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THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
Definition of an Entrepreneur :
• “ An entrepreneur is a person who
undertakes to do a job ” Richard
Cantillon (1755). The term entrepreneur
is a French word first coined by Richard
Cantillon.
• In Malaysia the term “usahawan” is
used for entrepreneur.
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THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
Definition of Entrepreneurship:
• Entrepreneurship involves not only the
process that leads to the setting up of a
business entity but also the expansion
and development of an on going
concern.The study of entrepreneurship
is concerned with the entrepreneurial
behavior, the dynamics of business set
up and expansion and development.
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THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
• Adam Smith (1776) - An entrepreneur is
a person who acts as agent in
transforming demand into supply.
• Jean Babtiste Say (1803) - An
entrepreneur is a person who shifts
resources from an area of low
productivity to high productivity.
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THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
• John Stuart Mill (1848) - An entrepreneur is a
prime mover in the private enterprise.The
entrepreneur is the fourth factor of production
after land ,labor and capital.
• Carl Menger (1871) - The entrepreneur acts
as an economic agent who transforms
resources into products and services.The
entrepreneur transforms and gives added
value.
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THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
• 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.
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THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
• 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.
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THEORIES & CONCPET OF ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
It is more than mere creation of business
Entrepreneurship is a process of innovation
and new venture creation through four major
dimensions – individual, organizational,
environmental and process.
The entrepreneurship process is aided by
collaborative networks in government,
education and institutions.
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THEORIES & CONCPET OF ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURS
• Functional definition of entrepreneurs
offers the following definition:
• Entrepreneurs are individuals who
actively form or lead their own business
and nurture them for growth and
prosperity.
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THEORIES & CONCPET OF ENTREPRENEURSHIP
• Cyber-entrepreneur (cyberpreneur) is an
individual who creates a firm that is based on
e-commerce and whose main activities
include exploiting networks, using internet,
intranets and extranets.
• They transact their businesses on the internet
and deal in digital products and services that
do not require bricks-and-mortar.
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ISLAMIC ENTREPRENEURSHIP
ISLAMIC ENTREPRENEURSHIP FOCUS ON
EIGHT PRINCIPLES OF THOUGHTS :-
1.Entrepreneurship is an integral parts of Islamic religion.
2.By virtue of human nature , the Moslem entrepreneurs
are ‘khalifah’ and have the reponsibilities develop
prosperity and sees business as part of ibadah or good
deed.
3.Motivation – success in Islam is not merely measured
by the end result but also the way and means of
achieving them.
4.Ibadah – business activity is part of ibadah or “good
deed”
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ISLAMIC ENTREPRENEURSHIP
ISLAMIC ENTREPRENEURSHIP
ISLAMIC ENTREPRENEURSHIP AS AS
INTEGRAL PART OF THE RELIGION
HUMAN NATURE
(The fitrah of human being)
By 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’.
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MOTIVATION
• Most entrepreneurs have the desire to
achieve successful business venture.
• The successful path and means for
achieving success for Muslim
entrepreneurs are unique.
• Success in Islam is not merely
measured by the end result, but also
the means and ways of achieving them.
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THEORIES & CONCPET OF ENTREPRENEURSHIP
Level of Knowledge
Level of Taubat or repentence
Level of Temptation
Level of Obstacles
Level of Motivation
Level of Handicap
Level of Praise and Thankfulness
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THEORIES & CONCPET OF ENTREPRENEURSHIP
IBADAH
In Islam, involving in business is
part of ibadah through the
fulfilment of fardhu kifayah.
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THEORIES & CONCPET OF ENTREPRENEURSHIP
END OF MODULE 1