CHAPTER 1 INTRODUCTION TO ENTREPRENEURSHIP. By: Engr. Muhammad Muizz Bin Mohd Nawawi
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1 CHAPTER 1 INTRODUCTION TO ENTREPRENEURSHIP By: Engr. Muhammad Muizz Bin Mohd Nawawi
2 DEFINITION OF ENTREPRENEURS The word "entrepreneur" comes from the French word, 'entreprendre', which means to undertake or try responsibility An entrepreneur is an individual who organizes, manages and assume the risk of a business (Kuratko and Hodgetts) An entrepreneur is an individual who creates a new business in the face of uncertainty for the purpose of achieving profit and growth by identifying and capitalizing opportunities and assembling the necessary resources to capitalize on the identified opportunies (Zimmerer and Scarborough)
3 ENTREPRENEURSHIP Entrepreneurship is the process of seeking business opportunities under conditions of risk. Entrepreneurship is ability, capabilities and tendency to perform the following activities: Identify business opportunities Manage a business effort which bring profit to the entrepreneur and the public. Obtain success and richness by fulfilling the society s needs. Take calculate risk Mange and utilize the factors of production to bring economical development and enhance social welfare.
4 Attitude Skills Knowledge High motivation Decision maker Finding and using information Belief in yourself Problem solving Identify and implement a project Initiative negotiate Law Responsible communication Managements The ability to handle uncertainties (risks taker) Creative thinking Accounting Determination and persistence Teamwork skills Values Mental and physical durability Management skills Business Information seeker Technical skills Culture
5 DIFFERENT CONCEPT OF ENTREPRENEURS AND SMALL BUSINESSMEN Traders are people who undertake the sale and purchase of goods or perform services activities with a view to profit Traders are people who engage in selling activities The objective is to achieve the dealer personally.
6 Businessmen Characteristic Buy goods for resale. Prices vary with the item purchased the resale price, usually higher Persuasion can manage the business well. It should be able to manage money, workers, goods and stores to be orderly and systematic. Not create their own items to sell, but buy goods from entrepreneurs to sell.
7 BUSINESSMEN A dealer is not necessarily an entrepreneur. ENTREPRENEUR An entrepreneur is also a dealer Actively engaged in the business of buying and selling. Always trying to increase profits Not impressed with the technological developments and changes Sell existing products in the market Involved in efforts to create their own products Concerned with the success and satisfaction, rather than purely profit. Following all the reforms to increase creativity. Introducing new products that can penetrate Competition as a common challenge Think just to solve everyday problems. Competition is a challenge that requires close scrutiny to survive Looking far ahead and thinking to enhance progress in the future. Concerned with short-term profits. Concerned about long-term profitability
8 Differences between an entrepreneur and a small businessman Characteristics Entrepreneur Small Businessman Time Unlimited Limited Nature of job Flexible Rigid in adapting to changes Decision-making Makes own decisions Follow decisions made by others Effort and commitment continuous Low Risk taker Moderate Low Goal Maximizes self potential by utilizing available opportunities Solely for profit maximization
9 Social responsibilities of entrepreneurs Social responsibilities means being concerned about people or society as a whole. Entrepreneur are entrusted with responsibility of improving the quality of human life. 1. Responsibility towards customers Establish a code of responsibility that sets the guidelines for product quality and customer relations. Monitor complaints from customers regarding the quality of the product or treatment received from employees. Follow up on the matter can then identify the necessary corrective action to be taken. Gather customer feedback via customer questionaires
10 2. Responsibilities towards society/ community Produce, create and improve products. Create choices through innovative and creative productions. Produce products of high quality. Always be sensitive to the needs of customers Fulfill the needs and wants of customers. Create more job opportunities Improve the lifestyle of the society
11 3. Responsibilities towards suppliers Strengthen goods relationship with suppliers. Pay any dues to suppliers at the agreed stipulated time. Share opinions and experiences to create new ideas 4. Responsibilities towards staff Always take care of the staff welfare. Give adequate wage to the workers Do not restrain and always provided guidance to staff Conduct courses and training to update staff with the latest information. Reward staff with bonuses, allowances and others benefits. Appreciate and recognize dedicated and highly ethical staff.
12 5. Responsibilities towards competitors Practice healthy competition with competitors Share ideas and opinions on ways to prepared and provided the best services to customers. Work together to produce and create products that can give the most benefits to the customers. Healthy competition among entrepreneurs will lead to more job opportunities for the community. 6. Responsibilities towards country Create job opportunities Assist improving the lifestyle of the society. Create more infrastructure facilities for the society Improve socio-economical aspects and increase national income.
13 COMPETENCY ENTREPRENEURSHIP Entrepreneurial competency means the ability or competence of a person to perform entrepreneurial functions effectively. owned by the practices of behavior results from the influence of one's life values, attitudes or internal pressure to do an outstanding job.
14 1. Initiative A person who is an individual initiative to create a job or task without ordered or forced. have a proactive attitude and strives to develop its business success. 2. See and seize opportunities Entrepreneurs who have the power to see and seize the opportunity to have the efficiency to find and identify business opportunities that exist able to seize opportunities both to expand the market, assistance to business interests and other. Competency is a key factor for success and business viability. This ability will help entrepreneurs start businesses and enable the business life-lasting.
15 3.Perseverance Attitude determination and perseverance can be seen through the action of entrepreneurs as follows: do not feel sick looking at ways to achieve without defeat. Always strive to overcome obstacles that may hinder the achievement 4. Searching for information Individual attitudes are able to search for information is: do their own research or survey to obtain information and feedback to provide goods or services to satisfy customers' access to specialist services for business development and market research to make its analysis Information and feedback obtained will be used to enhance the experience, improve performance, and business-led.
16 5.Emphasized the high quality of work Tendency to produce or sell products of high quality Always compare the quality of work produced with the quality of the work of others that are at par or better. Not merely to solve a task but will complete the task with excellence and quality. High quality work which can guarantee customer satisfaction
17 6. Commitment towards Work Agreement willingness to make personal sacrifices to complete a job to take full responsibility in resolving a job showing a concern for satisfying customers' needs always ensure that every promise made, especially with customers, suppliers and other parties met as agreed. 7. Oriented towards efficiency/efficient always find a way to do something with a lower cost or with a shorter time than normally always concerned about the estimated costs and benefits of an improvement, change, or an action. Business efficiency will increase profits and reduce wastage and cost. This will help business success
18 8.Systematic planning planning and arranging the steps and divide large tasks into smaller and easier make plans to overcome the expected value and choosing the best alternatives to an action taken in a systematic and logical approach to achieving goals. Entrepreneur of systematic planning can improve the performance and achievement of business goals
19 9. Creative Problem Solving find a smart steps to overcome the problem as best as possible to find and produce new ideas or innovative solutions The action taken will be able to solve problems and to create employee loyalty to the business. 10. Self Confidence a belief in the abilities and capabilities to get what they desired. expressed confidence in the ability to solve a task or meet a challenge. not afraid to try and not afraid to fail this attitude will inspire the confidence of others to entrepreneurs and business.
20 11. Assertion (Tegas) dare to voice their opinions or ideas directly to others willing to take action despite having to face opposition from other parties. The nature of entrepreneurs will be able to guarantee strict control of the organization well. 12. Convince Others / Persuasion personal skills and can show others the quality of information and experience. Entrepreneurs need to have one of the power source or combination of these resources as a strategic influence on customers, employees and the entire industry (stakeholders to the business, employees, customers, suppliers, financial institutions) and the markets affected by it.
21 13.Power and Authority tend to think of strategies that can influence others without deceit for a business goal. entrepreneurs must be able to influence the workers, and the venture industry in order to achieve his vision. The five aspects of influence that can be used; Influence on the absolute power Influence based on the power to punish Influence based on the power to give rewards Influence based on the expertise Influence based on the power to show good examples/ model
22 Successful entrepreneurs in Malaysia Tan Sri Syed Mokhtar Al-Bukhary Tan Sri dr. Jeffrey Cheah Harsukhlal Maganlal Kamdar
23 E-Business Also known with the term dotcom One a mechanism to help service providers / products expand the product their services. A method of electronic transactions in virtual space beyond the time. company can set up a virtual link and customers can visit at any time and where they are.
24 E.g., a seller of books, souvenirs, toys and sports equipment to set up outlets on the website as a virtual office. The ideal business approach and has the potential and space with that much discretion to continue to grow. Business activities are conducted through telecommunications networks involving the Internet. Began in the West since the early 1970s
25 The existence of electronic data exchange network between the company and cause the application of E- commerce business in rapidly growing in tahun1990an Malaysia. Receive e-commerce as the company changes Can redesign company's internal environment, whether through management implementation automatically.
26 The importance of E-commerce to Entrepreneur 1.Upgrade accessibility /access to product information 2.Provide more information to customers more accurately and quickly. 3.Provide important information to identify, match and make innovations in the product.4. 4.The service is fast, easy, secure & reliable. 5.Providing satisfaction to customer. 6.To provide greater satisfaction to customers
27 Marketing Communications as "Online" Direct marketing is a form of advertising that reaches its audience without using traditional formal channels of advertising, such as TV, newspapers or radio. Businesses communicate straight to the consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street advertising.
28 Direct Advertising is a sub-discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing. The first is that it sends its message directly to consumers, without the use of intervening commercial communication media.
29 The second characteristic is the core principle of successful advertising driving a specific "call to action." This aspect of direct marketing involves an emphasis on trackable, measurable, positive responses from consumers (known simply as "response" in the industry) regardless of medium. If the advertisement asks the prospect to take a specific action, for instance call a free phone number or visit a Web site, then the effort is considered to be direct response advertising.
30 Direct marketing is predominantly used by small to medium-size enterprises with limited advertising budgets that do not have a well-recognized brand message. A well-executed direct advertising campaign can offer a positive return on investment as the message is not hidden with overcomplicated branding. Instead, direct advertising is straight to the point; offers a product, service, or event; and explains how to get the offered product, service, or event.
31 Online Catalogue An online catalog might refer to: The retail product offerings of an online shopping service An electronic library catalogue Online shopping is the process whereby consumers directly buy goods or services from a seller in real-time, without an intermediary service, over the Internet. If an intermediary service is present the process is called electronic commerce.
32 An online shop, eshop, e-store, internet shop, webshop, webstore, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or in a shopping mall. The process is called Business-to-Consumer (B2C) online shopping. When a business buys from another business it is called Business-to-Business (B2B) online shopping. Both B2C and B2B online shopping are forms of e-commerce.
33 Public Relations Public relations can be defined as a management function that is continuous and planned where the organization will seek to obtain and maintain mutual understanding, sympathy and support from any of the parties concerned. This is done by assessing the public opinion of their organizations in order to connect and communicate policies, policies and regulations as well as achieved through planning and a more complete solution to common interests.
34 Objective Public Relations Policy aims to "ensure the best images are always protected and enhanced organization through understanding, acceptance, trust, confidence and cooperation obtained related services and quality services, efficiently and effectively in relation to the public."
35 END..
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