ENTREPRENEURSHIP

and
ENTREPRENEUR
Engineering Entrepreneurship
Second Semester of A.Y. 2014/2015
International Program
Civil Engineering Department
Faculty of Engineering
Universitas Atma Jaya Yogyakarta

ENTREPRENEURSHIP

HISTORY of
ENTREPRENEURSHIP

Entrepreneur is from French word

In English means between-taker or gobetween
Known as science in economics since 1755
First person to introduce was Richard Cantillon
Cantillon said, an entrepreneur is someone
pays particular price for a particular product
and sells it later with uncertain price while
making decisions related to use resources and
to accept risks of business
Entrepreneurs attempt to find best
opportunities in using resources to give
highest possible commercial results

ESSENTIALS of
ENTREPRENEURSHIP
In daily life, there are still many people interpret
and consider entrepreneurship is identical to
what owned and done by entrepreneurs
inappropriate because soul and attitude of
entrepreneurship do not belong only to
entrepreneurs but also by anyone who think
creatively and act innovatively such as farmers,
government officers, private employees,
students, teachers, project managers
Innitially, entrepreneurship was found in
business but it is recently developed in various
aspects of life, it is even one of requirements to
be a leader of an organization

ESSENTIALS of
ENTREPRENEURSHIP
Creative and innovative ability as a base,
tricks, and resources to find successful
opportunity
Ability to create something new and different
through creative thinking and innovative
action for the creation of opportunity
Ability in creating added value in market
through management process of resources
using new and different ways such as
technology development
scientific knowledsge invention
improvement of current products of good &
service
find new ways to obtain more products with more
efficient resources

PROCESS of
ENTREPRENEURSHIP
It is a process of running new
business, either:
new product to current market,
current product to new market, and/or
create new organization

It has 4 (four) real phases, i.e.:

Identifying and evaluating opportunities
Developing business plan
Determining required resources
Running business

CAPITALS of
ENTREPRENEURSHIP
Not necessarily
money and
goods

but also
intellectual ideas + knowledge, ability,
skill, commitment, responsibility
social and moral honesty & trust to shape
image, integrity, loyalty, fainess, helpful,
respectful, lawful
mental courage to face challenge & risk
based on spirituality

Entrepreneurship and
Employability
Jobless young people are all over the world, they
face difficulties in transition from educational
world to the professional world important and
lingering issue in Europe and industrial countries;
it attracts attention of UN, World Bank, ILO
Predominant factors contributes to creation of
employment for young people:
Employability: ability to penetrate labor market and
keep achievement even capability to get other work
Equal opportunities: balance opportunity
Entrepreneurship
Employment creation

REQUIRED SKILLS in EMPLOYABILITY

BASIC SKILL
Required as base of
further development

TEAM WORK SKILL

PERSONAL MANAGEMENT
SKILL

Required productively
to contribute or add
value to work result,
project or team

Attitude and behavior to support

someones potentials to grow and
to offer bigger opportunity for
achievement

Work with other

Communication
people
Information
Participating to
management
project and work
Mathematical ability
Thinking & problem
solving

Showing positive attitude and

behavior
Responsible
Adaptable
Continuous learning
Work safely

ENTREPRENEURSHIP
Selling skill
Leadership/
humanity
EMPLOYABILITY
Communication
Team work
Personal
development

Creating
business

ENTREPRENEUR

ENTREPRENEUR
Is someone who creates new business by
taking risk and uncertainty to gain benefit
and growth by identifying opportunities
and combining resources to establish it

Good entrepreneur is risk-avoider and not

risk-taker.
They seem as risk-takers since they see
market in different way of the common way
people normally see.
They see product or service according to
change of culture.
They immediately create it.
They systematically eliminate all risk factors
and will be protected from risk when entering
the market.
They become risk eliminator.

 In perception of Adam Smith,

entrepreneurs react on economic
change so that they become
economic agents who transform
demand to be supply
Entrepreneur does not belong to
business only. Hence, it is grouped
into 4 (four), i.e.:

business entrepreneur
government entrepreneur
academic entrepreneur
social entrepreneur

ENTREPRENEUR
CHARACTERISTICS
Internal control locus: control ownself fate,
direct ownself, love autonomy
High energy level: persistent human, willing to
work hard, willing to give extra effort to reach
succeed
High need of achievement: motivated to act
individually to gain challenging goals
Tolerance upon ambiguity: willing to accept
risk, tolerant to situation of high uncertainty
High trust: confident on self-competence, selfconfident, willing to make decisions
Action oriented: try to act preceding problems,
try to finish task as soon as possible, not wasting
time

Can entrepreneur be resulted from

education?
Answer:
entrepreneur is result of
born
environment
practice/exercise

CONVENTIONAL MANAGER vs.

ENTREPRENEUR
CONVENTIONAL MANAGER

ENTREPRENEUR

Highly aware of rules and bans

Consider rules only as guidance

Sensitive of future and willing to

delay return

Concept of future is based on

chimera
Lower treshold of frustration

Strong desire to be accepted

Unclear control, succeed,

responsibility
Possibly manipulative and
exploitative to others

Able to identify problem in all

directions of action
Make detail plan

Impatience of discussion and

theory
Act fast following intution

POTENTIAL
DISADVANTAGES
of
ENTREPRENEUR
1. Uncertain income
2. Risk of lost all investment research-based risk of
failure of small businesses is relatively high: 24% new
businesses fail within 2 years, 41% within 4 years,
63% within 6 years
Questions prior to business establishment:
What is worst to happen if I open a business and fail?
What is the chance of the worst to happen?
What to do to reduce risk of failure?
If it happens to fail what is the back up plan to
overcome it?
3. Work long and hard 60-69 hours/week on average

TIME SPENT PER WEEK

TO WORK AS AN
ENTREPRENEUR

POTENTIAL
DISADVANTAGES
of ENTREPRENEUR

1. Low quality of life prior to settled business

most entrepreneurs start at the age of 30
when they have family to take care of
2. High mental stress
3. Full responsibility

AGE TO START AS
ENTREPRENEUR

The Entrepreneur..
Ones see but not think
Think but not understand
Understand but not being impressed
Being impressed but not act
Act but not doing entrepreneurship
Doing entrepreneurship but not successful
Real entrepreneur fails 10 times but raises 11 times
(Dr. Ir. Ciputra)