WET100012 – Weekly Review

Topic 1: Concept and Development of Entrepreneurship

The objectives of this topic:

1. Evaluating the importance of the study of entrepreneurship.
2. Explain the concept of entrepreneur & entrepreneurship.
3. Identify attributes of entrepreneurship. 
4. Summarize the development of entrepreneurship in Malaysia. 

 

IMPORTANCE OF ENTREPRENEURS  

1.  Catalyst for change & growth of national economy- increase rate of per capita product & income, structural change of business & society.
2. Give rise to successful individuals having highly viable & competitive businesses.
3.  Develop & expand a higher level of culture and attributes of entrepreneurship.
4. Entrepreneurs create wealth, encourage wealth distribution and contribute to economic well-being of the nation.
5. Entrepreneurs will make the nation more competitive, open employment opportunities, reduce crime rates and reduce unemployment & poverty level.
6.  Entrepreneurs are the engines of creativity and innovation that will make the nation be well-known internationally.

 

CONCEPT OF ENTREPRENEUR & ENTREPRENEURSHIP

Entrepreneurs: They are Pioneers of successful business activities. They usually have first mover advantage as they serve to produce creative and innovative products or services which are distinctly different than current ones.

Entrepreneurship: Entrepreneurship means a dynamic process to create wealth, taking on capital risk, time & career commitment. They also invent something new via taking financial, psychological and social risks and acquire profits, personal satisfaction and freedom.

Topic 2: Self-Competency Analysis

This topic learnt about self-develop entrepreneurship abilities and exhibit attributes of entrepreneurship.

 

SELF-COMPETENCY ANALYSIS

1. Initiative 
2. Viewing and Grabbing Opportunities 
3.  Steadfast 
4.  Information seeking 
5.  Commitment to Agreements 
6.  Systematic Planning 
7. Solving Problems
8. Self-Confidence
9.  Iron-willed 

 

USING POWER STRATEGIES

1.  Legitimate power - Influence based on power to instruct others. 
2.  Reward power - Influence based on power to punish others. 
3.  Penalty power - Influence based on power to reward others like bonus, increment, etc. 
4.  Expert power - Influence based on power of knowing what to do in areas where others do not have the expertise. 
5.  Referent power - Influence based on power hold on information flowing through the person.

 

Topic 3: Entrepreneurial Ethics

After completed this topic we should understand the concept of divine acceptance in business and understand entrepreneurial ethics & business culture.

 

ENTREPRENEURIAL ETHICS

Entrepreneurship in the Eyes of Islam: 

1. People do Manufacturing/Service Business to seek for legal providence. 
2. People in manufacturing, distribution, agriculture and services sector hold special positions in Islam.
3. Entrepreneurs hold a High Status (Prophet’s example as a businessman with high trustworthiness and integrity. 
4. Nine out of ten divine providence comes from business & business is seen as  “fardhu kifayah” which means that at least one muslim must undertake to do business in the community otherwise the whole community will get the blame.

Warning Against Hoarding:

Allah SWT: “Those that Allah has given providence to them must not be stingy and feel that being stingy is good for them. Nay! Tis dangerous for them, their property so hoarded will be burdened on their necks on doomsday. Allah Lord of the heavens knows all that you do. (Ali-Imran:180).

Topic 4: Creativity and Innovation

This topic is learnt about understand aspects of creativity & innovation, knowledge of approach towards thinking creatively & innovatively and determine strategies to encourage creativity & innovativeness.

CREATIVITY: According to Schemerhorn, Hunt & Osborn (2003) – Creativity is  a unique development & answer/response to expected problems. 

INNOVATION: According to Kinicki & Williams (2003) – Innovation is an approach towards creating a new product, process or service in an improved manner & not resting on laurels.

 

CREATIVITY PROCESS:

1. Assimilation of knowledge via readings, discussions, seminars, workshops to create new products/services. 
2.  Incubator: Does not care where the source of ideas originates as development of creative ideas is very vital. They may arise from competitors or customers as well as staff. 
3.  Idea: Acquired ideas unplanned for during lunch/dinner, travelling etc. Anywhere anytime we can gather ideas. 
4.  Assessment & implementation: Transform ideas into reality finally & without doubt by first evaluating them thoroughly; Importance of Developing Creative Ideas; Use thinking skills innovatively & exploit ideas to develop concrete business planning; Viewing the environment in a topsy turvy way & approach problems as realised business opportunities.

 

Topic 5: Business Opportunities

After completed this topic we are able to identify business opportunities and evaluate and choose viable and profitable business opportunities.

 

OPORTUNITY

New ideas generated via innovative process by establishing a new business, developing new products or services.( Barjoyai Bardai, 2000)

Situations Contributing To Business Opportunities:

1. Customers requiring new products/services solving their problems or needs. 
2. Existing products/services not able to solve problems or fulfill their needs.

Solution: Identify Strengths, Minimising weaknesses, using opportunities & lessening threats.

Topic 6: Skills to start a business

After learnt this topic we are able to: Identify resources required to start a business, know the techniques of effective negotiation skills and know the methods of effective communication.

 

TECHNIQUES TO IDENTIFY REQUIRED RESOURCES

5W1H TECHNIQUE.(What, Which, Where, When, Who, How) What are resources required, which resources are vital and supportive, when to acquire such resources, who are the suppliers involved and how to acquire it like renting, buying, joint venturing, leasing, etc.

1.  Business Capital 
2. Product or Service
3. Business Location 
4. Business Facilities
5. Negotiation Skills 
6. Preparations of Negotiation 
7. Negotiation process

Topic 7: Business Plan

This topic we learnt about what is Business Plan, to understand the meaning and purpose of the Business Plan, to understand the important of Business Plan and to be guided in preparing a Business Plan.

Definition of Business Plan: A written document to explain the business that is to be runned comprehensively covering analysis, forecast and expectations plus implementation of business strategy.

 

Importance of Business Plan:

1. To provide others an opportunity to meticulously, critically and objectively evaluate ideas and business projects. 
2. To display the viability of a planned project.
3. Assist someone to assess requirements of business necessities so that distribution of resources could be done effectively. 
4. To provide someone with the realisation that there could be future problems associated with running the project.

Noted: Executive Summary is very important, it cannot too long.