ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
CHAPTER 1
THEORIES & CONCEPT
OF ENTREPRENEURSHIP
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THEORIES & CONCEPTS OF
ENTREPRENEURSHIP
Session Objectives:
At the end of the session, students should be able to;
understand the various theories and concepts on
entrepreneurship
have a deeper understanding of the discipline of
entrepreneurship
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
ENTREPRENEU
R
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
Definition of an Entrepreneur :
The term entrepreneur is a French word first coined
by Richard Cantillon.
An entrepreneur is a person who undertakes to do
a job Richard Cantillon (1755).
In Malaysia the term usahawan is used for
entrepreneur.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
Definition of Entrepreneurship:
Entrepreneurship involves not only the process
that leads to the setting up of a business entity but
also the expansion and development of an on
going concern. The study of entrepreneurship is
concerned with the entrepreneurial behavior, the
dynamics of business set up and expansion and
development.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
Adam Smith (1776) - An entrepreneur is a person
who acts as agent in transforming demand into
supply.
Jean Babtiste Say (1803) - An entrepreneur is a
person who shifts resources from an area of low
productivity to high productivity.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
John Stuart Mill (1848) - An entrepreneur is a
prime mover in the private [Link]
entrepreneur is the fourth factor of production
after land ,labor and capital.
Carl Menger (1871) - The entrepreneur acts as
an economic agent who transforms resources
into products and [Link] entrepreneur
transforms and gives added value.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
Joseph Aloysius Schumpeter (1934) - An
entrepreneur is an innovator. The economy
moves through leaps and bounds and the
prime mover is the entrepreneur through the
process of creative destruction.
Alfred Marshall (1936) - The process of
entrepreneurship or business development is
incremental or evolutionary . It evolves from
sole proprietorship to a public company.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
Ibnu Khaldun (Abdul Rahman Mohamed
Khaldun) - The entrepreneur is seen as a
knowledgeable individual and is instrumental in
the development of a city-state where
enterprise will emerge.
David McClelland - The entrepreneur is a
person with a high need for achievement. This
need for achievement is directly related to the
process of entrepreneurship.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
DEFINITION OF
ENTREPRENEURSHIP
It is more than mere creation of business
Entrepreneurship is a process of innovation
and new venture creation through four major
dimensions individual, organizational,
environmental and process.
The entrepreneurship process is aided by
collaborative networks in government,
education and institutions.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
DEFINITION OF
ENTREPRENEURS
Functional definition of entrepreneurs offers the
following definition:
Entrepreneurs are individuals who actively form or
lead their own business and nurture them for
growth and prosperity.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE IM P OR TAN C E O F EN TRE P R EN E UR S H IP
TO M ALAYSIAN EC O NO M Y
1.
Entrepreneurship is the symbol of business
steadfastness and achievement.
Entrepreneurial revolution is critical to
economic growth. Entrepreneurship may
affect our future in many ways:
a.
Innovative creation of opportunity
Example: Portable phones linked to faxes and laptop will
turns cars, train, and airport terminal into offices.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
T H E IM P O RTANC E O F EN T RE P RE N EU R SH IP TO
M A LAYS I AN EC ON OM Y
b.
Entrepreneurship not only affect our lives through innovation
but represent the working future for many of us due to lays
off by large organization and shrinking of job opportunities
for graduates.
c.
Entrepreneurship is synonymous to creation of new venture
and small businesses. SMIs have been important
contributors to local economic growth.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
T H E IM P O RTANC E O F EN T RE P RE N E UR SH IP TO
M A L AYS I AN EC ON OM Y
d. The entrepreneurial SMIs provide services that the
large corporation has neglected or lack of economy
of scale for the large corporation to serve.
e. Contribution of SMIs to Malaysian Economy In Malaysia the SMIs employed 90% of the total labor
force in manufacturing sector and contributed to
about 26% of total value added in the sector.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
ISLAMIC ENTREPRENEURSHIP
ISLAMIC ENTREPRENEURSHIP FOCUS ON
EIGHT PRINCIPLES OF THOUGHTS :1. Entrepreneurship is an integral parts of Islamic religion.
2. By virtue of human nature , the Moslem entrepreneurs are
khalifah and have the reponsibilities develop prosperity
and sees business as part of ibadah or good deed.
3. Motivation success in Islam is not merely measured by
the end result but also the way and means of achieving
them.
4. Ibadah business activity is part of ibadah or good deed
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
ISLAMIC ENTREPRENEURSHIP
5.
Position of Entrepreneurship and business in Islam
Islam encouraged its ummah to venture into business .
Prophet Muhammad S.A.W expounded that 9 out 10
source of rizque (reski) can be found in business.
6.
Islamic Economic System - Islamic Entrepreneurship
should operate within the domain of Islamic Economic
system and act as the vehicle towards global acceptance
of Islamic Economic System.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
ISLAMIC ENTREPRENEURSHIP
7.
Guiding Principles of Islamic Entrepreneurship is by the alQuran and al-Hadith.
8.
Entrepreneurial Ethics based on exemplary conducts of
Prophet Muhammad S.A.W.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
#ISLAMIC ENTREPRENEURSHIP AS AN
INTEGRAL PART OF THE RELIGION
Islam is a complete way of life. There is no
separation between business and religion.
Islam has its own entrepreneurship culture
and guiding principles based on the Al-Quran
and Hadith to guide business operation .
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
#HUMAN NATURE
(The fitrah of human being)
By virtue of the human nature, the person must
firstly be a Muslim, then an entrepreneur. He
has the responsibility to perform ibadah and be
a khalifah. Muslim entrepreneur should search
for Gods blessings above all other factors. A
Muslim entrepreneur perform business not
solely for profit, but above all, to fulfill the
fardhu kifayah.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
#MOTIVATION
What motivates Muslim entrepreneurs?
SUCCESS
Most entrepreneurs have the desire to achieve
successful business venture.
The successful path and means for achieving
success for Muslim entrepreneurs are unique.
Success in Islam is not merely measured by the
end result, but also the means and ways of
achieving them.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
SUCCESS FORMULA BY AL-QURTHUBI
Halal
livelihood that are in accordance to
what is being outlined by Allah
SWT
and syariah.
Qanaah be pleased and thankful with ones
earning
Taufiq
- Asking for the blessing of Allah in
proportion to ones expectation
Saadah - Spiritual happiness
Jannah Worldly success should act as the
bridge to the ultimate success in the
life hereafter (heaven).
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
SEVEN STEPS TOWARDS A SUCCESS IN LIFE
ACCORDING TO IMAM AL-GHAZALI
Stage of Knowledge
Stage of Taubat or repentence
Stage of Temptation
Stage of Obstacles
Stage of Motivation
Stage of Imperfections
Stage of Praise and Thankfulness
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
#IBADAH
In Islam, involving in business
is part of ibadah through the
fulfilment of fardhu kifayah.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
#ISLAMIC ECONOMIC SYSTEM
Islamic Entrepreneurship should
be in the framework of Islamic
Economic System and should
assist in establishing the Islamic
Economic System
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
POSSESSION OF WEALTH IS ALLOWED BASED
ON THE FOLLOWING PRINCIPLES:Allah s.w.t is the absolute owner of
wealth
Allah created wealth in
abundance and sufficient for all
Wealth is created for mankind
Wealth is entrusted to mankind
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
#GUIDING PRINCIPLES OF ISLAMIC
ENTREPRENEURSHIP
Guidelines for Islamic
Entrepreneurship and business
activities are wide and
comprehensive based on AlQuran and Al-Hadith.
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
MUSLIM ENTREPRENEURSHIP ETHICS
To prevent laziness
To eradicate fear
To search for legitimate ventures
To avoid forbidden sources of income and property
To show gratitude and thankfulness of whatever
has been acquired
To grow and develop capital and profit
To diversify business ventures
To avoid greediness
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE ETHICAL BEHAVIOR OF MUSLIM
ENTREPRENEURSHIP
To avoid malicious behavior
To avoid squandering
To avoid stinginess
To pay alms (zakat)
Trustworthy
To pray consistently
Tawakkal
Patience
Qanaah
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
#EXEMPLARY CONDUCTS OF GOOD MUSLIM
ENTREPRENEURS DURING THE PROPHET
MUHAMMAD S.A.W REIGN
Avoid using influence for self interest
Afraid of accumulated wealth
Leadership qualities in all aspects
Practice moderate way of life
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
POSITION OF BUSINESS AND ENTREPRENEUR
ISLAMIC ENTREPRENEURSHIP MODEL
Islam Proposed
(Business Venture)
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A
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P
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Allah Prepared
(Facilities)
Islam Outlined
(Rules and Regulation)
Allah Promised
(Reward)
E
X
A
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P
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E
ENT/ETR300 FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
ANY QUESTIONS?
