P 201Entrepreneurship

PREPARED BY:ASMIZA BT. OSMAN

COMMERCE DEPARTMENT

CHAPTER 1: INTRODUCTION TO ENTREPRENEURSHIP

Learning Objectives: At the end of the lesson, students will: 1. Define the concept of entrepreneur and entrepreneurship2. Differentiate between Businessman and Entrepreneurs3. Explain the roles and social responsibilities of entrepreneur4. Explain the competencies of entrepreneurship 5. List of successful entrepreneurs in Malaysia6. Define e-business 7. State the importance of e-business to entrepreneur8. Distinguish the advantages and disadvantages of e-business9. Identify online marketing communication

A Time of Rapid Change

Apple …was just a food

… was something cowboys yelled

30 years ago…

10 years ago…

… was a river in South America

Entrepreneurial ventures

mtv

HISTORY OF ENTREPRENEURSHIP

1.1 Explain about entrepreneurship

  1.1.1 Define the concept of

entrepreneur and entrepreneurship

1.1.2 Differentiate between Businessman

and Entrepreneurs.

1.1.3 Explain the roles and social responsibilities

of entrepreneur towards

a)Customers

b)Society/community

c)suppliers

d)staff

e)competitors

f)nation

1.2 Discuss the competencies of entrepreneurship:a. Personal initiativeb. Seize opportunitiesc. Enduranced. Information-seekere. High work qualityf. Commitment towards work agreementg. Efficienth. Systematic planningi. Creative problem solvingj. Self-confidencek. Assertionl. Persuasionm. Power and authority

1.3 Understand E-Business

1.3.1 Define e-business

1.3.2 State the importance of e- business

to entrepreneur

1.3.3 Distinguish the advantage

and disadvantages of e- business

1.3.4 Identify online marketing

communication :

a)Direct Email Marketing

b)Online Catalogue

c)Public Relations

THEORIES & CONCEPT OF ENTREPRENEURSHIP

THEORIES & CONCEPTS OF ENTREPRENEURSHIP

Session Objectives

At the end of the session, students should be able to:

• understand the various theories and concepts on entrepreneurship

• have a deeper understanding of the discipline of entrepreneurship

THE EVOLUTION OF ENTREPRENEURSHIP THEORY

THE EVOLUTION OF ENTREPRENEURSHIP THEORY

Definition of an Entrepreneur :• “ An entrepreneur is a person who

undertakes to do a job ” Richard Cantillon (1755). The term entrepreneur is a French word first coined by Richard Cantillon.

• In Malaysia the term “usahawan” is used for entrepreneur.

THE EVOLUTION OF ENTREPRENEURSHIP THEORY

Definition of Entrepreneurship:

• Entrepreneurship involves not only the process that leads to the setting up of a business entity but also the expansion and development of an on going concern.

THE EVOLUTION OF ENTREPRENEURSHIP THEORY

• Adam Smith (1776) - An entrepreneur is a person who acts as agent in transforming demand into supply.

• Jean Babtiste Say (1803) - An entrepreneur is a person who shifts resources from an area of low productivity to high productivity.

THE EVOLUTION OF ENTREPRENEURSHIP THEORY• John Stuart Mill (1848) - An entrepreneur is a

prime mover in the private enterprise.The entrepreneur is the fourth factor of production after land ,labor and capital.

• Carl Menger (1871) - The entrepreneur acts as an economic agent who transforms resources into products and services.The entrepreneur transforms and gives added value.

THE EVOLUTION OF ENTREPRENEURSHIP THEORY

• Joseph Aloysius Schumpeter (1934) - An entrepreneur is an innovator. The economy moves through leaps and bounds and the prime mover is the entrepreneur through the process of creative destruction.

• Alfred Marshall (1936) - The process of entrepreneurship or business development is incremental or evolutionary . It evolves from sole proprietorship to a public company.

THE EVOLUTION OF ENTREPRENEURSHIP THEORY

• Ibnu Khaldun (Abdul Rahman Mohamed Khaldun) - The entrepreneur is seen as a knowledgeable individual and is instrumental in the development of a city-state where enterprise will emerge.

• David McClelland - The entrepreneur is a person with a high need for achievement. This need for achievement is directly related to the process of entrepreneurship.

DEFINITION OF ENTREPRENEURSHIP

It is more than creation of business Entrepreneurship is a process of

innovation and new venture creation through four major dimensions – individual, organizational, environmental and process.

The entrepreneurship process is aided by collaborative networks in government, education and institutions.

DEFINITION OF ENTREPRENEURS

Functional definition of entrepreneurs offers the following definition:

• Entrepreneurs are individuals who actively form or lead their own business and nurture them for growth and prosperity.

Introduction to Entrepreneurship

• Simple Definition– Process of creating something new and

assuming the risks and rewards. Robert D.Hisrich, M.P.Peters &

D.A.Shepherd

Introduction to Entrepreneurship

• What is an Entrepreneur?– He or she is an individual who actively form or

lead their own business and nurture them for growth and prosperity.

UiTM Entrepreneurship Study Group

– A person who creates and manages change by the recognition of opportunities (needs, wants, opportunities, problems, and challenges) and develops people and manages resources to take advantage of the resources to take the opportunity and creates a venture (profitable business).

Eston Kimani, MIT

Entrepreneurship: Concepts & Definitions

“Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction of independence.”… Robert Hisrich

Entrepreneurship: Concepts & Definitions

“Entrepreneurship is an act of initiative, drive, commitment, diligence, perseverance, organized effort, and achievement outlook, to undertake some specific functions of performing productive activities and the capacity to bear and associated with the investment”.

Economic Policy Paper on Entrepreneurship Development through Educational Reform-Bangladesh

Definition of Entrepreneur

• “The entrepreneur, by definition, shifts resources from areas of low productivity and yield to areas of higher productivity and yield. Of course, there is a risk the entrepreneur may not succeed”.

(Drucker, ’85)

Why become an Entrepreneur?• Personal situation• Resources• Entrepreneurial skills• Success stories• Desire for independence• Opportunity to exploit a gap• Frustration

ENTREPRENEUR VS BUSINESSMAN

ENTREPRENEUR VS BUSINESSMAN

DIFFERENCES BETWEEN ENTREPRENEUR AND SMALL BUSINESSMAN???

BUSINESSMAN ENTREPRENEUR

A businessman not necessarily an entrepreneur An entrepreneur also a businessman

Always involve with trade business Commit with effort create own products

Always make effort to increase profit Give priority to success and satisfaction, not profit only.

Unimpressed with technological development and alterations

Follow all reform to increase creativity.

Selling existing goods in market Introduce new product that can penetrate the market

Give priority to short period profit. Competition was a challenge which requires rigorous research to survive

Think to resolve daily problem only Always think to increase progress in future.

Face competition as usual challenge Give priority to long term profit

THE IMPORTANCE OF ENTREPRENEURSHIP TO MALAYSIAN

ECONOMY

1. Entreprenuership is the symbol of business steadfastness and achievement. Entrepreneurial revolution is critical to economic growth. Entrepreneurship may affect our future in many ways:

a. Innovative creation of opportunity

Example: Portable phones linked to faxes and laptop will turns cars, train, and airport terminal into offices.

THE IMPORTANCE OF ENTREPRENEURSHIP TO MALAYSIAN

ECONOMY

d. Entrepreneurship not only affect our lives through innovation but represent the working future for many of us due to lays off by large organization and shrinking of job opportunities for graduates.

e. Entrepreneurship is synonymous to creation of new venture and small businesses. SMIs have been important contributors to local economic growth.

f. The entrepreneurial SMIs provide services that the large corporation has neglected or lack of economy of scale for the large corporation to serve.

g.Contribution of SMIs to Malaysian Economy -

In Malaysia the SMIs employed 90% of the total labor force in manufacturing sector and contributed to about 26% of total value added in the sector.

THE IMPORTANCE OF ENTREPRENEURSHIP TO MALAYSIAN ECONOMY

ENTREPRENEURSHIP ROLE AND CONTRIBUTION TO SELF DEVELOPMENT, COMMUNITY

AND COUNTRY

•Self control•Fully utilized of self potential

•Generate profit•Role model to society

CONTRIBUTION TO SELF DEVELOPMENT

CONTRIBUTION TO SOCIETY

• Serve the need and demand of society

• Offer career opportunity • Contribute welfare to

society• Contribute in term of

education development

• Economic development. • Absorb new technology to

increase competitiveness. • Develop human resource

through companies personnel training.

• Serve local product to global market.

CONTRIBUTION TO COUNTRY

Characteristics of an Entrepreneur• Drive• Perseverance• Ambition• Leader• Survivor status• Competitive• Interpersonal skills• Innovative skills• Ability to bounce

back

• Vision• Motivation• Self-confidence• Self Satisfaction• Extrovert• Results orientated• Committed• Risk taker• Sociable

Personal InitiativeAlways do something

without receiving instruction from anyone

Personal InitiativeAlways do something

without receiving instruction from anyone

Seize Opportunities

Effort to seek and grab opportunities

There are opportunity behind every problem

Seize Opportunities

Effort to seek and grab opportunities

There are opportunity behind every problem

Endurance Have great strength

and courage Never give up

accomplishing vision

Endurance Have great strength

and courage Never give up

accomplishing vision

Information Seeker

Find the right information from the correct source

Information Seeker

Find the right information from the correct source

High Work Quality

Make sure products are always better

Ensure satisfaction and simultaneously increase

market share

High Work Quality

Make sure products are always better

Ensure satisfaction and simultaneously increase

market share

Commitment Towards Work Agreements

Willingness to sacrifice his personal interest in order to

make the market satisfaction

Taking full responsibility in completing a task

Commitment Towards Work Agreements

Willingness to sacrifice his personal interest in order to

make the market satisfaction

Taking full responsibility in completing a task

Efficient Always finding ways to

produce products at lower cost within a shorter time period

Efficient Always finding ways to

produce products at lower cost within a shorter time period

Systematic Planning

Using a systematic and logical approach to achieve business

goals

Systematic Planning

Using a systematic and logical approach to achieve business

goals

Creative Problem Solving

Searching for smart steps to solve problem as well

as looking and thinking of innovation new ideas or creative problem solving

methods

Creative Problem Solving

Searching for smart steps to solve problem as well

as looking and thinking of innovation new ideas or creative problem solving

methods

Self ConfidenceBelieve on skill and

capabilitiesAble to make decision without hesitation or

responds to challengesDo not have fear of

failure

Self ConfidenceBelieve on skill and

capabilitiesAble to make decision without hesitation or

responds to challengesDo not have fear of

failure

AssertionBrave to give ideas or opinion to people and to take action even

when face to face from other

AssertionBrave to give ideas or opinion to people and to take action even

when face to face from other

Persuation Able to persuade customer to buy

product or service

Persuation Able to persuade customer to buy

product or service

Power& Autority Influence staff and industry

to ensure achievementBase on 5 aspects:

Total control

Power to impose penalty

Give reward

Expertise

Show good example

Power& Autority Influence staff and industry

to ensure achievementBase on 5 aspects:

Total control

Power to impose penalty

Give reward

Expertise

Show good example

Electronic Business, is the administration of

conducting business via the Internet. This would include the buying and

selling of goods and services, along with

providing technical or customer support

through the Internet

I know the answer !!!!

E-BusinessWhat is E-business ???

Online Marketing Com mun ication

Marketing online can be in the form of sending an email, optimizing search engine result (SEO), or displaying banner ads on a webpage to reach

potential customers.

Online Marketing typically involves using only the Internet to promote products and services to

consumers

Do you understand what is online marketing

communication ???

Direct Email Marketing

Public Relations

Public Relations

Online Catalogue

Direct Email Marketing

 

The process of direct email marketing (email direct marketing) including

Online Catalogue

A catalogue of products stored at a WEB SITE, with details of each product

on a separate WEB PAGE.

Public RelationsUsing the news or business press to

carry positive stories about your company or your products;

cultivating a good relationship with local press representatives

Public RelationsUsing the news or business press to

carry positive stories about your company or your products;

cultivating a good relationship with local press representatives

1 allows companies to reach more consumers in a much broader economic market

2 lower some business costs, Owners and managers can purchase the cheapest goods available using e-business websites

3 Marketing and advertising is another business function with significant e-business benefits. Companies can send messages or stream content directly to a consumer's computer or personal computing device. This allows companies to advertise their products in a real-time format.

The Importance OfE-Business To Entrepreneur

E-Business

ADVANTAGES1 . Work from home, saves

money of renting office/shop place.

2 . If trading on-line won’t have to employee as many staff and this will also save the business money.

3 . Able to buy from it 24 hours a day

4 .Larger market of potential customers on-line

5 . Elderly people or people with disability’s who are not able to go to the shops can still be customers of yours

DISADVANTAGES

1 .Security – there are still some people who don’t think it is save to buy on-line therefore as their isn’t a high-street shop will loss their custom.

2 .You may not recieved what you believe you have purchased.

3 .Things such as viruses could mean losing the site or affecting your customers computers while on your website.