ENTREPRENUERSHIP
CHAPTER ONE
DR NUR KAMARUL HAFIZ BIN JAMIL
F A C U LT Y O F B U S I N E S S A N D A C C O U N TA N C Y
LINCOLN UNIVERSITY COLLEGE
Outlined Topics
THE ENTREPRENEURIAL PRESPECTIVE
1. The nature of entrepreneurship
2. How entrepreneurship think
3. The intention to act entrepreneurially
4. Entrepreneur background and characteristics
5. Role models and support systems
6. Sustainable entrepreneurship
7. Ethics: An organization’s code of ethics
The Nature of Entrepreneurship
Entrepreneurship plays an important role in the creation and growth of business, as well as in the
growth and prosperity of regions and nations.
“Entrepreneurial Opportunities”
❖ Those situations in which new goods, services, raw materials, and organizing methods can be
introduced and sold at greater than their cost of production
“Entrepreneurial action”
❖Entrepreneurship requires action through the creation of new products/processes and/or the
entry into new markets, which may occur through a newly created organization or within an
established organization.
The Nature of Entrepreneurship
“Entrepreneurial Thinking”
❖Individuals’ mental processes of overcoming ignorance to decide whether a signal represents an
opportunity for someone and/or reducing doubt as to whether an opportunity for someone is also
an opportunity for them specifically, and/or processing feedback from action steps taken.
Types of Entrepreneurial Thinking
1. Think structurally
2. Bricolage
3. Effectuation
Types of Entrepreneurs Think
Think Structurally
➢Forming opportunity beliefs often requires creative mental leaps.
➢E.g. knowledge about existing markets to a new technology that could lead to products/services that satisfy that market.
Bricolage
➢Entrepreneurs making do by applying combinations of the resources at hand to new problems and opportunities
➢This involves taking existing resources (those at hand) and experimenting, tinkering, repackaging, and/or reframing them so they can be used
in a way for which they were not originally designed or conceived.
Effectuation
➢You are trained to think rationally and perhaps admonished if you do not. This admonishment might be appropriate given the nature of the
task, but it appears that there is an alternate way of thinking that entrepreneurs sometimes use, especially when thinking about opportunities.
➢E.g. a chef assigned the task of cooking dinner; 1) the host or client picks out a menu in advance, or 2) looking through the ingredients
available and prepare the meals.
Entrepreneurial Mind-Set
The ability to rapidly sense, act, and mobilize, even under uncertain conditions.
▪Individuals must attempt to make sense of opportunities in the context of changing goals,
constantly questioning the “dominant logic” in the context of a changing environment and
revisiting “deceptively simple questions” about what is thought to be true about markets and the
firms.
▪E.g. thinking of every aspect of a firm’s operation and long-term health.
Cognitive Adaptability
Definition:
➢The extent to which entrepreneurs are dynamic, flexible, self-regulating, and engaged in the process of generating
multiple decision frameworks focused on sensing and processing changes in their environments and then acting on
them.
➢Decision frameworks are organized on knowledge about people and situations that are used to help someone make
sense of what is going on.
Types of Cognitive Adaptability:
1. Comprehension questions
2. Connection tasks
3. Strategic tasks
4. Reflection tasks
The Intention to Act
Entrepreneurially
Entrepreneurs intend to pursue certain opportunities, enter new markets, and offer new products.
However, this is rarely the process of unintentional behaviour.
Intention captures the motivational factors that influence a behaviour; they are indications of how
hard people are willing to try and how much of an effort they are planning to exert to perform the
behaviour.
Types of Entrepreneurial Intentions:
1. Feasible
2. Desirable
Entrepreneurial Intentions:
Feasibility
The perception of feasibility has much to do with an entrepreneurial self-efficacy.
Entrepreneur’s self-efficacy
✓The conviction that one can successfully execute the behaviour required; people who believe they
have the capacity to perform tend to perform well.
✓High self-efficacy – leads to increased initiatives and persistence and thus improve performance.
✓Low self-efficacy – reduces effort and thus performance.
Entrepreneurial Intentions:
Desirability
Entrepreneurs should not only depend on feasibility, but they must also perceive the course of
action as desirable.
Perceived desirability – an individual’s attitude toward entrepreneurial action; the degree to which
he or she has a favourable or unfavourable evaluation of the potential entrepreneurial outcomes.
E.g. produce personal rewards as creative actions.
Entrepreneur Background and
Characteristics
•Help entrepreneurs cope with their problems
•It facilitates the integration and accumulation of new knowledge,
•Providing individuals with larger opportunity set,
Education •Assists entrepreneurs in adapting new situations
•Chronological age (years since birth; initiate the career between the ages of 22 and 45).
•Entrepreneurial age (the age of the entrepreneur reflected in his or her experience)
Age
•Influence the decision to launch a new entrepreneurial venture
Work •Play a role in the growth and eventual success of the new venture
History
Role Models and Support Systems
Role Support
Models Systems Moral support
Individuals whose network; individuals
example an who give
entrepreneur can psychological
inspire to and copy support to an
entrepreneur
Professional
e.g. parents, support network;
siblings, other needs advice and
entrepreneurs such counsel throughout
as Elon Musk the establishment
of the new venture
Sustainable Entrepreneurship
Entrepreneurship that focuses on preserving nature, life support,
and community in the pursuit of perceived opportunities to bring
future products, processes, and services into existence for gain,
where gain is broadly construed to include economic and non-
economic benefits to individuals, economy, and society.
