Business Management: A Malaysian Perspective Oxford University Press Malaysia, 2008

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CHAPTER FIVE

Entrepreneurship & Starting a Small Business

BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012 All Rights Reserved

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LEARNING OUTCOMES
In this chapter, you will learn to:

Explain the definition of entrepreneurship, corporate entrepreneurship and intrapreneurship. Identify the characteristics of entrepreneurs.

Explain the importance of entrepreneurship.

Discuss the advantages and disadvantages of entrepreneurship.

Discuss on how to manage a small business.

Discuss entrepreneurship development in Malaysia.
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ENTREPRENEURSHIP

Entrepreneurship can be categorized into two and

both of these forms require entrepreneurial skills:
Independent entrepreneurship Corporate entrepreneurship

BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012

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CORPORATE ENTREPRENEURSHIP

Corporate entrepreneurship describes

entrepreneurial behaviour inside established medium and large sized organizations.

Related terms include organizational

entrepreneurship, intrapreneurship and corporate venturing.

BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012

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INTRAPRENEURSHIP

A process by which individuals inside an

organization are free to:
Pursue opportunities without having to pay due regard to costs and resources Engaging in new activities Departing from customary practices they are free to pursue opportunities within the organization in a spirit of entrepreneurship.
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012 All Rights Reserved

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DIFFERENCES BETWEEN A BUSINESSMAN AND AN ENTREPRENEUR

BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012

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ATTRIBUTES OF SUCCESSFUL ENTREPRENEURS

BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012

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IMPORTANCE OF ENTREPRENEURSHIP

Entrepreneurship is able to provide great impact on a

countrys economy and society.

The importance of entrepreneurship to the economy

and society was first articulated by Joseph Schumpeter (1934), an Austrian economist. Entrepreneurship provides an impact on the strength and stability of the economy in three ways:
Innovation Job creation Globalization
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012 All Rights Reserved

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ADVANTAGES AND DISADVANTAGES OF ENTREPRENEURSHIP

BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012

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MANAGING A SMALL BUSINESS

For a business owner to succeed, the following

knowledge and skills are necessary: Planning business Financing business Knowing customers (marketing) Managing employees (human resource development) Keeping records (accounting)

BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012

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BUSINESS PLAN

A successful business plan includes the following

areas:
Cover letter
Executive summary Company background Management team Market analysis Marketing strategy Financial plan Capital required Location analysis Manufacturing plan Appendix

BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012

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ENTREPRENEURSHIP DEVELOPMENT IN MALAYSIA

Emphasis towards entrepreneurship development in

Malaysia begins from the New Economic Policy (19711990) till the National Development Policy (19902000) and Vision 2020. The government encourages entrepreneurship development and provides recognition to entrepreneurs who contribute to the development of the country. Ministry of Entrepreneurship Development and Cooperation has been formed to manage and promote Malaysias growth of entrepreneurship.
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012 All Rights Reserved

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ENTREPRENEURSHIP DEVELOPMENT IN MALAYSIA (cont.)

Following agencies formed to assist and guide new

and existing entrepreneurs :
Malaysian Entrepreneurship Development Centre (MEDEC) Small and Medium Enterprises (SME) Development Programme by SME Corp. Malaysiaformerly known as SMIDEC MSC Technopreneur Development Bahagian Latihan Keusahawanan by Kementerian Pembangunan Usahawan dan Koperasi MARA Entrepreneurial Development Bahagian Pembangunan Usahawanan by Kementerian Kerja Raya Pejabat MARA Negeri Pusat Bimbingan Usahawanan
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012 All Rights Reserved

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BUSINESS SUPPORT SYSTEM (BSS) FOR ENTREPRENEURS BY MALAYSIAN AGENCIES

The Malaysian government and private agencies are

supporting the small and medium businesses in several ways in conducting their business:
Technical assistance Financial assistance Marketing assistance Infrastructure assistance Information providers Research & Development (R&D) Training, seminars & workshops
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BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) Oxford Fajar Sdn. Bhd. (008974-T), 2012

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SUCCESSFUL ENTREPRENEURS IN MALAYSIA

Examples of successful entrepreneurs in Malaysia:

Shafiq bin Supenah Tan Sri Anthony Francis Fernandes (Tony Fernandes) Tan Sri Syed Mokhtar Shah bin Syed Nor Al-Bukhary Robert Kuok Ananda Krishnan Teh Hong Piow Rozita Ibrahim Nikki Merz
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