spe3002 entrerpeneurship introduction w1 and w2[1]
TRANSCRIPT
MOHD KHATA BIN JABOR SPE3002 / SPK5002
M - MEMARTABATKAN AGAMA, BANGSA DAN NEGARA
O - OPTIMUMKAN SUMBER
H - HORMAT SEMUA ORANG
D - DOA DAN USAHA ASAS KEJAYAAN
K - KECEMERLANGAN DIRI
H - HADIR MU MEMBAWA KESAN
A - AKHLAK MULIA
T - TERBAIK DALAM SEMUA URUSAN
A - AKU ADALAH HAMBA YANG SENANTISA MEMERLULAN RAHMAT, PETUNJUK, DAN PENGAMPUNAN DARI YANG
ESA
KEHIDUPAN KU
MOHD KHATA BIN JABOR SPE3002 / SPK5002
AGENDA1. Introduction To Entrepreneurship 2. The Evolution Of Entrepreneurship3. The Concepts Of Entrepreneurship
3.1 Entrepreneurship 3.2 Who Are Entrepreneurs? 3.3 The Importance Of Entrepreneurship 3.4 The Myth Of Entrepreneurship 3.5 Entrepreneurship Development In Malaysia
4. Entrepreneurial Characteristics
Week 1 and 210 – 23 July 2006
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Introduction To Entrepreneurship
Most of what you hear about entrepreneurship, is all wrong.
It is not magic; it is not mysterious; and it has nothing to do with genes. It’s a discipline,
it can be learned!!!
Peter F Drucker, Innovation and Entrerpeneurship
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Entrepreneurship
• In French Entreprende – To undertake.
• Entrepreneurship - Willingness to take the risks involved in starting and managing a business.
• (http://www.turnerlearning.com/efts/bball/econglos.htm)
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Entrepreneurship
• The qualities that are needed to function effectively in a business, profit-making context (e.g. the ability to identify business opportunities, negotiate prices, broker deals)
• Entrepreneurship is often a difficult undertaking, as a majority of new businesses fail.
(http://en.wikibooks.org/wiki/SA_NCS_Visual_Arts:Glossary)
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Entrepreneurship
• Entrepreneurship is the practice of starting new organizations, particularly new businesses generally in response to identified opportunities. – activities are substantially different depending on the type of
organization that is being started. – may involve creating many job opportunities.
• Many "high-profile" entrepreneurial ventures seek venture capital or angel funding in order to raise capital to build the business. Many kinds of organizations now exist to support would-be entrepreneurs, including specialized government agencies, business incubators, science parks, and some NGOs.
MOHD KHATA BIN JABOR SPE3002 / SPK5002
The Evolution Of Entrepreneurship
The Evolution of and Development of Theory of Entrepreneurship
The Earliest Period – Merchant adventurer e.g. Marco Polo. The capitalist was a passive risk bearer
The Middle Ages – Manager of large projects finance by government such as public buildings
The 17th Century – Merchants, farmers, craftsmen, and other sole proprietors, where they bought at a certain price and sold at an uncertain price, therefore operating at a risk
MOHD KHATA BIN JABOR SPE3002 / SPK5002
The Evolution Of Entrepreneurship
The Evolution of and Development of Theory of EntrepreneurshipThe 18th Century – Industrialization and inventions
occurred. Capital users (entrepreneurs), capital provider (venture capitalists)
19th and 20th Century – Entrepreneur as an innovator, to reform or revolutionize the pattern of production by exploiting as invention
21st Century – Heroes of free enterprise, have used innovation and creativity to build multimillion-dollar enterprise, have created new products and services, have assumed the risks with these ventures
MOHD KHATA BIN JABOR SPE3002 / SPK5002
The Concepts of Entrepreneurship
Entrepreneurship is a dynamic process of vision, change, and creation. It requires an application of energy and
passion towards the creation and implementation of new ideas and creative solutions. Essential ingredients include
willingness to take calculated risks in terms of time, equity, or career; the ability to formulate an effective
venture; the creative skill to marshall needed resources; the fundamental skill of building a solid business plan; and
finally, the vision to recognize opportunity where others see chaos, contradiction, and confusion.
Kurato and HodgetsEntrerpeneurship – A Contemporay Approach
MOHD KHATA BIN JABOR SPE3002 / SPK5002
The Concepts of Entrepreneurship
4 basic aspects according to Histrich and Peter (1998)
1. Entrepreneurship involves the creation process that is creating something of new value to the entrepreneur and market.
2. Entrepreneurship requires devotion of necessary time and effort.
MOHD KHATA BIN JABOR SPE3002 / SPK5002
The Concepts of Entrepreneurship
4 basic aspects according to Histrich and Peter (1998)
3. Entrepreneurship involves risks depends on efforts, usually centered around financial, psychological, and social areas.
4. Entrepreneurship involves the rewards of being an entrepreneur. Independence Personal satisfaction Monetary reward – sign and symbol of success.
MOHD KHATA BIN JABOR SPE3002 / SPK5002
The Concepts of Entrepreneurship
Kurato and Hodgetts (2004 )
Entrepreneurship is a process of innovation andnew venture creation through 4 major dimensions:
IndividualsOrganizationalEnvironmentProcess
Government
Education
InstitutionAIDED BY
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Who are Entrepreneurs?
Scarborough and Zimmerer (1998)
Kuratko and Hodgetts (2004)
Entrepreneur as a person who creates a new business in the face of uncertainty for the purpose of achieving profit and growth by identifying
opportunities and assembling the necessary resources to capitalize on them. Entrepreneurs usually start with nothing more than an idea, often a simple
one, and then assemble the resources necessary to transform that idea into a sustainable business
Entrepreneur as one who undertakes to organize, manage and assume the risks of a business., is also a catalyst for economic change who uses
purposeful searching, careful planning, and sound judgment when carrying out the entrepreneurial process. Uniquely optimistic and committed, the
entrepreneur works creatively to establish new resources or endow old ones with a new capacity, all for the purpose of creating wealth
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Who are Entrepreneurs?
Economists Those who bring resources, labor, materials & other assets
Psychologists The behavioral term of achievement. Individuals who drive to seek challenges and accomplishment.
MOHD KHATA BIN JABOR SPE3002 / SPK5002
The Importance of Entrepreneurship
Why entrepreneurship is important to:
Individuals
Society
Country.
MOHD KHATA BIN JABOR SPE3002 / SPK5002
The Myths of Entrepreneurship
Myth 1 Entrepreneurs are doers, not thinkers
Myth 2 Entrepreneurs are born, not made
Myth 3 Entrepreneurs are always inventors
Myth 4 Entrepreneurs are academic and social misfits
Myth 5 Entrepreneurs must fit the “Profile”
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Myth 6 All entrepreneurs need is money
Myth 7 All entrepreneurs need is luck
Myth 8 Ignorance is bliss for entrepreneurs
Myth 9 Entrepreneurs seek success but experience high failure rates
Myth 10 Entrepreneurs are extreme risk taker (gamblers)
The Myths of Entrepreneurship
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Entrepreneurship Development in Malaysia
• The New Economic Policy (1971-1990)
• The National Development Policy (1990 -2000)
• Vision 2020
• http://www.miti.gov.my
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Identifying Entrepreneurial Characteristics
Characteristics Of Successful Entrepreneurs
Entrepreneur Self-Assessment
The Difference Between Businessmen, Managers And Entrepreneurs
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Characteristics Of Successful Entrepreneurs
Initiative and Responsibility
High DegreeOf Commitment
Opportunity Orientation
Moderate Risk Taker
Confidence andOptimistic
Independent
Flexibility
High Level Of Energy
Team Building
Ability to Set Vision
Tolerance toFailure
Drive to AchieveCreative and
Innovative
Seeking Feedback
Skilled at Organizing
Internal LocusOf Control
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Entrepreneur Self-Assessment
• Purpose – to get insights into the entrepreneurial inclination potential in individuals.
• Instruments proposed by Robinson, Stimpson, Huefner and Hunt (1991).
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Entrepreneur Self-assessment• http://bizmove.com/other/quiz.htm - EXAMPLES
1. Are You a Self-Starter? • If someone gets me started, I keep going all right. • I do things my own way. Nobody needs to tell me to get going. • Easy does it. I don't put myself out until I have to. 2. How Do You Feel About Other People? • Most people bug me. • I like people. I can get along with just about anybody. • I have enough friends and I don't need anybody else.3. Can You Lead Others? • I can get people to do things if I drive them. I can get most people to
go along with me without much difficulty. • I usually let someone else get things moving4. Can You Take Responsibility? • I'll take over if I have to, but I'd rather let someone else be responsible.
There's always some eager beaver around waiting to show off. I say, let him.
• I like to take charge of and see things through.
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Businessman vs. Entrepreneur
Businessman Entrepreneur
Engages in activities for the purpose of profit to support for his living and his family
Starts the venture, assumes leadership and expands the venture to fill personal goals and attain self-accomplishment
Low risk taker Moderate risk taker
Follow others and invests only in tested and proven markets.
Takes calculated risks.
MOHD KHATA BIN JABOR SPE3002 / SPK5002
Conventional Managers vs. Entrepreneur
Conventional Managers Entrepreneur•Very conscious or rules and taboos
Views rules as guidelines only
•Sensitive to future and willing to postpone rewards
Concept of future based on personal goals. Low threshold of frustration.
•Has a powerful need for acceptance
Ambivalent towards control, success and responsibility. Can be manipulative and exploitative of others
•Able to identify problems in any course of action. Makes detailed plans
Impatient with discussions and theories. Is prone to action and seems impulsive.