Entrepreneurship: New Business

Topics: Business, Management, Corporation Pages: 10 (3416 words) Published: November 2, 2009

Over the past one or two decades, the IT industry in Singapore has grown tremendously. The IT industry is foundational to the creation of value in this new world economy. This is why the Singapore government promotes the IT industry, because they want to use this to gain competitive advantage against other countries. Businesses invest in the IT industry, because they believe that this industry offers growth and profits. IT plays an important role in establishing and maintaining a company.

Based on the IDA Annual Survey on Infocomm 2008, there are a total of 145,500 jobs in the Infocomm industry, out of which, 6,500 are vacancies. The bulk percentage of vacancies (14.5%) falls under the category called Infrastructure Support. In summary, there is a lack of resources in the Infrastructure Support space in the Infocomm industry in Singapore today. The latest Singapore Department of Statistics shows that there are a total of 5,943 Information & Communication Services establishments in Singapore. Out of which, 4,052 are IT Services companies. In general, IT services comprise of Hardware, Software, Telecommunication Services, Content Services & Infrastructure Support. Coupled with the data gathered under the IDA Annual Survey on Infocomm 2008, there is still room for entrance of companies which offers IT Infrastructure Support.

This assignment report is done as part of the Entrepreneurship Module in the Bachelor program in Business Administration. The content of this report is based on numerous interviews with Mr Pher Ong, founder and Managing Director of TACHub Systems (Asia) Pte Ltd. The reason why TACHub was chosen as the company of choice is because of its status of a Small Business and unique offerings in its business.

The relationship between Individuals and opportunities
Mr Pher Ong is a young entrepreneur who left his job of 6 years as an IT Support Engineer to pursue his dreams and ideas of an IT Professional & Services company with a unique concept of educating customers on IT improvements and revenue increment. Pher, with his profound knowledge in Information Technology, started his IT Services company as a Sole-Proprietor back in 1st June 2006. He picked up the passion to assist and educate his customers in their IT Infrastructure and facilitate their business via proper IT Infrastructure setup. The reason he went into Sole-Proprietorship is because he was unsure of his own business model and the success of his company with only a limited breath of customers. However, his business picked up tremendously within the first 3 months into the business. With many companies seeking his professional services, Pher began to feel exposed to financial risks such as his personal liabilities being a Sole-Proprietor. He then registered his company under private limited as TACHub on 1st January 2007. Pher then tried to apply for the Micro-loan from Spring Singapore but was subsequently rejected because of the nature of his business being in IT company. However, it did not really matter to him as business soon picked up not long after he started his new business. In 1st February 2007, he even managed to increase his company’s paid-up capital to S$10k from a mere S$2 when he first started. Although there is higher set up and maintenance fees involved in private limited companies compared to sole-proprietorship legal type due to tighter operation regulation. It allows perpetual existence and spread of ownership. The dialogic relation between Pher and the opportunity is Entrepreneurial Reproduction. There is an organization called the Spirit of Enterprise (www.soe.org.sg) that actively promotes entrepreneurship in Singapore. They have run networking sessions among like-minded SME entrepreneurs which have proved to be very helpful to emerging entrepreneurs.

Ability to determine business direction.- The main advantage of starting a new business is able to mould the direction on the new business, for...
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