chapter 7-source of

capital

Concept of Entrepreneur &
Entrepreneurship

Entrepreneur
- Word of entrepreneur derived from French word
entrepredre means to undertake or to try.
- Entrepreneur is person who organizes, manages and
assumes the risk of business.(Kuratko and Hodgetts, 2001)
- Entrepreneur refer to individual who establishes a
business and manages it to obtain profit and to be
succesfull. (Carland, 1984)
- It also define as who accept risks and opportunities of
creating, operating and growing a new business.


- Entrepreneur is a person who sets up a
business or businesses, taking on financial
risks in the hope of profit.
- It also a businessman who takes risks to
combine factor of production such as
capital,labour and raw material and accepts
rewards through profit made by market value
of his product.
- An entrepreneur is always alert about
business opportunities that have not been
seen by others.
- They will have imaginative, creative and
innovative.
Entrepreneurship
- is a process of seeking businesses opportunities
under conditions of risk.
- also refers to the process of creating something
new value by devoting the necessary time and
effort, assuming the accompanying financial,
physical and social risks and receiving the
resulting monetary rewards, personal
satisfaction and independence.
- The study of entrepreneurship is concerned with
the entrepreneurial behavior and dynamics of
business set up, expansion and development.


The success of a business venture depends on several aspects which are
required by an entrepreneur that encompass attitude, skills and knowledge;
ATTITUDE SKILLS KNOWLEDGE
Motivation Decision making Law
Confidence Problem solving Management
Initiative Negotiation Economics
Responsibility Communication Accounting
Risk Taker Creativity Values
Diligence Team Work Business
Mental and Physical fitness Management Culture
Information seeker Technical Project management
Difference between Businessman
and Entrepreneurs
CHARACTERISTICS ENTREPRENEUR SMALL BUSINESSMAN
Time Unlimited Limited
Nature of job Flexible Rigid in adapting to change
Decision making Makes own decisions Follows decisions made by
others
Effort and commitment Continuous Low
Risk taking 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 and society as a
whole.
Entrepreneurs are entrusted with
responsibility of improving the quality of
human life.
Social responsibilities is seen as a key
driver for engaging the wider community in
business activities.
Country
Competitors
Staff
Suppliers
Society/
Community
Customers
Social
Responsibilities
Customers
- Monitors complaints from customers regarding the quality of the product or
treatment received from employees. Follow-up on the matter then identify
the necessary corrective action to be taken.
- Gather information feedback via customer questionnaires regarding the
product or services which recently been purchased by customers.
Society / Community
- Produce, create and improve products.
- Create choices through innovative and creative production.
- Produce products of high quality.
- Always be sensitive to the needs of customers.
- Fulfill the needs and want of customers.
- Create more job opportunities.
- Improve the lifestyles of society.
Suppliers
- Nurture good relationship with suppliers.
- Pay any dues to suppliers at the agreed stipulated time.
- Share opinions and experiences to create new ideas related to the
business.
Staffs
- Always take care of the staff welfare.
- Give adequate wage to the workers.
- Do not restrain and always provide guidance to staff.
- Conduct courses and training to update staff with the latest information.
- Rewarded staff with bonuses, allowances and other perks such as extra
holidays.
- Appreciate and recognize dedicated and highly ethical staff.
Competitors
- Practice healthy competition with competitors.
- Share ideas and opinions on way to prepare and provide the best services
to customers.
- Work together to produce and create products that can give the most
benefit to the customers and make improvements to the product to attract
more customers.
- Healthy competition among entrepreneurs will lead to more job
opportunities for the community.
Country
- Create job opportunities.
- Assist in improving the lifestyle of the society.
- Create more infrastructure facilities for the society.
- Improve socio-economical aspects and increase national income.
- Diversify the national economy so not to depend solely on one sector of the
economy.



PERSONAL TRAITS/BEHAVIORS ASSOCIATED WITH
SUCCESSFUL ENTREPRENEUR PERFORMANCE
Entrepreneurial competencies refers to keys
characteristics possessed by successful
entrepreneurial functions effectively.

Entrepreneurial competencies can be observed
from the entrepreneurs attitude, internal life
value or his insistence to perform with
excellence.
There have 13 entrepreneurial competencies possessed
by successful entrepreneurial, which are;

- Personal initiative
- Seize opportunity
- Endurance
- Information seekers
- High work quality
- Commitment towards work agreements
- Efficiency
- Systematic planning
- Creative problem solving
- Self-Confidence
- Assertion
- Persuasion
- Power and authority

Personal initiative
- A successful entrepreneurs takes the initiative and will always do
something without receiving instructions from anyone.
- They has proactive and diligent attitude in making his business
successful.
- It helps the entrepreneurs in seeking opportunities and exploring his
field of interest.
- An entrepreneurs who has strong personal initiative is able to act
immediately on available opportunities and chooses the best
strategy when they face problem.
- Initiative allows an entrepreneurs to be alert and proactive.
- They likes to take initiative in solving problems in situations where
no leadership exists.

Seized Opportunities
- A successful entrepreneur grabs or seizes opportunities
continuously to make sure that his business sustains for a long time
in the industry.
- They focuses, identifies and exploits new business opportunities,
and seizes unusual chances to obtain financing, equipment, land,
work space or assistance.
- The entrepreneurs maximizes his thinking capacity by finding
solutions to problems faced by the community.
- In identify current human needs, they will take action to develop,
modify, adapt or adopt the existing products to fulfill market demand.
- Entrepreneurs increase knowledge by getting ideas from
employees, customers and competitors, reading on related matters,
and identifying his skills, capabilities and self-potential.
Endurance

- Entrepreneurs has to face various barriers and problems before
achieving success,
- They needs to have great strength and courage within him. A
successful entrepreneurs is strong enough to face problems and
barriers courageously.
- A successful entrepreneurs will be brave to express his opinions
and ideas.
- They would never give up accomplishing his vision and tries hard to
deal with barriers that block his path to achieving success.
- A successful entrepreneurs will also be courageous even though he
has been declared unsuccessful.
Information Seekers

- A successful entrepreneurs is able to seek information by doing
research to obtain the information that he needs and by receiving
feedback from customers in order to provide a good product or
service that can gain customers satisfaction and acceptance.
- They consults experts and experienced persons, uses contact or
information network, and personally undertakes market research,
analysis or investigation to obtain useful information.
- Importance for entrepreneurs to make analysis on his market and
business progress.
- A successful entrepreneurs should have up-to-date and accurate
information.
- Information obtained will help him enhance his experience and
improve his achievement and business performance.
High Work Quality

- A successful entrepreneurs places care on quality and can be seen
as having the urge to sell or produce products of high quality.
- They states a desire to produce or sell a top quality product or
service.
- Always makes comparison of his work quality with those of others to
make sure his product always better.
- Not only doing a job but also doing it in the best way possible to
produce products of the best quality.
- High quality products ensure customer satisfaction and
simultaneously increase market share.
- Product of high quality will bring profitable returns to an
entrepreneurs as it ensures the faith of customers towards the
products.
- Therefore, a successful entrepreneur should make an effort to
develop high quality products or services in order to maintain
customers loyalty, commitment and satisfaction.



Commitment towards work agreements

- A successful entrepreneur devotes total commitment to the venture.
- This commitment helps entrepreneurs rectify mistakes and
overcome obstacles which threaten business operations.
- A successful entrepreneurs who has high level of commitment
towards work agreements can be seen in ;
o Willingness to sacrifice his personal interest in order to make the
market successful;
o Taking full responsibilities in completing a task;
o Willingness to help his own staff to performed the job and provide
satisfaction to customers, and
o Showing an attitude of care to satisfy customers, suppliers, and
other parties as agreed.
- This good attitude will gain the trust of others and help to improved
the entrepreneurs image which is key to his success.




Efficient

- A successful entrepreneur is oriented towards efficiency
and is always finding ways to produce product at lower
cost or within a shorter time period.
- When new idea emerges, the entrepreneurs always
takes into consideration the calculation of cost and profit.
- Uses business information and management methods to
improve his efficiency in business, which would help
decrease wastage and costs.

Systematic planning

- Planning is the most important aspect for an entrepreneur in
arranging business strategies to achieve business goal.
- A successful entrepreneurs practices time management in
performing systematic planning of his business.
- Systematic planning will lead to an increase in performance and
achieving business targets.
- This type of entrepreneurs usually move towards;
o Making plans, taking forwards steps, and dividing big task into
simpler and smaller task;
o Making plans to overcome anticipated obstacles;
o Making evaluations and choosing the best alternative for a specific
problem, and
o Using a systematic and logical approach to achieve business goals.

Creative Problem Solving

- A successful entrepreneurs has the capability of solving problems in
terms of searching for smart step to solve those problems as well as
looking and thinking of innovative new ideas or creative problem-
solving methods.
- Every entrepreneurs faces many uncertainties that might cause
problems to the business. The problems must be solved creatively.
- Action taken must solve the problem as well as enhance employee
loyalty towards the company.
Self Confidence
- A successful entrepreneurs who has confidence in himself;
o Believe in his skills and capabilities to achieve what they desired. They tends to be
optimistic about his chance of success;
o Express their feeling of confidence towards his capability in solving certain tasks and
challenges. He will be able to stand firm and overcome the problem of low self-
esteem when confronted with competition;
o Is able to make decision without hesitation or responds to challenges;
o Reads a lot and gathered experience in subjects outside his specialization, and
o Does not have fear of failure.

Assertion

- A successful entrepreneurs will be assertive in his
actions.
- They brave to give ideas or opinion to people and take
action even when he has face defiance from others.
Persuasion

- Successful entrepreneurs able to persuade his
customers to buy his products or services.
- They will be obtrusive in his own skills.
- In order to ensure that business deals are
smooth, he has to persuade many people who
have an impact on his business such as staff,
customers, suppliers and financial institutions.
Power and authority
- A successful entrepreneurs is also a leader, as a leader he will able
to influence his staff and industry that he involved in to make sure he
achieves his vision.
- 5 aspects influence that should take into consideration;
o Influence based on total control;
o Influence based on the power to impose penalty;
o Influence based on the power to give rewards;
o Influence based on the power of expertise, and
o Influence based on the power to show good examples.