Introduction to Entrepreneurship

1. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1

2. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 2
Chapter
INTRODUCTION TO
ENTREPRENEURSHIP
1

3. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 3
INTRODUCTION TO
ENTRERENEURSHIP
 AT THE END OF THIS CHAPTER, YOU WILL BE
ABLE TO:
– Define the terms ‘entrepreneur’ and ‘entrepreneurship’.
– Explain the differences between an entrepreneur and a small
businessman.
– Discuss the theory of entrepreneurship.
– Discuss the types of entrepreneurs.
– Describe the competencies of successful entrepreneurs.
– List the risks of being an entrepreneur.
– Describe the characteristics of successful entrepreneurs.
– Elaborate on the importance of entrepreneurship.
– Describe the entrepreneurial development in Malaysia.

4. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 4
DEFINITIONS: ENTREPRENEUR
& ENTREPRENEURSHIP
 Entrepreneur
– An individual who ‘undertakes’ the risks of a new
enterprise.
 Entrepreneurship
– The process of seeking business opportunities under
conditions of risk.

5. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 5
 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

6. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 6
Attitude Skills Knowledge
Motivated Decision making Law
Confidence Problem solving Management
Initiative Negotiation Economics
Responsibility Communication Accounting
Risk taking Creativity Values
Diligence Teamwork Business
Mental & Physical
fitness
Management Culture
Information
seeking
Technical Project
management

7. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 7
Characteristic Entrepreneur Small businessman
Time Unlimited Limited
Job nature Flexible Rigid in adapting to
changes
Decision making Makes own decisions Follows decisions made
by others
Effort and commitment Continuous Low
Risk taking Moderate Low
Goal Maximizes self potential
by utilizing available
opportunities
Solely for profit
maximization
DIFFERENCES BETWEEN AN ENTREPRENEUR
AND A SMALL BUSINESSMAN

8. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 8
TYPES OF ENTREPRENEURS
 Intrapreneur
 Technopreneur
 Copreneurs
 Social Entrepreneurs
 Cyberpreneur

9. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 9
COMPETENCIES OF SUCCESSFUL
ENTREPRENEURS
13 entrepreneurial competencies possessed by successful entrepreneurs(McClelland
and McBer & Co ,1980s) :
 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

10. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 10
THE RISKS OF BEING AN
ENTREPRENEUR
 Uncertainty of income
 Risk of losing entire investment
 Long hours and hard work
 High stress level
 Difficulty in obtaining customers
 Complete responsibility
 Difficulty in obtaining loans
 Discouragement

11. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 11
CHARACTERISTICS OF
SUCCESSFUL ENTREPRENEURS
 Able to identify opportunities
 Action-oriented
 Always seeking to improve
 Orientate themselves to customers’ needs
 Value their employees
 Able to face reality
 Able to tolerate tedium
 Able to rebound from disappointments
 Risk takers
 Locus of control
 Independent and in control

12. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 12
IMPORTANCE OF
ENTREPRENEURSHIP
 Self development
 Family development
 Society/community development
 National development
 Spiritual development

13. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 13
ENTREPRENEURIAL
DEVELOPMENT IN MALAYSIA
 Malacca – foreign traders
 British colonial era – introduced ‘divide and rule’
system
 After independence – New Economic Policy
(NEP) ,1971-1990
– National Development Policy (NDP),1990-2000
– Vision 2020, present

14. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 14
SUCCESSFUL MALAYSIAN
ENTREPRENEURS
 Tony Fernandes
 Robert Kuok
 Maznah Hamid
 Etc.