TOPIC 1

INTRODUCTION
TO ENTREPRENEURSHIP

LEARNING OUTCOME
- Define the concept of entrepreneur and
entrepreneurship
- Differentiate between entrepreneurs and
businessman

- Explain the roles & social responsibilities

of entrepreneur

- Understand Competencies of
Entrepreneurship

- Understand E - Business

A society that has

ENTREPRENEURS
is considered to be
a successful society.

Why ???

Whos ??

Entrepreneur
A businessman who
takes risks to combine
the factors of
production, such as
capital, labour, and raw
materials, and accepts
the rewards through the
profits made by the
market value of his
products.
(Encyclopedia
Americana )

Entrepreneurship
The process of creating
something new of value
by
devoting the necessary
time and effort,
assuming the
accompanying financial,
physical and social
risks, and receiving the
resulting monetary
rewards, personal
satisfaction &
independence.

v
s

Characteristics

Entrepreneurs

Time

Unlimited

Nature of Job

Flexible

Decision Making

Makes own decisions

Small Businessman
Limited
Rigid in adapting to
changes
Follows decisions made
by others

Effort and Commitment Continuous

Low

Risk Taking

Moderate

Low

Goal

Maximizes self
potential by utilizing
available opportunities

Solely for profit

maximization

Entrepreneur
is an innovator
willing to take risks
face unpredictable and uncertain challenges
develop new business areas and penetrate new
market to stay competitive in the industry
more choices of products or services offered
to the society and enhance the society's
economic development

Entrepreneurship
is the ability, capability and tendency to perform
the following activities:
identify business opportunities
manage a business effort which brings profit
to the entrepreneur and the public
obtain success and richness by fulfilling the
society's needs and taking calculated risks.
manage and utilize the factors of production to
bring economical development and
enhance social welfare.
work hard and be prepared to make new
changes that can increase production
quantity and quality from time to time.
Yep

ROLES & SOCIAL RESPONSIBILITIES OF ENTREPRENEUR

Customers
Goverment

Society /

Community

Staf

Entrepreneur

Competitors

Environment

Suppliers
PB201 : Topic 1

Creditors

ROLES & SOCIAL RESPONSIBILITIES OF

ENTREPRENEUR

Responsibilities towards customers

establish a code of responsibility that
sets the guidelines for product quality
and customer relations.
Monitor complaints and follow-up on
the matter then identify the necessary
corrective action to be taken.
How to
ensure
responsibility
towards
customers?
PB201 : Topic 1

Be honest
about
products
sold

IMPACT : Gain
the trust of
customers and
increase
revenue

ROLES & SOCIAL RESPONSIBILITIES OF

ENTREPRENEUR
Responsibilities towards staf
Always take care of the staff welfare, give
adequate wages to the workers and provide
guidance to staff
Conduct courses and training to update staffs
with the latest information and skills
Rewards staffs with bonuses, allowances and
other
perks extra holidays
Appreciate and recognize dedicated and highly
IMPACT : Gain
ethical staff
Treat employees
How to ensure
responsibility
towards
employees?

PB201 : Topic 1

well and allow

equal
opportunity for
hiring and
promotion

the trust of
employees :
increased
efort by
employees

ROLES & SOCIAL RESPONSIBILITIES OF

ENTREPRENEUR

Responsibilities towards creditors

Meet the financial obligation to the
creditors
Manage the business well so that
creditors can be paid on time

How to
ensure
responsibility
towards
creditors?

PB201 : Topic 1

Manage the
business
well so that
creditors
can be paid
on time

IMPACT : Gain
the trust of
creditors :
allows the
firm to easily
obtain
additional
funding from
the creditors

ROLES & SOCIAL RESPONSIBILITIES OF

ENTREPRENEUR

Responsibilities towards environment

Ensure that production process does not
harm the environment.
Produce products that are not harmful to
the environment
Enforce specific guidelines that limit the
amount of poisonous gases that escape
IMPACT :
into
the
air
How to
ensure
responsibility
towards
environment
?

PB201 : Topic 1

Ensure that
production
does not
harm the
environment

Gain the
trust of all
stakeholders
that the firm
is not
harming the
environment

ROLES & SOCIAL RESPONSIBILITIES OF

ENTREPRENEUR

Responsibilities towards suppliers

Nurture good relationship with suppliers
Pay any dues to suppliers at the agreed
stipulated time
Share opinions and experiences to create
new ideas related to the business
How to
ensure
responsibility
towards
suppliers?
PB201 : Topic 1

Pay on time,
share
opinions,
experiences
and create
new ideas

IMPACT :
Strengthen
relationship
with the
supplier

ROLES & SOCIAL RESPONSIBILITIES OF

ENTREPRENEUR
Responsibilities towards competitors
Practice healthy competition, share ideas and
opinions on ways to prepare and provide the
best services to customers.
Work together to produce and create products
that can give the most benefit to the
customers and make improvements to the
product to attract more customers.
Healthy competition among entrepreneurs will
lead to more job opportunities for the IMPACT :
Sharing of ideas
How community.
to ensure
responsibility
towards
competitors?

PB201 : Topic 1

Practice
healthy
competition

and opinions on
ways to prepare
and provide the
best services to
the customer

ROLES & SOCIAL RESPONSIBILITIES OF

ENTREPRENEUR
Responsibilities towards society / community
Produce , create and improve products
Create choice through innovative and creative
production
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 IMPACT : Gain
How to ensure
responsibility
towards
community?
PB201 : Topic 1

Demonstrates
a commitment
to the
community
where the
customer lives

the continued
support of
customers
who may buy
product in the
future

ROLES & SOCIAL RESPONSIBILITIES OF

ENTREPRENEUR
Responsibilities towards government
Create job opportunities, assist in improving the
lifestyle of the society.
Create more infrastructure facilities for the
society
Improve socio-economical aspects and increase
national income
Diversify the national economy so as not to
depend solely on one sector of the economy
How to
ensure
responsibility
towards
government?
PB201 : Topic 1

Create job
opportunities
to the people

IMPACT :
Improve the
socioeconomy and
increase the
national
income

Competencies of Entrepreneurship
Personal
Initiative

High work
quality

Creative
Problem
Solving

Seize
opportunit
ies

commitme
nt

Self
Confidenc
e

Endurance

Efficient

Assertion

Informatio
n seeker

Systemati
c Planning

Power and
Authority

Characteristics of Entrepreneur
ATTITUDE

SKILLS

KNOWLEDGE

Motivate

Decision making

Law

Confidence

Problem solving

Management

Initiative

Negotiation

Economics

Responsibility

Communication

Accounting

Risk taking

Creativity

Values

Diligence

Team work

Business

Mental & physical

fitness

Management

Culture

Information seeking

Technical

Project management

ONLINE COMMUNICATION

Electronic business,
or
e-business,
may be defined as the
application of
information and
communication
technologies (ICT) in
support of all the
activities of business

Electronic
commerce, or ecommerce is the
conduct of financial
transactions by
electronic means
which includes
distribution,
marketing and
product or services
transactions.

IMPORTANCE OF ICT FOR ENTREPRENEURS

Attracts a large number of

customers
Gives an image of a well
established company
Disseminates business
information
The company can be visited
without time restrictions
Minimizes management costs &
Reduces the size of filing
PB201 : Topic 1

E-commerce

Advantages
- Faster and easier
transactions
- Remains open all the
time
- Removes barriers of
global
trading
- Low operational costs
and
better services
- No need of physical
company set-ups

Disadvantages
- Risk of being cheated
- No guarantee of product
quality
- Tendency of mechanical
failures
- Customer loyalty
- Threats to security and
privacy

MALAYSIAN SUCCESSFUL ENTREPRENEURS

NAMA : Tan Sri Dato Sri Dr. Tony Fernandes

ASAL : Kuala Lumpur, Malaysia
JAWATAN : Ketua Pegawai Eksekutif / Pengarah
AirAsia Berhad dan Pengasas Tune Group Sdn
Bhd / Pengerusi Q.P.R. Holdings Ltd
PENDIDIKAN : Epsom College (1977-83),
London School of Economics (1987)
Syarikat ini ditubuhkan oleh DRB-Hicom,
sebuah konglomerat kerajaan Malaysia.
Disebabkan tanggungan hutang yang terlalu
tinggi, ia dijual kepada Tune Air yang
dipengerusikan oleh Tony Fernandes dengan
harga RM 1 sahaja. Penyusunan semula
organisasi AirAsia dengan imej dan konsep
tambang murah telah membawa kepada
perubahan yang besar dan memperoleh
keuntungan dalam tempoh masa yang
pendek. AirAsia ialah syarikat penerbangan
tambang murah pertama di Asia.

MALAYSIAN SUCCESSFUL ENTREPRENEURS

There are 3 AirAsia success factors :
1. Never afraid to challenge the norm.
A few years ago, people had to call a travel agent or airline operator to buy a
flight ticket. Air Asia challenged the norm by riding on the e-commerce wave.
It invested in a user-friendly website interface and allows travelers to book
and print flight ticket anytime and also introduce online check in services.
This has proven to be enormously successful especially in engaging with the
Gen-Y customers.
2. Dare to Think Big and Serve the right Customer
Air Asia business model has always been focusing in low cost operation and
serving the mass market. They know their targeted customers well and do
not directly compete with other premium airlines. 10 years ago traveling by
air was a luxury. Air Asia was daring enough to think big and today, it is truly
Everyone Can Fly.
3. Create Complementary business opportunities, they can be Huge
When we fly AirAsia, most likely we will use their services such as Sky Bus
from KL Sentral or stay at Tune Hotel. It is very important to think of
innovative ways to get more out of your existing customers.
The question is not about how to squeeze more profit out of the
existing operations, but how to provide add on values so that

MALAYSIAN SUCCESSFUL ENTREPRENEURS

NAMA : Datuk Maznah Hamid
ASAL : Ayer Hitam, Jerlun, Kedah
JAWATAN : Pengerusi Eksekutif Kumpulan
Securiforce
SUAMI : Datuk Shaheen Mirza.
Beliau menubuhkan Securiforce kira-kira 27
tahun yang lalu dan menjadi pembekal
Keselamatan terbesar di Malaysia.Beliau
memulakan perniagaan bermodalkan hanya
RM5000 dari simpanan beliau.
Bahagian yang paling luar biasa dan menarik
dalam cerita kejayaan Datuk Maznah bahawa
semua syarikat ditubuhkan secara beransuransur berkembang tanpa bantuan mana-mana
daripada institusi perbankan. Falsafah
kejayaan dan pencapaian beliau dapat dilihat
dengan kepercayaan bahawa "the main capital
in business is yourself ".

MALAYSIAN SUCCESSFUL ENTREPRENEURS

PB201 : Topic 1