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Entrepreneurship &

Starting a Small Business

CHAPTER FIVE

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LEARNING OUTCOMES

In this chapter, you will learn to: Explain the definition of entrepreneurship, corporate

entrepreneurship and intrapreneurship. Identify the characteristics of entrepreneurs. Explain the importance of entrepreneurship. Discuss the advantages and disadvantages of

entrepreneurship. Discuss on how to manage a small business. Discuss entrepreneurship development in Malaysia.

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ENTREPRENEURSHIP

• Entrepreneurship can be categorized into two and both of these forms require entrepreneurial skills:– Independent entrepreneurship

– Corporate entrepreneurship

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• Corporate entrepreneurship describes entrepreneurial behaviour inside established medium and large sized organizations.

• Related terms include organizational entrepreneurship, intrapreneurship and corporate venturing.

CORPORATE ENTREPRENEURSHIP

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• A process by which individuals inside an organization are free to:– Pursue opportunities without having to pay due

regard to costs and resources

– Engaging in new activities

– Departing from customary practices they are free to pursue opportunities within the organization in a spirit of entrepreneurship.

INTRAPRENEURSHIP

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DIFFERENCES BETWEEN A BUSINESSMAN AND AN ENTREPRENEUR

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ATTRIBUTES OF SUCCESSFUL ENTREPRENEURS  

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IMPORTANCE OF ENTREPRENEURSHIP

• Entrepreneurship is able to provide great impact on a country’s economy and society.

• The importance of entrepreneurship to the economy and society was first articulated by Joseph Schumpeter (1934), an Austrian economist.

• Entrepreneurship provides an impact on the strength and stability of the economy in three ways:– Innovation – Job creation – Globalization

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ADVANTAGES AND DISADVANTAGES OF ENTREPRENEURSHIP

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MANAGING A SMALL BUSINESS

• For a business owner to succeed, the following knowledge and skills are necessary:– Planning business– Financing business– Knowing customers (marketing)– Managing employees (human resource

development)– Keeping records (accounting)

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BUSINESS PLAN

• A successful business plan includes the following areas:

– Cover letter – Executive summary– Company background– Management team– Market analysis – Marketing strategy

– Financial plan – Capital required – Location analysis – Manufacturing plan – Appendix

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ENTREPRENEURSHIP DEVELOPMENT IN MALAYSIA

• Emphasis towards entrepreneurship development in Malaysia begins from the New Economic Policy (1971–1990) till the National Development Policy (1990–2000) and Vision 2020.

• The government encourages entrepreneurship development and provides recognition to entrepreneurs who contribute to the development of the country.

• Ministry of Entrepreneurship Development and Co-operation has been formed to manage and promote Malaysia’s growth of entrepreneurship.

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• Following agencies formed to assist and guide new and existing entrepreneurs :

Malaysian Entrepreneurship Development Centre (MEDEC) Small and Medium Enterprises (SME) Development Programme by

SME Corp. Malaysia—formerly known as SMIDEC MSC Technopreneur Development Bahagian Latihan Keusahawanan by Kementerian Pembangunan

Usahawan dan Koperasi MARA Entrepreneurial Development Bahagian Pembangunan Usahawanan by Kementerian Kerja Raya Pejabat MARA Negeri Pusat Bimbingan Usahawanan  

ENTREPRENEURSHIP DEVELOPMENT IN MALAYSIA (cont.)

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BUSINESS SUPPORT SYSTEM (BSS) FOR ENTREPRENEURS BY MALAYSIAN AGENCIES

• The Malaysian government and private agencies are supporting the small and medium businesses in several ways in conducting their business: – Technical assistance – Financial assistance– Marketing assistance– Infrastructure assistance– Information providers – Research & Development (R&D)– Training, seminars & workshops

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SUCCESSFUL ENTREPRENEURS IN MALAYSIA

• Examples of successful entrepreneurs in Malaysia:– Shafiq bin Supenah– Tan Sri Anthony Francis Fernandes (Tony Fernandes)– Tan Sri Syed Mokhtar Shah bin Syed Nor Al-Bukhary– Robert Kuok– Ananda Krishnan– Teh Hong Piow– Rozita Ibrahim– Nikki Merz