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B. Chapter 1 Mpu22012 2020

This document provides an introduction to entrepreneurship, defining key concepts and theories. It discusses the differences between small business owners and entrepreneurs, and identifies various types of entrepreneurship including intrapreneurs, technopreneurs, and social entrepreneurs. The document also outlines important learning outcomes, describes the attitudes and attributes of successful entrepreneurs, and discusses the importance and ethics of entrepreneurship for self, family, society, and various stakeholders.

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Prasanna Devi Palanesamy
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63 views26 pages

B. Chapter 1 Mpu22012 2020

This document provides an introduction to entrepreneurship, defining key concepts and theories. It discusses the differences between small business owners and entrepreneurs, and identifies various types of entrepreneurship including intrapreneurs, technopreneurs, and social entrepreneurs. The document also outlines important learning outcomes, describes the attitudes and attributes of successful entrepreneurs, and discusses the importance and ethics of entrepreneurship for self, family, society, and various stakeholders.

Uploaded by

Prasanna Devi Palanesamy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CHAPTER 1:INTRODUCTION TO

ENTREPRENEURSHIP
MPU22012

By NURULHUDA BINTI KHAIRUDIN


LEARNING OUTCOMES
1. Define the concept of entrepreneur and entrepreneurship

2. Differentiate between small businessman and entrepreneurs

3. Identify the types of entrepreneurship

4. Explain the entrepreneurship theories

5. Describe the attitudes and attributes of entrepreneurs

6. Discuss the importance of entrepreneurship to self, family and society

7. Discuss ethics, professionalism and social responsibilities for


entrepreneur
CONCEPT OF ENTREPRENEUR
• The word ‘entrepreneur’ is derived from French
word entreprendre which means ‘to undertake’ or
‘to try’
• An individual who organizes, manages and assumes
the risks of business
• An individual who sets up a business, taking on
financial risk in the hope of profit.
• An entrepreneur always alert about business
opportunities that have not been seen by others. He
takes proper action that is imaginative, creative,
and innovative.
CONCEPT OF ENTREPRENEURSHIP
• Process of seeking business opportunities
under conditions of risk

• Process creating something new of value by


devoting the necessary time and effort

• Involved not only the process that leads to


the setting up of a business entity but also the
expansion and development of an ongoing
concern.
DIFFERENCES BETWEEN BUSINESSMAN
AND ENTREPRENEUR
CHARACTERISTICS ENTREPRENEUR BUSINESSMAN

TIME UNLIMITED LIMITED

NATURE OF JOB FLEXIBLE RIGID

DECISION MAKING OWN DECISION FOLLOW DECISION

EFFORT CONTINUOUS LOW

RISK TAKING MODERATE LOW

GOAL MAXIMIZES SELF SOLELY PROFIT


POTENTIAL BY UTILIZE
OPPORTUNITIES
TYPES OF ENTREPRENEURSHIP
1. INTRAPRENEUR
An intrapreneur is an entrepreneur within a
large organization with high entrepreneurial
characteristics

2. TECHNOPRENEUR
A technopreneur is an entrepreneur who
involves himself in technological changes in
produsing goods and services for his
organization.
TYPES OF ENTREPRENEURSHIP
3. COPRENEUR
A copreneur is an individual or a group of
individuals in association with an existing
organization that creates a new organization,
or instigates a renewal or innovation within the
organization. The organization teaches
managers to be entrepreneurs.
4. SOCIAL ENTREPRENEURS
someone who recognizes a social problem, and
uses entrepreneurial principles to organize,
create, and manage a venture to make social
change.
TYPES OF ENTREPRENEURSHIP

5. CYBERPRENEUR
Someone who is starting or running a business
in cyberspace by using the Internet.
ENTREPRENEURSHIP THEORIES
1. ECONOMIC PERSPECTIVE

Richard Cantillon (1755)


Goods are bought at a certain price, value is added by
transforming the goods (the least being repackaging)
and the goods are then sold at an uncertain price.
Entrepreneurs as an important group in the society and
the key economic player in developing national
economy.
ENTREPRENEURSHIP THEORIES
1. ECONOMIC PERSPECTIVE

Adam Smith (1776)


An entrepreneur reacts to economic change, thereby
becoming the economic agents who transform
demand into supply.
The entrepreneur is said to influence society by
forming enterprises and is in turn influenced by society
to recognize needs and fulfil them through skillful
management of resources.
ENTREPRENEURSHIP THEORIES
2. PSYCHOLOGICAL PERSPECTIVE
McClelland (1951)
Key to entrepreneurial behavior lies in achievement
motivation or the need to excel and to achieve a goal
in relation to a set of standards. A person endowed
with such a need is expected to spend time considering
how to do a better job or how to accomplish
something important to them.
High need of achievement drives people to become
entrepreneur.
ENTREPRENEURSHIP THEORIES
3. SOSIOLOGICAL PERSPECTIVE
Ibn Khaldun
The entrepreneurs are the ones who bear the
consequences of their actions in term of gains and
losses.
The increase in socialization and interaction within the
community leads to higher civilization therefore
development, modernization and entrepreneurial
activities occur more in urban areas than in
countryside.
ENTREPRENEURSHIP THEORIES
4. MANAGEMENT PERSPECTIVE
Peter F. Drucker
Define entrepreneurs as one who always searches for
change, responds to the change, and exploits them. He
regards it as an opportunity and through innovation as
a basic tool for entrepreneurs.

Donald F Kuratko and Richard M. Hodgetts


Entrepreneur as one who undertakes, manage, and
assume the risk of a business.
PERSONEL ATTITUDES OF ENTREPRENEUR

Self-
Independence Persistence
confidence

Organized and
Creativity
goal oriented
PERSONEL ATTITUDES OF ENTREPRENEUR

Risk Taking
Visionary and Tolerance Hardwork
for failure

Commitment Honesty
PERSONEL BEHAVIORS ASSOCIATED WITH SUCCESSFUL
ENTREPRENEUR PERFORMANCE

• Entrepreneur competencies can be observed from the


entrepreneur's attitude, internal life values or is
insistence to perform with excellent. McClelland and
McBer & Co (1980) listed 13 entrepreneurial competencies:

Personal Seize
initiative opportunities

Information
Endurance
seekers

High work
quality
Commitment
towards work Efficient
agreement

Creative
Systematic-
problem
planning
solving

Self-
confidence
Assertion Persuasion

Power and
authority
IMPORTANCE OF ENTREPRENEURSHIP
towards………….

Self-development

Society
development family
SELF DEVELOPMENT

• Opportunity to control direction in life


• Opportunity to maximize self-potential

• Opportunity to obtain unlimited financial rewards


FAMILY DEVELOPMENT

• Increase family income


• Raises living standard

• Improve social status


SOCIETY/COMMUNITY DEVELOPMENT

• Improve the standard of living and lifestyle


• Fulfills society’s needs and wants

• Create choices through innovative and creative


production techniques
ETHICS AND SOCIAL
RESPONSIBILITIES OF ENTREPRENEUR
customer

staff
creditors

suppliers environment

society competitors

government
MALAYSIAN SUCCESSFUL ENTREPRENEURS
WORLD SUCCESSFUL ENTREPRENEURS

SAM WALTON

STEVE JOBS
Thank you for lending your ears

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