Mindsets (Creative Confidence)

 Why is culture important? 

Entrepreneurial culture is the bedrock of economic growth and progress. It promotes the growth of enterprises/businesses with a clear vision and accountability for the welfare of society. Entrepreneurial culture refers to a set of attitudes, practices, and attributes that promote the growth of entrepreneurship (K, 2023).

First, cultural Entrepreneurship is important for preservation and promotion of cultural heritage. The preservation and promotion of cultural assets are critical objectives of cultural entrepreneurship. Incorporating cultural traditions into business operations ensures that a person's or society's cultural uniqueness is maintained and developed (Data, 2023). 

Furthermore, it is important for contributing to cultural diversity and richness. Cultural entrepreneurship has the potential to increase the total cultural diversity and richness of society by supporting and preserving various cultural practices. This creates a more accepting and tolerant culture. It is essential for building strong, resilient communities (Data, 2023).

Lastly, it is also important for supporting cultural diplomacy. Cultural entrepreneurship can also be used as a tool for international understanding and collaboration in cultural diplomacy. This can lead to a more peaceful and harmonious society by transcending cultural differences (Data, 2023). 

Do you think Facebook overpaid for WhatsApp? Why? 

No, Facebook didn’t overpaid for WhatsApp, which is due to the strategic benefits and potential returns Facebook would gain from WhatsApp in the long term. While $19 billion may seem like a substantial amount, WhatsApp's large user base and international reach could provide significant value to Facebook(Edwards, 2014). This is about expanding its global presence and diversifying its revenue streams. Additionally, acquiring WhatsApp may have helped Facebook stay competitive in the messaging app market and mitigate the risk of losing users to competing platforms. 

Furthermore, WhatsApp processes 27 billion messages a day, and has 400 million active users a month, which means that on its own, WhatsApp poses a sizeable threat to Facebook, in terms of peeling off its users and making them use a messaging environment, which Facebook has no access to, which could result in the decline of uses of Facebook. (Edwards, 2014) Therefore, while a sum of 19 Million Dollars is quite a substantial amount, the acquisition would still pose to be a very strategic business move for Facebook, which is due to the reason that not only is Facebook gaining more users but is also eliminating a business threat to Facebook. 

What are some of the problems bringing in new investors? 

Attracting more fresh investors for a business is akin to maneuvering through an intricate labyrinth, necessitating meticulous actions and deliberate strategizing. One of the primary challenges is locating investors who possess both the financial resources and a shared alignment with the company's vision, beliefs, and long-term objectives (Gompers & Lerner, 2001). It is like to discovering a business partner who not only provides financial resources but also delivers invaluable knowledge, networks, and assistance. When it comes to negotiating investment arrangements, it is a nuanced and intricate process. To achieve a mutually beneficial agreement that satisfies both the business's interests and the investors' expectations, it is crucial to engage in effective communication, maintain transparency, and possess a comprehensive comprehension of the company's growth potential (Kaplan & Stromberg, 2003).

However, the issue encompasses more than simply locating the appropriate match. External variables such as market fluctuations and regulatory requirements contribute to increased complexity. Investor confidence can be undermined by economic uncertainty and obstacles specific to the business, leading to a reluctance to spend capital (Baker & Wurgler, 2002). Resilience and adaptation are crucial in this situation. Demonstrating to investors the business's ability to withstand challenges and emerge resilient is crucial for establishing trust. Furthermore, it is imperative to consider the regulatory aspect, specifically adhering to securities rules and regulations pertaining to investor protection, as outlined by Brav, Constantinides, and Geczy (2002). Ensuring that all legal requirements are met not only minimizes potential dangers but also instills a sense of security in investors. To address these problems, it is necessary to adopt a comprehensive approach that includes extensive research, efficient communication, and a profound comprehension of both the business's requirements and the investors' preferences. It is akin to assembling a puzzle, where each piece plays a pivotal function in recruiting the appropriate investors and propelling the organization towards progress.

References: 

K, S. (2023, January 3). Entrepreneurial Culture: Introduction, characteristics and steps. Economics Discussion. https://www.economicsdiscussion.net/entrepreneurship/entrepreneurial-culture/33674 

Data, E. (2023, May 13). Cultural Entrepreneurship: Meaning, Characteristics & Examples. Entrepreneurship Blog. https://www.entrepreneursdata.com/cultural-entrepreneurship-meaning/#why-is-cultural-entrepreneurship-important

Edwards, J. (2014, February 19). Why Facebook had no choice but to pay $19 billion for WhatsApp. Business Insider. https://www.businessinsider.com/why-facebook-paid-19-billion-for-whatsapp-2014-2

Baker, M., & Wurgler, J. (2002). Market timing and capital structure. The Journal of Finance, 57(1), 1-32. https://onlinelibrary.wiley.com/doi/abs/10.1111/1540-6261.00414

Brav, A., Constantinides, G. M., & Geczy, C. (2002). Asset pricing with heterogeneous consumers and limited participation: Empirical evidence. The Journal of Political Economy, 110(4), 793-824. https://www.nber.org/papers/w8822

Gompers, P. A., & Lerner, J. (2001). The venture capital cycle. MIT Press Books, 1. https://mitpress.mit.edu/9780262571586/the-venture-capital-cycle/

Kaplan, S. N., & Stromberg, P. (2003). Financial contracting theory meets the real world: An empirical analysis of venture capital contracts. The Review of Economic Studies, 70(2), 281-315. https://www.nber.org/papers/w7660

Tasks	Done By
Why is culture important?	Lim Jun Na Yap Huey Shin
Do you think Facebook overpaid for WhatsApp? Why?	Valerie Annabella Tan Qiao Qian
What are some of the problems bringing in new investors?	Chong Jess Wynn Michelle Wong Hei Hui