Presentation on theme: "Introduction to entrepreneur and entrepreneurship"— Presentation transcript:
1 Introduction to entrepreneur and entrepreneurship Chapter 1Introduction to entrepreneur and entrepreneurship
2 Who is an entrepreneur?Entrepreneur stems from the French word entreprendre which refers to individuals who undertake the risk of new ventures.Richard Cantillon, a French economist asserted that an entrepreneur invests, transforms and makes profit / loss.Adam Smith widened the scope to include the task of forming an organisation for commercial purposes and the extra qualities of the entrepreneur (ability to foresee potential through changes in the economy and to act on the demand).
3 Who is an entrepreneur?French economist, Jean Baptiste Say: the entrepreneur was said to influence society by forming enterprises and in turn influenced by society to recognise needs and to fulfill them through skill management resources.British economist, John Stuart Mill: entrepreneurs as one of the factors of production (land, labour, capital and entrepreneur).
4 The evolution concept of entrepreneurship Joseph Schumpeter introduced the concept of creative destruction.Creative destruction sees the destruction of usual ways of doing things by the introduction of new improved ways.
5 The Economic Questions What should be produced?When will it be produced?How will it be produced?Who will produce it?Who gets to have what is produced?An economy is a country’s financial structure. It is the system that produces and distributes wealth.
6 Entrepreneurship development in Malaysia Entrepreneurship has existed in Malaysia since the interaction of Malacca with foreign traders.When the British colonized in Malay Peninsular, they practiced the ‘divide and rule’ system :Malays – engaged in administration and agricultureChinese – engaged in mining and businessIndians – engaged in rubber plantations
7 Entrepreneurship development in Malaysia After independence, the Malaysian government has been focusing on the field of entrepreneurship until todayA specific body to manage and promote the growth of entrepreneurship is the Ministry of Entrepreneurship Development and Co-operation.Others:The New Economic Policy( )The National Development Policy (1990 – 2000)Vision 2020
8 Why Be an Entrepreneur? Control over time Fulfillment Creation/OwnershipControl over Compensation-salary-wage-dividend-commissionControl over Working Conditions
9 The importance of entrepreneurship Micro aspects:Sources of new ideas and change:New and value added ideas & productsTransforming ideas and opportunities into profitable businessesMacro aspects:Creating wealth & promoting wealth distributionCatalyst for economic change and growthCreating job opportunitiesDeveloping supporting industriesProviding wider choices of technologically up to date productsUtilising resources more efficientlyExpanding family business that can be inherited and expandedRole model for society
11 Locus of Control-they control their destinies InternalLocus of Control-they control their destiniesFlexibilityInitiative &ResponsibilitySeekingFeedbackHighEnergyHighCommitmentTeamBuildingOpportunityOrientationAbility toset VisionModerateRisk TakerToleranceto FailureDrive toAchieveConfidence &OptimisticCreative andInnovativeSkilled atOrganisingIndependent
12 Businessmen vs Entrepreneurs Small BusinessmanEntrepreneurEngages in business to support living & familyStarts the ventures, assume leadership & expand it to fulfill personal goals n self-accomplishmentLow risk takerModerate risk takerFollows others and invests only in tested and proven mktsTakes calculated risk
13 Managers Vs Entrepreneurs Primary Motivespromotion & other traditional rewardsIndependence, opportunity to create & moneyTime OrientationShort-term: meetings, quota, budgetsSurvival and achieving; 5 to 10 yrs growth of businessActivityDelegates and supervises more than direct involvementDirect involvementRiskCarefulModerate risk takerStatusConcerned about status symbolsNot concerned about status symbolsFailure & MistakeTries to avoid mistakes & surprisesDeals with mistakes and failuresDecisionsUsually agrees with those in upper managementFollows dream with decisionsWho servesOthersSelf and customersFamily historyFamily members worked for large organisationsEntrepreneurial small business, professionalRelationship with othersHierarchy as basis relationshipTransactions and deal making as basic relationship