THEORIES & CONCEPT OF ENTREPRENEURSHIP

TOQEER AHMED

THEORIES & CONCEPTS OF ENTREPRENEURSHIP

Session Objectives At the end of the session, students should be able to: understand the various theories and concepts on entrepreneurship have a deeper understanding of the discipline of entrepreneurship

THE EVOLUTION OF ENTREPRENEURSHIP THEORY

Definition of an Entrepreneur : An entrepreneur is a person who undertakes to do a job Richard (1755). The term entrepreneur is a French word first coined by Richard. In Malaysia the term usahawan is used for entrepreneur.

THE EVOLUTION OF ENTREPRENEURSHIP THEORY

Definition of Entrepreneurship: Entrepreneurship involves not only the process that leads to the setting up of a business entity but also the expansion and development of an on going concern.The study of entrepreneurship is concerned with the entrepreneurial behavior, the dynamics of business set up and expansion and development.

THE EVOLUTION OF ENTREPRENEURSHIP THEORY

Adam Smith (1776) - An entrepreneur is a person who acts as agent in transforming demand into supply. Jean Babtiste Say (1803) - An entrepreneur is a person who shifts resources from an area of low productivity to high productivity.

DEFINITION OF ENTREPRENEURSHIP
It is more than mere creation of business Entrepreneurship is a process of innovation and new venture creation through four major dimensions individual, organizational, environmental and process. The entrepreneurship process is aided by collaborative networks in government, education and institutions.

DEFINITION OF ENTREPRENEURS
Functional definition of entrepreneurs offers the following definition: Entrepreneurs are individuals who actively form or lead their own business and nurture them for growth and prosperity.

THE IMPORTANCE OF ENTREPRENEURSHIP TO ECONOMY 1. Entreprenuership is the symbol of business steadfastness and achievement. Entrepreneurial revolution 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.

THE IMPORTANCE OF ENTREPRENEURSHIP TO ECONOMY d. Entrepreneurship not only affect our lives through innovation but represent the working future for many of us due to lays off by large organization and shrinking of job opportunities for graduates. Entrepreneurship is synonymous to creation of new venture and small businesses. SMIs have been important contributors to local economic growth.

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ISLAMIC ENTREPRENEURSHIP

ISLAMIC ENTREPRENEURSHIP FOCUS ON EIGHT PRINCIPLES OF THOUGHTS :1. Entrepreneurship is an integral parts of Islamic religion. 2. By virtue of human nature , the Muslim entrepreneurs are khalifah and have the reponsibilities develop prosperity and sees business as part of ibadah or good deed. 3. Motivation success in Islam is not merely measured by the end result but also the way and means of achieving them. 4. Ibadah business activity is part of ibadah or good deed

ISLAMIC ENTREPRENEURSHIP
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. Islamic Economic System - Islamic Entrepreneurship should operate within the domain of Islamic Economic system and act as the vehicle towards global acceptance of Islamic Economic System.

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ISLAMIC ENTREPRENEURSHIP
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Guiding Principles of Islamic Entrepreneurship is by the al-Quran and al-Hadith Entrepreneurial Ethics based on exemplary conducts of Prophet Muhammad S.A.W

ISLAMIC ENTREPRENEURSHIP AS AS INTEGRAL PART OF THE RELIGION Islam is a complete way of life. There is no separation between business and religion. Islam has its own entrepreneurship culture and guiding principles based on the Al-Quran and Hadith to guide business operation .

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 merely measured by the end result, but also the means and ways of achieving them.

POSITION OF BUSINESS AND ENTREPRENEUR ISLAMIC ENTREPRENEURSHIP MODEL

Islam Proposed (Business Venture)
E X A M P L E E X A M P L E

Allah Prepared (Facilities) Islam Outlined (Rules and Regulation) Allah Promised (Reward)

ISLAMIC ECONOMIC SYSTEM Islamic Entrepreneurship should be in the framework of Islamic Economic System and should assist in establishing the Islamic Economic System

GUIDING PRINCIPLES OF ISLAMIC ENTREPRENEURSHIP

Guidelines for Islamic Entrepreneurship and business activities are wide and comprehensive based on AlQuran and Al-Hadith.

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

THE ETHICAL BEHAVIOR OF MUSLIM ENTREPRENEURSHIP To avoid hateful behavior To avoid wasteing To avoid stinginess To pay zakat Trustworthy To pray consistently Tawakkal Patience Qanaah