introduction of entrepreneurship

INTRODUCTION TO ENTREPRENEURSHIP

CHAPTER 1

Entrepreneurship

1.1 Explain about entrepreneurshipDefine the concept of entrepreneur and entrepreneurshipDifferentiate between Businessman and

EntrepreneursExplain the roles and social responsibilities

of entrepreneur

Entrepreneurship

1.2 Understand the personal traits/behaviours

associated with successful entrepreneurial

performanceDiscuss the competencies of

entrepreneurshipDiscuss on successful entrepreneurs in

Malaysia

Entrepreneurship

1.3 Understand E- Business Define E- Business State the importance of e-business to

entrepreneur Distinguish the advantages and

disedvantages of e-business Identify online marketing communication: - Direct Email Marketing - Online Catalogue - Public Relations

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 study of entrepreneurship is concerned with the entrepreneurial behavior, the dynamics of business set up and expansion and development.

THE EVOLUTION OF ENTREPRENEURSHIP THEORY

Adam 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.


John 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.


Alfred Marshall (1936) - The process of entrepreneurship or business development is incremental or evolutionary . It evolves from sole proprietorship to a public company.


Ibnu Khaldun (Abdul Rahman Mohamed Khaldun) - The entrepreneur is seen as a knowledgeable individual and is instrumental in the development of a city-state.

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 ENTREPRENEUR

The word entrepreneur is derived from the French word entreprendre which means 'to undertake or to try'.[Richard Cantallion 1775]

a common definition of an entrepreneur is someone who establishes a new entity to offer a new or existing product or service into a new or existing market, whether it is for a profitable or non-profitable outcome.

DEFINITION OF ENTREPRENEUR

An enterpreneur is an individual who is able to perceive an opportunity for a business and create an organization to develop and manage that business successfully.

An entrepreneur is an individual who organizes, manages and assumes the risks of a business (Kuratko & Hodgetts,2001)

DEFINITION OF ENTREPRENEURSHIP

Entrepreneurship is the process of seeking businesses opportunities under conditions of risk.

Entrepreneurship also refers to the process of creating something new of value by devoting the necessary time and effort, assuming the accompanying financial, physical and social risks and receiving the resulting rewards of monetary, personal satisfaction and indepedence.

According to Yep Putih, entrepreneurship is the ability, capability, and tendency to perform the following activities :

i. Identify business opportunitiesii. Manage a business effort which brings profit

to the enterpreneur and the public

iii.Obtain success and richness by fulfilling the society's needs.

iv. Take calculated risksv. Manage & utilize the factors of production to

bring economical development and enhance social welfare

v. Work hard and be prepared to make new changes that can increase production quantity and quality from

time to time

Differences between an enterpreneur and a small businessman

TimeNature of jobDecision makingEffort and commitmentRisk takerGoal

SMALL BUSINESSMAN VS ENTERPRENEUR

1. TIMESmall Business

Entrepreneur

Spending time buying and selling product. (Limited time)

Unlimited time-studying how to satisfy client and always come out with ideas on ways to improve his products


2. NATURE OF JOBSmall Business

Entrepreneur

faces competition as ordinary challenges

the competitive market is a challenge that needs to be thoroughly in order to survive in an industry.


3.DECISION MAKINGSmall Business

Entrepreneur

Follow the decision made by others and invests only in a tested and proven market

make on decisions and use his creativity in producing and creating innovative products and services that can penetrate a market which has not been tested before.


4. EFFORT & COMMITMENT

Small Business

Entrepreneur

is not attracted to changes and technological breakthrough

always keep himself updated with current and future technological development to further increase his creativity and productivity.

The Roles &Social Responsibilities of Entrepreneur

When you become entrepreneurs ..are you still responsible to our community and to our country? In our desire to maximize profits, are we going to cheat our customers, exploit our employees, and dump our wastes into the air, water and land? Many of our workers are underpaid. Our environment is being destroyed or polluted.

Discuss the roles of entrepreneur towards Customers, Society/community, Suppliers, Staff, Competitors & Country……

The Roles and Social Responsibilities of Entrepreneur toward:

Customers - sell quality products at fair price. Society/community- job creation and environmental

observation. Suppliers- be fair with his suppliers by paying them on

time as agreed upon Staff- promote the welfare of his employees Competitors- observe business ethics with his competitors Country- must pay the correct amount of taxes to the

government

COMPETENCIES OF ENTERPRENEURS

1.Personal initiative

2. Seize opportunities

3.Endurance4.Information-seeker

5.High work quality6.Commitment towards work

agreements

7.Efficient

8. Systematic Planning

9.Creative Problem Solving

10.Self Confidence

11.Assertion12.Persuasion

13. Power and Authority

An Ent who has strong personal initiative is able to act immediately on available opportunities and choose best strategy when he faces a problem.

Initiative allows an Ent to be alert and proactive.


1.Personal initiative

2. Seize OpportunitiesEnt grabs or seize opportunities continuously to make

sure that his business sustains for a long time in the industry.

focuses, identifies and exploits business opportunities.maximizes his thinking capacity by finding solutions to

probles faced by community.Ent who is successful will be confident that there is a

business opportunity behind every problem.


In identifying current human needs, he will take action to develop, modify, adapt or adopt the existing products to fulfil market demand.

The Ent increases his knowledge by getting ideas from employees, customers and competitors, reading on related matters and identifying his skills, capabilities and self potential.

3. Endurance

has to face various barriers and problems before achieving success.

Needs to have great strength and courage within him.

Strong enough to face problems and barriers courageously.

He would never give up accomplishing his vision and tries to deal with barriers that block his path to achieving success.

Faces various problems and risks :eg increase in the cost of raw materials


4. Information Seeker

A successful Ent is able to seek information, that is he has done some research to obtain information and received feedback from customers in order to provide a good product or service that can gain customers satisfaction and acceptance.

It is important for an Ent to make an analysis on his market and business progress.


Ent-should have correct and up to date information.

Info obtained will help him enhance his experience and improve his achievemEnt and business performance.

5. High Work QualityEnt always make comparison of his work

quality with those of others to make sure his products are always better.

Ent makes sure that he is not only doing a job but also doing it in the best way possible to produce products of the best quality.

Ent can increase his reputation as well as his business reputation-which are ways for him to become successful.


The continuous production of quality products and services will determine the customer's faithfulness, commitmEnt and satisfactions.

Products of high quality will bring profitable returns to an Ent as it ensures the faith of customers towards the products.

6.Commitment towards Work Agreementsa successful Ent devotes total commitment to the

venture. this commitment help the Ent to rectify mistakes

and overcome obstacles which threaten business operations. Ent. who has a high level of commitment towards work agreements can be seen in :

his willingness to sacrifice his personal interest in order to make the market successful

taking full resposibility in completing a taskhis willingness to help his own staff to perform the

job and provide satisfaction to customers.


7. EfficientEnt is orient towards efficiency and is

always findings ways to produce products with lower cost or within a shorter time period.

Use business information and management methods to improve his efficiency in business, which help decrease wastage and costs.


8. Systematic PlanningPlanning is the most important aspect for an Ent in

arranging buss strategies to achieve buss goals.Ent always focuses on the future and is sensitive

towards any change that occur. He will not be greedy or slow in reacting when an oppor. emerge. If the Ent does not have expertise in making decisions, he will consider sourcing skilled

expertise from outside the company.Ent practices time managemEnt in performing

syatematic planning of his business and then lead to an increase in performance and achieving business target.

Ent will not make long term plans such as 5-10 years as the market size keeps changing.


changes involving fixed capital based on five year plan will bring damage to the company and its new products as competition will grow in a long span.

This type of Ent would usually move towards :making plans, taking forward steps, and

dividing big tasks into much simpler and smaller tasks.- making evaluation and choosing the best alternative for a spesific problem.- taking a systematic and logical approach to achieve business goals.

9. Creative Problem SolvingEnt has the capability of solving problems in terms of searching for smart steps to solve those problems as well as looking and thinking of innovative new ideas or creative problem solving methods.


10. Self Confidence

Ent - confidence would help him succeed in his venture.

Ent who has confidence in himself would : -believe in his skills and capabilities to

achieve what he desires.Express the feeling of confidence towards his

capability in solving certain tasks and challenges. He will be able to stand firm and overcome the problem of low self esteem when confronted with competition.


- Be able to make decision without hesitationor respond to challenges- Read a lot and gather experience in subjects outside his specialization.

11. AssertionEnt will be assertive in his actions.

He is brave to give ideas or opinions to people and to take action when he has to face defiance from others.


12. PersuasionEnt is persuasive and will be able to persuade his customers to buy his products or services.

He has to persuade many people who have an impact on his business such as staff, customers, suppliers and financial institutions.


13. Power and Authority

Ent will think of a strategy to influence customers to buy his products or services without deceiving them in order to reach his vision.

Ent is a leader and he will be able to influence his staff and the industry that he is involved in to make sure he achieves his vision.


E-BUSINESS Information & communication tech.(ICT): - set of inter-related components that are able to

collect, process, store & distribute information

Input Processing Output Input : Raw data in the orgn. /data & commands

received from user…What are the examples of input devices?

Processing : The act of transforming the raw data into a meaningful form to the organization.

Output : Anything that is produced by input device- :number, text, picture by output device . Examples??

E-BUSINESS Vs E-COMMERCE

The terms ‘e-commerce’ and ‘e-business’ are often used interchangeably but what do these words really mean?

e-business covers online transactions, but also extends to all Internet based interactions with business partners, suppliers and customers such as: selling direct to consumers, manufacturers and suppliers; monitoring and exchanging information; and collaborative product design. These online interactions are aimed at improving or transforming business processes and efficiency. e-commerce refers to online transactions - buying and selling of goods and/or services over the Internet.

E-BUSINESS Online marketing communication:

Direct Email Marketing Direct email marketing is a format for

email-based campaigns in which standalone advertisements are sent to a targeted list of recipients. The messages, which may be text or HTML.

Online marketing communication:

Online Catalogue

* Internet-based presentation of a set of items available for purchase, including description, price, and ordering information- cyber catalog, electronic catalog and web catalog.

*Lower costs (no paper, printing & postage),24-hour accessibility, and the ability to quickly change price and product.

* Amazon.com - serving as a model for on-line catalog marketers. In travel and entertainment ticketing, entertainment merchandise (books, magazines, videos, music), grocery and drugstore sales, computer software, and computer hardware.

Online marketing communication:

Public Relations is the practice of managing the flow of information between an individual or an organization and the public

introduction of entrepreneurship

Education

theprocess of entrepreneurship

study of entrepreneurship

entrepreneur acts

word entrepreneur

concept of entrepreneur

business development

e business state

dynamics of business