Entrepreneur

Entrepreneurship
Entrepreneurial Mindset
CMIE6213
Product Innovation & Entrepreneurship
AP Ir Dr Norhana Arsad
 Entrepreneur

OBJECTIVES Entrepreneurship

Entrepreneurial
Mindset
 What is an Entrepreneur?

▰ Originates from the French word entreprendre which

means between- takers or a go–between; one who is
willing to take on or try something.
▰ According to the ‘Kamus Dewan’ (2005), the term
entrepreneur comes from the Malay word, ‘usaha’.
▰ There have been many definitions of entrepreneur.
▰ It appears that there is no standard definition of an
entrepreneur.
4
 Who are Entrepreneurs?

People who:
1. Want to be their own boss
2. Pursue their own ideas
3. Realize financial (or other) rewards

▰Entrepreneurs create new ideas and new businesses. Their ideas often
respond to customer/society needs that are not being satisfied with current
businesses.
5
Personal Characteristics of Successful
Entrepreneurs
• Persistent (not giving up, keep trying)
• Creative (looking at new ways of doing things, developing solutions to
problems)
• Responsible (doing what you are supposed to do, being held
accountable)
• Inquisitive (asking questions and seeking answers, curiosity)
• Motivation and passion
• Relevant skills and expertise
 Common Myths among Entrepreneurs

▰ They born - not made

▰ The are gamblers
▰ They are motivated primary by money
▰ They should be young and energetic
▰ They love the spotlight

7
 Common Myths among Entrepreneurs

▰ They born - not made

▰ The are gamblers
▰ They are motivated primary by money
▰ They should be young and energetic
▰ They love the spotlight

NOT TRUE!
8
WHY DO PEOPLE BECOME
ENTREPRENEURS?

Ability to fulfill personal goals

Desire to be independent
and interets

Potential financial
Family matter
opportunities
 JOBS SEEKER VS JOB CREATER
JOB SEEKER
1. Work for Others
2.FollowInstructions
3.Routine Job
4. Earning isfixed, never VS
negative
5.Doesnot createwealth
6. Can choose from- Public
Sector, PrivateSector
JOB CREATOR
1.Own Boss
2.Make ownplans
3.Creative activity
4.Can be negativesometimes,
generally surplus
5. Creates Wealth, contributesto
GDP
6. Can choosefrom-Industry
ServiceEnterprise
Entrepreneurship as a Process

1. Discovery

▰ Entrepreneurial process can be

2. Concept
defined as the steps taken in order development

to establish a new enterprise. It is a

step-by-step method, one has to 3. Resourcing

follow to set up an enterprise.

4. Actualization

5. Harvesting
Steps in the Entrepreneurial Process
1. Discovery: The stage in which the
entrepreneur generates ideas,
recognizes opportunities, and studies
the market

Idea

Innovation Opportunity
 What is An Idea, Opportunity and Innovation?
An idea is a concept for a product or service that does not exist
or is not currently available in a market niche. It may be a brand-
new concept or an improvement of a current product or service.

In contrast, an opportunity is an idea for a new product or service

with a market that is willing to pay for that product or service so
that it can form the basis of a profitable business.

Innovation is the process of making changes to something that

adds value to customers.
2-3
What is an Opportunity?
An opportunity has four essential qualities

2-4
INNOVATIVE THINKING TO GENERATE
BUSINESS IDEAS

❑Combine two businesses (or more)

into one to create new business
❑Recognise a hot trend and determine
current demand

❑Improve products, their functions, or

offer new benefits
❑Recognise a need in the marketplace
that is not being served

❑Begin with a problem in mind

 Invention VS Innovation
Invention can be defined as the creation of a product or
introduction of a process for the first time.

Innovation on the other hand, occurs if someone improves

on or makes a significant contribution to an existing
products, process or service.
Steps in the Entrepreneurial Process

2. Concept Development:
• Business plan: a detailed
proposal describing the business
idea.
• Business Model Canvas is a
strategic management and lean
startup template for developing
new or documenting
existing business models.
Concept Development
Will a patent or trademark be required?
Steps in the Entrepreneurial Process
3. Resourcing: The stage in which the
entrepreneur identifies and acquires
the financial, human, and capital
resources needed for the venture
startup, etc

Start-up resources
Resourcing
Apply for loans,
grants and
assistance

Identify potential
investors

Hire
employees
Steps in the Entrepreneurial Process
4. Actualization: The stage in which
the entrepreneur operates the
business and utilizes resources to
achieve its goals/objectives.

$$ Grand Opening $$

Day-to-Day Operations
Steps in the Entrepreneurial Process
5. Harvesting: The stage in which the entrepreneur
decides on business’s future growth/ development,
or demise

What is your 5-year or 10-year plan?

Consider adding locations or providing different

products/services

Will you go public?

ENTREPRENEURSHIP AGENCIES
(TRAINING AND FUNDING) IN MALAYSIA

• MaGIC
• SME Corp
• TEKUN
• PUNB
• PROTÉGÉ
• INSKEN
• MARA
• UKM-CESMED
THE
ENTREPRENEURIAL
MINDSET
Defining Mindset

A mindset is defined as a

“mental attitude or inclination”

✓ Your mindset is the sum of your knowledge.

✓ Beliefs and thoughts about the world and yourself in it.
✓ It is your filter for information you get in and put out.
✓ So it determines how you receive and react to information.
 Mindset

Our mindsets can be shaped by:

1. An intentional awareness.
2. Also largely driven by our experiences

A mindset is a habit that requires practice

TWO SET OF MINDSET
Defining Entrepreneurial
• Entrepreneurship: The discovery, evaluation, and exploitation of
opportunities
• Entrepreneur - “undertaker” (pengusaha), the sense of someone
undertaking (mengusahakan) a major project
• When someone is motivated to innovate, create and take risks –
business entrepreneurship.
• When employees are encouraged to brainstorm new ideas or
products - intrapreneurship.
• When company/someone develop, fund and implement solutions to
social, cultural, or environmental issues – social entrepreneurship.
The Entrepreneurial Mindset

▰ An entrepreneur views needs, problems and challenges as opportunities.

▰ An entrepreneur comes up with innovative ways to deal with
challenges/problems.
▰ An entrepreneur realizes that he/she is in the business of creating value.
▰ An entrepreneur thinks/learns ahead and consolidates opportunities before they
become obvious.
▰ An entrepreneur is a visionary and a leader.
WHY DO WE NEED AN
ENTREPRENEURIAL MINDSET

▰ We are all making decisions with limited information

▰ In a time-compressed and resource limited environment
▰ There are no guarantees or safety nets
▰ We take on a certain amount of risk
▰ Competition is changing
▰ The market is changing
▰ Product and service lifecycles are shorter and shorter
Developing an Effective
Entrepreneurial Mindset

▰ Understand what motivates you

▰ Know what you love
▰ Challenge yourself
▰ Reversal thinking
▰ Change your habit (once in a while)
▰ Always believe that you can
▰ Break away from norms
THANK YOU
noa@ukm.edu.my