CHAPTER 1

Introduction to
Entrepreneurship
 CLO 1
Propose the value proposition of
entrepreneurial idea using Business
model Canvas
LEARNING OBJECTIVE

1.1Discuss the entrepreneurial concept and theories

1.2 Discuss the competencies of entrepreneurs

1.3 Discuss the importance of entrepreneurship to self,

family and society development

1.4 Discuss ethics, professionalism and social

CONCEPT OF ENTREPRENEUR
AND ENTREPRENEURSHIP
ENTREPRENEUR
Entrepreneur is an Economic Agent who plays a
vital role in the economic development of a country.
An Entrepreneur is an individual with knowledge,
skills, initiative, drive and spirit of innovation who
aims at achieving goals.
An entrepreneur identifies opportunities and seizes
opportunities for economic benefits.
SEVERAL DEFINITION OF ENTREPRENEUR
◦ Schumpeter: innovator who implements change in economy by introducing new
goods
◦ French word: entreprendre – under take or to try
◦ Kuratko & Hodgetts: individuals who organizes, manages, assumes the risk &
business
◦ Zimmer & Scarborgough: individual creates a new buss in the face of
uncertainty to achieve profit by identifying & capitalizing opportunities and
assembling the necessary resources
◦ Accept risks and opportunities of creating, operating, and growing a new business
◦ Take risks to combine factors of production (capital, labour, raw mat, land)
◦ Manages economic activity, sponsoring, owning, managing, bearing risk of buss
 Carland:Establish a buss and manages it to obtain profit and to be successful
 Who establish new entity to offer a new or existing product or service into a new or
existing mkt,
 Who able to perceive an opportunity for a buss and create an organization to
develop and manage that buss successfully
 Able to identify and seize the opportunity and bring in the necessary resources e.g
finance, workforce, raw materials to develop & mkt the product & services.
◦ Takes proper action that imaginative, creative, and innovative
◦ Alert about buss opportunities that have not seen by the others
DEFINITION OF
ENTREPRENEURSHIP
Process of creating and expanding business by
changing national development and societal
prosperity.
Process seeking business opportunities under
conditions of risk.
Process of creating something new value by
devoting the necessary time & effort, assuming
accompanying financial, physical and social risks
and receiving resulting reward of monetary,
personal satisfaction and independence.
 Differentiate between Entrepreneur &
Businessman (Small)
Characteristics Entrepreneur Businessman
Time Unlimited Limited

Nature of job Flexible Rigid in adapting

to change

Decision making Make own Follow decision

decision made by others
Effort & Continuous Low
Commitment

Risk taker Moderate Low

Goal Maximization Solely for profit

self potential by maximization
utilizing available
opportunities
THEORIES OF
ENTREPRENEURSHIP
 ECONOMIC
SOSIOLOGICAL
PSYCHOLOGICAL
ANTHROPOLOGICAL
ECONOMIC THEORY

◦ Favorable economic conditions

◦ Economics incentives as motivators
◦ Incentives include taxation policy, industrial
policy, sources of finance and raw material,
infrastructure availability, investment and
marketing opportunities, and technology.
SOCIOLOGICAL THEORY

◦ Society’s values
◦ Customs & traditions
◦ Religious beliefs
◦ Social changes
◦ Influence the behavior of individuals in a
society
PSYCHOLOGICAL THEORY
Necessary psychological characteristics

Vision
Foresight
Ability to face opposition
Need for high achievement
Self-reliance
ANTHROPOLOGICAL THEORY

◦ People with high achievement orientation

are more likely to become entrepreneurs
◦ Not influenced by money or external
incentives
◦ Consider profit to be a measure of success
and competency
COMPETENCIES OF SUCCESSFUL
ENTREPRENEUR
◦ Personal initiative
◦ Seize opportunities
◦ Endurance
◦ Information seeker
◦ High work quality
◦ Commitment towards work agreement
◦ Efficient
◦ Systematic planning
◦ Creative problem solving
◦ Self confidence
◦ Assertion persuasion
◦ Power and authority
Attitudes, skills & knowledge required by
entrepreneur
Attitudes skills knowledge
Motivation Making decision Law
Confidence Solving problem Management
Initiative Negotiation Economics
Responsibility Communication Accounting
Risk taker Creativity Values
Diligence Team work business
Mental & physical Management Culture
fitness
Information seeker technical Project
management
The importance of entrepreneurship to
self, family and society development
Self
Being an entrepreneur takes commitment.
Family

• People have limited freedom in their jobs.

• 75% of workers don’t think their bosses keep the team motivated.

• The lack of motivation in their current job can inspire people to leave
and become an entrepreneur.
Entrepreneurs have great ideas

• Hewlett Packard is worth

over 30 Billion dolar today.
• They started with less than
$600.
• Obviously, this is an
anomaly.

There is nothing wrong with

taking an existing idea and
making your own business
out of it.
As long as you are not break
the terms on anyone else’s
trademarks, patents, or
intellectual property – it is
fine.
Ethics, professionalism and social
responsibilities for entrepreneurs
 customer

creditors staff

Social
supplier environment
responsibilities

Society/
competitors
community

government
 U.
YO
NK
HA
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Prepared by Coordinator MPU 22012 PKS