Entrepreneurship 2024 UNI3423 PDF

Successful Start-ups WPS 2 0 2 4 ENTREPRENEURSHIP UNI3423 Topic 1: Concept, theories Date:09072024 and forms of business You can enter a subtitle here if you need it...

Successful Start-ups WPS 2 0 2 4 ENTREPRENEURSHIP UNI3423 Topic 1: Concept, theories Date:09072024 and forms of business You can enter a subtitle here if you need it Table Of Contents 01 part 02 part 03 part 04 part Evolution of Characteristics Entrepreneuria Types and legal entrepreneurship of l mindset requirements concept entrepreneurs of busines You can enter a subtitle here if you need it 01 Thesis Defense Evolution of entrepreneurship concept You can enter a subtitle here if you need it Evolution of entrepreneurship concept Differentiate between entrepreneurs and 1 Richard salaried employees Cantillon (1755) Transforms demand to supply 2 Adam Smith (1776) Mover of resources from low to high 3 Jean productivity area Babtiste Say (1803) 4 4th factor of production. John Stuart Mil (1848) Evolution of entrepreneurship concept Adam Smith (1776) - An entrepreneur is a person who acts as agent in transforming demand into supply. Jean Babtiste Say (1803) - An entrepreneur is a person who shifts resources from an area of low productivity to high productivity. John Stuart Mill (1848) - An entrepreneur is a prime mover in the private enterprise. The entrepreneur is the fourth factor of production after land ,labor and capital. Carl Menger (1871) - The entrepreneur acts as an economic agent who transforms resources into products and services. The entrepreneur transforms and gives added value. Evolution of entrepreneurship concept Joseph Aloysius Schumpeter (1934) - An entrepreneur is an innovator. The economy moves through leaps and bounds and the prime mover is the entrepreneur through the process of creative destruction. Alfred Marshall (1936) - The process of entrepreneurship or business development is incremental or evolutionary. It evolves from sole proprietorship to a public company. David McClelland (1961) - The entrepreneur is a person with a high need for achievement. This need for achievement is directly related to the process of entrepreneurship Evolution of entrepreneurship concept Stevenson & Jarillo (1990) - Entrepreneurship is the process by which individuals pursue opportunities without regard to resources they currently control. 02 Traits Characteristics of entrepreneurs You can enter a subtitle here if you need it Characteristics of entrepreneur What do these entrepreneurs have in common? 03 Thesis Defense Entrepreneurial Mindset You can enter a subtitle here if you need it  Entrepreneurial Mindset Who is an entrepreneur? Risk taker who starts-up a business Opportunity recognition Resource Gathering PROFI Identifies and Turns opportunity into a business assembles resources T https://thestrategystory.co m/2022/06/20/grab-busine ss-model/ What entrepreneurs do Business Model Competitive advantage Revenue Profit 04 Law Forms ,Types of Business & Legal Requirements You can enter a subtitle here if you need it Types of business 1 Not-for-profit Organizations that provide goods and services without having a profit motive. 01 02 03 2 Goods-producing Business Not- Goods- Service create value by making tangible “things,” for- producin business g es profit business 3 Service Businesses create value by performing activities that deliver some benefit to customers Forms of business Private Sole Partnership Limited Proprietorship Company One-man 2 to 20 Limited 0 show partners liability 4 03 Sole Proprietorship Characteristics of Sole Proprietorship: Sole proprietorship is established, owned, funded and managed by only one person. Normally, it is run by one person and he may hire a few workers to help him with the business. Sole proprietorship is allotted under the Business Registration Act 1956 where this type of business is easily established and forms the highest number of registered businesses in Malaysia. The registration fee for a sole proprietor is only RM60. Examples of sole proprietorship: Mini markets, restaurants, convenient stores, burger kiosks, etc. Sole Proprietorship Partnership Characteristics of Partnership: A business that is registered under partnership has to have at least two persons and not more than 20 persons as partners. Generally, its legal responsibility to external parties is similar to sole proprietorship. However, the internal relationship between partners depends on the terms of the partnership agreement made between them. Partnership Partnership Agreement Partnership Agreement is a contract agreement between partners/parties. It shows that partners/parties have an intention to create a contract. The Business Registration Act 1956 does not specify that the formation of a partnership business requires a written agreement between partners. However, it is advisable for partners to have a Partnership Agreement in order to avoid or minimize dispute between partners. Partnership Agreement In the absence of a partnership agreement, the provisions of the Partnership Agreement is a contract agreement between partners/parties. It shows that partners/parties have an intention to create a contract. The Business Registration Act 1956 does not specify that the formation of a partnership business requires a written agreement between partners. However, it is advisable for partners to have a Partnership Agreement in order to avoid or minimize dispute between partners.Partnership Act 1961 will be applicable. Section 26 and 27 of the Act stipulates that: profit or losses are to be shared equally no interest is payable on a partner’s capital each partner is entitled to actively participate in the management of the business no partner is entitled to a salary for participating in the partnership business partners have the right to be paid based on their contribution to the business Partnership Agreement Daily normal things in business can be decided by the majority of the partners, but any changes that regularly occur need to be made with consensus from all partners. A partner may withdraw after getting the consent of the other partners. The introduction of new partner must have the unanimous consent of all existing partners. All business accounts books need to be kept at the main business premise. Partners are allowed to check through the books and they have the right to keep a copy of the books. Private Limited Company A private limited company is a company incorporated under the Companies Act 1965. The private listed companies are companies whose liabilities of its members are limited to the amount of shares held in the company. The following are a private limited company’s characteristics: It is recognized as a legal entity that is separate from founding members. Therefore, it can acquire and own property, it can sue and be sued in court of law. The life span of the company is not dependent upon the death or resignation of any of its members. The total number of members in a company must be at least two and it must not be more than fifty persons. Private Limited company Private limited company Legal requirements In Malaysia, the authority that manages and governs the establishment and registration of a business is The Companies Commission of Malaysia or commonly known as Suruhanjaya Syarikat Malaysia (SSM). SSM is a statutory body under the Ministry of Domestic Trade and Costs of Living. Through the SSM Act 2001, the Registrar of Companies (ROC) and Registrar of Businesses (ROB) were merged together under one management to make it more systematic and efficient. Legal Requirements Business legal and regulatory requirements are based on the laws of the country. The following are the hierarchy and legal scope of the laws that affect business activities in the country: The Constitution of Country. The article of the Malaysian constitution is the supreme law of the nation. It outlines the fundamental basis of the formation of Malaysia, the power and right of the various vested interests in the country and the basic individual right as a citizen of the country. Legal Requirements Federal Laws that are passed by act of Parliament. These laws are normally governed and enforced by various Ministries under the Federal Government. Examples of related ministries and agencies are: Ministry of IInvestment, Trade and Industry (MITI) Manufacturing Licence Ministry of Local Government Development Developer’s license Ministry of Home Affairs Immigration Department of Malaysia Ministry of Finance Royal Malaysian Customs Sales Tax Licence Ministry of Domestic Trade and Costs of Living Business registration Regal Requirements State enactments that are passed by the state legislative council in matters that are under state control like land, timber concession, water resources, mining, etc. Examples of related department responsible are: Land Office Land administration matters Forestry department Forestry and timber concession Legal Requirements By-laws that are approved by the local authority in matters that the local authority is given the power by the Federal and the State Government especially with regard to management and development of a local authority. Examples of related departments are: Local authority such as Kuala Lumpur City Hall License for business, etc. Development permit and issuance of certificate of fitness, etc. Legal Requirements Generally, the scope of business law is very wide, one has to be familiar with the laws that have immediate impact to his business such as: Registration of Businesses Act 1956, Company’s Act 1965, Employment Act1955, Children and Young Persons’ Act 1966, Occupational Safety and Health Act 1994, Factory and Machinery’s Act 1974 Industrial Relations Act 1967, EPF Act 1991, SOCSO Act 1969, Trade Union Act 1959, Legal Requirements There are also laws that govern his relationship with external parties such as: Contract Laws Sale of Goods Act Agency Laws Intellectual Properties Act Entrepreneurship WPS 2 0 X X THANK YOU AinonJ Date:09072024 You can enter a subtitle here if you need it