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 CHAPTER FIVE

Entrepreneurship &
Starting a Small Business

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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:
i)Independent entrepreneurship
-process where individu/group act independently
within existing organization to create new
organization
ii)Corporate entrepreneurship
-individu/group within existing organization create
new organization/innovation within organization
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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.

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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.

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 DIFFERENCES BETWEEN A
BUSINESSMAN AND AN
ENTREPRENEUR

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 ATTRIBUTES OF SUCCESSFUL
ENTREPRENEURS

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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
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 ADVANTAGES AND
DISADVANTAGES OF
ENTREPRENEURSHIP

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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)

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 BUSINESS PLAN

A successful business plan includes the following

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

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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 Co-
operation has been formed to manage and promote
Malaysias growth of entrepreneurship.
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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

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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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 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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