ENTREPRENEURSHIP

DEFINISI
Joseph Schumpeter
“a person who destroys the existing economic
order by introducing new products and
services,
by introducing new methods of production,
by creating new forms of organization,
or by exploiting new raw materials”

Richard Cantillon
 ”entrepreneurial is an innovator and individual
developing something unique and new”
DEFINISI
Salim Siagian
“kewirausahaan adalah semangat, prilaku
dan kemampuan memberikan respon positif
kepada peluang untuk mendapatkan
keuntungan bagi diri sendiri dan pelayanan
yang lebih baik kepada
pelanggan/masyarakat, serta menciptakan
dan menyediakan produk yang lebih
bermanfaat dengan menerapkan cara kerja
yang lebih efesien dan efektif, melalui
keberanian mengambil resiko, kreatifitas,
inovasi dan kemampuan manajemen”
DEFINISI

R. Cantillon (1755)
 Entrepreneurs is defined as self-

employed
 Self-employed deals with additional

uncertainty
 Entrepreneurs should balance their

activities to market demand

DEFINISI

J.B. Say (1803)

Entrepreneurs shifts economic
resources from low to high productivity
areas with higher yield

F. Knight (1921)
Entrepreneurs are a special social class
who direct economic activity
DEFINISI
R. Holcombe (1998)
Entrepreneurs promote a more productive
economy due to more efficient and innovative
ways of production, it is the foundation for
economic growth

H. Aldrich and M.Martinez (2001)

Entrepreneurial activity not necessarily
synonoumos with innovation since
entrepreneurial activities also involve imitation.
ENTREPRENEURIAL REVOLUTION

U.S. Census Bureau by Alfred Nucci,

calculatedthe 10-year survival rates of
business establishments. He found that
 81% survive for at least 1 year,
 65% for 2 years,
 40% for 5 years,
 and 25% for 10 years.
ENTREPRENEURIAL REVOLUTION

On November 1, 1999,
Chevron, Goodyear Tire & Rubber
Company, Sears Roebuck, and Union
Carbide were removed from the Dow
Jones Industrial Average (DJIA) and
replaced by Intel, Microsoft, Home
Depot, and SB Communications.
ENTREPRENEURIAL REVOLUTION
Intel and Microsoft
The two major entrepreneurial driving forces in the
information technology revolution that has
fundamentally changed the way in which we live, work,
and play.

SBC (formerly Southwestern Bell Corporation)

It is an excellent example of how breaking up a
monopoly leads to entrepreneurial opportunities.

Home Depot
Exemplifies the big-box stores that have transformed
much of the retail industry.
ENTREPRENEURIAL REVOLUTION
Fred Smith’s – Federal Express (FedEx) in 1971
Today FedEx has the world’s largest all-cargo air
fleet, including McDonnell-Douglass MD-11s and
Airbus A-300s and A-310s.

Southwest Airlines, in 1971

Robert Swanson was 27 – Genentech

Today there are about 1,500 U.S. biotech companies
with combined revenues of more than $50 billion.
ENTREPRENEURIAL REVOLUTION
Steve Jobs and Stephen Wozniak – Apple
Computer (1975)

Robert Metcalfe in 1979,

The inventor of Ethernet, today Ethernet is so widely
used that it is usually built into most PC
motherboards.

Michael Dell in 1984, was CEO longer than

any other executive in the PC hardware industry
TECHNOLOGIES
THE ENTREPRENEURIAL PROCESS

The entrepreneurial process includes all

the functions, activities, and actions
that are part of perceiving
opportunities and creating
organizations to pursue them.
A MODEL OF THE ENTREPRENEURIAL PROCESS
A MODEL OF THE ENTREPRENEURIAL PROCESS

These are the factors:

personal, sociological, organizational,
and environmental, that give birth to a
new enterprise and influence how it
develops from an idea to a viable
enterprise.
TRIGGERING EVENT
There is almost always a triggering event that
gives birth to a new organization. Perhaps the
entrepreneur has no better career prospects.
For example:
 Tim Waterstone founded Waterstone’s bookstores
after he was fired by W.H. Smith.
 Ann Gloag quit her nursing job and used her bus-
driver father’s $40,000 severance pay to set up
Stagecoach bus company with her brother,
exploiting legislation deregulating the United
Kingdom’s bus industry.
TRIGGERING EVENT

For some people, entrepreneurship is a

deliberate career choice.

For example: Sandra Kurtzig was a

software engineer with General Electric
who wanted to start a family and work
at home. She started ASK Computer
Systems Inc., which became a $400
million-a-year business.
ENTREPRENEURS IDEAS?
A study of the Inc. 500 - ‘‘America’s [500]
fastest growing companies’’
 57% of the founders got the idea for their
new venture in the industry they worked in.
 23% got it in a related industry.
 80% of all new high-potential businesses
are founded in industries that are the same
as, or closely related to, the one in which
the entrepreneur has previous experience.
PERSONAL ATTRIBUTES
At the start of the entrepreneurial 1980s, there
was a spate of magazine and newspaper
articles that were entitled
‘‘Do you have the right stuff
to be an entrepreneur?’’ or words to that
effect. The articles
described the most important characteristics of
entrepreneurs and, more often than not,
included a self-evaluation exercise to enable
readers to determine if they had the right stuff.
PERSONAL ATTRIBUTES

It does appear that entrepreneurs have

a higher internal locus of control
than nonentrepreneurs, which means
that they have a stronger desire to be
in control of their own fate. This has
been confirmed by many surveys in
which entrepreneurs said
independence was a very important
reason for starting their businesses.
PERSONAL ATTRIBUTES
 Konsep tentang Locus of control (pusat
kendali) pertama kali dikemukakan oleh Rotter
(1966), seorang ahli teori pembelajaran sosial. 
 Locus of control merupakan salah satu
variabel kepribadian (personility), yang
didefinisikan sebagai keyakinan individu
terhadap mampu tidaknya mengontrol nasib
(destiny) sendiri (Kreitner dan Kinicki, 2005).
 Robbins dan Judge (2007) mendefinisikan
lokus kendali sebagai tingkat dimana individu
yakin bahwa mereka adalah penentu nasib
mereka sendiri.
PERSONAL ATTRIBUTES

The main reasons they gave were

independence:
 Financial sucess

 Self-realization

 Recognition,

 Innovation

 Roles (to continue a family tradition, to

follow the example of an admired person,

to be respected by friends)
THE 10 DS
ENVIRONMENTAL FACTORS

Perhaps as important as personal

attributes are the external influences
on a would-be entrepreneur.
It’s
no accident that some parts of the
world are more entrepreneurial than
others.
 ENVIRONMENTAL FACTORS
Stanford University sociologist Everett Rogers called ‘‘Silicon
Valley fever.’’
It seems as if everyone in the valley catches that bug sooner
or later and wants to start a business.
To facilitate the process, there are
 Venture capitalists who understand how to select and nurture
high-tech entrepreneurs.
 Bankers who specialize in lending to them.
 Lawyers who understand the importance of intellectual
property and how to protect it.
 Landlords who are experienced in renting real estate to
fledgling companies.
 Suppliers who are willing to sell goods on credit to companies
with no credit history.
 And even politicians who are supportive.
OTHER SOCIOLOGICAL FACTORS
Entrepreneurs are influenced by other sociological
factors.
 Family responsibilities play an important role in
the decision to start a company. It is a relatively
easy career decision to start a business when you
are 25 years old, single, and without many
personal assets and dependents.
 It is a much harder decision when you are 45 and
married, with teenage children preparing to go to
college, a hefty mortgage, car payments, and a
secure, well-paying job.
OTHER SOCIOLOGICAL FACTORS
Another factor that determines the age at which
entrepreneurs start businesses is the trade-off between
the experience that comes with age and the op.
 As you grow older you gain experience, but sometimes
when you have been in an industry a long time, you
know so many pitfalls that you are pessimistic about the
chance of succeeding if you decide to go out on your
own.
 Someone who has just enough experience to feel
confident as a manager is more likely to feel optimistic
about an entrepreneurial career.
 Perhaps the ideal combination is a beginner’s mind with
the experience of an industry veteran.
 A beginner’s mind looks at situations from a new
perspective, with a can-do spirit.
OTHER SOCIOLOGICAL FACTORS
 When they actually start a business,
entrepreneurs need a host of contacts, including
customers, suppliers, investors, bankers,
accountants, and lawyers.
 So it is important to understand where to find help
before embarking on a new venture.
 A network of friends and business associates can
be of immeasurable help in building the contacts
an entrepreneur will need. They can also provide
human contact, which is important because
opening a business can be a lonely experience for
anyone who has worked in an organization with
many fellow employees.
OTHER SOCIOLOGICAL FACTORS
Before leaving secure, well-paying, satisfying
jobs, would-be entrepreneurs should make a
careful estimate of how much sales revenue
their new businesses must generate before
they will be able to match the income they
presently earn.

 22.5% of the CEOs of the Inc. 500 got

divorced while growing their businesses.
 59.2% got married.
 and 18.3% of divorced CEOs remarried.