module 1 theories and concepts
TRANSCRIPT
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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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THE EVOLUTION OF ENTREPRENEURSHIP THEORY
#
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
ENTREPRENEURSHIP THEORY
'
&efinition of an Entrepreneur :
3* /OHN STUART "ILL $%131)
-* +ARL "EN4ER $%1,%)
(* /OSEPH ALOYSIUS S+HU"PETER
$%&'3)
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THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
(
&efinition of an Entrepreneur :
,* I0NU 5HALDUN
$A0DUL RAH"AN "OHA"ED 5HALDUN)
1* DAVID "++LELLAND
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THE EVOLUTION OF ENTREPRENEURSHIP THEORY
)
* 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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THE EVOLUTION OF ENTREPRENEURSHIP THEORY
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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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THE EVOLUTION OF ENTREPRENEURSHIP THEORY
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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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THE EVOLUTION OF ENTREPRENEURSHIP THEORY
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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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THE EVOLUTION OF ENTREPRENEURSHIP THEORY
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/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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THE EVOLUTION OF ENTREPRENEURSHIP THEORY
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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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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THE I"PORTAN+E OF ENTREPRENEURSHIP TO
"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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THE I"PORTAN+E OF ENTREPRENEURSHIP TO
"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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THE I"PORTAN+E OF ENTREPRENEURSHIP TO
"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
THE I"PORTAN+E OF ENTREPRENEURSHIP TO
"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(
ISLA"I+ ENTREPRENEURSHIP FO+US ON
EI4HT PRIN+IPLES OF THOU4HTS :
-*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)
ISLA"I+ ENTREPRENEURSHIP FO+US ON
EI4HT PRIN+IPLES OF THOU4HTS :
,*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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