DHC 3563 ENTREPRENEURSHIP STUDIES

2011

Chapter 1: Entrepreneur & Entrepreneurship 1. Earlier viewpoints

a. The word entrepreneur comes from the French word entreprendre, which refers to

individuals who undertake (the risk of new ventures). b. Entrepreneurship is a process of creating and expending business that collectively form a force for national development and societal prosperity. c. Entrepreneurs are individuals who actively form or lead their own business and nurture them for growth and prosperity. d. Corporate entrepreneurship may refer to two (2) aspects: i. Creation of or participation in new ventures by the existing corporate entity ii. The need for the corporation to continuously rejuvenate itself using its own entrepreneurial culture
e. Mengers model identifies stages of transformation and each stage represents

opportunities for adding value to the original resource in order to fulfill human needs. Here is example of Mengers model of value added transformation of resources. Start from priority 5 to priority 1;
i. Priority 5: Grain in field has very low value ii. Priority 4: Bulk grain from farmer has low value iii. Priority 3: Milled flour for baked has high value iv. Priority 2: Bread at bakery for sale has high value

v. Priority 1: delivered baked bread is highest value use f. Entrepreneurial Orientation continuum: Least entrepreneurial
1 2 3 4

Most Entrepreneurial

1: Administrator 2: Manager 3: Intrapreneur; Franchisee 4: Entrepreneur g. Entrepreneurial values and characteristics: i. Mayers and Goldstein (1961) 1. Rationality and objectivity 2. Realistic expectation and ability to plan carefully
1

DHC 3563 ENTREPRENEURSHIP STUDIES

2011

3. Managerial competence 4. Suitable personality 5. Emotional stability ii. Timmons, Smollen and Dingee (1977) 1. Drive and energy 2. Self confidence 3. Long term involvement 4. Money as a measure 5. Persistent problem solving 6. Goal setting 7. Use of feedback

iii. Welsh and White (1983) 1. Good health 2. Basic need to control and direct 3. Never ending sense of urgency 4. Realistic 5. Awareness h. Entrepreneurship able to energizing economic growth by: i. Spotting and seizing opportunities ii. Taking calculated risks iii. Innovation iv. Managing resources v. Forming ventures vi. Creating employment
2

DHC 3563 ENTREPRENEURSHIP STUDIES

2011

vii. Offering goods and services viii. Developing industries ix. Developing the nation i. Some of disciplines that entrepreneur should have: i. Theology ii. Economics iii. Psychology iv. Social psychology v. Sociology vi. Organization behavior vii. Business viii. Management ix. Strategic management 2. Islamic entrepreneurship a. Al Qurthubis formula for success by Hamat (1992): i. Halal (lawful livehood) ii. Qanaah (be pleased with ones earning) iii. Taufik (blessing of Allah in proportion to ones expectations) iv. Saadah (happy) v. Jannah (heaven) b. Seven (7) steps for success by Imam Al Ghazali in his book Minhajul Abidin: i. Knowledge and gnosis stage ii. Repentance (taubat) stage iii. Temptation stage iv. Obstacles stage v. Motivation stage vi. Imperfections stage vii. Praise and thankful (syukur) stage

DHC 3563 ENTREPRENEURSHIP STUDIES

2011

c. Adnans Islamic Entrepreneurship model:

DHC 3563 ENTREPRENEURSHIP STUDIES

2011

d. Entrepreneurial Process:

DHC 3563 ENTREPRENEURSHIP STUDIES

2011