PB 201-Chapter 1-Intro To Entrepreneurship

PB 201
Entrepreneurship
PREPARED BY:
ASMIZA BT. OSMAN
COMMERCE DEPARTMENT
LECTURES BY:
RODZIAH ISMAIL
CHAPTER 1:
INTRODUCTION TO ENTREPRENEURSHIP
Learning Objectives:
At the end of the lesson, students will:
1. Define the concept of entrepreneur and entrepreneurship

2. Differentiate between Businessman and Entrepreneurs
3. Explain the roles and social responsibilities of
entrepreneur
4. Explain the competencies of entrepreneurship
5. List of successful entrepreneurs in Malaysia
6. Define e-business
7. State the importance of e-business to entrepreneur
8. Distinguish the advantages and disadvantages of ebusiness
9. Identify online marketing communication
A Time of Rapid
Change
30 years ago
Apple
was just a food
10 years ago
was a river in South America
was something cowboys yelled
Entrepreneurial
ventures
mtv
1.1 Explain about entrepreneurship
1.1.1 Define the concept of entrepreneur and
entrepreneurship
1.1.2 Differentiate between Businessman and
Entrepreneurs.
1.1.3 Explain the roles and social responsibilities
of
entrepreneur towards
a)Customers
b)Society/community
c)suppliers
1.2 Discuss the competencies of entrepreneurship:

a. Personal initiative- INISIATIF DIRI
b. Seize opportunities AMBIL PELUANG
c. Endurance- DAYA TAHAN
d. Information-seeker-MENCARI MAKLUMAT
e. High work quality- KERJA BERKUALITI
f. Commitment towards work agreement
g. Efficient-KECEKEPAN
h. Systematic planning- PLAN SISTEMATIK
i. Creative problem solving-PENYELESAIAN MASALAH
j. Self-confidence- KEYAKINAN DIRI
k. Assertion-TUNTUTAN
l. Persuasion-PUJUKAN
m. Power and authority - KUASA DAN KEWIBAWAAN
1.3 Understand E-Business

1.3.1 Define e-business
1.3.2 State the importance of e-
business
to entrepreneur
1.3.3 Distinguish the advantage
disadvantages of e-
business
1.3.4 Identify online marketing

communication :
a)Direct Email Marketing
b)Online Catalogue
c)Public Relations
and
THEORIES & CONCEPT OF

ENTREPRENEURSHIP
THEORIES & CONCEPTS OF

ENTREPRENEURSHIP
Session Objectives
At the end of the session, students
should be able to:
understand the various theories and
concepts on entrepreneurship
have a deeper understanding of the
discipline of entrepreneurship
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
Definition of an Entrepreneur :
An entrepreneur is a person who
undertakes to do a job Richard
Cantillon (1755). The term entrepreneur
is a French word first coined by Richard
Cantillon.
In Malaysia the term usahawan is
used for entrepreneur.
THE EVOLUTION OF
Definition of Entrepreneurship:
Entrepreneurship
involves not only the

process that leads to the setting up of a
business entity but also the expansion
and development of an on going
concern.
THE EVOLUTION OF
Adam
Smith (1776) - An entrepreneur

is a person who acts as agent in
transforming demand into supply.
Jean Babtiste Say (1803) - An
entrepreneur is a person who shifts
resources from an area of low
productivity to high productivity.
THE EVOLUTION OF
John
Stuart Mill (1848) - An entrepreneur is a

prime mover in the private enterprise.The
entrepreneur is the fourth factor of production
after land ,labor and capital.
Carl Menger (1871) - The entrepreneur acts
as an economic agent who transforms
resources into products and services.The
entrepreneur transforms and gives added
value.
THE EVOLUTION OF
Joseph
Aloysius Schumpeter (1934) - An

entrepreneur is an innovator. The economy
moves through leaps and bounds and the
prime mover is the entrepreneur through the
process of creative destruction.
Alfred Marshall (1936) - The process of
entrepreneurship or business development is
incremental or evolutionary . It evolves from
sole proprietorship to a public company.
THE EVOLUTION OF
Ibnu
Khaldun (Abdul Rahman Mohamed

Khaldun) - The entrepreneur is seen as a
knowledgeable individual and is instrumental
in the development of a city-state where
enterprise will emerge.
David McClelland - The entrepreneur is a
person with a high need for achievement.
This need for achievement is directly related
to the process of entrepreneurship.
DEFINITION OF ENTREPRENEURSHIP
It is more than creation of business
Entrepreneurship is a process of
innovation and new venture creation
through four major dimensions
individual, organizational, environmental
and process.
The entrepreneurship process is aided by
collaborative networks in government,
education and institutions.
DEFINITION OF ENTREPRENEURS
Functional definition of entrepreneurs

offers the following definition:
Entrepreneurs are individuals who
actively form or lead their own business
and nurture them for growth and
prosperity.
Introduction to Entrepreneurship
Simple
Definition
Process of creating something new

and assuming the risks and rewards.
Robert D.Hisrich, M.P.Peters &
D.A.Shepherd
Introduction to Entrepreneurship
What
is an Entrepreneur?
He or she is an individual who actively form or

lead their own business and nurture them for
growth and prosperity.
UiTM Entrepreneurship Study Group
A person who creates and manages change by the

recognition of opportunities (needs, wants,
opportunities, problems, and challenges) and
develops people and manages resources to take
advantage of the resources to take the
opportunity and creates a venture (profitable
business).
Eston Kimani, MIT
Entrepreneurship: Concepts &

Definitions
Entrepreneurship is the process

of creating something new with
value by devoting the necessary
time and effort, assuming the
accompanying financial, psychic,
and social risks, and receiving the
resulting rewards of monetary
and personal satisfaction of
independence. Robert Hisrich
Entrepreneurship: Concepts &

Definitions
Entrepreneurship is an act of initiative,
drive, commitment, diligence,
perseverance, organized effort, and
achievement outlook, to undertake
some specific functions of performing
productive activities and the capacity to
bear and associated with the
investment.
Economic Policy Paper on Entrepreneurship
Development
through Educational ReformBangladesh
Definition of
Entrepreneur
The
entrepreneur, by definition,
shifts resources from areas of low
productivity and yield to areas of
higher productivity and yield. Of
course, there is a risk the
entrepreneur may not succeed.
(Drucker, 85)
Why become an
Entrepreneur?
Personal
situation
Resources
Entrepreneurial skills
Success stories
Desire for independence
Opportunity to exploit a gap
Frustration
BUSINESSMAN
ENTREPRENEUR
A businessman not necessarily an entrepreneur
An entrepreneur also a businessman
Always involve with trade business
Commit with effort create own products
Always make effort to increase profit
Give priority to success and satisfaction,

not profit only.
Unimpressed with technological development

and alterations
Follow all reform to increase creativity.
Selling existing goods in market
Introduce new product that can

penetrate the market
Give priority to short period profit.
Competition was a challenge which

requires rigorous research to survive
Think to resolve daily problem only
Always think to increase progress in

future.
Face competition as usual challenge
Give priority to long term profit
THE IMPORTANCE OF ENTREPRENEURSHIP TO

MALAYSIAN ECONOMY
1.
Entreprenuership is the symbol of business

steadfastness and achievement. Entrepreneurial
revolution is critical to economic growth.
Entrepreneurship may affect our future in many
ways:
a. Innovative creation of opportunity
Example: Portable phones linked to faxes and
laptop will turns cars, train, and airport
terminal into offices.

MALAYSIAN ECONOMY
d. Entrepreneurship not only affect our

lives through innovation but represent
the working future for many of us due
to lays off by large organization and
shrinking of job opportunities for
graduates.
e. Entrepreneurship is synonymous to
creation of new venture and small
businesses. SMIs have been important
contributors to local economic growth.

MALAYSIAN ECONOMY
f. The entrepreneurial SMIs provide services

that the large corporation has neglected or
lack of economy of scale for the large
corporation to serve.
g. Contribution of SMIs to Malaysian
Economy In Malaysia the SMIs employed 90% of the
total labor force in manufacturing sector and
contributed to about 26% of total value
added in the sector.
ENTREPRENEURSHIP ROLE
AND CONTRIBUTION TO SELF
DEVELOPMENT, COMMUNITY
AND COUNTRY
CONTRIBUTION TO SELF
DEVELOPMENT
Self
control
Fully utilized of self
potential
Generate profit
Role model to society
CONTRIBUTION TO SOCIETY
Serve
the need and demand

of society
Offer career opportunity
Contribute welfare to society
Contribute in term of
education development
CONTRIBUTION TO COUNTRY
Economic
development.
Absorb new technology to
increase competitiveness.
Develop human resource
through companies
personnel training.
Serve local product to
global market.
Characteristics of an
Entrepreneur
Drive
Vision
Perseverance
Motivation
Ambition
Self-confidence
Leader
Self
Survivor
status
Competitive
Interpersonal skills
Innovative skills
Ability to bounce
back
Satisfaction
Extrovert
Results orientated
Committed
Risk taker
Sociable
Personal Initiative
Always do something
without receiving instruction
from anyone
Seize
Opportunities
Effort to seek and grab
opportunities
There are opportunity behind
every problem
Endurance
Have great strength
and courage
Never give up
accomplishing vision
Information
Seeker
Find the right information
from the correct source
High Work
Quality
Make sure products are
always better
Ensure satisfaction and
simultaneously increase
market share
Commitment Towards
Work Agreements
Willingness to sacrifice his
personal interest in order to
make the market satisfaction
Taking full responsibility in
completing a task
Efficient
Always finding ways to
produce products at
lower cost within a
shorter time period
Systematic
Planning
Using a systematic
and logical approach
to achieve business
goals
Creative Problem
Solving
Searching for smart steps
to solve problem as well
as looking and thinking of
innovation new ideas or
creative problem solving
Self Confidence
Believe on skill and
capabilities
Able to make decision
without hesitation or
responds to challenges
Do not have fear of
Assertion
Brave to give ideas or
opinion to people and
to take action even
when face to face from
other
Persuation
Able to persuade
customer to buy
product or service
Power& Autority
Influence staff and industry
to ensure achievement
Base on 5 aspects:
Total control
Power to impose penalty
Give reward
Expertise
Show good example
E-Business
What is E-business ???
I know the
answer !!!!
Electronic Business, is
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
Online Marketing
Com mun ication
Do you understand what
is online marketing
communication ???
Marketing online can be in the form of sending an

email, optimizing search engine result (SEO), or
displaying banner ads on a webpage to reach
potential customers.
Direct
Email
Marketing
Online Marketing typically involves using only the

Internet to promote products and services to
consumers
Online
Catalogue
Public
Public
Relations
Relations
Direct Email
Marketing
The process of direct email marketing (email direct

marketing) including
Online
Catalogue
A catalogue of products stored at a
WEB SITE, with details of each product
on a separate WEB PAGE.
Public
Public Relations
Relations
Using the news or business press to

Using the news or business press to
carry positive stories about your
carry positive stories about your
company or your products;
company or your products;
cultivating a good relationship with
cultivating a good relationship with
local press representatives
local press representatives
The Importance Of
E-Business To Entrepreneur
1allows companies to reach more
consumers in a much broader economic
market
2lower some business costs, Owners and

managers can purchase the cheapest goods
available using e-business websites
3Marketing and advertising is another

business function with significant e-business
benefits. Companies can send messages or
stream content directly to a consumer's
computer or personal computing device.
This allows companies to advertise their
products in a real-time format.
DISADVANTAGES
E-Business
ADVANTAGES
1. Work from home, saves
money of renting office/shop
place.
2. If trading on-line wont
have to employee as many
staff and this will also save
the business money.
3. Able to buy from it 24
hours a day
4.Larger market of potential
customers on-line
5. Elderly people or people
with disabilitys who are not
able to go to the shops can
still be customers of yours
1.Security there are still some people who dont

think it is save to buy on-line therefore as their isnt a
high-street shop will loss their custom.
2.You may not recieved what you believe you have
purchased.
3.Things such as viruses could mean losing the site
or affecting your customers computers while on your
website.

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PB 201

At the end of the lesson, students will:

1. Define the concept of entrepreneur and entrepreneurship

was just a food

was something cowboys yelled

1.1 Explain about entrepreneurship

1.1.1 Define the concept of entrepreneur and

1.2 Discuss the competencies of entrepreneurship:

1.3 Understand E-Business

1.3.4 Identify online marketing

THEORIES & CONCEPT OF

THEORIES & CONCEPTS OF

involves not only the

Smith (1776) - An entrepreneur

Stuart Mill (1848) - An entrepreneur is a

Aloysius Schumpeter (1934) - An

Khaldun (Abdul Rahman Mohamed

Functional definition of entrepreneurs

Process of creating something new

He or she is an individual who actively form or

A person who creates and manages change by the

Entrepreneurship: Concepts &

Entrepreneurship is the process

Entrepreneurship: Concepts &

A businessman not necessarily an entrepreneur

An entrepreneur also a businessman

Always involve with trade business

Commit with effort create own products

Always make effort to increase profit

Give priority to success and satisfaction,

Unimpressed with technological development

Follow all reform to increase creativity.

Selling existing goods in market

Introduce new product that can

Give priority to short period profit.

Competition was a challenge which

Think to resolve daily problem only

Always think to increase progress in

Face competition as usual challenge

Give priority to long term profit

THE IMPORTANCE OF ENTREPRENEURSHIP TO

Entreprenuership is the symbol of business

THE IMPORTANCE OF ENTREPRENEURSHIP TO

d. Entrepreneurship not only affect our

THE IMPORTANCE OF ENTREPRENEURSHIP TO

f. The entrepreneurial SMIs provide services

the need and demand

Marketing online can be in the form of sending an

Online Marketing typically involves using only the

The process of direct email marketing (email direct

Using the news or business press to

2lower some business costs, Owners and

3Marketing and advertising is another

1.Security there are still some people who dont

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