THEORIES AND CONCEPT ENTREPRENUERSHIP ISLAMIC ENTREPENUERSHIP AND 8 PRINCIPELS OF THOUGHTS

DEFINITION: [ENTREPENUERSHIP] 1. AN INTEGRAL PARTS OF ISLAMIC RELIGION

2. ‘MUSLIM’ ENTREPRENUER ARE ‘KHALIFAH’ AND HAVE RESPONSIBILTIES TO
 THE CREATION OF NEW ENTREPRISE DEVELOP BUSINESS
 A CHANGE PROCESS THAT RESULT IN THE CREATION OF NEW VALUES 3. SUCCEESS IN ISLAM IS NOT MERELY MEASURED BY THE END RESULT BUT
ALSO THE WAY AND MEANS OF ACHIEVING THEM
*THE WILLINGNESS TO TAKE RISK AND DEVELOP, ORGANIZE AND MANAGE A 4. IBADAH OR ‘GOOD DEED’ THROUGH THE FULFILLMENT OF FARDHU
BUSINESS VENTURE IN A COMPETITIVE GLOBAL MARKETPLACE KIFAYAH
5. AL- QURAN AND AL- HADITH ARE GUIDE PRINCIPLES OF ISLAM
ENTREPENUERSHIP AND BUSINESS ACTIVITIES
6. POSTION OF ENTREPRENUERSHIP AND BUSINESS IN ISLAM [9 OUT OF 10
DEFINITION: [ENTREPENUER] SOURCES OF RIZQUE (RESKI) CAN BE FOUND IN BUSINESS
7. ISLAMIC ENTREPENUERSHIP SHOULD OPERATE WITHIN THE DOMAIN OF
 INDIVIDUALS WHO ACTIVELY FORM OR LEAD THEIR OWN BISUNESS AND
ISLAMIC ECONOMIC SYSTEM AND ACT AS THE VEHICLE TOWARDS GLOBAL
NURTURE THEM FOR GROWTH AND PROSPERITY
ACCEPTANCE OF ISLAMIC ECONOMIC SYSTEM
THEORIES: 8. BASED ON EXEMPLARY CONDUCTS OF PROPHET MUHAMMAD S.A.W

A. PERSON WHO UNDERTAKES TO DO A JOB i. PREVENT LAZINESS

B. PERSON WHO ACTS AS AN AGENT IN TRANFORMING DEMAND INTO SUPPLY ii. ERADICATE FEAR
C. PERSON WHO SHIFT RESOURCES FROM AN AREA OF LOW PRODUCTIVITY TO iii. AVOID GREEDINESS
HIGH PRODUCTIVITY iv. DIVERSIFY BUSINESS VENTURES
D. PRIME MOVER IN PRIVATE ENTERPRISE v. SEARCH FOR LEGITIMATE VENTURES
E. A KNOWLEDGEABLE INDIVIDUAL AND IS INSTRUMENTAL IN THE vi. AVOID FORBIDDEN SOURCES OF INCOME AND
DEVELOPMENT OF A CITY- STATE WHERE ENTREPISE WILL EMERGE PROPERTHY
F. INCREMENTAL OR EVOLUTIONARY. ENVOLVES FROM SOLE vii. GROW AND DEVELOP CAPITAL AND PROFIT
PROPRIETORSHIP TO A PUBLIC COMPANY
THE SUCCESS FORMULA OF AL- QURTUBI:
ISLAMIC VIEW OF ENTREPENUERSHIP
1. HALAL
 KINDNESS 2. QANAAH
 GENEROSITY 3. TAUFIQ
 COOPERATION 4. SA’ADAH
5. JANNAH
PROHIBITED BASED ON ISLAM

 FRAUD
 FAULTY TRANSACTIONS
 MONOPOLOY
 ENTREPENEURIAL BEHAVIOUR AND COMPETENCIES
HALAL ENTREPRENEURAL MOTIVATION:
[LIVELIHOOD THAT ARE IN ACCORDANCE TO WHAT IS BEING OUTLINED
BY ALLAH S.W.T AND SYARIAH]  A DRIVE THAT CAUSES A PERSON TO TAKE SOME GOAL ORIENTED ACTIONS
 A FORCE/ DRIVE WITHIN AN ENTREPRENEUR THAT AFFECT THE DIRECTION,
QANAAH INTENSITY AND PERSISTANCE OF THEIR VOLUNTARY BEHAVIOUR AS AN
[BE PLEASED AND THANKFUL WITH ONE’S EARNING] ENTREPRENEUR

TAUFIQ MCCLELLAND’S HUMAN MOTIVATION THEORY:

[ASKING FOR BLESSINGD OF ALLAH IN PROPORTION TO ONE’S
EXPECATION] AT LEAST THREE GENERAL CATEGORIES OF SOCIAL MOTIVIES AS IMPORTANT
DETERMINANTS OF HUMAN BEHAVIOR:
SA’ADAH A. NEED FOR ACHIEVEMENT
[SPIRITUAL HAPPINES] B. NEED FOR POWER
C. NEED FOR AFFILIATION
JANNAH
[WOELDLY SUCCESS SHOULD BRIDGE TO THE SUCCESS OF THE LIFE IN A. NEED FOR ACHIEVEMENT
THE HEREAFTER o DRIVE TO DO WELL
o STRIVE FOR EXCELLENCE
THE IMPORTANCE OF ENTREPRENUERSHIP TO MALAYSIAN ECONOMY
o OVERCOME CHALLENGES AND OBSTANCLES IN PERSUIT OF GOAL
 INNOVATION
CHARACTERISTICS OF ACHIEVEMENT ORIENTED ENTREPRENEUR:
i. NEW PRODUCT/ SERVICES
I. TOLARANCE FOR FAILURE (LEARNING EXPERIENCE)
ii. IMPROVED BUSINESS PROCESSES
II. TAKE CALCULATED RISKS TO ACCOMPLISH GOALS
III. SEEKING FEEDBACK
 JOB CREATION IV. INTERNAL LOCUS OF CONTROL (CONFIDENT)
V. INTERGRITY AND RELIABITY (TRUST)
i. GENERATED EMPLOYEMENT OPPURTUNITIES FOR 5.6 MILLION
INDIVIDUALS DURING RECESSION IN 1997 TOLARANCE FOR FAILURE:

a. TAKE FAILURE AS LEARNING EXPERIENCE

b. DO NOT EASILY BECOME DISSAPOINTED, DISTRESS BY ANY SETBACK OF
DIFFICULTIES FACED IN THE MIDST OF BUSINESS COMPETITION
c. MANY SUCCESSFUL ENTREPRENEURS BELIEF THAT THEY LEARN MORE
THAN THEIR EARLIER FAILURE THAN THEIR EARLIER SUCCESS

TAKE CALCULATED RISKS TO ACCOMPLISH GOALS:

a. HIGH ACHIEVER TEND TO TAKE MODERATED OR CALCULATED RISK

 THEY MAKE THEIR EFFORT TO GET ODDS I N THEIR FAVOR
 THEY DO NOT TAKE UNNECESSARY RISKS
SEEKING FEEDBACK: PERSONAL ENTREPRENEURIAL COMPETENCE

a. HAVE STRONG DESIRE TO ACIVELY SEEK AND USED FEEDBACK TO KNOW ‘ENTREPRENEURAL COMPETENCES’ – KEY CHARACTERISTICS THAT SHOULD BE
HOW WELL THEY ARE DOING AND HOW TO IMPROVE THEIR PERFORMANCE POSSESSED BY SUCCESSFUL ENTREPRENEURS IN ORDER TO PERFORM
b. ENTREPENEURS ARE QUICK LEARNERS ENTREPRENEURIAL FUNCTIONS EFFECTIVELY

INTERNAL LOCUS OF CONTROL: 13 ELEMENTS OF PEC:

a. BELIEF IN THEMSELVES 1. INITIATIVE/ PROACTIVE

b. DO NOT BELIEF THAT SUCCESS OR FAILURE OF THEIR VENTURES WERE 2. SEES AND ACTS ON OPPURTINITIES
DETERMINED BY FATE OR LUCK 3. PERSISTENT
c. BELIEF THAT SUCCESS OR FAILURE IS DETERMINED BY THEIR OWN EFFORT 4. SEEK INFORMATION
5. CONCERN FOR HIGH QUALITY OF WORK
INTERGRITY AND RELIABITY: 6. COMMITMENT TO WORK CONTRACT
7. EFFICIENCY ORIENTATION
a. HELP TO BUILD AND SUSTAIN TRUST AND CONFIDENCE 8. SYSTEMATIC PLANNING
b. HELP TO ENDURE THE RELATIONSHIP BETWEEN ENTREPENEURS, PARTNERS, 9. PROBLEM SOLVING
CUSTOMERS, SUPPLIERS AND STAKEHOLDERS 10. SELF – CONFIDENCE
11. ASSERTIVENESS
12. PERSUASION
B. NEED FOR POWER: 13. USE OF INFLUENCE STRATEGIES
o INDIVIDUAL (HIGH POWER) HAVE SEEK POSITION OF LEADERSHIP
o POTENTIAL TO BE GOOD MANAGERS, EXECUTIVE OR SUPERVISORS
o DRIVE TO CONTROL, INFLUENCE AND TO HAVE IMPACT ON I. INITIATIVE/ PROACTIVE
OTHERS AND CHANGE THE SITUATION
o [ABLE TO TAKE ACTION THAT GO BEYONG THE JOB
REQUIREMENTS AND TO ACT FAST]
C. NEED FOR AFFILIATION: o [ALWAYS AHEAD OF OTHERS AND ABLE TO BECOME A LEADER IN
 DRIVE TO ESTABLISH MAINTAIN OR RENEW AFFECTIVE THE FIELD OF BUSINESS]
LEADERSHIP WITH OTHERS
 POTENTIAL TO BE GOOD SOCIAL WORKERS II. SEES AND ACTS ON OPPURTINITIES
 CONTRIBUTE TO DRIVE FOR MAINTANING EFFECTIVE BUSINESS
NETWORKING o [ALWAYS LOOK FOR AND TAKES ACTION ON OPPURTUNITIES]

COMPETENCE MOTIVATION: III. PERSISTENT

A DRIVE TO DO HIGH QUALITY WORK o [ABLE TO MAKE REPEATED EFFORTS OR TO TAKE DIFFFERENT
ACTIIONS TO OVERCOME AN OBSTACLE THAT GET IN THE WAY OF
CRITERIA OF COMPETENCE MOTIVATED ENTREPENUER: REACHING GOALS]
o STRIVE TO BE INNOVATIVE
IV. SEEK INFORMATION
o DEVELOP PROBLEM SOLVING SKILL
o SEEK MASTERY IN JOB OR TASK THAT THEY ARE UNDERTAKING o [ABLE TO TAKE ACTION ON HOW TO SEEK INFORMATION TO HELP
ACHIEVE BUSINESS OBJECTIVES OR CLARIFY BUSINESS
PROBLEMS]
 CREATIVITY AND INNOVATION:
V. CONCERN FOR HIGH QUALITY OF WORK
DEFINE CREATIVITY:
o [ACTS TO DO THINGS THAT MEET CERTAIN STANDARDS OF
EXCELLENCE WHICH GIVES HIM GREATER SATISFICATION]  PROCESS OF BRINGING SOMETHING NEW INTO BEING
 GENERATION OF IDEAS THAT RESULT IN IMPROVED EFFICIENCY OR
VI. COMMITMENT TO WORK CONTRACT EFFECTIVENESS OF A SYSTEM
 ABILTY TO USE THE IMAGINATION TO DEVELOP NEW IDEAS, NEW THINGS
o [PLACES THE HIGHEST PRIORITY ON GETTING A JOB COMPLETED] OR NEW SOLUTIONS
 THE MERGING OF IDEAS WHICH HAVE NOT BEEN MERGED BEFORE
VII. EFFICIENCY ORIENTATION

o [ALWAYS FINDS WAYS TO DO THINGS FASTER OR WITH FEWER

DEFINITION OF INNOVATION:
RESOURCES OR AT A LOWER COST]
 ENTREPRENUER CONVERT OPPURTUNITES INTO MARKETABLE IDEAS
VIII. SYSTEMATIC PLANNING  EMBODIMENT, COMBINATION, SYNTHESIS OF KNOWLEDGE IN ORIGINAL,
RELEVANT, VALUED NEW PRODUCTS, PROCESSES OR SERVICES
o [DEVELOPS AND USES LOGICAL, STEP BY STEP PLANS TO REACH
GOAL] PHRASE IN CRETIVE PROCESS

IX. PROBLEM SOLVING I. KNOWLEDGE ACCUMALATION

[INVOLVES SEEKING AND GATHERING
o [CAN IDENTIFY NEW AND POTTENTIAL UNIQUE IDEAS TO ACHIEVE II. INCUBATION
HIS GOAL] III. THE IDEA EXPERIENCE
IV. IMPLEMENTATION
X. SELF – CONFIDENCE

o [HAS STRONG BELIEF IN SELF AND OWN ABILITIES] I. BACKGROUND OR KNOWLEDGE ACCUMALATION
 INVOLVES SEEKING AND GATHERING OF INFORMATION THROUGH
XI. ASSERTIVENESS OBSERVATIONS, READINGS, CONVERSATIONS WITH OTHERS,
ATTENDING SEMINARS, MEETINGS AND WORKSHOPS
o [CONFRONTS PROBLEMS AND ISSUES WITH OTHERS DIRECTLY]
II. INCUBATION PROCESS
XII. PERSUASION  CALMIMG DOWN PERIOD IN WHICH THE ENTREPRENEURS TAKE
TIME TO THINK OF THE BEST POSSIBLE SOLUTION TO UNDERTAKE
o [CAN SUCCESSFULLY PERSUADE OR INFLUENCE OTHERS FOR
MLOBILIZING RESOURCES, OBTAINING INPUTS, ORGANIZING III. THE IDEA EXPERIENCE
PRODUCTIONS AND SELLING HIS PRODUCTS OR SERVICES]  DISCOVERY OF THE NEW IDEAS OR SOLUTIONS TO THE PROBLEM

XIII. USE OF INFLUENCE STRATEGIES IV. EVALUATION AND IMPLEMENTATION

 WIRAKBLE IDEAS TO THE PRACTICE
o [ABLE TO MAKE USE OF INFLUENTIAL PEOPLE TO REACH HIS  BEGIN WITH TESTING THE IDEA AND ASK FOR CUSTOMER’S
BUSINESS GOALS] OPINIONS
COMPONENTS OF CREATIVITY: SCAMPERR

 EXPERTISE CHECKLIST THAT ASSIST STUDENTS TO IMAGINE VARIOUS CHANGES THEY CAN
 MOTIVATION MAKE TO AN EXISTING PRODUCTS/ THINGS TO CREATE A NEW ONE
 CREATIVE THINKING SKILLS
 S: SUBSTITUTE – COMPONENTS, MATERIALS, PEOPLE
 C: COMBINE – MIX, COMBINE WITH OTHER ASSEMBLIES OR SERVICES,
ALTER
I. EXPERTISE  M: MAGNIFY – MAKE IT ENORMOUS, LONGER, HIGHER, OVERSTATED,
[TECHNICAL, PROCEDURAL AND INTELLECTUAL KNOWLEDGE] ADDED FEATURES
 M: MODIFY – INCREASE OR REDUCE IN SCALE, CHANGE SHAPE, MODIFY
II. MOTIVATION ATTRIBUTES
[HOW FLEXIBLE AND IMAGINATIVELY PEOPLE APPROACH PROBLEMS]  P: PUT TO ANOTHER USE
 E: ELIMINATE – REMOVE ELEMENTS, SIMPLIFY, REDUCE TO CORE
III. CREATIVE THINKING SKILLS FUNCTIONALITY
[INTRINSIC AND EXTRINSIC]  R: REARRANGE – CHANGE ORDER, INTERCHANGE COMPONENTS, CHANGE
THE SPEED OR OTHER PATTERN
 R: REVERSE – TURN INSIDE OUT OR UPSIDE DOWN
COMMON CREATIVITY TECHNIQUES: LATERAL THINKING
 MIND MAPS a. SEEKING TO SOLVE PROBLEMS BY UNTHODOX OR APPARENTLY ILLOGICAL
 BRAIN STORMING METHODS
 SCAMPERR b. MOVING SIDEAWAYS WHEN WORKING ON A PROBLEM TO TRY DIFFERENT
 LATERAL THINKING PERCEPTIONS, DIFFERENT CONCEPTS AND DIFFERENT POINTS OF ENTRY
 PROBLEM REVERSAL (GET US OUT OF THE USUAL LINE OF THOUGHT)
 ATTRIBUTE LISTING
PROBLEM REHERSAL

 CHANGE THE DIRECTION OR LOCATION OF YOUR PERSPECTIVE

MIND MAPPING  TURN DEFEAT INTO OR VICTORY
 ‘FLIP – FLOP’ THE RESULTS
I. ‘SPIDER DIAGRAMS’ REPRESENTS IDEAS, NOTES, INFORMATION
II. IN FAR- REACHING TREE DIAGRAMS MAKE A LIST OF PAIRS OF OPPOSING ACTIONS WHICH CAN BE APPLIED TO THE
PROBLEM
BRAINSTORMING
I. STRECH IT/ SHRINK IT
RULES
II. FREEZE IT/ MELT IT
a. DO NOT CRITICIZE
b. DO NOT LIMIT THE NUMBER OF IDEAS
c. DO NOT DISCUSS OR QUESTION AS IT COULD STOP THE FLOW OF
IDEAS
d. LISTEN TO OTHER IDEAS AND USE IT TO GENERATE OTHER IDEAS
ATTRIBUTE LISTING 4. ENVIRONMENTAL BLOCK
a. BLOCKAGES DUE TO EXTERNAL FACTOR [INCLUDE WORKING
 IDENTIFY THE PRODUCT OR PROCESS YOU ARE DISSASTISFIED WITH OR ATMOSHERE, AMOUNT OF STRESS ON INDIVIDUAL, ORGANISATIONAL
WISH TO IMPROVE CULTURE, SUPERVISIORY PRACTICES AND EVEN THE PHYSICAL
 LIST IT ATTRIBUTES SURROUNDINGS OF OUR WORKSPACE
 IDENTIFY ALTERNATIVE WAYS TO ACHIEVE EACH b. FROM PHYSICAL AND MENTAL EXHAUSTION
 COMBINE ONE OR MORE OF THESE ALTERNATIVE WAYS OF ACHIEVING THE
REQUIRED ATTRIBUTES AND SEE YOU CAN COME UP WITH A NEW  TOO MANY DISTRACTIONS
APPROACH TO THE PRODUCT OR PROCESS YOU WERE WORKING ON  BOSSESS WHO PRACTICE AUTOCRATIC MANAGEMENT
 LACK OF CORPORATION AND TRUST AMONG COLLEAGUES
BLOCKS TO CREATIVITY:
5. INTELLECTUAL BLOCK
A. PERCEPTUAL
a. DUE TO INADEQUATE USES OF PROBLEMS SOLVING STRATEGIES
B. EMOTIONAL
b. FOR COMPLAX SITUATION
C. CULTURAL
c. TRAINING AND ENOUGH RESOURCES MIGHT BE SOLUTION
D. ENVIRONMENTAL
E. INTELLECTUAL TYPES OF INNOVATIONS:

1. TECHNICAL
2. OPERATIONAL
1. PERCEPTUAL BLOCK
3. ORGANIZATIONAL
 RELATED TO THE ABILITY TO NOTICE SOMETHING OR COMEOUT TECHNICAL INNOVATION:
WITH AN OPINION ABOUT SOMETHING USING SENSES
 INABILITY TO SEE PROBLEMS FROM DIFFERENT PERSPECTIVES BREAKTHROUGH INVENTIONS THAT HAVE WIDE – REACHING IMPACT
 STREOTYPING, MISSING THE CONNECTIONS OR ASSOCIATIONS AND INFLUENCE WHICH BENEFITS SOCIETY AND BUSINESS
2. EMOTIAL BLOCK CAN BE RADICAL AND DISRUPTIVE FOR PEOPLE, SOCIETY, BUSINESSES
 THE RESULT OF POST TRAUMATIC EXPERIENCES/ OR THE STRESS AND COUNTRY OR THE WHOLE WORLD
OF EVERYDAY LIVING
 THE ROOT IS INSECURITY OPERATIONAL INNOVATIONS:
 FEAR OF WORK
 FEAR OF FUN 1. INVENTION AND DEVELOPMENT OF NEW WAYS TO ACHIEVE A HIGHER
 FEAR OF EXPLORING LEVEL OF PERFORMANCE WITHIN A COMPANY
 FEAR OF PROBLEMS 2. A STRUCTURED APPROACH TO IDENTIFY NEW WAYS OF PRODUCING
3. CULTURAL BLOCK WORLD – CLASS SERVICES AND PRODUCTS TO CUSTOMER AT
 SHARED SYSTEM COGNITIONS, BEHAVIOURS, CUSTOMS, VALUES, RULES REASONABLE PRICE
AND SYMBOLS CONCERNING THE MANNER IN WHICH A SET OF PEOPLE
INTERACT WITH THEIR MANNER, SOCIAL AND PHYSICAL ENVIRONMENT ORGANIZATIONAL INNOVATIONS:
 ARISE DUE TO THE FEAR OF BEING DIFFERENT FROM OTHERS AND
TENDENCY TO MAINTAIN STATUS IMPLEMENTATION OF NEW METHOD IN FIRM’S BUSINESS PRACTICES,
WORKPLACE ORGANIZATION OR EXTERNAL RELATIONS
SOURCE OF INNOVATION: 1. OBSERVE CHANGES IN THE ENVIRONMENT
 GIVE RISE TO NEEDS AND WANT / PROBLEMS AND OPPURTUNITY
I. WITHIN COMPANY OR INDUSTRY EMERGES
 CAUSE BY HUMAN INFLUENCES OR NATURAL ECOLOGICAL
a. UNEXPECTED OCCURRENCE PROCESSES
b. INCONGRUITIES (CUSTOMERS COMPLAINT)
c. PROCESS NEEDS (FOCUS ON SPECIFIC TASK RATHER THAN THE OVERALL i. ECONOMIC
STRATEGY) ii. TECHNOLOGY
d. INDUSTRY AND MARKET CHANGES (ADVANCEMENT IN TECHNOLOGY) iii. POLITICAL
iv. SOCIAL

ENVIRONMENT FORCES NEW BUSINESS OPPURTUNITY

II. WITHIN THE SOCIAL ENVIRONMENT
ECONOMIC HOUSEHOLD FURNITURE
a. DEMOGRAPHIC CHANGES (CHANGE IN CONSUMER PREFERENCE) LUXURIOUS CARS
b. PERCEPTUAL CHANGES (FITNESS CRAZE) SOCIAL RESTAURANT
c. NEW KNOWLEDGE (EMERGENCE OF COMPUTER) FITNESS CENTER
CYBER CAFES
HANDPHONE, LAPTOP COMPUTER
TECHNOLGY ONLINE MARKETTING
BIOTECH – RELATED PHARMACEUTICAL
BUSINESS OPURTUNITY PRODUCT
POLITICAL SMOKE EMISSION CONROL
DEFINITION OF OPPURTINITY:
HELMET AND SEALTBELT
A SITUATION THAT ENABLE AN ENTREPRENEUR TO OFFER MARKETABLE PRODUCTS
OR SERVICES TO INTEREST BUYERS OR END USERS
2. RECOGNIZE CUSTOMER’S NEEDS
PRODUCT OR SERVICE IS STILL NOT IN EXISTENCE  THERE IS A NEED AND WANT TO FULFILL
 ‘NEEDS’ REFER TO BASIC NEEDS THAT THE CONSUMER MUST
PRODUCT OR SERVICE IS ALREADY IN THE MARKET BUT FAILED TO SATISFY
HAVE IN ORDER TO LIVE
THE CUSTOMERS – SO NEED TO BE IMPROVED
 ‘WANTS’ REFER TO A PERSONAL DESIRE FOR SOMETHING THAT IS
CREATE A BUSINESS THAT IS ABLE TO FULFILL THE NEEDS OR WANT AND/ OR SOLVE MORE THAN BASIC NEED
THE PROBLEM
3. DISCOVERING OPPURTUNITY
PRESENCE OF UNFILLED NEEDS AND WANT / PROBLEMS  SOLUTION TO THE PROBLEM REPRESENTED A BUSINESS
OPPURTUNITY
OPPURNITY IDENTIFICATIONS PROCESS:

 OBSERVE CHANGES IN THE ENVIRONMENT

 RECOGNIZE CUSTOMER’S NEEDS
 DISCOVERING OPPURTYNITY

MECHANISM TO IDENTIFY OPPURTUNITY:

 1. EMPLOYEE 2. WEAKNESSES: INTERNAL ATTRIBUTES AND RESOURCES THAT WORK
2. CUSTOMER AGAINST A SUCCESSFUL OUTCOME
3. FINANCIAL INSTITUTIONS 3. OPPUTUNITIES: EXTERNAL FACTORS THAT THE ENTITY CAN CAPATILIZE
4. BUSINESS ASSOCIATES ON OR USE TO ITS ADVANTAGES
5. OTHERS 4. THREATS: EXTERNAL FACTORS THAT COULD JEOPARDIZE THE ENTITY’S
SUCCESS

SWOT ANALYSIS
OPPURTUNITY EVALUATION AND SELECTION PROCESS:
 STRENGTHS:
INVOLVES JUDJING THE VIABILITY OF THE OPPURTUNITY AND ASSESSING ITS
POTENTIAL WHAT DOES YOUR ORGANIZATION DO BETTER THAN YOUR COMPETITION?

CRITERIA:  WEAKNESSES:

a. LESS COMPETITION WHAT DOES YOUR ORGANIZATION NEED TO IMPROVE UPON?

b. CONFORM WITH LAWS AND REGULATIONS
c. WORKABLE AND EFFICIENT  OPPURTUNITIES:
d. POTENTIAL OF MAKING PROFIT AND GROWTH
e. HAS A COMPETITIVE ADVANTAGES [UNIQUENESS] WHAT MARKET TRENDS COULD LEAD TO INCREASED SALES?

OPPURTUNITIES IN CYBER ENTREPRENUERSHIP:  THREATS:

UNLIMITED ON – LINE OPPURTUNITIES WHAT ARE THE ADVANTAGES COMPETITORS HAVE OVER YOUR ORGANIZATUION?

EXAMPLES: STRENGTH: THREATS:

 ON – LINE BUSINESS
 ON – LINE MARKET PLACES
 USING SOCIAL MEDIA FOR BUSINESS
WEAKNESSES: OPPURTUNITIES:
 TRAINING AND CONSULTANCY (INCLUDING EDUCATION)

TOOLS TO ANALYSE A BUSINESS OPPURTUNITY:

 SWOT ANALYSIS
 BUSINESS MODEL CANVAS (BMC)

SWOT ANALYSIS:

i. S: STRENGTH
ii. W: WEAKNESS
iii. O: OPPURTUNITY
iv. T: THREATS

1. STRENGTH: INTERNAL ATTRIBUTES AND RESOURCES THAT SUPPORT A BUSINESS MODEL CANVAS:
SUCCESSFUL OUTCOME
 COMMON BUSINESS FORMULATION METHODS:

a. FAMILY BUSINESS SUCCESSION

b. STARTING FROM SCRATCH
c. BUYING AN EXISTING BUSINESS
d. CYBER ENTREPRENUERSHIP

1. STARTING FROM SCRATCH [ADVANTAGES]

o FREE TO MAKE HIS/ HER OWN DECISIONS
o OPPURTUNITES TO TRY AND PRACTICE HIS/ HER OWN IDEAS
o FREE TO CHOOSE SUITABLE BUSINESS LOCATION AND PREMSE AND
ACQUIRING APPROPRIATE MACHINE AND EQUIPMENT FOR THE BUSINESS
o FREE TO DEVELOP BUSINESS IMAGE AND PERSONALITY THAT SUITS THEIR
DESIRE AND INTEREST

1. STARTING FROM SCRACTH [DISADVANTAGES]

o NEED TO PUT IN A LOT OFF EFFORTS [REQUIRE MORE TIME, ENERGY AND
MONEY TO START NEW THINGS]
o HIGHER CHANCES OF LOSSES DUE TO HIGH PROJECT IMPLEMENTATION
EXAMPLES: COST
o NOT ABLE TO ACCURATELY ESTIMATE SALES, COST AND PROFIT
o NEW VENTURE USSUALLY HAS NO TRACK RECORD

2. BUYING AN EXISTING BUSINESS

 BUYING WHOLE BUSINESS OR PARTIAL SHARES IN THE EXISTING
BUSINESS
 MUST ‘INVESTIGATE’ BEFORE BUYING

ADVANTAGES:
BRAND IS ESTABLISHED
EASY TO GET LOAN FROM BANK [TRACK RECORD]
KNOWN TO OTHERS
HAVE THEIR OWN MARKET TARGET/ PEOPLE

BUSINESS FORMATION DISADVANTAGES:

 CONFLICT COULD ARISE BETWEEN THE NEW ONWER AND
EXISTING EMPLOYEES
HAVE TO RESPECT AND ABIDE THE AGREEMENT THAT
HAVE BEEN MADE BY THE PREVIOUS OWNER WITH
RELATED PARTIES
REQUIRES BIGGER AMOUNT OF CAPITAL EITHER TO BUY
THE WHOLE BUSINESS OR PART OF BUSINESS

3. FAMILY BUSINESS SUCCESSION

(ADVANTAGES)
 PROPER EXISTING MARKETING STRATEGY
 REGULAR CUSTOMER/ EXISTING CUSTOMER
 FREEDOM AND FLEXIBILITY IN DECISION MAKING
 FAMILY MEMBERS HAVE GOOD EXPOSURE TO BUSINESS
ENVIRONMENT
 A WELL PRODUCT AND BRANS

(DISADVANTAGES)

 FAMILY CONFLICT SUCH AS SIBLINGS AND / OR COOUSINS

RIVALRY
 DIFFICULT IN GETTTING THE RIGHT SUCCESSOR
 EARLY – STAGE LIMITED FINANCIAL RESOURCES
 UNSTRUCTED EALY – STAGE BUSINESS ORGANIZATION
 NEPOTISM AMONG FAMILY MEMBER [INCOMPETENT FAMILY
MEMBER IS GIVEN A BETTER MANAGEMENT PSOITON]

4. CYBER ENTREPENEURSHIP
1. CURRENTLY MOST POPULAR SINCE THE EMERGENCE OF
TECHNOLOGY
2. USES INTRANET AS THE BASIS TO START BUSINESS

ADVANTAGES:

LOW START UP COST

FLEXIBLE WORKING HOURS
NO REAL PREMISES NEEDED – CUT COST