INTRODUCTION TO ENTREPRENEURSHIP WEEK 1 INTRODUCTION TO ENTREPRENEURSHIP 11/17/2018

At the end of this topic student are given the following competencies: Learning Outcomes At the end of this topic student are given the following competencies: Understanding the concept of entrepreneurship and entrepreneur Identifying characteristics of successful entrepreneurs Comparison between entrepreneur and non-entrepreneur Analyzing oneself as preparation to be entrepreneur. 11/17/2018

Contents Definition/concept of entrepreneurship and entrepreneur Why become an entrepreneur? Characteristics of successful entrepreneur Advantages/disadvantages of entrepreneurship 11/17/2018

The World of the Entrepreneur Every year U.S. entrepreneurs launch 550,000 new businesses. Entrepreneurial spirit - the most significant economic development in recent history. GEM study: 18.7% of adult population in the U.S. is actively involved in trying to start a new business. 11/17/2018 Ch. 1: The Foundations of Entrepreneurship 1 - 4

The World of the Entrepreneur Global Entrepreneurship Monitor (GEM) study reports: Men are twice as likely to start a business as women. Most entrepreneurs turn to family members and friends for capital. Entrepreneurs are most likely to launch businesses when they are between the ages of 25 and 44. 11/17/2018 Ch. 1: The Foundations of Entrepreneurship 1 - 5

Entrepreneurship: is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence. 11/17/2018

ENTREPRENEURSHIP A firm that operates and implements combinations of new activities such as product development, market research, sourcing materials, manufacturing and so on (Shumpeter, 1934) 11/17/2018

Who is an Entrepreneur? Someone who engages in entrepreneurship who organizes, manages and assumes the risks of a business or enterprise Individuals who conceive new business opportunities and take on the risks required to convert ideas into reality 11/17/2018 Ch. 1: The Foundations of Entrepreneurship 1 - 8

Who is an Entrepreneur? Someone who actually search for change, respond to it and exploits change as an opportunity 11/17/2018 Ch. 1: The Foundations of Entrepreneurship 1 - 9

WHO ARE THE ENTREPRENEURS? Paradigm shifters, innovators and opportunists Key change catalysts and agents Wealth and employment creators Economic engine drivers Key actors of the Malaysian Economy Entrepreneurs are made and not born You can be the entrepreneur - if you have what it takes People who like to be their own boss People who has experienced a “social disruption”? 11/17/2018

WHY BECOME ENTREPRENEURS? How people become entrepreneur ? – by design and default. To be own boss Pursue their own ideas Realize financial rewards 11/17/2018

To be own boss Create your own destiny Make a difference Reach your full potential Reap impressive profits Contribute to society and to be recognized for your efforts Do what you enjoy and to have fun at 11/17/2018

Characteristics of successful entrepreneur (Some examples) High initiative Can see opportunity Persistence Searching for information Concern for quality of work Efficient High commitment Systematic planner Creative in solving problems Self-Confident Good business strategy 11/17/2018

what can you say about the characteristics of following individuals? Datuk Tony Fernandez Bill Gates Tan Sri Syed Mukhtar Albukhari Tan Sri Dato' Sri Dr. Teh Hong Piow Abg Abu Irfan Khairi 11/17/2018

Advantages of entrepreneurship Autonomy – self control Personnel satisfaction and challenge Wealth creation – gain more income 11/17/2018

Disadvantages of entrepreneur Uncertainty of income Risk - losing your entire investment Long hours and hard work Lower quality of life until the business gets established High levels of stress Complete responsibility 11/17/2018

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Contribution of entrepreneurs Developing new markets Discovering new source of materials Mobilizing capital resources Introducing new technology Creating employment 11/17/2018

What is your opinions of these statements? Entrepreneurs are born, not made Entrepreneurs are gambler Entrepreneurs are motivated by money Entrepreneurs should be young and energetic 11/17/2018