1. DEFINITION OF ENTREPRENEUR
The word “entrepreneur” is derived from the French word “entreprendre” which means ‘to undertake or to try’ and was used by Richard Cantillon in 1775. An entrepreneur is an individual who organizes, manages and assumes the risks of a business (Kuratko & Hodgetts, 2001). In French, the term entrepreneur refers to a person who undertakes and operates a new enterprise or venture and assumes accountability for the inherent risks.
An entrepreneur is an individual who creates a new business in the face of uncertainty for the purpose of achieving profit and growth by identifying and capitalizing opportunities and assembling the necessary resources to capitalize on the identified opportunities (Zimmerer, Scarborough & Wilson, 2008). Also refers to an individual who establishes a business and manages it to obtain profit and to be successful (Carland, 1984).
The word “entrepreneur” was introduced in year 1970 after the implementation of the New Economic Policy (NEP).
A common definition of an entrepreneur:
“someone who establishes a new entity to offer a new or existing product or service into a new or existing market, whether it is for a profitable or for a business growth”.
ENTREPRENEUR = PEOPLE
The process of seeking business opportunities under conditions of risk. Also refers to the process of creating something new of value by devoting the necessary time and effort, assuming the accompanying financial, physical and social risks, and receiving the resulting rewards of monetary, personal satisfaction and independence.
The success of a business venture depends on several aspects which are attitudes, skills and knowledge of an entrepreneur.
ATTITUDES SKILLS KNOWLEDGES
• Team work
• Mental & physical fitness
• Project management
ENTREPRENEURSHIP = THE PROCESS
3. DIFFERENCES BETWEEN AN ENTREPRENEUR AND A SMALL BUSINESSMAN
We often hear people using the term ‘businessman’ and ‘entrepreneur’ interchangeably.
It is noted that all entrepreneurs are businessman but not all businessman are entrepreneurs.
Actually these two terms are not the same. This is because these terms having difference aspects in nature.
A businessman only spends time buying and selling products.
However an entrepreneur spends unlimited time in studying how to satisfy customers and always comes out with an ideas on ways to improve his/her products.
3.2 Nature of Job
A small businessman faces competition as ordinary challenges make him rigid in adapting to changes.
While for an entrepreneur, the competitive market is a challenge that needs to be thoroughly assessed in order to survive in an industry. It makes him always flexible in changing and refining his products.
3.3 Decision making
A small businessman will normally follow the decisions made by others and invests only in a tested and proven markets.
A small businessman therefore has a low level of commitment on the development of new products or services and sells existing and available products in the market.
3.4 Effort & Commitment
A small businessman is not attracted to changes and technological breakthrough.
But for an entrepreneur, he/she will always keep him/herself updated with current and future technological developments to further increase the creativity and productivity.
An entrepreneur will make his own decisions and use his creativity in producing and creating innovative products and services that can penetrate a market which has not been tested before.
3.5 Risk taker
A small businessman is usually a low risk-taker as his main motive is to earn profits. This is because he buys products available in the existing market at a lower price and sells it at a higher price.
However an entrepreneur is an individual who takes calculated or moderate risks to start and operate a business. This is done by calculating the costs and benefits in any decisions that are made.
A small businessman engages in business activities to gain profits so that he will be able to support and earn a living even though he always struggles to obtain profits.
An entrepreneur starts the venture and commits on the expansion of the venture in order to fulfill personal goals and attain self-accomplishment. He/she is more concerned with success and personal satisfaction rather than profits.
4. TYPES OF ENTREPRENEUR
An entrepreneur within a large organization with high entrepreneurial characteristics.
Involve in technological changes in producing goods and services for his organization.
An entrepreneur associates with an existing organization to create a new organization or instigates a renewal or innovation within the organization.
4.4 Social Entrepreneur
Someone who recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture to make social change.
Someone who start a business in cyberspace and the online based.
5. COMPETENCIES OF SUCCESSFUL ENTREPRENEURS
§ Personal initiative
• Systematic planning
• Seize opportunities
• Creative problem solving
• Endurance (daya tahan)
• Assertion (ketegasan)
• High work quality
• Persuasion (pemujukan)
• Commitment towards work agreements
• Power & Authority
6. RISKS OF BEING AN ENTREPRENEUR
The risks that an entrepreneur has to take when setting up a business are as follows:-
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