What Is Entrepreneurship

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What Is Entrepreneurship?

• Nature of Entrepreneurship
• It is a socio-economic phenomenon.
• Engine of economic growth
• Creator of wealth and employment.
• What is Entrepreneurship?
• It is a creative and innovative human act.
• Ability to create and build a vision from
  practically nothing.
• Vision requires willingness to take
  calculated risks.
• It is a discipline, hence it can be learned
  Peter Drucker

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Definition of Entrepreneurship
Entrepreneurship is the ability to create and
build a vision from practically nothing.
Fundamentally, it is a human, creative act. It is
the application of energy to initiating and
building an enterprise or organization, rather
than just watching or analyzing. This vision
requires a willingness to take calculated risks
both personal and financial, and then to do
everything possible to reduce the chances of
failure. Entrepreneurship also includes the
ability to build an entrepreneurial or venture
team to complement your (the entrepreneur) own
skills and talents. It is the knack for sensing
an opportunity where others see chaos,
contradiction, and confusion. It is possessing
the know-how to find, marshal and control
resources, often owned by others.
Professor Jeffrey
Timmons (1990)

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Entrepreneur Are Made and Not Born

• The entrepreneurial mystique? Its not magic,
  its not mysterious and it has nothing to do with
  the genes. It is a discipline. And like any
  discipline, it can be learned.
• Peter Drucker

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Why People Become Entrepreneurs?

• Definition of an entrepreneur French word
  entreprende meaning go between or enter to
  undertake. A person who undertakes to organize,
  manage and assume risks of business
• How people become entrepreneur ? By Necessity
  and Opportunity, Design and Default
• Triggered by Social Disruption or Interruption
• Entrepreneurs are created in good and bad
  economic times.
• Achievements and Financial Rewards for an
  Entrepreneur.
• Many begins but few make it.

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Who Are The Entrepreneurs?

• Paradigm shifters, innovators and opportunists
  creative destroyers
• Key change catalysts and agents
• Wealth and employment creators
• Economic engine drivers
• Key actors of the Malaysian Economy
• Entrepreneurs are made and not born
  entrepreneurial propensity
• You can be the entrepreneur - if you have what
  it
• takes
• People who like to be their own boss
• People who has experienced a social
  disruption?
• Necessity and opportunity entrepreneurs

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Entrepreneurial Traits (1)

• Most Important for Success
• Innovative Opportunistic
• Willingness to take risk
• Initiative
• Self reliance
• Perseverance (keep trying to achieve something)
• Need to achieve
• Self confidence

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Entrepreneurial Traits (2)

• Important for Success
• Leadership
• Competitiveness
• Good physical health
• Creative
• High level of energy
• Versatility

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Entrepreneurial Traits (3)

• Least Important for Success
• Ability to get along
• Patience
• Well organized
• Desire for money
• Tolerate uncertainty
• Need for power
• Need for affiliation

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Difference Between Entrepreneurship And Small
Business

• Entrepreneurship
• Innovation
• Fast growth
• Vision
• Employment creation
• Money making machine
• Higher risk

• Small Business
• Little innovation
• Static growth
• Little vision
• Family business
• Earning a livelihood
• Low or minimum risk

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Entrepreneurship StatisticsDo You Know?

• US Situation
• About 1 million businesses are formed each year
  in the US
• Between 70 to 80 failed the first year of
  start-up
• 10 to 20 last through the next 5 years
• Venture investment 110 success rate
• Venture capitalists expects between 5 to 10 times
  return
• Source US Statistics

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Entrepreneurship StatisticsDo You Know?

• 6 in a million with a high tech business idea
  eventually becomes a successful company that goes
  public / IPO.
• Fewer than 20 of the funded starts-up go public.
• Bankruptcies occur for 60 of the high tech
  companies that succeed in getting venture
  capital.
• Venture capital investors own a large part of the
  start-up by the time it goes public 70 of
  hardware companies, 60 of software companies and
  50 of internet companies.
• Source US Statistics

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Malaysian Setting Global Scenario
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• Mewujudkan masyarakat saintifik dan progresif,
  masyarakat yang mempunyai daya perubahan tinggi
  dan memandang ke hadapan, yang bukan sahaja
  menjadi pengguna teknologi tetapi juga penyumbang
  kepada tamaddun saintifik dan teknologi masa
  hadapan

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Malaysia Enterprising Culture And Nation

• Economic Paradigm Shifts 1950s to 2000s.
• Wawasan 2020
• Ministry for International Trade Investment -
  SMIDEC
• Ministry for Entrepreneurs Co-0perative
  Development.
• Multimedia Super Corridor 7 Flagships.
• MSC Status Privileges Incentives.
• Strong Economic Growth Social Innovation
• Rapid Infrastructure Development.
• Industry Promotion of Entrepreneurship
  Enterprise 50 Awards, Ernst Young Malaysian
  Entrepreneur of the Year Award, Venture 2002,
  MSC-IHL Business Plan Competition, MAVCAPs
  Cradle Investment Programme

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MSC Flagship Applications
Smart Schools
Multipurpose Card
Telehealth
Electronic Government
Technopreneur Development
RD Cluster
Borderless Marketing Centre
Worldwide Manufacturing Web
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Malaysia Economic Transformation Drivers
Source Malaysias National Economic Action
Council
Knowledge-based
Knowledge-driven
KNOWLEDGE BASED / INTELLECTUAL CAPITAL
High-tech Manufacturing Services
HIGH TECHNOLOGY / SERVICES
Productivity-driven
Medium-tech Manufacturing Services
Investment-driven
Assembly-type Manufacturing
TECHNOLOGY / FOREIGN DIRECT INVT
Labour-driven
INDUSTRIAL / IMPORT SUBSTITUTION
Primary Commodities
Labour-driven
AGRICULTURE / PRIMARY COMMODITY
1996
1960
1995
1970
1980
2005
2020
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NITA Vision
Economic
ICT as means
Social
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Strategic Framework
For balanced development through innovation, the
ICT4D Framework shown, which draws on the
principles highlighted thus far, can be used as a
guide.
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Framing the Strategic ICT RD Agenda Strategic
Intent

• Innovation for WEALTH CREATION
• All sectors of the Malaysian economy creating
  value and wealth through successful participation
  in the emerging knowledge-driven global economy
• Key focus Knowledge-driven economy
• Innovation for BALANCED SOCIETAL DEVELOPMENT
• Inclusive community development through provision
  of life changing ICT applications
• Key focus Knowledge society
• Innovation for GOOD GOVERNANCE
• Foster form of accountability and transparency in
  the process of governance that enhance the
  quality of life of Malaysians
• Key focus Participating in governance for
  quality of life

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