INTRODUCTION TO

ENTREPRENEURSHIP

1
 Definition of Entrepreneurship:
Entrepreneurship involves not only the process that

leads to the setting up of a business

entity but also the expansion and
development of an on going concern. The
study of entrepreneurship is concerned with the
entrepreneurial behavior, the dynamics of business set
up and expansion and development.

2 Monday, June 17, 2024

Adam Smith (1776) - An entrepreneur is a person
who acts as agent in transforming demand into
supply.
Jean Babtiste Say (1803) - An entrepreneur is a
person who shifts resources from an area of low
productivity to high productivity.

3 Monday, June 17, 2024

John Stuart Mill (1848) - An entrepreneur is a
prime mover in the private enterprise. The
entrepreneur is the fourth factor of production
after land ,labor and capital.

Carl Menger (1871) - The entrepreneur acts as an

economic agent who transforms resources into
products and services. The entrepreneur
transforms and gives added value.

4 Monday, June 17, 2024

 The process of
Alfred Marshall (1936) -

entrepreneurship or business
development is incremental or
evolutionary . It evolves from sole
proprietorship to a public company.

5 Monday, June 17, 2024

 David McClelland - The entrepreneur is a
person with a high need for achievement.
This need for achievement is directly related
to the process of entrepreneurship.

6 Monday, June 17, 2024

DEFINITION OF ENTREPRENEUR
The word entrepreneur is derived from
the French word entreprendre which
means 'to undertake or to try'.[Richard
Cantallion 1775]

a common definition of an
entrepreneur is someone who
establishes a new entity to offer a new
or existing product or service into a
new or existing market, whether it is
for a profitable or non-profitable
outcome.
7 Monday, June 17, 2024
DEFINITION OF ENTREPRENEUR

entrepreneur is an individual who is able
An

to perceive an opportunity for a business

and create an organization to develop and
manage that business successfully.
An entrepreneur is an individual who
organizes, manages and assumes the risks
of a business (Kuratko & Hodgetts,2001)

8 Monday, June 17, 2024

 DEFINITION OF ENTREPRENEURSHIP
Entrepreneurship is the process
of seeking businesses
opportunities under conditions
of risk.
Entrepreneurship also refers to the
process of creating something new of
value by devoting the necessary time
and effort, assuming the
accompanying financial, physical
and social risks and receiving the
resulting rewards of monetary,
personal satisfaction and
independence.
9 Monday, June 17, 2024
  According to Yep Putih, entrepreneurship is the
ability, capability, and tendency to perform the
following activities :
i. Identify business opportunities
ii. Manage a business effort which brings profit to the
enterpreneur and the public
iii.Obtain success and richness by fulfilling the
society's needs.
iv. Take calculated risks
v. Manage & utilize the factors of production to bring
economical development and enhance social
welfare
v. Work hard and be prepared to make new changes
that can increase production quantity and quality from
time to time
10 Monday, June 17, 2024
 Differences between an entrepreneur and
a small businessman
Time
Nature of job
Decision making
Effort and commitment
Risk taker
Goal
11 Monday, June 17, 2024
 SMALL BUSINESSMAN VS ENTERPRENEUR

1. TIME
Small Business Entrepreneur

Spending time buying Unlimited time-

and selling product. studying how to
(Limited time) satisfy client and
always come out with
ideas on ways to
12 Monday, June 17, 2024
improve his products
 SMALL BUSINESSMAN VS ENTERPRENEUR

2. NATURE OF JOB
Small Business Entrepreneur

faces competition as the competitive

ordinary challenges market is a challenge
that needs to be
thoroughly in order to
13
survive in anMonday,
industry.
June 17, 2024
 SMALL BUSINESSMAN VS ENTERPRENEUR

3.DECISION MAKING
Small Business Entrepreneur
Follow the decision make own decisions and use
made by others and his creativity in producing
invests only in a tested and creating innovative
and proven market products and services that
can penetrate a market
which has not been tested
14 before. Monday, June 17, 2024
 SMALL BUSINESSMAN VS ENTERPRENEUR

4. EFFORT &
COMMITMENT
Small Business Entrepreneur
is not attracted to always keep himself
changes and updated with current and
technological future technological
breakthrough development to further
increase his creativity and
15 productivity. Monday, June 17, 2024
 The Roles &Social Responsibilities of Entrepreneur

 When you become entrepreneurs ..are you still responsible

to our community and to our country? In our desire to
maximize profits, are we going to cheat our customers,
exploit our employees, and dump our wastes into the air,
water and land? Many of our workers are underpaid. Our
environment is being destroyed or polluted.

Discuss the roles of entrepreneur towards

Customers, Society/community,
Suppliers, Staff, Competitors &
16
Country…… Monday, June 17, 2024
 The Roles and Social Responsibilities of
Entrepreneur toward:
 Customers - sell quality products at fair price.
 Society/community- job creation and environmental
observation.
 Suppliers- be fair with his suppliers by paying them on
time as agreed upon
 Staff- promote the welfare of his employees
 Competitors- observe business ethics with his
competitors
 Country- must pay the correct amount of taxes to the
17
government Monday, June 17, 2024
 COMPETENCIES OF
ENTERPRENEURS
1.Personal initiative 8. Systematic Planning
2. Seize opportunities 9.Creative Problem
3.Endurance Solving
4.Information-seeker 10.Self Confidence
5.High work quality 11.Assertion
6.Commitment towards12.Persuasion
work agreements 13. Power and
7.Efficient Authority
Monday, June 17, 2024 18
COMPETENCIES OF ENTERPRENEURS
1.Personal initiative
An Ent who has strong personal
initiative is able to act immediately on
available opportunities and choose best
strategy when he faces a problem.
Initiative allows an Ent to be alert and
proactive.
Monday, June 17, 2024 19
 COMPETENCIES OF ENTERPRENEURS
2. Seize Opportunities
Ent grabs or seize opportunities continuously to make sure
that his business sustains for a long time in the industry.
focuses, identifies and exploits business opportunities.
maximizes his thinking capacity by finding solutions to
probles faced by community.
Ent who is successful will be confident that there is a
business opportunity behind every problem.

Monday, June 17, 2024 20

In identifying current human needs, he
will take action to develop, modify, adapt
or adopt the existing products to fulfil
market demand.
The Ent increases his knowledge by
getting ideas from employees, customers
and competitors, reading on related
matters and identifying his skills,
capabilities and self potential.

Monday, June 17, 2024 21

3. Endurance
has to face various barriers and problems before
achieving success.
Needs to have great strength and courage within him.
Strong enough to face problems and barriers
courageously.
He would never give up accomplishing his vision
and tries to deal with barriers that block his path to
achieving success.
Faces various problems and risks :eg increase in the
cost of raw materials
Monday, June 17, 2024 22
4. Information Seeker
A successful Ent is able to seek information,
that is he has done some research to obtain
information and received feedback from
customers in order to provide a good product or
service that can gain customers satisfaction and
acceptance.
It is important for an Ent to make an analysis
on his market and business progress.
Monday, June 17, 2024 23
Ent-should have correct and up to
date information.
Info obtained will help him enhance
his experience and improve his
achievemEnt and business
performance.

Monday, June 17, 2024 24

5. High Work Quality
Ent always make comparison of his work quality
with those of others to make sure his products are
always better.
Ent makes sure that he is not only doing a job but
also doing it in the best way possible to produce
products of the best quality.
Ent can increase his reputation as well as his
business reputation-which are ways for him to
become successful.

Monday, June 17, 2024 25

 The continuous production of quality
products and services will determine the
customer's faithfulness, commitment and
satisfactions.
Products of high quality will bring
profitable returns to an Ent as it ensures
the faith of customers towards the
products.

26 Monday, June 17, 2024

6.Commitment towards Work Agreements
 a successful Ent devotes total commitment to the venture.
 this commitment help the Ent to rectify mistakes and overcome
obstacles which threaten business operations. Ent. who has a
high level of commitment towards work agreements can be
seen in :
 his willingness to sacrifice his personal interest in order to
make the market successful
 taking full resposibility in completing a task
 his willingness to help his own staff to perform the job and
provide satisfaction to customers.

Monday, June 17, 2024 27

7. Efficient
Ent is orient towards efficiency and is always
findings ways to produce products with lower
cost or within a shorter time period.
Use business information and management
methods to improve his efficiency in business,
which help decrease wastage and costs.

Monday, June 17, 2024 28

8. Systematic Planning
Planning is the most important aspect for an Ent in arranging
buss strategies to achieve buss goals.
Ent always focuses on the future and is sensitive towards any
change that occur. He will not be greedy or slow in reacting
when an oppor. emerge. If the Ent does not have expertise in
making decisions, he will consider sourcing skilled
expertise from outside the company.
Ent practices time managemEnt in performing syatematic
planning of his business and then lead to an increase in
performance and achieving business target.
Ent will not make long term plans such as 5-10 years as the
market size keeps changing.
Monday, June 17, 2024 29
 changes involving fixed capital based on five year plan
will bring damage to the company and its new products as
competition will grow in a long span.
This type of Ent would usually move towards :
making plans, taking forward steps, and dividing big tasks
into much simpler and smaller tasks.
- making evaluation and choosing the best
alternative for a spesific problem.
- taking a systematic and logical approach to achieve
business goals.

30 Monday, June 17, 2024

9. Creative Problem Solving
Ent has the capability of solving problems
in terms of searching for smart steps to
solve those problems as well as looking
and thinking of innovative new ideas or
creative problem solving methods.

Monday, June 17, 2024 31

 10. Self Confidence
Ent - confidence would help him succeed in his
venture.
Ent who has confidence in himself would :
-believe in his skills and capabilities to achieve what
he desires.
Express the 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.

32 Monday, June 17, 2024

- Be able to make decision without
hesitation or respond to challenges
- Read a lot and gather experience in
subjects outside his specialization.

Monday, June 17, 2024 33

11. Assertion
Ent will be assertive in his actions.
He is brave to give ideas or opinions to
people and to take action when he has to
face defiance from others.

Monday, June 17, 2024 34

12. Persuasion
Ent is persuasive and will be able to
persuade his customers to buy his
products or services.
He has to persuade many people who
have an impact on his business such as
staff, customers, suppliers and
financial institutions.

Monday, June 17, 2024 35

 13. Power and Authority
Ent will think of a strategy to influence customers to
buy his products or services without deceiving them in
order to reach his vision.
Ent is a leader and he will be able to influence his staff
and the industry that he is involved in to make sure he
achieves his vision.

36 Monday, June 17, 2024

 Thanks

37 Monday, June 17, 2024