1.

0 Intoduction

According to Bruce R. Barringer and R. Duane Ireland in Entrepreneurship Successfully

Launching New Ventures Third Edition, the word entrepreneur derives form the French words
entre, meaning “between”. Pendre meaning “to take”. The words was originally used to describe
people “who take on the risk” between buyers and sellers or who “undertake” a task. Such as
starting a new venture. Inventors and entrepreneurs differ form each other. An inventor creates
something new. An entrepreneur assembles and then integrates all the resources needed. For
example money, the people, the business model, the strategy and the risk – bearing ability – to
transform the invention into a viable business. Other than that, entrepreneurship also is the act of
being an entrepreneur which is a French word meaning “one who undertakes innovations,
finance and business acumen in an effort to transform innovations into economic goods”.

H. H. Stevenson defines entrepreneurship as the process by which individuals pursue

opportunities without regard to resources they currently control. Other, such as venture capitalist
Fred Wilson defines it more simply, and sees entrepreneurship as the art of turning an idea into a
business. The essence own boss entrepreneurship behavior is identifying opportunities and
putting useful ideas into practice. There are primary reasons that people become entrepreneurs
and start their own firm are to be their own boss, purses their own ideas and realize financial
rewards.1 Other than that, although many behaviors have been ascribed to entrepreneurs, several
are common to those who are successful. Those in new ventures and those who are already part
of an entrepreneurial firm share these qualities. For example such as passion for the business,
product / customer focus, tenacity despite failure and execution intelligence.

2.0 What Is The Importance Of Entrepreneurship?

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Bruce R. Barringer and R. Duane Ireland in Entrepreneurship Successfully Launching New Ventures (2006)
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 Generally we know that entrepreneurship is not a new field in Malaysia.
Entrepreneurship has been long established in our society. History has proven that once upon a
time in this country and its people, especially in the glory days of the Malacca Government have
become a leading international commercial center. The successful entrepreneur who is able to
start and grow a business also contributes to the overall growth and welfare of the economy. This
positive impact on the economy is seen through an increased Gross Domestic Product (GDP), as
well as additional jobs available on the market.2
Now, it is abundantly clear that entrepreneurship is important for economic growth,
productivity, innovation and employment, and many Organizations for Economic Co-operation
and Development (OECD) countries have made entrepreneurship an explicit policy priority. In
many countries that are members of the Organization for Economic Co-operation and
Development (OECD), the number of women entrepreneurs is rising. According to the OECD,
enterprises owned by women now make up one-quarter to one-third of the total business
population worldwide. Women are likely to become even more important to the economy in the
future. As globalization reshapes the international economic landscape and technological change
creates greater uncertainty in the world economy, entrepreneurship is believed to offer ways to
help to meet new economic, social and environmental challenges.
Entrepreneurship associated with small business is also regarded as the key vehicle for
the creation of new enterprises as it generates job growth and stimulates competition.
Entrepreneurship has gained additional attention in the current economic crisis, as it is widely
viewed as a key aspect of economic dynamism. New business models and new technologies,
particularly those leading to cost reductions, often emerge in downturns. Hence, policy makers
look at entrepreneurship in combination with innovation to return to a period of sustained
economic growth. Both entrepreneurship and innovation are associated with “doing something
new” and policies, if designed appropriately, can be mutually reinforcing in (re-)creating
economic dynamism. The dynamic process of new firm creation introduces and disperses
innovative products, processes and organizational structures throughout the economy. In some
countries, entrepreneurship is linked to regional development programmers, and the creation of
new firms is stimulated to boost employment and output in depressed regions. In others,

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entrepreneurship is a key element of strategies designed to facilitate the participation of certain
target groups, such as women or minorities, in the economy. Some countries simply seek to
increase firm creation as such, while others set out to support high-growth firms.
Entrepreneurship also acts as a vehicle for personal development or for solving social problems.

3.0 The Importance of Entrepreneurship on Society Development

Entrepreneurship plays a vital role in today’s society for various reasons. The
entrepreneur is often the source of innovation, providing the market place with new and
improved products and services, providing work opportunity, improving living standards and
creates a civil society.

3.1 Source of Innovation

Innovation is a change in the thought process for doing something, or the useful
application of new inventions or discoveries. It may refer to an incremental emergent or radical
and revolutionary changes in thinking, products, processes, or organizations. Following
Schumpeter (1934), contributors to the scholarly literature on innovation typically distinguish
between invention, an idea made manifest, and innovation, ideas applied successfully in practice.
In many fields, such as the arts, economics and government policy, something new must be
substantially different to be innovative. The goal of innovation is positive change, to make
someone or something better. Innovation leading to increased productivity is the fundamental
source of increasing wealth in an economy. Joseph A. Schumpeter who defined the entrepreneur
as an individual who carries out new combinations of firm organization, new products or
services, new sources or raw material, new methods of production, new market segment, or new
forms of organization.
There are several sources of innovation. In the linear model of innovation the
traditionally recognized source is manufacturer innovation. This is where an agent (person or
business) innovates in order to sell the innovation. Another source of innovation, only now
becoming widely recognized, is end-user innovation. This is where an agent (person or

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company) develops an innovation for their own (personal or in-house) use because existing
products do not meet their needs.
Innovation is an important topic in the study of economics, business, entrepreneurship,
design, technology, sociology, and engineering. Colloquially, the word "innovation" is often
synonymous with the output of the process. However, economists tend to focus on the process
itself, from the origination of an idea to its transformation into something useful, to its
implementation; and on the system within which the process of innovation unfolds. Since
innovation is also considered a major driver of the economy, especially when it leads to new
product categories or increasing productivity, the factors that lead to innovation are also
considered to be critical to policy makers. Entrepreneurship certainly involves starting a new
business, but all business involves risk; leading me to place a greater importance on the idea of
innovation. It is the end result of this innovation that makes entrepreneurship so important.
There are without a doubt countless examples of entrepreneurs and their innovations that
have altered the way society functions. With many of these innovative products and services
come entirely new markets. Not only do these markets provide the consumer with additional
choices, they also lead to higher product quality and more competitive prices. These benefits to
the consumer accrue from the competitive forces that supply and demand put on businesses in a
particular market. Just look at the personal computer market as an example. In 1975 IBM
introduced its first personal computer, the IBM 5100. Depending on the amount of memory the
consumer desired, they could spend anywhere from $8,975 to $19,975.5 Just last year I
purchased a Compaq computer for $999. Obviously many factors play a part in the drastic
reduction in the price of personal computers, including multiple companies currently fighting for
market share, cost reductions in component parts, and perhaps most importantly innovations in
the production process. 3
As Schumpeter stated, encompassed within the concept of entrepreneurship is the
innovation of new production methods. I definitely agree with this concept. In a marketplace
where only the fittest survive, those companies that are able to convert inputs into output most
efficiently are going to prosper economically. The innovator who is able to not only envision a
new production method, but is able to institute that method successfully within their organization

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is without a doubt, in my mind, an entrepreneur. Just as starting a business involves risk, takes
creativity, innovation and leadership, all components of the entrepreneur, so does implementing
a new business or production method.

3.2 Providing The Market Place With New And Improved Products And Services

Entrepreneurship definitely plays an important role in the development and introduction

to the marketplace new and innovative goods and services, each of which are valued by society.
Being an entrepreneur means establish a new company or business. By this the emergence of
company or new venture, variety of goods and services will be produced. This situation will
provide more options and offering better quality to consumers. Along this healthy competition
among the producers will be realized. The community will be able to enjoy quality products in
terms of safety and security in the market. Therefore, in the service sector, competition will drive
the production of quality service in terms of security guarantees in the market.

By providing new and improved products and services, society would receive a chance to
upgrade their lifestyle. For example, by providing new and improved products and services to the
market, society will exposed to a new creations and this would help a person upgrade their life to
the standard life. Most probably, at least society could “match” their life with the millennium
lifestyle and proved that they are civilized and could achieved success with the help of new
innovations by the “concept” called Entrepreneurship.

Entrepreneurs from most recognized countries in Europe such as England, USA, and
Russia would make sure their flag of Entrepreneurship fly high on “world marketing” by
providing new and improved products and services. This step emulate by other entrepreneurs to
help a society upgrade their lifestyle. By using new products a society could expose themselves
to the variety of products and would prefer to be the most successful civilized society. In fact, if
we say new products “destroy” society’s life standard, it means we are just “ barking up wrong
tree”. We should not turn a blind eye on the great future provided by the Entrepreneurship.
Entrepreneurship helps people being the best of the bests. The most important thing is by
providing new products it could fulfill the desires of a society to get new products and enjoying

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the good quality of products. Consumers have a taste range and are an advanced task of an
entrepreneur to meet the needs and requirements.

3.3 Provide Work Opportunity

The innovations of entrepreneurial firms have a dramatic impact and important on a

society.4 One of the entrepreneurship important on society is provide work opportunity or job
creation. Companies run by entrepreneurs will be able to create employment opportunities for
local community members. Perseverance, courage to take risks and creative ideas that exist in
entrepreneurs, able to create a business that has great potential to grow in the future. Therefore,
many jobs can be held by the entrepreneurs in many ways. Some of the ways, including rising of
existing activities, such as adding items and expand the marketing area. Then, by opening new
branches in other cities or states. Moreover, create upstream or downstream activities , for
example, a book publishing venture could create upstream to run the company out of paper and
ink, while downstream activities by opening a book distribution outlets.

Entrepreneurs also provide franchise opportunities. This means that a business would not
only provide employment opportunities to the founder but also to other community
members. With the increase in employment opportunities, unemployment rate is reduced.
Opportunity to earn extra income amongst members of the community will increase. This is
purely a service that can be provided by the entrepreneur to the public. Well, the side business
will be created. This situation contributes to increasing the income of local residents. In this
income, they can fulfill their basic needs and desires. Furthermore, the new generation will be
given a better education. Local economic activity can flourish. Good condition like this will lead
to the flow of information technology, communication systems and thus the process of
urbanization. As the results, the standard of living will be enhanced.

For example, in the past two decades, economic activity has moved increasingly in the
direction of smaller entrepreneurial firms, possibly because of their unique ability to innovate
and focus on specialized tasks. In 1970, for example the Fortune 500 employed 20% of the U.S.
labor force. By 1996 that number had dropped to 8.5% and between 1993 and 1996 fast -
4
) Bruce R. Barringer and R. Duane Ireland in Entrepreneurship Successfully Launching New Ventures ( 2006 )
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growth young companies, known as gazelles, created about two – thirds of all new jobs in the
United States.5 Large firms are increasingly focusing on what they do best, which is usually
manufacturing, sales and service and are outsourcing the majority of their other tasks to smaller
firms. In addition, former start – up ventures, which have grown as a result of their
entrepreneurial activities, are serving the needs of consumers who were once serviced by larger
firms. Entrepreneurial firms that grow into large companies also provide substantial
employment. An in – depth study of the 1997 Fortune 200 found that 197 of the 200 firms in the
ranking could be traced back to one or more entrepreneurial founders. Examples include Cisco
System, Dell and Microsoft.

3.4 Improving Living Standards

Entrepreneurship can improve living society through the implementation of Rancangan

Malaysia Ketujuh (RMT) 1996-2000 and government’s principle likes Dasar Ekonomi Baru
(1970-1990) and continued by Dasar Pembangunan Negara (DPN). The objective of DPN is to
arrange and destroy the citizens destitution to 5.5%. This method is succeeding followed by
government planning although it moves slowly. Our country economic growth instigate with
high growth rate about 8.9% per year before economic criticalness happen on July 1997.Income
per capita on nominal value increased from RM1106 on 1970 to RM9786 on 1995.

This value shown that living status of society has increased outcomes from government
effort. These escalations per capita are measured according to the power of comparison purchase.
This growth is based entrepreneurship activities through production enterprise likes automobile,
steels, electric and electronic and so on. With this increasing can put Malaysia equal with other
countries likes Singapore, China and others.

Government focused on entrepreneurship development because it can gives positive

contribution on re-arrange society and accelerate industrial process concord with the society
objective of Masyarakat Perdagangan dan Perindustrian Bumiputera (MPPB). Government
realized about important of entrepreneurship on country development and a revolution in
Kongres Ekonomi Bumiputera ke-3 on January 1992 has put a measure of entrepreneurship
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Bruce R. Barringer and R. Duane Ireland in Entrepreneurship Successfully Launching New Ventures (2006)
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activities succeed.6 More income of people will improve people's savings. The money will allow
them to save for future needs, improve the opportunities for investment and may also open their
own business. These will all contribute to give prosperity to entrepreneur, community and
country at once. Prosperous entrepreneur means prosperous society. Prosperous society means
that the country prospered. Prosperous country will be able to bring development to the country
and people.

3.5 Solving Social Problems

Entrepreneurs also play a major part on solving social problems. Entrepreneur can help
society by the revenue that earned through income tax, zakat and entrepreneur donations can
help governments solve social problems that exist in the community. Government will be able to
build more welfare homes, rehabilitation program planning and organizing, helping people who
suffer hardship and may also finance the education of the less fortunate.

For an example, Tan Sri Syed Mokhtar al-Buhkary is an entrepreneur who establish
Yayasan al-Buhkary, a charities that helping the poor, support the development of Islamic art and
culture and promote understanding between civilizations. In 2000, al-Bukhary Foundation
donated total of RM7.75 million to the Oxford Centre for Islamic Studies, a renowned center of
Islamic learning in the world. Yayasan al-Bukhary is also currently assisting the Institute of
Educational Development (MIED) in a project to establish the Institute of Medicine, Science and
Technology Asia (AIMST) in Sungai Petani, Kedah.7 Yayasan al-Bukhary involvement in
projects initiated by non-Muslims are also highlighted. (One more proof of the Malay Can)
Although the Foundation al-Bukhary more emphasis on the welfare projects that characterized
Islam, they still contribute to projects undertaken by non-Muslims. For example, al-Bukhary
Foundation contributed a total of one million ringgit for the Langkawi Project, a project initiated
by the MCA to raise funds for its education projects in rural areas and also give scholarships to
needy students.

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Aini Hayati Mohamed, Faridahwati Mohd. Shamsudin,Hasni Che Ismail, Lim Kong Teong, Mohammad Basir
Saud, Nasruddin Zainudin, Norsiah Mat, Nurli Yaacob (2006) Teks Pra-U Pengajian Perniagaan Pearson Malaysia
Sdn Bhd

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Sumber Internet http://www.noorizamshah.com/2007/01/05/
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4.0 Conclusion

A good starting point would be a definition of what entrepreneurship is, unfortunately

this is no easy task. If there is one thing that all researchers of the topic of entrepreneurship can
agree on, it is that there is not one simple definition. The Cambridge dictionary defines the
entrepreneur as “someone who starts their own business, especially when this involves risks.”1
Austrian economist Joseph Schumpeter, long renowned for his research on entrepreneurship,
chooses to focus on innovation and places an emphasis on new products, new markets, new
production methods, and new forms of organization. Entrepreneurship certainly involves starting
a new business, but all business involves risk; leading me to place a greater importance on the
idea of innovation.

The role entrepreneurship in society development involves initiating and constituting

change in the structure of business and society. Entrepreneurship is provide new product and
services in marketplace, improve living standards, provide work opportunity, create a civil
society, source of innovations and solving the social problems.

Individual achievements are also looked highly upon by members of our society. If the
individual finds personal satisfaction in attaining these things, then being an entrepreneur may be
the ideal career path. While owning your own business brings risk, it also allows the
entrepreneur these freedoms which may not be available when you are not your own boss.

Entrepreneurship has and will continue to influence our society both in the innovation of
new products and services, as well as in the growth of the economy. Research and statistics show
the effect that successful entrepreneurs have had on both of these areas. Entrepreneurship is a
tremendous force that can have a big impact in growth, recovery, and societal progress by
fuelling innovation, employment generation and social empowerment. Individual achievements
are also looked highly upon by members of our society. If the individual finds personal
satisfaction in attaining these things, then being an entrepreneur may be the ideal career path.
While owning your own business brings risk, it also allows the entrepreneur these freedoms
which may not be available when you are not your own boss.

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 BIBLIOGRAPHY

• Bruce R. Barringer and R. Duane Ireland ( 2006 ) Entrepreneurship Successfully

Launching New Ventures Copyright 2006 by Pearson Education,Inc, Upper Saddle
River, New Jersey,$07458
• Bruce R. Barringer and R. Duane Ireland ( 2006 ). Entrepreneurship Successfully
Launching New Ventures. New Jersey. Pearson Education, Inc
• Bruce R. Barringer and R. Duane Ireland ( 2010 ). Successfully Launching New
Ventures (Third Edition). New Jersey. Pearson Education, Inc
• Bruce R. Barringer and R. Duane Ireland ( 2010 ).Entrepreneurship Successfully
Launching $ New Ventures ( Third Edition ), Entrepreneurship Successfully Launching

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 New Ventures( Third Edition ), 2010 Copyright 2010,2008,2006 Pearson Education,Inc,
Publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458

• http://answers.google.com/answers/threadview/id/316327.html

• http://en.wikipedia.org/wiki/Entrepreneurship

• http://shaivyakarnam.blogspot.com/2009/05/why-entrepreneurship-
education-is.html
• http://www.business4good.org/2007/04/importance-of-social-
entrepreneurship.html

• http://www.goarticles.com/cgi-bin/showa.cgi?C=1036875

• http://www.noorizamshah.com/2007/01/05/cerita-hebat-dari-melayu-
boleh.html
• http://www.yeabiz.com/pdfs/ImportanceofEntrepreneurship%20-%20James
%20Okland.pdf

• www.goarticles.com/cgi-bin/showa.

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