INTRODUCTION TO

ENTREPRENEURSHIP
ENTREPRENEUR &
ENTREPRENEURSHIP

Wage Employment or
Entrepreneurship ?
Entrepreneurship as a career in your own
business [YOB] rather than wage
employment [JOB].
You will be your own boss.

Wage Employment Vs
Entrepreneurship
Wage Employment

Entrepreneurship

Work for Others

Own Boss

Follow Instructions

Make own plans

Routine Job

Creative activity

Earning is fixed, never

negative

Can be negative sometimes,

generally surplus

Does not create wealth

Creates Wealth, contributes to

GDP

Can choose fromGovernment service; Public

Sector ; Private Sector

Can choose fromIndustry ;Trade or Service

Enterprise

DEFINITION :ENTREPRENEURS
an individual who actively form/lead their own
business & nurture them for growth & prosperity
(UiTm Entrepreneurship Group:2004)

is a person with a high need for achievement He is

energetic and a moderate risk taker.
(David McClleland :1961)

are innovators who use a process of shattering the

status quo of the existing products and services, to
set up new products, new services.
(Schumpeter :1934)

is a person who starts an enterprise. He searches for

change and responds to it
Entrepreneurs do not necessarily make right
decisions, they make their decisions right

What Is an Entrepreneur?
One who creates a new business in the
face of risk and uncertainty for the
purpose of achieving profit and growth by
identifying opportunities and assembling
the necessary resources to capitalize on
them.
(Zimmemer:2008)

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Chapter 1: Entrepreneurship

Characteristics of
Entrepreneurs
Desire for responsibility
Preference for moderate risk risk
eliminators
Confidence in their ability to succeed
Desire for immediate feedback
High level of energy
Future orientation serial entrepreneurs
Skilled at organizing
Value achievement over money

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Chapter 1: Entrepreneurship

Entrepreneurship
A process of creating & expanding
businesses that collectively form a force for
national development & societal prosperity
also a process of creating something new
& assuming the risk & reward.

Benefits/Advantages of
Entrepreneurship
The opportunity to:
Create your own destiny
Make a difference
Reach your full potential
Reap impressive profits
Contribute to society and to be
recognized for your efforts
Do what you enjoy and to have
fun at it
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Drawbacks(Disadvantages) of
Entrepreneurship

Uncertainty of income
Risk of losing your entire investment
Long hours and hard work
Lower quality of life until the business gets established.
High levels of stress
Complete responsibility
Discouragement

The Cultural Diversity of

Entrepreneurship

Young entrepreneurs
Women entrepreneurs
Minority-owned enterprises
Immigrant entrepreneurs
Part-time entrepreneurs
Home-based businesses
Family businesses
Copreneurial business
Corporate castoffs
Corporate dropouts

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Chapter 1: Entrepreneurship

Ten Deadly Mistakes of

Entrepreneurship
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Management mistakes
Lack of experience
Poor financial control
Weak marketing efforts
Failure to develop a strategic plan
Uncontrolled growth
Poor location
Improper inventory control
Incorrect pricing
Inability to make the entrepreneurial
transition

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Chapter 1: Entrepreneurship

Avoiding the Pitfalls of Small

Business Failure

Know your business in depth

Develop a solid business plan
Manage financial resources
Understand financial statements
Learn to manage people effectively
Keep in tune with yourself

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Chapter 1: Entrepreneurship

Difference Between Entrepreneur

& Entrepreneurship
Entrepreneur

Entrepreneurship

are tangible people

is an abstraction

is a person

is a process

the key individual central to outcome of complex socioentrepreneurship who

economic, psychological
makes things happen
and other factors
is the actor

is the act

An entrepreneur is the
catalyst who brings about
this change

Entrepreneurship is the
most effective way of
bridging the gap between
science and the market
place by creating new
enterprises