TOPIC 1

INTRODUCTION TO ENTREPRENEURSHIP

1.1 The Evolution Of Entrepreneurship

The word entrepreneur originates from the

French word, entreprendre, which means "to undertake." In a business context, it means to start a business.

THE EVOLUTION OF ENTREPRENEURSHIP

The Earliest Period -The capitalist was a

passive risk bearer. The merchant-adventurer took the active role in trading, bearing all the physical and emotional risks. Once the merchant adventurer had successfully sold the goods, the profits would be divided between the capitalist and the merchant-adventurer.
The Middle Ages -During this period, the term entrepreneur was to describe both an actor and a person who was in charge of and managed large production projects

 The 17th Century -In this century, there was a connection between risks and entrepreneurship.

The entrepreneur was a person who entered into contractual arrangement with the government to perform a service or to supply stipulated products 18th Century -In the 18th century, the entrepreneur was differentiated from the capital provider. This happened because of the industrialization that occurred throughout the world. Many of the inventions developed during this time were reactions to the changing world

 19th and 20th Centuries -In the late 19th

and 20th centuries, entrepreneurs were not frequently distinguished from managers. In the middle of the 20th century, the notion of an entrepreneur as an innovator was established first century are considered the heroes of free enterprise. Many of them have used innovation and creativity to build multimillion-dollar enterprises from fledging businesses

21st Century -Entrepreneurs in the twenty-

Concepts Of Entrepreneurship
4 basic aspects of entrepreneurship according to Histrich & Peter (1998);
i. Creation process ii. Requires the devotion of necessary time & effort iii. Assuming necessary risks financial, psychological & social areas iv. Involves the reward most important of these rewards is independence, personal satisfaction & monetary reward (profit)

1.2.2 Who are Entrepreneurs?

Scarborough & Zimmerer (1998) person

who creates a new business in the face of uncertainty for the purpose of achieving profit and growth
Kuratko & Hodgetts (2004) who undertakes to organise, manage & assume the risks of

the business

THE IMPORTANCE OF ENTREPRENEURSHIP

It is a catalyst for economic change and growth
The role of entrepreneurship in

economic development involves more than just increasing per capita output and income. It involves initiating and constituting change in the structure of business and society

Continue
Entrepreneurship, through its creativity and innovation process produces new

products and services to fulfill human needs

Entrepreneurship helps to improve the lives of millions of people through the new products and services they bring to the market

1.4 The 10 Myths Of Entrepreneurship

Myths
1. Entrepreneurs are doers not thinkers

Facts
Actually entrepreneurs are person who plan their moves carefully and they also have other alternatives if their plan fail. This shows that entrepreneurs are both thinkers & doers Research has proven that entrepreneurship can be taught & studied

2. Entrepreneurs are born not made

3. Entrepreneurs are always inventors

Example, Ray Kroc did not invent the fast food franchise but his idea made McDonalds the largest fast food
No longer considered a misfit. They are now viewed as professionals

4. Entrepreneurs are academic & social misfits

5. Entrepreneurs must fit the Profile

Many successful entrepreneurs today did not have all the profile of the successful entrepreneur when they started their venture
Money is a resources but not an end in itself Luck happens when preparation meets opportunity Too much planning & evaluation lead to constant problems this statement is not true. The key factors to success are detailed planning & preparation Failures can teach many lesson to entrepreneurs & often lead to future success. Entrepreneurs usually working on moderate & calculated risks

6. All entrepreneurs need is money

7. All entrepreneurs need is luck

8. Ignorance is bliss for entrepreneurs

9. Entrepreneurs seek success but experience high failure rates 10. Entrepreneurs are extreme risktakers

ENTREPRENEURSHIP DEVELOPMENT IN MALAYSIA

Entrepreneurship has existed in Malaysia

(Malaya) since the interaction of Malacca with foreign traders when the British colonized the Malay Peninsular, they changed the structure of the society and practiced the divide and rule system in which the Malays were engaged in administration and agriculture, the Chinese were engaged in mining and business, and the Indians were engaged in rubber plantations As a result of this system, the Chinese society was far ahead in business compared to the Malays and Indians.

 After independence, the Malaysian Government realized the importance of entrepreneurship to individuals, society

and the country, and how it contributes to the nations prosperity.

Since then, the government has been focusing on the field of entrepreneurship until today. The New Economic Policy (1971-1990), the National Development Policy (1990-2000) and Vision 2020, all encourage and support entrepreneurship development in Malaysia.