Learning objectives:

 At the end of the chapter, students should be able

to:

o Explain the concept and history of entrepreneurship

o Explaining the advantages of a career as an
entrepreneur
o Describes the development of entrepreneurship in
Malaysia
o Distinguish between facts and myths related to
entrepreneurship
o Explaining the essential characteristics of successful
entrepreneurs
Concept of Entrepreneurship
 Entrepreneur
 Are individuals who organize, manage and assume the risk

for the business or company

 Richard Cantillon - entrepreneurs that someone involved

in the transaction for the benefit, in particular an

assessment of the practice of business in the face of
uncertainty.
 Joseph Schumpeter - entrepreneur or business associated

with the activities that led to reforms that affect the

economic development

 ENTREPRENEURSHIP - issues related to entrepreneurship

or entrepreneurial skills
History of Entreprenuership
 3000 years ago - Silk Road is one of the earliest
entrepreneurial activity
 18th century - industrial revolution - the emphasis in
mass production and economies of scale
 The New Economic Policy (1971) - the development of
entrepreneurship has been used as an important national
agenda in order to develop the Bumiputera Commercial
and Industrial Community
 New Economic Model (2010) - entrepreneurship as one of
the country's economic driver -Update support capital
fund to assist entrepreneurs and strengthen financial and
technical support to small and medium enterprises (SMEs)
and micro-businesses
The difference Entrepreneurs and
Traders/businessman
 businessman - manage and operate the
business at the same size without innovation
and avoid taking risks to grow your business
 Entrepreneurs - always looking for

opportunities to grow the business, using

innovation and creativity to improve business
performance, lead and participate actively in
the management and decision-making, as
well as willing to take a calculated risk to
expand its product or service offered.
A Career as Entrepreneur
 “Entrepreneurship is living a few years of your life like most people
won’t, so that you can spend the rest of your life like most people
can’t - Anonymous”

 ADVANTAGES
 Freedom to control the direction of your career and life
 Opportunity to build a continuing legacy
 freedom of time
 Opportunities to generate income without limit
 The opportunity to contribute and positively impact

society
 Self achivement
Entrepreneurship development in
Malaysia
 Entrepreneurship development - includes the selection process,
motivation, culture, training and education as well as technical
and financial support
 This requires the implementation of programs, strategies and

support from government institutions and non-governmental

 In Malaysia, the government has implemented various activities

and programs in developing entrepreneurship through various

ministries and agencies, including:
 Ministry of Trade and Consumer Affairs (Ministry)
 Ministry of Science, Technology and Innovation
 Ministry of Higher Education
 SME Corporation Malaysia
 Permodalan Nasional Berhad
 National Entrepreneurship Institute
Formation of Entrepreneurial Culture
 Include the establishment of an environment where
individuals are given the motivation to innovate, create and
take risks.
 It should be applied from the early stages to ensure that

interests in the field of entrepreneurship can be embedded

more easily
 Socialization - an appreciation of values, attitudes, thinking

and psychology
 The socialization process includes the development of

resilience in the face of pressure, the ability to deal with

uncertainty, self-reliance in making decisions, endurance
work for a long time, especially in the early hours of the start
of business, as well as the ability to confront and manage
risks
Entrepreneurship Education
 Education in entrepreneurship will help the development
of skills and knowledge, which in turn can be used in
starting, managing and growing a business.
 The goal of entrepreneurship education is to provide

students with the knowledge, skills and motivation to

encourage entrepreneurial success in various fields.
 Efforts to cultivate entrepreneurship through education

has been carried out by the Ministry of Education

starting from the primary school level. The basic
principles in the field of entrepreneurship has been
introduced through a variety of subjects such as
Mathematics, Integrated Living Skills and Education
Trade and Entrepreneurship
Entrepreneurship Education
 At the tertiary level, the Ministry of Higher Education also introduced
the 'Entrepreneurship Development Policy of Higher Education'
which was launched on 13 April 2010 to promote education and
entrepreneurial development in a systematic and holistic manner.
 Last, the Malaysia Education Blueprint (MEB) 2015-2025 - aims to

form graduates with a holistic, balanced and entrepreneurial in line

with the National Education Philosophy.
 Entrepreneurial mindset - thinking that influences behavior towards

results and entrepreneurial activity, tendency towards innovation,

opportunities and results of the new design.
 Entrepreneurial skills - the ability to learn through experience of

entrepreneurship, creativity and innovation, identification of

opportunities and entrepreneurial strategy, risk tolerance, internal
locus of control, high performance and endurance, as well as
financial management.
The benefits of entrepreneurship
 Benefits for individuals - helping entrepreneurs
increase the capacity, skills and knowledge in their
respective fields - to help achieve business goals.
 The benefits to society - the contribution of ideas,

expertise and financial support to assist

communities in social and community work.
 Benefits to the State - to encourage economic

growth and boost the country's competitiveness on

the world stage. Entrepreneurship help boost the
national income and contribute to the gross
domestic product (GDP) and stimulate investment
from outside the country.
Entrepreneurship Myths
 All successful entrepreneurs are born
 Entrepreneurs are the extreme risk takers
 The goal and motivation of entrepreneurs is simply to
accumulate wealth
 Entrepreneurs need a huge capital to succeed
 Entrepreneurs need a great idea and unique
 Entrepreneurs just need good luck to succeed
 Most successful entrepreneurs are those who fail
academically and did not like to socialize
 All entrepreneurs are innovators
 Entrepreneurs need to meet all the entrepreneurial profile
 Entrepreneurs are implementing rather than thinkers
The characteristics of successful
entrepreneurs
 Having a clear vision and mission
 Dare to take a calculated risk
 Self-confidence

 Creative and innovative

 high integrity
 Active search for, seize and create opportunities
 Passionate and motivated

 Flexible and open-minded

 Financial management skills

 Quality leadership