SPE3002 Entrerpeneurship Introduction w1 and w2[1]

MOHD KHATA BIN JABOR SPE3002 / SPK5002

M - MEMARTABATKAN AGAMA, BANGSA DAN NEGARA

O - OPTIMUMKAN SUMBER

H - HORMAT SEMUA ORANG

D - DOA DAN USAHA ASAS KEJAYAAN

K - KECEMERLANGAN DIRI

H - HADIR MU MEMBAWA KESAN

A - AKHLAK MULIA

T - TERBAIK DALAM SEMUA URUSAN

A - AKU ADALAH HAMBA YANG SENANTISA MEMERLULAN RAHMAT, PETUNJUK, DAN PENGAMPUNAN DARI YANG

ESA

KEHIDUPAN KU


AGENDA1. Introduction To Entrepreneurship 2. The Evolution Of Entrepreneurship3. The Concepts Of Entrepreneurship

3.1 Entrepreneurship 3.2 Who Are Entrepreneurs? 3.3 The Importance Of Entrepreneurship 3.4 The Myth Of Entrepreneurship 3.5 Entrepreneurship Development In Malaysia

4. Entrepreneurial Characteristics

Week 1 and 210 – 23 July 2006


Introduction To Entrepreneurship

Most of what you hear about entrepreneurship, is all wrong.

It is not magic; it is not mysterious; and it has nothing to do with genes. It’s a discipline,

it can be learned!!!

Peter F Drucker, Innovation and Entrerpeneurship


Entrepreneurship

• In French Entreprende – To undertake.

• Entrepreneurship - Willingness to take the risks involved in starting and managing a business.

• (http://www.turnerlearning.com/efts/bball/econglos.htm)

http://www.turnerlearning.com/efts/bball/econglos.htm


Entrepreneurship

• The qualities that are needed to function effectively in a business, profit-making context (e.g. the ability to identify business opportunities, negotiate prices, broker deals)

• Entrepreneurship is often a difficult undertaking, as a majority of new businesses fail.

(http://en.wikibooks.org/wiki/SA_NCS_Visual_Arts:Glossary)


Entrepreneurship

• Entrepreneurship is the practice of starting new organizations, particularly new businesses generally in response to identified opportunities. – activities are substantially different depending on the type of

organization that is being started. – may involve creating many job opportunities.

• Many "high-profile" entrepreneurial ventures seek venture capital or angel funding in order to raise capital to build the business. Many kinds of organizations now exist to support would-be entrepreneurs, including specialized government agencies, business incubators, science parks, and some NGOs.


The Evolution Of Entrepreneurship

The Evolution of and Development of Theory of Entrepreneurship

The Earliest Period – Merchant adventurer e.g. Marco Polo. The capitalist was a passive risk bearer

The Middle Ages – Manager of large projects finance by government such as public buildings

The 17th Century – Merchants, farmers, craftsmen, and other sole proprietors, where they bought at a certain price and sold at an uncertain price, therefore operating at a risk


The Evolution Of Entrepreneurship

The Evolution of and Development of Theory of EntrepreneurshipThe 18th Century – Industrialization and inventions

occurred. Capital users (entrepreneurs), capital provider (venture capitalists)

19th and 20th Century – Entrepreneur as an innovator, to reform or revolutionize the pattern of production by exploiting as invention

21st Century – Heroes of free enterprise, have used innovation and creativity to build multimillion-dollar enterprise, have created new products and services, have assumed the risks with these ventures


The Concepts of Entrepreneurship

Entrepreneurship is a dynamic process of vision, change, and creation. It requires an application of energy and

passion towards the creation and implementation of new ideas and creative solutions. Essential ingredients include

willingness to take calculated risks in terms of time, equity, or career; the ability to formulate an effective

venture; the creative skill to marshall needed resources; the fundamental skill of building a solid business plan; and

finally, the vision to recognize opportunity where others see chaos, contradiction, and confusion.

Kurato and HodgetsEntrerpeneurship – A Contemporay Approach



4 basic aspects according to Histrich and Peter (1998)

1. Entrepreneurship involves the creation process that is creating something of new value to the entrepreneur and market.

2. Entrepreneurship requires devotion of necessary time and effort.



4 basic aspects according to Histrich and Peter (1998)

3. Entrepreneurship involves risks depends on efforts, usually centered around financial, psychological, and social areas.

4. Entrepreneurship involves the rewards of being an entrepreneur. Independence Personal satisfaction Monetary reward – sign and symbol of success.



Kurato and Hodgetts (2004 )

Entrepreneurship is a process of innovation andnew venture creation through 4 major dimensions:

IndividualsOrganizationalEnvironmentProcess

Government

Education

InstitutionAIDED BY


Who are Entrepreneurs?

Scarborough and Zimmerer (1998)

Kuratko and Hodgetts (2004)

Entrepreneur as a person who creates a new business in the face of uncertainty for the purpose of achieving profit and growth by identifying

opportunities and assembling the necessary resources to capitalize on them. Entrepreneurs usually start with nothing more than an idea, often a simple

one, and then assemble the resources necessary to transform that idea into a sustainable business

Entrepreneur as one who undertakes to organize, manage and assume the risks of a business., is also a catalyst for economic change who uses

purposeful searching, careful planning, and sound judgment when carrying out the entrepreneurial process. Uniquely optimistic and committed, the

entrepreneur works creatively to establish new resources or endow old ones with a new capacity, all for the purpose of creating wealth


Who are Entrepreneurs?

Economists Those who bring resources, labor, materials & other assets

Psychologists The behavioral term of achievement. Individuals who drive to seek challenges and accomplishment.


The Importance of Entrepreneurship

Why entrepreneurship is important to:

Individuals

Society

Country.


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”


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)

The Myths of Entrepreneurship


Entrepreneurship Development in Malaysia

• The New Economic Policy (1971-1990)

• The National Development Policy (1990 -2000)

• Vision 2020

• http://www.miti.gov.my


Identifying Entrepreneurial Characteristics

Characteristics Of Successful Entrepreneurs

Entrepreneur Self-Assessment

The Difference Between Businessmen, Managers And Entrepreneurs


Characteristics Of Successful Entrepreneurs

Initiative and Responsibility

High DegreeOf Commitment

Opportunity Orientation

Moderate Risk Taker

Confidence andOptimistic

Independent

Flexibility

High Level Of Energy

Team Building

Ability to Set Vision

Tolerance toFailure

Drive to AchieveCreative and

Innovative

Seeking Feedback

Skilled at Organizing

Internal LocusOf Control


Entrepreneur Self-Assessment

• Purpose – to get insights into the entrepreneurial inclination potential in individuals.

• Instruments proposed by Robinson, Stimpson, Huefner and Hunt (1991).


Entrepreneur Self-assessment• http://bizmove.com/other/quiz.htm - EXAMPLES

1. Are You a Self-Starter? • If someone gets me started, I keep going all right. • I do things my own way. Nobody needs to tell me to get going. • Easy does it. I don't put myself out until I have to. 2. How Do You Feel About Other People? • Most people bug me. • I like people. I can get along with just about anybody. • I have enough friends and I don't need anybody else.3. Can You Lead Others? • I can get people to do things if I drive them. I can get most people to

go along with me without much difficulty. • I usually let someone else get things moving4. Can You Take Responsibility? • I'll take over if I have to, but I'd rather let someone else be responsible.

There's always some eager beaver around waiting to show off. I say, let him.

• I like to take charge of and see things through.


Businessman vs. Entrepreneur

Businessman Entrepreneur

Engages in activities for the purpose of profit to support for his living and his family

Starts the venture, assumes leadership and expands the venture to fill personal goals and attain self-accomplishment

Low risk taker Moderate risk taker

Follow others and invests only in tested and proven markets.

Takes calculated risks.


Conventional Managers vs. Entrepreneur

Conventional Managers Entrepreneur•Very conscious or rules and taboos

Views rules as guidelines only

•Sensitive to future and willing to postpone rewards

Concept of future based on personal goals. Low threshold of frustration.

•Has a powerful need for acceptance

Ambivalent towards control, success and responsibility. Can be manipulative and exploitative of others

•Able to identify problems in any course of action. Makes detailed plans

Impatient with discussions and theories. Is prone to action and seems impulsive.

SPE3002 Entrerpeneurship Introduction w1 and w2[1]

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