Chapter 1

1
Chapter
INTRODUCTION TO
ENTREPRENEURSHIP
OFPS Entrepreneurship 3e All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1
TEST YOUR MIND!!

BUSINESSMAN VS
ENTREPRENEUR

EXAMPLE

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.
– Also refers to the process of creating something using new
methods.

CHARACTERISTICS OF
ENTREPRENEUR (A.S.K)
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 Culture
fitness
Information seeking Technical Project management

ENTREPRENEURSHIP
 According to Yep Putih (1989), entrepreneurship is the

ability, capability, and tendency to perform the following
activities:
1. Identify business opportunity .
2. Manage a business effort which brings profit to the entrepreneur
and the public.
3. Obtain successful and richness by fulfilling the society’s needs
and taking calculated risks.
4. Manage and utilize the factors of production to bring economical
development and enhance social welfare.
5. Work hard and be prepared to make new changes that can
increase production quantity and quality from time to time.

ENTREPRENEUR AND BUSINESSMAN
“All entrepreneur are businessman but NOT all

businessman are entrepreneurs”

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 Solely for profit
by utilizing available maximization
opportunities

TYPES OF ENTREPRENEURS
Intrapreneur
An intrapreneur is an
entrepreneur within a large
organization with high
entrepreneurial characteristics
who strongly believes in his
talent and ability and has
strong desire to create
something using his own
initiative and creativity.

Techno-preneur
 Technopreneurs are
entrepreneurs who are into the
core businesses involving
technology-based industries.
 They make use of technology

to come out with new or
innovative products through a
process of commercialization.

Copreneurs
 An individual or a group of
individuals in association with
an existing organization that
creates a new organization or
instigate a renewal or
innovation within
organization.
 The organization teaches

managers to be
entrepreneurs.
Social Entrepreneurs
A social entrepreneur is someone who recognizes a social
problem and uses entrepreneurial principles to organize,
create and manage venture to make social change.

Cyberpreneur
An entrepreneurs who makes money
by selling products through the
internet and who has an online-
based business on the internet
targets international consumers.
Do not need office or extensive support
staff all over the world. They just
need a great idea and good
connection to the internet.

COMPETENCIES OF SUCCESSFUL
ENTREPRENEURS
13 entrepreneurial competencies possessed by successful
entrepreneurs (McClelland and McBer & Co ,1980s) :

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

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
IMPORTANCE OF
ENTREPRENEURSHIP
 Self development
 Oppurtunity to control direction in life
 Oppurtunity to maximize self potential
 Oppurtunity to obtain unlimited financial rewards
 Family development
 Increases family income
 Raises living standard
 Improves social status

IMPORTANCE OF
ENTREPRENEURSHIP
 Society/community development
 Improves the standard of living and lifestyle of the
society
 Opportunity to contribute to society
 Fulfils society’s need and wants
 Creates choices through innovative and creative
production techniques

IMPORTANCE OF
ENTREPRENEURSHIP
 National development
 Produces new products of high quality
 Creates large-scale job opportunities
 Generates income for economy
 Backbone of heavy industries
 Spiritual development
 Opportunity to put religious/spiritual faith into practice
 Opportunity to continuously perform religious
obligation

SUCCESFUL ENTREPRENEURS
IN MALAYSIA

E-COMMERCE
E-commerce refers to commercial transactions

conducted online. This means that whenever
you buy and sell something using the Internet,
you’re involved in e-commerce.

CATEGORIES OF E-COMMERCE
Business to Consumer (B2C)

 Retailers with online stores such as Walmart, Macy’s, and IKEA are
all examples of businesses that engage in B2C ecommerce.
Business to Business (B2B)

 Examples include Xero, an online accounting software for small
businesses, ADP, a payroll processing company, and Square, a
payments solution for SMBs.
Consumer to Consumer (C2C)

 C2C commonly takes place on online marketplaces such as eBay,
in which one individual sells a product or service to another.

CATEGORIES OF E-COMMERCE
Government to Business (G2B)

 When a government entity uses the Internet to purchases goods or
services from a business, the transaction may fall under B2G e-
commerce.
Business to Government (B2G)
 B2G transactions take place when a company pays for government
goods, services, or fees online. Examples could be a business paying
for taxes using the Internet.
Consumer to Government (C2G)
 Consumers can also engage in B2C ecommerce. People paying for
traffic tickets or paying for their car registration renewals online may fall
under this category.

ADVANTAGES OF E-COMMERCE

DISADVANTAGES OF E-COMMERCE


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OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

Attitude Skills Knowledge

OFPS Entrepreneurship 3e All Rights Reserved

 According to Yep Putih (1989), entrepreneurship is the

OFPS Entrepreneurship 3e All Rights Reserved

“All entrepreneur are businessman but NOT all

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

 They make use of technology

OFPS Entrepreneurship 3e All Rights Reserved

 The organization teaches

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

E-commerce refers to commercial transactions

OFPS Entrepreneurship 3e All Rights Reserved

Business to Consumer (B2C)

Business to Business (B2B)

Consumer to Consumer (C2C)

OFPS Entrepreneurship 3e All Rights Reserved

Government to Business (G2B)

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

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