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Small business, entrepreneurship and franchise (Franchising: licensing to…

- - - - gain fast and well distribution without high cost of constructing and operating -> more capital to expand production and advertising
      - can ensure through agreement that outlets are maintained and operated to standard
      - franchisee can success -> more sale -> higher royalties to franchisor
    - - start business with limited capital and make use of business experience
      - have guaranteed customers
      - franchisor give advice and guidance and usually dont have to pay
      - receive material to use in local advertising and sponsor by franchisor in national promotional campaign
      - minimise cost of advertise, supply, business necessity by purchasing with other franchisee
- - - - Nascent entrepreneurs
        – People start businesses, not market characteristics, macro-economic conditions, regional attributes, presence of opportunities, availability of financing, social networks
        – Are currently giving serious thought to the new business (e.g. considering to establish a business, writing a business plan, or registering the new company)
        – Are also engaged in some possible entrepreneurial activities (e.g. looking for staff, facilities and equipment...)
      - Gestation activities refers to:
        –Investing the money in the new business
        –Forming a legal entity
        –Making income from the business (e.g. having customers and sending invoices)
  - - - •Pinchot’s commandments
        –Ask for advice before resources
        –Do any job needed to make your project work, regardless of your job description
        –Honor your sponsors
        –Forget pride, spread credit widely
        –Underpromise and overdeliver
      - •Various
        –Nature of large organisation: impersonal, hierarchical, need for control, corporate culture, etc.
        –Short-term profits
        –Inadequate corporate support & unrealistic corporate expectations
        –Shortage of entrepreneurial talent
        –Inappropriate compensation methods