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CHANCE TO TURN IDEAS INTO BUSINESSES
NOVEMBER 5, 2000 -
THE STAR
ON Tuesday, Venture 2001 will be officially launched. Jointly
organised by Mesdaq, McKinsey and the Malaysian Institute of
Management, Venture 2001 is a business plan competition
seeking to convert potential ideas into actual business,
attracting capital into start- up companies and fostering an
entrepreneurial environment in Malaysia. Priority will be
given to businesses relevant to the opportunities of the new
economy.
We have no shortage of ideas, business ecumen or funding. But
we do have problems bringing the three together.
In the 1999 Pikom awards, a young 26yearold medical doctor won
an award for a technical idea, but had no business sense nor
sufficient funds to convert the idea into a business
proposition.
MBA students of the Malaysian Institute of Management
regularly "create" a new business as part of their academic
requirements, nut fall short of actual execution.
Bankers and venture capitalists seek out new business
opportunities, but supporting business plans are not well
constructed.
As a result, the number of well thought out start-up companies
with good prospects for growth and ' eventual public listing
is relatively small for a country anxious to embrace the new
economy and to drive towards development.
Supporting the entrepreneurial spirit and translating it into
value creation business companies is not a new concept. In the
United States, several business schools have organised
business plan competitions to route students to
entrepreneurial activities.
In New Zealand, the Great New Zealand Business Venture
recently attracted 1,450 entrants. Singapore's Start-Up
Singapore is a national techno-venture business plan
competition organised by the National University of Singapore
Centre for Management of Innovation & Technopreneurship and
the National Science & Technology Board to foster interest in
and give impetus to technology-based start-ups.
The outcomes of such competitions have been most encouraging.
For example, a 1996 German initiative resulted in the creation
of 30 companies and raised more than RM250mil in venture
capital fund. A similar initiative more recently in India
raised more than RM75mil for the top 15 business ideas
Learning from the experience of other countries, Venture 2001
will reach out to the prospective stakeholders - venture
capitalists and sponsors, students and entrepreneurs, coaches
and mentors, advis~6rs' and judges - to define the convergence
of interests in propelling Malaysia's technology drive at
ground level.
Conceptually, there are three phases in the competition. Phase
one delivers a business idea with a focus on the product or
service, and its contribution to customer value. The idea will
be screened for vision, practicality, scalability and team
commitment and skills. Submission (of approximately five
pages) is by December 2000, and prizes will be awarded for 10
best ideas valued at RM2,000 each.
Phase Two delivers a draft business plan with a focus on
market strategy. Successful ideas will be coached to business
plan stage with special attention to market potential,
customer, alliances and funding. Submission of the draft
business plan (of approximately 20 pages) is by March 2001
and, again, prizes will be awarded for the best 10 business
plans valued at RM3,000 each.
Phase Three delivers a detailed business plan ready for
financing and implementation. It is the prerequisite to the
business start-up, and submission of the plan (of
approximately 30 pages) is by May 2001. The winner will
receive RM30,000, the second prize RM20,000 and the third
RM10,000.
As the exercise is to establish a culture of entrepreneurship,
it is hoped that Venture 2001 will not be just an event, but a
stimulus to all stakeholders to give more attention and
allocate more resources towards, institutionalising business
start-ups.
For example, universities and colleges can not only encourage
their faculty and students to take part in the competition but
also, perhaps more importantly, Introduce courses on
entrepreneurship and business startups, establish information
centres with linkage to experienced entrepreneurs, and create
entrepreneurs clubs.
Likewise, venture capital companies can not only sponsor the
competition and help assess the business plans, but also
conduct regular entrepreneurship forums so that aspiring
entrepreneurs can have a heady platform to make their
presentations to solicit funds.
Other players, like business start-up experts and
entrepreneurs, can contribute beyond evaluating business plans
and network with competition participants to leading courses
at universities, and holding regular events to promote
networking between experienced and aspiring entrepreneurs.
The acid test of a business start-up is commercial viability
and sustainability. Venture 2001 will force this consideration
to be assessed upfront and at every phase of the competition.
If an idea can convince the judges, pass the scrutiny of
bankers and venture capitalists, and win the business plan
competition, the prospect of public listing is indeed very
good.
As the market is the determinant of financial success, Venture
2001 is open to all entrepreneurs, professionals, students and
academics with a passion for creating a technology e-commerce
related business, irrespective of age, race or gender.
It is advisable to compete as a team of four participants with
a combination of talents in technology, business, finance and
markets.
Just log on to www.venture.com.my to register and to obtain
more details. It costs nothing to participate.
The common interest of Mesdaq, McKinsey and MIM is to
establish a climate that stimulates more business start-up to
contribute to wealth creation of the knowledge economy of
Malaysia.
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