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CHAPTER 1CHAPTER 1CHAPTER 1CHAPTER 1

INTRODUCTION TO INTRODUCTION TO ENTREPRENEURSHIPENTREPRENEURSHIP

INTRODUCTION TO INTRODUCTION TO ENTREPRENEURSHIPENTREPRENEURSHIP

Historical Perspectives on Historical Perspectives on EntrepreneurshipEntrepreneurship

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Definition of entrepreneur and entrepreneurship:Definition of entrepreneur and entrepreneurship:              Based on functions view, Based on functions view, “entrepreneurs are individual “entrepreneurs are individual who actively form or lead their own businesses and nurture who actively form or lead their own businesses and nurture them for growth and prosperity.”them for growth and prosperity.”  The term of entrepreneur is a French word “The term of entrepreneur is a French word “entreprendreentreprendre”, ”, which means “which means “a person who undertake to do a job”-a person who undertake to do a job”-

(Richard Cantillon, 1755)(Richard Cantillon, 1755)

“ “Entrepreneurship is a process of creating and expanding Entrepreneurship is a process of creating and expanding business that collectively form a force for national business that collectively form a force for national development and societal prosperity.”development and societal prosperity.”

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ADAM SMITH (1776)ADAM SMITH (1776)

An entrepreneur is a person who acts as An entrepreneur is a person who acts as agent in transforming demand into supply.agent in transforming demand into supply.

JEAN BABTISTE SAY (1803)An entrepreneur is a person who shifts An entrepreneur is a person who shifts

resources from an area of low productivity to resources from an area of low productivity to high productivity.high productivity.

JOHN STUART MILL (1848)JOHN STUART MILL (1848)An entrepreneur is a prime mover in the An entrepreneur is a prime mover in the

private enterprise. The entrepreneur is the private enterprise. The entrepreneur is the fourth of production after land, labor and capitalfourth of production after land, labor and capital.

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CARL MENGER (1871)CARL MENGER (1871)The entrepreneur acts as an economics agent The entrepreneur acts as an economics agent

who transforms resources into products and services. who transforms resources into products and services.

The entrepreneur transforms and gives added valueThe entrepreneur transforms and gives added value..

JOSEPH ALOYSIUS SCHUMPETER JOSEPH ALOYSIUS SCHUMPETER (1934)(1934)

An entrepreneur is an innovator. The economy An entrepreneur is an innovator. The economy moves through leaps and bound and the prime mover moves through leaps and bound and the prime mover is the entrepreneur through the process of creative is the entrepreneur through the process of creative destruction.destruction.

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ALFRED MARSHALL (1936)ALFRED MARSHALL (1936)The process of entrepreneurship or business The process of entrepreneurship or business

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

IBNU KHALDUN (ABDUL RAHMAN IBNU KHALDUN (ABDUL RAHMAN MOHAMAD KHALDUN)MOHAMAD KHALDUN)

The entrepreneur is seen as a knowledgeable The entrepreneur is seen as a knowledgeable individual and is instrumental in the development of a individual and is instrumental in the development of a city-state where enterprise will emerge.city-state where enterprise will emerge.

Entrepreneur are Entrepreneur are “those individuals who discover market needs “those individuals who discover market needs and launch new firms to meet those needs.”and launch new firms to meet those needs.” (Justin G. (Justin G. Longenecker, Carlos W. More, J. William Petty, Lessy E. Palich)Longenecker, Carlos W. More, J. William Petty, Lessy E. Palich)

Entrepreneur areEntrepreneur are “one who creates a new business in the face “one who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the growth by identifying opportunities and assembling the necessary resources to capitalize on them.” necessary resources to capitalize on them.” (Thomas W. (Thomas W. Zimmerer, Norman M. Scarborough)Zimmerer, Norman M. Scarborough)

Entrepreneur as Entrepreneur as “the person who destroys the existing “the person who destroys the existing economic order by introducing new product and services, by economic order by introducing new product and services, by creating new forms of organization, or by exploiting new raw creating new forms of organization, or by exploiting new raw materials.” materials.” That person is most likely to accomplish this That person is most likely to accomplish this destruction by founding a new business by may also do it within an destruction by founding a new business by may also do it within an existing oneexisting one. . (Joseph Aloysius Schumpeter)(Joseph Aloysius Schumpeter)

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Stevenson & Jarillo-Mossi (1986) describe entrepreneurship as Stevenson & Jarillo-Mossi (1986) describe entrepreneurship as “the “the process of creating value by combining resources to exploit an process of creating value by combining resources to exploit an opportunity. From this view, we can ascertain that the opportunity. From this view, we can ascertain that the entrepreneur is the person who drives this process.”entrepreneur is the person who drives this process.”

““Entrepreneurship is the process of creating something different Entrepreneurship is the process of creating something different with value..assuming the accompanying financial, psychological with value..assuming the accompanying financial, psychological and social risks and receiving the resulting reward of monetary and social risks and receiving the resulting reward of monetary and personals satisfaction”..and personals satisfaction”..(Hisrich & Peters)(Hisrich & Peters)

““Entrepreneurship is considered an individual or organizational Entrepreneurship is considered an individual or organizational level behavioral phenomenon, or a process of emergence.”level behavioral phenomenon, or a process of emergence.” (Gartner et (Gartner et alal., 1992)., 1992)

““Entrepreneurship is the attempt to create value through Entrepreneurship is the attempt to create value through recognition of business opportunity, and through the recognition of business opportunity, and through the communicative and management skills to mobilise human, communicative and management skills to mobilise human, financial, and material resources necessary to bring a project to financial, and material resources necessary to bring a project to fruition”.fruition”. Thus, entrepreneurship is a process from idea generation Thus, entrepreneurship is a process from idea generation through to product or service realisation through risk management. through to product or service realisation through risk management. (Kao and Stevenson, 1984) (Kao and Stevenson, 1984)

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DAVID McCLELLANDDAVID McCLELLANDThe entrepreneur is a person with a high need for The entrepreneur is a person with a high need for

achievement. This need for achievement is directly achievement. This need for achievement is directly related to the process of entrepreneurship.related to the process of entrepreneurship.

Conclusion:Conclusion:

Entrepreneurship involves not only the process Entrepreneurship involves not only the process that leads to the setting up of a business entity but that leads to the setting up of a business entity but also the expansion and development of an on going also the expansion and development of an on going concern. The study of entrepreneurship is concerned concern. The study of entrepreneurship is concerned with the entrepreneurial behaviour,t he dynamics of with the entrepreneurial behaviour,t he dynamics of business set up and expansion and development.business set up and expansion and development.

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ENTREPRENEURIAL COMPETENCIESENTREPRENEURIAL COMPETENCIES

Definition:

“The key characteristics that should be possessed by successful entrepreneurs in order to perform Entrepreneurial Functions effectively”.

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McClelland and McBer (1985)McClelland and McBer (1985)

1. Initiative1. InitiativeThe entrepreneur should be able to take The entrepreneur should be able to take

actions that go beyond his job requirement and actions that go beyond his job requirement and to act faster. He is always ahead of others and to act faster. He is always ahead of others and and able to become a leader In the field ofand able to become a leader In the field of business.business.

Example:Example:Doing things before being asks or compelled by Doing things before being asks or compelled by a situation.a situation.

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2. Sees and Acts On Opportunities2. Sees and Acts On Opportunities

An entrepreneur always looks for and takes An entrepreneur always looks for and takes action on opportunities.action on opportunities.

Example:Example:

Sees and acts on new business opportunitiesSees and acts on new business opportunities..

3. Persistence3. PersistenceAn entrepreneur is able to make repeated An entrepreneur is able to make repeated

efforts or to take different actions to overcome an efforts or to take different actions to overcome an obstacle that get in the way of reaching goals.obstacle that get in the way of reaching goals.

Example:Example:

Take repeated or different actions to overcome and Take repeated or different actions to overcome and on obstacle.on obstacle.

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4. Information Seeking4. Information SeekingAble to take action on how to seek information to Able to take action on how to seek information to help achieve business objectives or clarify help achieve business objectives or clarify business problems.business problems.

Example:Example:

Does personal research on how to provide a Does personal research on how to provide a product or service.product or service.

5. Concern For High Quality of Work5. Concern For High Quality of WorkActs to do things that meet certain standards of Acts to do things that meet certain standards of excellence, which gives him greater satisfaction.excellence, which gives him greater satisfaction.

Example:Example:

States a desire to produce or sell a top or better States a desire to produce or sell a top or better quality product or service.quality product or service.

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6. Commitment to Work Contract6. Commitment to Work ContractAn entrepreneur places the highest priority on An entrepreneur places the highest priority on getting a job completed.getting a job completed.

Example:Example:

Makes personal sacrifice or expends extraordinary Makes personal sacrifice or expends extraordinary effort to complete a job.effort to complete a job.

7. Efficiency Orientation7. Efficiency OrientationA successful entrepreneur always finds way to do A successful entrepreneur always finds way to do things faster or with fewer resources or at a lower things faster or with fewer resources or at a lower cost.cost.

Example:Example:

Looks for or finds ways to do things faster or at Looks for or finds ways to do things faster or at least cost.least cost.

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8. Systematic Planning8. Systematic Planning

An entrepreneur develops and uses logical, An entrepreneur develops and uses logical, step-by-step plans to reach goals.step-by-step plans to reach goals.

Example:Example:

Plans by breaking a large task down into sub-tasks.Plans by breaking a large task down into sub-tasks.

9. Problem solving9. Problem solvingA successful entrepreneur identifies new and A successful entrepreneur identifies new and potentially unique ideas to achieve his goals.potentially unique ideas to achieve his goals.

Example:Example:

Switches to an alternative strategy to reach goal.Switches to an alternative strategy to reach goal.

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10. Selves-Confidence10. Selves-ConfidenceA successful entrepreneur has a strong belief in A successful entrepreneur has a strong belief in self and own abilities.self and own abilities.

Example:Example:

Expresses confidence in own ability to complete a Expresses confidence in own ability to complete a task or meet a challenge.task or meet a challenge.

11. Assertiveness11. AssertivenessAn entrepreneur confronts problems and issues An entrepreneur confronts problems and issues with others directly.with others directly.

Example:Example:

Confronts problems with others directly.Confronts problems with others directly.

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12. Persuasion12. PersuasionAn entrepreneur can successfully persuade or An entrepreneur can successfully persuade or influence others for mobilizing resources, influence others for mobilizing resources, obtaining inputs, organizing productions and obtaining inputs, organizing productions and selling his products or services.selling his products or services.

Example:Example:

Convinces customers to buy a product or services.Convinces customers to buy a product or services.

13. Use of Influence Strategies13. Use of Influence StrategiesAn entrepreneur is able to make use of influence An entrepreneur is able to make use of influence people to reach his business goals.people to reach his business goals.

Example:Example:

Acts to develop business contacts.Acts to develop business contacts.

TECHNOPRENEURSHIPTECHNOPRENEURSHIP

Technopreneurship is not a product but a process of Technopreneurship is not a product but a process of synthesis in engineering the future of a person, an synthesis in engineering the future of a person, an organization, a nation and the world. Strategic organization, a nation and the world. Strategic directions or decision-making processes are becoming directions or decision-making processes are becoming more demanding and complex. This requires more demanding and complex. This requires universities, and in site professional development universities, and in site professional development programs and training to produce strategic thinkers programs and training to produce strategic thinkers who will have skills to succeed in a rapidly changing who will have skills to succeed in a rapidly changing global environment.global environment.

- - Manuel CereijoManuel Cereijo

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TECHNOPRENEURTECHNOPRENEUR

Technopreneurs are entrepreneurs who are into the core Technopreneurs are entrepreneurs who are into the core businesses involving technology-based industries. They make businesses involving technology-based industries. They make use of technology to come out with new or innovative products use of technology to come out with new or innovative products through a process of commercialization. The businesses are through a process of commercialization. The businesses are generally marked with high growth potential and high leverage generally marked with high growth potential and high leverage of knowledge and intellectual property. Potential of knowledge and intellectual property. Potential Technopreneurs must be equipped with both technical and Technopreneurs must be equipped with both technical and business skills. Technopreneur Development and Innovation business skills. Technopreneur Development and Innovation Division (TDID) is the centre responsible for coordinating, Division (TDID) is the centre responsible for coordinating, promoting, managing and supervising all activities pertaining promoting, managing and supervising all activities pertaining to technopreneur development and innovationto technopreneur development and innovation

- UNiKL- UNiKL

1919

The Technopreneurs Association of Malaysia (“TeAM”) has The Technopreneurs Association of Malaysia (“TeAM”) has been formed by a group of Malaysian Technopreneurs to been formed by a group of Malaysian Technopreneurs to further the interests of Technopreneurs and to assist in the further the interests of Technopreneurs and to assist in the development of the Digital Economy in Malaysia.development of the Digital Economy in Malaysia.

Membership to TeAM is open to individual and where Membership to TeAM is open to individual and where applicable to companies incorporated in Malaysia. applicable to companies incorporated in Malaysia. Membership to TeAM is divided into 4 types namely, Membership to TeAM is divided into 4 types namely, Member, Associate Member, Honorary Member and Student Member, Associate Member, Honorary Member and Student Member.Member.

--Technepreneur s Association of MalaysiaTechnepreneur s Association of Malaysia

2020

In simple word, technopreneur means an In simple word, technopreneur means an entrepreneur involved in high technology.entrepreneur involved in high technology.

In general, the word technology is used to refer to the practical In general, the word technology is used to refer to the practical application of knowledge to the industry or as a framework of application of knowledge to the industry or as a framework of knowledge that is used to create the tools, to develop expertise knowledge that is used to create the tools, to develop expertise and materials in order to solve the existing problems. While and materials in order to solve the existing problems. While Entrepreneurship word comes from the word entrepreneur Entrepreneurship word comes from the word entrepreneur refers to a person or agency that created the business / refers to a person or agency that created the business / business with courage bear the risk and uncertainty to achieve business with courage bear the risk and uncertainty to achieve profitability and growth with the opportunity to identify how profitability and growth with the opportunity to identify how the existing (Zimmerer & Scarborough, 2008).the existing (Zimmerer & Scarborough, 2008).

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In the national discourse, the term refers In the national discourse, the term refers to to TechnopreneurshipTechnopreneurship more  more information on the utilization of  on the utilization of technology to the development of entrepreneurship. Unlike the technology to the development of entrepreneurship. Unlike the first definition above, the type of entrepreneurship in first definition above, the type of entrepreneurship in technopreneurship here is not limited in entrepreneurial technopreneurship here is not limited in entrepreneurial information technology, but all types of business, such as , but all types of business, such as business furniture, restaurant, super market or crafts, batik and business furniture, restaurant, super market or crafts, batik and silver. The use of information technology that is meant here is silver. The use of information technology that is meant here is the the Internet to market their products, such as in online trading  to market their products, such as in online trading (e-Commerce), the special (e-Commerce), the special Software to cut production costs, or  to cut production costs, or the use of web 2.0 technology as a means of advertising for the use of web 2.0 technology as a means of advertising for entrepreneurship. In the second, it is not clear which party can entrepreneurship. In the second, it is not clear which party can be called as a technopreneur. Here, the second will be used be called as a technopreneur. Here, the second will be used together.together.

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Technopreneurship in AsiaTechnopreneurship in AsiaIf we look to 2 -3 decades ago, then just call it Taiwan, South If we look to 2 -3 decades ago, then just call it Taiwan, South Korea and Singapore are still classified as Developing Korea and Singapore are still classified as Developing Countries. But now these countries have become countries Countries. But now these countries have become countries with advanced economy that is based on the technology with advanced economy that is based on the technology industry. Korea begins with the development of traditional industry. Korea begins with the development of traditional industries, followed by semiconductor industry. While industries, followed by semiconductor industry. While Singapore has a contract in the field of electronics companies Singapore has a contract in the field of electronics companies with the west, followed by the semiconductor manufacturers. with the west, followed by the semiconductor manufacturers. Taiwan famous accessories industry with a Personal Computer Taiwan famous accessories industry with a Personal Computer (PC). Make a secret that the development of these countries (PC). Make a secret that the development of these countries there is a progressive innovation.there is a progressive innovation.