Questions and Answers
Explain the importance of entrepreneurship in self-development.
Freedom, flexibility, self-improvement, and overcoming obstacles to achieve personal growth.
According to Richard Cantillon, an entrepreneur adds value by transforming _________.
goods
Define the term 'Entrepreneur'.
An individual who establishes a business and manages it to obtain profit and become successful.
What are some personal traits of entrepreneurs? (Select all that apply)
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How does entrepreneurship contribute to society/community development?
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Entrepreneurs are risk-takers.
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What is one of the benefits of entrepreneurship related to financial rewards?
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Entrepreneurship encourages entrepreneurs to practice patience, gratitude, and generosity.
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Entrepreneurship acts as the backbone of ______________ industries as they become suppliers of raw materials or component parts.
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What is the aim of the National Vision Policy (NVP) introduced in 2001?
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Which government reform aimed at eradicating poverty and racial economic imbalances in Malaysia?
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The New Economic Policy (NEP) started in 1971 to primarily address historical tourism in Malaysia.
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The ____ refer to the indigenous people of Malaysia who have been left far behind in terms of economic fortunes and participation.
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What are the aims of the New Economic Model (NEM) for Malaysia?
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Who envisions the Malaysian economy to be market-led, well-governed, regionally integrated, entrepreneurial, and innovative?
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The Malaysian government supports the growth of business community and start-ups through dedicated funding for Small and Medium Enterprises (SMEs); provision of support facilities such as incubators, advisory services, and training; special programmes, and funding for young ________.
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Shift 1 of the Malaysia Education Blueprint 2015–2025 aims to produce graduates who are entrepreneurial in their thinking.
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Study Notes
Entrepreneur and Entrepreneurship
- An entrepreneur is someone who undertakes the risks of a new enterprise, organizes, manages, and assumes the risks of the business to obtain profit and become successful.
- Entrepreneurship is the process of seeking business opportunities under conditions of risk, creating something new of value by devoting time and effort, and receiving monetary reward, satisfaction, and independence.
Differences between an Entrepreneur and a Small Businessman
- An entrepreneur is someone who innovates, takes risks, and creates something new, whereas a small businessman is someone who operates a business, but may not necessarily innovate or take risks.
Theories of Entrepreneurship
Economic Perspective
- Richard Cantillon (1775): Entrepreneur is someone who pays a certain price for a product to resell it, adding value by transforming the goods.
- Adam Smith (1776): Entrepreneur is someone who acts as an agent in transforming demand into supply.
- Alfred Marshall (1776): Entrepreneurship is an evolution that expands through time, from sole proprietorship to a public company.
- Jean-Baptiste Say (1803): Entrepreneur is someone who shifts resources from an area of low productivity to high productivity.
- John Stuart Mill (1848): Entrepreneur is a prime mover in private enterprise economic activities, the fourth factor of production after land, labor, and capital.
- Carl Menger (1871): Entrepreneur is an economic agent who transforms resources into products and services, adding value.
- Joseph Schumpeter (1934): Entrepreneur is an innovator who introduces new innovations to replace old products or old ways of doing things.
- Israel Kirzner (1978): Entrepreneur is someone who identifies an opportunity that has been overlooked by others and resources that are unexploited by most people around.
Psychological Perspective
- McClelland (1951): A high need for achievement drives people to become entrepreneurs.
- Julian Rotter (1954): Entrepreneurs tend to have a strong internal locus of control, believing in their own ability to control the consequences of their attempts and efforts.
Sociological Perspective
- Ibnu Khaldun (Abdul Rahman Mohamed Khaldun) (1406): Entrepreneurs have incentives for maximum efficiency and greater production through trade and specialization to gain profit.
- Max Weber (1917): Entrepreneur emerges from a low-income group, making an effort to improve the situation by involving themselves in various economic activities and venturing into business to earn a profit.
- Everett Hagen (1957): Entrepreneurship is an approach to general management that begins with opportunity recognition and culminates with the exploitation of opportunities.
Management Perspective
- Peter F. Drucker (1985): Entrepreneur always searches for change, responds to it, and exploits it as an opportunity.
- Donald L. Sexton & Nancy Bowman-Upton (1991): Entrepreneurship is an approach to general management that begins with opportunity recognition and culminates with the exploitation of opportunities.
- Dylan Jones-Evans (1995): Entrepreneur is a strategist and an opportunist.
- Donald F. Kuratko & Richard M. Hodgetts (2004): Entrepreneur is someone who undertakes to organize, manage, and assume the risk of a business.
- Robert D. Hisrich, Michael P. Peters, & Dean A. Shepherd (2005): Entrepreneurship is a dynamic process of creating something new with value.
Types of Entrepreneurs
- Intrapreneur: An entrepreneur within a large organization, with a strong desire to create something using their own initiative and creativity.
- Technopreneur: An entrepreneur who involves themselves in technological changes in producing goods and services for their organization.
- Copreneurs: An individual or a group in association who creates a new organization or innovates within an organization.
- Social Entrepreneurs: Someone who recognizes a social problem and often works through a non-profit organization, citizen group, or private or governmental sectors.
- Cyberpreneur: Someone who starts or runs a business in cyberspace using the internet (online-based business).
Personal Traits of Entrepreneurs
- Persistence and independence
- Self-confidence and creativity
- Organized and goal-oriented
- Visionary and risk-taking
- Honesty and integrity
- Commitment and hard work
- Ability to face reality and adapt to changes
Characteristics of Successful Entrepreneurs
- Ability to identify opportunities and take calculated risks
- Ability to tolerate tedium and rebound from disappointments
- Action-oriented and able to improve themselves and their business
- Ability to face reality and adapt to changes
- Independent and in control
- Ability to value their employees and create a positive work environment
Importance of Entrepreneurship
Self-Development
- Opportunity to gain unlimited financial rewards and improve standard of living
- Freedom and flexibility to manage one's own business and life
- Ability to identify opportunities and contribute to the society
- Fulfilment of spiritual obligations and practices
Family Development
- Opportunity to improve family income and living standards
- Ability to provide better education, health services, and a stable environment for family members
- Raise the honor and prestige of the family
- Serve as an example to others and inspire entrepreneurship in family members
Society / Community Development
- Improvement in standard of living and lifestyle
- Production of innovative products and services that benefit society
- Creation of job opportunities and reduction of unemployment
- Catalyst for national development and economic growth
- Contribution to national income through tax revenue, import, and export
National Development
- Encourages creation of a broader range of new products and services
- Venture into global market to enhance economic performance
- Generates income for the economy and supports heavy industries
- Contributes to pay customs duty and income tax to the government
- Supports spiritual development and inculcates patience, gratitude, and generosity.
Introduction to Entrepreneurship
- Entrepreneurship development in Malaysia is a crucial aspect of the country's economic history and challenges.
- Understanding the historical perspectives and government policies on entrepreneurship is necessary for Malaysians to contribute to nation-building.
Malaysian Progress after Independence
- Malaysia achieved independence from the British in 1957 and made impressive progress in social and economic development.
- However, the benefits of this progress were not evenly distributed among the different ethnic groups in Malaysian society.
- The Bumiputeras (indigenous people of Malaysia, including Malays, Kadazans, Ibans, and others) were left behind in terms of economic fortunes and participation in the modern sector of the economy, particularly in commerce and industry, compared to the Chinese and Indians.
The New Economic Policy (NEP)
- The NEP was introduced in 1971 as a national blueprint for Malaysia's socio-economic development.
- The government realized that poverty and racial economic imbalances were the root causes of the unhappiness that had precipitated the 1969 racial riots.
- The NEP aimed to eradicate poverty, raise income levels, and increase employment opportunities for all Malaysians, regardless of race.
- The policy also sought to accelerate the process of restructuring Malaysian society to correct economic imbalances, reducing and eventually eliminating the identification of race with economic function.
The National Development Plan (NDP)
- The NDP was introduced in 1991, covering a ten-year period from 1991 to 2000.
- The NDP emphasized shifting the focus on poverty eradication strategy to addressing hard-core poverty, and rapid development of an active Bumiputera Commercial and Industrial Community (BCIC).
- Despite progress, Bumiputera businesses remained small and proportionately fewer than non-Bumiputera businesses.
- At the end of the NDP period, the incidence of poverty among Malaysians was reduced from 16.5% in 1990 to 7.5% in 1999.
The National Vision Policy (NVP)
- The NVP was introduced in 2001, aiming to establish a progressive and prosperous Malaysian race where different ethnic groups live in harmony and engage in full and fair participation in the economy.
- The policy aimed to develop Malaysia into a knowledge-based society, eliminate poverty in remote areas, and increase the income and quality of life of those in the lowest 30% income category.
- The NVP also aimed to achieve effective Bumiputera participation and equity ownership of at least 30% by 2010.
The New Economic Model (NEM)
- The NEM was formulated by the country's National Economic Advisory Council (NEAC).
- The core principles of NEM are high income, inclusiveness, and sustainability.
- The NEM envisions Malaysia as a developed nation by 2020, with a high-quality life and high income resulting from economic growth that is both inclusive and sustainable.
- The NEM aims to create a conducive environment for entrepreneurship development of the people.
Entrepreneurship in Higher Education
- The Malaysian government recognizes the need to encourage a more entrepreneurial culture and develop graduates who are entrepreneurial in their thinking.
- The Ministry of Higher Education (MOHE) aims to produce holistic, entrepreneurial, and balanced graduates, as outlined in the Malaysia Education Blueprint 2015–2025 (Higher Education).
- The Ministry has introduced the entrepreneurship Action Plan of Higher Education Institutions 2016–2020 to enhance and strengthen the implementation of entrepreneurship education.
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Description
This quiz covers the basics of entrepreneurship, including defining key terms, understanding the differences between entrepreneurs and small businessmen, and exploring theories and types of entrepreneurs.
