Lec 2

• Entrepreneurial activities


  Producing goods and services for human needs, selling, trading or exchanging of goods
• Entrepreneurship development is recognized as an important catalyst that can spur economic growth and prosperity especially in countries that practise free market economy
• Entrepreneurship


  A process of identifying the opportunity, converting the opportunity into marketable products or services using creative and innovative means, creates value and wealth to the society
• Entrepreneur


  Individuals who undertake the entrepreneurial process
• Entrepreneur


  A pioneer towards the success of a business activity (Entrepreneur originated from a french word "entreprendre", which means taking responsibility or to try something new)
• Entrepreneurship


  A dynamic process to create wealth by an individual/s who are taking risk in money, time and career commitment
• Entrepreneurship


  The business process that may comprise several entrepreneurial activities which might differ from one organization to the other
• Corporate entrepreneurship


  • Entrepreneurial activities carried out in large corporations which have to continually expand and diversify in order to sustain its existence by creating new products or services to their customers
  • Introduction of the entrepreneurial culture and process to instigate renewal or innovation in the organization, explore research, take calculated risks and invest in new promising areas, create a working environment that can tolerate experimentation, uncertainty, risk and failures
• Private or independent entrepreneurship

  • The entrepreneurial activities of private or independent firms where the entrepreneurship process is most prevalent
  • Identification of a business opportunity, setting-up of the business entity, growing the business to a higher level, 'planning for the harvest' strategy
• Intrapreneurship


  An innovative corporate management strategy that encourages employees within an organization to create new product ideas
• Intrapreneur


  A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation
• Social entrepreneurship


  • Entrepreneurial activities carried out by social enterprises, NGOs and charitable organizations
  • Recognition of a social problem, application of the entrepreneurial approach to organize, create and manage a venture to achieve the social objectives or social return on investment (ROI )
• Social entrepreneurship projects

  • Economic based social entrepreneurship project by the Grahmeen Bank in Bangladesh whose objective is to provide easy and cheap credit to poor women who are involved in micro business
  • Students in Free Enterprise (SIFE), Society for the World Wild Life Protection (WWF), Society for welfare and aid for unfortunate groups like orphans, Palestinians, aborigines, urban and rural poor
  • Societies formed to cater to specific interests (Malaysian Nature Society, Environmental Protection Society of Malaysia and Amnesty International (for protection of human rights))
• Public sector entrepreneurship


  • Entrepreneurial activities carried out by government-linked companies (GLCs) or state-owned enterprises
  • Majority of these companies were formed as part of the nation's privatization programme aimed at providing more efficient services to the people
  • State-owned enterprises such as the SEDCs are engaged in certain entrepreneurial activities through joint-ventures, equity participation as well as management buyouts and entrusted with the task of entrepreneurship development in their respective states
• Other variants of entrepreneurship

  • Gender entrepreneurship - entrepreneurial activities carried out by women or any entrepreneurship programme targeted to women
  • Political entrepreneurship - entrepreneurial activities carried out by various enterprises created by political parties as vehicles to source funds
  • Ethnic and sectarian entrepreneurship - entrepreneurial activities carried out by the various ethnic groups in the country i.e., certain ethnic groups are more entrepreneurial
  • Agriculture and technology entrepreneurship - entrepreneurial activities in agriculture and technology
• Academic entrepreneurship


  • Entrepreneurial activities in academic and research institutions mainly involve: Research and development of new products, processes, systems, materials, etc., Innovations, Intellectual property rights (e.g. patents, copyright, trademark), Commercialization through outright sale of IPs, technology licensing/through creation of new ventures
• Types of entrepreneurs


  • Corporate entrepreneurs
  • Independent entrepreneurs
  • Social entrepreneurs
  • Public entrepreneurs
  • Academic entrepreneurs
• Corporate entrepreneurs


  Managed large corporation usually public listed companies, typically hold the position of Chief Executive Officer or Managing Director and they are either employed or own shares in those corporations, also known as 'intrapreneurs' because they assume the exact role of entrepreneurs in managing the organizations, most are professionals
• Independent entrepreneurs


  Considered the pure type of entrepreneur, own and manage their own companies, invest and take risk upon any decision made and thus have complete control of the organization, generally exist in most SMEs in the country
• Social entrepreneurs


  Exist in social organizations or enterprises to achieve their social objectives and to sustain their organisation as an on going concern, function exactly as corporate entrepreneurs where they adopt entrepreneurship principles in managing their organizations, more concerned with achieving the social ROI rather than the financial ROI
• Public entrepreneurs

  Usually found in public sector organizations including government-linked companies and state-owned enterprises, function exactly as corporate entrepreneurs—applying the same entrepreneurship principles in managing organizations or companies, sometimes also known as 'intrapreneurs' since they usually do not own the companies
• Academic entrepreneurs


  Exist in most institutions of higher learning as well as in research and development organizations, usually involved in entrepreneurial activities that lead to the innovation and commercialization of R & D products or processes
• Other variants of entrepreneurs

  • Serial entrepreneurs - continuously start new ventures and sell off the ventures at a later stage, typically possess a higher level of entrepreneurial characteristics and assumes a higher level of risk, usually handsomely rewarded from the sale of successful ventures
  • Lifestyle entrepreneurs - usually start new ventures out of their passion rather than solely for profit by combining their personal interests and talents and the need to earn a living and probably create wealth along the way, develop and grow their businesses in order to make a sustainable living, most are self-employed and enjoy doing something that they love and at the same time achieve greater freedom through working for themselves
  • Nascent entrepreneurs - those who aspire to take up entrepreneurship as a career option but have yet to incorporate their own businesses but all preparations have been undertaken, have prepared business plans, seek financial assistance, undertaken market research and have registered their businesses with the authorities
  • Necessity entrepreneurs - involved in entrepreneurship activities not by their own choice, majority start up their own businesses out of necessity, usually as micro enterprises and some manage to develop and grow the businesses and become very successful
  • Technopreneurs - are technology savvy and earn a fortune using their expertise in the respective technologies, the development of new technology in high growth areas like information technology, hardware and software for cellular phone based technology, e-commerce, e-government, biotechnology, environmentally friendly green technology, multi-media based technology, health and leisure-based technology, pharmaceuticals, application of nano-technology, etc. have created new opportunities for Malaysian technopreneurs
  • Agripreneurs - involved in entrepreneurial activities in the agriculture sector, i.e., planting and producing agriculture products for consumption or for further processing, other areas in the supply chain such as the downstream activities processing and packaging
  • Infoprenuers - utilize information as a commodity for sale, as information is powerful, infopreneurs sell information to those who want to use the information as a business strategy or simply for marketing and promotional activities
  • Edupreneurs - involved in setting up educational institutions privately with the objective to make a profit, eg: owners of tuition centres/private colleges are usually known as edupreneurs, operate their institutions as business organizations and apply similar entrepreneurship principles as in any other corporations
• Entrepreneurships entail seeking, identifying, evaluating entrepreneurial opportunities, working out a business plan to mobilize resources and teams, and executing the business plan with commitment, determination and perseverance to achieve entrepreneurial objectives
• Entrepreneurial activity is an important element in a nation's economic progress. Through these activities, entrepreneurs provide products, services and employment opportunities and help to raise the standard of living of the people of a country
• Career commitment


  Entrepreneurship requires a long-term commitment to building and growing a business, which can impact an individual's career trajectory and personal life.
• Time


  Entrepreneurship requires a significant time commitment, often at the expense of personal time and work-life balance.
• Money


  Entrepreneurs need to invest their own money or secure funding from external sources to start and grow their business.
• Taking risk


  Entrepreneurship involves taking financial, temporal, and career risks, including investing money, time, and effort into a business venture with no guarantee of success.
• Create wealth


  Entrepreneurship aims to create financial wealth, but can also lead to personal wealth in terms of skills, experiences, and connections.
• Dynamic process


  Entrepreneurship is not a one-time event, but an ongoing process that involves continuous innovation and adaptation.
• Individual/s


  Entrepreneurship can be pursued by a single individual or a group of individuals working together.