Introduction to Entrepreneurship, Introduction to Entrepreneurship,

Chapter 1The Revolutionary Impact of

EntrepreneurshipAnd

Successful Entrepreneur

1–2

Chapter ObjectivesChapter Objectives

1.1. To examine the historical development of To examine the historical development of entrepreneurshipentrepreneurship

2.2. To explore and debunk the myths of To explore and debunk the myths of entrepreneurshipentrepreneurship

3.3. To define and explore the major schools of To define and explore the major schools of entrepreneurial thoughtentrepreneurial thought

4.4. To explain the process approaches to the study To explain the process approaches to the study of entrepreneurshipof entrepreneurship

5.5. To set forth a comprehensive definition of To set forth a comprehensive definition of entrepreneurshipentrepreneurship

6.6. To examine the Entrepreneurial Revolution To examine the Entrepreneurial Revolution taking place todaytaking place today

7.7. To illustrate today’s entrepreneurial environmentTo illustrate today’s entrepreneurial environment

1–3

Entrepreneurs—Challenging the Entrepreneurs—Challenging the UnknownUnknown

• EntrepreneursEntrepreneurs Recognize opportunities where Recognize opportunities where

others see chaos or confusionothers see chaos or confusion

Are aggressive catalysts for Are aggressive catalysts for change within the marketplacechange within the marketplace

Challenge the unknown and Challenge the unknown and continuously create the future continuously create the future

1–4

Entrepreneurs versus Entrepreneurs versus Small Business Owners: A DistinctionSmall Business Owners: A Distinction

• Small Businesses OwnersSmall Businesses Owners Manage their businesses by expecting Manage their businesses by expecting stablestable sales, sales,

profits, and growthprofits, and growth

• EntrepreneursEntrepreneurs Focus their efforts on innovation, profitability and Focus their efforts on innovation, profitability and

sustainable growthsustainable growth

1–5

Entrepreneurship: A MindsetEntrepreneurship: A Mindset

• Entrepreneurship is more than the mere Entrepreneurship is more than the mere creation of business: creation of business: Seeking opportunitiesSeeking opportunities

Taking risks beyond securityTaking risks beyond security

Having the tenacity to push an idea through to reality Having the tenacity to push an idea through to reality

• Entrepreneurship is an integrated concept Entrepreneurship is an integrated concept that permeates an individual’s business in that permeates an individual’s business in an innovative manner.an innovative manner.

1–6

The Evolution of EntrepreneurshipThe Evolution of Entrepreneurship

• Entrepreneur is derived from the French Entrepreneur is derived from the French entreprendreentreprendre, meaning “to undertake.”, meaning “to undertake.” The The entrepreneurentrepreneur is one who undertakes to organize, is one who undertakes to organize,

manage, and assume the risks of a business. manage, and assume the risks of a business.

Although no single definition of entrepreneur exists Although no single definition of entrepreneur exists and no one profile can represent today’s entrepreneur, and no one profile can represent today’s entrepreneur, research is providing an increasingly sharper focus on research is providing an increasingly sharper focus on the subject.the subject.

EVOLUSI KEUSAHAWANANEVOLUSI KEUSAHAWANAN

1–8

The Evolution of EntrepreneurshipThe Evolution of Entrepreneurship

In MALAYSIA.In MALAYSIA.

• When it started?When it started?

• How?How?

• Do you think Entrepreneurship is essential Do you think Entrepreneurship is essential to our country?to our country?

• Why?Why?

KEUSAHAWANAN PERSPEKTIF ISLAMKEUSAHAWANAN PERSPEKTIF ISLAM

-Agama yang menyokong pembangunan keusahawanan dikalangan umatnya;

*Islam mengajar manusia membentuk budaya keusahawanan dengan cara hidup dan cara kerja yang diterima oleh Allah

*Islam ialah agama yang menggalakkan aktiviti keusahawanan dengan menggariskan etika keusahawanan, menjanjikan ganjaran di dunia dan akhirat

PERKARA PENTING BAHAWA ISLAM PERKARA PENTING BAHAWA ISLAM MENYARANKAN KEUSAHAWANANMENYARANKAN KEUSAHAWANAN

1. 1. Allah telah menghalalkan jualbeli dan Allah telah menghalalkan jualbeli dan

mengharamkan riba (B2:275)mengharamkan riba (B2:275)

2. Sembilan daripada sepuluh bahagian rezeki adalah 2. Sembilan daripada sepuluh bahagian rezeki adalah

dari perniagaan dari perniagaan

  3. Tidak ada dosa mencari kurnia / rezeki hasil 3. Tidak ada dosa mencari kurnia / rezeki hasil

perniagaan dari tuhanmu (B2:198)perniagaan dari tuhanmu (B2:198)

4. 4. Keusahawanan merupakan jihad fisabilillah Keusahawanan merupakan jihad fisabilillah   

5. Keusahawanan dijadikan sebagai satu ibadah5. Keusahawanan dijadikan sebagai satu ibadah

1–11

A Summary Description A Summary Description of Entrepreneurshipof Entrepreneurship

• Entrepreneurship (Robert C. Ronstadt)Entrepreneurship (Robert C. Ronstadt) The dynamic process of creating incremental wealth.The dynamic process of creating incremental wealth. This wealth is created by individuals who assume This wealth is created by individuals who assume

major risks in terms of equity, time, and/or career major risks in terms of equity, time, and/or career commitment of providing value for a product or commitment of providing value for a product or service. service.

The product or service itself may or may not be new or The product or service itself may or may not be new or unique but the entrepreneur must somehow infuse unique but the entrepreneur must somehow infuse value by securing and allocating the necessary skills value by securing and allocating the necessary skills and resources.and resources.

1–12

An Integrated DefinitionAn Integrated Definition

• EntrepreneurshipEntrepreneurship A dynamic process of vision, change, and creation.A dynamic process of vision, change, and creation.

• Requires an application of energy and passion towards the Requires an application of energy and passion towards the creation and implementation of new ideas and creative creation and implementation of new ideas and creative solutions.solutions.

Essential ingredients include:Essential ingredients include:• The willingness to take calculated risksThe willingness to take calculated risks——in terms of time, in terms of time,

equity, or career.equity, or career.

• The ability to formulate an effective venture team; the creative The ability to formulate an effective venture team; the creative skill to marshal needed resources.skill to marshal needed resources.

• The fundamental skills of building a solid business plan.The fundamental skills of building a solid business plan.

• The vision to recognize opportunity where others see chaos, The vision to recognize opportunity where others see chaos, contradiction, and confusion.contradiction, and confusion.

1–13

The Myths of EntrepreneurshipThe Myths of Entrepreneurship

• Myth 1:Myth 1: Entrepreneurs Are Doers, Not ThinkersEntrepreneurs Are Doers, Not Thinkers

• Myth 2:Myth 2: Entrepreneurs Are Born, Not MadeEntrepreneurs Are Born, Not Made

• Myth 3:Myth 3: Entrepreneurs Are Always InventorsEntrepreneurs Are Always Inventors

• Myth 4:Myth 4: Entrepreneurs Are Academic and Social MisfitsEntrepreneurs Are Academic and Social Misfits

• Myth 5:Myth 5: Entrepreneurs Must Fit the “Profile”Entrepreneurs Must Fit the “Profile”

• Myth 6:Myth 6: All Entrepreneurs Need Is MoneyAll Entrepreneurs Need Is Money

• Myth 7:Myth 7: All Entrepreneurs Need Is LuckAll Entrepreneurs Need Is Luck

• Myth 8:Myth 8: Ignorance Is Bliss For EntrepreneursIgnorance Is Bliss For Entrepreneurs

• Myth 9:Myth 9: Entrepreneurs Seek Success But Experience Entrepreneurs Seek Success But Experience High Failure RatesHigh Failure Rates

• Myth 10:Myth 10: Entrepreneurs Are Extreme Risk Takers (Gamblers)Entrepreneurs Are Extreme Risk Takers (Gamblers)

1–14

Figure1.1Entrepreneurial Schools-of-Thought Approach

1–15

Macro View: External Locus of ControlMacro View: External Locus of Control

• The Environmental School of ThoughtThe Environmental School of Thought Considers the external factors that affect a potential Considers the external factors that affect a potential

entrepreneur’s lifestyle. entrepreneur’s lifestyle.

• The Financial/Capital School of ThoughtThe Financial/Capital School of Thought Based on the capital-seeking processBased on the capital-seeking process—t—the search for he search for

seed and growth capital. seed and growth capital.

• The Displacement School of ThoughtThe Displacement School of Thought Alienation drives entrepreneurial pursuitsAlienation drives entrepreneurial pursuits

• Political displacement (laws, policies, and regulations)Political displacement (laws, policies, and regulations)

• Cultural displacement (preclusion of social groups)Cultural displacement (preclusion of social groups)

• Economic displacement (economic variations)Economic displacement (economic variations)

1–16

Micro View: Internal Locus of Control Micro View: Internal Locus of Control (cont’d)(cont’d)

• The Entrepreneurial Trait School of The Entrepreneurial Trait School of ThoughtThought Focuses on identifying traits common to successful Focuses on identifying traits common to successful

entrepreneurs.entrepreneurs.• Achievement, creativity, determination, and technical Achievement, creativity, determination, and technical

knowledge knowledge

• The Venture Opportunity School of ThoughtThe Venture Opportunity School of Thought Focuses on the opportunity aspect of venture Focuses on the opportunity aspect of venture

developmentdevelopment—t—the search for idea sources, the he search for idea sources, the development of concepts, and the implementation of development of concepts, and the implementation of venture opportunities.venture opportunities.

• Corridor principle:Corridor principle: New pathways or opportunities will arise New pathways or opportunities will arise that lead entrepreneurs in different directions.that lead entrepreneurs in different directions.

1–17

Table1.2Definitions And Criteria Of One Approach To The Micro View

Entrepreneurial Model Definition Measures Questions

“Great Person” “Extraordinary Achievers” Personal principlesPersonal histories Experiences

What principles do you have?What are your achievements?

Psychological Characteristics

FounderControl over the means of production

Locus of control Tolerance of ambiguityNeed for achievement

What are your values?

Classical People who make innovations bearing risk and uncertainty“Creative destruction”

Decision makingAbility to see opportunitiesCreativity

What are the opportunities?What is your vision?How do you respond?

Management Creating value through the recognition of business opportunity, the management of risk taking . . . through the communicative and management skills to mobilize . . .

ExpertiseTechnical knowledgeTechnical plans

What are your plans?What are your capabilities?What are your credentials?

Leadership “Social architect”Promotion and protection of values

Attitudes, stylesManagement of people

How do you manage people?

Intrapreneurship Those who pull together to promote innovation

Decision making How do you change and adapt?

Source: Adapted from J. Barton Cunningham and Joe Lischeron, “Defining Entrepreneurship,” Journal of Small Business Management (January 1991): 56.

1–18

Micro View… (cont’d)Micro View… (cont’d)

• The Strategic Formulation School of The Strategic Formulation School of ThoughtThought Emphasizes the planning process in successful Emphasizes the planning process in successful

venture development.venture development.

• Ronstadt’s ViewRonstadt’s View Strategic formulation is a leveraging of unique Strategic formulation is a leveraging of unique

elements:elements:

• Unique MarketsUnique Markets——mountain gap strategiesmountain gap strategies

• Unique PeopleUnique People——great chef strategiesgreat chef strategies

• Unique ProductsUnique Products——better widget strategiesbetter widget strategies

• Unique ResourcesUnique Resources——water well strategieswater well strategies

1–19

Process Approaches to EntrepreneurshipProcess Approaches to Entrepreneurship

• Integrative ApproachIntegrative Approach Built around the concepts of inputs to the Built around the concepts of inputs to the

entrepreneurial process and outcomes from the entrepreneurial process and outcomes from the entrepreneurial process.entrepreneurial process.

Focuses on the entrepreneurial process itself and Focuses on the entrepreneurial process itself and identifies five key elements that contribute to the identifies five key elements that contribute to the process.process.

Provides a comprehensive picture regarding the Provides a comprehensive picture regarding the nature of entrepreneurship that can be applied at nature of entrepreneurship that can be applied at different levels. different levels.

1–20

Figure1.2An Integrative Model of Entrepreneurial Inputs and Outcomes

Source: Michael H. Morris, P. Lewis, and Donald L. Sexton, “Reconceptualizing Entrepreneurship: An Input-Output Perspective,” SAM Advanced Management Journal 59, no.1 (Winter 1994): 21–31.

1–21

Process Approaches… (cont’d)Process Approaches… (cont’d)

• Entrepreneurial Assessment ApproachEntrepreneurial Assessment Approach Stresses making assessments qualitatively, Stresses making assessments qualitatively,

quantitatively, strategically, and ethically in regard to quantitatively, strategically, and ethically in regard to the entrepreneur, the venture, and the environment the entrepreneur, the venture, and the environment

• Multidimensional ApproachMultidimensional Approach Views entrepreneurship as a complex, Views entrepreneurship as a complex,

multidimensional framework that emphasizes the multidimensional framework that emphasizes the individual, the environment, the organization, and the individual, the environment, the organization, and the venture process. venture process.

1–22

Figure1.3Entrepreneurial Assessment Approach

Source: Robert C. Ronstadt, Entrepreneurship (Dover, MA: Lord Publishing Co., 1984), 39.

1–23

Our Entrepreneurial Economy—Our Entrepreneurial Economy—The Environment for EntrepreneurshipThe Environment for Entrepreneurship

• Entrepreneurship is the symbol of business Entrepreneurship is the symbol of business tenacity and achievement.tenacity and achievement.

• Entrepreneurs are the pioneers of today’s Entrepreneurs are the pioneers of today’s business successes.business successes.

• Two perspectives on entrepreneurship:Two perspectives on entrepreneurship: Statistical:Statistical: numbers that emphasize the importance of numbers that emphasize the importance of

entrepreneurs to the economy.entrepreneurs to the economy. Academic:Academic: trends in entrepreneurial research and trends in entrepreneurial research and

education.education.

1–24

Predominance of New Ventures Predominance of New Ventures in the Economyin the Economy

• Entrepreneurial Activity: Growth in Small Entrepreneurial Activity: Growth in Small BusinessesBusinesses New business incorporations average 600,000 per New business incorporations average 600,000 per

year over the past decade.year over the past decade. There are over 25 million small businesses; the There are over 25 million small businesses; the

number continues to grow 2% annually.number continues to grow 2% annually. One of every 150 adults participates in the founding of One of every 150 adults participates in the founding of

a new firm each year.a new firm each year. Approximately 600,000 to 800,000 are added each Approximately 600,000 to 800,000 are added each

year.year.

1–25

Effects of EntrepreneurshipEffects of Entrepreneurship

• The Global Entrepreneurship Monitor (GEM)The Global Entrepreneurship Monitor (GEM) Provides an annual assessment of the entrepreneurial Provides an annual assessment of the entrepreneurial

environment of 42 countries.environment of 42 countries. Latest GEM study: the U.S. outranks the rest of the Latest GEM study: the U.S. outranks the rest of the

world in important entrepreneurial support.world in important entrepreneurial support.

• Entrepreneurs lead to growth by:Entrepreneurs lead to growth by: Entering and expanding existing markets.Entering and expanding existing markets. Creating entirely new markets by offering innovative Creating entirely new markets by offering innovative

products.products. Increasing diversity and fostering minority participation Increasing diversity and fostering minority participation

in the economy.in the economy.

TAHAP PEMBANGUNAN KEUSAHAWANANTAHAP PEMBANGUNAN KEUSAHAWANAN

1)1) Entrepreneurship Cultural Development Entrepreneurship Cultural Development Level Level ((Tahap pembangunan budaya Tahap pembangunan budaya

keusahawanankeusahawanan))

2)2) Start-up Level (Start-up Level (Tahap memula perniagaanTahap memula perniagaan))

3)3) Survival Level (Survival Level (Tahap penakatanTahap penakatan) )

4)4) Growth Level (Growth Level (Tahap pertumbuhan dan Tahap pertumbuhan dan pengembangan)pengembangan)

Rajah : Tahap Pembangunan Keusahawanan

Tahap

Masa

Dewasa Pekerjaan Kolej dan Universiti Sekolah Menengah Remaja

Sekolah Rendah Pra Sekolah Kanak-Kanak

Taman Asuhan Kanak-Kanak

Pertumbuhan dan Pengembangan (growth)     

Penakatan (Survival)

  Memula Perniagaan ( Start-up)

   

Budaya Keusahawanan (Cultural development)

ENTREPRENEURSHIP DEVELOPMENTENTREPRENEURSHIP DEVELOPMENT

Entrepreneurship can be developed:

Education

Training

Experience

MENGANALISIS PERSEKITARAN

MENGENALPASTI KEPERLUAN &

KEHENDAK PENGGUNA

IDEA PERNIAGAAN SECARA KASAR

MENILAI KESESUAIAN PERNIAGAAN DGN

DIRI

MENILAI KESESUAIANPERNIAGAAN DGN

PERSEKITARAN

MENILAI KESESUAIANPERNIAGAAN DGN

MASYARAKAT

IDEA PERNIAGAAN YANG KONKRIT

PEMILIHAN PELUANG PERNIAGAAN

PENYEDIAAN RANCANGAN PERNIAGAAN

Business IdeaBusiness Idea

Business EnvironmentBusiness Environment

PERSEKITARAN LUARAN KHUSUS

PERSEKITARAN LUARAN UMUM

PERSEKITARAN DALAMAN

-Struktur-Budaya-Sumber2

Ekonomi

TeknologiPolitik &Undang-Undang

Sosio Budaya

Agensi Kerajaan

Pembekal

Pesaing

Pertubuhan Bukan Kerajaan

Pelanggan

Institusi Kewangan

Wheelan/Hunger (1997)

Business Start-UpBusiness Start-Up

Things to be considered Things to be considered before start-up your business.before start-up your business.

Self mampuSelf mampu Capital and financial needsCapital and financial needs Strategic locationStrategic location Legal and Government RulesLegal and Government Rules Raw material and equipment supplyRaw material and equipment supply CompetitorsCompetitors

PERUSAHAAN KECIL DAN SEDERHANAPERUSAHAAN KECIL DAN SEDERHANA

PERUSAHAAN KECIL DAN SEDERHANA (PKS)PERUSAHAAN KECIL DAN SEDERHANA (PKS)• PKS DI MALAYSIA BOLEH DITEMPATKAN DALAM PKS DI MALAYSIA BOLEH DITEMPATKAN DALAM

TIGA KATEGORI, IAITU: TIGA KATEGORI, IAITU: MIKRO, KECIL, ATAU MIKRO, KECIL, ATAU SEDERHANA. SEDERHANA.

KETIGA-TIGA KUMPULAN INI DITETAPKAN KETIGA-TIGA KUMPULAN INI DITETAPKAN BERASASKAN KEPADA: BERASASKAN KEPADA:

JUMLAH PEKERJA SESEBUAH PERNIAGAAN; JUMLAH PEKERJA SESEBUAH PERNIAGAAN; ATAUPUN ATAUPUN

JUMLAH HASIL JUALAN SESEBUAH PERNIAGAAN JUMLAH HASIL JUALAN SESEBUAH PERNIAGAAN DALAM TEMPOH SETAHUN.DALAM TEMPOH SETAHUN.

 PERTANIAN

ASAS

PERKILANGAN (TERMASUK ASAS TANI) DAN PERKHIDMATAN BERKAITAN PERKILANGAN

SEKTOR PERKHIDMATAN (TERMASUK

ICT*)

MIKRO

KURANGDARIPADA 5 ORANG PEKERJA

KURANG DARIPADA 5 ORANG PEKERJA

KURANGDARIPADA 5ORANG PEKERJA

KECIL ANTARA 5 HINGGA 19 PEKERJA

ANTARA 5 HINGGA 50 PEKERJA ANTARA 5

HINGGA 19 PEKERJA

SEDERHANA ANTARA 20 HINGGA 50 PEKERJA

ANTARA 51 HINGGA 150 PEKERJA ANTARA 20HINGGA 50 PEKERJA

I. Jumlah PekerjaBerasaskan jumlah pekerja sepenuh masa :

II. Jumlah Jualan Tahunan Berasaskan jumlah jualan tahunan :

 PERTANIAN

ASAS

PERKILANGAN(TERMASUK ASAS TANI) DANPERKHIDMATAN BERKAITAN PERKILANGAN

SEKTOR PERKHIDMATAN(TERMASUK

ICT*)

MIKRO KURANG DARIPADA RM200,000

KURANG DARIPADA RM250,000 KURANG DARIPADA RM200,000

KECIL ANTARA RM200,000 HINGGA KURANG DARIPADARM1 JUTA

ANTARA RM250,000 HINGGAKURANG DARIPADA RM10 JUTA

ANTARA RM200,000

HINGGA KURANG DARIPADARM1 JUTA

SEDERHANA ANTARA RM1 JUTA HINGGA RM5 JUTA

ANTARA RM10 JUTA HINGGARM25 JUTA

ANTARA RM1 JUTA

HINGGA RM5 JUTA

WHY NEW VENTURE FAILS WHY NEW VENTURE FAILS (research by Bruno, Leidecker and Harder. 1987. Why firms fail?, (research by Bruno, Leidecker and Harder. 1987. Why firms fail?,

Business Horizons)Business Horizons)

3 major categories of causes for failure:3 major categories of causes for failure:

product/market problemsproduct/market problemsFinancial difficultiesFinancial difficultiesManagerial problemsManagerial problems

Product / market problemsProduct / market problems

Product Market Orientation Product Market Orientation Poor timing – premature entry into Poor timing – premature entry into

market placemarket place Product design problemsProduct design problems Inappropriate distribution strategyInappropriate distribution strategy Over reliance on one customerOver reliance on one customer

Financial difficultiesFinancial difficulties

Initial undercapitalization – Initial undercapitalization – Assuming debt too early – too soon and Assuming debt too early – too soon and

too too

largelarge Venture capital relationship problem – Venture capital relationship problem – Differing goals, vision and motivations-Differing goals, vision and motivations-

Managerial ProblemsManagerial Problems

hiring and firing based on nepotism rather than hiring and firing based on nepotism rather than qualificationsqualifications

poor relationship with parent companies and poor relationship with parent companies and venture capitalistsventure capitalists

founders who focused on their weaknesses founders who focused on their weaknesses rather than their strength rather than their strength

incompetent supportincompetent support

Ingredients For A Successful New Business (The Nine Fs)

Founders - Every startup company must have a first class entrepreneurs.

Focused - Entrepreneurial companies focus on niche markets. They specialize.Fast - They make decisions quickly and implement them swiftly.Flexible - They keep an open mind. They respond to change.Forever- Innovating - They are tireless innovators.Flat - Entrepreneurial organizations have as few layers of

management as possible.Frugal - By keeping overhead low and productivity high,

entrepreneurial organizations keep cost down.Friendly - Entrepreneurial companies are friendly to their customers, suppliers and workers.Fun - It’s fun to be associated with an entrepreneurial company.

Sumber: William D. Bygrave (1997)

Bagi Usahawan, Perniagaan mungkin

gagal. Tetapi….

Usahawan tidak pernah gagal.

EntrepreneurialCharacteristics

Entrepreneurial Entrepreneurial CharacteristicsCharacteristics(Timmons and Spinelli)(Timmons and Spinelli)

• Commitment and Commitment and determinationdetermination

Tenacious, decisive, and Tenacious, decisive, and persistent in problem solvingpersistent in problem solving

• LeadershipLeadership Self-starters and team builders Self-starters and team builders

who focus on honesty in their who focus on honesty in their business relationshipsbusiness relationships

• Opportunity obsession Opportunity obsession Aware of market and customer Aware of market and customer

needsneeds• Tolerance of risk, Tolerance of risk,

ambiguity, and ambiguity, and uncertaintyuncertainty

Risk takers, risk minimizers, and Risk takers, risk minimizers, and uncertainty toleratorsuncertainty tolerators

• Creativity, self-Creativity, self-reliance, and reliance, and adaptabilityadaptability

Open-minded, flexible, Open-minded, flexible, uncomfortable with the uncomfortable with the status quo, and quick status quo, and quick learnerslearners

• Motivation to excelMotivation to excel Goal oriented and aware Goal oriented and aware

of their weaknesses and of their weaknesses and strengthsstrengths

CIRI USAHAWAN BERJAYA ABAD CIRI USAHAWAN BERJAYA ABAD KE-21KE-21

• Dapat melihat dan mengambil peluang

• Mempunyai maklumat

• Kreatif

• Inovatif

• Mempunyai visi

• Berfikiran bebas

• Berdaya maju

• optimistik

CIRI USAHAWAN BERJAYA ABAD CIRI USAHAWAN BERJAYA ABAD KE-21KE-21

• Mengambil risiko yang diperhitungkan

• Sifat kepimpinan

Sumber: Soo Ji Min (1999)

Ciri-ciri Usahawan BerjayaCiri-ciri Usahawan Berjaya

Berdasarkan kajian Mc Clelland (1995), Koa Berdasarkan kajian Mc Clelland (1995), Koa (1991), Scar & Zimmerer (1999) dan lain2….(1991), Scar & Zimmerer (1999) dan lain2….

• Kreatif dan InovatifKreatif dan Inovatif• Kerajinan, keazaman dan ketabahan Kerajinan, keazaman dan ketabahan • BerinisiatifBerinisiatif• Mengambil Risiko yg diperhitungkanMengambil Risiko yg diperhitungkan• BertanggungjawabBertanggungjawab• Kejujuran dan Menepati Janji Kejujuran dan Menepati Janji • Motivasi Untuk Kejayaan & Berkembang MajuMotivasi Untuk Kejayaan & Berkembang Maju• Berorientasikan peluangBerorientasikan peluang• Berorientasikan Matlamat & WawasanBerorientasikan Matlamat & Wawasan• Berorientasikan Masa DepanBerorientasikan Masa Depan

Ciri-ciri Usahawan BerjayaCiri-ciri Usahawan Berjaya

Sambungan-------Sambungan-------• Kebolehan Menyelesaikan MasalahKebolehan Menyelesaikan Masalah• Menitikberatkan Mutu Kerja yang TinggiMenitikberatkan Mutu Kerja yang Tinggi• Lokus Kawalan DalamLokus Kawalan Dalam• Keupayaan MengurusKeupayaan Mengurus• Mementingkan pencapaian daripada wangMementingkan pencapaian daripada wang• Berkeyakinan Diri dan OptimistikBerkeyakinan Diri dan Optimistik• Sanggup Belajar drpd KesilapanSanggup Belajar drpd Kesilapan• Tahap Tenaga yang TinggiTahap Tenaga yang Tinggi• Menggunakan strategi2 PengaruhMenggunakan strategi2 Pengaruh

THE MOST IMPORTANT THE MOST IMPORTANT CHARACTERISTICS OF SUCCESSFUL CHARACTERISTICS OF SUCCESSFUL

ENTREPRENEURS (10 DS)ENTREPRENEURS (10 DS)

Dream

Entrepreneurs have a vision of what the future could be like for them and their business. And , more important, they have the ability to implement their dreams.

Decisiveness

They don’t procrastinate. They make decisions swiftly. Their swiftness is a key factor in their success.

Doers

Once they decide on a course of action, they implement it as quickly as possible.

Determination

They implement their ventures with total commitment. They seldom give up, even when confronted by obstacles that seem insurmountable.

Dedication

They are totally dedicated to their business, sometimes at considerable cost to their relationships with their friends and families. They work tirelessly. Twelve hour days, and seven day work weeks are not uncommon when an entrepreneur is striving to get a business off the ground.

DevotionsEntrepreneurs love what they do. It is that love that sustains them when the going gets tough. And it is love of their product or `service that makes them so effective at selling it.

DetailsIt is said that the devils resides in the details. That is never more true than in starting and growing a business. The entrepreneur must be on top of the critical details.

DestinyThey want to be in charge of their own destiny rather than dependent on an employer

1–52

Entrepreneurs in the United StatesEntrepreneurs in the United States

• Reasons for the exceptional Reasons for the exceptional entrepreneurial activity in the U.S. include:entrepreneurial activity in the U.S. include: A national culture that supports risk taking and A national culture that supports risk taking and

seeking opportunities.seeking opportunities.

Americans’ alertness to unexploited economic Americans’ alertness to unexploited economic opportunity and a low fear of failure.opportunity and a low fear of failure.

U.S. leadership in entrepreneurship education at both U.S. leadership in entrepreneurship education at both the undergraduate and graduate level.the undergraduate and graduate level.

A high percentage of individuals with professional, A high percentage of individuals with professional, technological or business degrees who are likely to technological or business degrees who are likely to become entrepreneurs.become entrepreneurs.

1–53

The Age of GazellesThe Age of Gazelles

• A “Gazelle”A “Gazelle” A business establishment with at least 20% sales A business establishment with at least 20% sales

growth in each year for five years, starting with a base growth in each year for five years, starting with a base of at least $100,000 in annual sales.of at least $100,000 in annual sales.

• Gazelles as leaders in innovation:Gazelles as leaders in innovation: Produce twice as many product innovations per Produce twice as many product innovations per

employee as do larger firms.employee as do larger firms. Have been responsible for 55% of the innovations in Have been responsible for 55% of the innovations in

362 different industries and 95% of all radical 362 different industries and 95% of all radical innovations.innovations.

Obtain more patents per sales dollar than do larger Obtain more patents per sales dollar than do larger firms.firms.

1–54

Table1.3Mythology Associated with Gazelles

Gazelles are the goal of all entrepreneurs.

Gazelles receive venture capital.

Gazelles were never mice.

Gazelles are high-tech.

Gazelles are global.

Source: NFIB Small Business Policy Guide (Washington, D.C., November 2000), 31.

1–55

Survival of GazellesSurvival of Gazelles

• How many gazelles survive?How many gazelles survive? The simple answer is “none.” Sooner or later, all The simple answer is “none.” Sooner or later, all

companies wither and die.companies wither and die.

• The Common Myth of Failure:The Common Myth of Failure: 85% of all firms fail in the first year85% of all firms fail in the first year—i—in actuality, about n actuality, about

half of all start-ups last between 5 and 7 years.half of all start-ups last between 5 and 7 years.

1–56

Entrepreneurial Firms’ ImpactEntrepreneurial Firms’ Impact

• Entrepreneurial components of the U.S. Entrepreneurial components of the U.S. Economy:Economy:

1.1. Large firms have increased profitability by returning to Large firms have increased profitability by returning to their “core competencies through restructuring and their “core competencies through restructuring and downsizing.downsizing.

2.2. New entrepreneurial companies have been New entrepreneurial companies have been blossoming in new technologies and new markets.blossoming in new technologies and new markets.

3.3. Thousands of smaller firms established by women, Thousands of smaller firms established by women, minorities, and immigrants have strengthened the minorities, and immigrants have strengthened the economy.economy.

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Entrepreneurial Firms’ Impact Cont’d)Entrepreneurial Firms’ Impact Cont’d)

• Entrepreneurial firms make two Entrepreneurial firms make two indispensable contributions to an economy:indispensable contributions to an economy:

1.1. They are an integral part of the renewal process that They are an integral part of the renewal process that pervades and defines market economies.pervades and defines market economies.

2.2. They are the essential mechanism by which millions They are the essential mechanism by which millions enter the economic and social mainstream of society.enter the economic and social mainstream of society.

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21st Century Trends in Entrepreneurship 21st Century Trends in Entrepreneurship ResearchResearch

Venture Financing

Social Entrepreneurship

Corporate Entrepreneurship

Trends in Entrepreneurship

Research

Entrepreneurial Cognition

Global Entrepreneurial

Movement Family

Businesses

Women and Minority

Entrepreneurs

Entrepreneurial Education

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21st Century Trends in Entrepreneurship 21st Century Trends in Entrepreneurship ResearchResearch

• Major Research Themes:Major Research Themes: Venture FinancingVenture Financing: venture capital and angel capital financing : venture capital and angel capital financing

and other financing techniques strengthened in the 1990s.and other financing techniques strengthened in the 1990s.

Corporate EntrepreneurshipCorporate Entrepreneurship and the need for entrepreneurial and the need for entrepreneurial cultures has drawn increased attention.cultures has drawn increased attention.

Social EntrepreneurshipSocial Entrepreneurship has unprecedented strength within the has unprecedented strength within the new generation of entrepreneurs.new generation of entrepreneurs.

Entrepreneurial CognitionEntrepreneurial Cognition is providing new insights into the is providing new insights into the psychological aspects of the entrepreneurial process.psychological aspects of the entrepreneurial process.

Women and Minority EntrepreneursWomen and Minority Entrepreneurs appear to face obstacles appear to face obstacles and difficulties different from those that other entrepreneurs face.and difficulties different from those that other entrepreneurs face.

The The Global Entrepreneurial MovementGlobal Entrepreneurial Movement is increasing. is increasing.

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21st Century Trends… (cont’d)21st Century Trends… (cont’d)

• Major Research Themes (cont’d):Major Research Themes (cont’d): Family BusinessesFamily Businesses have become a stronger focus of research. have become a stronger focus of research.

Entrepreneurial EducationEntrepreneurial Education has become one of the hottest topics has become one of the hottest topics in business and engineering schools throughout the world.in business and engineering schools throughout the world.

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Key ConceptsKey Concepts

• EntrepreneurshipEntrepreneurship A process of innovation and new-venture creation A process of innovation and new-venture creation

through four major dimensions—individual, through four major dimensions—individual, organizational, environmental, process—that is aided organizational, environmental, process—that is aided by collaborative networks in government, education, by collaborative networks in government, education, and institutions.and institutions.

• EntrepreneurEntrepreneur A catalyst for economic change who uses purposeful A catalyst for economic change who uses purposeful

searching, careful planning, and sound judgment searching, careful planning, and sound judgment when carrying out the entrepreneurial process.when carrying out the entrepreneurial process.

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Key ConceptsKey Concepts

• Entrepreneurial ManagementEntrepreneurial Management The discipline of entrepreneurial management:The discipline of entrepreneurial management:

• Entrepreneurship is based upon the same principles.Entrepreneurship is based upon the same principles.

• It matters not who or what that the entrepreneur isIt matters not who or what that the entrepreneur is——an an existing large institution or an individual, for-profit business or existing large institution or an individual, for-profit business or a public-service organization, a governmental or non-a public-service organization, a governmental or non-governmental institution.governmental institution.

• The rules are much the same: things that work and those that The rules are much the same: things that work and those that don’t are much the same, and so are innovations and where don’t are much the same, and so are innovations and where to look for them.to look for them.