FAMILY &

SMALL
ENTREPRENEURS
Chapter 1
Dr Nur Kamarul Hafiz bin Jamil
Faculty of Business and Accountancy
Lincoln University College
 Entrepreneurship: The Social and
Entrepreneurship Revolution

1 2 3 4 5
The Defining the Defining small Small firms Global
entrepreneurial entrepreneur firms around the entrepreneurshi
revolution world p monitor

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The Entrepreneurial
Revolution
1. Job creation and economic impact
2. Wealth generation
3. Innovation and adaptability
4. Social contribution
5. Cultural shift and recognition

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Job creation and
economic impact
• Entrepreneurs have become significant driver of job creation and
economic growth.

• Studies show that small, newly established firms contribute

significantly to job creation, often outstripping larger, established
firms.

• This is crucial for sustaining and enhancing the economic vitality of

nations

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Wealth
generation
Entrepreneurs have played a central role in wealth creation, with
many of the most successful corporations being founded by
visionary individuals.

This underscores the importance of entrepreneurship in creating

prosperity.

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Innovation and
Adaptability
Entrepreneurs thrive in times of uncertainty by innovating and
adapting to changing environments.

The ability to innovate and adapt is essential for success in

today’s dynamic business landscape.

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Social
contribution
Entrepreneurship extends beyond economic impact to contribute
to social change.

Entrepreneurs often identify unmet needs within society and

develop solutions that address the challenges.

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Cultural shift and
recognition
• There has been a cultural shift in how entrepreneurs are perceived,
with them being celebrated as heroes of the business world.

• Entrepreneurship is now recognized as a highlight valued skill set

characterized by qualities such as creativity, vision, and commitment.

• This entrepreneurial cultural fosters an environment supportive of

innovation and risk-taking.

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 Defining the
Entrepreneur

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 Intrapreneur

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 Three Start-up Typologies

• Firms that set-up that simply generate an income comparable to what they might
Salary-substitute firms earn as an employee
• E.g. plumbers, store owners etc.

• Firms that allow the founder to pursue a particular lifestyle while earning an
Lifestyle firms acceptable living doing so.
• E.g. sport instructors, artists, gym trainers

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 Three Start-up Typologies

The ones that bring innovative ideas and ways of doing things to the market.
Entrepreneurial firms
•

• Set up to grow from the start.

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 Defining Small Firms

Definition Definition
An independently or privately In general, you can define a small
owned and operated company business as one with fewer than
with fewer employees or less 500 employees.
revenue that other businesses
within a business’s particular
industry.

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Small firms
around the world
I. Economic contribution
II. Comparative analysis
III. Entrepreneurial eco-systems
IV. Challenges in assessment

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Economic
contribution
SMEs are the backbone of economies worldwide, contributing
significantly to employment and GDP

Their importance extends beyond traditional sectors, as they

dominate service sectors such as hospitality, retail, and
construction, playing a vital role in economic development.

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Comparative
Analysis
Comparing different regions provide valuable insights into the
characteristics and performance of SMEs.

There are differences in factors such as the speed of

expansion, productivity dispersion, and market share growth,
indicating variations in competitiveness and regulatory
environments between regions.

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Entrepreneurial
eco-systems
The success of SMEs is influenced by the entrepreneurial
ecosystem within a country or region.

Policies aimed at encouraging entrepreneurship may not

always lead to the growth of businesses.

Understanding the dynamics of the ecosystem is crucial for

policymakers and stakeholders aiming to foster sustainable
SME growth.

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Challenges in
Assessment
Assessing the true impact of SMEs can be challenging, particularly in
regions with significant informal sectors.

In Africa and the Middle East, a substantial portion of SME activity may
not be captured in official statistics due to informal operations.

This underreporting can skew perceptions of SMEs contributions to

employment and GDP, highlighting the need for improved data
collection methods and a deeper understanding of informal economies.

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What is it?
GEM is a research programme which was started in 1999
in 10 countries.

It is a harmonized assessment of the level of national

entrepreneurial activity in each of the countries.

The activity is the product of two things: 1)

entrepreneurial opportunity (demand), 2) entrepreneurial
capacity (supply)
 Social and Civic Entrepreneurs

Social entrepreneurs Civic entrepreneurs

Operates as entrepreneurs within organizations whose Operates within larger civic organizations in the public
primary purpose is social rather than economic (social sector, such as government, local councils, schools, health
enterprises). authorities and police forces.

They sometimes create these organizations like Their freedom of action may be limited by the rules and
intrapreneurs. regulations of the organization they work for.

Operates in a commercial way to achieve its social

objectives and any profits it generates are ploughed back to
help achieve them.

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 Conflicts within Social Enterprise

1. Conflict between social and 2. Democratic accountability

commercial operations
Social enterprises operate at the intersection of public and
Social enterprises often face a fundamental conflict private sectors, leading to conflicts in values and beliefs.
between their social mission and their commercial
operations. One major conflict arises concerning democratic
accountability, especially when the enterprise’s activities
This conflict arises when the objectives of the enterprises are not integrated.
are not effectively integrated, leading to potential
inefficiencies or dilution of social impact.

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 Conflicts within the Social Enterprises

3. Nature of objectives
Social enterprises relate to the nature of the objectives they
are set up to achieve.

While some enterprises have clearly non-political

objectives, others may be perceived as tools for social
engineering, often stemming from government policy
initiatives.

This conflict emerges when social enterprises are expected

to fulfil public sector responsibilities while also operating
with private sector efficiency and innovation.

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 Sustainable entrepreneurship refers to
the practice of conducting business
operations in a manner that not only
prioritizes economic profit but also
considers social and environmental
impacts, with the aim of creating
long-term value for all stakeholders. It
involves integrating principles of
corporate social responsibility (CSR),
sustainability, ethics, and good
governance into the core mission
and operations of a for-profit
commercial enterprise.

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 Implying the core business model

Implying technology as the driving

force behind the development

Sustainability Reflecting the belief that the

enterprise must partner with the local
Dimensions community

Implying the wide range of

environmental issues such as waste
and pollution

Implying the development should create

an infrastructure to facilitate learning and
transfer of knowledge
Discussion Question