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Lecture 1_Concept & Theory (DL).pptx
1.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1 LECTURE 1 CONCEPT & THEORY OF ENTREPRENEURSHIP
2.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 2 CLASS ACTIVITY 1 Go to menti.com and get the code from your instructor
3.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 3 Who is an entrepreneur? There is no consistent definition of the term “entrepreneur” and what entrepreneurship is all about (Kuratko & Hodgetts, 2001). Functional approach what an entrepreneur does Indicative approach characteristics and attributes
4.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 4 Entrepreneur/Entrepreneurship: Definition from Research Literatures Adam Smith (1776) widened the scope of entrepreneurship to include the task of forming an organization for commercial purposes.
5.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 5 He described the dynamism of the personality of an ‘enterpriser’ such as the ability to foresee potential through changes in the economy and to take advantage of the opportunities thereby created.
6.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 6 Joseph Schumpeter believed entrepreneurship plays a crucial role in triggering economic development. Entrepreneur/Entrepreneurship: Definition from Research Literatures (cont.)
7.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 7 CLASS ACTIVITY 2 Go to menti.com and get the code from your instructor
8.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 8 Schumpeter (1934) defined development as the exercising of new combinations of productive factors.
9.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 9 Such efforts may result in the introduction of a new product or a new method of production, the opening of a new market or the finding of a new source of the inputs supply or the establishment of a new organization.
10.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 10 Entrepreneur/Entrepreneurship: Definition from Research Literatures (cont.) An entrepreneur is a sociologically distinct individual who is a creative and resourceful innovator as well as an agent of change.
11.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 11 Entrepreneur/Entrepreneurship: Definition from Research Literatures (cont.) Von Mises defined entrepreneurship as human action ‘seen from the aspect of the uncertainty inherent in every action’ (Mises, 1949). For Mises (2000), entrepreneurship mainly consists of: – decision-making activities – entrepreneur is seen as an active individual – distinction between entrepreneurship and management – motivated by the desire to make profits and acquire wealth.
12.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 12 Individual Characteristics of an Entrepreneur While some scholars focus their research on the economic function of entrepreneurship, others have concentrated their works on the personal characteristics of entrepreneurs.
13.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 13 Brockhaus (1982) identifies three attributes that are consistently associated with entrepreneurial behaviour: 1. The need for achievement 2. The internal locus of control 3. A risk-taking tendency.
14.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 14 Individual Characteristics of an Entrepreneur (cont.) The need for achievement is a personal attribute associated with the expectation of doing something better over others and/or the individual’s earlier accomplishment (Hansemark, 2003). It is believed that the individuals who score highly on the need for achievement would have a strong desire for success and are consequently more likely to behave entrepreneurially (Othman, Ghazali & Ong, 2005).
15.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 15 Individual Characteristics of an Entrepreneur (cont.) ‘Locus of control’ is a belief or disbelief that one can control or influence the environment in which one is found. Rotter (1966) hypothesizes that individuals with internal locus of control are more likely to strive for achievement than those with external locus of control.
16.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 16 Individual Characteristics of an Entrepreneur (cont.) This is because individuals with internal locus of control believe that they can make things happen as they are able to control and influence the environment around them. In contrast, individuals with external locus of control do not believe they can do this. People with internal locus of control are more likely to be entrepreneurial than those with external locus of control (Beugelsdijk & Noorderhaven, 2005).
17.
All Rights Reserved Fundamentals
of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 17 Individual Characteristics of an Entrepreneur (cont.) Individuals with higher propensities for risk-taking are believed to be more likely to be involved in entrepreneurial activities. This is not surprising as entrepreneurship has long been associated with risk-taking (Cantillon, 1755; Knight, 1921). Empirical evidence also supports the view that risk- taking propensity serves as one of the attributes which influences entrepreneurial success and performance (Beugelsdijk & Noorderhaven, 2005).
18.
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of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 18 ACTIVITY! https://quizizz.com/admin/quiz/60c6e20c76c884001b8c7259
19.
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of Entrepreneurship © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 19 THANK YOU
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