WHAT IS YOU DREAMS ?

COMFORTABLE
GLAMOUR RICH

SUCCESS
AUTHORITIES

POPULAR
PROUD
HEALTHY

FAMOUS
BEAUTIFUL

GREAT BE GLORIFIED

MONEY CLEVER
 BILLIONAIRE MALAYSIA !

1. Robert Kuok Hock Nien (84) RM 58.110 billion (Kump.Kerry/Kuok)

2. T. Ananda Krishnan (69) RM 19.625 billion (Usaha Tegas)
3. Tan Sri Lee Shin Cheng (69) RM 14.943 billion (Kump.IOI)
4. Tan Sri Quek Leng Chan (65) RM 11.098 billion (Kump.Hong Leong)
5. Tan Sri Syed Mokhtar Albukhary (57) RM 8.550 bil. (Yys.Albukhary)
6. Tan Sri Teh Hong Piow (78) RM 8.06 billion (Public Bank)
7. Tan Sri Tiong Hiew King, 71, RM 3.87 billion (Rimbunan Hijau)
8. Tan Sri Vincent Tan, 56, RM 3.40 billion (Berjaya Group)
9. Tan Sri Lim Kok Thay. 56, RM 3.16 billion (Genting Group)
10. Tan Sri Azman Hashim, 68, RM 2.87 billion (Arab-Malaysian Corp )
 Khatijah
Ahmad

Syed Mokhtar Azman Hashim

Albukhary

Maznah
Hamid

Rozali Ismail

Hamdan Hohd Mustapha

Kamal

Abu Shahid Mohd

Mokhzani
Mahathir

Tengku Eleena
DPB2012 - ENTREPRENEURSHIP
CHAPTER 1: INTRODUCTION TO ENTREPRENEURSHIP
Course Learning Outcomes:
▪ Upon completion of this topic, students should be able to:
▪ Explain clearly the concept of entrepreneurship, process and
procedures involved in developing effective business plan.
1.1 Overview of entrepreneurship
1.1.1 Concept of entrepreneur and entrepreneurship
1.1.2 Differentiate between businessman and entrepreneurs
1.1.3 The roles and social responsibilities of
entrepreneur
1.1.4 Competencies of entrepreneurship
1.1.5 Personal traits/behaviors associated with successful
Malaysian’ entrepreneurs
 Definition of Entrepreneur
▪ “Entrepreneur” – comes from the French word,
‘entreprendre’, which means “to undertake or try” or
“responsibility”
▪ Entrepreneur is an individual who ‘undertakes’ the risks
of a new enterprise.
▪ An entrepreneur is an individual who organize, manages
and resume the risk of a business (Kuratko and Hodgetts)
 Definition of Entrepreneur
▪ Entrepreneur is an individual which established
business  and manage to seek profit and to
continue to expand / growth (Carland, 1984)
 Entrepreneurship
▪ Entrepreneurship is the process of seeking business
opportunities under conditions of risk.
▪ Also refers to the process of creating something.
▪ The entrepreneur is an innovator who uses the
process to challenge existing norms via combinations
of new resources and methods in commerce.
 Entrepreneurship
▪ Entrepreneurship is ability, capabilities and tendency to
perform the following activities:
Identify business opportunities
Manage a business effort which bring profit to the
entrepreneur and the public
Obtain success and richness by fulfilling the society’s needs.
Take calculate risk.
Manage and utilize the factors of production to bring
economical development and enhance social welfare
Entrepreneurship
 Different Concept of Entrepreneur and
Businessman
▪ Traders are people who undertake the sale and
purchase of goods or perform services activities with a
view to profit
▪ Traders are people who engage in selling activities
▪ The objective is to achieve the dealer personally
 Businessman Characteristic
▪ Buy goods for resale
▪ Prices vary with the item purchased the resale price,
usually higher
▪ Persuasion can manage the business well. It should be
able to manage money, workers, goods and stores to be
in order and systematic.
▪ Not create their own items to sell, but buy goods from
entrepreneur to sell
Differences Between an Entrepreneur and
Businessman
 Social Responsibilities of Entrepreneurs
▪ Social responsibilities means being concerned about
people or society as a whole
▪ Entrepreneur are entrusted with responsibility of
improving the quality of human life
 Customers

Society /
Country
Community

Social
Responsibilities

Competitors Suppliers

Staff
 Responsibility Towards Customers
 Establish a code responsibility that sets the
guidelines for product quality and customer relations.

 Monitor complaints from customers regarding the

quality of the product or treatment received from
employees. Follow up on the matter can then identify
the necessary corrective action to be taken

 Gather customer feedback via customer

questionnaires
 Responsibility Towards Society / Community
 Produce, create and improve products
 Create choices through innovative and creative
productions
 Produce product of high quality
 Always be sensitive to the needs of customers
 Fulfill the needs and wants of customers
 Create more job opportunities
 Improve the lifestyle of the society
 Responsibility Towards Suppliers
 Strengthen good relationship with suppliers

 Pay any dues to suppliers at the agreed stipulated

time

 Share opinions and experiences to create new ideas

 Responsibility Towards Staff
 Always take care of the staff welfare
 Give adequate wage to the workers
 Do not restrain and always provide guidance to staff
 Conduct courses and training to update staff with the
latest information
 Reward staff with bonuses, allowances and others
benefits
 Appreciate and recognize dedicated and highly ethical
staff
 Responsibility Towards Competitors
 Practice healthy competition with competitors
 Share ideas and opinions on ways to prepare and provide
the best services to customers
 Work together to produce and create products that can
give the most benefits to the customers
 Healthy competition among entrepreneurs will lead to
more job opportunities for the community
 Responsibility Towards Country
 Create job opportunities
 Assist improving the lifestyle of the society
 Create more infrastructure facilities for the society
 Improve socio-economical aspects and increase national
income

Qatar ranks number one on the list of the

top 10 richest nations because of its high
GDP (PPP) per capita of $140,649
 Competencies of Entrepreneurship
▪ Entrepreneurial competency means the ability or
competence of a person to perform entrepreneurial
functions effectively
▪ Owned by the practices of behavior results from
influence of one’s live values, attitudes or internal
pressure to do an outstanding job
 Competencies of Entrepreneurship
1. Initiative
2. See and seize opportunities
3. Perseverance
4. Searching for information
5. Emphasized the high quality of work
6. Commitment towards Work Agreement
7. Oriented towards efficiency / efficient
8. Systematic planning
9. Creative problem solving
10. Self confidence
11. Assertion
12. Convince others / persuasion
13. Power and authority
 Initiative
▪ A person who is an individual initiative to create a job
task without ordered or forced
▪ Have proactive attitude and strives to develop its
business success
 See and seized Opportunities
▪ Entrepreneur who have the power to see and seize
the opportunity to have the efficiency to find and
identify business opportunities that exist
▪ Able to seize opportunities both to expand the
market, assistance to business interests and other
▪ Competency is a key factor for success and business
viability. This ability will help entrepreneurs start
businesses and enable the business life-lasting
 Perseverance
▪ Attitude determination and perseverance can be seen
through the action of entrepreneur as follows:
Do not feel sick looking at ways to achieve without
defeat
Always strive to overcome obstacles that may hinder
the achievement
Searching for Information
Individual attitudes are able to search for
information is:
Do their own research or survey to
obtain information and feedback to
provide goods or services to satisfy
customers’ access to specialist services
for business development and market
research to make its analysis

Information and feedback obtained will

be used to enhance the experience,
improve performance, and business-led
 Emphasized the High Quality of Work
▪ Tendency to produce or sell products of high quality
▪ Always compare the quality of work produced with
the quality of work of others that are at par or better
▪ Not merely to solve a task but will complete the task
with excellence and quality
▪ High quality work which can guarantee customer
satisfaction
 Commitment Towards Work Agreement
▪ Willingness to make personal sacrifices to complete a
job
▪ To take full responsibility in resolving a job
▪ Showing a concern for satisfying customers’ needs
and always ensure that every promise made,
especially with customers, supplier and other parties
met as agreed
 Oriented Towards Efficiency / Efficient
▪ Always find a way to do something with a lower cost
or with a shorter time than normally
▪ Always concerned about the estimated costs and
benefits of an improvement, change, or an action
▪ Business efficiency will increase profits and reduce
wastage and cost. This will help business success.
 Systematic Planning
▪ Planning and arranging the steps and divide large
task into smaller and easier
▪ Make plans to overcome the expected
▪ Value and choosing the best alternatives to an action
▪ Taken in a systematic and logical approach to
achieving goals
▪ Entrepreneur of systematic planning can improve the
performance and achievement of business goals
 Creative Problem Solving
▪ Find a smart steps to overcome the problem as best
as possible
▪ To find and produce new ideas or innovative solutions
▪ The action taken will be able to solve problems and to
create employee loyalty to the business
 Self Confidence
▪ A belief in the abilities and capabilities to get what
they desired
▪ Expressed confidence in the ability to solve a task or
meet a challenge
▪ Not afraid to try and not afraid to fail
▪ This attitude will inspire the confidence of others to
entrepreneurs and business
 Assertion
▪ Dare to voice their opinions or ideas directly to others
▪ Willing to take action despite having to face
opposition from other parties
▪ The nature of entrepreneurs will be able to guarantee
strict control of the organization well
 Convince Others / Persuasion
▪ Personal skills and can show others the quality of
information and experience
▪ Entrepreneurs need to have one of the power source
or combination of these resources as strategic
influence on customers, employees and the entire
industry (stakeholders to the business, employees,
customers, suppliers, financial institutions) and the
markets affected by it.
 Power and Authority
▪ Tend to think of strategies that can influence others without
deceit for a business goal
▪ Entrepreneurs must be able to influence the workers, and the
venture industry in order to achieve his vision. The 5 aspects
of influence that can be used
Influence on the absolute power
Influence based on the power to punish
Influence based on the power to give rewards
Influence based on the expertise
Influence based on the power to show good examples/model
1.2 THE CONCEPT OF E-BUSINESS
1.2.1 DEFINITION OF E-BUSINESS
1.2.2 THE IMPORTANCE OF E-BUSINESS TO ENTREPRENEUR
1.2.3 THE ADVANTAGES AND DISADVANTAGES OF E-BUSINESS
 E-BUSINESS

• The administration of conducting business via the internet. This

would include the buying and selling of goods and services, along
with providing technical or customer support through the internet.
• 1 tool @ a mechanism to help service providers / products
expand the product market @ their services
• Company can set up a virtual link and customers can visit at any
time and where they are
 E-BUSINESS

• E.g.: a seller of books, souvenirs, toys, and sport equipment to

set up outlets on the website as a virtual office
• The ideal business approach and has the potential and space
with that much discretion to continue to grow
• Business activities are conducted through telecommunications
networks involving the INTERNET
• Began in the West since the early 1970s
 THE IMPORTANCE OF E-BUSINESS TO
ENTREPRENEUR
1. Upgrade accessibility / access to product information
2. Provide more information to customer more accurately and
quickly
3. Provide important information to identify, match and make
innovation to the product
 THE IMPORTANCE OF E-BUSINESS TO
ENTREPRENEUR

4. The service is fast, easy, secure & reliable

5. Providing satisfaction to customer
6. To provide greater satisfaction to customers
 ADVANTAGES & DISADVANTAGES

Advantages
Cost effective
 The entire financial transactions will
eventually become electronic, so sooner
conversion is going to be lower on cost. It
makes every transaction through e-
commerce payment a lot cheaper.
Disadvantages
Security
 Customers need to be confident and trust
the provider of payment method.
Sometimes, we can be tricked. Examine on
integrity and reputation of the web stores
before you decide to buy.

Economy Benefits Integrity on Data and System

 E-commerce allows us to make transaction  Customers need secure access all the
without any needs on stores, infrastructure time. In addition to it, protection to data is
investment, and other common things we also essential. Unless the transaction can
find. Companies only need well built provide it, we should refuse for e-
website and customer service. commerce.
 ADVANTAGES & DISADVANTAGES

Advantages
Time Saving
 With e-commerce there is no driving in
circles while looking and digging in hopes
of finding what you need. Products are
easy to locate and can be delivered to your
door in just days.
Disadvantages
Delay in Receiving Goods
 Although delivery of products is often
quicker than expected, be prepared for
delays.  There is also a chance that your
product may be lost or delivered to the
wrong address.

Expand Business Reach Quality

 A business online does not have to make a  A consumer cannot actually touch products
site for every language. With the right until they are delivered to the door. It is
marketing, every consumer around the important to view the return policy before
globe can find the business site, products buying. Always make sure returning goods
and information without leaving home. is an option.
1.3 OVERVIEW OF BUSINESS PLAN

1.3.1 Definition of Business Plan

1.3.2 The Purpose and importance of business plan
1.3.3 The characteristics of a good business plan
1.3.4 Business plan format
BUSINESS PLAN
• Business planning is one of the management tools used to
achieve business objectives
• The accuracy of a business plan will reflect management's
ability, experience and history in running the business
• The business plan is also known as venture plan,
entrepreneur plan, working paper, project paper or
prospectus.
• The plan serves as a guide and blueprint for a proposed
business project that one intends to undertake.
 BUSINESS PLAN

• A business plan is very important to various parties for

many reasons.
• Among those who need a Business Plan are...
BUSINESS PLAN
THE IMPORTANCE OF A BUSINESS
PLAN
 THE IMPORTANCE OF A BUSINESS
PLAN
To Entrepreneur
1. Provide opportunities for entrepreneurs to see and evaluate business
ideas or business projects carefully, objectively and critically.
2. To provide an overview of the proposed project, whether viable or
not
3. Help entrepreneurs to make estimates and resource requirements of
the business properly and efficiently
4. Entrepreneurs realize the problems that may rise in the
implementation of business project
 THE IMPORTANCE OF A BUSINESS
PLAN
To Entrepreneur
5. Making the guidelines for managing daily business
6. Make predictions of sales, expenses and business cash flow
7. Explain the duties and responsibilities of employee and the
needs and expectations of business
8. Evaluate business performance
9. Plant for development of new products
10.Make basic recommendations for funding applications
 THE IMPORTANCE OF A BUSINESS
PLAN
To External Users
1. Bankers – to assess the potential of the proposed project in relation to the
application of business financing
2. Supplier – to get clear idea or business and financial position for the purpose of
evaluating whether to extend credit facilities or not
3. Staff – to understand the goals and purposes of the business and enable them to
carry out works as expected by the business
4. Consumer – to assess whether the business can offer products or services that are
safe and convincing. If the manufacturing process guarantees in terms of safety
and health
5. Investor – to assess the business information and provide greater confidence to
prospective investors or investors to invest with the business
 THE CHARACTERISTICS OF A GOOD
BUSINESS PLAN
Having a set of financial
Focusing on consumer Facts and information
statements: cash flow pro-
needs used is correct and current
forma, end accounts

Information or data
Information and data that changes from time to time be
collected will be analyzed
modified and updated
in detail and justified

Available – resources that can be trusted as business records and internal

data, government statistics, marketing research data and other
 THE BUSINESS PLAN FORMAT
• A formal Business Plan contain the following item:

1. Table of content 7. Organization/Management/ Administration plan

2. Executive summary 8. Marketing plan

3. Introduction 9. Operational plan

4. Objective / Purpose 10. Financial plan

5. Business background 11. Project implementation schedule

6. Business owner background 12. Conclusion

 THE BUSINESS PLAN FORMAT
1. Table of Content
This page will list the main headings, tables, schedules and appendices according to
page numbers.
This list will facilitate the reader in identifying the appropriate pages for easy reference.

2. Executive summary
It highlight the important matters of business plan
It should be possible to arouse the interest of the reader to examine the contents of the
business plan has been prepared
 THE BUSINESS PLAN FORMAT
3. Introduction
State types of business
Business location
Commencement date of the business
Background and types of business
 THE BUSINESS PLAN FORMAT
4. Objective / Purpose of Preparing a Business Plan
Clearly state the purpose of preparing a business plan
E.g.: to apply for a capital funding or a business site of Bank Pembangunan
Malaysia Berhad. Etc.
 THE BUSINESS PLAN FORMAT
5. Business background
Business name
Business address
Mailing address (if different)
Telephone number
Business form
Main activities of the business
Commencement date of the business
Business registration number
Initial capital
Name of bank
Bank account number
 THE BUSINESS PLAN FORMAT
6. Business owner background
Full name
Identity card number
Age
Gender
Fix address
Telephone number
Marital status
Courses attended
Skills
Experience
Current job
Other business (if any)
 THE BUSINESS PLAN FORMAT
7. Organization/Management/Administration Plan
EXAMPLE
No. Position / Designation No. of Workers
1. General Manager 1 Table Position and
2. Clerk 3 number of labor
3. Salesman 10

Designation Job Description

Financial Manager 1. Prepare annual budget for business
Job Description
2. Provide business financial reports
Schedule
3. Control and manage the use of business
resources
EXAMPLE
Designation No. Monthly EPF SOCSO Total
Salary

General 1 RM5,000 RM650 RM100 RM5,750

Manager Schedule employee
remuneration
Financial 1 RM2,500 RM325 RM50 RM2,875
Manager
Total 2 RM7,500 RM925 RM150 RM8,625
 THE BUSINESS PLAN FORMAT
8. Marketing plan
 THE BUSINESS PLAN FORMAT
9. Operational plan
 THE BUSINESS PLAN FORMAT
10. Financial plan
 THE BUSINESS PLAN FORMAT
11. Project Implementation Schedule
This table show the stages of events that will happen to business when business
done. Usually it shows the progress of the operation of the idea to reality.
These table are presented using graphs that clearly show all the activities that
will be made, when the activity will take place and how the relationship between
activities.
 THE BUSINESS PLAN FORMAT
12. Conclusion
Give statement to convince certain parties why the project should be continued or
loan must be given or licenses must be approved and so on
1.4 STARTS A BUSINESS PLAN

1.4.1 Prepare the business plan using the standard

format
THE END
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