Week 3 - 19/9

Lecture notes
Key ideas
What are some keys ideas from week #2?
From lecture………………...
1.Entrepreneurship classes were requirement from cabinet to
UKM to faculty. Data shown that E. activities promotes
wealth creation, job creation and economic growth.

2.E. is a disciplined subject, can be learn. Not born with.

There is no E. gene.

3.There are many many approach to E.

4.E. is influenced by internal and external factor.

a.Internal ~ personality

b.External ~ cultural, gov. Support etc

more………………..
1.Some interesting stats from

a.gem consortium

b.Cultural index

2.Gem Consortium give some stats about E. activities in

Malaysia. This is nice to compare with other countries.

3.Cultural index ~ measure external factor. Some

interesting factors.
Tutorial
Key ideas?
keys……….
1.Dream it, do it. Need to have a dream. Write down.

2.Do SWOT, what is you good at and what is not good at.
Your strength.

3.8 steps to success ; passion, focus, work hard, etc. see

video.

4.E. profile. Give some idea what type you are.

a.Maker, mobilizer, magician, merchant,

Based on these ideas, you know what your strengths and your
E. type.
More ideas……....
1.Government effort to increase entrepreneurship among
graduates

http://youcanduit.mdec.my/
http://www.mdec.my/eusahawan/
https://mymagic.my/

https://www.facebook.com/eUsahawanMY/
...
https://www.facebook.com/MyMDEC/

https://www.openlearning.com/courses/programeusahawan

https://mymagic.my/en/mdec-launches-eusahawan-programme-to-accelerate-
digital-entreprenueurship/
https://www.mdec.my/

https://mymagic.my/

http://gsl.mit.edu/

http://gsl.mit.edu/startups/
Some interesting recent ideas
8 secret of success ~
http://www.ted.com/talks/richard_st_john_s_8_secrets_of_succe
ss

Grit ~
https://www.ted.com/talks/angela_lee_duckworth_grit_the_power
_of_passion_and_perseverance?language=en

a positive, non-cognitive trait based on an individual's

passion for a particular long-term goal or endstate, coupled
with a powerful motivation to achieve their respective
objective.
Recent idea…..
Mindset ~ Growth mindset ~ a growth mindset, people believe
that their most basic abilities can be developed through
dedication and hard work—brains and talent are just the
starting point. This view creates a love of learning and a
resilience that is essential for great accomplishment.
Virtually all great people have had these qualities.

https://www.youtube.com/watch?v=ElVUqv0v1EE
This idea of expanding mind is powerful. This mean
that you can learn anything and smarter.
Good online courses….
https://www.coursera.org/learn/mindshift

https://www.coursera.org/learn/learning-how-to-learn

https://www.youtube.com/watch?v=vd2dtkMINIw
1 more idea
According to Ericsson's research and logic, the sole reason you aren't a
virtuoso violinist, or an Olympic athlete, or another kind of world-class
performer, is that you haven't engaged in a process he calls "deliberate
practice."

deliberate practice involves stepping outside your comfort zone and trying
activities beyond your current abilities. While repeating a skill you've
already mastered might be satisfying, it's not enough to help you get better.
Moreover, simply wanting to improve isn't enough — people also need well-
defined goals and the help of a teacher who makes a plan for achieving them.

Put in about 10,000 hours of practice, and you'll become an expert.

In theory
Combine all these traits, we speculate that important traits for a successful
entrepreneurs are

○ Follow a success process or steps

○ Have grit

○ Do have open mindset or growth mindset

○ Involves deliberate practice

http://www.gemconsortium.org/
http://www.gemconsortium.org/country-profile/86

Malaysia is where finance and physical infrastructure to support entrepreneurship

are widely available. However, despite such positive factors, the country’s total
early stage entrepreneurial activity rate (TEA) is the second lowest in the region,
with only Japan having a lower rate.

However other factors such as bureaucracy and poor education and training have
impeded entrepreneurial growth.
The average entrepreneur in Malaysia is likely to be 35-44
years of age, more likely to be male than female, with an
upper secondary level of education and a mid-range household
income.

Key constraints are the lack of entrepreneurial education in

primary and secondary schools, national regulations (taxes
and bureaucracy), poor R&D transfer and market openness.

Furthermore, businesses started usually lack sustainability

and profitability due to a lack of entrepreneurial abilities
and skills.
In Malaysia there are many government-led initiatives headed
by experts which provide funding to entrepreneurs. Currently
there are 14 agencies working under 8 ministries that provide
grants for research and development (R&D) activities.

These initiatives are timely and crucial, with the GEM

results indicating that Malaysia lags behind both efficiency
and innovation driven economies where R&D transfer conditions
for entrepreneurship is concerned.

However, Malaysia’s early stage entrepreneurial activity rate

(TEA) has increased only marginally over 5 years.
The future challenge for Malaysia is to fix the
underperforming aspects of its entrepreneurial environment.
Gem report Malaysia(2015)
Total early-stage Entrepreneurial Activity (TEA) 2.93
GEM's most well-known index, representing the percentage of 18-64
population who are either a nascent entrepreneur or owner-manager of a new
business.

Established Business Ownership Rate 4.785

Estbbuyy
Percentage of 18-64 population who are currently owner-manager of an
established business, i.e., owning and managing a running business that has
paid salaries, wages, or any other payments to the owners for more than 42
months

Improvement-Driven Opportunity Entrepreneurial Activity: Relative 67.01

Prevalence
Teayyido
Percentage of those involved in TEA who (i) claim to be driven by
opportunity as opposed to finding no other option for work; and (ii) who
indicate the main driver for being involved in this opportunity is being
independent or increasing their income, rather than just maintaining their
income
Necessity-Driven Entrepreneurial Activity: Relative Prevalence 13.68
Percentage of those involved in TEA who are involved in entrepreneurship
because they had no other option for work

Total early-stage Entrepreneurial Activity for Male Working Age Population 2.86
Teayymal
Percentage of male 18-64 population who are either a nascent entrepreneur
or owner-manager of a new business (as defined above)

Total early-stage Entrepreneurial Activity for Female Working Age 3

Population
Teayyfem
Percentage of female 18-64 population who are either a nascent entrepreneur
or owner-manager of a new business (as defined above)
New Product early-stage Entrepreneurial Activity 17
Percentage of TEA who indicate that their product or service is new to at
least some customers

Entrepreneurial Intention 5.610

Futsupno
Percentage of 18-64 population (individuals involved in any stage of
entrepreneurial activity excluded) who intend to start a business within
three years

Entrepreneurship as Desirable Career Choice 39.28

Nbgoodyy
Percentage of 18-64 population who agree with the statement that in their
country, most people consider starting a business as a desirable career
choice

Fear of Failure Rate 27.13

Frfailop
Percentage of 18-64 population with positive perceived opportunities who
indicate that fear of failure would prevent them from setting up a busine
Know Startup Entrepreneur Rate 36.94
Percentage of 18-64 population who personally know someone who started a
business in the past two years

Perceived Capabilities 27.83

Suskilyy
Percentage of 18-64 population who believe to have the required skills and
knowledge to start a business

Perceived Opportunities 28.24

Opportyy
Percentage of 18-64 who see good opportunities to start a firm in the area
where they lived
Cultural index https://geert-
hofstede.com/malaysia.html
Big Break
Bygrave chapter 2 . entrepreneurial process
● Critical Factors for Starting a New Enterprise

● Evaluating Opportunities for New Businesses

● Determining Resource Needs and Acquiring Resources

● Profit Potential

● Ingredients for a Successful New Business

definition
An entrepreneur is someone who perceives an opportunity and
creates an organization to pursue it.

The entrepreneurial process includes all the functions,

activities, and actions that are part of perceiving
opportunities and creating organizations to pursue them.

?? Do peniaga pasar malam, penjual goreng pisang, penjual tudung seorang

entrepreneur?

=>

sme ~ small and medium enterprise

Peniaga kecil
entrepreneurial thinking link

● Ask Questions. remain curious to “find the gap” – the area

in the market where they have an opportunity to enter as a
business. “the ability to turn the unexpected into the
profitable.”

● excellent at improvisation. create something new and

different than others in the same industry.

● Be Open to Risk. “Observe, Orient, Decide, Act.”

● Be Ready to Fail. accept failure, they expect failure,

plan for failure, and learn from failure. perfection is
the enemy of entrepreneurs. “Making mistakes is healthy
and normal, […] Acknowledge your mistakes, figure out what
● Don’t Go It Alone. They do not work alone. A variety of
perspectives leads to innovative thinking in
entrepreneurially decision-making.

● Be Self-Driven. a sense of self-driven discipline, ready

to work and put in the hours each day. reliant on
themselves.
● Yes, entrepreneurship can be taught.

● students with the aptitude to start a business can become

better entrepreneurs.

● Success factors is similar to other endeavours / jobs /

things.
1.Critical Factors for Starting a New
Enterprise

● personal, sociological, organizational, and environmental

● New Report on Entrepreneurship Reveals 5 Key Insights

● http://www.forbes.com/sites/ericwagner/2013/02/27/new-
report-on-entrepreneurship-reveals-5-key-
insights/#6c41dbb5e3f9
a triggering event
● no better career prospects

● passed over for a promotion or even laid off or fired.

● a deliberate career choice

Where do would-be entrepreneurs get their
ideas?

● A person gets an idea for a new business through either

a deliberate search or a chance encounter.

● Whether or not he or she decides to pursue that idea

depends on factors such as alternative career
prospects,family, friends, role models, the state of the
economy, and the availability of resources.

● For some people, entrepreneurship is a deliberate career

choice.
Ideas
● Where do would-be entrepreneurs get their ideas?

● found that 57% of the founders got the idea for their new
venture in the industry they worked in and an additional
23% got it in a related industry.

● present employment that entrepreneurs will get most of

their viable business ideas.

● What factors influence someone to embark on an

entrepreneurial career? Like most human behavior,
entrepreneurial traits are shaped by personal attributes
and environment.
Personal Attributes
● There is no neat set of behavioral attributes that allows
us to separate entrepreneurs from non-entrepreneurs.

● A person who rises to the top of any occupation, whether

an entrepreneur or an administrator, is an achiever.
Granted, any would-be entrepreneur must have a need to
achieve, but so must anyone else with ambitions to be
successful.

● set of behavioral attributes for an entrepreneur success

is similar to those for want to success, regardless of
fields.

● A few of success attributes are success process, grit,

● It does appear that entrepreneurs have a higher internal
locus of control than non-entrepreneurs, which means that
they have a stronger desire to be in control of their own
fate.
The 10 Ds—The most important characteristics of a successful
Entrepreneur

Dream ~ have a vision and a ability to implement their dreams.

Decisiveness ~ don’t procrastinate. swiftness is a key factor in their
success.
Doers ~ implement it as quickly as possible.
Determination ~ total commitment. seldom give up.
Dedication ~ dedicated to their businesses. work tirelessly. Twelve-
hour days not uncommon.
Devotion ~ love what they do. Love sustains them when the going gets
tough.
Details ~ on top of the critical details.
Destiny ~ charge of their own destiny.
Dollars ~ a measure of success. if they are successful they will be
rewarded.
Distribute ~ distribute the ownership of their businesses with key
employees.
How do make perfume last longer?
How to make lecture more engaging?
Environmental Factors
● Perhaps as important as personal attributes are the
external influences on a would-be entrepreneur.

● The most famous region of high-tech entrepreneurship is

Silicon Valley.

● Because everyone in Silicon Valley knows someone who has

made it big as an entrepreneur, role models abound. This
situation produces what Stanford University sociologist
Everett Rogers called ‘‘Silicon Valley fever.’
Environmental Factors
● Knowing successful entrepreneurs at work or in your
personal life makes becoming one yourself seem much more
achievable.

● Indeed, if a close relative is an entrepreneur, you are

more likely to want to become an entrepreneur yourself,
especially if that relative is your mother or
Father.

● For example, Massachusetts Institute of Technology (MIT)

has produced numerous entrepreneurs among its faculty and
alums.
impact of Role Model
● An estimated 6,900 MIT alumni companies with worldwide
sales of approximately $164 billion.

● States currently benefiting most from jobs created by MIT

alumni companies.

● It has been estimated that half of all the convenience

stores in New York City are owned by Koreans.

● African Americans make up 12% of the U.S. population but

owned only 4% of the nation’s businesses in 1997. One of
the major reasons for that low number is the lack of
entrepreneurial role models.
● Know of any UKM alumni successful in entrepreneurship?
Other Sociological Factors
● Besides role models, entrepreneurs are influenced by
other sociological factors. Family responsibilities play
an important role in the decision to start a company.

● It is easy start a business when you are 25 years old,

single, and without many personal assets and dependents.

● It is a much harder decision when you are 45 and married.

And at 45+, if you fail as an entrepreneur, it will not
be easy to rebuild a career working for another company.
Sociological Factors
● Perhaps the ideal combination is a beginner’s mind with
the experience of an industry veteran. A beginner’s mind
looks at situations from a new perspective, with a can-do
spirit.

● A network of friends and business associates can be of

immeasurable help in building the contacts an
entrepreneur will need.

● Also, they will be working much longer hours and bearing

much more responsibility if they become self-employed. A
sure way to test the strength of a marriage is to start a
company that is the sole means of support for your
family.
2. Evaluating Opportunities for New
Businesses

● Let’s assume you believe that you have found a great

opportunity for starting a new business. How should you
evaluate its prospects?

● according to small business folklore, only 1 business in

10 will ever reach its 10th birthday.
Evaluating Opportunities for New
Businesses

● There are three crucial components for a successful new

business:

○ the opportunity

○ the entrepreneur (and the management team, if it’s a

high-potential venture)

○ the resources needed to start the company and make it grow.

The Timmons Model for Entrepreneurial Success
Timmon model
● The crucial driving force of any new venture is the lead
entrepreneur and the funding management team.

● the crucial ingredients for entrepreneurial success are a

superb entrepreneur with a first-rate management team and
an excellent market opportunity.

● In entrepreneurship, it is a question of recognizing a

good opportunity when you see one and having the skills
to convert that opportunity into a thriving business.

● At the center of the framework is a business plan, the

result of integrating the three basic ingredients into a
complete strategic plan for the new business.
What an incredible act of balance
What an incredible act
of balance

Lesson?

Focus
Small things matter
Practice
Goal
Dream
It is impossible?
Opportunity?
 opportunity resources entrepreneur Business plan

Jual dan hantar

nasi lemak
untuk pelajar

Jual goreng
pisang

Perkhidmatan
basuh baju

Perkhidmatan
photostat

Perkhidmatan
buat aturcara
utk pelajar
tahun 1
The Opportunity
● Perhaps the biggest misconception about an idea for a new
business is that it must be unique. Too many would-be
entrepreneurs are almost obsessed with finding a unique
idea.

● Almost any idea a would-be entrepreneur might have will

also have occurred to others. In fact, some of the most
revolutionary thoughts in the history of humankind
occurred to more than one person almost simultaneously.

● Generally speaking, these super-secret, unique ideas are

big letdowns when the entrepreneurs reveal them.
Idea
● So the idea in itself is not what is important. In
entrepreneurship, ideas really are a dime a dozen.

● Developing the idea, implementing it, and building a

successful business are the important things.
The Customer
● Many would-be entrepreneurs fail to think carefully
enough about who makes up the market for their product or
service.

● There is no market unless customers have a real need for

the product.

● Simply put, customers must perceive that the new business

will be giving them better value for their money than
existing businesses.

● proven need
The Timing
● Time plays a crucial
role in many potential
opportunities.

● VCR, DVD, rental of

movie

● Slimming Fad Fades Fast,

Inventories Balloon

● Al-jabbar?

● Business air sabun?

Then now
Video rental shop, CD pirate Download, streaming
pasar mlm

Cd lagu streaming

ATM Internet banking

cash Mobile pmt

lecture Youtube, streaming

Pizza eat-in delivery

teksi Hailing service, uber, grabtaxi

car Train, ktm, public transport

Brick and mortar online

Then now
diet ??

J-pop, m-pop k-pop

Cerita hantu (jgn pandang ?? action

belakang, …)

Tudung bawal? Tudung …?

Vitamin, supplement Back to nature, herba

The Entrepreneur and the Management
Team
● strong entrepreneurial and management skills.

● entrepreneurs should have experience in the same industry

or a similar one.

● If would-be entrepreneurs do not have the right

experience, they should either get it before starting
their new venture or find partners who have it.

● Second to industry know-how is management experience.

● Very few people measure up to the ideal.

Resources
● Successful entrepreneurs are frugal with their scarce
resources.

● They keep overheads low, productivity high, and ownership

of capital assets to a minimum.

● Minimize the amount of capital they need to start their

business and make it grow.
A side note
● https://www.pinterest.com/search/pins/?q=entrepreneurship
&rs=typed&term_meta[]=entrepreneurship%7Ctyped

● https://www.googleforentrepreneurs.com/
3. Determining Resource Needs and
Acquiring Resources

● Some resources are more critical than others.

● Items that are not critical should be obtained as

thriftily as possible.

● It is often more effective to subcontract the work.

● That way it doesn’t need to own or lease its own

manufacturing plant and equipment or to worry about
recruiting and training production workers. (e.g online
tudung?)
● An entrepreneur should first assess what resources are
crucial for the company’s success in the marketplace.
Some resources are more critical than others.

● If the company is making a new high-tech product,

technological know-how will be vital.

● A startup business never has enough money, so it must be

resourceful.
Startup Capital ~ initial money, modal
awal
● There are two types of startup capital: debt and equity.

● The vast majority of entrepreneurs start their businesses

by leveraging their own savings and labor.

● Apple’s story. Investment of $57,000 in 1978 was suddenly

worth $14 million,

● First, the entrepreneurs develop a prototype with

personal savings and sweat equity, or ownership earned in
lieu of wages.

● Then, a wealthy investor, invests some personal money in

● In most cases, after they have exhausted their personal
savings, entrepreneurs will turn to family, friends, and
acquaintances

● if their businesses fail, they lose both their savings

and their means of support.

● most businesses will never have the potential to go

public.

● Entrepreneurs should invest as little as possible to

start their businesses and make sure that their firms
will be able to pay them a ‘‘dividend’’ big enough to
yield an appropriate annual rate of return.

● For entrepreneurs, happiness is a positive cash flow. And

4. Ingredients for a Successful New
Business

● Rosabeth Kanter prescribed Nines Fs for a successful

business
Founders ~ every startup company must have a first-class
entrepreneur.
Focused ~ companies focus on niche markets. They specialize.
Fast ~ make decisions quickly and implement them swiftly.
Flexible ~ keep an open mind. They respond to change.
Forever-innovating ~ tireless innovators.
Flat Entrepreneurial ~ few layers of management as possible.
Frugal ~ overhead low and productivity high, keep costs down.
Friendly ~ friendly to their customers, suppliers, and
employees.
Fun ~ It’s fun to be associated with
● But no matter what you do, you probably won’t be able to
attain much success unless you have happy customers,
happy workers, and happy suppliers.

● Those that become successful and grow pay attention to

keeping them and nurturing them.

● The key to sustaining success is to remain an

entrepreneurial gazelle and never turn into a lumbering
elephant and finally a dinosaur, doomed to extinction.
Local success story
● http://www.skali.net/

● http://skalilagi.net/
Why would anyone will invest / or give
money for you to start a business?

● Long term view ~ be very successful

● Trust the team

● 2/3 out of 10 will be successful, and the 2 or 3 that is

successful will make up the loss from the other failures.

● Generate 10 ideas, maybe 2-3 maybe useful.

Invest in students? Do not know which one will be the next

‘jobs, gates or zuckerberg’.
Takeaways
● Entrepreneurship is a process.

● Timmon’s model : opportunity, resources, entrepreneur,

business plan, idea.

● Learn from successful role model.