Course 1 - Introduction to Entrepreneurship

1. Introduction to
Entrepreneurship
Authored By: Vierri Christian
Submitted to: Johan Jang

2. Defining Entrepreneurship
According to Hisrich and Peters (2002), entrepreneurship is a process made by the individuals by creating a new
business with the time, effort, financial, and risks needed in order to get the desired result of either personal
satisfaction and/or independence. Moreover, according to Stevenson and Jarillo (1990), entrepreneurship is the
process of an individual creating his/her opportunities considering the resources available to them either on their
own or in part of an organisation. Also, Wennekers and Thurik (1999) mentioned that entrepreneurship is the
willingness of the individual to create economic opportunities such as new products or new product market
either alone or within a team, setting aside the obstacles and challenges that has to be faced using the resources
that has been earned.

3. Examples of Successful Entrepreneurs
Local
An example of local entrepreneur in Indonesia is Erick Thohir. Erick Thohir was born in 30 May 1970. He had
a background of a businessman as he was born to a family of entrepreneurs, with his father being the owner of
Astra International, a public and multinational company that holds a field in automotive, IT, properties,
constructions, and infrastructure and logistics (Astra, n.d.). Erick graduated with a masters degree of business
administration from University of California, and took a bachelor’s degree at University of Glendale,and
proceeded to be a businessman in a media and entertainment field (Wink, 2017).
By the time he was 24, he established Mahaka Group along with his friends Muhammad Lutfi, Wisnu
Wardhana, and Harry Zulnardy. Mahaka Group owns some magazines and media businesses such as Golf
Digest, GEN 98.7 FM, Prambors FM, and many more (Wink, 2017). He also invested in some international
clubs such as a basketball team called the Philadelphia 76ers, and soccer club DC United and Inter Milan.

4. Examples of Successful Entrepreneurs
International
An example of an international entrepreneur and e-commerce pioneer is Jeff Bezos, the founder and CEO of
Amazon, and today the richest man in the world. Jeff Bezos was born on January 12, 1964. He received a
degree of computer science and electrical engineering in Princeton University in 1986.
He created Amazon, a online bookstore at the year 1994 when he was aged 30, and it would later on become
one of the successful businesses ever made. It only took Jeff Bezos 3 years to become an e-commerce leader,
and as years passed by, he started to use the Amazon platform not only to sell books, but also clothes,
electronics, toys, and many more (Biography.com, 2014).
Later on at 2013, Jeff Bezos would buy the famous American daily newspaper called “The Washington Post”,
and other companies associated with it for $250 million, which made the headlines everywhere in the world as
the Washington Post is considered a very successful business.

5. Categorization of Small Business in
Indonesia (UMKM)
Small-medium businesses or Usaha Mikro, Kecil dan Menengah (UMKM) is an important role for economic
development and distributing development results in Indonesia, it holds 99.99% of businesses operating in
Indonesia and also 90% of workforce. Having a small or medium business would get only a small impact by any
monetary crisis as it holds up small capital unlike large companies (Indonesia B, 2015, p.12).
However, According to Tambunan (2011), the presence of many micro and small businesses in Indonesia
determines that the country has many unemployed people and/or has poverty problems as most of these
businesses are held by people living in a poor household, or that they could not find any better job. Therefore, in
Indonesia, having a micro or small business established does not mean that the owners have entrepreneurial
spirit.

6. Categorization of Small Business in
Indonesia (UMKM)
Business size Assets Turnover
Micro business Rp.50 Million maximum Rp.300 Million maximum
Small business Rp.50 Million to Rp.500
Million
Rp. 300 Million to Rp.2,5
Billion
Medium business Rp.500 Million to Rp.10
Billion
Rp.2,5 Billion to Rp.50
Billion
Table 1: Criteria of Business Sizes (Indonesia B, 2015)
An example of SME (UMKM) is Usaha Dagang (UD) Bandar Mina, a business which moves in exports of tiger
and duck grouper fish which is originally from North Bali. the export destination is to Hongkong, China, Japan,
Thailand, Singapore, USA, and Korea. The condition of the fish is given fresh as it is for breeding (Indonesia B,
2015, p.).

7. References
Astra (n.d.). Astra International | Tentang Astra. [online] Astra.co.id. Available at:
https://www.astra.co.id/About-Astra [Accessed 23 Nov. 2018].Astra (n.d.). Astra International |
Tentang Astra. [online] Astra.co.id. Available at: https://www.astra.co.id/About-Astra [Accessed 23
Nov. 2018].
Biography. (2018). Jeff Bezos. [online] Available at: https://www.biography.com/people/jeff-bezos-9542209
[Accessed 23 Nov. 2018].
Indonesia, B. (2015). Bank Indonesia. [online] Bi.go.id. Available at:
https://www.bi.go.id/id/umkm/.../Profil%20Bisnis%20UMKM.pdf [Accessed 23 Nov. 2018].

8. Tambunan, T. (2011). Development of Micro, Small and Medium Enterprises and Their
Constraints: A Story from Indonesia. Gadjah Mada International Journal of Business, [online] 13(1),
p.21. Available at:
https://www.researchgate.net/publication/294570034_Development_of_Micro_Small_and_Medium_Ent
erprises_and_Their_Constraints_A_Story_from_Indonesia [Accessed 23 Nov. 2018].
Wink (2017). Biografi Erick Thohir - Pengusaha Indonesia dan Pemilik Klub Inter Milan. [online]
BiografiKu.com | Profil dan Biografi Tokoh Terkenal. Available at:
https://www.biografiku.com/biografi-erick-thohir-pengusaha/ [Accessed 23 Nov. 2018].