OFPS Entrepreneurship 3e

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Chapter

INTRODUCTION TO
ENTREPRENEURSHIP
OFPS Entrepreneurship 3e
Oxford Fajar Sdn. Bhd. (008974-T), 2013

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INTRODUCTION TO
ENTRERENEURSHIP

AT THE END OF THIS CHAPTER, YOU WILL BE

ABLE TO:
Dene the terms entrepreneur and entrepreneurship.
Explain the differences between an entrepreneur and a small
businessman.
Discuss the theory of entrepreneurship.
Discuss the types of entrepreneurs.
Describe the competencies of successful entrepreneurs.
List the risks of being an entrepreneur.
Describe the characteristics of successful entrepreneurs.
Elaborate on the importance of entrepreneurship.
Describe the entrepreneurial development in Malaysia.

OFPS Entrepreneurship 3e
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DEFINITIONS: ENTREPRENEUR
& ENTREPRENEURSHIP

Entrepreneur
An individual who undertakes the risks of a new
enterprise.

Entrepreneurship
The process of seeking business opportunities under
conditions of risk.

OFPS Entrepreneurship 3e
Oxford Fajar Sdn. Bhd. (008974-T), 2013

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ENTREPRENEURSHIP

The process of seeking business opportunities

under conditions of risk.
Also refers to the process of creating something
The entrepreneur is an innovator who uses the
process to challenge existing norms via
combinations of new resources and methods in
commerce.

OFPS Entrepreneurship 3e
Oxford Fajar Sdn. Bhd. (008974-T), 2013

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Attitude

Skills

Knowledge

Motivated

Decision making

Law

Confidence

Problem solving

Management

Initiative

Negotiation

Economics

Responsibility

Communication

Accounting

Risk taking

Creativity

Values

Diligence

Teamwork

Business

Mental & Physical Management

fitness

Culture

Information
seeking

Project
management

OFPS Entrepreneurship 3e
Oxford Fajar Sdn. Bhd. (008974-T), 2013

Technical

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DIFFERENCES BETWEEN AN ENTREPRENEUR

AND A SMALL BUSINESSMAN
Characteristic

Entrepreneur

Small businessman

Time

Unlimited

Limited

Job nature

Flexible

Rigid in adapting to
changes

Decision making

Makes own decisions

Follows decisions made

by others

Effort and commitment

Continuous

Low

Risk taking

Moderate

Low

Goal

Maximizes self potential

by utilizing available
opportunities

Solely for profit

maximization

OFPS Entrepreneurship 3e
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TYPES OF ENTREPRENEURS

Intrapreneur
Technopreneur
Copreneurs
Social Entrepreneurs
Cyberpreneur

OFPS Entrepreneurship 3e
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COMPETENCIES OF SUCCESSFUL
ENTREPRENEURS
13 entrepreneurial competencies possessed by successful entrepreneurs(McClelland
and McBer & Co ,1980s) :
Personal initiative
Seize opportunities
Endurance
Information seeker
High work quality
Commitment towards work agreement
Efficient
Systematic planning
Creative problem solving
Self confidence
Assertion
Persuasion
Power and authority
OFPS Entrepreneurship 3e
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THE RISKS OF BEING AN

ENTREPRENEUR

Uncertainty of income
Risk of losing entire investment
Long hours and hard work
High stress level
Difficulty in obtaining customers
Complete responsibility
Difficulty in obtaining loans
Discouragement

OFPS Entrepreneurship 3e
Oxford Fajar Sdn. Bhd. (008974-T), 2013

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CHARACTERISTICS OF
SUCCESSFUL ENTREPRENEURS

Able to identify opportunities

Action-oriented
Always seeking to improve
Orientate themselves to customers needs
Value their employees
Able to face reality
Able to tolerate tedium (routineness, boredom)
Able to rebound from disappointments
Risk takers
Locus of control
Independent and in control

OFPS Entrepreneurship 3e
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IMPORTANCE OF
ENTREPRENEURSHIP

Self development
Family development
Society/community development
National development
Spiritual development

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ENTREPRENEURIAL
DEVELOPMENT IN MALAYSIA

Malacca foreign traders

British colonial era introduced divide and rule
system
After independence New Economic Policy
(NEP) ,1971-1990
National Development Policy (NDP),1990-2000
Vision 2020, present

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SUCCESSFUL MALAYSIAN
ENTREPRENEURS

Tony Fernandes
Robert Kuok
Maznah Hamid

Etc.

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