Chapter 1

1
Introduction to
Entrepreneurship
1
Synopsis
This chapter introduces students to

entrepreneurship, its importance to national
economy and discusses the definition of
entrepreneurship, typical entrepreneurial
characteristics and attributes, and types of
entrepreneurship.
Introduction to Entrepreneurship All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2017 1– 2
Objectives

Learning Outcomes
At the end of this chapter, students should be able
to:
❑ Discuss entrepreneurship, entrepreneurial
processes and activities.
❑ Discuss the importance of entrepreneurial
activities.
❑ Discuss, adopt and adapt entrepreneurial
characteristics and attributes in their life.
❑ Explain the types of entrepreneurship.

List of Topics
❑ Introduction to Entrepreneurship
❑ Definitions of Entrepreneurship and
Entrepreneur
❑ Entrepreneurial Process
❑ Characteristics and Attributes of Entrepreneurs
❑ Types of Entrepreneurship

Introduction
❑ The study of entrepreneurship has emerged to

be very important in countries that practise free
market economy.
❑ In most of these countries, entrepreneurial
development is an important agenda in nation
building.
❑ There exists a need to understand
entrepreneurship and its salient issues.

Introduction to
Entrepreneurship
❑ In a free market economy, entrepreneurs are

pemain itama atau pembekal yang menghasilkan, mengangkut atau menjual produk dan perkhidmatan
key players or providers that produce, transport

kepada pengguna
or sell products and services to consumers.
mereka mencari peluang perniagaan dengan mengenal pasti
❑ They seek business opportunities by identifying
apa yang diperlukan, dikehendaki atau dikehendaki oleh pengguna
what is needed, wanted or desired by

consumers.
usahawan mencipta produk baru, mengambil risiko
❑ Entrepreneurs create new products, take risks

dalam melabur wang dan membuat produk tersedia kepada pelanggan
in investing money and make the products

available to customers.
Introduction to
Entrepreneurship (cont.)
pengguna boleh memilih yang terbaik
❑ Consequently, consumers get to choose the best

produk atau perkhidmatan yang paling sesuai dengan keperluan mereka dan bajet
products or services best suited to their needs and

budget.
produk baharu dan dipertingkatkan berterusan dibangunkan
❑ New and improved products are continuously

untuk menggantikan produk lama, dan ini
developed to replace older products, and these

produk telah meningkatkan standard dan kualiti
products have enhanced the standard and quality

dari kehidupan masyarakat.
of life of the society. aktiviti keusahawan merupakan tunjang kepada kemajuan
❑ Thus, entrepreneurial activities are pillars of a

ekonomi , pertumbuhan dan kemakmuran negara
nation’s economic progress, growth and prosperity.

Introduction to
masyarakat yang mempunyai keusahawanan yang hebat

❑ A society that has a great entrepreneurial
budaya akan menjadi lebih produktif, berdaya saing dan makmur
culture will be more productive, competitive and

prosperous.
secara fitrahnya, usahawan akan sentiasa mencuba
❑ By nature, entrepreneurs will always try to
meningkatkan kualiti produk, mengurangkan kos pengeluaran
improve product quality, reduce cost of
cari cara yang lebih baik untuk melayani mereka
production, find better ways to serve their
pelanggan dan dengan itu memenuhi keperluan pelanggan dengan lebih berkesan
customers and thus serve customers’ needs
more effectively.

Introduction to
keupayaan mereka utk menggerakkan dan memperuntukkn sumber
❑ Their ability to mobilize and allocate resources

ke tempat yg pling diperlukan berdasarkan perniagaan
to where it is most needed based on business
peluang atau permintaan pasaean, buat
opportunities or market demand, make

usahawan sumber yang pling cekap
entrepreneurs the most efficient resource

dalam ekonomi pasaran bebas
allocators in a free market economy.

ramai usahawan berjaya telah menjadi sangat kaya apabila perniagaan kecil mereka berkembang menjadi syarikt besar
❑ Many successful entrepreneurs have become

very rich when their small businesses grow into
big corporations.

Introduction to
pilihan kerjaya anda
gaji pekerja usahawan

laluan atau strategi
kerjaya bukan
traditional utk
kerajaan disesuaikan dgn
perniagaan organisasi perniagaan kecil persekitaran
pernigaan baharu,
seprti usahawan
digital
laluan kerjaya boleh dipeccahkan kpd bnyk bidang
ketua jabatab syarikat besar
pedagang mahir

Definitions of Entrepreneurship
and Entrepreneur
keusahawan boleh ditakrifkan sebgai aktivti
❑ Entrepreneurship can be defined as the activity

menubuhkan perniagaan atau perniagaan dan
of setting up a business or businesses, and
mengambil risiko kewangan dengan harapan untuk membuat keuntungan
taking on financial risks in the hope of making

profit.
kajian usahawan merangkumi kajian tentang
❑ The study of entrepreneurship includes the

tingkah laki keusahawan dinamik penubuhan perniagaan
study of entrepreneurial behaviour, as well as pengembangan dan pembangunan
the dynamics of business set-up, expansion

and development.

and Entrepreneur (cont.)
❑ The term ‘entrepreneur’ was first used by a

Frenchman named Richard Cantillon (1775) to
mean ‘a person who undertakes to do a job’.
❑ Adam Smith (1776) defines an entrepreneur as
a person who acts as an agent in transforming
demand into supply.
❑ Jean-Baptiste Say (1803) considers an
entrepreneur as a person who shifts resources
from an area of low productivity to high
productivity.
menyatakan bahawa seorang usahawan
❑ John Stuart Mill (1848) states that an entrepreneur

merupakan penggerak utama dalam ekonomi perusahaan swasta aktiviti
is a prime mover in private enterprise economic
dimana usahwan adalah yng keempat faktor pengeluaran
activities, where an entrepreneur is the fourth selepas tanah, buruh dan modal
factor of production, after land, labour and capital.

mengatakan bahawa usahawan bertindak
❑ Carl Menger (1871) says that the entrepreneur
sebagai agen ekonomi yng mengubah
acts as an economic agent who transforms

sumber kepada perkhidmatan dan memberi nilai tambah
resources into products and services and gives

added value.

❑ Ibnu Khaldun (Abdul Rahman Mohamed Khaldun)

describes an entrepreneur as a knowledgeable and
skilled individual craftsman who is instrumental in
the development of a city state where enterprises
will emerge.
❑ In the early 1900s, Joseph Schumpeter termed
‘entrepreneur’ as an innovator who introduced new
innovation to replace old products or old ways of
doing things. He described the process as creative
destruction’ to signify creativity of new products or
services to replace or destruct old ones.
pendek kata, usahawan adalah penggerak utama kemajuan ekonomi
❑ In short, entrepreneurs are the prime movers of

economic progress.
mereka boleh menjadi inovator, mereka menggerakkan sumber utk menyediakan
❑ They can be innovators, they mobilize resources

produk dan perkhidmatan yang diperlukan dan perkhidmatan yg diperlukan dan dalam
to provide products and services needed, and in

proses, mereka membina perniagaan yang menyediakan pekerjaan
the process, they build businesses that provide
jobs.
dengan itu meningkatkan taraf hidup dan kualiti dari kehidupan rakyat.
❑ Thereby improve the standard of living and quality

mereka adalah pemangkin yng menyumbangkan kepada kemajuan ekonomi negara
of life of the people. They are the catalysts that
contribute to the nation’s economic progress.
Entrepreneurial Process
The Timmons Model of Entrepreneurial Process

best describes the four major necessary
components in venture creation:
❑ Founder pengasas
❑ Opportunity peluang
❑ Team
pasukan
❑ Resources sumber

(cont.)
dipimpin oleh seorang usahawan yang mampu merebut dan bertindak atas sesuatu peluang
❑ An entrepreneurial process is led by an
entrepreneur who is able to seize and act on an
opportunity.
bersama pasukannya, usahawan akan
❑ Together with his team, the entrepreneur will

membungkus tawaran berubah kepada pelanggan menggunakan sumber yang ada.
package a viable offering to customers using dia boleh menggunakan wangnya sendiri atau mencari orang lain untuk
available resources. He may use his own money or melabur dengannya
canvass others to invest with him. He may need to

dia mungkin perlu meyakinkan orang lain yang mempunyai kemahiran yang diperlukan untuk menjadi sebahagian daripada
convince others with required skills to be part of his
pasukannya untuk melaksanakan projek dan menghasilkan produk
team to execute the project and produce products

dan perkhidmatan untuk pelanggan
and services for customers.

(cont.)
projek perniagaan untuk menawarkan produk atau perkhidmatan kepada pelanggan

Characteristics and Attributes
of Entrepreneurs
❑ Successful entrepreneurs always have a strong
reason or mission for becoming an entrepreneur.
❑ For example, he likes promoting certain business
values, solving specific problems, addressing some
needs or exerting influence within an industry.
❑ Take Steve Jobs of Apple—he ‘disrupted’ and
changed industries for which he created the personal
computer to make computing personal, rather than
limiting it only for large organizations.

of Entrepreneurs (cont.)
❑ His efforts continued with Apple iTunes—
revolutionizing the way music and songs were sold
and bought (Azman, 2014). This strong sense of
mission is what shapes an entrepreneur’s character.
❑ In 1985, McClelland with McBer & Co, developed a
measuring instrument to measure personal
entrepreneurial competencies (PEC) or inclinations
among successful entrepreneurs in Malawi, India
and Ecuador.
❑ Figure 1.3 is a sample of such an instrument.

The common characteristics of entrepreneurs:
❑ Creative, innovative, resourceful and possess high level
of initiative.
❑ Willingness to work hard to achieve aspired objectives
with a high degree of commitment, determination,
perseverance, tenacity and discipline.
❑ Ability to take calculated risk, exhibit tolerance for
ambiguity and ability to accept failure.
❑ Possess ability to think independently, exhibit high level
of self-confidence, optimistic and believe in controlling
one’s own destiny.
Orientasi peluang ke arah matlamat masa depan, aspirasi dan penglihatan.
❑ Opportunity orientation towards future goals, aspiration

and vision.
Penganjur yang mahir, kebolehan mengurus dan menyelesaikan masalah
❑ Skilful organizer, ability to manage and solve problems.
Keupayaan komunikatif dan persuasif untuk mempengaruhi yang lain
❑ Communicative and persuasive ability to influence
others.
Although these are common among entrepreneurs, it must

be said that different types of entrepreneurship may require
different entrepreneurial characteristics or different
combinations of entrepreneurial characteristics.
Types of Entrepreneurship
Broad categorization
of the types of
entrepreneurship
can be seen in
Figure 1.4 where the
entrepreneurial
activities are carried
out in different forms
of organizations.

Summary
❑ Entrepreneurships entail seeking, identifying, evaluating

entrepreneurial opportunities, working out a business plan
to mobilize resources and teams, and executing the
business plan with commitment, determination and
perseverance to achieve entrepreneurial objectives.
❑ Entrepreneurial activity is an important element in a
nation’s economic progress. Through these activities,
entrepreneurs provide products, services and
employment opportunities and help to raise the standard
of living of the people of a country.


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1

This chapter introduces students to

Introduction to Entrepreneurship All Rights Reserved

Introduction to Entrepreneurship All Rights Reserved

Introduction to Entrepreneurship All Rights Reserved

Introduction to Entrepreneurship All Rights Reserved

❑ The study of entrepreneurship has emerged to

Introduction to Entrepreneurship All Rights Reserved

❑ In a free market economy, entrepreneurs are

key players or providers that produce, transport

what is needed, wanted or desired by

❑ Entrepreneurs create new products, take risks

in investing money and make the products

❑ Consequently, consumers get to choose the best

products or services best suited to their needs and

❑ New and improved products are continuously

developed to replace older products, and these

products have enhanced the standard and quality

of life of the society. aktiviti keusahawan merupakan tunjang kepada kemajuan

❑ Thus, entrepreneurial activities are pillars of a

nation’s economic progress, growth and prosperity.

Introduction to Entrepreneurship All Rights Reserved

masyarakat yang mempunyai keusahawanan yang hebat

culture will be more productive, competitive and

Introduction to Entrepreneurship All Rights Reserved

❑ Their ability to mobilize and allocate resources

opportunities or market demand, make

entrepreneurs the most efficient resource

allocators in a free market economy.

❑ Many successful entrepreneurs have become

Introduction to Entrepreneurship All Rights Reserved

gaji pekerja usahawan

laluan kerjaya boleh dipeccahkan kpd bnyk bidang

ketua jabatab syarikat besar

Introduction to Entrepreneurship All Rights Reserved

keusahawan boleh ditakrifkan sebgai aktivti

❑ Entrepreneurship can be defined as the activity

taking on financial risks in the hope of making

❑ The study of entrepreneurship includes the

study of entrepreneurial behaviour, as well as pengembangan dan pembangunan

the dynamics of business set-up, expansion

Introduction to Entrepreneurship All Rights Reserved

❑ The term ‘entrepreneur’ was first used by a

❑ John Stuart Mill (1848) states that an entrepreneur

factor of production, after land, labour and capital.

acts as an economic agent who transforms

resources into products and services and gives

Introduction to Entrepreneurship All Rights Reserved

❑ Ibnu Khaldun (Abdul Rahman Mohamed Khaldun)

pendek kata, usahawan adalah penggerak utama kemajuan ekonomi

❑ In short, entrepreneurs are the prime movers of

❑ They can be innovators, they mobilize resources

to provide products and services needed, and in

❑ Thereby improve the standard of living and quality

The Timmons Model of Entrepreneurial Process

Introduction to Entrepreneurship All Rights Reserved

❑ Together with his team, the entrepreneur will

available resources. He may use his own money or melabur dengannya

canvass others to invest with him. He may need to

team to execute the project and produce products

and services for customers.

projek perniagaan untuk menawarkan produk atau perkhidmatan kepada pelanggan

Introduction to Entrepreneurship All Rights Reserved

Introduction to Entrepreneurship All Rights Reserved