P 201 Entrepreneurship

PREPARED BY: ASMIZA BT. OSMAN COMMERCE DEPARTMENT

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 e-business 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 d)staff e)competitors f)nation

1.2 Discuss the competencies of entrepreneurship: a. Personal initiative b. Seize opportunities c. Endurance d. Information-seeker e. High work quality f. Commitment towards work agreement g. Efficient h. Systematic planning i. Creative problem solving j. Self-confidence k. Assertion l. Persuasion m. Power and authority

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 and disadvantages of ebusiness 1.3.4 Identify online marketing communication : a)Direct Email Marketing

b)Online Catalogue
c)Public Relations

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

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 ENTREPRENEURSHIP THEORY 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 ENTREPRENEURSHIP THEORY

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 ENTREPRENEURSHIP THEORY 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 ENTREPRENEURSHIP THEORY

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 ENTREPRENEURSHIP THEORY

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 Reform-Bangladesh

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 A businessman not necessarily an entrepreneur Always involve with trade business

ENTREPRENEUR An entrepreneur also a businessman Commit with effort create own products

Always make effort to increase profit

Give priority to success and satisfaction, not profit only.

Follow all reform to increase creativity.

Unimpressed with technological development and alterations

Selling existing goods in market

Introduce new product that can penetrate the market

Competition was a challenge which requires rigorous research to survive Always think to increase progress in future.

Give priority to short period profit.

Think to resolve daily problem only

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.

THE IMPORTANCE OF ENTREPRENEURSHIP TO 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.

THE IMPORTANCE OF ENTREPRENEURSHIP TO 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 Perseverance Ambition Leader Survivor status Competitive Interpersonal skills Innovative skills Ability to bounce back

Vision Motivation Self-confidence Self 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 methods

Self Confidence
Believe on skill and capabilities Able to make decision without hesitation or responds to challenges Do not have fear of failure

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 through the Internet

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 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 Relations
Using the news or business press to carry positive stories about your company or your products; cultivating a good relationship with 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 ebusiness 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 realtime format.

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

DISADVANTAGES
1.Security there are still some people who dont think it is save to buy online 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.

5. Elderly people or people with disabilitys who are not able to go to the shops can still be customers of yours