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Questions and Answers
What is the broad categorization of the types of entrepreneurship as illustrated in Figure 1.4?
What is the broad categorization of the types of entrepreneurship as illustrated in Figure 1.4?
Different forms of organizations
What does entrepreneurship entail?
What does entrepreneurship entail?
Entrepreneurial activity is an important element in a nation’s economic progress as entrepreneurs provide products, services, and __________ opportunities.
Entrepreneurial activity is an important element in a nation’s economic progress as entrepreneurs provide products, services, and __________ opportunities.
employment
What is entrepreneurship?
What is entrepreneurship?
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Successful entrepreneurs always have a weak reason for becoming entrepreneurs.
Successful entrepreneurs always have a weak reason for becoming entrepreneurs.
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Who defined an entrepreneur as a person who acts as an agent in transforming demand into supply?
Who defined an entrepreneur as a person who acts as an agent in transforming demand into supply?
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Match the following characteristics with entrepreneurs:
- Creative, innovative, resourceful, and possess high level of initiative
- Willingness to work hard with commitment, determination, and perseverance
- Ability to take calculated risk and exhibit tolerance for ambiguity
- Skilful organizer and ability to manage problems
Match the following characteristics with entrepreneurs:
- Creative, innovative, resourceful, and possess high level of initiative
- Willingness to work hard with commitment, determination, and perseverance
- Ability to take calculated risk and exhibit tolerance for ambiguity
- Skilful organizer and ability to manage problems
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The Timmons Model of Entrepreneurial Process consists of Founder, Opportunity, Team, and ________.
The Timmons Model of Entrepreneurial Process consists of Founder, Opportunity, Team, and ________.
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What was the aim of the National Vision Policy (NVP) introduced in 2001?
What was the aim of the National Vision Policy (NVP) introduced in 2001?
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In what year did Malaysia achieve independence from the British?
In what year did Malaysia achieve independence from the British?
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The New Economic Policy (NEP) aimed at eradicating poverty and reducing racial economic imbalances.
The New Economic Policy (NEP) aimed at eradicating poverty and reducing racial economic imbalances.
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The "sons of the soil" refer to the indigenous people of Malaysia.
The "sons of the soil" refer to the indigenous people of Malaysia.
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What is the core principle of the New Economic Model (NEM)?
What is the core principle of the New Economic Model (NEM)?
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What is one of the key elements considered crucial for achieving the objectives of the NEM?
What is one of the key elements considered crucial for achieving the objectives of the NEM?
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Entrepreneurship in Higher Education is outlined in Shift 1 of the Malaysia Education Blueprint 2015–2025 (Higher Education).
Entrepreneurship in Higher Education is outlined in Shift 1 of the Malaysia Education Blueprint 2015–2025 (Higher Education).
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In facing economic uncertainties and volatility, Malaysia must turn to entrepreneurship as the key to move forward, speed up economic growth, drive job creation and pursue new sources of economic and social ____________.
In facing economic uncertainties and volatility, Malaysia must turn to entrepreneurship as the key to move forward, speed up economic growth, drive job creation and pursue new sources of economic and social ____________.
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Study Notes
Introduction to Entrepreneurship
- Entrepreneurship is crucial in countries with a free market economy, where entrepreneurial development is a key aspect of nation-building.
- Entrepreneurs are key players in providing products and services to consumers, identifying what is needed, wanted, or desired, and creating new products to meet those needs.
- Entrepreneurial activities are pillars of a nation's economic progress, growth, and prosperity.
Importance of Entrepreneurship
- A society with a great entrepreneurial culture will be more productive, competitive, and prosperous.
- Entrepreneurs improve product quality, reduce production costs, and find better ways to serve customers, thereby serving customers' needs more effectively.
- Entrepreneurs mobilize and allocate resources to where they are most needed, making them efficient resource allocators in a free market economy.
Definitions of Entrepreneurship and Entrepreneur
- Entrepreneurship is the activity of setting up a business or businesses, taking on financial risks in the hope of making a profit.
- The term "entrepreneur" was first used by Richard Cantillon in 1775 to mean "a person who undertakes to do a job".
- Different scholars have defined entrepreneurship and entrepreneurs in various ways, including:
- Adam Smith (1776): a person who acts as an agent in transforming demand into supply.
- Jean-Baptiste Say (1803): a person who shifts resources from an area of low productivity to high productivity.
- John Stuart Mill (1848): a prime mover in private enterprise economic activities, where an entrepreneur is the fourth factor of production.
- Carl Menger (1871): an economic agent who transforms resources into products and services and gives added value.
- Ibnu Khaldun (Abdul Rahman Mohamed Khaldun): a knowledgeable and skilled individual craftsman who is instrumental in the development of a city state.
- Joseph Schumpeter (early 1900s): an innovator who introduces new innovations to replace old products or old ways of doing things.
Entrepreneurial Process
- The Timmons Model of Entrepreneurial Process describes the four major necessary components in venture creation:
- Founder
- Opportunity
- Team
- Resources
- An entrepreneurial process involves seizing and acting on an opportunity, packaging a viable offering to customers, and using available resources to execute the project.
Characteristics and Attributes of Entrepreneurs
- Successful entrepreneurs have a strong reason or mission for becoming an entrepreneur.
- Common characteristics of entrepreneurs include:
- Creativity, innovation, resourcefulness, and high-level initiative.
- Willingness to work hard to achieve objectives with a high degree of commitment, determination, perseverance, and discipline.
- Ability to take calculated risks, exhibit tolerance for ambiguity, and accept failure.
- Possessing ability to think independently, high self-confidence, optimism, and belief in controlling one's own destiny.
- Opportunity orientation towards future goals, aspiration, and vision.
- Skilful organizer, ability to manage and solve problems, and communicative and persuasive ability to influence others.
Types of Entrepreneurship
- Broad categorization of types of entrepreneurship can be seen in different forms of organizations, such as small businesses, corporate entrepreneurship, and social entrepreneurship.
Summary
- Entrepreneurship involves seeking, identifying, evaluating entrepreneurial opportunities, working out a business plan, and executing the business plan with commitment, determination, and perseverance to achieve entrepreneurial objectives.
- Entrepreneurial activity is crucial in a nation's economic progress, providing products, services, and employment opportunities, and helping to raise the standard of living of the people of a country.
Entrepreneurship Development in Malaysia
- Malaysia achieved independence from the British in 1957 and made impressive progress in social and economic development, but benefits were not evenly distributed among ethnic groups.
- The Bumiputeras (indigenous people of Malaysia) were left behind in terms of economic fortunes and participation in commerce and industry compared to the Chinese and Indians.
Malaysian Progress after Independence
- The racial clash between Malays and Chinese in 1969 led to the introduction of the New Economic Policy (NEP) in 1971.
- The NEP aimed to eradicate poverty and racial economic imbalances through a two-pronged strategy: raising income levels and increasing employment opportunities, and restructuring Malaysian society to correct economic imbalances.
The New Economic Policy (NEP)
- The NEP introduced the Rukunegara principles, which called for a rejuvenated Malaysian society with a common value system that would transcend ethnic, cultural, and socio-economic differences.
- The NEP aimed to achieve national unity by eradicating poverty and restructuring society to correct economic imbalances.
The National Development Plan (NDP)
- The NDP was introduced in 1991, covering a ten-year period from 1991 to 2000.
- The NDP shifted the focus on poverty eradication strategy to addressing hard-core poverty, emphasizing employment opportunities, and rapid development of an active Bumiputera Commercial and Industrial Community (BCIC).
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 NVP introduced new policy directions, including developing Malaysia into a knowledge-based society, eliminating poverty, and achieving effective Bumiputera participation and equity ownership.
The New Economic Model (NEM)
- The NEM was formulated by the National Economic Advisory Council (NEAC) and aimed to make Malaysia a developed nation by 2020.
- The NEM's core principles are high income, inclusiveness, and sustainability, and its aims include creating a market-led, well-governed, regionally integrated, entrepreneurial, and innovative economy.
Entrepreneurship in Higher Education
- The Malaysian government recognizes the need to encourage an entrepreneurial culture and develop graduates who are entrepreneurial in their thinking.
- The Ministry of Higher Education has introduced initiatives to enhance entrepreneurship education and shift the mindset of Malaysia's younger generation from "Job Seekers" to "Job Creators".
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Description
This chapter introduces students to entrepreneurship, its importance to national economy, and discusses the definition of entrepreneurship, characteristics, and types of entrepreneurship.
