MPU
22012
CHAPTER 1 :
INTRODUCTION TO
ENTREPRENEURSHIP
BY :
EDZI, JKE
PSMZA
At the end of this chapter, students should be
able to :
o Discuss the entrepreneurial concept and theories
o Discuss the competencies of entrepreneurs
o Discuss the importance of entrepreneurship to self, family
and society development
o Discuss ethics, professionalism and social responsibilities
for entrepreneurs
WHO IS AN ENTREPRENEUR?
THE EVOLUTION OF ENTREPRENEURS
o Entrepreneur is derived from the French entreprendre,
meaning “to undertake.”
o The entrepreneur is one who undertakes to organize,
manage, and assume the risks of a business.
o Although no single definition of entrepreneur exists
and no one profile can represent today’s entrepreneur,
research is providing an increasingly sharper focus on
the subject
ENTREPRENEUR
o An entrepreneur is one who creates a new business in
the face of risk and uncertainty for achieving profit and
growth opportunities and assembles the necessary
resources to capitalize on those opportunities.
o Recognize opportunities where others see chaos or
confusion.
o Are aggressive catalysts for change within the marketplace
o Challenge the unknown and continuously create the
future.
HIGH ACHIEVERS ENTREPRENEURS
o Desire for responsibility
o Preference for moderate risk (risk eliminators)
o Confidence in their ability to succeed
o Desire for immediate feedback
o High level of energy
o Future orientation (serial entrepreneurs)
o Skill in organization
o Value of achievement over money
WHAT IS ENTREPRENEURSHIP?
ENTREPRENEURSHIP
It is about having the ability and willingness to
take risks and to combine factors of production
in order to produce goods and services that can
satisfy human wants and create wealth
WHAT ENTREPRENEURSHIP IS NOT?
o It is not just about establishing a business or doing
business
o It is not just about making money
o It is not just about profiting from making contracts
o It is not just about buying and selling
o It is not just about short-changing others to make
money
o It is not just about portfolio carrying businessmen
looking for contracts
ENTREPRENEUR vs SMALL BUSINESSMAN
Characteristics Entrepreneur Small Businessman
Time Unlimited Limited
Nature of job Flexible Rigid in adapting to chang
es
Decision making Makes own decisions Follows decisions made by
others
Effort and commi Continuous Low
tment Moderate Low
Risk taking
Goal Maximizes self potential by Solely for profit maximizati
utilizing available opportun on
ities
TYPES OF ENTREPRENEUR
INTRAPRENEUR • Entrepreneur within a large organization with high
entrepreneurial characteristics
TECHNOPRENEUR • Involves in technological changes in producing goods & services
for his organization
COPRENEURS • Associates with an existing organization that create new
organization
SOCIAL • Recognizes a social problem & uses entrepreneurial principles to
ENTREPRENEURS organize, create and manage a venture to make social changes
CYBERPRENEUR • Runs a business in cyberspace by using the internet
ENTREPRENEURSHIP THEORIES
ECONOMIC PSYCHOLOGICAL
PERSPECTIVE PERSPECTIVE
SOCIOLOGICAL MANAGEMENT
PERSPECTIVE PERSPECTIVE
The success of a business venture
depends on the entrepreneur’s
attitude, skills and knowledge.
Discuss with your friends about the
attitude, skills and knowledge that
are required by an entrepreneur.
14 Seize
Personal initiative opportunities
Power & authority
Persuasion Endurance
Assertion COMPETENCIES OF Information
ENTREPRENEURSHIP seeker
Self confidence High work quality
Commitment
Creative problem Efficient
solving
Systematic
planning
Successful entrepreneurs come from various backgrounds and have
different ways in which they started their ventures, and promoted
and managed their businesses. However, studies have shown that
successful entrepreneurs tend to have certain personal characteristics
in common. In your group, pick ONE of successful entrepreneur in
Malaysia and list down their characteristics which aspiring
entrepreneurs can learn from and work on to improve their chances
in succeeding in their business ventures.
IMPORTANCE OF ENTREPRENEURSHIP
Self Family Society
• Opportunity to • Increases family • Improves the standard
control direction in income of living & lifestyle of
life the society
• Raises living standard
• Opportunity to • Improves social status • Opportunity to
maximize self- contribute to society
potential
• Fulfils society’s needs
• Opportunity to obtain & wants
unlimited financial
rewards • Creates choices
through innovative &
creative production
techniques
ETHICS & PROFESSIONALISM FOR
ENTREPRENEURS
o Business ethics are the moral principles that act as
guidelines for the way a business conducts itself and
its transactions
18
Country
Environment Competitors
Staff Suppliers
Customers SOCIAL Society
RESPONSIBILITIES