TOPIC 1: Creating and Developing Businesses in a New Era

Trends in focus for the 21st century

1. E-commerce
While e-commerce was on a gradual rise since the past decade, the COVID-19
pandemic gave e-commerce a big boost.

Shopify, one of the biggest e-commerce enabling platforms - Reported $4.6 billion in
total revenue for for 2021, reflecting a 57% year-over-year increase.

While this shouldn't come as a surprise as a major trend, take some time to think
about the opportunities that could come out of this paradigm shift in consumer habits
and attitudes.

Consider consumers' growing expectations and emerging pain points created from e-
commerce - And also consider the same for companies developing their e-commerce
strategies.

Opportunities may emerge in several industries - Retail, logistics, data analytics,

technologies that enhance consumer experience, just to name a few.

2. Artificial Intellegience
The development of AI, or Artificial Intelligence, has seen significant progress very
recently. What was once science fiction, has turned into reality.

A relatable impact of AI can be seen in the recent developments at ChatGPT.

ChatGPT is a natural language processing tool driven by AI technology that allows
you to have human-like conversations and much more with the chatbot. The language
model can answer questions and assist you with tasks like composing emails, essays,
and code.

This is an emerging trend that will force us to consider the disruption AI brings, for
better or worse.

To put things into perspective, AI can be perceived to potentially replace some of our
jobs. On the other side of the coin, AI may help us do our work better. When the
calculator was first invented, we had the same fear that math in school would no
longer be relevant. Instead, calculators have freed us up to focus on more
sophisticated operations.

Of course, AI is not limited to just chatbots. AI has been used to create innovations in
finance (robo-advisors), smart assistants (Apple's Siri, Amazon's Alexa etc.), and self
driving cars, just to name a few. The opportunity to automate, or innovatively disrupt
current processes, is part of the constant drive to improve the quality of life.

3. Evolving Nature of Work

Remote Work
 The way we approach our careers is drastically changing as a result of changes in
societal conventions and technological advancements in the workplace. These
developments have brought with them problems as well as opportunities.

The rise of remote work is one of the biggest transformations in the workplace. More
and more people are able to work from home or from anywhere in the world because
of the growth of high-speed internet and communication technologies like MS Teams
and Zoom. For those who may have previously been excluded from opportunities, this
transformation has opened up a world of *possibilities.

*Your role as an entrepreneurial thinker, is to think critically where might

opportunities pop up. Think: possibilities for new products/services that emerge from
this remote work example, could be targeted at new and unmet demands coming from
a growing work-from-home culture - Your alumni who started SECRETLAB, made
tremendous success during Covid. Consider why this is so, and pause to think now
about what other opportunities may be leveraged.

Gig Economy

The changing nature of work has also brought about new pain points, especially for
employees who may have previously relied on steady, full-time employment with
benefits. Today, a large number of workers are engaged on a contract or freelance
basis, which might offer more freedom and autonomy but also less guarantees and
safeguards.

The need for policies and programs that assist employees in adjusting to this new
reality, such as access to insurance and credit, has increased as a result of this
transformation. On that note, NTUC income came up with an enterprising new
product, in the form of micro-insurance to help gig-economy workers (food delivery
riders, ride sharing drivers etc.) attain insurance despite not having a fixed income.
Check out: https://www.snackbyincome.sg/

Types of entrepreneurship:

By definition, an entrepreneur is an individual who identifies a need in the marketplace and

works to fulfill it.

5 types:
1. Small Business Owners
Small business owners are entrepreneurs who launch and run a company primarily for
the purpose of making money and providing for themselves and their family. They
frequently cater to the demands of a local community while operating in a narrow
market with little resources. Small business entrepreneurs are frequently sole
proprietors, which means they are the only owners and in charge of all firm activities.

2. Social Entrepreneur
Social entrepreneurs form social enterprises which apart from being an actual
business, aims to address a social or environmental issue. They are frequently driven
by a desire to advance society and better the lives of others. Social enterprises are not
to be confused with charities - They operate as a business and do not rely on
 donations for their revenue. In fact, social entrepreneurs face challenges beyond a
normal business having to manage a "double bottom line". Apart from the need to
generate a profit to sustain the business, they often have to account for extra costs in
accommodating social causes.

3. Serial Entrepreneur
Serial entrepreneurs are those who launch numerous companies over their careers.
They are frequently motivated by a desire to develop new goods or services and to
address issues in various industries. Most serial entrepreneurs are driven by a desire
for financial gain. They have experience creating and growing enterprises, and often
have exit strategies in mind when starting up their businesses.

4. Innovator Entrepreneur
Innovator entrepreneurs launch businesses that aim to create innovative products or
services that challenge the industry status quo. They frequently have the drive to
upend established industries and alter how things are done as their driving force.
Entrepreneurs who are innovators are imaginative, risk-takers, and driven to succeed.
They frequently work in fields related to technology or science, and they might
develop new software, medical gadgets, or renewable energy technologies, among
other things.

5. Franchise Entrepreneur
Franchise entrepreneurs are entrepreneurs who start a business by purchasing a
franchise from an established company. Franchises offer entrepreneurs the
opportunity to start a business with a proven business model, brand recognition, and
support from the franchisor. Franchise entrepreneurs may operate in a variety of
industries, including fast food, retail, and hospitality. Eg. https://subway-
franchise.com/sg-en/franchisee

The circular economy, and the entrepreneur

How can entrepreneurs play a role in a circular economy?

Firstly, we live in a predominantly linear economy. In simple terms, we are stuck in a take-
make-waste economy.

Most of the products created for consumption, are done in a manner that takes for granted
that our resources will never run out.
According to the Circle Economy Foundation, more than 91% of what we take from the earth
is currently wasted.
An alternative to the Linear Economy model, is the Circular Economy.
The Circular Economy revolves around 3 principles:
1. Eliminating waste and pollution
2. Extending the use of products & materials
3. Regenerating natural systems
Many established business face a huge challenge in adopting business strategies that
contribute to promoting the circular economy - They have to audit, review, undo and redo
their current systems, processes and operations.
On the other hand, entrepreneurs have an opportunity to create their businesses from the
beginning, with the circular economy in mind.
Here are some business models that entrepreneurs can consider adopting, in line with creating
a circular economy.

1. Long Life Product

Create high quality products, to ensure their long lifespan. Sales is often the classic source of
revenue in such a business model. After-sales support contributes to quality perception. In
this business model, brands more often than not, have a reputation of good-value for money.

2. Hybrid
A business model that profits from the repeat sales of relatively cheap products, with a short
lifespan, that only functions together with a dedicated high-quality durable product. A couple
of examples would be printers and their accompanying ink cartridges, or coffee machines that
use coffee pods.

3. No Ownership
Instead of multiple owners of multiple (but the same exact) products, imagine multiple
owners sharing the use of just 1 unit of the same product. A no-ownership model is about
making money through providing access to a product, while its ownership remains with the
access provider. The customer gets to use a car, a washing machine, an office etc., all while
not owning any of them. Customers are usually charged based on duration on usage.

4. Gap exploiter
A Gap exploiter business model revolves around extending the lifetime of products from
other firms. They are called Gap Exploiters because they exploit product lifetime value gaps

Recovery

Facilitate the take-back and collection systems to extract usable materials from discarded
goods.

Case-in-point: https://www.weforum.org/agenda/2021/05/electric-vehicle-battery-recycling-
circular-economy/

Second hand trader

Takes back or repurchase a product, when the current user stops using it. Resells directly to a
new user - In most cases, maintains or refurbishes the used product first.

Case-in-point: Second hand fashion retailers, or you might know them a variation of them in
thrift stores. In another example, going an entire level up the value chain, Carousell.sg built
their platform to enable an ecosystem of buyers and sellers of second hand goods.

Repair service

Extends the functional life cycle of products through repairs and upgrades.