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1
Chapter
INTRODUCTION TO
ENTREPRENEURSHIP
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INTRODUCTION TO
ENTRERENEURSHIP
AT THE END OF THIS CHAPTER, YOU WILL BE
ABLE TO:
– Define the terms ‘entrepreneur’ and ‘entrepreneurship’.
– Explain the differences between an entrepreneur and a small
businessman.
– Discuss the theory of entrepreneurship.
– Discuss the types of entrepreneurs.
– Describe the competencies of successful entrepreneurs.
– List the risks of being an entrepreneur.
– Describe the characteristics of successful entrepreneurs.
– Elaborate on the importance of entrepreneurship.
– Describe the entrepreneurial development in Malaysia.
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DEFINITIONS: ENTREPRENEUR
& ENTREPRENEURSHIP
Entrepreneur
– An individual who ‘undertakes’ the risks of a new
enterprise.
Entrepreneurship
– The process of seeking business opportunities under
conditions of risk.
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ENTREPRENEURSHIP
The process of seeking business opportunities
under conditions of risk.
Also refers to the process of creating something
The entrepreneur is an innovator who uses the
process to challenge existing norms via
combinations of new resources and methods in
commerce.
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BEING AN ENTREPRENEUR
Attitude Skills Knowledge
Motivated Decision making Law
Confidence Problem solving Management
Initiative Negotiation Economics
Responsibility Communication Accounting
Risk taking Creativity Values
Diligence Teamwork Business
Mental & Physical Management Culture
fitness
Information seeking Technical Project management
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DIFFERENCES BETWEEN AN ENTREPRENEUR
AND A SMALL BUSINESSMAN
Characteristic Entrepreneur Small businessman
Time Unlimited Limited
Job nature Flexible Rigid in adapting to
changes
Decision making Makes own decisions Follows decisions made
by others
Effort and commitment Continuous Low
Risk taking Moderate Low
Goal Maximizes self potential Solely for profit
by utilizing available maximization
opportunities
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TYPES OF ENTREPRENEURS
Intrapreneur
Technopreneur
Copreneurs
Social Entrepreneurs
Cyberpreneur
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TYPES OF ENTREPRENEURS
Intrapreneur
is the act of behaving like an entrepreneur while working
within a large organization.
Technopreneur
is an entrepreneur who is technology savvy, creative,
innovative, dynamic, dares to be different and take the
unexplored path, and very passionate about their work.
Copreneurs
Husbands and wives who operate together in two
domains: family and business.
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TYPES OF ENTREPRENEURS
Social Entrepreneurs
individuals with innovative solutions to society’s most
pressing social problems. They are ambitious and
persistent, tackling major social issues and offering new
ideas for wide-scale change
Cyberpreneur
an entrepreneur who has online based business on the
internet that targets international consumers.
is someone starting or running a business in
cyberspace and the internet.
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ENTREPRENEURIAL COMPETENCIES
(McClelland and McBer & Co ,1980s)
Personal initiative Seize opportunities
Endurance Information seeker
High work quality Commitment towards work agreement
Efficient Systematic planning
Creative problem solving Self confidence
Assertion Persuasion
Power and authority Kindness
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THE RISKS OF BEING AN
ENTREPRENEUR
Uncertainty of income
Risk of losing entire investment
Long hours and hard work
High stress level
Difficulty in obtaining customers
Complete responsibility
Difficulty in obtaining loans
Discouragement
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CHARACTERISTICS OF
SUCCESSFUL ENTREPRENEURS
Able to identify opportunities
Action-oriented
Always seeking to improve
Orientate themselves to customers’ needs
Value their employees
Able to face reality
Able to tolerate tedium
Able to rebound from disappointments
Risk takers
Locus of control
Independent and in control
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CHARACTERISTICS OF
UNSUCCESSFUL ENTREPRENEURS
Unsuccessful
– Poor Managers
– Low work ethic
– Inefficient
– Failure to plan and prepare
– Poor money managers
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IMPORTANCE OF
ENTREPRENEURSHIP
Self development
Family development
Society/community development
National development
Spiritual development
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SUCCESSFUL MALAYSIAN
ENTREPRENEURS
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Tutorial
1. Describe entrepreneur.
2. Discuss FIVE (5) qualities of successful
entrepreneur.
3. Discuss the traits of become successful
entrepreneur.
4. Discuss why entrepreneur fails in business.
5. Choose ONE (1) the successful entrepreneur.
Describe his/her characteristic as an
entrepreneur.
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