INTRODUCTION TO Roles of Entrepreneur in Economic
Generation of Employment
ENTREPRENEURSHIP
Entrepreneurship is a process of
identifying or pursuing business
opportunities or it is a set of critical
thinking skills
Role of Entrepreneurship
In crisis, entrepreneur:
 Recognize opportunities
 An aggressively catalyst for the
change in marketplace
 To generate the economic
growth and job creation
 Challenge the unknown and
continuously create our future
2 Kind of Entrepreneurs
 Business Entrepreneur –
Driven by a profit motivate,
constantly innovating by a
market share
 Social Entrepreneur – Driven
by a mission to fill a gaps left
by the market and public sector
– Bill Drayton
4.
Growth The entrepreneur generate
employment both directly and
1. Forward and Backward Linkages
indirectly. While, entrepreneurship
The entrepreneur initiates changes
help to reduce unemployment
which has a chain reaction.
problem in the country.
Example:
5. Economic Independence
 The establishment of
The entrepreneurship is essential
steel plant generates for the national self-reliance
several oxcillary units Example:
and expanding demands
 Businessman export
for iron ore and coal
goods and services on a
large scale and earn
2. Optimum use of Resources
foreign exchange for the
It is responsible for the
country
entrepreneur to make use of the
resources at the fullest extent.
Example:
 Land, Labor, Money and
Machinery
3. Capital Formation
The entrepreneur mobilizes the idle
of savings. The saving in industry
result in productive utilization in
the national resources. The
entrepreneur is creator of wealth.
 CREATIVITY AND
INNOVATION
Sources of Creativity and Innovation
Definitions
1. Trends
Creativity is the process of generating 2. Unexpected occurrences
new ideas or act or capability to 3. Incongruities – process need out of
conceiving something original and places
unusual. 4. Industry and market change
5. Demographic
Innovation is the process of generating
6. Perceptual changes the ability to
and applying the new ideas or the
gather info
creation of the product that has never
7. Knowledge base concepts
been made before and it recognized as
product of some unique insight. Obstacle in Creativity and
Innovation
Differentiation between Creativity
and Innovation 1. Need a quick result
2. Rigid rules
 Creativity can never be
3. Stress
measured but innovation can be
4. Routine
measured
5. Strong belief
 Creativity does not need
6. Strong ego
money but in innovation money
7. Fear in criticism and failure
is needed
 There is no risk involved in
the creativity, whereas risk is
always attached at the
innovation
 ANALYZING OPPORTUNITIES
AND DEVELOPING STRATEGY
Definitions
Primary Research is the research
conducted directly on a subject or
subjects.
Secondary Research is the research
carried out indirectly through other
existing resources.
Methods
Primary Research
 Personal interviews
 Telephone surveys
 Written surveys
Secondary Research
 Online research
 Review of books and records
 Competitor web sites
Customer Decision Making
Is the process by which customer
identifying their awareness of need and
want, collect the information search,
evaluate alternatives and make their
purchase decision and lastly evaluation
of purchase.
Market Segment
Definition
Is a group of consumers or businesses
who have a similar response in
particular type of product and service.
A company that concentrate to one
market segment will likely to do better
than company that tries to sell to
everyone.
Methods of Market Segmentation
1. Geographic – dividing
according to the location
Example: Starbuck, why?
Because for example if
Starbuck di japan kana buka
inda laku pasal japan only
interest in tea. So Starbuck
decide to buat green tea instead
of coffee.
2. Demographic – dividing
according to age, gender,
income or education
Example: Starbuck made the
affordable price for the medium
range of income and they made
the drink based on age where
the hot drink for the age of 20
above and cold drink for
children age of 5 until 19.
3. Psychographic – dividing to
psychological differences such
as opinion and lifestyle
Example: Starbuck also, can
differentiate based on social
class. Upper, second and lower.
Sometime upper class they
doesn’t care about the drink that
expensive they rather to buy the
cheapest drink.
4. Behavioral – dividing the
market base on observing
purchasing behavior
Example: Starbuck. Some
people they are addicted to
drink at the Starbuck this is
because the customer loyalty.
 RISK MANAGEMENT
Definition
Insurance is a system protecting which
reimburses people/business when their
property or wealth are damaged or
destroyed.
Premium is amount paid for the
insurance.
Deductible is amount of loss or
damage that you agree to cover before
the insurance pays a claim.
Type of Insurance Definition
1. Workers’ Compensation Trademark is a word, phrases, symbol
The insurance obtained by the or design distinguish as a product.
company to cover medical cost
and lost wages for the
employees’ work related Service mark is a word, phrases,
injuries and illness. symbol or design distinguish as a
service.
2. Property Insurance
Provide insurance against most
risk in property such as fire, Copyright is a legal term describing
theft and damage weather, ownership of control to the right to use
basically they ensured furniture, and distribution a certain work of
machine and property. creative expression such as books,
videos, music and others.
3. Product liability
Policy pays for any damages or
injuries resulting from using
insured’s goods and services.
4. Errors and Omission
Is a professional insurance that
protect the company and
individual against claims from
the client.
5. Key Person Life Insurance
Simply life insurance for the
key person in a business.
 OPERATION MANAGEMENT
Definition Importance of Quality to the External cost of non-quality
business
Quality is defined as a measure of how  Poor reputation
close the product and services conform 1. Remain competitive company  Loss of repeat customer
to standard and specification. and business survival  Cost of rejected and returned
2. Retain market share products
Objective of Quality Management:
3. Acquire profitability
1. To ensure that product and 4. Achieve customer satisfaction Internal cost of non-quality
services are high quality and 5. Assure greater customer loyalty  Wasted cost on material and
meet the customer’s 6. Provide high quality product labor
requirement and services.  Rework cost
2. Providing high quality product  Low worker’s morale
will assure customer
satisfaction and they will come
regularly and become loyal
customer
3. Besides, quality drives company
growth and reduces the
operational cost, thus provide
an additional competitive edge