Chapter 1 The foundation of Entrepreneurship
Definition
Who creates a new business in the face of risk and uncertainly for the purpose of achieving profit and growth by identifying opportunity and assembling the necessary resources to capitalize on them.
Characteristic of Entrepreneurs
Desire for responsibility: Need to responsibility to all (whatever happen to the business)
High level of energy: Need to spend more time to his business
Desire for immediate feedback: Get the feedback to improve
Value achievement over money: To get a good achievement to his business
Self-reliance: Depend on the owner decision
Types of Entrepreneur
Necessity entrepreneurs: A person who loss a job or dissatisfaction with his current career and start a new business
Serial entrepreneurs: A person start several businesses one after another rather than beginning one venture and staying focused on it for many years. They may sell their business after they reach a certain level of maturity.
Opportunity entrepreneurs: A person who primarily because of creativity and innovation discover a opportunity to start a new business
Global Entrepreneurship Monitor (GEM) study
Men are twice as likely to start a business as women.
Most people see entrepreneurship activity as a good career choice
Age between 35 and 44
Benefit of Entrepreneurship
Reach your full potential: identifying your strengths and the activities you truly enjoy doing
Reap impressive profit: get higher income from entrepreneurship
Make a difference: make difference with others
Contribute to society and to be recognized for your efforts
Create your own destiny: take responsibility for your thoughts and actions and their outcomes.
Do what you enjoy and to have fun at it
Drawbacks of Entrepreneurship
Long hours and hard work: need to spend more time to manage a business
Lower quality of life until the business gets established: difficult to rest until the business gets better
Risk of losing your entire investment: Risk of losing the investment due to any changes
High level of stress: many things need to be resolved, such as paying off debts
Uncertainly of income: not always get the fixed income due to the uncertainly changes
Feeding the Entrepreneurial fire
Shift to a service economy: such as insurance and education
Technology advancements: a lot of technology such as laptop, mobile phone to set up a business
Entrepreneurial education: many entrepreneurship courses are offered at universities or colleges
Independent lifestyle: the only target is to gain the profit
Entrepreneurs as heroes: get a higher income
Cloud computing: via internet, to computing resources – application, servers, data storage, development tools, networking capabilities
Avoiding the pitfalls of small business failure
Cultural diversity of entrepreneurship
Copreneurs: two person coming the business
Corporate castoffs: the lay off the employee start their own business
Immigrant entrepreneurs: come to Malaysia from others country
Corporate dropouts: resign and be an entrepreneurs
Women entrepreneurs
Retiring baby boomers: retired person start a business
Young entrepreneurs
Develop a solid business plan
understand financial statement
Build a viable business model and test it
Set you business apart from the competition
Know your business in depth
Maintain a positive attitude