T o p ic Introduction to

Entrepreneurship
2
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Explain the definition of an entrepreneur;
2. Discuss the role of an entrepreneur;
3. Identify the characteristics of successful entrepreneurs; and
4. Describe the various agencies that support entrepreneurs.

INTRODUCTION
All over the country, entrepreneurs are increasingly creating new ideas, products
and improving services including child care. The growth of child care services
will certainly make the life of many working parents easier.

Child care service is unique. Although it is ultimately aimed at generating

profits, the process of caring for young learners stepping into the world of formal
education is highly challenging. The variety and quality of the services offered
may vary. A service provider may merely act as a good babysitter. On the other
hand, an enterprising child care provider can extend its services in ensuring that
all learners under its care are carefully nurtured into independent and holistic
individuals.

The programme provided, teachers hired and facilities utilised all ensure the
extent to which a child is nurtured. The passion with which the entrepreneur
manages his business will determine the uniqueness of the service provided. It is
extremely important for child care providers to understand and have sufficient
information regarding entrepreneurial processes to maximise chances for
success.
 TOPIC 2 INTRODUCTION TO ENTREPRENEURSHIP ! 17

This topic is aimed at helping you to understand the general concept of

entrepreneurship. It explores the characteristics needed to make an entrepreneur
successful. It should be noted that the entrepreneurial process of providing child
care must be supported by relevant agencies. The role of these agencies is also
discussed to help learners comprehend the overall establishment and
management of a child care business.

ACTIVITY 2.1
1. Why do you think entrepreneurship is important in child care
services?
2. It is generally agreed that entrepreneurs encourage innovation. Do
you agree with this statement? Why?

2.1 ENTREPRENEURSHIP
An entrepreneur is defined as someone who ventures into a new business and
progressively develops the business. An entrepreneur is able to take risks.
Entrepreneurship, on the other hand, refers to the process by which
opportunities are pursued.

There are many reasons why one would choose to become an entrepreneur. The
reasons are as follows:
(a) To be his own boss;
(b) To pursue his own dreams; and
(c) To realise financial rewards.

Entrepreneurs play an important role in any economy. They are key players in
the provision of innovative products and services. They are important for the
following reasons:
(a) They encourage innovation as they bring new products and services to the
market.
(b) Entrepreneurship has helped in increasing the number of women, seniors
and young people actively involved in this process.
(c) Entrepreneurship has had a significant impact on economic stability and
strength because entrepreneurs help create jobs. Entrepreneurship also
encourages and improves our ability to embrace globalisation.
18 TOPIC 2 INTRODUCTION TO ENTREPRENEURSHIP

(d) Entrepreneurship has had a dramatic impact on society. New products and
services have helped ease everyday living. The creation of new products
and services makes people more productive at work and improves their
health.
(e) Entrepreneurship has helped create business opportunities for product
dealers and wholesalers.

SELF-CHECK 2.1
1. Why does anyone choose to become an entrepreneur?
2. Why does an entrepreneur play an important role in the economy?

2.2 CHARACTERISTICS OF SUCCESSFUL

ENTREPRENEURS
What makes a successful entrepreneur? This question has been asked time and
time again. In order to be a successful entrepreneur, one needs to have certain
unique qualities and characteristics. These qualities and characteristics will
determine the success of the business venture. Figure 2.1 shows the
characteristics that make an entrepreneur successful.

Figure 2.1: Characteristics of successful entrepreneur

 TOPIC 2 INTRODUCTION TO ENTREPRENEURSHIP ! 19

2.2.1 Passion/Love for the Business

In order to proceed with a new business idea, an entrepreneur must strongly believe
that the business will positively influence peoples lives. The product or service that
he provides will make a difference in peoples lives. It will make the world a better
place to live in.

Passion motivates entrepreneurs. In child care for example, it is well known that
without passion or love in nurturing young children, an entrepreneur will certainly
fail. He will end up recreating something that is already available in the market.

On the other hand, passion will drive the entrepreneur in providing services that
will have a positive impact on a childs long-term development. As a result, a
successful child care provider is able to satisfy the needs of the child, parents and
society.

2.2.2 Product/Customer Focus

The computer is the most remarkable tool we have ever built...but the most
important thing is to get them in the hands of as many people as possible.
Steve Jobs, co-founder of Apple Computer

Successful entrepreneurs are focused on making products that can satisfy a

customers needs by creating high-quality and professional services. In a nutshell,
they are focused on the two basic elements of a business, i.e. products and
customers.

2.2.3 Tenacity despite Failure

Entrepreneurs are always trying something new. Therefore, the failure rate
associated with their efforts is naturally high. Setbacks and failures will often
occur during the business venture.

A successful entrepreneur must have the ability to persevere through setbacks.

When asked in an interview what is the best thing he ever did, Ken Nickerson, a
former Microsoft Employee responds, Having high levels of tenacity. For
example, bringing Hotmail to Microsoft Network took 18 months, and I just
fought that deal through. It was arguably the best Internet thing Microsoft did.

This firmness and determination shows the customer the degree of commitment
to a new product or service.
20 TOPIC 2 INTRODUCTION TO ENTREPRENEURSHIP

2.2.4 Execution Intelligence

To open a business is very easy; to keep it open is very difficult.

Ancient Chinese Proverb

The ability to create a solid idea into a viable business is the key to success. It is
easy to start up a business but difficult to keep it going. The ability to keep the
business going requires execution of the idea.

This execution involves putting together a new venture team, raising money,
establishing partnerships, managing finances, leading and motivating employees
and so on. One also needs to be creative and put imagination into actions which
produce measureable results.

SELF-CHECK 2.2

1. Describe the characteristics of successful entrepreneurs.

2. In general, are entrepreneurs high risk takers, moderate risk takers
or low risk takers?

2.3 AGENCIES
The entrepreneurial process of providing child care is supported by relevant
agencies. This supporting role is aimed at assisting in the establishment and
management of a child care business. The following sections describe how
approval can be obtained and the requirements of the above-mentioned agencies.

2.3.1 Training and Management

There are various agencies that provide basic courses and training for potential
entrepreneurs which include marketing training, financial planning and
handling a small or medium business. Below are some examples of the agencies:
(a) MARA (Majlis Amanah Rakyat);
(b) INSKEN (Institut Keusahawanan Negara, Kementerian Pembangunan
Usahawan dan Koperasi Malaysia);
(c) PUNB (Perbadanan Usahawan Nasional Berhad);
 TOPIC 2 INTRODUCTION TO ENTREPRENEURSHIP ! 21

(d) MEDEC (Pusat Pembangunan Usahawan Malaysia-UiTM);

(e) NPC (Perbadanan Produktiviti Negara); and
(f) PKEN (Perbadanan Kemajuan Ekonomi Negeri).

2.3.2 Funds
One of the biggest challenges for potential entrepreneurs is raising funds for
start-up and operational purposes. There are various sources through which
entrepreneurs can raise the required funds as shown in Figure 2.2.

Figure 2.2: Various sources of funds

22 TOPIC 2 INTRODUCTION TO ENTREPRENEURSHIP

2.3.3 Infrastructure and Business Opportunities

Small and medium entrepreneur industries (IKS) can get facilities such as
appropriate rental rate at agencies such as:
(a) MARA (Majlis Amanah Rakyat);
(b) PKEN (Perbadanan Kemajuan Ekonomi Negeri);
(c) SIRIM (Standard and Industrial Research Institute Malaysia Berhad); and
(d) UDA (Urban Development Authority).

SELF-CHECK 2.3

1. List two agencies that provide training and funding in Malaysia.

2. What are the roles of training agencies in encouraging the
provision of child care services in Malaysia?

ACTIVITY 2.2
1. There are various agencies that provide basic courses and training
for potential entrepreneurs. What can the agencies do to help the
entrepreneurs? Discuss.
2. If you are considering to open a child care centre, what are the
personal qualities you must have to become successful?

This topic explores the general concept of entrepreneurship and its

importance in the provision of child care services.
Entrepreneurs play an important role in stimulating the economy and
encouraging innovation. They have a positive role in society as a whole.
The process of managing an entrepreneurial firm begins with the decision to
become an entrepreneur.
One may choose to become an entrepreneur to be his own boss, pursue his
dreams and realise financial rewards.
 TOPIC 2 INTRODUCTION TO ENTREPRENEURSHIP ! 23

Entrepreneurs must have important characteristics in ensuring success, i.e.

product/customer focus, passion/love for the business, perseverance despite
failure and execution intelligence.
There are various agencies that play an important role in the training and
funding of child care entrepreneurs in Malaysia.

Entrepreneurial process Own resources

Entrepreneurship PKEN (Perbadanan Kemajuan
Ekonomi Negeri)
Execution intelligence
Product/customer focus
Funds
PUNB (Perbadanan Usahawan
INSKEN (Institut Keusahawanan
Nasional Berhad)
Negara, Kementerian Pembangunan
Usahawan dan Koperasi Malaysia) Role of entrepreneurs
MARA (Majlis Amanah Rakyat) Silent partners
MECD (Kementerian Pembangunan SIRIM (Standard and Industrial
Usahawan dan Koperasi Malaysia) Research Institute Malaysia Berhad)
MEDEC (Pusat Pembangunan UDA (Urban Development
Usahawan Malaysia - UiTM) Authority)
NPC (Perbadanan Produktiviti Negara) Viable business

Barringer Bruce R. & Ireland R. Duane. (2008). Entrepreneurship: Successfully

launching new ventures (2nd ed.). New Jersey: Pearson Education, Inc.

S. Baillie. High tech heroes. Profit. December 2000/January 2001.

S.A. Alvarex and J.B. Barney. (2005). Entrepreneurial alertness. The Blackwell
Encyclopaedia of management-Entrepreneurship, 63-64.