Chapter 5 - What Is Entrepreneurship

Topic 1
What is Entrepreneurship ?
Learning Objectives
At the end of this chapter, students
should be able to:
explain the concept of entrepreneurship
discuss the importance of entrepreneurship
discuss the characteristics of successful
entrepreneurs
discuss the development of entrepreneurship
in Malaysia
What do you understand by
entrepreneurship?
The word entrepreneur is derived

from the French word entreprendre,
which means to take risk.
Entrepreneurship
Adam Smith An entrepreneur is a person who acts as

agent in transforming demand into
(1776) supply.
The entrepreneur acts as an economic

Carl Menger agent who transforms resources into
products and services. The entrepreneur
(1871) transforms and gives added value.
Entrepreneurship
The practice of starting new organizations
particularly, and new businesses generally in
response to identified opportunities.
introduction of innovative, new, or unique
products or services.
activities are substantially different depending
on the type of organization that is being started.
Innovative entrepreneurs ~ the bridge between
entrepreneurship and economic growth.
Entrepreneurship
According to Schumpeter (1934), entrepreneurs
of new products and technologies make existing
products and technologies obsolete. He named
this activity as creative destruction.
Small firms that practice this are called
innovators.
Entrepreneurial culture plays an important role in
the development of the individual, community,
company, and country.
Individual Community
Entrepreneurship
Culture
Company Country
Malaysian Entrepreneurs.
Tan Sri Mustapha Kamal MK Land
Tan Sri Francis Teoh YTL Corp.
Dato Sri Dr Tony Fernandes Air Asia

Trends in Entrepreneurship
Young Mark Zuckerberg

Entrepreneurs Jovian Mendagie
Oprah Winfrey
Women
Rozita Ibrahim
Characteristics Of Successful Entrepreneurs
Use of Influence Information
Strategy Seeking
Persistence High Quality
Initiative Of Work
High Degree of Efficiency

Commitment Systematic
Self Confidence Planning
Problem
Persuasion Solving
Opportunity
Assertiveness
Orientation
Passion for
the
business
Common
Tenacity Characteristics Product/
despite Customer
failure of Successful focus
Entrepreneurs
Execution
intelligence
The Myths of Entrepreneurship
Myth 1 Entrepreneurs are doers, not
thinkers
Myth 2 Entrepreneurs are born, not made
Myth 3 Entrepreneurs are always inventors

Myth 4 Entrepreneurs are academic and
social misfits
Myth 5 Entrepreneurs must fit the Profile
The Myths of Entrepreneurship
Myth 6 All entrepreneurs need is money
Myth 7 All entrepreneurs need is luck
Myth 8 Ignorance is bliss for entrepreneurs
Myth 9 Entrepreneurs seek success but
experience high failure rates
Myth 10 Entrepreneurs are extreme risk
taker (gamblers)
Businessman vs. Entrepreneur
Businessman Entrepreneur
Engages in activities Starts the venture,
for the purpose of profit assumes leadership and
to support for his living expands the venture to fill
and his family personal goals and attain
self-accomplishment
Low risk taker Moderate risk taker
Follow others and Takes calculated risks.
invests only in tested
and proven markets.
Entrepreneurship
Development in Malaysia
Entrepreneurship has existed in Malaysia (Malaya)
since the interaction of Malacca with foreign traders.
However, when the British colonized the Malay
Peninsular, they changed the structure of the society
and practiced the divide and rule system:
Malays (administration & agriculture)
Chinese (mining & business)
Indians (rubber plantations)
As a result of this system, the Chinese society was
far ahead in business compared to the Malays and
Indians.
Entrepreneurship
After independence, the Malaysian Government
realised the importance of entrepreneurship to
individuals, society and the country, and how it
contributes to the nations prosperity.
Since then, the government has been focusing on the
field of entrepreneurship until today.
The New Economic Policy (1971-1990),
National Development Policy (1990-2000)
Vision 2020,
all encourage and support entrepreneurship
development in Malaysia.
Entrepreneurship
The government encourages entrepreneurship
development and gives recognition to
entrepreneurs because they can contribute to
the development of the country.
In 1995, the government incorporated the

Ministry of Entrepreneur Development as a
specific body to manage and promote the
growth of entrepreneurship in Malaysia.
Entrepreneurship
SME Corporation Malaysia (SME Corp.) was set
up in Oct 2009. It is the central point of
reference for info and advisory services for all
SMEs in Malaysia.
SME Corp. development programs focusing on
3 main strategic thrust. They aim to:
- Strengthen the enabling infrastructure
- Build the capacity and capability of domestic
SMEs
- Enhance access to financing by SMEs
Entrepreneurship
Malaysian Technology
Development Corporation PROSPER Runcit
(Life Sciences) Ministry/Agencies: PUNB
Ministry/Agencies: MOSTI
Funding for Early Stage

Commercialization
through Venture Capital
Fund
Business Effort Group Economic

PROSPER Siswazah
Fund (TEKUN)
Ministry/Agencies: PUNB
Ministry/Agencies: MOA

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Topic 1

The word entrepreneur is derived

Adam Smith An entrepreneur is a person who acts as

The entrepreneur acts as an economic

Tan Sri Francis Teoh YTL Corp.

Dato Sri Dr Tony Fernandes Air Asia

Young Mark Zuckerberg

High Degree of Efficiency

Myth 3 Entrepreneurs are always inventors

In 1995, the government incorporated the

Funding for Early Stage

Business Effort Group Economic

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