Module 1 Theories and Concepts

8/19/2019 Module 1 Theories and Concepts

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ENT300: Fundamentals of Entrepreneurship

Module 1

THEORIES & CONCEPT

OF ENTREPRENEURSHIP

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Lesson Outcome:

At the end of the session, students should

be able to:

1.Understand the various theories and

concepts on entrepreneurship

2.Have a deeper understanding of the

discipline of entrepreneurship

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THE EVOLUTION OF ENTREPRENEURSHIP THEORY

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Definition of Entrepreneurship:

Entrepreneurship involves not only the processthat leads to the setting up of a business entity

but also the expansion and developent of an ongoing concern .

!he study of entrepreneurship is concerned "iththe entrepreneurial behavior, the dynaics ofbusiness set up and expansion and developent.


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#

Afre! "#rsh# $%&'()

!he process of

entrepreneurship orbusiness developent is

increental or evolutionary.

$t evolves fro soleproprietorship to a public

copany.


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THE EVOLUTION OF

ENTREPRENEURSHIP THEORY

%

&efinition of an Entrepreneur :

%* RI+HARD +ANTILLON $%,--)

.* ADA" S"ITH $%,,()

'* /EAN 0A0TISTE SAY $%12')


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THE EVOLUTION OF


'


3* /OHN STUART "ILL $%131)

-* +ARL "EN4ER $%1,%)

(* /OSEPH ALOYSIUS S+HU"PETER

$%&'3)


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THE EVOLUTION OF


(


,* I0NU 5HALDUN

$A0DUL RAH"AN "OHA"ED 5HALDUN)

1* DAVID "++LELLAND


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)

* An entrepreneur is a person"ho underta+es to do a ob -Rich#r! +#ntion 1(%%/.

!he ter entrepreneur is a0rench "ord first coined byichard antillon.

$n alaysia the ter *usaha"an- is used for

entrepreneur.


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4

A!#m Smith $%,,() An entrepreneur is a person"ho acts as agent in

transforing deand intosupply.

/e#n 0#6tiste S#7 $%12')

An entrepreneur is a person "hoshifts resources fro an area of

lo" productivity to high productivity.


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/ohn Stu#rt "i $%131)

An entrepreneur is a prie over inthe private enterprise.

!he entrepreneur is the fourth factorof production after land ,labor andcapital.


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Factors of Production

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+#r "en8er $%1,%)

!he entrepreneur acts as an

econoic agent "ho transfors

resources into products andservices.

!he entrepreneur transforsand gives added value.


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13

/oseph Ao7sius Schumpeter $%&'3)

An entrepreneur is an innovator.

!he econoy oves throughleaps and bounds and the prie

over is the entrepreneur

through the process of

cre#ti9e !estruction


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1#

I6nu 5h#!un

$A6!u R#hm#n "oh#me! 5h#!un)

!he entrepreneur is seen as a+no"ledgeable individual and is

instruental in the developent

of a city6state "here enterprise

"ill eerge


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DEFINITION OF ENTREPRENEURSHIP

$t is ore than ere creation of business

Entrepreneurship is # process of

inno9#tion #n! ne 9enture cre#tionthrou8h four m#;or !imensions <

in!i9i!u#= or8#ni>#tion#=

en9ironment# #n! process

!he entrepreneurship process is aided bycollaborative net"or+s in governent,education and institutions.


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17

DEFINITION OF ENTREPRENEURS

7 0unctional definition of entrepreneurs

offers the follo"ing definition:

Entrepreneurs #re in!i9i!u#s ho

#cti9e7 form or e#! their on

6usiness #n! nurture them for 8roth

#n! prosperit7.


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THE IMPORTANCE OF

ENTREPRENEURSHIP

TO MALAYSIAN

ECONOMY

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THE I"PORTAN+E OF ENTREPRENEURSHIP TO

"ALAYSIAN E+ONO"Y

Entrepreneurship is the sybol of business

steadfastness and achieveent. Entrepreneurial

revolution is critical to econoic gro"th.

Entrepreneurship ay affect our future in any "ays:

$nnovative creation of opportunity

8ob opportunity9e" creation

ervice provider

ontribution to econoy


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"ALAYSIAN E+ONO"Y

%* Inno9#ti9e cre#tion of

opportunit7

Exaple: ;ortable phoneslin+ed to faxes and laptop "ill

turns cars, train, and airport

terinal into offices.


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"ALAYSIAN E+ONO"Y

.* /o6 opportunit7

Entrepreneurship not only

affect our lives throughinnovation but represent the

"or+ing future for any of us

due to lays off by large

organi


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"ALAYSIAN E+ONO"Y

'* Ne 9enture

Entrepreneurship is synonyous to creation of ne"

venture and sall businesses. $s have been

iportant contributors to local econoic gro"th.


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2


"ALAYSIAN E+ONO"Y

-* +ontri6ution to econom7

ontribution of $s to alaysian Econoy 6

$n alaysia the $s eployed 45= of the totallabor force in anufacturing sector and contributed

to about 2'= of total value added in the sector.


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ISLAMIC

ENTREPRENEURSHIP

2!


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2'

ISLA"I+ ENTREPRENEURSHIP FO+US ON

EI4HT PRIN+IPLES OF THOU4HTS :

%*Inte8r#tion : Entrepreneurship is an integral parts of

$slaic religion.

.*Hum#n n#ture: the osle entrepreneurs are

>+halifah? and have the reponsibilities develop

prosperity and sees business as part of ibadah or good

deed.

'*"oti9#tion: success in $sla is not erely easured

by the end result but also the "ay and eans of

achieving the.3*I6#!#h: business activity is part of ibadah or *good

deed-


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2(



-*Position of Entrepreneurship #n! 6usiness in

Is#m: $sla encouraged its uah to venture into

business . ;rophet uhaad .A.@ expounded that

4 out 15 source of ri


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2)



,*4ui!eine: Buiding ;rinciples of $slaic

Entrepreneurship is by the al6Curan and al6Hadith

1*E?emp#r7 con!uct: Entrepreneurial Ethics based onexeplary conducts of ;rophet uhaad .A.@


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7 $sla is a coplete "ay of life.7 !here is no separation bet"een business

and religion.7 $sla has its o"n entrepreneurship culture

and guiding principles based on the Al6

Curan and Hadith to guide businessoperation .

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%* ISLA"I+ ENTREPRENEURSHIP AS INTE4RAL

PART OF THE RELI4ION


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7 Dy virtue of the huan nature, the person

ust firstly be a usli, then an

entrepreneur.

7 He has the responsibility to perfor ‘ibadah’

and be a ‘khalifah’ . usli entrepreneur

should search for Bod?s blessings above all

other factors. A usli entrepreneur perfor

business not solely for profit, but above all, to

fulfill the ‘fardhu kifayah’ .

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.* HU"AN NATURE

$The fitr#h of hum#n 6ein8)


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7 ost entrepreneurs have the desire toachieve successful business venture.

7 !he successful path and eans for

achieving success for usli entrepreneursare uniue.

Success in $sla is not erely easured bythe end result, but also the eans and "ays

of achieving the.

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'* "OTIVATION


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SU++ESS FOR"ULA 0Y AL@URTU0I32

• l i v e l i h o o d t h a t a r e i n a c c o r d a n c e t o w h a t i s b e i n g o u t l i n e d b y A l l a h S W T a n d S y a r i a h .

Halal

• b e p l e a s e d a n d t h a n k f u l w i t h o n e ’ s e a r n i n gQanaah

• A s k i n g f o r t h e b l e s s i n g o f A l l a h i n p r o p o r t i o n t o o n e ’ s e x p e c t a t i o n

Taufi

• S p i r i t u a l h a p p i n e s s

Sa’adah

• W o r l d l y s u c c e s s s h o u l d a c t a s t h e b r i d g e t o t h e u l t i ! a t e s u c c e s s i n t h e l i f e h e r e a f t e r " p a r a d i s e # .

$annah


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evel of Fno"ledge evel of Taubat or repentence

evel of !eptation evel of Gbstacles evel of otivation

evel of Handicap evel of ;raise and !han+fulness

SEVEN STEPS TOBARDS A SU++ESS IN LIFE

A++ORDIN4 TO I"A" AL@4HACALI33


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POSSESSION OF BEALTH IS ALLOBED 0ASED

ON THE FOLLOBIN4 PRIN+IPLES:@

1. Allah s.".t is the absolute o"ner of

"ealth

2. Allah created "ealth in

abundance and sufficient for all

3. @ealth is created for an+ind

#. @ealth is entrusted to an+ind

3#


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$n $sla, involving in business is part of

ibadah through the fulfilent of fardhu

kifayah.

3%

3* I0ADAH


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POSITION OF 0USINESS AND ENTREPRENEUR

ISLA"I+ ENTREPRENEURSHIP "ODEL

Is#m Propose!

$0usiness Venture)

A#h Prep#re!

$F#ciities)

Is#m Outine!

$Rues #n! Re8u#tion)

A#h Promise!

$Re#r!)

E

A

"

P

L

E

E

A

"

P

L

E

3'


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$slaic Entrepreneurship should be in the

frae"or+ of $slaic Econoic yste andshould assist in establishing the

$slaic Econoic yste

3(

-* ISLA"I+ E+ONO"I+ SYSTE"


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Buidelines for $slaic Entrepreneurship

and business activities are "ide and

coprehensive based on Al6Curan and Al6Hadith.

3)

(* 4UIDIN4 PRIN+IPLES OF ISLA"I+

ENTREPRENEURSHIP


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!o prevent la


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Documents

Module 1 Theories and Concepts