1. Introduction to entrepreneur and entrepreneurship
Chapter 1
Introduction 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 agriculture
Chinese – engaged in mining and business
Indians – engaged in rubber plantations

7. Entrepreneurship development in Malaysia
After independence, the Malaysian government has been focusing on the field of entrepreneurship until today
A 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/Ownership
Control over Compensation
-salary
-wage
-dividend
-commission
Control over Working Conditions

9. The importance of entrepreneurship
Micro aspects:
Sources of new ideas and change:
New and value added ideas & products
Transforming ideas and opportunities into profitable businesses
Macro aspects:
Creating wealth & promoting wealth distribution
Catalyst for economic change and growth
Creating job opportunities
Developing supporting industries
Providing wider choices of technologically up to date products
Utilising resources more efficiently
Expanding family business that can be inherited and expanded
Role model for society

10. Characteristics of Successful Entrepreneurs

11. Locus of Control-they control their destinies
Internal
Locus of Control-they control their destinies
Flexibility
Initiative &
Responsibility
Seeking
Feedback
High
Energy
High
Commitment
Team
Building
Opportunity
Orientation
Ability to
set Vision
Moderate
Risk Taker
Tolerance
to Failure
Drive to
Achieve
Confidence &
Optimistic
Creative and
Innovative
Skilled at
Organising
Independent

12. Businessmen vs Entrepreneurs
Small Businessman
Entrepreneur
Engages in business to support living & family
Starts the ventures, assume leadership & expand it to fulfill personal goals n self-accomplishment
Low risk taker
Moderate risk taker
Follows others and invests only in tested and proven mkts
Takes calculated risk

13. Managers Vs Entrepreneurs
Primary Motives
promotion & other traditional rewards
Independence, opportunity to create & money
Time Orientation
Short-term: meetings, quota, budgets
Survival and achieving; 5 to 10 yrs growth of business
Activity
Delegates and supervises more than direct involvement
Direct involvement
Risk
Careful
Moderate risk taker
Status
Concerned about status symbols
Not concerned about status symbols
Failure & Mistake
Tries to avoid mistakes & surprises
Deals with mistakes and failures
Decisions
Usually agrees with those in upper management
Follows dream with decisions
Who serves
Others
Self and customers
Family history
Family members worked for large organisations
Entrepreneurial small business, professional
Relationship with others
Hierarchy as basis relationship
Transactions and deal making as basic relationship