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INTRODUCTIONTO ENTREPRENEURSHIP

LEARNING OUTCOME

- Understand E - Business

- Understand Competencies of Entrepreneurship

- Explain the roles & social responsibilities of entrepreneur

- Define the concept of entrepreneur and entrepreneurship

- Differentiate between entrepreneurs and businessman

A society that has ENTREPRENEURS is considered to be a successful society.

Why ???

Who’s ??

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.

Characteristics Entrepreneurs Small Businessman

Time Unlimited Limited

Nature of Job Flexible Rigid in adapting to changes

Decision Making Makes own decisions 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

vs

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 Putih(1989)

ROLES & SOCIAL RESPONSIBILITIES OF ENTREPRENEUR

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Entrepreneur

Customers

Staff

Creditors

Environment

Suppliers

Competitors

Society / Community

Goverment

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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?

Be honest about products sold

IMPACT : Gain the trust of customers

and increase revenue

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Responsibilities towards staff 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 ethical staff

How to ensure responsibility towards

employees?

Treat employees well and allow equal

opportunity for hiring and promotion

IMPACT : Gain the trust of employees : increased effort by

employees

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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?

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

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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 into the air

How to ensure responsibility

towards environment?

Ensure that production does

not harm the environment

IMPACT : Gain the trust of all

stakeholders that the firm is not harming the environment

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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?

Pay on time, share opinions,

experiences and create new ideas

IMPACT : Strengthen

relationship with the supplier

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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 community.

How to ensure responsibility

towards competitors?

Practice healthy competition

IMPACT : Sharing of ideas and opinions on ways to prepare and

provide the best services to the

customer

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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

How to ensure responsibility

towards community?

Demonstrates a commitment to the community where the customer lives

IMPACT : Gain the continued support of customers who

may buy product in the future

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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?

Create job opportunities to

the people

IMPACT : Improve the socio-economy

and increase the national income

Competencies of Entrepreneurship

Personal Initiative

Seize opportunities

Endurance

Information seeker

Systematic Planning

Efficient

commitment

High work quality

Creative Problem Solving

Self Confidence

Assertion

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 e-commerce is the conduct of financial

transactions by electronic means which includes distribution, marketing and product or services

transactions.

IMPORTANCE OF ICT FOR ENTREPRENEURS

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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

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 FernandesASAL : Kuala Lumpur, MalaysiaJAWATAN : Ketua Pegawai Eksekutif / Pengarah AirAsia Berhad dan Pengasas Tune Group Sdn Bhd / Pengerusi Q.P.R. Holdings LtdPENDIDIKAN : 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 CustomerAir 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 HugeWhen 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 customers are willing to pay for even more.

MALAYSIAN SUCCESSFUL ENTREPRENEURS

NAMA : Datuk Maznah HamidASAL : Ayer Hitam, Jerlun, KedahJAWATAN : Pengerusi Eksekutif Kumpulan SecuriforceSUAMI : 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 beransur-ansur 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

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