With the determination to prepare private and state university students across Thailand to become future entrepreneurs, Assumption Business Administration College (Abac) and the Commerce Ministry organized the University Entrepreneurial Development Project (U-ED), which is a business simulation competition. It was held for the second year on July 7-8 at Abac.

Before becoming entrepreneurs, students learn through their participation in the competition what it takes to be a professional businessperson, such as the necessary managerial skills they will need to run a successful business.

Acquiring managerial skills

U-ED project chairman, Yuthasak Poomsurakul, says that during the course of the competition students learn how ``to plan a business, to train to be a leader, to work as a team, to solve problems analytically and [evaluate business models through] trial and error.''

Students who participate in this competition engage in many aspects of business operations, such as dealing with logistics, suppliers, product lines, public relations, marketing and sales.

It's important to develop students' competency as entrepreneurs, says Bancha Skuldee, U-ED's vice chairman of the advisory committee, ``which includes acquiring the diversified skills necessary to run a business, along with the determination and boldness to take risks.''

To the finish line

The business training by U-ED began during October 25 to 29 last year. It taught students how to make a business plan and guided them on how to properly execute the plan.

Students eventually get to run their own company, which is usually initiated by their fellow university alumni. Each company has a management board, and what each company sells or services varies.

Students presented their business results to a panel of judges on July 7 and 8. They were required to outline their business model while discussing profits, sales methods, sales margins, and what efforts went into running their business. Each presentation was limited to 15 minutes and after great deliberation, the judges announced the winners, and trophies were awarded.

Pressure from the judges

Students are evaluated on how well they plan their business and execute their plan. Judges also consider what contributions they make to the community.

Even though the quality of students' presentations only accounted for minor points, all were dressed in dark business suits as they delivered a fast-paced summary of why their company deserved to win the competition. A general, finance and marketing manager governed each company.

The judges, all top-level executives from the private sector, caused excitement and anxiety among the presenters as they asked tough and thought-provoking questions of the team members while the students presented their business models.

For example, students from Payap University in Chiang Mai province, appeared stunned when asked, ``Why is your company profit so low? Is there corruption in your company?'' Hit with such a direct question, the team was compelled to think quickly and provide an instantaneous response, as they demonstrated that corruption was not possible, because they had designed transparency into their company.

Another question that requires equal wit to answer was why the number of employees in their company had dropped significantly. Questions from the judges also addressed the number of salespeople who were paid little or no commission. The judges were suggesting that perhaps low or no commissions might be the reason why their staff turnover rate was so high.

These sharp questions are meant to provoke students into thinking about the practicalities of operating a business. Such pointed critiques cause students to encounter the intense pressures that executives and board members of real companies regularly experience.

Learning from practice

A twenty-two year old computer business major from Naresuan University in Phitsanulok province, Athiya Phong-Uay or ``Eve'', says that one of the major challenges for her business is finding the right product.

Although her company sells a wide range of products, such as pre-paid phone cards, notebook computers, digital music, bedding accessories and gift shop products, Eve says that many things don't sell. Their target customers are Naresuan University students, and based on their market research, Eve finds that because students have low purchasing power, they frequently evaluate whether a product is a genuine necessity. So while pre-paid phone cards and computers are deemed as essential to student life, the ``non-essentials'' are disregarded.

Improvising business theory

One of the main objectives for this project is to encourage students to adapt the knowledge they acquire in class to the realities of their day-to-day business operations, and if it isn't readily applicable, to improvise.

The Maejo University in Chiang Mai team won the HRH Crown Princess Sirindhorn Plaque for Best Dummy Company Established 5 Years and Above. Krirach Huana studies marketing there and admits that he uses half of what he learns from class and half of what he gains from experience while running the business.

He says he finally understands how to apply the concept of direct sales, but only after spending two months on trial and error. In class, he says his teacher only introduces it as one of the marketing strategies, without elaborating on which products are practical for a direct sales model.

``Direct sales work best for consumer products. It is not applicable for pricey or technical products, such as an electronic dictionary, because such products require credibility,'' he says.

Model entrepreneur

Besides exposing students to basic managerial skills, U-ED emphasizes the importance of social responsibility as a cornerstone of good entrepreneurship. As a U-ED organizer, Bancha reminds education institutes to produce competent future business personnel with corporate social responsibility.

Teaching future entrepreneurs to be socially responsible, says Bancha, will prompt students to make positive contributions to the community in which they choose to locate their businesses.

In addition, a model entrepreneur, according to Yuthasak, is someone who is diligent, disciplined, honest, and who has a thorough understanding of how to minimize costs while maximizing profits.

Unlike similar competitions that look solely at how much profit a company makes, the goal of U-ED, he adds, is to measure whether each education institute has laid a solid foundation to produce students who will become capable future business leaders for Thailand.