KEHIDUPAN KU

M O H D K H A T A MEMARTABATKAN AGAMA, BANGSA DAN NEGARA

OPTIMUMKAN SUMBER
HORMAT SEMUA ORANG DOA DAN USAHA ASAS KEJAYAAN KECEMERLANGAN DIRI HADIR MU MEMBAWA KESAN AKHLAK MULIA TERBAIK DALAM SEMUA URUSAN AKU ADALAH HAMBA YANG SENANTISA MEMERLULAN RAHMAT, PETUNJUK, DAN PENGAMPUNAN DARI YANG ESA

MOHD KHATA BIN JABOR SPE3002 / SPK5002

Week 1 and 2 10 23 July 2006

AGENDA 1. Introduction To Entrepreneurship 2. The Evolution Of Entrepreneurship 3. 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
MOHD KHATA BIN JABOR SPE3002 / SPK5002

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. Its a discipline, it can be learned!!!
Peter F Drucker, Innovation and Entrerpeneurship

MOHD KHATA BIN JABOR SPE3002 / SPK5002

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)

MOHD KHATA BIN JABOR SPE3002 / SPK5002

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)
MOHD KHATA BIN JABOR SPE3002 / SPK5002

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.

MOHD KHATA BIN JABOR SPE3002 / SPK5002

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
MOHD KHATA BIN JABOR SPE3002 / SPK5002

The Evolution Of Entrepreneurship

The Evolution of and Development of Theory of Entrepreneurship
The 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
MOHD KHATA BIN JABOR SPE3002 / SPK5002

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 Hodgets Entrerpeneurship A Contemporay Approach

MOHD KHATA BIN JABOR SPE3002 / SPK5002

The Concepts of Entrepreneurship

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.

MOHD KHATA BIN JABOR SPE3002 / SPK5002

The Concepts of Entrepreneurship

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.
MOHD KHATA BIN JABOR SPE3002 / SPK5002

The Concepts of Entrepreneurship

Kurato and Hodgetts (2004 )

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

Individuals Organizational Environment Process

AIDED BY

Government Education Institution

MOHD KHATA BIN JABOR SPE3002 / SPK5002

Who are Entrepreneurs?

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

Scarborough and Zimmerer (1998)

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

Kuratko and Hodgetts (2004)

MOHD KHATA BIN JABOR SPE3002 / SPK5002

Who are Entrepreneurs?

Economists Those who bring resources, labor, materials & other assets The behavioral term of achievement. Individuals who drive to seek challenges and accomplishment.

Psychologists

MOHD KHATA BIN JABOR SPE3002 / SPK5002

The Importance of Entrepreneurship

Why entrepreneurship is important to: Individuals Society Country.

MOHD KHATA BIN JABOR SPE3002 / SPK5002

The Myths of Entrepreneurship

Myth 1
Myth 2

Entrepreneurs are doers, not thinkers

Entrepreneurs are born, not made

Myth 3
Myth 4

Entrepreneurs are always inventors

Entrepreneurs are academic and social misfits Entrepreneurs must fit the Profile

Myth 5

MOHD KHATA BIN JABOR SPE3002 / SPK5002

The Myths of Entrepreneurship

Myth 6 Myth 7 All entrepreneurs need is money All entrepreneurs need is luck

Myth 8
Myth 9

Ignorance is bliss for entrepreneurs

Entrepreneurs seek success but experience high failure rates Entrepreneurs are extreme risk taker (gamblers)

Myth 10

MOHD KHATA BIN JABOR SPE3002 / SPK5002

Entrepreneurship Development in Malaysia

The New Economic Policy (1971-1990) The National Development Policy (1990 2000) Vision 2020

http://www.miti.gov.my
MOHD KHATA BIN JABOR SPE3002 / SPK5002

Identifying Entrepreneurial Characteristics

Characteristics Of Successful Entrepreneurs Entrepreneur Self-Assessment
The Difference Between Businessmen, Managers And Entrepreneurs

MOHD KHATA BIN JABOR SPE3002 / SPK5002

Characteristics Of Successful Entrepreneurs

Initiative and Responsibility High Degree Of Commitment Seeking Feedback Internal Locus Of Control

Flexibility
High Level Of Energy Team Building Ability to Set Vision Tolerance to Failure

Opportunity Orientation
Moderate Risk Taker

Confidence and Optimistic

Independent Creative and Innovative Skilled at Organizing

Drive to Achieve

MOHD KHATA BIN JABOR SPE3002 / SPK5002

Entrepreneur Self-Assessment
Purpose to get insights into the entrepreneurial inclination potential in individuals. Instruments proposed by Robinson, Stimpson, Huefner and Hunt (1991).

MOHD KHATA BIN JABOR SPE3002 / SPK5002

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 moving 4. 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.
MOHD KHATA BIN JABOR SPE3002 / SPK5002

Businessman vs. Entrepreneur

Businessman Entrepreneur

Engages in activities for the Starts the venture, assumes purpose of profit to support leadership and expands the for his living and his family venture to fill personal goals and attain self-accomplishment

Low risk taker

Follow others and invests only in tested and proven markets.
MOHD KHATA BIN JABOR SPE3002 / SPK5002

Moderate risk taker

Takes calculated risks.

Conventional Managers vs. Entrepreneur

Conventional Managers
Very conscious or rules and taboos Sensitive to future and willing to postpone rewards Has a powerful need for acceptance Able to identify problems in any course of action. Makes detailed plans
MOHD KHATA BIN JABOR SPE3002 / SPK5002

Entrepreneur
Views rules as guidelines only Concept of future based on personal goals. Low threshold of frustration. Ambivalent towards control, success and responsibility. Can be manipulative and exploitative of others Impatient with discussions and theories. Is prone to action and seems impulsive.