This document contains summaries of key topics in entrepreneurship that will be covered in Chapter 2, including defining small and medium enterprises and their roles in economic development, the importance of business ethics and social responsibility, the advantages and disadvantages of information communication technology and e-commerce, and factors for developing an entrepreneurial culture.

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
ISSUES IN
ENTREPRENEURSHIP
2

3. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 3
ISSUES IN ENTREPRENEURSHIP
 AT THE END OF THIS CHAPTER, YOU WILL BE ABLE
TO:
– Define small and medium-sized enterprises.
– Analyze the principles and role of business ethics in
entrepreneurship.
– Explain the social responsibilities of entrepreneurs.
– Understand the application and importance of information
and communication technology in a company.
– Discuss the advantages and disadvantages of e-commerce.
– Explain how the entrepreneurial culture can be developed
and the role of the government in developing the culture.

4. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 4
 Small and Medium Enterprises (SMEs)
are companies involved in local industries
 Responsible for supplying equipment and
components to local and multi-national
companies
SMALL AND MEDIUM-SIZED
ENTERPRISES

5. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 5
 A micro enterprise has full-time
employees of less than 5 persons or
annual sales turnover of less than
RM250,000.
MICRO-SIZED ENTERPRISES

6. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 6
 A small enterprise has full-time employees
of between 5 and 50 persons or annual
sales turnover of between RM250,000 and
less than RM10 million.
SMALL-SIZED ENTERPRISES

7. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 7
 A medium enterprise has full-time
employees of between 51 and 150
persons or annual sales turnover of
between RM10 million and RM25 million.
MEDIUM-SIZED ENTERPRISES

8. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 8
SMALL AND MEDIUM
ENTERPRISES
 Small and Medium Enterprises (SMEs) are
companies involved in local industries.
 They are responsible for supplying equipment
and components to local and multi-national
companies.
 SMEs play a crucial role in the economic
development of a country and provide the
base to further develop entrepreneurship
talent among individuals.

9. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 9
ROLES OF SMALL AND
MEDIUM ENTERPRISES (SMES)
 Source of innovation and creativity
 Test ground for entrepreneurs
 Career opportunities for productive individuals

10. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 10
BUSINESS ETHICS
 A branch of ethics that examines ethical rules
and principles within a commercial context and
the various moral or ethical problems that can
arise in a business setting as well as any
special duties or obligations that apply to
persons engaged in commerce

11. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 11
IMPORTANCE OF BUSINESS
ETHICS
 Social responsibility
 Commitment to the profession
 Good time management
 Personal initiative
 Continuous improvement

12. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 12
PRINCIPLES OF ETHICS
 Identify and accept the rights of customers
 Be trustworthy
 Carry out a genuine profession
 Provide clear information
 Adhere to fair competition

13. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 13
SOCIAL RESPONSIBILITIES OF
ENTREPRENEURS
 Responsibilities towards Customers
 Responsibilities towards Staff
 Responsibilities towards Creditors
 Responsibilities towards Environment
 Responsibilities towards Suppliers
 Responsibilities towards Competitors
 Responsibilities towards Society/Community
 Responsibilities towards Government

14. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 14
IMPORTANCE OF INFORMATION AND
COMMUNICATION TECHNOLOGY IN A
COMPANY
 Attracts a large number of customers
 The company can be visited without time
restrictions
 Gives an image of a well-established company
 Minimizes management costs
 Disseminates business information
 Reduces the size of filing

15. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 15
ADVANTAGES OF E-COMMERCE
 Faster and easier transactions
 Remains open all the time
 Removes barriers of global trading
 Low operational costs and better services
 No need of physical company set-ups

16. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 16
DISADVANTAGES OF E-COMMERCE
 Risk of being cheated
 No guarantee of product quality
 Tendency to have mechanical failures
 Customer loyalty
 Threats to security and privacy

17. All Rights Reserved
OFPS Entrepreneurship 3e
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 17
DEVELOPING
ENTREPRENEURIAL CULTURE
 Having a clear direction
 Maximising self-potential
 Planning strategically
 Managing time effectively
 Being creative and innovative
 Increasing work quality continuously
 Seizing opportunities