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ENTREPRENEURS
HIP 1
OBJECTIVES
By the end of this course, you should be
able to;
1.Identify why entrepreneurship is important
2.Develop a vision to become an
entrepreneur
3.Identify entrepreneurial opportunity and
transform it into a basic business plan
4.Making decision to become a young
entrepreneur for a better future life
Entrepreneur! Why..?
CHAPTER 1
INTRODUCTION
OF
LEARNING OUTCOMES
1. Explain the evolution and concepts of
entrepreneurship
2. Discuss three importance of
entrepreneurship
3. Identify the myths of entrepreneurship
4. Discuss entrepreneurship
development in Malaysia
The Evolution of
Entrepreneurship
The word entrepreneur is derived from
the French word, entreprendre meaning
to undertake Richard Cantillon (1755)
Entrepreneurs are individuals who
actively form or lead businesses and
nurture them for growth and prosperity
Entrepreneurship is a process of creating
and expanding businesses that
collectively form a force for national
development and societal prosperity
Researchers
Details
Adam Smith
an entrepreneur is a person who
(1776)
acts as agents in transforming
demand into supply
Jean Babtiste
Say (1803)
John Stuart
Mill (1848)
Researcher
s
Details
Carl Menger
(1871)
Joseph
Aloysius
Schumpeter
(1934)
an entrepreneur is an innovator
Alfred
Marshall
(1936)
Researchers
Ibnu Khaldun
(Abdul
Rahman
Mohamed
Khaldun)
Details
the entrepreneur is seen as a
knowledgeable individual and is
instrumental in the development of
a city state where enterprise will
emerge
David
McClelland,
Definitions of
4 Basic Aspects
Involves the creation process that is
creating
something
new
value of necessary
Requires the
devotion
time and
effort
Assuming necessary risks
Involve the reward (money &
satisfaction)
Definition of
THE IMPORTANCE OF
ENTREPRENEURSHIP
1. It is a catalyst for economic change
and growth
2. Produce new products and services to
fulfill human needs through its
creativity and innovation process
3. It helps to improve the lives of
millions of people through the new
products and services they bring to
the market
MYTHS OF ENTREPRENEURSHIP
Entrepreneurs seeks success but experience high
failure rates
Entrepreneurs are academic and social misfits
All entrepreneurs need is money
All entrepreneurs need is luck
Entrepreneurs are extreme risk takers (gamblers)
Entrepreneurs must fit the profile
Entrepreneurs are born not made
Entrepreneurs are doers not thinkers
Entrepreneurs are always inventors
DEVELOPMENT OF
ENTREPRENEURSHIP IN MALAYSIA
Existed before Kesultanan Melayu Melaka
Malacca was known around by China,
India, Arab etc
British introduce the divide and rule in
Malaya
New Economic Policy, National
Development Policy, Vision 2020 was
introduced to encourage and support
entrepreneurship development in Malaysia
CHAPTER 2
IDENTIFYING
ENTREPRENEURIAL
CHARACTERISTICS
LEARNING OUTCOMES
1. Identify characteristics of successful
entrepreneurs
2. Evaluate entrepreneurial inclination
potential using the entrepreneur self
assessment test
3. Describe at least three differences
between businessman, managers and
entrepreneurs
Characteristics
Explanations
Seeking feedback Actively seek and use feedback to
improve their venture performance
High level of
energy
Team building
Ability to set
vision
Tolerance for
failure
Drive to achieve
(self starter)
Characteristics
Explanations
Creative and
innovative
Independent
Opportunity
orientation
High degree of
commitment
Initiative and
responsibility
DIFFERENCES BETWEEN..
Small Businessman
Entrepreneur
Engages in business
activities for the
purpose of profit to
support his living and
family
Conventional
Manager
Entrepreneur
Able to identify
Impatient with
problems in any course discussions and
of action
theories.
Make detailed plans
Action!!!
CHAPTER 3
DEVELOPING
ENTREPRENEURIAL
CREATIVITY AND
INNOVATION
LEARNING OUTCOMES
1. Define the concepts of creativity and
innovation
2. Explain the four main phases in the
creative process
3. Explain five creativity technique
4. Describe four basic types of innovation
5. Discuss the barriers to creativity and
innovation
What is Creativity?
Creativity involves the development
of uniques and novel responses to
problems and opportunities
the abilities to produce work that
is novel, high in quality and
appropriate
-Sternberg, Kaufman and
Pretz(2002)
PROCESS OF CREATIVITY
Ideas evolve from the creative
process where imaginative individual
will imagine, inculcate and develop
an idea into a form and then
implement it for benefit
Kuratko and Hodgetts (2004)
suggested that there are 4 main
phases/steps in the creative process;
Knowledge Accumulation
Incubation
Idea
Evaluation And
Implementation
BARRIERS TO CREATIVITY
Personal
Beliefs
Fear Of
Criticism
Over
Management
Stress
Barriers to Creativity
1. Personal beliefs
We belief that we are not creative
2. Fear of criticism
Some are afraid that people will say
that their ideas are crazy, foolish and
impractical
3. Over management
Workers burdened with assignments,
schedules and demands for quick
production have hampered workers from
thinking creatively
4. Stress
Not only a distraction that drains ones
energy that could be used creatively but
it is also bad for the health
Forced
Analogy
Mind
Mapping
DO IT
1. Brainstorming
Is the most common and powerful
techniques used to hatch ideas.
The ideal number of group members
is between 4 to 7
4 rules by Willian (2000) are;
2. Forced Analogy
Forcing can help to develop new
insights as well as new alternatives.
Very useful and fun filled techniques of
generating ideas
Finding the relationship between almost
everything and gain new solutions
Example; giving date line, high
commission,
3. DO IT
D - define problem
O - open minded and apply creative
technique (generate as many
ideas/solutions as possible)
I - identify best solution
T transform (implementation)
4. Mind mapping
This technique allows one to use
pictures and/or word phrases to
organise and develop thoughts in a
non-linear fashion.
It helps people to see a problem and
its solution
Example; Use during brainstorming,
taking note, refreshing memory etc
5. Nominal group
The use of the groups is to generate
ideas and evaluate solutions face to
face in non threatening group.
Members writing down as many
ideas as possible silently
Members will discuss the ideas and
vote privately to rank ideas
CHARACTERISTICS OF CREATIVE
INDIVIDUALS
Humble and proud
Passionate about work and
objectively
Dare to try new things
Open minded and willing to
accepts
High self
control
criticism
Goal directed, deliberate
and
Willing
to take
considerate
in making
calculated
risks
decision
INNOVATION
Creativity is a pre condition to
innovation
Is believed to the key to sustainable
success for many organisation
Kinicki and Williams (2003), finding ways
to deliver new or better goods or
services
Chell (2001), innovation is deemed as
the creation of something new in the
marketplace that alters the supply
demand equation
Types of
innovation
Invention
Duplication
Extension
Synthesis
Types of Innovation
4 basic types of innovation as suggested
by Kuratko and Hodgetts (2004)
1. Invention
The act of creating a new product,
service and process that is totally novel
or untried
Example; Proton Saga, Modenas,
Synthium
2. Extension
The extension or addition to existing
product lines, services and
processes
Example; Bosch, Samsung, Daewoo,
Home
applianc
es
Vehicle
Heavy
machiner
y
3. Duplication
Process of replication of existing
product, service or process.
It does not mean simply copying,
but adding new features or
improving competitiveness of the
product, service or process.
Example; Viva, MyVi
4. Synthesis
Process of combining separate parts
or elements into a new whole
formulation or application by
considering several ideas or items
that already exists
Example; smart phone, hybrid car,
interne
camera
gps
t
Sources Of Innovation
Unexpected
Event
Changes Of
Demographics
New Knowledge
Concept
Process Needs
Sources of Innovation
1. Unexpected events
Entrepreneur frequently notice that
they get ideas from something that
is out of their expectations
Example;
3. Changes of demographics
Changes of demographic
characteristics in age, educational
levels, income and types of
employment have been a main source
of innovation for entrepreneurs
Example; fashion, superbikes, hair
styles, car, house,
4. Process needs
Process needs exist within the
process of business, an industry or a
service. It perfects a process which
already exists, replaces a link that is
weak, redesigns an existing process
and so on.
Example;
Barriers to Innovation
Organisation does not encourage
innovation
Insufficient
resources
Traditional behaviour management
Fear of trying
Fear of change
Improper motivation
Fear of failure
Self image block
Fear of making mistakes
THE IMPORTANCE
To ensure an
organisations
survival
To explore new markets
To exploit natural
resources
STRATEGIES TO
ENCOURAGE CREATIVITY
AND INNOVATION
Recognise Our Own Ability
Change Our Perception
Change The
Organisational Culture
Dare To Fail