CHAPTER 1

INTRODUCTION TO
ENTREPRENEURSHIP
Entrepreneurship
1.1 Explain about entrepreneurship
Define the concept of entrepreneur
and entrepreneurship
Differentiate between Businessman and Entrepreneurs
Explain the roles and social responsibilities of entrepreneur
Entrepreneurship
1.2 Understand the personal traits/behaviours
associated with successful entrepreneurial
performance
Discuss the competencies of entrepreneurship
Discuss on successful entrepreneurs in Malaysia
Entrepreneurship
1.3 Understand E- Business
 Define E- Business
 State the importance of e-business to entrepreneur
 Distinguish the advantages and disedvantages of e-
business
 Identify online marketing communication:
- Direct Email Marketing
- Online Catalogue
- Public Relations
 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 study of entrepreneurship is
concerned with the entrepreneurial behavior, the
dynamics of business set up and expansion and
development.
 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.
 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
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.
 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 ENTREPRENEUR

The word entrepreneur is derived from the French word

entreprendre which means 'to undertake or to try'.[Richard
Cantallion 1775]
a common definition of an entrepreneur is someone who
establishes a new entity to offer a new or existing product or
service into a new or existing market, whether it is for a
profitable or non-profitable outcome.
 DEFINITION OF ENTREPRENEUR
An enterpreneur is an individual who is able
to perceive an opportunity for a business and
create an organization to develop and manage
that business successfully.
An entrepreneur is an individual who
organizes, manages and assumes the risks of a
business (Kuratko & Hodgetts,2001)
DEFINITION OF ENTREPRENEURSHIP
Entrepreneurship is the process of seeking businesses
opportunities under conditions of risk.

Entrepreneurship also refers to the process of

creating something new of value by devoting the
necessary time and effort, assuming the accompanying
financial, physical and social risks and receiving the
resulting rewards of monetary, personal satisfaction
and indepedence.
According to Yep Putih, entrepreneurship is the ability,
capability, and tendency to perform the following activities :

i. Identify business opportunities

ii. Manage a business effort which brings profit to the
enterpreneur and the public
iii.Obtain success and richness by fulfilling the society's
needs.
iv. Take calculated risks
v. Manage & utilize the factors of production to bring
economical development and enhance social welfare
v. Work hard and be prepared to make new changes
that can increase production quantity and quality from
time to time
Differences between an enterpreneur
and a small businessman

Time
Nature of job
Decision making
Effort and commitment
Risk taker
Goal
SMALL BUSINESSMAN VS ENTERPRENEUR

1. TIME
Small Business Entrepreneur

Spending time buying Unlimited time-studying

and selling product. how to satisfy client and
(Limited time) always come out with
ideas on ways to
improve his products
SMALL BUSINESSMAN VS ENTERPRENEUR

2. NATURE OF JOB
Small Business Entrepreneur

faces competition as the competitive market

ordinary challenges is a challenge that needs
to be thoroughly in
order to survive in an
industry.
SMALL BUSINESSMAN VS ENTERPRENEUR

3.DECISION MAKING
Small Business Entrepreneur
Follow the decision made make on decisions and use his
by others and invests only creativity in producing and
in a tested and proven creating innovative products
market and services that can penetrate
a market which has not been
tested before.
 SMALL BUSINESSMAN VS ENTERPRENEUR

4. EFFORT & COMMITMENT

Small Business Entrepreneur
is not attracted to changes always keep himself updated
and technological with current and future
breakthrough technological development to
further increase his creativity
and productivity.
 The Roles &Social Responsibilities of Entrepreneur

 When you become entrepreneurs ..are you still responsible to

our community and to our country? In our desire to maximize
profits, are we going to cheat our customers, exploit our
employees, and dump our wastes into the air, water and land?
Many of our workers are underpaid. Our environment is being
destroyed or polluted.

Discuss the roles of entrepreneur towards

Customers, Society/community,
Suppliers, Staff, Competitors &
Country……
 The Roles and Social Responsibilities of
Entrepreneur toward:
 Customers - sell quality products at fair price.
 Society/community- job creation and environmental
observation.
 Suppliers- be fair with his suppliers by paying them on time
as agreed upon
 Staff- promote the welfare of his employees
 Competitors- observe business ethics with his competitors
 Country- must pay the correct amount of taxes to the
government
 COMPETENCIES OF
ENTERPRENEURS

1.Personal 8. Systematic Planning

initiative
9.Creative Problem Solving
2. Seize opportunities
3.Endurance 10.Self Confidence
4.Information-seeker
11.Assertion
5.High work quality
6.Commitment towards work
12.Persuasion
agreements
13. Power and Authority
7.Efficient
COMPETENCIES OF
ENTERPRENEURS
1.Personal initiative
An Ent who has strong personal initiative is
able to act immediately on available
opportunities and choose best strategy when
he faces a problem.
Initiative allows an Ent to be alert and
proactive.
 COMPETENCIES OF
ENTERPRENEURS
2. Seize Opportunities
Ent grabs or seize opportunities continuously to make sure
that his business sustains for a long time in the industry.
focuses, identifies and exploits business opportunities.
maximizes his thinking capacity by finding solutions to
probles faced by community.
Ent who is successful will be confident that there is a
business opportunity behind every problem.
In identifying current human needs, he will
take action to develop, modify, adapt or adopt
the existing products to fulfil market demand.
The Ent increases his knowledge by getting
ideas from employees, customers and
competitors, reading on related matters and
identifying his skills, capabilities and self
potential.
COMPETENCIES OF
ENTERPRENEURS
3. Endurance
has to face various barriers and problems before
achieving success.
Needs to have great strength and courage within him.
Strong enough to face problems and barriers
courageously.
He would never give up accomplishing his vision and
tries to deal with barriers that block his path to
achieving success.
Faces various problems and risks :eg increase in the cost
of raw materials
 COMPETENCIES OF ENTERPRENEURS
4. Information Seeker
A successful Ent is able to seek information, that is he
has done some research to obtain information and
received feedback from customers in order to provide
a good product or service that can gain customers
satisfaction and acceptance.
It is important for an Ent to make an analysis on his
market and business progress.
Ent-should have correct and up to date
information.
Info obtained will help him enhance his
experience and improve his achievemEnt
and business performance.
COMPETENCIES OF ENTERPRENEURS
5. High Work Quality
Ent always make comparison of his work quality with those
of others to make sure his products are always better.
Ent makes sure that he is not only doing a job but also
doing it in the best way possible to produce products of the
best quality.
Ent can increase his reputation as well as his business
reputation-which are ways for him to become successful.
The continuous production of quality
products and services will determine the
customer's faithfulness, commitmEnt and
satisfactions.
Products of high quality will bring profitable
returns to an Ent as it ensures the faith of
customers towards the products.
COMPETENCIES OF ENTERPRENEURS
6.Commitment towards Work Agreements
 a successful Ent devotes total commitment to the venture.
 this commitment help the Ent to rectify mistakes and overcome
obstacles which threaten business operations. Ent. who has a high level
of commitment towards work agreements can be seen in :
 his willingness to sacrifice his personal interest in order to make the
market successful
 taking full resposibility in completing a task
 his willingness to help his own staff to perform the job and provide
satisfaction to customers.
COMPETENCIES OF ENTERPRENEURS
7. Efficient
Ent is orient towards efficiency and is always findings
ways to produce products with lower cost or within a
shorter time period.
Use business information and management methods to
improve his efficiency in business, which help decrease
wastage and costs.
COMPETENCIES OF ENTERPRENEURS
8. Systematic Planning
Planning is the most important aspect for an Ent in arranging
buss strategies to achieve buss goals.
Ent always focuses on the future and is sensitive towards any
change that occur. He will not be greedy or slow in reacting
when an oppor. emerge. If the Ent does not have expertise in
making decisions, he will consider sourcing skilled
expertise from outside the company.
Ent practices time managemEnt in performing syatematic
planning of his business and then lead to an increase in
performance and achieving business target.
Ent will not make long term plans such as 5-10 years as the
market size keeps changing.
changes involving fixed capital based on five year plan will bring
damage to the company and its new products as competition will
grow in a long span.
This type of Ent would usually move towards :
making plans, taking forward steps, and dividing big tasks into
much simpler and smaller tasks.
- making evaluation and choosing the best
alternative for a spesific problem.
- taking a systematic and logical approach to achieve business
goals.
COMPETENCIES OF ENTERPRENEURS
9. Creative Problem Solving
Ent has the capability of solving problems in
terms of searching for smart steps to solve
those problems as well as looking and thinking
of innovative new ideas or creative problem
solving methods.
COMPETENCIES OF ENTERPRENEURS
10. Self Confidence
Ent - confidence would help him succeed in his
venture.
Ent who has confidence in himself would :
-believe in his skills and capabilities to achieve
what he desires.
Express the feeling of confidence towards his
capability in solving certain tasks and challenges.
He will be able to stand firm and overcome the
problem of low self esteem when confronted
with competition.
- Be able to make decision without
hesitationor respond to challenges
- Read a lot and gather experience in
subjects outside his specialization.
COMPETENCIES OF ENTERPRENEURS
11. Assertion
Ent will be assertive in his actions.
He is brave to give ideas or opinions to
people and to take action when he has to face
defiance from others.
COMPETENCIES OF ENTERPRENEURS
12. Persuasion
Ent is persuasive and will be able to
persuade his customers to buy his products
or services.
He has to persuade many people who have
an impact on his business such as staff,
customers, suppliers and financial
institutions.
COMPETENCIES OF ENTERPRENEURS
13. Power and Authority
Ent will think of a strategy to influence customers to buy his
products or services without deceiving them in order to
reach his vision.
Ent is a leader and he will be able to influence his staff and
the industry that he is involved in to make sure he achieves
his vision.
E-BUSINESS
 Information & communication tech.(ICT):
- set of inter-related components that are able to collect,
process, store & distribute information

Input Processing Output

 Input : Raw data in the orgn. /data & commands received
from user…What are the examples of input devices?
 Processing : The act of transforming the raw data into a
meaningful form to the organization.
 Output : Anything that is produced by input device-
:number, text, picture by output device . Examples??
E-BUSINESS Vs E-COMMERCE
The terms ‘e-commerce’ and ‘e-business’ are often used
interchangeably but what do these words really mean?
e-business covers online transactions, but also extends to all
Internet based interactions with business partners, suppliers
and customers such as: selling direct to consumers,
manufacturers and suppliers; monitoring and exchanging
information; and collaborative product design. These online
interactions are aimed at improving or transforming business
processes and efficiency. e-commerce refers to online
transactions - buying and selling of goods and/or services over
the Internet.
E-BUSINESS
 Online marketing communication:

Direct Email Marketing

 Direct email marketing is a format for email-based
campaigns in which standalone advertisements are sent to
a targeted list of recipients. The messages, which may be
text or HTML.
 Online marketing communication:
Online Catalogue
* Internet-based presentation of a set of items
available for purchase, including description,
price, and ordering information- cyber catalog,
electronic catalog and web catalog.
*Lower costs (no paper, printing &
postage),24-hour accessibility, and the
ability to quickly change price and product.
* Amazon.com - serving as a model for on-line
catalog marketers. In travel and entertainment
ticketing, entertainment merchandise (books,
magazines, videos, music), grocery and
drugstore sales, computer software, and
computer hardware.
 Online marketing
communication:
Public Relations is the
practice of managing the flow
of information between an
individual or an organization
and the public