ENTREPRENEURSHIP CONCEPTS

INTRODUCTION

What is on the web

Faces of Famous Malaysian

• His business interests range from sugarcane plantations (Perlis Plantations Bhd), sugar refineries, flour milling, animal feed, oil, mining, finance, hotels, properties, trading, freight and publishing.

• Biggest source of wealth is stake in Wilmar International, the world's largest listed palm oil company.

Tan Sri Robert Kuok Hock Nien

According to Forbes his net worth is estimated to be around $12.5 billion on July 2012, making him the richest person in Malaysia and Southeast Asia

Tan Sri T Ananda Krishnan• Currently, he has business

interests in media (Astro), satellite (MEASAT), oil and gas (Bumi Armada, Pexco), telecommunications (Maxis, Aircel).

• He owns stakes in Tanjong Public Limited Company, an investment holding company with subsidiaries involved in power generation (Powertek), gaming (Pan Malaysian Pools), leisure (Tropical Islands, TGV Cinemas) and property.

• Currently estimated to have a net worth of US$9.5 billion according to Forbes' July 2012 list of wealthiest people,

• making him the second wealthiest in Southeast Asia behind Robert Kuok, and number 89 in the world.

Tan Sri Syed Mokhtar Al-Bukhary• the richest Bumiputra

corporate figure in Malaysia.

• involvement in diversified business areas which include transportation and logistics, plantations, property development, defense and armory as well as engineering and power generation

• net worth estimated to be US$2.5 billion according to Forbes in July 2012, making him the 8th richest Malaysian.

Carlos Slim Helu & family• Chairman, Telmex • Age: 72 • Source of Wealth: Telecom,

Self-made • Residence: Mexico City,

Mexico • Country of Citizenship: Mexico • Education: Bachelor of Arts /

Science, Universidad Nacional Autonoma de Mexico

• retains the title of world's richest man for the third year in a row

• Estimated Net worth $US 69 B

Bill Gates

• Age: 56 • Source of Wealth:

Microsoft, Self-made • Residence: Medina, WA• Country of Citizenship:

United States • Education: Drop Out,

Harvard University

Net Worth $61 B As of March 2012

Steve Jobs

• Source of Wealth: Apple, Pixar, Self-made

• Country of Citizenship: United States

• Education: Drop Out, Reed College#110 Forbes Billionaires (2011)

Timothy TiahTAs the co-founder of Netccentric Pte Ltd, Timothy runs a multi-million ringgit business that includes Nuffnang, the world’s leading blog advertisement community with over one million bloggers worldwide. Netccentric then diversified its portfolio to include various internet-based companies including an e-commerce retailer and a video content creator, all of which are doing roaring businesses. 30-year-old Timothy has also been collecting one accolade after another, including being shortlisted for the prestigious Ernst & Young Entrepreneur of the Year recently.The RHB Excellence awards were conferred to Timothy Tiah for the Business category and David Lai for Talent category. All winners took home plaques, RHB Visa Signature cards, Johnnie Walker Blue Label Special Crystal Editions, BlackBerry Passport smartphones, Montblanc watch winding boxes, Bric’s trolley luggage and Kérastase hair care hampers.The Prestige 10th Top 40 Under 40 is co-organised with Signature Asia and is presented by RHB Bank. Top sponsors for the event are BMW, BlackBerry, Johnnie Walker Blue Label and Montblanc. The event is also supported by A Cut Above, By Terry, New Look Studio, Kerastase, Dr. Brandt and Bric’s.

Mac Chung Lynn Nando’s Malaysia & Singapore

The group CEO of Nandos is an architect by training but chose to venture into the food business when the opportunity arose. Under her stewardship, she has grown the South African restaurant brand into 59 outlets in Malaysia and nine in Singapore. Chung Lynn is unstoppable as she has expressed her interest in spreading her wings into the rest of Southeast Asia soon.

Dato’ Maznah Hamid

When an almost bankrupt security company was offered to her, Maznah and her husband, who were eager to change their ordinary life, took the plunge and sacrificed RM5,000 of their saving. Only then she realized that apart from managing the operation, she also had to be a manager, a clerk, an accountant and an a receptionist. To grow their business, they had to sell their house and moved to a slum that came without electricity. But she persevered. What a phenomenal woman malay entrepreneur she is. Today, it’s difficult to find someone who has never heard of Securiforce, a company which now been securing transportation of money, jewelry, VIPs and what not. She has now grown to venture in many other industries such as the hospitality, training, healthcare and so on. Securiforce has also expanded its logistics business in Singapore, Thailand, Korea, China, Turkey and Germany.

Datuk Mokhzani Mahathir

Mokhzani is the second son of Former Prime Minister of Malaysia Tun Dr. Mahathir Mohamad. He began his career as a Wellsite Operations Engineer with Sarawak Shell Berhad in 1987. Not following his father’s political footsteps after having played parts of his life in the United Malays National Organization (UMNO), he ventured to a more challenging entrepreneurial life. He later joined Tongkah Holdings Berhad in 1989 and was appointed as the Group Managing Director, a post he held till 2001. He was also the Chairman and Group CEO of Pantai Holdings Berhad till 2001. He now sits on the Board of Opcom Holdings Berhad, Sime Darby Auto Performance Sdn Bhd, KCSB and Several private limited companies. He is also the Chairman of Sepang International Circuit Sdn Bhd, a post he had held since 2003. Mokhzani Mahatir is now 15th richest in Malaysia, valued at US$980 million.

Datuk Wan Mohammad Sani Salleh

Wan Mohammad Sani Salleh is known among the young malay entrepreneurs as a great success due to his persistence of being a self made millionaire. He runs a network of buses under a company named Sani United Sdn Bhd. At age 35, he has received many awards such as the young entrepreneurs award from the Association of Young Malay Traders and Entrepreneurs and often referred to as an new generation icon

Raja Dato Sri’ Eleena Azlan Shah

Another woman malay entrepreneur that has made it well into the predominantly male-dominated career path. Eleena Azlan Shah, daughter of reigning Sultan of Perak, is a partner in her own law firm (Messrs Raja Eleena, Siew Ang & Associates in 1987, of which she is presently a senior partner) and a director of Gamuda, infrastructure, construction and property group that is 6% owned by her family. Company among biggest contractors for Malaysia’s transportation mega projects, including the $2.7 billion in tunnels for Kuala Lumpur’s mass transit rail system and a $2.5 billion upgrade of a 329-kilometer national railway. She is now 41st richest in Malaysia with a networth of US$ 200 million.

Christopher Tock

An Imperial College London graduate and former investment banker, Christopher Tock saw success at the early age of 26 when he used his entrepreneurial skills to set up foundations for social benefit. Tock has made a name for himself as executive director of EYE Project Management, which became one of Malaysia’s earliest award-winning social businesses with the purpose to reduce unemployment among youths. He also leads a social media consulting agency, Socialgrooves.com, which takes social media advertising to the next level through content marketing. An avid blogger, Tock is known as one of Malaysia’s most outspoken social entrepreneur and has also bagged several awards including the Prestige Malaysia Top 40 Under 40 Awards in 2012 and the Arthur Guinness Fund - British Council Social Enterprise Award in 2013.

Irfan Khairi

A millionaire who has achieved his wealth at the age of 25, Irfan Khairi firmly believes that the mind-set is the key to building wealth. Irfan is a UK graduate who started his career abroad as a multimedia designer and internet consultant. Using his skills, knowledge and passion in e-commerce and the internet, Irfan spent several years from 1999 on internet businesses that landed him profits to the tune of millions within three years. Today, apart from being an internet expert, he is an avid speaker, top selling book author, and TV and radio personality. He also established Irfan Khairi Sdn Bhd which focuses on changing people’s lives towards highly profitable living.

– What they do?– Characteristics?

Entrepreneurship & entrepreneurs?

DEFINITIONS OF AN ENTREPRENEUR & ENTREPRENEURSHIP

And the list of the definitions could go on and on and on…the list is not exhaustive…it can be as many as the entrepreneurs!!!!

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EntrepreneurshipMalaysia:“Entrepreneurship is a process of creating and expanding

businesses that collectively form a force for national development and societal prosperity”.

• setting up AND expansion and development of a business entity

Kuratko & Hodgetts (2014) • …a dynamic process of vision, change and creation…requires an

application of energy and passion toward the creation an implementation of new ideas and creative solutions…”

• essential ingredient:– Willingness to take calculated risks: time, equity or career– Ability to formulate an effective venture team– Creative skill to marshal needed resources– Fundamental skill of building solid business plan, and– Vision to recognise opportunity where others see chaos, contradiction

and confusion.

Entrepreneurship

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entreprendre = “to undertake”Someone who undertakes the risk of starting a small

business.

Scarborough & Zimmerer “…a person who creates a new business in the face of uncertainty

for the purpose of achieving profit & growth by identifying opportunities and assembling the necessary resources to capitalise on them…”

Entrepreneurs

@ 2014 Zaidibahari FMUTM Hak cipta terpelihara

@ 2007 Zaidibahari FPPSMUTMHak cipta terpelihara 26

entreprendre = “to undertake”Someone who undertakes the risk of starting a

small business.

MEDEC (2004)

“Individuals who are actively form or lead their own businesses and nurture them for growth and prosperity”

Entrepreneurs

Initiator

Converter

Imitator

Strategist

Opportunist

Risk Taker

Business Setter

Innovator

Prime Mover

Economic Agent

High Achieve

r

Energizer

Entrepreneurship is the process by which individuals pursue opportunities without regard to the resources they currently control.

The essence of entrepreneurial behavior is identifying opportunities and putting useful ideas into practice.

The set of tasks called for by this behavior can be accomplished by either an individual or a group and typically requires creativity, drive, and a willingness to take risks.

Key Elements

Opportunity

OrganisationResources

The entrepreneur

focusfit

configuration

BuildsManages

AttractsCombines

RecognisesEvaluatesExploits

Environment Environment

Environment

Why Be an Entrepreneur?

Control over CompensationSalary, Wage, Dividend &

Commission

Control over time

Fulfillment Creation / Ownership

Control over Working Conditions

THEORIES & CONCEPTS ON ENTREPRENEURSHIP

• Adam Smith (1776) - An entrepreneur is a person who acts as agent in transforming demand into supply.

• Carl Menger (1871) - The entrepreneur acts as an economic agent who transforms resources into products and services. The entrepreneur transforms and gives added value.

• Joseph Aloysius Schumpeter (1934) - An entrepreneur is an innovator. The economy moves through leaps and bounds and the prime mover is the entrepreneur through the process of creative destruction.

• Alfred Marshall (1936) - The process of entrepreneurship or business development is incremental or evolutionary . It evolves from sole proprietorship to a public company.

• Ibnu Khaldun (Abdul Rahman Mohamed Khaldun) - The entrepreneur is seen as a knowledgeable individual and is instrumental in the development of a city-state where enterprise will emerge.

• 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.

Entrepreneurs Add Value to Scarce Resources

All resources (wood, coal, oil, etc.) that cost money are “scarce.”

Entrepreneurs add value to scarce resources by shifting them from areas of lower to higher productivity.

The Economic Questions

An economy is a country’s financial structure. It is the system that produces and distributes wealth.

What should be produced? When will it be produced? How will it be produced? Who will produce it? Who gets to have what is produced?

Costs and Benefits of Entrepreneurship

Costs Business failure Obstacles Loneliness Financial Insecurity Long Hours/Hard Work

Benefits Independence Satisfaction Financial Reward Self-Esteem Contribution to

Society

Entrepreneurship development in Malaysia

• Entrepreneurship has existed in Malaysia since the interaction of Malacca with foreign traders.

• When the British colonized in Malay Peninsular, they practiced the ‘divide and rule’ system :Malays – engaged in administration and agricultureChinese – engaged in mining and businessIndians – engaged in rubber plantations

• After independence, the Malaysian government has been focusing on the field of entrepreneurship until today.

• Several agencies established to manage and promote the growth of entrepreneurship are SME Corp, TEKUN, MARA, PUNB, MTDC and etc.

• Others: The New Economic Policy (1971-1990), The National Development Policy (1990 – 2000), Vision 2020

Entrepreneurship development in Malaysia

Islamic Entrepreneurship?

PRINCIPLES OF ISLAMIC ENTREPRENEURSHIP

Integrated Human Nature Motivation Ibadah Position of Business and Entrepreneurship System Guidelines Exemplary Conducts

INTEGRATION

Islam is a complete way of life. There is no separation between business and religion. Islam has its own entrepreneurship culture.

HUMAN NATUREBy virtue of the human nature, the person must firstly be a Muslim, then an entrepreneur. He has the responsibility to perform ‘ibadah’ and be a ‘khalifah’. Muslim entrepreneur should search for God’s blessings above all other factors. A Muslim entrepreneur perform business not solely for profit, but above all, to fulfill the ‘fardhu kifayah’.

MOTIVATION

The successful path and means for achieving success for entrepreneurs are unique. Success in Islam is not merely measured by the end result, but also the means and ways of achieving them.

The pursuit of wealth must be accompanied by intention, means, management and usage as stipulated by Islam

Success according to Al-Qurtubi

Halal (Rightful means of living) Qanaah (Satisfying) Taufiq (Guidance) Sa’adah (Tranquility/Happy) Jannah (Heaven)

BUSINESS AS IBADAH• Muslim entrepreneurs involvement in business is to fulfill an

obligation known as “fardhu kifayah”• Fardhu kifayah~ Unless and until there is an entrepreneur in a

community, the entire community is deemed to be sinful.• Muslim entrepreneurs bear the responsibility to provide

goods and services primarily to the Muslim community and to others

POSSESSION OF WEALTH

Allah s.w.t is the absolute owner of wealth

Allah created wealth in abundance and sufficient for all

Wealth is created for mankind

Wealth is entrusted to mankind

Islamic Economic System Islamic entrepreneurship is part of the framework of the

Islamic Economic System. Islamic economic system involves:

Islamic bankingIslamic insurance (Takaful)Islamic capital markets

Islamic economic system is based on Islamic jurisprudence.

GUIDELINES

Guidelines for Islamic

Entrepreneurship activities are

wide and comprehensive.

Entrepreneurial Ethics Avoid malicious behavior Avoid squandering (elakkan

membazir) Avoid stinginess (elakkan

kedekut) Pay zakat and alms (sedekah) Be trustworthy Pray consistently Tawakkal Patience Qanaah

Prevent laziness Eradicate fear/shyness Search for legitimate ventures Avoid unlawful sources of

income Show gratitude and

thankfulness Grow and develop wealth Diversify business ventures Avoid greed

Exemplary ConductsBusiness is secondary to the call of jihad (crusade)Never abuse power or influence for self-interestPrudence in accumulating wealthLeadership qualities in all aspectsPractice moderate way of life