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CHAPTER 7

ENTREPRENEURSHIP AND BUSINESS PLANNING

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LEARNING OBJECTIVES

1. Understand the concept of entrepreneurship

2. Understand the role of entrepreneurship in economic development

3. Understand the differences between the entrepreneurial and managerial domains

4. Identify the general characteristics of an male and female entrepreneur

5. Identify what business plan is

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INTRODUCTION

Entrepreneurship is vital for stimulating economic growth and employment

opportunities in all societies.

This is particularly true in the developing world, where successful small businesses are the

primary engines of job creation and also had help to reduce poverty around the

world.

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THE NATURE & CONCEPT OF ENTREPRENEURSHIP

process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, physics and social risks and receiving the resulting rewards of monetary and personal satisfaction and independence.

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WHAT MAKES AN ENTREPRENEUR?

Age? Gender? Education? Experience?

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THE ENTREPRENEURIAL DECISION PROCESS

Changing current lifestyle? Switching careers? Look at table Decision for a

Potential Entrepreneur (pg77)

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CREATING A NEW BUSINESS Small business are created by entrepreneurs

who has business ideas and also determine to venture in this world

In Malaysia, many became successful and some even had close their business due to internal and external factors.

Late Dato’ Loh Boon Siew Dato’ Robert Kuok Dato’ Tony Fernandes Tan Sri Syed Mokhtar al-Bukhary Dato’ Maznah Hamid Dato’ Ananda Krishnan Tan Sri Azman Hashim Dato’ Steven Sim

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MANAGERIAL vs ENTREPRENEURIAL DECISION MAKING What are the difference between managers

who manage a company, a true entrepreneur & intrapreneur?

Kindly refer to table 5.3 (pg79)

Male vs Female Entrepreneur

The major differences of male & female entrepreneur can be compared as per table 5.4. (pg81)

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WHAT IS BUSINESS PLAN?

Business plan is a written document prepared by the entrepreneur which contains the external and internal elements in starting a new business venture.

A business plan can help an entrepreneur to allocate resources appropriately, handle unexpected problems, and make good business decisions.

A well-organized plan is an essential part of any loan application. It should specify how the business would repay any borrowed money.

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OUTLINE OF A BUSINESS PLAN

Basic elements of a business plan as per table 7.5 (pg84)

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Tutorial Questions

How are existing companies in a market affected when a new company with a competitive advantage enters the market?

How is Malaysian government plays a role in entrepreneurship?

What are the pros and cons of entrepreneurship? Do you think you have the skills required including risk tolerance, to be an entrepreneur?

What are the components in marketing plan? Why marketing plan is important?

Summarize an article of your idol entrepreneur (article from journal, magazines or newspaper)