of the opportunity 1 2 3 4 5

strength of the industry 1 2 3 4 5

strength of the business model 1 2 3 4 5

Average Score

_________ out of 5

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Guidelines for individual assignment on Product/Service Feasibility Report:

An individual student is required to conduct a feasibility analysis for a product/service of his/her own choice. The output is a feasibility report (8 pages double-spaced) consisting of two parts. In the first part, you should describe how you collect relevant target customers’ feedback to arrive at the final concept statement. Specifically, you need to write up an original concept statement consisting of:

� a description of the product or service being offered, � the intended target market, � the benefits of the product or service, � a description of how the product will be positioned relative to similar ones, and � a description of how the product or service will be sold and distributed.

After the concept statement is developed, you should show it to at least 5 people who can provide seasoned feedback. You can then use the resultant feedback findings to test the potential viability of this product/service concept. You should revise the concept statement to come up with an even more attractive finalized product/service concept. In the second part, you should collect opinions from a set of 30 target customers concerning their perceived desirability of the finalized product/service concept. Then, you write up your report by summarizing the perceptions over various aspects of product desirability, and likelihood of purchase at various price levels, to arrive at the ultimate decision of feasibility.

Each student should hand in a product/service feasibility report during class on 25 April 2017 (TUESDAY)).

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Class Schedule

(* 27/1 to 2/2 Chinese New Year Holiday; **4 April 2017 Ching Ming Festival Holiday)

Week Ch Tuesdays 10:30 – 12:00; SEK107

Thursdays 14:00 – 15:30; LKK102

In-Class Acts

Venture Capital Funding Presentation (Thursdays)

PART I: Decision to Become an Entrepreneur

17/1 1 Introduction to Entrepreneurship

LA1

Part II: Developing Successful Business Ideas

24/1 * 2 Recognizing Opportunities and Generating Ideas

LA2

7/2 3 Feasibility Analysis LA3

14/2 4

Developing an Effective Business Model

LA4

21/2 5

Industry and Competitor Analysis

1st “YOU BE THE VC” 4.2: Mango Health (App reminder for medicine)

28/2 6 Writing a Business Plan

2nd “YOU BE THE VC” 1.1: Wello (Online trainer)

Part III: Moving from an Idea to an Entrepreneurial Firm

7/3 7 Preparing a Proper Ethical and Legal Foundation

14/3 8 Assessing a New Venture’s Financial Strength and Viability

LA5 3rd “YOU BE THE VC” 5.1: Beyond Meal (Plant-based food)

21/3 9 Building a New-Venture Team

4th “YOU BE THE VC” 2.1: Nature Box (Snack subscription)

28/3 10 Getting Funding or Financing LA6

Part IV: Managing and Growing an Entrepreneurial Fi rm

4/4 ** 11 Unique Marketing Issues Confronting New Ventures

11/4 12 The Importance of Intellectual Property

5th “YOU BE THE VC” 8.2: How do you roll? (Build your own sushi)

18/4 13 Planning for and Evaluating the Challenges of Growth

LA7 6th “YOU BE THE VC” 12.1: KaZam Balance Bike (Teaching kids to ride)

25/4 Course Review and Exam Briefing

Submit your feasibility analysis report during class on 25 April 2017 TUESDAY)

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7 Learning Activities (Please hand in your written preparation in class for the respective activity)

LA Learning Activities LA1 Introduction to

Entrepreneurship (CH 1)

Make a list of 3 things that you are passionate about (e.g. art, music, fitness, spending time the family). Don’t worry if they don’t seem like logical choices for dream businesses. Now brainstorm business ideas that might align with each of your passions (P59 application question 1)

LA2 Recognizing

Opportunities and Generating Ideas (Ch 2)

PREPARE: Read “Savvy Entrepreneurial Firm” (page 78) -Evaluate Xhale’s idea and Vestagen’s idea on all 4 dimensions of an opportunity. Rank each idea on a scale of 1 to 5 (5 is high) regarding how strongly it satisfies the four dimensions.

LA3 Feasibility

Analysis (Ch 3)

PREPARE: Read Case 3.1 Tommy John (pages 126-128) - Make a list of people whom Tom talked to when developing his prototype. What insights does this list provide? - Write a concept statement for Tommy John - Complete a First Scree analysis for Tommy John

LA4 Developing an

Effective Business Model (Ch 6)

PREPARE: Read “Savvy Entrepreneurial Firm” (pp 209-10) -Evaluate on a scale of 1 to 10 (10 is high) the 4 separate components (core strategy, strategic resources, financials, and operations) of the business model each of the following businesses:

� Warby Parker � Shopkick � SunRun

-How strong of a business model does the company have? Explain your answer.

LA5 Assessing a New

Venture’s Financial Strength and Viability (CH 8)

PREPARED: Read “Savaar Entrepreneurial Firm” P288 -Which of the three CEO will you hire? -Ask your friends to explain their choices to you.

LA6 Getting Funding

or Financing (Ch 10)

According to information in the chapter, the three areas that receive the most funding from business angels are software, health care services / medical devices and equipment, and biotech. Why do you think business angels are attracted to start-ups in these areas? Why wouldn’t someone starting a new soup and salad restaurant, for example, be equally interesting to a business angel?

LA7 The Importance

of Intellectual Property (Ch 12)

PREPARE: Read “Savvy Entrepreneurial Firm” (pp 191-2) -In what ways do each of the following three companies’ features redefine the customer experience in their industries:

� HomeMade Pizza Company � Hot Mama � J. Hilburn?

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Entrepreneurship – Product/Service Feasibility Report Individual Assessment and Marking Rubric

Assessment Criteria

% Outstanding (8-10)

Acceptable (5-7)

Under-performing (0-4)

Students are able to generate original product/service ideas or concepts

40 Demonstrate originality via solid consideration of the four hallmark properties of successful business ideas, consisting of: � Attractiveness (size/growth), � Durability (PEST trends), � Timeliness (niche segment), � Value-added

(problem/solution).

Demonstrate originality via some consideration of properties of successful business ideas.

Fail to demonstrate originality via proper consideration of properties of successful business ideas.

Students are able to collect target customers’ qualitative feedback to revise and strengthen the concept.

20 Manage to collect a lot of meaningful feedback from target customers to improve the initial concept in many significant important ways.

Manage to collect some meaningful feedback from target customers to improve the initial concept in some important ways.

Fail to collect meaningful feedback from target customers to improve the initial concept.

Students are able to test the finalized concept’s overall feasibility through quantitative survey findings over target customers’ perceptions over product desirability and purchase intention.

20 Use all findings from buying intention survey to decide desirability of product concepts, and demand sufficiency.

Use some findings from buying intention survey to decide desirability of product concepts, and demand sufficiency.

Fail to use findings from buying intention survey to decide desirability of product concepts, and demand sufficiency.

Students are able to write up a feasibility report that summarized what the student learnt about the processes by which real business opportunities can be discovered and selected.

20 A fully professional feasibility report with good formatting, use of tables and charts, referencing and appendices, covering important aspects of new product/service concept: � Description of features of

the new offering; � Identification of new niche

segments; � Spelling out of the benefit

appeals; � Description of positioning;

and � Introduction of the

management.

A satisfactory feasible report although missing some key elements or lacking in structure or grammar

A poor report, confusing in structure or grammar. Fails to provide adequate tables, charts, referencing or appendices

Total Score 100