CHAPTER 1:INTRODUCTION TO ENTREPRENEURSHIP

 

CHAPTER 1      : INTRODUCTION TO ENTREPRENEURSHIP

Entrepreneurship: Process of creating something new with value and devoting the necessary time and effort, assuming the accompanying financial, physical and social risks and receiving the resulting rewards or monetary and personal satisfaction and independence (Hisrich R.D and Peter M.P)

Entrepreneur: - entre (between)

                      - prendre (to take)

Business : Commercial activity  engaged in as a means of livelihood or profit or an entity which engaged in such activities.

Entrepreneur : Person who starts a new business venture, actively lead their own business & nurture them to growth and prosperity.

Businessperson: Person who engaged in commercial or industrial business (especially an owner or executive).

Entrepreneur	Businessman
Wide scope of business	Narrow scope of business
Social contribution	Profit oriented
Expanded business	Small scale operation and static management

Entrepreneurship vs Small Business

- Amount of wealth creation                            - Speed of wealth creation

- Risk                                                               - Innovation

Development of Entrepreneurship Theories

Richard Cantillon (1725) > Adam Smith (1776) > Jean Baptise Say (1803) > John Stuart Mill (1848) > Carl Menger (1871) > Joseph Aloysius Schumpeter (1934) > Alfred Marshall (1936) > Ibnu Khaldun > David C. Mclelland.

ENTREPRENEURSHIP’S EVOLUTION : Islamic Perspective

Integration

-Islam is a complete way of life. There is no separation between business and religion.

-Islamic entrepreneur is part of the way of life.

-Muslin are encouraged to get involved in business activities.

Worship

-Business – Fardhu Kifayah

Motivation

-Following the sunnah of anbiya and the companion of Rasulullah saw.

-Islamic entrepreneur leads to the path of success both in this world and hereafter.

-Factors that motivate Muslim entrepreneur/types of success (as suggested by Ahmad al-Qurtubi): Halal income, Qanaah, Taufiq, Saadah, and Jannah.

-Islam discourages muslim entrepreneur to accumulate their property by ignoring others.

-Success in Islam is not measured by the result but also the means and ways of achieving it. All the intention, the implementation must be parallel with the Islamic regulation.

Human Nature

-It is a part of human nature to follow the teaching of the religion.

-All human beings are appointed to be the leader/khalifah.

-Maximizing profit is not the ultimate aim of the entrepreneur.

-Islamic Man vs Economic man

System

-Islmaic Economic System : Islamic banking, Insurance & Islamic Capital Markets

Relationship between Business and Entrepreneurship

-A good Muslim entrepreneur must conduct the business activities according to the Islamic principles and conducts.

-Does not allowed to involve in usury and bribery.

Guideline

-Islam has provided an extensive guideline for Islamic entrepreneur activities.

-Doing a business ethically differentiate a good entrepreneur or not.

Behaviour

-An excellent moral conduct shall be pictured as a good behavior in business ethics.

-Business is secondary to the call of Jihad (crusade)

-Never use power or influence for self-interest.

-Afraid of accumulate wealth.

-Leadership qualities in all aspects.

-Practice moderate way of life.

LEVEL OF SUCCESS (ACCORDING TO AL-GHAZALI)

- knowledge     -repentance      -challenges                   -obstacles        

-motivation      -handicap         -praise and thankfulness

POSESSION OF WEALTH

Islam Proposed -> Allah Prepared -> Islam Outlined -> Allah Promised

ADVANTAGES OF BEING ENTREPRENEUR

·         Opportunity to gain control over one’s own destiny

·         Opportunity to reach one’s full potential

·         Opportunity to benefit financially

·         Opportunity to contribute to society and be recognized for one’s efforts.

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