Learning Objectives
After studying this chapter you should be ready to describe:
The Basic of Entrepreneurship and It’s Risks
Types of Business Organizations
Types Of Entrepreneur According To Business Activity
Identifying, Analyzing, Evaluating and Choosing Business Opportunity.
The Basic of Entrepreneurship and It’s Risks
THE DEFINITION OF ENTREPRENEUR
The word ‘entrepreneur’ was originated from a French word ‘entreprende’ which means “willing to take responsibility or willing to try something new”.
In Bahasa Malaysia, the root word for usahawan (entrepreneur) is usaha which means effort or willingness to do or complete a task.
According to the Oxford Dictionary; entrepreneur is defined as someone who is handling a business and taking business risk.
THE DEFINITION OF ENTREPRENEURSHIP
Entrepreneurship is the process by which individuals pursue opportunities without regard to resources they currently control (Barringer:2008).
According to Robert C. Ronstadt:
Entrepreneurship is the dynamic process of creating incremental wealth. This wealth is created by individuals who assume the major risks in terms of equity, time, and/or career commitment of providing value for some product or service. The product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing and allocating the necessary skills and resources.
Why Become an Entrepreneur?
Be Their Own Boss
Pursue Their Own Ideas
Pursue Financial Rewards
The Characteristic of an Entrepreneur
From The Entrepreneur And Entrepreneurship, an individual who wants to be an entrepreneur should be an ‘all-rounder’ person.
The characteristics to be an entrepereneur are as follows:
Good at seeking chances/opportunities.
Hard working
Never dream of making fast and easy money
Plan and manage strategically
Learn from mistakes and experience
Realise the importance of his/her contribution to the society and country
Avoid selfishness
Commited to his/her work
Always strive for excellence, focus on his/her work, confident, punctual and disciplined
Innovative and creative
Able to lead and manage
Responsible and trustworthy
Has a vision
Dare to take risk and never give up
Characteristic of Successful Entrepreneurs
SUCCESSFUL ENTREPRENEUR
1)Passion for the business
2)Product/customer focus
3)Tenacity despite failure
4)Execution intelligent
Common Myths About Entrepreneurs
Myths 1: Entrepreneurs Are Doers, Not Thinkers.
Myths 2: Entrepreneurs Are Born, Not Made.
Myths 3: Entrepreneurs Are Always Inventors.
Myths 4: Entrepreneurs Are Academic and Social
Misfits.
Myths 5: Entrepreneurs Must Fit the Profile.
Myths 6: All Entrepreneurs Need Is Money.
Myths 7: All Entrepreneurs Need Is Luck.
Myths 8: Entrepreneurship Is Unstructured and
Chaotic.
Myths 9: Most Entrepreneurial Initiatives Fail.
Myths 10: Entrepreneurs Are Extreme Risk
Takers……. The Gamblers.
Risks Of Being An Entrepreneur
1)Uncertainty of Income
2)Risk of Losing Entire Investment
3)Long Hours and Hard Work
4)High Stress Level
5)Difficulty in Obtaining Customers
6)Complete Responsibility
7)Difficulty in Obtaining Loans
8)Discouragement
Types of Business Organizations
*There are three popular forms of business ownerships which are:
1)Sole proprietorship
2)Partnership
3)Company
Sole Proprietorship
A sole proprietorship is an attractive form of legal status for a new business.
It is formed under the Business Registration Act 1956(Amendment 1978) and the Procedures of Business Registration 1957.
Solely owned and operated by an individual
Characteristics of a successful sole proprietorship.
1)Willing to accept sole responsibility for the firm’s performance(success or
failure).
2)Willing to work long hours.
3)Has strong organizational skills, leadership skills and communication skills
4)Has previous experience working in the industry in which he is competing in at
present.
Partnership
A partnership is formed under the Business Registration Act 1956 (Amendment 1978) and the Procedures of Business Registration 1957.
It is a business owned by at least two or more individuals but not exceeding 20 peoples.
Types of Partnership
General Partnership
All partners have unlimited liabilities.
They are personally liable for all obligations of the firm.
Limited Partnership
Some of the partners have limited liabilities, that is, they share the firm’s profit or losses but do not take an active role in managing the business.
Company
All companies in Malaysia are governed by the Companies Act 1965.
There are two types of companies which are:
a) Private limited companies.
Is a company limited by shares and owned by a group of people with at least two or more individuals but not exceeding 50 people.
The members’ personal liabilities are limited to the par value of their shares.
The name of a private limited company ends with the word ‘Sendirian Berhad’.
b) Public limited companies.
Is a company limited by shares with at least seven or more individuals and there is no maximum limit in terms of membership.
The company shows its status by using the word ‘Berhad’ or ‘Bhd’ after the company name.
The term ‘public’ means publicly held. The shares of stock can be easily purchased or sold by investors. The public can also buy and sell the shares of the company.
TYPES OF ENTREPRENEUR ACCORDING TO BUSINESS ACTIVITY
Self-Employed
- Manage own business
- Has a few workers
Examples: retailer, lawyer and doctor who owns a small law firm/small private clinic
Team Building
- They will always look forward to improve or expand their business
- Their business expansion depends on the number of workers
- In order to achive their goals, they work effectively in a team
Ex: A tailor shop which is expands and becomes a famous and fancy boutique.
2. Free Mover
They set up a company, then produce and sell their own products. In some cases, they use their name on the products as their business marketing strategy.
Ex: Ramly Burger, Tamin Soy Sauce, Aminah Hassan’s Sauce, Hanafi Bin Ramli (HBR) and others.
3. Franchiser
- a company or manufacturer that grants franchises
- they develop effective business using branches in different location
Ex: Kentucky Fried Chicken, Pizza Hut, Mc Donalds, Ayamas, Sen Heng, Restoran Nasi Kandar Kayu, Radix Fried Chicken
4. Large Enterprise
Ex: Makro, Carrefour, Giant, IKEA, The Store.
Entrepreneur with Large Economy of Scale
“The production costs will become lower if the quantity produced becomes higher; in other words; the economy of scale can be enjoyed”
Explanation: The increase in output causes a decrease in the average cost of each unit. Products can be sold at lower price, and at the same time the volume of sales can be increased.
This type of entrepreneur will explore a large scale of business which involves big capital and a lot of employees.
5. Capital Accumulator
They start-up a banking/financial institution. This kind of business need a large amount of financial capital and assets as well as multi level of mangement staff.
Ex: Maybank, AmBank, RHB, Hong Leong, Affin Bank, Public Bank and insurance companies.
6. Business Buyer
They buy an ongoing business. They have to have a large amount of financial capital. Information on ‘business to sell’ can be obtained from the newspapers and electronic media.
7. Buy n Sell Entrepreneur
They buy problematic business entity (for example: those businesses that are involved in bancruptcy), then try to overcome/solve the problems (ex: by injecting funds) and sell the business with higher price.
8. A Techno/Cyber Entrepreneur
An entrepereneur who is interested in creating new ideas, normally apply the technology advancement in creating, developing and marketing his new products.
Identifying, Analyzing, Evaluating and Choosing Business Opportunity.
Terdapat empat (4) langkah utama yang perlu dilakukan oleh seorang usahawan sebelum memulakan perniagaan.
*Langkah 1: Mengenal Pasti Keperluan dan Kehendak Pelanggan
*Langkah 2: Menganalisis Persekitaran, Penilaian Diri dan Nilai Masyarakat
*Langkah 3: Menilai Peluang-peluang Perniagaan
*Langkah 4: Memilih Peluang Perniagaan dan Merangka Rancangan Perniagaan
Langkah 1: Mengenal Pasti Keperluan dan Kehendak Pelanggan
Setiap peluang perniagaan bermula dari wujudnya keperluan dan kehendak pelanggan terhadap sesuatu barangan.
Keperluan merupakan sesuatu yang asas yang mesti diperolehi, dimiliki dan dinginkan dalam kehidupan seseorang seperti makanan, pakaian, perlindungan, pendidikan dan keselamatan.
Namun, manusia juga mempunyai kehendak yang merupakan keinginan atau kemahuan peribadi untuk sesuatu yang lebih sempurna daripada yang asas.
Kehendak seseorang boleh dipengaruhi oleh budaya,tahap pendidikan, tahap kemampuan dan keperibadiannya.
Maslow's Hierarchy of Needs (Teori Hirarki Keperluan Maslow)
*Penwujudan Diri
*Penghormatan
*Sosial/Kasih Sayang
*Keselamatan
*Psikologikal
Psikologikal
Termasuk kelaparan, kedahagaan, perlindungan dan lain-lain keperluan diri.
Keselamatan
Termasuk perlindungan daripada gangguan fizikal dan emosi
Sosial/Kasih Sayang
Termasuk perasaan kasih sayang, kepun yaan, penerimaan dan persahabatan
Penghormatan
Termasuk faktor-faktor penghormatan seperti penghormatan diri, autonomi, pencapaian, status, pengiktirafan dan perhatian.
Penwujudan Diri
Desakan untuk menjadi apa yang termampu oleh seseorang itu termasuk perkembangan, mencapai potensi dan penunaian diri.
Langkah 2: Menganalisis Persekitaran, Penilaian Diri dan Nilai Masyarakat
Dalam usaha mencari peluang-peluang perniagaan terdapat tiga perkara penting yang perlu diambilkira iaitu persekitaran, penilaian diri dan nilai masyarakat.
Persekitaran
*Struktur penduduk, pendapatan & citarasa
*Kajian ke atas data import & eksport
*Kajian terhadap sumber tempatan
*Rantaian industri
*Rancangan pembangunan kerajaan dan swasta
*Meneliti peluang perniagaan melalui media massa tempatan dan luar negeri
*Mengkaji masalah sosial setempat
*Undang-undang dan peraturan
Penilaian Diri
*Pengalaman
*Pengetahuan dan kemahiran
*Kedudukan kewangan
*Minat
*Jaringan perhubungan (Networking)
Nilai Masyarakat
Perniagaan yang bakal dijalankan tidak bertentangan dengan nilai masyarakat setempat.
Langkah 3: Menilai Peluang-peluang Perniagaan
Proses menilai peluang-peluang perniagaan membantu usahawan memilih satu peluang perniagaan yang terbaik.
Dengan ini segala perhatian, komitmen dan usaha usahawan akan tertumpu pada hanya satu peluang perniagaan sahaja.
Berikut adalah antara beberapa proses yang boleh diambil oleh usahawan dalam menilai peluang-peluang perniagaan terbaik.
*Sah Dari Segi Undang-undang
*Kuasa Monopoli dan Tahap Persaingan
*Keperluan Modal
*Risiko
Langkah 4: Memilih Peluang Perniagaan dan Merangka Rancangan Perniagaan
Setelah semua proses dan langkah dilaksanakan, terpulang kepada usahawan untuk memilih peluang perniagaan yang terbaik.
Tindakan seterusnya setelah memilih peluang perniagaan terbaik adalah dengan menyediakan (Rancangan Perniagaan) Rancangan Pentadbiran dan Operasi, Rancangan Pemasaran dan Rancangan Kewangan.
