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Network Express Courier Service PTE LTD is the courier company that provides delivery service within Singapore and other countries like Malaysia, China, Myanmar, Vietnam, Thailand, and Indonesia. Network Express Courier Service PTE LTD founded by Mr. V.S. Kumar that has delivery service as their main business that knowing the struggle that faced in their employee from the work experience in the competitive and fast paced work environment, this situation makes Network Express Courier Service PTE LTD to expand their business to global market by offering service with high quality in the competitive price (Network Courier 2010). As the result Network Express Courier Service PTE LTD become one of the largest courier service company in the Singapore that develop innovation as their strategy like having their own Track and Trace system that called NETRACE to enhance the service by creating greater values in their deliveries and collection.
Definition of entrepreneurship
Someone can be categorized as an entrepreneurship if the person have ability to create and build something from nothing that can be inspired other person and to perform this activity the person must have creativity inside them than by having the analyzing skill. Based on Mohanty (2005, 11) the definition of entrepreneurship have a different various like Joseph A. Schempeter that defined entrepreneurship to be more focused on the creativity activity by doing something that out of ordinary, but according to A.H. Cole entrepreneurship is an activity of individual or group to initiate or maintain profit by producing and distribute goods and services. From these different various opinions it can be decide that entrepreneurship is an individual that create new business from their creativity and their experience in work life that makes them have certain experience to fulfill their objectives.
Mr.V.S.Kumar can be categorized as the entrepreneurship because he started courier business when considering the situation of work environment in the Singapore that makes the employees must felt certain struggle in their career like competition between workers. As the result Mr. Kumar decide to open a courier business based on his experience in the courier business as the dispatch rider for 28 years and from this experience decide to open a local courier business Network Express Courier that provide the customer with maximum quality service with competitive price.
Characteristic of entrepreneurship
The entrepreneurship is not just categorized people based on their creativity to make a new business that never have been in the market or have work experience that makes them know about market condition in the local country and decide the business that will perform in the local country based on the condition of the market. From this analysis it shows that entrepreneur needs several characteristic that will help them in their business and if they do not have these characteristic it shows the entrepreneur will have lower chances in their business success. These characteristic can be the decision making, risk taking, innovation, skillful management, accepting challenge, building organization, and mobilization resource but based on Carland et al ( 1996, 3) there are another characteristic that must need by the entrepreneurship it is need of achievement and the ability to identify and solve problems.
These characteristic is need by the entrepreneurship to maintain and manage their business in certain condition like having decision making it makes the entrepreneur to decide the course of action from several of alternative that given to achieve their goals ,having risk taking that makes the entrepreneur to have responsibility for every loss that may occur in their decision making process and they will analysis the situation to reduce the risk that will occur to obtain certain profit, and having a mobilization of resource to ensure the entrepreneur did not have scarcity problem that will lead to many activities that will result to accomplishment of goal also having innovation that will lead the entrepreneur to have new goods and service in the market by processing a new development in technology for performing organizational function.
Some characteristic in the entrepreneurship is not just to maintain their business but also to maintain the organizational by having building organization to facilitate the organization by giving the authorities and having a proper leadership, skillful management is to improve the organization by initiate and design an organization improvement project that will related to organization opportunities, and another characteristic like need of achievement of the entrepreneur to start their business can motivate the organization performance and the entrepreneur must have ability to identify and solve problems because by having this characteristic the entrepreneur can know the problem inside their organization and can make a decision to solve the organization problem.
From these characteristic the entrepreneur like Mr. V. S. Kumar that owned Network Express Courier Service can have a competitive advantage in their product, service, and innovations and makes the company to become more market driven and customer oriented by fulfill the customer need and have positive relationship with the customer. Even though the characteristic can help the company development the entrepreneur need three dimensional process like innovation for seeking a new creativity in the product and service that will develop the organizational function, risk taking dimension were the entrepreneur to commit significant resource into opportunities by having a reasonable chance of costly failure and their attempt to manage the risk, and pro activeness is the implementation of the strategy to make the objectives of the company happen through certain ways ( Davis, Morris, and Allen 1991, 44).
Source of finance for entrepreneurship
Many entrepreneurs that started their business must have certain capital to startup their business; the entrepreneur can have this capital from different type of source that available to startup the business like equity capital and debt capital (Crane and Meyer 2011, 190). The equity capital is the investment that made by individual, partnership, or some corporation in the return for the some form of the ownership through the purchased of the stock based on the company performance usually this kind capital will makes the share in the company must be divided between the founders and investors for example VC. In the debt capital the entrepreneur tries to borrow certain amount of money to fulfill their payment for the salaries and other expenses like operating or electricity that needed for their business operation for example bank finance or bank loans.
This two equity have different effect towards entrepreneurship but for entrepreneur that interest to having higher stake by using VC prefer having bank finance as their preference because from VC the entrepreneur can have high share in their venture returns ( Bettignies and Brander 2007,826).From this two source it shows that the entrepreneur will have some disadvantage if they to depend on in the debt capital because with the debt capital the entrepreneur that just startup their business is having a short cash and they must meet their time of payment whether their business having profit or not also based on (Black and Strahan 2002,2811) bank loan will provide high liquidity towards small company or even startup company that makes the entrepreneur will bounded by the liquidity constraints that will affect the business performance.
From this point of view many entrepreneur find other source in their financing to startup their business without depend on the investor or having loan from bank. This source of financing can be from the entrepreneur own saving, family and friends saving, angel investor, venture capital, and direct strategic investment (Crane and Meyer 2011, 191). The entrepreneur own saving is the source of financing that came from the entrepreneur personal saving in their business and from this saving the entrepreneur can have many different potential source inside founder self financing like personal cash that will be invested directly into company in the form of equity. The family and friends can be another source for the finance because these individual can be the entrepreneur support network and their source for the startup capital problem. For angel investor they are considering as the group of people that have reasonable performance objective in the venture that invested their own money in certain investment and this angel investor like to help new entrepreneur by sharing their knowledge when the entrepreneur startup their business like having difficulty in customer payments or supplier. The venture capitalist is the important segment in the source of financing because from this source entrepreneur can have certain amount in their capital for their business by provide support to innovative and promising company for certain years until it became mature.
In the source of financing problem it can be determined that Mr. V.S. Kumar as the founder of network express courier service depend on the personal saving that came for the work salary for 28 years and also came from the support of the friends or family that have interest in the courier business that lead Mr. V.S. Kumar to open a courier business. Because of the startup of the business the company cannot use debt equity as their capital source until the company can gain profit.