Friday, 13 March 2015

THEORY AND CHARACTERISTICS OF ENTREPRENEURSHIP AND BUSINESS DEVELOPMENT

Peter F. Drucker
The word 'entrepreneur' comes from the French word "entrepredre" which means "to undertake". In the Malay language it can be defined as "to take over".


Entrepreneurship 

According Histrich and Peter (1988), entrepreneurship is a dynamic process of wealth creation. Wealth is created by individuals who bear a substantial risk in the 'equity', time and commitment to their careers or provide value to a product or service. It is the process of creating something new by taking into account the time and effort with regard to financial risks, psychological and social. And receive the benefits in terms of financial, personal satisfaction and freedom.


There are four fundamental aspects in entrepreneurship: 1) Entrepreneurship involved in creating a new process. The creation must have value to                  entrepreneurs and the market in which the process is developed. 2) Entrepreneurship requires loyalty (allegiance) to the time and effort it takes.3) Entrepreneurship is an individual who is willing to accept the risks in each business sector, especially the financial aspects, psychological and social. 4) Entrepreneurship received many rewards when becoming an entrepreneur. The main reward is freedom (independence), followed by personal satisfaction and thus profits. In some entrepreneurs, money showing symbol of success.Kuratko and Hodgetts (2004) defines entrepreneurship as a process of innovation and creation through the four dimensions of the individual, the organization, the environment (environment) and innovation, in collaboration with networks in government, education and institutional (institution).

Entrepreneurship Theory Approach Based Economy
In the economic field of entrepreneurship emphasizes the benefits and wealth. Both of these aspects will encourage a person to engage in entrepreneurial activities. Entrepreneurs will seek to identify and pursue business opportunities that can generate profits for the organization.
Entrepreneurs are part of the production inputs other than raw materials, land and capital.
The cost for an entrepreneur is profit. The advantage is the price paid for the risk taken by an entrepreneur.
 


Economic experts who contributed in the Study of Entrepreneurship
Joseph A. Schumpeter (1990) - entrepreneur is an innovator and leading to changes in economic development. Entrepreneur is someone who takes risks.

Alfred Marshall (1946) - defines entrepreneurship as an area that needs to go through the process of evolution. Business evolution involves in  a business up to the liquidation of the business.

Cantillon - entrepreneur is an important economic actors.


Characteristics of Entrepreneurship and Business Development

Too much business that we can operate in Malaysia ni, and much information can be obtained by the government or on their own initiative to start a business. Nevertheless, most of the indigenous peoples in Malaysia is not taking the opportunities that exist in the current market, and most of the indigenous people also operate a business that is based foods. Malaysia is now already in control of almost 99.9% of the non-indigenous. So, the nature of how we need to be competitive with non-indigenous groups this.

7 features that must exist in every entrepreneur to succeed:

  
1) Initiative.
  • Attitude of doing business or had to do something before, compelled by circumstances or ordered to do so.
  • Actively seeks to develop businesses in the fields, new products or services. 
 2) Seeing and Seizing Opportunities.
 
Always look up and see the opportunities that exist in the environment and creative and able to seize these opportunities.
Seize opportunities remarkable in expanding markets, using new technology, get a place of business, get financial assistance, equipment or aids that can help improve business performance.

3) Comitmet.

 
Focus on doing business and personal sacrifice in achieving or completing the work. Next, accept full responsibility in completing the work for the customer.
Willing to help employees or take over their duties to complete the work and also expressed concern for customer satisfaction.

4) The firmness.

 
Entrepreneurs are able to explicitly articulate a problem to others directly and able to take action in the face of opposition from other parties.


 5) Perseverance.
 
Tryig to find a way to overcome the obstacles that hinder the achievement of goals and trying to do something to overcome obstacles when facing a big problem with no quick surrender.

6) Emphasize high quality of work.

 
Indicated a desire to produce or sell goods or provide services of high quality. Always make a comparison for the quality of their own work with other people or companies that are on par or better rating.


7) Skills.
 
Always looking for ways to do something with lower costs and faster. And use business information or the latest business management methods to improve the efficiency of the company and myself, and also concerned the estimated cost or profit results of a renewal, change and action.

But instead of just 7 only features, there are many other features that should be there. Anything, the best characteristics are looking for with our own characteristics with previous work as unto the lowly. Experience is the one characteristic that is difficult to tell but experience can teach us how to be a successful!
 

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