ENT/ETR 300 FUNDAMENTALS OF ENTREPRENEURSHIP

ADLAN AHMAD BAKRIUiTMT July/Rejab 2009/1430

Evolution of Entrepreneurship TheoryAn entrepreneur is a person who undertakes to do a job for instance invests, transforms & make profit or loss Richard Cantillon (1755) An entrepreneur is a person who act as an agent in transforming demand into supply Adam Smith (1776) An entrepreneur is a person who shifts resources from an area of lower to higher productivity BS Jean (1803)1431 30 Fundamentals of Entrepreneurship 2

Evolution of Entrepreneurship TheoryAn entrepreneur is the prime mover in the private enterprise. Considered as fourth factor of production after land, labor and capital SM John (1848) The entrepreneur acts as an economic agents who transforms resources into products and services (offerings). The entrepreneur transforms and gives added value to the sources Carl Menger (1871)1431 30 Fundamentals of Entrepreneurship 3

WHAT IS ADDED VALUE

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A GOOD DINING TABLE MADE FROM SOLID WOOD MIGHT COST US A FEW THOUSANDS RINGGIT. THE PROCESS OF MAKING SUCH TABLE STARTED SOMEWHERE IN THE THICK FOREST.

Evolution of Entrepreneurship TheoryAn entrepreneur is an innovator. The economy moves through leaps and bounds and the prime mover is the entrepreneur through the process of creative destruction AS Joseph (1934) The process of entrepreneurship or business development is incremental or evolutionary. It evolves from sole proprietorship to a public company Alfred Marshal (1936)Fundamentals of Entrepreneurship

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WHAT IS CREATIVE DESTRUCTION ?Destruction of usual ways of doing things by the introduction of new improved ways. For instance the evolution of information & communication technology (ICT) itself.

Evolution of Entrepreneurship TheoryThe entrepreneur is seen as a knowledgeable individual and instrumental in the development of a city state where enterprise will emerge Ibnu Khaldun (Abdul Rahman Mohamed Khaldun) The entrepreneur is a person with a high need for achievement. This need for an achievement is directly related to the process of entrepreneurship David McClelland1431 30 Fundamentals of Entrepreneurship 7

ENTREPRENEUR ?WHAT WOULD BE YOUR WORDS IN DESCRIBING THE SAID PERSON AND ITS ACTIVITIES? AND NAME OUR LOCAL ENTREPRENEURS THAT YOU THINK SUIT David McClelland s statement?

Definition of EntrepreneurshipGlobal Entrepreneurship Monitor (UK) defines entrepreneurship as any attempt at new business or new venture creation such as self employment, a new business organization or the expansion of an existing business by an individual, team of individuals or an established businesses . Is a process of creating and expanding businesses that collectively form a force for nation development and societal prosperity.1431 30 Fundamentals of Entrepreneurship 9

Definition of EntrepreneurshipEntrepreneurship is a process of innovation and new venture creation through four major dimensions individual, organizational, environmental and process.Environmental forces are government policy, customers, society, suppliers, NGO, globalization, economic liberalization .etc.1431 30 Fundamentals of Entrepreneurship 10

Definition of EntrepreneurEntrepreneurs are individuals who actively form or lead their own business and nurture them for growth and prosperityThey are never generic, come from multi backgrounds, having different management styles and motivated by many factors.1431 30 Fundamentals of Entrepreneurship 11

ISLAMIC VIEW ON ENTREPRENEURSHIPIslam is a way of life (ad-Deen). (adNo separation between business & religion. Al Quran & As Sunnah (Hadith) are the guidance for all living philosophies and activities. Cheating, lying or dishonest would be considered as tactic only during war. In business, all those are forbidden. Business is part and parcel of ibadah (fardhu kifayah) practicing by Muslim entrepreneur.1431 30 Fundamentals of Entrepreneurship 12

ISLAMIC VIEW ON ENTREPRENEURSHIPProfit is not the ultimate objective. GOD s blessing shall above all factors. Success in Islam is not merely measured by end results but the means and ways of achieving it. GOD is the absolute owner of wealth. Islamic Entrepreneurship should be the framework of Islamic Economic System.1431 30 Fundamentals of Entrepreneurship 13

Muslim Entrepreneur Conducts During Prophet Muhammad S.A.W.Business is secondary when being called for other form of battle/struggle/Jihad. Not to be self-interested. selfAfraid of accumulated wealth. Leadership qualities in all aspects. Practice moderate way of life.

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Islam Applauding Wealth Creation For Good Deeds and JihadSurah An Nisa 4:95 Those believers who stay at homehomehaving no physical disability-are not disabilityequal to those who make Jihad in the cause of ALLAH with their wealth and their persons. ALLAH has granted a higher rank to those who make Jihad with their wealth and their persons than to those stay at home .

A Business Which Is A Secondary BusinessSurah Saba 34:37 34: It is neither your wealth nor your children which bring you closer to Us even one jot, but those who believe and do good deeds, there will be a double reward for their deeds and in high mansions shall they live in peace

A Business Which Is A Secondary BusinessSurah Jumua h Surah 62 Ayat/Ayah/Verses 9-10 9O believers! When the call for Solah is made on Friday, hasten to the remembrance of ALLAH and cease your business. That is better for you if you but knew. When you finish the Solah, then disperse through the land and seek the bounty of ALLAH. Remember ALLAH frequently, so that you may prosper

Success Formula By Al QurtubiHalal living as per ALLAH s outline. Qanaah be please and thankful with one s earning. Taufiq asking ALLAH s blessing. Sa adah spiritual happiness. Jannah worldly success as a bridge to success in the life hereafter.1431 30 Fundamentals of Entrepreneurship 18

7 Steps Towards Success in Life By Imam Al GhazaliLevel Level Level Level Level Level Level1431 30

of of of of of of of

knowledge taubat (repentance) temptation obstacles motivation handicap praise and thankfulnessFundamentals of Entrepreneurship 19

The Eight Principles of Thoughts!Entrepreneurship is an integral parts of Islam Muslim entrepreneurs are khalifah having certain responsibilities towards society Motivation value of success in Islam much more depending on the way or means to achieve it. Business is an ibadah or good deed as long as given outline being adhere.1431 30 Fundamentals of Entrepreneurship 20

The Eight Principles of Thoughts!Islam encouraging Muslim to venture into business. Islamic Entrepreneurship shall operate within Islamic Economic System. Islamic Entrepreneurship is subjected to given guidelines providing by Al Quran and As Sunnah (Hadith) Entrepreneurial ethics as per Sunnah1431 30 Fundamentals of Entrepreneurship 21

Muslim Entrepreneurship EthicsTo prevent laziness/greediness/stinginess To avoid wealth creation link to forbidden sources (haram or even shubahah) Tawakkal/Patience/Qanaah/Pray/Zakat Trustworthy/Humble/ Business to diversify/develop capital/profit To show/reflect gratitude/thankfulness on given wealth/success or even failure Istiqomah in doing business and always muhasabah for continuous improvement1431 30 Fundamentals of Entrepreneurship 22

Entrepreneurship & Malaysian EconomyEntrepreneurial process is critical to economic growth. Innovative creation of opportunity. A career in making. Does not depend on others for jobs. Self employed. SMI/SME are significant contributors to domestic economic growth.1431 30 Fundamentals of Entrepreneurship 23

More Info About SMI/SME Within Asean/Asian RegionsPlease visit SME Corp Malaysia (formerly known as SMIDEC) website. Please browsing NPC website. Please explore MITI website. Please and please do so! Bring to next class your findings for further discussion.1431 30 Fundamentals of Entrepreneurship 24

terima kasih rima kasthanks for

your

great attention. attention.