On Some of the Misconceptions of Entrepreneurship 11th International Entrepreneurship Forum, PWTC, Kuala Lumpur, 3-5th September 2012

1. 11th International Entrepreneurship Forum, PWTC,
Kuala Lumpur, 3-5th September 2012
Murray Hunter
University Malaysia Perlis

2. Most
Entrepreneurs
look like this

3. TOTAL ESTABLISHMENTS OF
COMPANIES BY SIZE
4,542
LARGE (0.8%)
12,694
MEDIUM (2.3%)
100,561
SMALL (18.2%)
435,052
MICRO (78.7%)
Census of Establishments & Enterprises 2005 DOS - TOTAL ESTABLISHMENTS: 552,849
Dec 2010
3

4. DISTRIBUTION OF SMEs BY SECTOR
Manufacturing
Agriculture
39,376
34,225
(7.2%)
(6.2%)
Services
474,706
TOTAL SMEs : 548,307
Census of Establishments & Enterprises 2005 DOS -
(86.6%)
Dec 2010
4

5. CONTRIBUTION BY SMEs
(%)
60
8.1
50
40
3.9 33.9
30
0.1
20 19.7
7.9
10 14.5
8.4 11
0
G DP E mployment T otal E x port
contribution
Manufacturing S ervices Ag riculture
Preliminary Statistics by DOS - Dec 2010
5

8. Degree of ambiguity
Active/Imaginative
Allocative Construction Intuitive
Analytical
Supply/Demand changes New technologies
Demographic changes New Business models
Value
creation n
t io
va
no Locus of change
In
Inductive
Imitation Discovery
Deductive Replication & Extension Incongruities
(Black & white)
Structural changes
Passive/Reactive
©Hunter (2012)
The forms of opportunity

9. Low Intuitive High
High
Large Companies & Breakthrough
Consumer Type Technology
Markets
High analytical and high
High analytical & Low
intuitive opportunities, high
intuitive opportunities,
strategy & high tactical
Analytical
high strategy & low tactical exploitation Growing
exploitation
importance
Imitative Business Entrepreneurial of formal
Low analytical & low intuitive Low analytical & high intuitive, strategy
opportunities, low strategy & low strategy & high tactical
low tactical exploitation exploitation
Low
Growing importance
©Hunter (2012) of tactical moves

10. Imitative

11. Imitative

12. Imitative

13. Four potential firm opportunity seeking
typologies
Market Orientated Both Market &
Firms Entrepreneurially
High Orientated Firms
High adaptability to the
environment but low
High adaptive and idea
generative idea & strategy
Market Orientation
generative & strategy
ability
development ability
Conservative firms Entrepreneurial
Firms
Low Very low
adaptability to High generative idea
environment & strategy capability
Low High
Entrepreneurial Orientation

14. Space
Global
National
City
Neighbourhood
Sectional Interest
Today Next Next Next Life Children’s Time
W Week Year Few Years Time Lifetime

15. People start businesses for the wrong reasons and
mistake something they like for an opportunity

19. Tissue Culture

22. Microwave Oven Pressure Cooker
Chemicals & Spoons, etc. Glassware

33. Why let the train leave without you?

34. Most
people like
to take
things easy

36. • Insufficient Sales
•Insufficient Capital
• No business plan
• No managerial focus
• Inadequate records
• Lack of profit focus
• Cash flow
• Inadequate systems
• Failure to plan for taxation
• Inadequate resource
management
• Break even point
• Failure to develop new products

37. Can and do
entrepreneurs use
a business plan?

38. We can land a man on the moon and return him
successfully to Earth but we are still not too sure
what factors make a firm successful

47. Consumers
Positioning Potential new novel Opportunity
product extending
market field or
creating a new one
Attempting
through existing or
to create
Targeting new channels and Refining the
some form
business models. Idea
of
competitive
advantage
Segmentation
Concept
Product idea to
compete with
Market existing products
in market
Identification The set of possible
ideas/products/markets
The Causation Process The Effectuation Process

49. Wind in the case of a yacht or
environmental turbulence in the
Vision &
case of a firm.
Goals
Actual Path &
Performance
y
ateg
d Str
ate Modified
t icip
An Vision & Goals

50. Evolved Strategy
Trial and error tactical
use with various levels of
X X X X Success/Non-Success
Tactics Applied

51. Opportunity Shift Time
Newly identified
opportunity needing
different goals,
An identified strategies,
opportunity in competencies, skills,
the past resources and
organization than
previously
The Opportunity Landscape
What strategies are
required to successfully
Present Needed
exploit the new
Strategies Realignment of Strategies Strategies opportunity and meet the
organizations new goals?
Competitiveness
What type of
organization and
Present Needed business model is
Organization Realignment of Organization Organization needed to support the
selected strategy?
What skills,
competencies and
Present Skills & Needed Skills & technologies are
Realignment of Skills & Competencies needed to support the
Competencies
Competencies new business model
and strategy?
What resources are
needed to support
Present Needed
Realignment of Resources skills, competencies,
Resources Resources technologies, new
business model and
strategy?
What networks are
Present Needed needed to exploit the
Networks Realignment of Networks Networks opportunity, acquires
skills, technologies and
resources, support the
new business model
and strategy?
What new goals are
Present Goals New Goals
Setting of New goals needed to exploit
the newly identified
opportunity?
Reengineering of Total Organization

52. Young &
invigorating image
Internet Bookings
An exciting low
Young good looking cost airline to fly
air & ground crews
Modern and trendy
on
aircraft interiors
Advertising image Limited use of
Baggage travel agents
Standardized aircraft to
No baggage transfers cut down on
No connection with maintenance costs
other airline baggage Fast Aircraft
services turn-around times
Baggage surcharge General savings on
overheads Extra means of
Auto-check with no
revenue
baggage
Not burdened by Paid snacks & meals
Seating
traditional air and ground Low landing charges
Blankets
crew procedures and terminal fees Computerized ticketing
No connection with other Headquarters located methods
airlines at airport terminal Related businesses -
hotels

53. The Wright Bros. developed the airplane through effectuation (trial
& error). They developed a new theory and a new invention.

54. It was only when a
use for the new
invention was found
that an industry
developed.

55. Could the Wright Brothers
developed a business plan when
they first decided to build a flying
machine?

56. At the time this looked just as viable

57. The Secret

59. Forecasting

60. Things are
always a
mystery until
we get there

68. Rate of Adoption
Innovation Growth Maturity
100%
80%
60%
40%
20%
1975 1980 1985 1990 1995 2000 2005 2010

69. Market Research
Less than 2% of filed patents are ever commercialised
Does a new invention have consumer benefits or create any
competitive advantage?
Can consumers accept the new invention?

70. Product Evolution
Pre 1900’s
Laundry Blue
Up to Late 1940’s Solid Soaps &
Powders
Laundry
Detergent Bars
1950’s until present Laundry
Detergents
Powders
Laundry Detergents with
Liquids Special
Detergents Additives
Concentrated
1980’s until present
Laundry
Powders
Laundry
Detergent
Tablets

77. Society & family, peers & Influence on other paradigms
role models, assumptions,
values, beliefs, learning,
mentors, perceptions Peer groups mentors,
society
Cultural
Paradigm
Commitment and ethics
Upbringing and family Social & Educational
background, education and Background
life experiences, stressful
unexpected events, fate
Paradigm
Chance & Fate
Identify and exploit
Looking for benefits, opportunities
effective performance,
able to secure resources,
overall vision, able to Resource gathering
weigh things up in
Paradigm
Strategic
strategic way Customer orientated
Environment, peers, family,
culture, realities, motivation, Sense of achievement
dedication, self assurance,
self perception, morality, Motivation &
responsibility, determination
accountability, adversity to
Paradigm
Personality
risk taking (courage), stand
on beliefs, level of comfort Adversity to risk taking
Environment, triggers, Seek & identify
inspiration, lateral & opportunities
serial thinking,
technical skills, ideas,
opportunities, solution
Innovative
Paradigm
Creativity
finding
Health, personal energy,
focus, time orientation,
orientation to getting things In control of the
done, orientation towards business
Action
getting the right things
Paradigm
Attributes of the Entrepreneur
done
Able to inspire
Selecting the right people,
team/individual orientation,
people
view of outside expertise,
networking, interpersonal Ability to work
outlooks, management style, with people
leadership,
Paradigm
dominance/submissiveness Networking
Interpersonal
Positive & negative Experience
experiences, success &
failure, education &
skills, soft skills, talents Technical skills
and abilities
Skills
Paradigm
Soft skills
Talents & abilities

78. The Potential Socio-psycho Factors that Influence Opportunity Discovery and Behavior.
World and work experience, education, culture, family upbringing, etc.
Personal Paradigms
Skills Behavior
Alertness Influencers
Motivation
The Psych
Prior
Knowledge
Sense of self. ego,
encoded
Perception
Strategic
Outcomes
assumptions,
Outlook beliefs and values. Personality Feedback
Creativity Expectations, goals, Traits
self regulating
Propensity restraints, etc.
to Action
Talents and Motivational
Abilities Trigger
Interpersonal
Idea GAP
“What I do” “How I feel”
“Who I am”
A Trigger
External event or
Situation
internal feelings

79. People start businesses for the wrong reasons and
mistake something they like for an opportunity

83. Size First entrepreneurial phase Possible mature
entrepreneurial phase
Usually NPD strategies Sales
Regeneration
Usually time
of increasing Mid-life crisis
organizational
rigidity
An era of
complacency and Decline
rigidity
Enterprise begins to take a Profit
‘past orientation’
Pre start-up Start-up Growth Maturity Decline or rebirth
Entrepreneurship is just a stage in the firm lifecycle

87. Change in how and where people buy the product
Risk
None Some Great
None None Low Medium
Change
In User
Some Low Medium High
Habits
Great Medium High Dangerous

92. Entrepreneurship Curriculum &
Teaching
Without
Relevant Technology
Knowledge & Training

93. The education
system is hung up
about measuring
intelligence

98. Entrepreneurship
has very little to do
with intelligence. It
is all about
creativity.
Otherwise one
would have to be a
professor to start a
new business.

99. Unlike
intelligence
creativity
can be
taught

100. New Ideas
Unknown Opportunities
Surrounding Developing Strategies The Metaphoric
Environment Solving Problems Concept of Creative
“Domain” &“Field”
Intelligence
Environmental
Environmental Factors conducive
Factors that to creativity
hinder creativity
Internal Influencing Perception
Factors
Motivational
Focus & Attention Trigger
Creative Sensitivity Patterning
Energy
Emotion Thinking
Curiosity Processes Prior
Empathy (Self Organizing Knowledge
Patterned Thinking
Confidence System)
Processes
Discipline
Interest
Passion Cognitive Thinking
Tools & Styles Memory
Heuristics
Belief
Imagination
Applied Thinking
Fantasy
Tools,
Domain & Field Experience
Manifestations &
Acceptance/ Tacit Knowledge
Elaborations
Rejection
Creative Product
Hunter (2012)

101. Creativity Tool Cognitive Skill
Knowledge
(vocabulary) of
odorous substances
Imagination Olfactory
sensitivity
Knowledge of
potential strengths,
weaknesses and
applications of
odorous materials
Knowledge of Curiosity, enquiry
outstanding and Perfumer
fragrance creations experimentation Excellence
within the domain
Practical knowledge
& experience Process &
Interest and Product
passion
Time, patience,
perseverance
Emotion
Knowledge Base

107. Understanding Complexity

108. Paticcasamuppāda
When this is, that is
(1) (Present)
From the arising of
this comes the
(2) arising of that
(Past to present)
From the stopping
(4) of this comes the
stopping of that
(Past to present)
(3) When this isn’t, that
isn’t
(Present)

109. Location Climate Genetic Material
Humidity
Collection
Temperature Purchase
Sunshine hours
Topography UV radiation Plant physiology
Seasons
Slope & drainage Propagation Yield and
Rainfall characteristics Chemical
Constituents
of the
Humus Nutrients Method of extraction Essential Oil
Extraction time
Compactness Drainage & water
holding qualities
Pest & weed
pH control Pre-harvest handling
Mineral residuals Irrigation & preparation
Plant
densities
Soil type Time & method of
harvest
Agronomic Harvest &
Soil Practices Extraction
Practices

110. Automobile
Chassis Engine Tires Control & Braking System Environment
management
Systems
Rubber
Suspension Fuel Electronics Alloys Road Rules
systems
Compression Chemical Hydraulics Roads &
Steel Microprocessors
& Processes Carriageways
Combustion
Plantations

111. The Past Present The Future
Time The effect of competitor
innovation will bring
We know the present and
product evolution and
can learn about the past.
create new market
segments
Examples: 2 in 1 shampoo & Sugarless
carbonated drinks
Market Timeline
No change
Radical change in
technology will bring a
Without any changes new Industry
our timeline will
remain fundamentally
unaltered.
Examples: Home computers in the 1970s &
mobile phones in the 1980s
Time

112. Decrease in economic development
Conflict of values Local people
Higher land taxes to support struggle to
local infrastructure survive
Massive Increase land
demographic prices
Rising land
changes Less land available
prices
for farming
Influx of out of Locals emigrate
region land from region
buyers
Lush Beautiful farmlands Increased conservation
and hinterlands

113. New Pollution
Paradigms
Economic A situational analysis of the environment
Fossil Fuels
Growth
Export/Import
Transport
Farm
Raw materials
Transport
Government
Power
Production Transport
Diversity generation
Warehouse
Management
Supermarket
Conflict
Research & Community
Development
Consumption Education
Regulation
Competition &
Tension
Air Transport
Poverty &
Unhappiness Development Waste
Health
Uncertainty

114. The world is seen from our own perspective – our narrative

115. Narrative expresses ……………..
Hopes Feelings
Ethical & spiritual codes
Social hierarchies
Empathy Imagination
Self identity Fears
Our introspections Sharing values
Sharing beliefs
Means of transferring ideas
Problem solving Our projections
Our relational position to society Meaning

116. Narrative Compresses Time to a
Manageable Dimension

117. The truth keeps
changing as we see new
things