L3_Theories & Concepts of Entrepreneurship
-
Upload
syafinaz-wan -
Category
Documents
-
view
220 -
download
0
Transcript of L3_Theories & Concepts of Entrepreneurship
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
1/21
Theories & Concepts of
Entrepreneurship
Mohamed Dahlan Ibrahim, Ph.D
Associate Professor
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
2/21
AFT 1013 DR. DAHLAN 2
Session Objectives
At the end of the session, students should be
able to:
Understand the various theories and concepts ofentrepreneurship
Have a deeper understanding of the discipline of
entrepreneurship
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
3/21
AFT 1013 DR. DAHLAN 3
Definition of an Entrepreneur
An entrepreneur is a person who undertakes to
do a job. The term entrepreneur originated from
a French word entrependre was first coined byRichard Cantillon (1755).
In Malaysia, the term usahawan is used to
mean entrepreneur.
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
4/21
AFT 1013 DR. DAHLAN 4
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 angoing concern.
The study of entrepreneurship is concerned with
the entrepreneurial behavior, the dynamics ofbusiness set-up and expansion or development
of an entrepreneurial organization.
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
5/21
AFT 1013 DR. DAHLAN 5
Development of
Entrepreneurship Theories
Adam Smith (1776) An entrepreneur is a person who
acts as agent in transforming demand into supply.
Jean Baptiste Say (1803) An entrepreneur is a personwho shifts resources from an area of low productivity to
higher productivity.
John Stuart Mill (1848) An entrepreneur is a prime
mover in the private enterprise. The entrepreneur is the
fourth factor of production.
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
6/21
AFT 1013 DR. DAHLAN 6
Development of
Entrepreneurship Theories
Carl Menger (1871) The entrepreneur acts as aneconomic agent who transforms resources into productsand services. These transformation process gives added
value to the output. Joseph Aloysius Schumpeter (1934) The entrepreneur is
an innovator. The economy moves through leaps andbounds because of the innovations. This process is known
as creative destruction Alfred Marshall (1936) The process of entrepreneurship
development is evolutionary. The entrepreneur isresponsible for the evolution of sole proprietorships into a
public company.
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
7/21AFT 1013 DR. DAHLAN 7
Development of
Entrepreneurship Theories
Ibnu Khaldun (Abdul Rahman Mohamed Khaldun)
The entrepreneur is seen as a knowledgeable individual
and is instrumental in the development of a city-statewhere enterprises emerge.
David C. McLelland (1951) The entrepreneur is a
person with a high need for achievement. This need for
achievement is the foundation of the entrepreneurshipprocess.
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
8/21AFT 1013 DR. DAHLAN 8
Islamic Entrepreneurship
Discussion on Islamic entrepreneurship is based on the
following main topics:
IntegrationHuman nature
Motivation
Islamic business and entrepreneurs
Islamic economic system
Guidelines
Exemplary conducts
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
9/21AFT 1013 DR. DAHLAN 9
The Concept of Integration
Islam is a complete way of life. There is no
separation between business and religion.
Islamic entrepreneurship is part of the way oflife.
Muslims are encouraged to get involve in
business activities. (9/10 rezeki adalah dalamperniagaan Hadis Nabi)
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
10/21AFT 1013 DR. DAHLAN 10
Human Nature
It is part of human nature to follow the teachings of theirreligion.
In Islam, Muslims are required to fulfill two importantduties, ibadah and khalifah.
In Islamic entrepreneurship, Muslims are able toperform both duties.
Maximizing profit is not the ultimate aim of Muslimentrepreneurs.
Islamic Man versus Economic Man
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
11/21AFT 1013 DR. DAHLAN 11
Motivation
Following the sunnah of ambiya and the
companion of Rasulullah saw.
Islamic entrepreneurship leads to the path ofsuccess both in this world and the hereafter.
Success in Islam is not measured by the end
result but also the means and ways of achievingthem.
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
12/21AFT 1013 DR. DAHLAN 12
The type of success according to
Al-Qurtubi
Halal (Rightful means of living)
Qanaah (Satisfying)
Taufiq (Guidance)
Saadah (Tranquility)
Jannah (Heaven)
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
13/21
AFT 1013 DR. DAHLAN 13
The level of success according
to Al-Ghazali
Depends on the following:
Level of knowledge
Level of repentanceLevel of challenges
Level of obstacles
Level of motivation
Level of handicap
Level of praise and thankfulness
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
14/21
AFT 1013 DR. DAHLAN 14
Possession of Wealth
In Islam, possession of wealth is allowed based
on the following principles:
Allah s.w.t. is the absolute owner of wealth
Allah s.w.t. has created wealth in abundance and
sufficient for all
Allah s.w.t. has created wealth for mankindWealth is entrusted to mankind
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
15/21
AFT 1013 DR. DAHLAN 15
Entrepreneurship as Ibadah
Muslim entrepreneurs involvement in business is
to fulfill an obligation known as fardhu kifayah
Muslim entrepreneurs bear the responsibility toprovide goods and services primarily to the
Muslim community and to others
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
16/21
AFT 1013 DR. DAHLAN 16
Islamic Entrepreneurship Model
Islam Propagates
(Business Venture)
Allah Prepared
(Facilities)
Islam Provides
(Guidelines & Procedures)
Allah Promised
(Rewards)
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
17/21
AFT 1013 DR. DAHLAN 17
Islamic Economic System
Islamic entrepreneurship is part of the frameworkof the Islamic Economic System.
Islamic economic system involves:Islamic banking
Islamic insurance (takaful)
Islamic capital markets
Islamic economic system is based on Islamicjurisprudence.
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
18/21
AFT 1013 DR. DAHLAN 18
Guidelines and Procedures
Islam has provided an extensive guidelines for
Islamic entrepreneurship activities.
Among others:
The principle of buying and selling
The permissible types of business
The principle of zakat in business
Business ethics and so on
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
19/21
AFT 1013 DR. DAHLAN 19
Entrepreneurial Ethics
Prevent laziness
Eradicate fear/shyness
Search for legitimate venturesAvoid unlawful sources of income
Show gratitude and thankfulness
Grow and develop wealth Diversify business ventures
Avoid greediness
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
20/21
AFT 1013 DR. DAHLAN 20
Entrepreneurial Ethics
Avoid malicious behavior
Avoid squandering
Avoid stinginess Pay zakat and alms
Be trustworthy
Pray consistently
Tawakkal
Patience
Qanaah
-
7/29/2019 L3_Theories & Concepts of Entrepreneurship
21/21
AFT 1013 DR. DAHLAN 21
Exemplary Conducts of Muslim
Entrepreneurs
Business is secondary to the call of jihad
(crusade)
Never use power or influence for self-interest
Afraid of accumulated wealth
Leadership qualities in all aspects
Practice moderate way of life