CHAPTER 1

INTRODUCTION TO
ENTREPRENEURSHIP
By: Engr. Muhammad Muizz Bin Mohd Nawawi

DEFINITION OF ENTREPRENEURS
The word "entrepreneur" comes from the French word,
'entreprendre', which means to undertake or try
responsibility
An entrepreneur is an individual who organizes,
manages and assume the risk of a business (Kuratko and
Hodgetts)
An entrepreneur is an individual who creates a new
business in the face of uncertainty for the purpose of
achieving profit and growth by identifying and
capitalizing opportunities and assembling the necessary
resources to capitalize on the identified opportunies
(Zimmerer and Scarborough)

ENTREPRENEURSHIP
Entrepreneurship is the process of seeking business
opportunities under conditions of risk.
Entrepreneurship is ability, capabilities and tendency to
perform the following activities:
Identify business opportunities
Manage a business effort which bring profit to the
entrepreneur and the public.
Obtain success and richness by fulfilling the societys
needs.
Take calculate risk
Mange and utilize the factors of production to bring
economical development and enhance social welfare.

Attitude

Skills

Knowledge

High motivation

Decision maker

Finding and using information

Belief in yourself

Problem solving

Identify

and

project

Initiative

negotiate

Law

Responsible

communication

Managements

The

ability

to

handle Creative thinking

Accounting

uncertainties (risks taker)

Determination and persistence

Teamwork skills

Values

Mental and physical durability

Management skills

Business

Information seeker

Technical skills

Culture

implement

DIFFERENT CONCEPT OF
ENTREPRENEURS AND SMALL
BUSINESSMEN
Traders are people who undertake the sale and
purchase of goods or perform services activities
with a view to profit
Traders are people who engage in selling
activities
The objective is to achieve the dealer personally.

Businessmen Characteristic
Buy goods for resale.
Prices vary with the item purchased the resale price,
usually higher

Persuasion can manage the business well. It should be

able to manage money, workers, goods and stores to be
orderly and systematic.
Not create their own items to sell, but buy goods from
entrepreneurs to sell.

BUSINESSMEN
A dealer is not necessarily an entrepreneur.

ENTREPRENEUR
An entrepreneur is also a dealer

Actively engaged in the business of buying Involved in efforts to create their own
and selling.

products

Always trying to increase profits

Concerned with the success and satisfaction,

rather than purely profit.

Not

impressed

with

the

technological Following

all the

reforms

to

increase

developments and changes

creativity.

Sell existing products in the market

Introducing new products that can penetrate

Competition as a common challenge

Competition is a challenge that requires

close scrutiny to survive

Think just to solve everyday problems.

Looking far ahead and thinking to enhance

progress in the future.

Concerned with short-term profits.

Concerned about long-term profitability

Differences between an entrepreneur and a

small businessman
Characteristics

Entrepreneur

Small Businessman

Time

Unlimited

Limited

Nature of job

Flexible

Rigid in adapting to
changes

Decision-making

Makes own decisions

Follow decisions made

by others

Effort and commitment

continuous

Low

Risk taker

Moderate

Low

Goal

Maximizes self potential

by utilizing available
opportunities

Solely for profit

maximization

Social responsibilities of entrepreneurs

Social responsibilities means being concerned about
people or society as a whole.
Entrepreneur are entrusted with responsibility of
improving the quality of human life.
1. Responsibility towards customers
Establish a code of responsibility that sets the guidelines
for product quality and customer relations.
Monitor complaints from customers regarding the
quality of the product or treatment received from
employees. Follow up on the matter can then identify the
necessary corrective action to be taken.
Gather customer feedback via customer questionaires

2. Responsibilities towards society/ community

Produce, create and improve products.
Create choices through innovative and creative
productions.
Produce products of high quality.
Always be sensitive to the needs of customers
Fulfill the needs and wants of customers.
Create more job opportunities
Improve the lifestyle of the society

3. Responsibilities towards suppliers

Strengthen goods relationship with suppliers.
Pay any dues to suppliers at the agreed stipulated time.
Share opinions and experiences to create new ideas
4. Responsibilities towards staff
Always take care of the staff welfare.
Give adequate wage to the workers
Do not restrain and always provided guidance to staff
Conduct courses and training to update staff with the
latest information.
Reward staff with bonuses, allowances and others
benefits.
Appreciate and recognize dedicated and highly ethical
staff.

5. Responsibilities towards competitors

Practice healthy competition with competitors
Share ideas and opinions on ways to prepared and
provided the best services to customers.
Work together to produce and create products that can
give the most benefits to the customers.
Healthy competition among entrepreneurs will lead to
more job opportunities for the community.

6. Responsibilities towards country

Create job opportunities
Assist improving the lifestyle of the society.
Create more infrastructure facilities for the society
Improve socio-economical aspects and increase national
income.

COMPETENCY
ENTREPRENEURSHIP

Entrepreneurial competency means the ability or

competence of a person to perform
entrepreneurial functions effectively.

owned by the practices of behavior results from

the influence of one's life values, attitudes or
internal pressure to do an outstanding job.

1. Initiative
A person who is an individual initiative to create a job or
task without ordered or forced.
have a proactive attitude and strives to develop its
business success.
2. See and seize opportunities
Entrepreneurs who have the power to see and seize the
opportunity to have the efficiency to find and identify
business opportunities that exist
able to seize opportunities both to expand the market,
assistance to business interests and other.
Competency is a key factor for success and business
viability. This ability will help entrepreneurs start
businesses and enable the business life-lasting.

3.Perseverance
Attitude determination and perseverance can be seen
through the action of entrepreneurs as follows:
do not feel sick looking at ways to achieve without defeat.
Always strive to overcome obstacles that may hinder the
achievement
4. Searching for information
Individual attitudes are able to search for information is:
do their own research or survey to obtain information
and feedback to provide goods or services to satisfy
customers' access to specialist services for business
development and market research to make its analysis
Information and feedback obtained will be used to
enhance the experience, improve performance, and
business-led.

5.Emphasized the high quality of work

Tendency to produce or sell products of high quality
Always compare the quality of work produced with the
quality of the work of others that are at par or better.
Not merely to solve a task but will complete the task with
excellence and quality.
High quality work which can guarantee customer
satisfaction

6. Commitment towards Work Agreement

willingness to make personal sacrifices to complete a job
to take full responsibility in resolving a job
showing a concern for satisfying customers' needs always
ensure that every promise made, especially with
customers, suppliers and other parties met as agreed.
7. Oriented towards efficiency/Efficient
always find a way to do something with a lower cost or
with a shorter time than normally
always concerned about the estimated costs and benefits
of an improvement, change, or an action.
Business efficiency will increase profits and reduce
wastage and cost. This will help business success

8.Systematic planning
planning and arranging the steps and divide large tasks
into smaller and easier
make plans to overcome the expected
value and choosing the best alternatives to an action
taken in a systematic and logical approach to achieving
goals.
Entrepreneur of systematic planning can improve the
performance and achievement of business goals

9. Creative Problem Solving

find a smart steps to overcome the problem as best as
possible
to find and produce new ideas or innovative solutions
The action taken will be able to solve problems and to
create employee loyalty to the business.
10. Self Confidence
a belief in the abilities and capabilities to get what they
desired.
expressed confidence in the ability to solve a task or
meet a challenge.
not afraid to try and not afraid to fail
this attitude will inspire the confidence of others to
entrepreneurs and business.

11. Assertion (Tegas)

dare to voice their opinions or ideas directly to others
willing to take action despite having to face opposition
from other parties.
The nature of entrepreneurs will be able to guarantee
strict control of the organization well.
12. Convince Others / Persuasion
personal skills and can show others the quality of
information and experience.
Entrepreneurs need to have one of the power source or
combination of these resources as a strategic influence
on customers, employees and the entire industry
(stakeholders to the business, employees, customers,
suppliers, financial institutions) and the markets affected
by it.

13.Power and Authority

tend to think of strategies that can influence others
without deceit for a business goal.
entrepreneurs must be able to influence the workers, and
the venture industry in order to achieve his vision. The
five aspects of influence that can be used;
Influence on the absolute power
Influence based on the power to punish
Influence based on the power to give rewards
Influence based on the expertise
Influence based on the power to show good examples/
model

Successful entrepreneurs in
Malaysia
Tan Sri Syed Mokhtar Al-Bukhary
Tan Sri dr. Jeffrey Cheah
Harsukhlal Maganlal Kamdar

E-Business
Also known with the term dotcom
One tool @ a mechanism to help service providers /
products expand the product market @ their services.

A method of electronic transactions in virtual space

beyond the boundaries @ time.

company can set up a virtual link and customers can visit

at any time and where they are.

 E.g., a seller of books, souvenirs, toys and sports

equipment to set up outlets on the website as a virtual
office.
The ideal business approach and has the potential and
space with that much discretion to continue to grow.
Business activities are conducted through
telecommunications networks involving the Internet.

Began in the West since the early 1970s

 The existence of electronic data exchange network

between the company and cause the application of Ecommerce business in rapidly growing in tahun1990an
Malaysia.
Receive e-commerce as the company changes
Can redesign company's internal environment, whether
through management planning @ implementation

automatically.

The importance of E-commerce to

Entrepreneur
1.Upgrade accessibility /access to product information
2.Provide more information to customers more accurately
and quickly.
3.Provide important information to identify, match and
make innovations in the product.4.
4.The service is fast, easy, secure & reliable.
5.Providing satisfaction to customer.

6.To provide greater satisfaction to customers

Marketing Communications as
"Online"
Direct marketing is a form of advertising that reaches
its audience without using traditional formal channels of
advertising, such as TV, newspapers or radio.
Businesses communicate straight to the consumer with
advertising techniques such as fliers, catalogue
distribution, promotional letters, and street advertising.

 Direct Advertising is a sub-discipline and type of

marketing.
There are two main definitional characteristics which
distinguish it from other types of marketing.
The first is that it sends its message directly to
consumers, without the use of intervening commercial
communication media.

 The second characteristic is the core principle of

successful advertising driving a specific "call to action."
This aspect of direct marketing involves an emphasis on
trackable, measurable, positive responses from
consumers (known simply as "response" in the industry)
regardless of medium.
If the advertisement asks the prospect to take a specific
action, for instance call a free phone number or visit a
Web site, then the effort is considered to be direct
response advertising.

 Direct marketing is predominantly used by small to

medium-size enterprises with limited advertising
budgets that do not have a well-recognized brand
message.
A well-executed direct advertising campaign can

offer a positive return on investment as the message

is not hidden with overcomplicated branding.
Instead, direct advertising is straight to the point;
offers a product, service, or event; and explains how
to get the offered product, service, or event.

Online Catalogue
An online catalog might refer to:
The retail product offerings of an online shopping service
An electronic library catalogue

Online shopping is the process whereby consumers

directly buy goods or services from a seller in real-time,
without an intermediary service, over the Internet.
If an intermediary service is present the process is called
electronic commerce.

 An online shop, eshop, e-store, internet shop, webshop,

webstore, online store, or virtual store evokes the
physical analogy of buying products or services at a
bricks-and-mortar retailer or in a shopping mall.
The process is called Business-to-Consumer (B2C)

online shopping.
When a business buys from another business it is called
Business-to-Business (B2B) online shopping. Both B2C
and B2B online shopping are forms of e-commerce.

 Public Relations
Public relations can be defined as a management
function that is continuous and planned where the
organization will seek to obtain and maintain mutual
understanding, sympathy and support from any of the
parties concerned.
This is done by assessing the public opinion of their
organizations in order to connect and communicate
policies, policies and regulations as well as achieved
through planning and a more complete solution to
common
interests.

Objective
Public Relations Policy aims to "ensure the best images
are always protected and enhanced organization through
understanding, acceptance, trust, confidence and

cooperation obtained related services and quality

services, efficiently and effectively in relation to the
public."

END..