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CHAPTER 1

THE BASIC OF
ENTREPRENEURSHIP AND
BUSINESS
by
Prof Madya Dr. Shuhairimi Abdullah

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Entrepreneurship
“…The scientist who cannot understand the way
entrepreneurs think will find it extremely difficult
to employ the business tools required to
commercialize his or her technology.
Entrepreneurs are not bound by formulas, rules,
linear patterns of thinking…”
Kathleen Allen
Learning Objectives
After studying this chapter you should be ready to
describe:
 The Basic of Entrepreneurship and It’s Risks
 Types of Business Organizations
 Types Of Entrepreneur According To Business Activity
 Identifying, Analyzing, Evaluating and Choosing
Business Opportunity.

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UUW 224 Engineering Entrepreneurship(EE)
1. The Basic of Entrepreneurship.
2. Preparation as Entrepreneur.
3. Business Entities, Regulation and Business Support.
4. Innovation in Entrepreneur.
5. Creativity and Innovation.
6. Evolution of Opportunities.
7. Planning as a Performance Tools.
8. Business Plan and Financial Plan.
9. Marketing Plan and Operational Pelan
10. Networking and Globalization.
11. Issues in Entrepreneurship.
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THE DEFINITION OF ENTREPRENEUR
LAYMAN’S TERM

French word ‘Entreprende’, “willing to take responsibility or willing to try


something new”.

Malay word ‘Usahawan’. “which means effort or willingness to do or complete a


task.

Oxford dictionary, “someone who is handling a business and taking business risk

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DEFINITION OF ENTREPRENEUR
Kirzner (1979) Entrepreneurs are individuals who are always alert about the
business opportunities that have not be seen by others

Kuratko and Hodgets Entrepreneur is one who undertakes to organize, manage and
(1992) assume the risk of business

Daft (1997) He or she who assumes the financial and legal risks of
ownership and receives the business profits

Peter Drucker (1985) Entrepreneur as someone who actually searches for change ,
responds to it, and exploits change as an opportunity

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DEFINITION OF
ENTREPRENEURSHIP
Barringer (2008) Entrepreneurship is the process by which individuals pursue
opportunities without regard to resources they currently
control
Schumpeter Entrepreneurship as a firm that operates and implements
(1934), and combinations of new activities such as product development,
Dollinger (1995) market research, sourcing for raw materials, manufacturing
approaches and new organizational structures.
Cole (1969) Entrepreneurship as activities that result in benefits through the
development of profit-oriented business.
Stevenson, Roberts Entrepreneurship as individual preparedness to compete for
and Grousbeck opportunities without considering the resources in hand
(1989)

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WHY SOCIETY NEEDS ENTREPRENEURS
• To utilise production factors such as land, capital,
technology in producing effective product
• To identify opportunities from the environment by
increasing the activity that will be beneficial to the
society
• To select the best approach to utilise all the
production factors in order to minimise waste in
entrepreneurship activities
• For the benefit of future generations by providing a
good platform such as infrastructure an
environment.
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CONTRIBUTION OF ENTREPRENEUR

• Developing New Market


• Discovering New Source of Material
• Mobilising Capital Resources
• Introducing New Technologies, Industries and
Products
• Creating Employment

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UUW 224 - EE
1. Mid Term Exam – Before Semester Break ( 20%)

2. Assignment – Research and Business Plan (30%)


(Submission in Week 11)

3. Final Exam – Week 16 (50 %)

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WHAT MOTIVATES PEOPLE TO BE AN
ENTREPRENEURS
• Be Their Own Boss
• Pursue Financial Rewards
• Involve In All Aspect of Business
• Prestige
• Opportunity to Build Equity
• Opportunity to Make Contribution

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DREAMS OF ENTREPRENEURS

10 D’S
• DREAM
• DECISIVENESS
• DOERS
• DETERMINATION
• DEDICATION
• DEVOTION
• DETAILS
• DESTINY
• DOLLARS
• DISTRIBUTE

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The Characteristic of an Entrepreneur

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Other Characteristic of an
Entrepreneur
o Commited to his/her work
o Always strive for excellence,
o Focus on his/her work,
o Confident to do business
o Discipline
o Innovative and creative
o Able to lead and manage
o Responsible and trustworthy
o Has a mission and vision
o Dare to take risk and never give up
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Characteristic of Successful Entrepreneurs
(ADDED KNOWLEDGE)

Passion for the Product/


business customer
focus

SUCCESSFUL
ENTREPRENEUR

Tenacity despite Execution


failure intelligent
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ENTREPRENEUR’S PERSONALITY
• Self Confident
• Willingness To Take Risk
• A & B Personalities
• Proactive Personality
• Locus of Control
• Machiavellianism

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Common Myths About Entrepreneurs
(ADDED KNOWLEDGE)
 Myths 1: Entrepreneurs Are Doers, Not Thinkers.
 Myths 2: Entrepreneurs Are Born, Not Made.
 Myths 3: Entrepreneurs Are Always Inventors.
 Myths 4: Entrepreneurs Are Academic and Social
 Misfits.
 Myths 5: Entrepreneurs Must Fit the Profile.
 Myths 6: All Entrepreneurs Need Is Money.
 Myths 7: All Entrepreneurs Need Is Luck.
 Myths 8: Entrepreneurship Is Unstructured and
Chaotic.
 Myths 9: Most Entrepreneurial Initiatives Fail.
 Myths 10: Entrepreneurs Are Extreme Risk
Takers or The Gamblers.

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Risks Of Being An Entrepreneur
(ADDED KNOWLEDGE)
1. Uncertainty of Income
2. Risk of Losing Entire Investment
3. Long Hours and Hard Work
4. High Stress Level
5. Difficulty in Obtaining Customers
6. Complete Responsibility
7. Difficulty in Obtaining Loans
8. Discouragement
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Entrepreneur VS Businessman
(ADDED KNOWLEDGE)

Entrepreneur Businessman
Profit Plan and focus Focus on short
for long term term profit
profit
Risk High level Low level
Opportunity Create and Follow business
invent new trend
business trend

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Thanks and Consultation

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