1.1.

1 WHAT IS ENTREPRENEURSHIP

"Process of seeking business

opportunities, creating
something new and also
develop and expand the
business."
Who is the entrepreneur ?

"who sets up a business,

taking on financial risk in the
hope of profit."
1.1.2 Entrepreneur Vs
Businessman
 1.1.3
TYPES OF
ENTREPRENEURSHIP
INTRAPRENEURSHIP
an entrepreneur within a large organization with high
entrepreneurial characteristics who strongly believes in his
talent and ability and has strong desire to create something
using his own initiatives and creativity.
Eg: Tan Sri Ali Hashim
( Bekas CEO JCORP)
TECHNOPRENEURSHIP
an entrepreneur who involves
himself in technological changes in
producing goods and services for
his organization.
Eg : Jack Ma
( founder of Alibaba)

COPRENEURSHIP
an individual or a group of individuals in association with an existing
organization that creates a new organization or instigates a renewal
or innovation within the organization.
Eg: Rich DeVos & Jay Van Andel
founder Amway
 SOCIAL
ENTREPRENEURSHIP
Someone who recognizes a social problem, and
uses entrepreneurial principles to organize, create,
and manage a venture to make social change.
Eg: Saiful Nang
founder Pertubuhan Kebajikan Rumah Pengasih
Warga Prihatin
CYBERPRENEURSHIP
Someone who is starting or running a business in
cyberspace by using the Internet
Eg: Larry Page & Sergey Brin
( founder of Google)

 1.1.4
ENTREPRENEURSHIP
THEORIES
 ENTREPRENEURSHIP
THEORIES

2. SOCIOLOGICAL
PERSPECTIVE
ECONOMIC MANAGEMENT
1. 4.
PERSPECTIVE PSYCHOLOGICAL PERSPECTIVE
3.
PERSPECTIVE

 1. ECONOMIC PERSPECTIVE

•Richard Cantillon (1755)

Entrepreneurs as an important
group in the society and the key
economic player in developing
national economy.
 1. ECONOMIC PERSPECTIVE

•Adam Smith (1776)

Entrepreneurs is person who

transforming demand into
supplier
 1. ECONOMIC PERSPECTIVE

•Joseph Schumpeter (1934)

Entrepreneurs is innovator who

brings economic development
through new combination of
factors of productions.

" Creative destruction"

 2. SOCIOLOGICAL PERSPECTIVE

•Ibn Khaldun

•Entrepreneurs are the ones who bear the

consequences of their actions in term of
gains and losses.

•The increase in socialization and

interaction within the community leads to
higher civilization therefore development,
modernization and entrepreneurial
activities occur more in urban areas than
in countryside.

 2. SOCIOLOGICAL PERSPECTIVE

•Max Weber

•Describe the entrepreneurs as the

holder of an ‘instrumental rationality’
which makes him capable of linking
systematically certain goals (the pursuit
of economic gain) with the most proper
means – a pervasive attitude to
calculation.

 3. PSYCHOLOGICAL PERSPECTIVE

•Mcclelland (1951)

High need of achievement &

motivation drives people to
become entrepreneur.

 4. MANAGEMENT PERSPECTIVE

•Peter F. Drucker (1985)

Entrepreneur as someone who

maximizes opportunity and always
searches for change.

 4. MANAGEMENT PERSPECTIVE

•Donald F Kuratko and Richard M. Hodgetts

Entrepreneur as one who undertakes,

manage, and assume the risk of a
business.

 1.2
ENTREPRENEUR`S
COMPETENCIES
ENTREPRENEUR`S Personal Initiative systematic
endurance planning
COMPETENCIES High quality work self confident
Seize opportunity Creative problem
Information Seekers solving
Commitment efficience
towards work Assertation
agreement Persuasuion
Power of authority

13 entrepreneurial
competencies
BY MC LELLAND & MCBER (1985)
 Entrepreneur competencies

1. initiative 2. Persistence
The entrepreneur should be able to An entrepreneur is able to make
take actions that go beyond his job repeated efforts or to take different
requirements and to act faster. actions to overcome an obstacle that
get in the way of reaching goals
Examples

Examples
• Acts to extend the business into new

areas, products or services • Takes repeated or different actions to

overcome an obstacle
Entrepreneur competencies
cont..
3. Sees and acts on 4. Information
opportunities Seeking
An entrepreneur always looks for An entrepreneur is able to take
and takes action on opportunities action on how to seek information to
help achieve business objectives or
clarify business problems
Examples

Examples
• Sees and acts on new business

opportunities • Uses contacts or information

networks to obtain useful information
 Entrepreneur competencies
cont..
5. Concern for High 6. Commitment to
Quality of Work Work Contract
An entrepreneur acts to do things An entrepreneur places the highest
that meet certain standards of priority on getting a job completed.
excellence which gives him greater
satisfaction.
Examples Examples

• States a desire to produce or sell a •Makes personal sacrifice or expends

top or better quality product or service extraordinary effort to complete a job
 Entrepreneur competencies
cont..
7. Efficiency 8. Systematic
Orientation Planning
A successful entrepreneur always An entrepreneur develops and uses
finds ways to do things faster or with logical, step-by-step plans to reach
fewer resources or at a lower cost. goals.
Examples
Examples

•Plans by breaking a large task down into
• Looks for or finds ways to do things sub-tasks
faster or at less cost • Develops plans that anticipate obstacles
 Entrepreneur competencies
cont..
9. Problem Solving
10. Self-
Confidence
Successful entrepreneur identifies A successful entrepreneur has a
new and potentially unique ideas to strong belief in self and own abilities.
achieve his goals
Examples

Examples
• Switches to an alternative strategy to

reach a goal • Expresses confidence in own ability to

• Generates new ideas or innovative complete a task or meet a challenge
solutions
 Entrepreneur competencies
cont..
11. Assertiveness
An entrepreneur confronts problems
and issues with others directly
Examples
• Confronts problems with others
directly
• Tells others what they have to do
12. Persuasion
An entrepreneur can successfully
persuade or influence others for
mobilizing resources, obtaining inputs,
organizing productions and selling his
products or services..
Examples
• Convinces someone to provide financing
 Entrepreneur competencies
cont..
13. Use of Influence
Strategies
An entrepreneur is able to make use
of influential people to reach his
business goals.
Examples

• Uses a strategy to influence or

persuade others
1.3 Importance of
Entrepreneurship!
 A. Self Development
1. Opportunity to maximize self-potential

Can maximize an individual’s skills and capabilities.

Always challenge his self-ability.
Will be able to overcome obstacles with the strength of creation and innovation and view
opportunities behind the obstacles.
Will not be satisfies with their current achievement and are prepared to work hard to be in a
much better position in the future.
 Self Development
2. Opportunity to obtain unlimited financial rewards

One of the aims is to obtain profits

Financial return is a reward as proof to his continuous effort in the business.

Profits achieved by the company symbolize the success of the
Company as it allows the company to expand its operations, enables the company to use the
latest technological applications in production and allows promotions to be done aggressively.
Can increase the confidence of creditors and supplies to settle any loans and credits.
 B. Family Development
1. Increase family income

Profit gained from entrepreneurial activities can

help increase the family income especially
when it is a part -time venture.

A family that indulges in a part-time business does not have to depend entirely on monthly
salaries for survival.

Family choose full-time business, they not only gain profits, but also the freedom to manage the
household without the constraints on a full-time job.
 Family Development
2. Raises living standard

When a family’s income increase, this will subsequently raise the living standard of the family.
Better home
Quality education
Health services
 Family Development
3. Improve social status

Raises the honor and prestige of a family in society especially when the success
is obtained through hard work, dedication and honestly.
C. Society & Community
Development
1. Improve the standard of living and lifestyle
With the available job opportunities the society is able to enjoy
income/salaries.
This income can be used to buy various products or services that needed.
Enhanced the quality of life. Entrepreneur are produce new products that
are sophisticated enough to help society raise its standard of living.
Society & Community
Development
2. Fulfills society’s needs and wants

Entrepreneurs are manufacturer or businessman who produce or supply various

goods and services to fulfill the needs and wants of society.
Successful entrepreneur is one who is able to identify the needs and wants of
society and supply products and services to the consumers.
In order to fulfill customers’ demands – always increasing and changing, makes
improvement, develop new product to meet taste and demands.
Society & Community
Development
3. Create choices through innovative and creative
production techniques
Entrepreneurs utilize factors of production such as land, capital,
technology, information and human resources through innovative and
creative production techniques.
Always identify opportunities in the environment and increase activities to
benefits the society and get profits.
 1.4
ETHICS,PROFESSIONALISM
AND
SOCIAL RESPONSIBILITIES
OF
ENTREPRENEUR
 Ethics & Professionalism
Ethics
Ethics are the morals and principals that
govern a person's behaviour.
People with robust work ethics perform
their work with full dedication.
They put persistent efforts, leading them
to produce high-quality work consistently.
Professionalism
Professionalism is the conduct, behaviour,
and attitude of a person in a work or a
corporate environment.
Professionalism can, indeed, be taught, and
it has been for centuries, but not in the
classroom
Professional behaviours are recognized and
promoted while unprofessional practices
get penalised, directly or indirectly.
SOSIAL RESPONSIBILITY OF ENTREPRENEURS

CUSTOMER
SOCIETY STAFF

SUPPLIERS ENVIRONMENT

CREDITORS COMPETITORS

GOVERNMENT
 CUSTOMERS

1. 2. 3.
Customer relations Monitor complaints Gather customer
feedback
STAFF

1. 3.
Take care staff welfare Adequate wage to 5.
workers
Conduct courses and
2. 4. training

Provide guidance Rewards staff

GOVERNMENT

1. 3.
Create job opportunities More infrastructure 5.
facilities for society
Diversify the national
2. 4. economy not to depend
one sector only.
Improving lifestyle of the Increase national income
society
SOCIETY

1.
Fulfill the needs and wants 3. 4.
of the customers
Improve lifestyle of the Produce, create, and
2. society improve product

Produce quality product

COMPETITORS

1.
Healthy competition 3. 4.
Share ideas and opinion
Create more job
2. opportunity
for obtained the best
service
Work together to
produce best product
SUPPLIER

1. 2. 3.
Good relationship with Share opinions and Create new product
supplier experiences
CREDITOR

1. 2. 3.
Meet the financial Manage the business well collaboration doing
obligation so that creditors can be business
paid on time
ENVIRONMENT

1. 2. 3.
Production process does Enforce specific Produce environmental
not harm the environment guidelines that limit the product
amount of poison
 MPU 22012 ENTREPRENEURSHIP

THANK YOU...

Adijah Ayob (PUO)

Bachelor Entrepreneurship (UUM)
MSc Science (UUM)