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CHAPTER FIVE
Entrepreneurship &
Starting a Small Business
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) All Rights Reserved
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LEARNING OUTCOMES
In this chapter, you will learn to:
Explain the definition of entrepreneurship, corporate
entrepreneurship and intrapreneurship.
Identify the characteristics of entrepreneurs.
Explain the importance of entrepreneurship.
Discuss the advantages and disadvantages of
entrepreneurship.
Discuss on how to manage a small business.
Discuss entrepreneurship development in Malaysia.
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ENTREPRENEURSHIP
• Entrepreneurship can be defined as the process of
creating value by bringing together a unique
package of resources to exploit an opportunity.
• Entrepreneurship can be categorized into two and
both of these forms require entrepreneurial skills:
– Independent entrepreneurship
– Corporate entrepreneurship
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) All Rights Reserved
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CORPORATE
ENTREPRENEURSHIP
• Corporate entrepreneurship describes
entrepreneurial behavior inside the established
medium and large sized organizations.
• Related terms include organizational
entrepreneurship, intrapreneurship and corporate
venturing.
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) All Rights Reserved
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INTRAPRENEURSHIP
• Intrapreneurship involves attempts to take the mindset and
behaviours that external entrepreneurs posses and inculcate these
characteristic into the employees within an existing organization.
• A process by which individuals inside an organization are free to:
– Pursue opportunities without having to pay due regard to costs
and resources
– Engaging in new activities
– Departing from customary practices they are
free to pursue opportunities within the organization in a spirit of
entrepreneurship.
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DIFFERENCES BETWEEN A
BUSINESSMAN AND AN
ENTREPRENEUR
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ATTRIBUTES OF SUCCESSFUL
ENTREPRENEURS
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IMPORTANCE OF
ENTREPRENEURSHIP
• Entrepreneurship is able to provide great impact on a
country’s economy and society.
• The importance of entrepreneurship to the economy
and society was first articulated by Joseph
Schumpeter (1934), an Austrian economist.
• Entrepreneurship provides an impact on the strength
and stability of the economy in three ways:
– Innovation
– Job creation
– Globalization
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) All Rights Reserved
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ADVANTAGES AND
DISADVANTAGES OF
ENTREPRENEURSHIP
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MANAGING A SMALL BUSINESS
• For a business owner to succeed, the following
knowledge and skills are necessary:
– Planning business
– Financing business
– Knowing customers (marketing)
– Managing employees (human resource
development)
– Keeping records (accounting)
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BUSINESS PLAN
• A successful business plan includes the following
areas:
– Cover letter – Financial plan
– Executive summary – Capital required
– Company background – Location analysis
– Management team – Manufacturing plan
– Market analysis – Appendix
– Marketing strategy
BUSINESS MANAGEMENT: A Malaysian Perspective (Second Edition) All Rights Reserved
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ENTREPRENEURSHIP
DEVELOPMENT IN MALAYSIA
• Emphasis towards entrepreneurship development in
Malaysia begins from the New Economic Policy
(1971–1990) till the National Development Policy
(1990–2000) and Vision 2020.
• The government encourages entrepreneurship
development and provides recognition to entrepreneurs
who contribute to the development of the country.
• Ministry of Entrepreneurship Development and Co-
operation has been formed to manage and promote
Malaysia’s growth of entrepreneurship.
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ENTREPRENEURSHIP
DEVELOPMENT IN MALAYSIA (cont.)
• Following agencies formed to assist and guide new
and existing entrepreneurs :
Malaysian Entrepreneurship Development Centre (MEDEC)
Small and Medium Enterprises (SME) Development Programme by
SME Corp. Malaysia—formerly known as SMIDEC
MSC Technopreneur Development
Bahagian Latihan Keusahawanan by Kementerian Pembangunan
Usahawan dan Koperasi
MARA Entrepreneurial Development
Bahagian Pembangunan Usahawanan by Kementerian Kerja Raya
Pejabat MARA Negeri
Pusat Bimbingan Usahawanan
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BUSINESS SUPPORT SYSTEM
(BSS) FOR ENTREPRENEURS
BY MALAYSIAN AGENCIES
• The Malaysian government and private agencies are
supporting the small and medium businesses in
several ways in conducting their business:
– Technical assistance
– Financial assistance
– Marketing assistance
– Infrastructure assistance
– Information providers
– Research & Development (R&D)
– Training, seminars & workshops
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SUCCESSFUL ENTREPRENEURS
IN MALAYSIA
• Examples of successful entrepreneurs in Malaysia:
– Shafiq bin Supenah
– Tan Sri Anthony Francis Fernandes (Tony Fernandes)
– Tan Sri Syed Mokhtar Shah bin Syed Nor Al-Bukhary
– Robert Kuok
– Ananda Krishnan
– Teh Hong Piow
– Rozita Ibrahim
– Nikki Merz
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