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INTRODUCTION TO
ENTREPRENEURSHIP
CHAPTER OBJECTIVE
Understand the history and origins of entrepreneurship from the various
scope.
Understand the definition of entrepreneurs and entrepreneurship from
different perspectives and well-known business leaders.
Understand the importance of entrepreneurial activity in our daily lives
Provide definition of who is regarded as entrepreneurs with specific
features
Provide definition of who is regarded as entrepreneurs in accordance with
Islamic perspective.
Introduction
Entrepreneurs and entrepreneurship are among the terms that are often
publicize by people since ancient times.
The term was brought to the meaning or definition based on various areas
or understanding by the individual.
ENTREPREPRENEURIAL CONCEPT
None of the standard and universal definition of entrepreneurship.
Derived from the French language, entreprendre, meaning assume duties
or attempt.
The word entrepreneur is popular among the Malaysian society is in the
middle of the 1970s.
Entrepreneurs are individuals who are develop a enterprise and the
businessman is a person who run a business.
Generally, entrepreneurs can be defined as a person who operates a
business that is successful with a profit motive in addition to adopting a
strategic practices to succeed
ENTREPREPRENEURIAL CONCEPT
Richard Cantillon, an economist from France mixed Irish considered by
Schumpeter (1934) as the first who introduce the concept of
entrepreneurship.
A person who organizes & manages a business undertaking, assuming
the risk for the sake of profit. (Websters Dictionary)
Individuals who purchase or inherit an existing business with the intention
of expanding it (Hull, Bosley & Udel ,1980).
Entrepreneurs are people who have the ability to see & evaluate business
opportunities, to gather the necessary resources & take advantage of
them, and to initiate appropriate action to ensure success (Meredith,
Nelson & Neck,1982)
ENTREPREPRENEURIAL CONCEPT
Sexton and Bowman-Upton (1991):
The process of identifying market opportunities, develop the resources to
achieve its objectives and further action needs to exploit resources for
personal gain in the long term.
Kao (1995)
A process of creating something new (creative) and different (innovative)
for the purpose of creating wealth for individuals and add value to the
community and the entrepreneurs are people who through the process of
wealth creation and value added through the incubation of ideas,
coordinating
resources
and
implement.
ENTREPREPRENEURIAL CONCEPT
Coulter (2000)
A process in which individuals or groups of individuals to use the efforts
and intermediaries to look for opportunities to create value and growth
through meeting the needs and requirements. It should be through
innovative and unique no matter what source control is used.
Entrepreneur is someone who creates and operates an active business.
Hisrich and Peters (2002)
The process of creating something new added value and business needs
and time, assuming the financial, and social risks as well as receiving
awards in the form of money and personal satisfaction and independence.
While entrepreneurs are inventors who revolutionized by the discovery of
the source of the latest trend or a new outlet, new industrial organization
or acquisition of certain innovative activities
ENTREPREPRENEURIAL CONCEPT
Kuratko and Hodgetts (2004)
The process of innovation and new business creation through the four dimensions
such as individual, organization, environment and processes supported by a
network of co-government, and educational institutions.
Uniqueness
E/ship definition
Development
Profit/non-profit
Value creation
Innovation
Organisation
creation
Historical Development of
Entrepreneurship
Early in 18th century, French Economist, Richard
Cantillon, developed one of the early theory of an
entrepreneur.
His work Essai sur la de commerce en general
published in 1755; observed merchants, farmers,
craftsmen and other sole proprietors buy at a certain
price & sell at uncertain, therefore operating at a risk.
Historical Development of
Entrepreneurship
French Economist, Baudeau (1730-1790):
A sense an entrepreneur as an innovator. Entrepreneur as a person who invents, modify
and applies new techniques in order to reduce cost and raise profit. He also identified
ability & intelligence as qualities needed to achieve success.
Historical Development of
Entrepreneurship
Schumpeter- entrepreneurs role is to change econ. status quo through
innovation.
Innovation is the key to entrepreneurship,
The key role of the entrepreneurs is to bring innovation in the marketplace.
In doing so, they create new demand, destroying existing market &
creating new ones.
Historical Development of
Entrepreneurship: Schumpeter
Innovation may result in: The creation of a new product or alteration in its quality
The development of a new method of production
The opening of a new market
The capturing of a new source of supply
Formation of new biz organizations
Historical Development of
Entrepreneurship
Rotter (1966):
Historical Development of
Entrepreneurship
Peter Drucker (1964):
Continue
Schultz (1980): ( a pioneer of human capital theory)
In a dynamic economy, human attitudes, behaviours, skills &
knowledge are important elements to create wealth & good values.
Carson (1982):
Entrepreneur is someone who is good at making decisions, good
at utilising scarce resources & not everyone can be entrepreneur.
Entrepreneur must proficient in all aspects of decision making.
The possession of imagination and foresight as an added
ADVANTAGE.
Continue.
Kets de Vries (1996) :
Entrepreneur as creator of risk than a taker, since
he often use someone elses capital.
However, even if the entrepreneur does not bear
most of financial risk in business, at an early stage
exposed to a considerable amount of social and
psychological risks (when the risk of failure is high
at start-up stage).
Bolton & Thompson: See entrepreneur as an
individual who habitually creates & innovates to
build s/thing of values from opportunity he has
identified.
Entrepreneurship from
Islamic Perspectives:
Definition
Entrepreneurship can be defined as any business activities carried out
by the individual in order to produce product or services in accordance to
syariah (Islamic law)
The concept of syumul (integrated; achieving success in this world as
well as achieving success thereafter).
Business activity is also a religious activity. This means entrepreneurship
is not separated or isolated from the life thereafter (akhirat) where people
will be judged rewarded or punished.
Therefore, entrepreneurship falls within the system of Islam (Islamic faith,
law, moral & ethics).
Conclusion
The concept of entrepreneur and entrepreneurship to bring a definition and a very
broad perspective.
The concept of entrepreneurship and entrepreneurs are a vast field of
interpretation according to different perspectives and views of business leaders.