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Entrepreneurship Training Material for Maritime Sector

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Entrepreneurship Training Material for Maritime SectorENTREPRENEURSHIP TRAINING MATERIAL FOR MARITIME SECTORBUSINESS START-UP This training material (intellectual…
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Entrepreneurship Training Material for Maritime SectorENTREPRENEURSHIP TRAINING MATERIAL FOR MARITIME SECTORBUSINESS START-UP This training material (intellectual output - O2) has been developed within the framework of Erasmus+ KA2 Strategic Partnerships for VET project titled as “Searching the Extensive Application at Maritime Protocol (SEAMAP)” (Project No: 2017-1-TR01-KA202-045799). www.projectseamap.eu | www.see4sea.com This project has been funded by the Erasmus+ Program of the European Union. However, European Commission and Turkish National Agency cannot be held responsible for any use which may be made of the information contained therein.1Entrepreneurship Training Material for Maritime SectorCONTENT INTRODUCTION………………………………………………………………………..3 Martime Sector, Maritime Industry Trends, The Shipbuilding Industry Review in EU 1.THE BUSINESS ENVIRONMENT…………………………………………………….8 1.1 Features and components of the business environment…………………………8 1.2. Importance of business environment………………………………………...…..10 1.3. Types of business environment………................................................................... 112. THE INDIVIDUAL AS AN ENTREPRENEUR………………………………………..13 2.1. Definition .................................................................................................................. 13 2.2. The qualities and skills of a successful entrepreneur……………………………14 3.STARTING AND RUNNING A BUSINESS………………………………………..….21 3.1. Business start-up planning ................................................................................... .21 3.2. Business plan – definition ......................................................................................22 3.3. Audience .................................................................................................................. 22 3.4. Content .................................................................................................................... 22 3.5. How to write a business plan ................................................................................ 234.RISKS IN A NEW BUSINESS………………………………………………………..335.BUSINESS ETHICS ....................................................................................................... 346.Needs questionnaire ........................................................................................................ 36 Entrepreneurial Characteristics— A Personal Review and Assessment…………….37 Entrepreneurial Skills— A Personal Review and Assessment……………………….38 Are You a Potential Entrepreneur? Another Point of View…………………………407.HOW TO ESTABLISH A COMPANY (Turkey, Poland, Spain, Romania)..……….438. RERERENCES & LINKS……………………………………………………………….51 2Entrepreneurship Training Material for Maritime SectorINTRODUCTIONMaritime Sector The maritime sector is of crucial importance to modern societies. Nevertheless, general public have a limited perception and appreciation of its influence and role as an essential element in terms of social and economic development, and as a potential source of excellent employment and career opportunities, with several million people currently working in activities and companies directly and indirectly related to oceans and seas worldwide. Historically, the shipping and fishing industry have experienced a continuing trend of increase both in their fleets and in the total trade volume and fishing capacity respectively. Thus, shipping has long been the major form of transportation, as well as an essential communication link connecting coastal cities, countries and continents. Next to rail transportation, water transportation is economically and environmentally the most efficient way to travel or transport merchandise; and, nowadays, around 90% of world trade is carried by the international shipping industry. In parallel to the extraordinary increase of traditional sea-related activities, the maritime sector has experienced a significant qualitative and quantitative expansion with the appearance and development of two new industrial growth poles: the offshore oil exploration and production industry, and the cruise sector. The enormous growth of world population and the subsequent increasing of energy needs, both in developing and developed countries, call for an increase in the offshore exploration and production of hydrocarbons. A new era of energy production made possible by many achievements in exploration, drilling, storage and transportation techniques comparable to the space industry, engaging many countries in drilling operations off the coast of 74 nations worldwide. In the other hand, the cruise industry has experienced an increasing process of popularization worldwide, reaching a level of enormous significance in the global economy, with more and more cruises and recreational ships leaving from a large number and variety of ports around the world.3Entrepreneurship Training Material for Maritime SectorAround 50,000 merchant ships, registered in over 150 nations and manned by over a million seafarers of nearly every nationality, transport every kind of cargo internationally. Several thousand oil rigs and support and supply offshore vessels are engaged in the exploration and drilling for oil and gas in almost every corner of the globe. Nearly four million commercial fishing vessels ply the seas and oceans at any given moment. And a myriad of recreational ships, including several hundred large and mega cruise ships, offer the most diversified leisure and tourism services to an expanding market. Maritime activities therefore continue to expand, bringing benefits for people across the world thanks to a growing efficiency of technical and human resources. The merchant navy, offshore oil sector, commercial fishery and cruise companies are part of the industry of the future, and the maritime sector is already a key catalyst for socio-economic development and international competitiveness in a changing world, with new companies and organizations emerging and establishing operations in Europe, Asia and North America. Leaving aside its historical evolution and current structure in geographical clusters with homogeneity and linkages amongst its constituents, the maritime sector is composed of organizations and activities such as maritime transportation, the naval industry (naval engineering and shipbuilding companies, and the component supply sector), commercial fishing and aquaculture industry, the cruise and recreational sector, sport and commercial ports and marinas, marine energy sources, navies, marine and ocean research and sciences, maritime training academies and training centers, a wide range of professional services around the maritime activities, and professional associations, trade unions and organizations supporting the rights and interests of seafarers and maritime professionals. This global sector, supported in the twentieth century by the economies of the North American and Western Europe, has shown strong growth over the last four decades, despite the worldwide economic recession of early 1980s and the financial crises of the late 1990s and 2007, from just over eight thousand billion ton-miles in 1968 to over 40 thousand billion ton-miles in 2010; and it is expected to witness a further growth in the coming decades by the demands of China's and India's emerging economies, with the subsequent rise in the level of maritime activities and the economic value and impact they represent. The social-economic environment has changed sharply in the last years compared to the trends observed in previous decades. Globalisation and the development of low-cost manufacturing centers in East Europe, China and India, the aging and decreasing workforce in developed countries, the rising cost of environmental legislation, the rising of global terrorism, piracy, transnational crimes (human/drugtrafficking and smuggling) and illegal use of the sea (poaching and connected crimes) along with the cost of security measures to combat such phenomena, and the above-referred increasing global energy and food demand are key factors in a period of considerable change, development and new challenges. 4Entrepreneurship Training Material for Maritime SectorIt is difficult to quantify the total value of the world maritime industry, and the economic relevance of a sector that affects a wide range of aspects of modern societies and their development. The maritime industry is of huge importance in terms of natural resources and energy, trade and industry, sciences and leisure activities. An essential part of our trade and prosperity, which demands innovative solutions and careful management systems to ensure its long-term sustainability, as well as the implementation of national and international regulations and instruments to address some still-unsolved issues and new problems expected to emerge in a near future (social and labor rights, international registration of ships, taxes, maritime environmental protection, etc.). Moreover, the need to understand the global ecosystems and environment, as well as their necessary conservation, to find the more efficient mechanisms to deal with phenomena such as climate change, ecosystem disruption, deforestation, depletion of the ozone layer or and rising sea levels have made research and study of the maritime environment a high priority issue.Maritime Industry Trends According to the “Global Trends Driving Maritime Innovation” report, key societal trends such as: population and trade growth, climate change or higher energy production & consumption, will drastically influence the future of maritime industry. The expected social changes create a thriving business opportunity environment for entrepreneurs. Ideas related to disrupting technologies can address, rising needs in the Maritime Industries, such as: Increase in production and transport of clean fuelsIncreased transport of goods, energy, raw materials, food and waterPort infrastructure and significant investment in new port facilities and extensionsBunkering of alternative fuelsNeed for robustness of ships, ports and offshore structures for severe weather conditionsHigher degree of automation of systems and autonomous operationSea-based and shore-based operations: integration and transformationNeed for secure connectivity against cyber-attacksStricter safety and security standardsElectronic data instead of legal paper documentation5Entrepreneurship Training Material for Maritime SectorDigitization leading to data access issues, IPR, etc.Increased use of ferries, cruise ship and leisure craft etc.The Shipbuilding Industry Review in EU The shipbuilding industry deals with the production of larger (mainly seagoing) vessels intended for the merchant fleet (cargo or passenger transport), the off-shore energy industry or military purposes. It also includes products and services supplied for the building, conversion, and maintenance of these ships. The European Commission promotes the industry’s development and addresses competitiveness issues it faces. Importance of the Shipbuilding Sector The European shipbuilding industry is a dynamic and competitive sector. It is important from both an economic and social perspective. It is also linked to other sectors including transport, security, energy, research, and the environment. There are about 150 large shipyards in Europe. Around 40 of them are active in the global market for large seagoing commercial vessels;Some 120,000 people are employed by shipyards (civil and naval, new building, and repair yards) in the EU;With a market share of around 6% in terms of tonnage and 35% for marine equipment, Europe is a major player in the global shipbuilding industry (total turnover of EUR 60 billion in 2018);Shipbuilding is an important and strategic industry in a number of EU countries. Shipyards contribute significantly to regional industrial infrastructure and national security interests (military shipbuilding). The European shipbuilding industry is the global leader in the construction of complex vessels, such as cruise ships, ferries, mega-yachts, and dredgers. It also has a strong position in the building of submarines and other naval vessels. The European marine equipment industry is a world leader for a wide range of products ranging from propulsion systems, large diesel engines, environmental, and safety systems, to cargo handling and electronics. Challenges faced by the Shipbuilding Industry6Entrepreneurship Training Material for Maritime SectorThe sector faces fierce international competition from countries like China and South Korea. The industry has also suffered from the absence of effective global trade rules and state supported over investment. This is because shipyards offer a wide range of technologies, employ a significant number of workers, and generate foreign currency income, due to the fact the global shipbuilding market is dollar-based. To sum up the Maritime Industry is an emerging industry with lots of opportunities, innovation and growth areas especially for aspiring entrepreneurs. The maritime industry comprises of companies whose activities supply innovative products and services related to the maritime sector. The industry includes all enterprises engaged in the business of designing, constructing, manufacturing, acquiring, operating, supplying, repairing and/or maintaining vessels, or component parts thereof: of managing and/or operating shipping lines, and customs brokerage services, shipyards, dry docks, marine railways, Marine fishing, repair shops, shipping and freight forwarding services and similar enterprises. This industry also includes a significant component of oil and gas and renewable energy. This industry is an under-explored area in the world as many entrepreneurs’ eyes are yet to be opened towards this area. The industry could also serve as a means of export for the countries which would automatically contribute to our economy. In addition, it holds a chance of providing jobs for the teeming unemployed people. This training material (intellectual output - O2) has been developed within the framework of Erasmus+ KA2 Strategic Partnerships for VET project titled as “Searching the Extensive Application at Maritime Protocol (SEAMAP)â€? in order to develop the entrepreneurial competences at sea or ashore including maritime service sector and ship building sectors. (www.projectseamap.eu | www.see4sea.com) The entrepreneurial competences of the people at maritime sector have been investigated and the case study has been prepared by the information and data generated by questionnaire and need analysis. The online questionnaire has been applied to trainees and maritime personnel in order to learn and collect data about entrepreneurship skills of the so-called people. The content of the following entrepreneurship training material has been determined and prepared by the need analysis of the questionnaire.7Entrepreneurship Training Material for Maritime Sector1. THE BUSINESS ENVIRONMENT 1.1 FEATURES AND COMPONENTS OF THE BUSINESS ENVIRONMENT In any business activity, the business environment plays a key role in defining its strategies, in the understanding and development of the opportunities that support the growth, profitability or just its survival. Understanding the environment within which the business has to operate is very important for running a business unit successfully at any place. Because, the environmental factors influence almost every aspect of business, be it its nature, its location, the prices of products, the distribution system, or the personnel policies. It is important to learn about the various components of the business environment, which consists of the economic aspect, the sociocultural aspects, the political framework, the legal aspects and the technological aspects etc. In this chapter, we shall learn about the concept of business environment, its nature and significance and the various components of the environment. According to Phillip Kotler, global business environment is defined as "all undertaking external factors and forces that are able to affect its manner of development ". The business environment is defined by Elisabeth Hill and Terry O'Sulliva as: "The companies business environment consists of those factors that it escapes its immediate control and are able to influence the relations with other partners " The term ― business environment connotes external forces, factors and institutions that are beyond the control of the business and they affect the functioning of a business enterprise. These include customers, competitors, suppliers, government, and the social, political, legal and technological factors etc. While some of these factors or forces may have direct influence over the business firm, others may operate indirectly. Thus, business environment may be defined as the total surroundings, which have a direct or indirect bearing on the functioning of a business. It may also be defined as the set of external factors, such as economic factors, social factors, political and legal factors, demographic factors, technical factors etc., which are uncontrollable in nature and affects the business decisions of a firm.8Entrepreneurship Training Material for Maritime SectorFig.1. Actors in the Microenvironment The business environment can be summarised as follows. (a) Business environment is the total sum of all external factors that influence a company‘s function. (b) It covers factors and forces like customers, competitors, suppliers, government, and the social, cultural, political, technological and legal conditions (c) The business environment is dynamic in nature, that means, it keeps on changing. (d) The changes in business environment are unpredictable. It is very difficult to predict the exact nature of future happenings and the changes in economic and social environment. (e) Business Environment differs from place to place, region to region and country to country. Political conditions in Romania differ from those in Turkey.9Entrepreneurship Training Material for Maritime SectorFig.2. Actors in the Microenvironment1.2. IMPORTANCE OF BUSINESS ENVIRONMENTThere is a close and continuous interaction between the business and its environment. This interaction helps in strengthening the business firm and using its resources more effectively. As stated above, the business environment is multifaceted, complex, and dynamic in nature and has a far-reaching impact on the survival and growth of the business. To be more specific, proper understanding of the social, political, legal and economic environment helps the business in the following ways: (a) Determining Opportunities and Threats: The interaction between the business and its environment would identify opportunities for and threats to the business. It helps the business enterprises for meeting the challenges successfully. (b) Giving Direction for Growth: The interaction with the environment leads to opening up new frontiers of growth for the business firms. It enables the business to identify the areas for growth and expansion of their activities. 10Entrepreneurship Training Material for Maritime Sector(c) Continuous Learning: Environmental analysis makes the task of managers easier in dealing with business challenges. The managers are motivated to continuously update their knowledge, understanding and skills to meet the predicted changes in business. (d) Image Building: Environmental understanding helps the business organizations in improving their image by showing their sensitivity to the environment within which they are working. (e) Meeting Competition: It helps the firms to analyse the competitors‘ strategies and formulate their own strategies accordingly. (f) Identifying Firmâ&am
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