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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THEORIES &
CONCEPT OFENTREPRENEURSHIP
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THEORIES & CONCEPTS OFENTREPRENEURSHIP
Session Objectives
At the end of the session, studentsshould be able to:
understand the various theories and
concepts on entrepreneurship have a deeper understanding of the
discipline of entrepreneurship
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
Definition of an Entrepreneur :
An entrepreneur is a person whoundertakes to do a job RichardCantillon (1755). The term entrepreneuris a French word first coined by Richard
Cantillon. In Malaysia the term usahawan is
used for entrepreneur.
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
Definition of Entrepreneurship:
Entrepreneurship involves not only theprocess that leads to the setting up of abusiness entity but also the expansionand development of an on going
concern.The study of entrepreneurshipis concerned with the entrepreneurialbehavior, the dynamics of business setup and expansion and development.
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
Adam Smith (1776) - An entrepreneur is
a person who acts as agent intransforming demand into supply.
Jean Babtiste Say (1803) - An
entrepreneur is a person who shiftsresources from an area of low
productivity to high productivity.
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OFENTREPRENEURSHIP THEORY
John Stuart Mill (1848) - An entrepreneur is a
prime mover in the private enterprise.The
entrepreneur is the fourth factor of production
after land ,labor and capital.
Carl Menger (1871) - The entrepreneur acts
as an economic agent who transformsresources into products and services.The
entrepreneur transforms and gives added
value.
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OFENTREPRENEURSHIP THEORY
Joseph Aloysius Schumpeter (1934) - An
entrepreneur is an innovator. The economymoves through leaps and bounds and the
prime mover is the entrepreneur through the
process of creative destruction.
Alfred Marshall (1936) - The process ofentrepreneurship or business development is
incremental or evolutionary . It evolves from
sole proprietorship to a public company.
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE EVOLUTION OFENTREPRENEURSHIP THEORY
Ibnu Khaldun (Abdul Rahman Mohamed
Khaldun) - The entrepreneur is seen as aknowledgeable individual and is instrumental
in the development of a city-state where
enterprise will emerge.
David McClelland - The entrepreneur is aperson with a high need for achievement.
This need for achievement is directly related
to the process of entrepreneurship.
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
It is more than mere creation of business
Entrepreneurship is a process of innovationand new venture creation through four majordimensionsindividual, organizational,environmental and process.
The entrepreneurship process is aided bycollaborative networks in government,education and institutions.
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURS
Functional definition of entrepreneursoffers the following definition:
Entrepreneurs are individuals who
actively form or lead their own businessand nurture them for growth and
prosperity.
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE IMPORTANCE OF ENTREPRENEURSHIP TOMALAYSIAN ECONOMY
1. Entreprenuership is the symbol of business
steadfastness and achievement. Entrepreneurialrevolution is critical to economic growth.
Entrepreneurship may affect our future in many
ways:
a. Innovative creation of opportunity
Example: Portable phones linked to faxes and
laptop will turns cars, train, and airport terminal
into offices.
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THEORIES & CONCPET OF ENTREPRENEURSHIP
THE IMPORTANCE OF ENTREPRENEURSHIP TOMALAYSIAN ECONOMY
d. Entrepreneurship not only affect our livesthrough innovation but represent the working
future for many of us due to lays off by largeorganization and shrinking of job opportunitiesfor graduates.
e. Entrepreneurship is synonymous to creation of
new venture and small businesses. SMIs havebeen important contributors to local economicgrowth.
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE IMPORTANCE OF ENTREPRENEURSHIP TOMALAYSIAN ECONOMY
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
ISLAMIC ENTREPRENEURSHIPISLAMIC ENTREPRENEURSHIP FOCUS ON
EIGHT PRINCIPLES OF THOUGHTS :-1.Entrepreneurship is an integral parts of Islamic religion.
2.By virtue of human nature , the Moslem entrepreneurs
are khalifah and have the reponsibilities develop
prosperity and sees business as part of ibadah or good
deed.
3.Motivationsuccess in Islam is not merely measuredby the end result but also the way and means of
achieving them.
4.Ibadahbusiness activity is part of ibadah or good
deed
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5. Position of Entrepreneurship and business in Islam
Islam encouraged its ummah to venture into
business . Prophet Muhammad S.A.W expounded
that 9 out 10 source of rizque (reski) can be found in
business.
6. Islamic Economic System - Islamic
Entrepreneurship should operate within the domain
of Islamic Economic system and act as the vehicletowards global acceptance of Islamic Economic
System.
ISLAMIC ENTREPRENEURSHIP
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THEORIES & CONCPET OF ENTREPRENEURSHIP
7. Guiding Principles of Islamic Entrepreneurship is by
the al-Quran and al-Hadith
8. Entrepreneurial Ethics based on exemplaryconducts of Prophet Muhammad S.A.W
ISLAMIC ENTREPRENEURSHIP
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THEORIES & CONCPET OF ENTREPRENEURSHIP
ISLAMIC ENTREPRENEURSHIP AS ASINTEGRAL PART OF THE RELIGION
Islam is a complete way of life. There is noseparation between business and religion.
Islam has its own entrepreneurship culture
and guiding principles based on the Al-Quran
and Hadith to guidebusiness operation .
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
HUMAN NATURE
(The fitrah of human being)By virtue of the human nature, the person mustfirstly be a Muslim, then an entrepreneur. He
has the responsibility to perform ibadahand be
a khalifah. Muslim entrepreneur should search
for Gods blessings above all other factors. AMuslim entrepreneur perform business not
solely for profit, but above all, to fulfill the
fardhukifayah.
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
MOTIVATION
Most entrepreneurs have the desire to
achieve successful business venture.
The successful path and means for
achieving success for Muslim
entrepreneurs are unique.
Success in Islam is not merelymeasured by the end result, but also
the means and ways of achieving them.
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THEORIES & CONCPET OF ENTREPRENEURSHIP
SUCCESS FORMULA BY AL-QURTUBI
Halal livelihood that are in accordance towhat is being outlined by Allah SWT and
syariah. Qanaahbe pleased and thankful with ones
earning
Taufiq - Asking for the blessing of Allah in
proportion to ones expectation Saadah- Spiritual happiness
Jannah Worldly success should act as the
bridge to the ultimate success in the life
hereafter (paradise).
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
Level of Knowledge
Level of Taubat or repentence Level of Temptation
Level of Obstacles
Level of Motivation
Level of Handicap Level of Praise and Thankfulness
SEVEN STEPS TOWARDS A SUCCESS IN LIFEACCORDING TO IMAM AL-GHAZALI
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THEORIES & CONCPET OF ENTREPRENEURSHIP
POSSESSION OF WEALTH IS ALLOWED BASED
ON THE FOLLOWING PRINCIPLES:-
Allah s.w.t is the absolute owner ofwealth
Allah created wealth in
abundance and sufficient for all
Wealth is created for mankind Wealth is entrusted to mankind
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
IBADAH
In Islam, involving in business ispart of ibadahthrough the
fulfilment of fardhu kifayah.
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THEORIES & CONCPET OF ENTREPRENEURSHIP
POSITION OF BUSINESS AND ENTREPRENEURISLAMIC ENTREPRENEURSHIP MODEL
Islam Proposed
(Business Venture)
Allah Prepared
(Facilities)
Islam Outlined(Rules and Regulation)
Allah Promised
(Reward)
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
ISLAMIC ECONOMIC SYSTEM
Islamic Entrepreneurship should
be in the framework of Islamic
Economic System and shouldassist in establishing the Islamic
Economic System
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
GUIDING PRINCIPLES OF ISLAMIC
ENTREPRENEURSHIP
Guidelines for IslamicEntrepreneurship and business
activities are wide and
comprehensive based on Al-
Quran and Al-Hadith.
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
MUSLIM ENTREPRENEURSHIP ETHICS To prevent laziness To eradicate fear
To search for legitimate ventures To avoid forbidden sources of income
and property
To show gratitude and thankfulness of
whatever has been acquired
To grow and develop capital and profit
To diversify business ventures
To avoid greediness
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ENT/ETR300FUNDAMENTALS OF ENTREPRENEURSHIP
THEORIES & CONCPET OF ENTREPRENEURSHIP
THE ETHICAL BEHAVIOR OF MUSLIM
ENTREPRENEURSHIP
To avoid malicious behavior To avoid squandering
To avoid stinginess To pay alms (zakat)
Trustworthy
To pray consistently Tawakkal
Patience
Qanaah
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THEORIES & CONCPET OF ENTREPRENEURSHIP
EXEMPLARY CONDUCTS OF GOOD MUSLIMENTREPRENEURS DURING THE PROPHET
MUHAMMAD S.A.W REIGN
Business is secondary when being calledfor other form of crusade
Avoid using influence for self interest
Afraid of accumulated wealth Leadership qualities in all aspects
Practice moderate way of life
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THEORIES & CONCPET OF ENTREPRENEURSHIP
END OF MODULE 1
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