THE EVOLUTION OF ENTREPRENEURSHIP THEORY

Definition of an entrepreneur : Richard Cantillon (1755)

From a French word An entrepreneur is a person who

undertakes to do a job

In Malaysia the term usahawan is used for entrepreneur.

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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.

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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.
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THE EVOLUTION OF ENTREPRENEURSHIP THEORY

Joseph Aloysius Schumpeter (1934)

An entrepreneur is an innovator. The economy moves through leaps and bounds and the prime mover is the entrepreneur through the process of creative destruction.

Alfred Marshall (1936)

The process of entrepreneurship or business development is incremental or evolutionary . It evolves from sole proprietorship to a public company.
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THE EVOLUTION OF ENTREPRENEURSHIP THEORY

Ibnu Khaldun (Abdul Rahman Mohamed Khaldun)
The entrepreneur is seen as a knowledgeable individual and is instrumental in the development of a city-state where enterprise will emerge.

David McClelland
The entrepreneur is a person with a high need for achievement. This need for achievement is directly related to the process of entrepreneurship.

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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.

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DEFINITION OF ENTREPRENEURSHIP

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.
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THE IMPORTANCE OF ENTREPRENEURSHIP TO MALAYSIAN 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.

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THE IMPORTANCE OF ENTREPRENEURSHIP TO MALAYSIAN ECONOMY

b. 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. c. Entrepreneurship is synonymous to creation of new venture and small businesses. SMIs have been important contributors to local economic growth.

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THE IMPORTANCE OF ENTREPRENEURSHIP TO MALAYSIAN ECONOMY

d. The entrepreneurial SMIs provide services that the large corporation has neglected or lack of economy of scale for the large corporation to serve. e. Contribution of SMIs to Malaysian Economy In Malaysia the SMIs employed 90% of the total labor force in manufacturing sector and contributed to about 26% of total value added in the sector.

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ISLAMIC ENTREPRENEURSHIP
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. 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

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ISLAMIC ENTREPRENEURSHIP
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 (rezeki) can be found in business. 6. 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.
5.
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ISLAMIC ENTREPRENEURSHIP
7.

8.

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

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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 AlQuran and Hadith to guide business operation .

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HUMAN NATURE (THE FITRAH OF HUMAN BEING)

By

virtue of the human nature, the person must firstly be a Muslim, then an entrepreneur. He has the responsibility to perform ibadah and be a khalifah. Muslim entrepreneur should search for Gods blessings above all other factors. A Muslim entrepreneur perform business not solely for profit, but above all, to fulfill the fardhu kifayah.
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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
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SUCCESS FORMULA BY AL-QURTUBI

Halal Qanaah Taufiq

livelihood that are in accordance to what is being outlined by Allah SWT and syariah.

be pleased and thankful with ones earning

Asking for the blessing of Allah in proportion to ones expectation

Saadah Jannah

Spiritual happiness

Worldly success should act as the bridge to the ultimate success in the life hereafter (paradise).

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SEVEN STEPS TOWARDS A SUCCESS IN LIFE ACCORDING TO IMAM AL-GHAZALI

Level of Knowledge Level of Taubat or repentence Level of Motivation Level of Praise and Thankfulness
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Level of Temptation

Level of Obstacles

Level of Handicap

POSSESSION OF WEALTH IS ALLOWED BASED ON THE FOLLOWING PRINCIPLES:Allah s.w.t is the absolute owner of wealth

Allah created wealth in abundance and sufficient for all

Wealth is created for mankind Wealth is entrusted to mankind

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ISLAMIC ENTREPRENEURSHIP MODEL

Islam Proposed (Business Venture)

Allah Prepared (Facilities)

Islam Outlined (Rules and Regulation)

Allah Promised (Reward)

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ISLAMIC ECONOMIC SYSTEM

Islamic

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

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GUIDING PRINCIPLES OF ISLAMIC ENTREPRENEURSHIP

Guidelines

Islamic Entrepreneurship business activities are wide and comprehensive based on Al-Quran and Al-Hadith

for and

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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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THE ETHICAL BEHAVIOR OF MUSLIM ENTREPRENEURSHIP

To avoid malicious behavior To pay alms (zakat) To avoid squandering To avoid stinginess To pray consistently

Trustworthy

Tawakkal

Patience

Qanaah

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