PB 201EntrepreneurshipPREPARED BY:ASMIZA BT. OSMANCOMMERCE DEPARTMENTLECTURES BY:RODZIAH ISMAIL

CHAPTER 1: INTRODUCTION TO ENTREPRENEURSHIP

Learning Objectives:At the end of the lesson, students will:1. Define the concept of entrepreneur and entrepreneurship2. Differentiate between Businessman and Entrepreneurs3. Explain the roles and social responsibilities of entrepreneur4. Explain the competencies of entrepreneurship 5. List of successful entrepreneurs in Malaysia6. Define e-business 7. State the importance of e-business to entrepreneur8. Distinguish the advantages and disadvantages of e-business9. Identify online marketing communication

A Time of Rapid Change30 years ago10 years ago

Entrepreneurial ventures

1.1 Explain about entrepreneurship 1.1.1 Define the concept of entrepreneur and entrepreneurship 1.1.2 Differentiate between Businessman and Entrepreneurs. 1.1.3 Explain the roles and social responsibilities of entrepreneur towardsa)Customersb)Society/communityc)suppliers d)staffe)competitorsf)nation

1.2 Discuss the competencies of entrepreneurship:a. Personal initiative- INISIATIF DIRIb. Seize opportunities AMBIL PELUANGc. Endurance- DAYA TAHANd. Information-seeker-MENCARI MAKLUMATe. High work quality- KERJA BERKUALITIf. Commitment towards work agreementg. Efficient-KECEKEPANh. Systematic planning- PLAN SISTEMATIKi. Creative problem solving-PENYELESAIAN MASALAHj. Self-confidence- KEYAKINAN DIRIk. Assertion-TUNTUTANl. Persuasion-PUJUKANm. Power and authority - KUASA DAN KEWIBAWAAN

1.3 Understand E-Business 1.3.1 Define e-business 1.3.2 State the importance of e-business to entrepreneur 1.3.3 Distinguish the advantage and disadvantages of e- business 1.3.4 Identify online marketing communication : a)Direct Email Marketingb)Online Cataloguec)Public Relations

THEORIES & CONCEPT OF ENTREPRENEURSHIP

THEORIES & CONCEPTS OF ENTREPRENEURSHIPSession Objectives At the end of the session, students should be able to:understand the various theories and concepts on entrepreneurshiphave a deeper understanding of the discipline of entrepreneurship

THE EVOLUTION OF ENTREPRENEURSHIP THEORYDefinition of an Entrepreneur : An entrepreneur is a person who undertakes to do a job Richard Cantillon (1755). The term entrepreneur is a French word first coined by Richard Cantillon.In Malaysia the term usahawan is used for entrepreneur.

THE EVOLUTION OF ENTREPRENEURSHIP THEORYDefinition of Entrepreneurship:

Entrepreneurship involves not only the process that leads to the setting up of a business entity but also the expansion and development of an on going concern.

THE EVOLUTION OF ENTREPRENEURSHIP THEORYAdam Smith (1776) - An entrepreneur is a person who acts as agent in transforming demand into supply.Jean Babtiste Say (1803) - An entrepreneur is a person who shifts resources from an area of low productivity to high productivity.

THE EVOLUTION OF ENTREPRENEURSHIP THEORYJohn Stuart Mill (1848) - An entrepreneur is a prime mover in the private enterprise.The entrepreneur is the fourth factor of production after land ,labor and capital.Carl Menger (1871) - The entrepreneur acts as an economic agent who transforms resources into products and services.The entrepreneur transforms and gives added value.

THE EVOLUTION OF ENTREPRENEURSHIP THEORYJoseph Aloysius Schumpeter (1934) - An entrepreneur is an innovator. The economy moves through leaps and bounds and the prime mover is the entrepreneur through the process of creative destruction.Alfred Marshall (1936) - The process of entrepreneurship or business development is incremental or evolutionary . It evolves from sole proprietorship to a public company.

THE EVOLUTION OF ENTREPRENEURSHIP THEORYIbnu Khaldun (Abdul Rahman Mohamed Khaldun) - The entrepreneur is seen as a knowledgeable individual and is instrumental in the development of a city-state where enterprise will emerge.David McClelland - The entrepreneur is a person with a high need for achievement. This need for achievement is directly related to the process of entrepreneurship.

DEFINITION OF ENTREPRENEURSHIPIt is more than creation of businessEntrepreneurship is a process of innovation and new venture creation through four major dimensions individual, organizational, environmental and process. The entrepreneurship process is aided by collaborative networks in government, education and institutions.

DEFINITION OF ENTREPRENEURSFunctional definition of entrepreneurs offers the following definition:Entrepreneurs are individuals who actively form or lead their own business and nurture them for growth and prosperity.

Introduction to EntrepreneurshipSimple DefinitionProcess of creating something new and assuming the risks and rewards. Robert D.Hisrich, M.P.Peters & D.A.Shepherd

Introduction to EntrepreneurshipWhat is an Entrepreneur?He or she is an individual who actively form or lead their own business and nurture them for growth and prosperity.UiTM Entrepreneurship Study Group

A person who creates and manages change by the recognition of opportunities (needs, wants, opportunities, problems, and challenges) and develops people and manages resources to take advantage of the resources to take the opportunity and creates a venture (profitable business).Eston Kimani, MIT

Entrepreneurship: Concepts & DefinitionsEntrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction of independence. Robert Hisrich

Entrepreneurship: Concepts & Definitions

Entrepreneurship is an act of initiative, drive, commitment, diligence, perseverance, organized effort, and achievement outlook, to undertake some specific functions of performing productive activities and the capacity to bear and associated with the investment.Economic Policy Paper on Entrepreneurship Development through Educational Reform-Bangladesh

Definition of Entrepreneur

The entrepreneur, by definition, shifts resources from areas of low productivity and yield to areas of higher productivity and yield. Of course, there is a risk the entrepreneur may not succeed. (Drucker, 85)

Why become an Entrepreneur?Personal situationResourcesEntrepreneurial skillsSuccess storiesDesire for independenceOpportunity to exploit a gapFrustration

BUSINESSMANENTREPRENEURA businessman not necessarily an entrepreneur An entrepreneur also a businessmanAlways involve with trade businessCommit with effort create own productsAlways make effort to increase profit Give priority to success and satisfaction, not profit only. Unimpressed with technological development and alterations Follow all reform to increase creativity.Selling existing goods in market Introduce new product that can penetrate the market Give priority to short period profit.Competition was a challenge which requires rigorous research to survive Think to resolve daily problem onlyAlways think to increase progress in future. Face competition as usual challenge Give priority to long term profit

THE IMPORTANCE OF ENTREPRENEURSHIP TO MALAYSIAN ECONOMYEntreprenuership is the symbol of business steadfastness and achievement. Entrepreneurial revolution is critical to economic growth. Entrepreneurship may affect our future in many ways:Innovative creation of opportunityExample: Portable phones linked to faxes and laptop will turns cars, train, and airport terminal into offices.

THE IMPORTANCE OF ENTREPRENEURSHIP TO MALAYSIAN ECONOMYEntrepreneurship not only affect our lives through innovation but represent the working future for many of us due to lays off by large organization and shrinking of job opportunities for graduates.

e.Entrepreneurship is synonymous to creation of new venture and small businesses. SMIs have been important contributors to local economic growth.

f.The entrepreneurial SMIs provide services that the large corporation has neglected or lack of economy of scale for the large corporation to serve.

g.Contribution of SMIs to Malaysian Economy - In Malaysia the SMIs employed 90% of the total labor force in manufacturing sector and contributed to about 26% of total value added in the sector.

THE IMPORTANCE OF ENTREPRENEURSHIP TO MALAYSIAN ECONOMY

ENTREPRENEURSHIP ROLE AND CONTRIBUTION TO SELF DEVELOPMENT, COMMUNITY AND COUNTRY

Self controlFully utilized of self potentialGenerate profitRole model to society

CONTRIBUTION TO SELF DEVELOPMENT

CONTRIBUTION TO SOCIETYServe the need and demand of society Offer career opportunity Contribute welfare to societyContribute in term of education development

Economic development. Absorb new technology to increase competitiveness. Develop human resource through companies personnel training. Serve local product to global market. CONTRIBUTION TO COUNTRY

Characteristics of an EntrepreneurDrivePerseveranceAmbitionLeaderSurvivor statusCompetitiveInterpersonal skillsInnovative skillsAbility to bounce backVisionMotivationSelf-confidenceSelf SatisfactionExtrovertResults orientatedCommittedRisk takerSociable

Personal InitiativeAlways do something without receiving instruction from anyone

Seize OpportunitiesEffort to seek and grab opportunitiesThere are opportunity behind every problem

Endurance Have great strength and courage Never give up accomplishing vision

Information SeekerFind the right information from the correct source

High Work QualityMake sure products are always betterEnsure satisfaction and simultaneously increase market share

Commitment Towards Work AgreementsWillingness to sacrifice his personal interest in order to make the market satisfactionTaking full responsibility in completing a task

Efficient Always finding ways to produce products at lower cost within a shorter time period

Systematic PlanningUsing a systematic and logical approach to achieve business goals

Creative Problem SolvingSearching for smart steps to solve problem as well as looking and thinking of innovation new ideas or creative problem solving methods

Self ConfidenceBelieve on skill and capabilitiesAble to make decision without hesitation or responds to challengesDo not have fear of failure

AssertionBrave to give ideas or opinion to people and to take action even when face to face from other

Persuation Able to persuade customer to buy product or service

Power& Autority Influence staff and industry to ensure achievementBase on 5 aspects:Total controlPower to impose penaltyGive rewardExpertiseShow good example

Online Marketing Com mun icationMarketing online can be in the form of sending an email, optimizing search engine result (SEO), or displaying banner ads on a webpage to reach potential customers.Online Marketing typically involves using only the Internet to promote products and services to consumers Do you understand what is online marketing communication ???Direct Email MarketingPublic RelationsOnline Catalogue

The process of direct email marketing (email direct marketing) including

Public RelationsUsing the news or business press to carry positive stories about your company or your products; cultivating a good relationship with local press representatives

allows companies to reach more consumers in a much broader economic market

lower some business costs, Owners and managers can purchase the cheapest goods available using e-business websites

Marketing and advertising is another business function with significant e-business benefits. Companies can send messages or stream content directly to a consumer's computer or personal computing device. This allows companies to advertise their products in a real-time format.

The Importance OfE-Business To Entrepreneur

E-BusinessADVANTAGES. Work from home, saves money of renting office/shop place.

. If trading on-line wont have to employee as many staff and this will also save the business money.

. Able to buy from it 24 hours a day

.Larger market of potential customers on-line

. Elderly people or people with disabilitys who are not able to go to the shops can still be customers of yours

DISADVANTAGES.Security there are still some people who dont think it is save to buy on-line therefore as their isnt a high-street shop will loss their custom.

.You may not recieved what you believe you have purchased.

.Things such as viruses could mean losing the site or affecting your customers computers while on your website.