同济大学：《创业学》课程教学资源（教案讲稿）03 Opportunities in China

同源大学 TONGJI UNIVERSITY Opportunities in China Dr.Pan Xuan School of Economics and Management Tongji University

Opportunities in China Dr. Pan Xuan School of Economics and Management Tongji University

Q:The process of new The Timmons Model of the Entrepreneurial Process venture creation starts from: Creativity a. Money b. Strategy Opportunity resources d opportunity Network 9 Team Business Plan f Business Plan Fits and Gaps Ambiguity Exogenous Forces Leadership The shape,size and depth of communication Team the opportunity established the required shape,size,and Uncertainty Capital Market Context depth of both the resources and the team. Sustainability:For Environment,Community,and Society Entrepreneurial Process and the Timmons Model Tong ji University

Entrepreneurial Process and the Timmons Model The Timmons Model of the Entrepreneurial Process opportunity Q: The process of new venture creation starts from: a. Money b. Strategy c. Opportunity d. Network e. Team f. Business Plan The shape, size and depth of the opportunity established the required shape, size, and depth of both the resources and the team. communication resources Business Plan Fits and Gaps Team Ambiguity Creativity Exogenous Forces Leadership Uncertainty Capital Market Context Sustainability: For Environment, Community, and Society

同濟大学 TONGJI UNIVERSITY Definition of Opportunity Summary of Opportunity Spawners and Drivers What will be the main changes In China? Opportunities for Start-up:The world's most intriguing consumer market

 Definition of Opportunity  Summary of Opportunity Spawners and Drivers  What will be the main changes In China?  Opportunities for Start-up: The world's most intriguing consumer market

同濟大学 TONGJI UNIVERSITY Definition of Opportunity Definition of Opportunity Has the qualities of being attractive,durable,and timely and is Opportunity anchored in a product or service,which creates or adds value for its buyer or end user. A Good Idea is not Necessarily a Good Opportunity For every 100 ideas presented to investors in the form of a business plan or proposal,usually few than_4get funded. ·More than 80 of those rejections occur in the first few hours;another 10-15 are rejected after investors have read the business plan carefully. ·Fewer than 10 attract enough interest to merit a more due diligence thorough review that can take several weeks or months

• Fewer than _______% attract enough interest to merit a more due diligence thorough review that can take several weeks or months. • More than ______% of those rejections occur in the first few hours; another _____________% are rejected after investors have read the business plan carefully. Definition of Opportunity Has the qualities of being attractive, durable, and timely and is anchored in a product or service, which creates or adds value for its buyer or end user. A Good Idea is not Necessarily a Good Opportunity • For every 100 ideas presented to investors in the form of a business plan or proposal, usually few than ______ get funded. Opportunity 4 80 10-15 10 Definition of Opportunity

同濟大学 Summary of Opportunity Spawners and Drivers... TONGJI UNIVERSITY Summary of Opportunity Spawners and Drivers... Role of Change/Chaos/ Opportunity Creation Discontinuity Cellular,airlines,insurance,telecommunications,medical, Regular changes pension fund management,financial service,banking. tax and SEC laws,new societal and/or environmental standards and expectations Moore's law---computer chips double productivity every 10-fold change in 10 yeas or 18 months:financial service,private equity, less consulting,internet,biotech,information age, publishing Reconstruction of value chain Superstores ---Staples,all publishing:autos;internet and channel of distribution sales and distribution of all service Proprietary or contractual Technological innovation:patent,license,contract. advantage franchise,copyrights,distributorship

Summary of Opportunity Spawners and Drivers... Role of Change/Chaos/ Discontinuity Regular changes Opportunity Creation Cellular, airlines, insurance, telecommunications, medical, pension fund management, financial service, banking, tax and SEC laws, new societal and/or environmental standards and expectations 10-fold change in 10 yeas or less Moore’s law --- computer chips double productivity every 18 months: financial service, private equity, consulting, internet, biotech, information age, publishing Reconstruction of value chain and channel of distribution Superstores --- Staples, all publishing; autos; internet sales and distribution of all service Proprietary or contractual advantage Technological innovation: patent, license, contract, franchise, copyrights, distributorship Summary of Opportunity Spawners and Drivers

同诱大学 What will be the main changes In China? TONGJI UNIVERSITY What will be the main changes In China?-institutional Land System:from ambiguous to clear,hopefully In the sectors of finance,petroleum,electricity,railway,telecommunication, resource exploitation and public utilities,some investment projects will be open to non-state-owned capital Jiangsu Province Continue and extend the Shanghai Pilot Free-trade-zone Shanghai Zhejiang

What will be the main changes In China? - institutional • In the sectors of finance, petroleum, electricity, railway, telecommunication, resource exploitation and public utilities, some investment projects will be open to non-state-owned capital • Continue and extend the Shanghai Pilot Free-trade-zone What will be the main changes In China? • Land System: from ambiguous to clear, hopefully

同濟大学 What will be the main changes In China? TONGJI UNIVERSITY What will be the main changes In China?-Societal Three "100 million"about urbanization --Give 100m migrant peasant workers urban Hukou --transfer 100m from rural to towns and cities in middle and west regions(not to crowded east coastal regions) -reconstruct shantytowns and "village-in-city"for 100m Security Housing Plan:7 million set new start Social Service Service Sector more open: hospital,school,nursing home.... Social WelfareSystem Reform_Pension/medicare/unemployment...:increase the average benefit level,reduce the gap between public sectors and private sectors,urban and rura

What will be the main changes In China? - Societal • Security Housing Plan: 7 million set new start What will be the main changes In China? • Three "100 million" about urbanization -- Give 100m migrant peasant workers urban Hukou -- transfer 100m from rural to towns and cities in middle and west regions (not to crowded east coastal regions) -- reconstruct shantytowns and “village-in-city” for 100 m • Social WelfareSystem Reform_Pension/medicare/unemployment... : increase the average benefit level, reduce the gap between public sectors and private sectors, urban and rura. • Social Service Service Sector more open: hospital, school, nursing home

同海大学 What will be the main changes In China? TONGJI UNIVERSITY What will be the main changes In China?-Economical The growth rate of resident income should be as fast as that of GDP.The goal for per capital Disposable Income Growth Rate is 7%. Financial environment more marketization:interest rate liberalization,IPO decided by the stock market... Convertibility and internationalization of RMB capital account,cross-border investment ·investment ·Exportation .Consumption

What will be the main changes In China? - Economical What will be the main changes In China? • The growth rate of resident income should be as fast as that of GDP. The goal for per capital Disposable Income Growth Rate is 7% . • Financial environment more marketization: interest rate liberalization, IPO decided by the stock market... • Convertibility and internationalization of RMB capital account, cross-border investment • investment • Exportation •Consumption

同济大学 What will be the main changes In China? TONGJI UNIVERSITY What will be the main changes In China?-Demographic Family Planning Policy relaxed:couples where one partner is an only child will now be allowed to have a second child Aging Problem:China is still a demographically young nation,but facing a daunting age wave. While today's developed countries became affluent societies before they aging,China may be the first major country to grow old before it grows rich

What will be the main changes In China? - Demographic What will be the main changes In China? • Family Planning Policy relaxed: couples where one partner is an only child will now be allowed to have a second child • Aging Problem: China is still a demographically young nation, but facing a daunting age wave. While today’s developed countries became affluent societies before they aging, China may be the first major country to grow old before it grows rich

同濟大学 What will be the main changes In China? TONGJI UNIVERSITY One-Child Policy ·Launched in1980 "Baby boomers"entered their childbearing years Population"hawks"argued to tighten policy ·“one-and-a-Half-Child Policy”after1984 In most rural areas,if the first child is a girl,a secondchild allowed,"try for a son" Its implementation delegated to local government It subjects all Chinese households to monitoring of fertility and births

• Launched in 1980 “Baby boomers” entered their childbearing years Population “hawks” argued to tighten policy One-Child Policy • “One-and-a-Half-Child Policy” after 1984 In most rural areas, if the first child is a girl, a secondchild allowed, “try for a son” Its implementation delegated to local government It subjects all Chinese households to monitoring of fertility and births. What will be the main changes In China?