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EMElR30O. FUNOAMEffiALS OF ESREPRENEURSHIP
THEORIES & COHCPET OF ENTREPRENEURSHIP THEORIES & CONCPET OF ENTR€PRENEURSIiIP
THEORIES & CONCEPTS OF
ENTREPRENEURSHIP
THEORIES & CONCEPT OF
ENTREPREN EU RSHIP S 99.9 j_o
I -O*bj
g ct ve s
i
At the end of the session, students
should be able to:
. understand the various theories and
Assoc, Prof. Dr Nawawi B Mohd Jan
oato'Dr. Adnan Alias concepts on entrepreneurship
. have a deeper understanding of the
^1 ine of
'|,
\
hQcrr4s I
(utt{pt trrrtregren e(rshiP
6) drclplrle
3 \
\
t1
EMEIR3OO FUilOAMEMA!3 OF EEREPENEURSHIE
EMETR3OO
I
.IHEORIES -FUNOAA€IAIS OF €MGPGNEURSBIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
&
THE EVOLUTION OF THE EVOLUTION OF
ENTREPRENEURSHIP THEORY ENTREPRENEURSHIP THEORY
Definition of an Entrepreneur : Definition of
'"An who " Entrepreneurship involves not only the
Richard pr_qcgss that leads to the setting up of a \
n term entrepreneur business entity but also the expansion
is a French word first coined by Richard and development of an on going
Cantillon. concern.The study of entrepreneurship
. ln Malaysia the term "usahawan" is is concerned with the entrepreneurial
used for entre behavior, the dynamics of business set
ur"
up and expansion and development.
I
, &*
a i J 'tli EI ''.,t'''
a " {
f
',.t
I
-tL_
4fTTOT^N . FIINO^MCMAI S OF TMREPREilIURSHIP
Efr/ETR3OO - FUNDAMENTALS OF EMREPRENEURSBIP rxeoirE6 i cotlcper oF ENTREPRENEL'RsHlF
rrid.ir'Ei a cor'rcper oF ENTREPRENEURSHIP
THE EVOLUTION OF THE EVOLUTION OF
ENTREPRENEURSHIP THEORY ENTREPRE NEURSHIP THEORY
a
John Stuart M il ( 1 848 ) An entrepreneur IS
. Adam Smith (1776) - An entrepreneur IS
pri me mover n the private enterPri se. The
a person who acts as agent in entre prene ur IS the fourth fa ctor of production
transfo_rming demand into supply' after la n d ,ta bor and ca pital
. Jean Babtiste SaY (1803) - An . Carl Menger (1871) - The entrepreneur acts
entrepreneur is a Person who shifts as an economic agent who transforms
resources from an area of low resources into products and services'The
productivity to high productivity. entrepreneur transforms and gives added
value.
EfrER3OO-FUIOAME[ALS
THEORIES& CONCPET OF ENTREPRENEURSHIP
OF€MREP&NEURSHIP ESERIOO -FUNOASEfrA!S
THEORIES & CONCPET OF ENTREPRENEURSHIP -l
THE EVOLUTION OF THE EVOLUTION OF
ENTREPRENEURSHIP THEORY ENTREPRENEURSHIP THEORY
. Joseph Aloysius Schumpeter (1934) - An
. lbnu Khaldun (AbdulRahman Mohamed
entrepreneur is an innovator. The economy Khaldun) - The entrepreneur is seen as a
t moves through leaps and bounds and the
prime mover is the entrepreneurthrough the
knowledgeable individual and is instrumental
in the 4evelopment of a city-state where
enterprise will emerge.
process of creative destruction.
" Alfred Marshall (1936) - The process of . David McClelland - The entrepreneur is a
entrepreneurship or business development is person with a high need for achievernent.
incremental or evolutionary. lt evolves from This need for achievement is directly related
sole proprietorship to a public company. to the process of entrepreneurship.
2
, €M€TR3OO - FUNOAMEMALS OF EMREPRENEURSHIP EMETR3OO.TUNOAMEffiAIS OFEIREPREI€URSAIP
THEORIES & CONCPET OF ENTREPRENEURSHIP THEORIES & CONCPET OF ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
DEFINITION OF qffi=--*;)
' lt is more than mere creation of business
E rrtreprene u rsh p i9_q p-rocess of innovation
i
" Functional definition of entrepreneurs
and new venture ereation thrclugh four major offers the following definition:
dimensions *. individual, organizational,
environmental and process. ' Entrepreneurs are in-dividuals who
The entrepreneurship process is aided by actively form or lead their own business
collaborative networks in government, and nurture them for groMh and
edrrcation and institutions.
P16 C€gS i rlfi DYqtidn qr!
(YYj iMiviJuo(s fhof Thrrn
nw vLnL..i< crgq+'oD b.uine-ss
IpoJ
throu3 f., Fo,r. *qjof lnu,
,
ture Foe
e{ r mehsio4, .7' i nA; vflwl
A- "Ronizqrom(
t",rrron nenlo (
\\'proce€g $ro {t- .ry
--] EEER3OO-FUdOAMEEALS OF€frEPR€iEURSTIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
Efr ETR3OO - FUNOAilEIALS OF €SREPRENEURSHiP
IHEORIES & CONCPET OF ENTREPRENEURSHIP
THE IMPORTANCE OF ENTREPRENEURSHIP TO TI-E IMPORTANCE OF ENTREPRENEURSHIP TO
MALAYS]AN ECONOMY MALAYSIAN ECONOMY
Entrepreneurship is the symbol of business d. Entrepreneurship not only affect ourlives
steadfastness and achievement. Entrepreneurial through innovatibn but re'present the workino
i6r6irili<jri is critical to economic growth. future for many of us due to lays off bv"laroe"
grganizition ahd shrinking of i6b opportun'ities
Entrepreneurship may affect our future in many tor graduates.
ways:
a. lrypy4lr.vg crgalion of opportunity IS to creation of
Example: Portable phones linked to faxes and SMls have
laptop will tums cars, train, and airport terminal
economic
into offices.
br an-'r'r"'o., -cr-Dnoorv
ln^l;:il 7:,t:*
,rr.* *r,_.,*l'ij^
4
jr;ffi"o
..- ul-t4ri on "+ ^Lhr vuiu,a./ Luclr\<.rg
't- u<'jq Lorpovqbion jn
*- rn(.strraznt
J1
, :l
TH€ORIES & CONCPET OF ENTREPRENEURSHIP THEORIES & CONCPET OF ENTREPRENEURSI-IIP
THE IMPORTANCE OF ENTREPRENEURSHIP TO F=LAM IC E NTREPRENEU RSH IP
MALAYSIAN ECONOMY
ISLAMIC ENTREPRENEURSHIP FOCUS ON
EIGHT PRINCIPLES OF THOUGHTS :-
1 . Entrepreneurship is an i1tejlalpA{g of lslamic religion.
f. The entrepreneurial SMls provide services that the large
2. By virtue of human nature , the Moslem entrepreneurs
corporation has neglected or lack of economy of scale are 'kba]lfah'and have the reponsibilities develop
for the large corporation to serve. prosperity and sees business as part of ibadah or good
deed.
g. Contribution of SMls to Malaysian Economy - 3.Motivation - succ€ss in lslam is not merely measured
ln Malaysia the SMls employed 90% of the total labor by the end result but also the way and means of
force in manufacturing sector and contributed to about achieving them.
260/o of total value added in the sector. 4.lbadah - business activity is part of ibadah or "good
deed"
-)
kW ? p1'neitKs+ thon6rtr6,.
i) os inLeSrol P"rt+ oB Isia"l
2) born qs cq liPh
r\, otch\ave*
3J /$6iryqj'oil
qJ [usrlqss qs e Fqri af ils+do-h
5) iusi ncss is \/to r<zl-t
6).ts/cmrz E<-cnomic^ Sgslvrr
?-) Bui.feby 4t-0uran d, AodrtA
t)ol+"tp.e^-eqriTJ {f[ i cs
lJ PrvyAet "
E[ER3OO-FUNOAMESALS OFEffiEPRENEURSHIP E[6R3OO. FU!OAMEffiALS,OF EEGP*ilEURSHIP
THEORIES & CONCPET OF ENTREPREMEURSHIP THEORIES & CONCPET OF ENTREPRENEURSHIP
ISLAMIC ENTREPRENEURSHIP ISLAMIC ENTREPRENEURSHIP
I
5. Position of Entrepreneurship and business in lslam 7. Guiding Principles of lslamic Entrepreneurship is by
- lslam encouraged its ummah to venture into the al-Qura nand-al-Hadith
business . Prophet Muhammad S.A.W expounded
g..-out 10 source of rizque (reski) can be found in
8. Entrepreneurial Ethics based on exemplary
that concfti.Cts of Prophet Muhammad S.A.W
business.
6. lslamic Economic System - lslamic
Entrepreneurship should operate within the domain
of lslamic Economic system and act as the vehicle
towards global acceptance of lslamic Economic
Ssi6m.
4
\.
EMElR30O. FUNOAMEffiALS OF ESREPRENEURSHIP
THEORIES & COHCPET OF ENTREPRENEURSHIP THEORIES & CONCPET OF ENTR€PRENEURSIiIP
THEORIES & CONCEPTS OF
ENTREPRENEURSHIP
THEORIES & CONCEPT OF
ENTREPREN EU RSHIP S 99.9 j_o
I -O*bj
g ct ve s
i
At the end of the session, students
should be able to:
. understand the various theories and
Assoc, Prof. Dr Nawawi B Mohd Jan
oato'Dr. Adnan Alias concepts on entrepreneurship
. have a deeper understanding of the
^1 ine of
'|,
\
hQcrr4s I
(utt{pt trrrtregren e(rshiP
6) drclplrle
3 \
\
t1
EMEIR3OO FUilOAMEMA!3 OF EEREPENEURSHIE
EMETR3OO
I
.IHEORIES -FUNOAA€IAIS OF €MGPGNEURSBIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
&
THE EVOLUTION OF THE EVOLUTION OF
ENTREPRENEURSHIP THEORY ENTREPRENEURSHIP THEORY
Definition of an Entrepreneur : Definition of
'"An who " Entrepreneurship involves not only the
Richard pr_qcgss that leads to the setting up of a \
n term entrepreneur business entity but also the expansion
is a French word first coined by Richard and development of an on going
Cantillon. concern.The study of entrepreneurship
. ln Malaysia the term "usahawan" is is concerned with the entrepreneurial
used for entre behavior, the dynamics of business set
ur"
up and expansion and development.
I
, &*
a i J 'tli EI ''.,t'''
a " {
f
',.t
I
-tL_
4fTTOT^N . FIINO^MCMAI S OF TMREPREilIURSHIP
Efr/ETR3OO - FUNDAMENTALS OF EMREPRENEURSBIP rxeoirE6 i cotlcper oF ENTREPRENEL'RsHlF
rrid.ir'Ei a cor'rcper oF ENTREPRENEURSHIP
THE EVOLUTION OF THE EVOLUTION OF
ENTREPRENEURSHIP THEORY ENTREPRE NEURSHIP THEORY
a
John Stuart M il ( 1 848 ) An entrepreneur IS
. Adam Smith (1776) - An entrepreneur IS
pri me mover n the private enterPri se. The
a person who acts as agent in entre prene ur IS the fourth fa ctor of production
transfo_rming demand into supply' after la n d ,ta bor and ca pital
. Jean Babtiste SaY (1803) - An . Carl Menger (1871) - The entrepreneur acts
entrepreneur is a Person who shifts as an economic agent who transforms
resources from an area of low resources into products and services'The
productivity to high productivity. entrepreneur transforms and gives added
value.
EfrER3OO-FUIOAME[ALS
THEORIES& CONCPET OF ENTREPRENEURSHIP
OF€MREP&NEURSHIP ESERIOO -FUNOASEfrA!S
THEORIES & CONCPET OF ENTREPRENEURSHIP -l
THE EVOLUTION OF THE EVOLUTION OF
ENTREPRENEURSHIP THEORY ENTREPRENEURSHIP THEORY
. Joseph Aloysius Schumpeter (1934) - An
. lbnu Khaldun (AbdulRahman Mohamed
entrepreneur is an innovator. The economy Khaldun) - The entrepreneur is seen as a
t moves through leaps and bounds and the
prime mover is the entrepreneurthrough the
knowledgeable individual and is instrumental
in the 4evelopment of a city-state where
enterprise will emerge.
process of creative destruction.
" Alfred Marshall (1936) - The process of . David McClelland - The entrepreneur is a
entrepreneurship or business development is person with a high need for achievernent.
incremental or evolutionary. lt evolves from This need for achievement is directly related
sole proprietorship to a public company. to the process of entrepreneurship.
2
, €M€TR3OO - FUNOAMEMALS OF EMREPRENEURSHIP EMETR3OO.TUNOAMEffiAIS OFEIREPREI€URSAIP
THEORIES & CONCPET OF ENTREPRENEURSHIP THEORIES & CONCPET OF ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
DEFINITION OF qffi=--*;)
' lt is more than mere creation of business
E rrtreprene u rsh p i9_q p-rocess of innovation
i
" Functional definition of entrepreneurs
and new venture ereation thrclugh four major offers the following definition:
dimensions *. individual, organizational,
environmental and process. ' Entrepreneurs are in-dividuals who
The entrepreneurship process is aided by actively form or lead their own business
collaborative networks in government, and nurture them for groMh and
edrrcation and institutions.
P16 C€gS i rlfi DYqtidn qr!
(YYj iMiviJuo(s fhof Thrrn
nw vLnL..i< crgq+'oD b.uine-ss
IpoJ
throu3 f., Fo,r. *qjof lnu,
,
ture Foe
e{ r mehsio4, .7' i nA; vflwl
A- "Ronizqrom(
t",rrron nenlo (
\\'proce€g $ro {t- .ry
--] EEER3OO-FUdOAMEEALS OF€frEPR€iEURSTIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
Efr ETR3OO - FUNOAilEIALS OF €SREPRENEURSHiP
IHEORIES & CONCPET OF ENTREPRENEURSHIP
THE IMPORTANCE OF ENTREPRENEURSHIP TO TI-E IMPORTANCE OF ENTREPRENEURSHIP TO
MALAYS]AN ECONOMY MALAYSIAN ECONOMY
Entrepreneurship is the symbol of business d. Entrepreneurship not only affect ourlives
steadfastness and achievement. Entrepreneurial through innovatibn but re'present the workino
i6r6irili<jri is critical to economic growth. future for many of us due to lays off bv"laroe"
grganizition ahd shrinking of i6b opportun'ities
Entrepreneurship may affect our future in many tor graduates.
ways:
a. lrypy4lr.vg crgalion of opportunity IS to creation of
Example: Portable phones linked to faxes and SMls have
laptop will tums cars, train, and airport terminal
economic
into offices.
br an-'r'r"'o., -cr-Dnoorv
ln^l;:il 7:,t:*
,rr.* *r,_.,*l'ij^
4
jr;ffi"o
..- ul-t4ri on "+ ^Lhr vuiu,a./ Luclr\<.rg
't- u<'jq Lorpovqbion jn
*- rn(.strraznt
J1
, :l
TH€ORIES & CONCPET OF ENTREPRENEURSHIP THEORIES & CONCPET OF ENTREPRENEURSI-IIP
THE IMPORTANCE OF ENTREPRENEURSHIP TO F=LAM IC E NTREPRENEU RSH IP
MALAYSIAN ECONOMY
ISLAMIC ENTREPRENEURSHIP FOCUS ON
EIGHT PRINCIPLES OF THOUGHTS :-
1 . Entrepreneurship is an i1tejlalpA{g of lslamic religion.
f. The entrepreneurial SMls provide services that the large
2. By virtue of human nature , the Moslem entrepreneurs
corporation has neglected or lack of economy of scale are 'kba]lfah'and have the reponsibilities develop
for the large corporation to serve. prosperity and sees business as part of ibadah or good
deed.
g. Contribution of SMls to Malaysian Economy - 3.Motivation - succ€ss in lslam is not merely measured
ln Malaysia the SMls employed 90% of the total labor by the end result but also the way and means of
force in manufacturing sector and contributed to about achieving them.
260/o of total value added in the sector. 4.lbadah - business activity is part of ibadah or "good
deed"
-)
kW ? p1'neitKs+ thon6rtr6,.
i) os inLeSrol P"rt+ oB Isia"l
2) born qs cq liPh
r\, otch\ave*
3J /$6iryqj'oil
qJ [usrlqss qs e Fqri af ils+do-h
5) iusi ncss is \/to r<zl-t
6).ts/cmrz E<-cnomic^ Sgslvrr
?-) Bui.feby 4t-0uran d, AodrtA
t)ol+"tp.e^-eqriTJ {f[ i cs
lJ PrvyAet "
E[ER3OO-FUNOAMESALS OFEffiEPRENEURSHIP E[6R3OO. FU!OAMEffiALS,OF EEGP*ilEURSHIP
THEORIES & CONCPET OF ENTREPREMEURSHIP THEORIES & CONCPET OF ENTREPRENEURSHIP
ISLAMIC ENTREPRENEURSHIP ISLAMIC ENTREPRENEURSHIP
I
5. Position of Entrepreneurship and business in lslam 7. Guiding Principles of lslamic Entrepreneurship is by
- lslam encouraged its ummah to venture into the al-Qura nand-al-Hadith
business . Prophet Muhammad S.A.W expounded
g..-out 10 source of rizque (reski) can be found in
8. Entrepreneurial Ethics based on exemplary
that concfti.Cts of Prophet Muhammad S.A.W
business.
6. lslamic Economic System - lslamic
Entrepreneurship should operate within the domain
of lslamic Economic system and act as the vehicle
towards global acceptance of lslamic Economic
Ssi6m.
4
\.
