Chapter 1

INTRODUCTION
TO
ENTREPRENEURSHIP
 In Bahasa Malaysia, the term “usahawan” is used
for “entrepreneur.”
 “Entrepreneur” originates from the French word
“Entreprendre,” meaning to try or shoulder the
task. Introduced by Richard Cantillon (1755), an
economist who relates this term to business
activities.
 Entrepreneur
 In Bahasa Malaysia the term “usahawan” originates
from the word “usaha,” that is attempting to do
something (activities, processes and others), for
achieving (implementing, completing) a task or job.
(Kamus Dewan)
 The word entrepreneur popular among Malaysian in the
mid of 1970s since the implementation of New Economic
Policy.
 Bahasa Indonesia – ‘wirausaha’
 Has certain characteristics that assist in the
endeavour to achieve success.
 Continued…
 Coulter (2000): A process whereby an
individual or a group of individuals use
organized efforts and means to pursue
opportunities to create value & grow by
fulfilling wants and needs through
innovation & uniqueness, no matter what
resources are currently controlled. E/neur is
someone who initiates & actively operates
the ent/rial venture.
 Entrepreneur
….is a catalyst for economic
change who uses purposeful
searching, careful planning and
sound judgment when carrying
out the entrepreneurial process.
(Kuratko & Hodgetts, 2001)
 Schumpeter defined entrepreneurship as
a company that implements a
combination of new product and service
developments, new resources for raw
materials, new methods for production,
new markets, and a new organisational
structures.
 Entrepreneurship
Ability to create and build a vision
from practically nothing (Timmons,
1994)
– a creative act
– initiate and build an enterprise
– willingness to take calculated risks
– ability to build an entrepreneurial team
– see opportunity admist chaos
– possess the know-how to find, marshal
and control resources
 Process

Uniqueness Entrepreneur

E/ship definition
Innovation
Development

The existence of
Value creation organisation
Profit/non-profit

Characteristics found in e/ship definition

 Entrepreneurship in Malaysia
 Entrepreneurship in Malaysia has existed
since the era of the Malay Sultanate in
Malacca.
 The formulation and implementation of
DEB (1970) has introduced the word
entrepreneur to the Malaysian public.
 The Development of
Entrepreneurship Education
 Entrepreneurship – a new field, but has rapidly
developed since late 1970s.
 Currently, entrepreneurship courses is offered by
around 1000 universities in the USA.
 Entrepreneurship attraction – not just focused on
business only.
 The establishment of centres for entrepreneurship
excellence and entrepreneurship development.
 Uses the “multi-faculty” and “multi-discipline”
approaches
 Theory and Model of
Entrepreneurship
1) Economist Perspective
Joseph A. Schumpeter (1934)
Innovation as one of ent/rial characteristics. Innovation means
modification, activities or effort that leads to new discovery.
According to Schumpeter, entrepreneur as an innovator, making sure
that economy is vibrant. Entrepreneur contribute to economic
development.
Alfred Marshall
Ent/ship as an evolution process (business life cycle starting from
the beginning until the business stop it is operation). How
business emerge from small to big. Business ends when the
founder passed away. To continue there is a need to have a
successor or business will be taken over by other entrepreneur.
 Theory and Model of
Entrepreneurship
Israel Kirzner
 Relates entrepreneurship with uncertainty.
Trying to explain profit that arise from e/ship.
Entrepreneur as arbitrager, buying at a
known cost but selling later at uncertain price
(higher or lower)
 Theory and Model of
Entrepreneurship
 Sociologist Perspective
 Max Weber (1958)– ‘Protestant Ethic and the Spirit
of Capitalism’
 Max Weber relates the element of religion as a
foundation to succeed in economic activities. Weber
said that the success of Protestant people in
economic activities is because of the Protestant
ethics. Relates religion with success in economic
activities.
 Theory and Model of
Entrepreneurship
Everett Hagen
Proposes a theory- entrepreneurs exist among
lower level class people that are not satisfied
within a community. Unsatisfied with the
treatment that they received contribute to
their venture into economic activities. This
study was based on research carried out in
Japan, Columbia, UK and Russia.
 Theory and Model of
Entrepreneurship
 Gibb and Ritchie (1981):
British academic scholar which introduce
ent/ship through the approach of social
development model. The role of
socialisation that push individual towards
taking up entrepreneurship. (interaction
with entrepreneurs leads to entrepreneurial
start-ups.
 Theory and Model of
Entrepreneurship
Psychologist Perspective
• McClelland (1961) has identified the personality of
“the need to achieve”
McClelland (1961) –’The Achieving Society’
Individual that has high need for achievement tends to
try hard to achieve goals with his own effort.
 Continue….
 Schumpeter- entrepreneur’s role is to change
econ. status quo through innovation.
Development defined as carrying out new
combinations of factors of production.
 Innovation was the key to ent/ship, The key
role of the entrepreneur’s is to bring
innovation in the marketplace. In doing so,
they create new demand, destroying existing
market & creating new ones.
 Continue…..Schumpeter
 Innovation may result in:
 The creation of a new product or alteration
in its quality
 The development of a new method of
production
 The opening of a new market
 The capturing of a new source of supply
 Formation of new biz organizations
 Historical Development of
Ent/ship
 McClelland (1961):The key to e/rial
behaviour lies in achievement motivation.
The need to achieve is a drive to excel, to
achieve a goal in relation to a set of
standards. A person endowed with a need to
achieve, will spend time considering how to
do a job better or how to accomplish s/thing
important to them
 Continue….
 Kets de Vries (1996) :
 Entrepreneur as creator of risk than a taker, since he often
use someone else’s capital.
 However, even if the entrepreneur does not bear most of
financial risk in business, at an early stage exposed to a
considerable amount of social and psychological risks
(when the risk of failure is high at start-up stage).

 Bolton & Thompson: See entrepreneur as an individual

who habitually creates & innovates to build s/thing of
values from opportunity.
ENTREPRENEURSHIP FROM THE
PERSPECTIVE OF ISLAM
 OBJECTIVES
 1)DISCUSS ENTREPRENEURSHIP FROM THE
PERSPECTIVE OF ISLAM - BINCANG K’WANAN
MENGIKUT PANDANGAN/PERSPEKTIF ISLAM
 2)DISCUSS ENTREPRENEURSHIP AS A BRANCH OF
JIHAD & GOOD DEED/PRACTICE – K’WANAN
SEBAGAI SATU CABANG JIHAD & AMAL SOLEH
 3)MAJOR GUIDELINES ON ENTREPRENEURSHIP IN
ISLAM - GARIS PANDUAN UTAMA KEUSAHAWANAN
DALAM ISLAM
 HISTORY
 ACCORDING TO ISLAM ENTREPRENEURSHIP
STARTED LONG TIME AGO, DURING ADAM’S
ERA WHEN ONE OF HIS SONS, HABIL
VENTURED INTO PLANTATION & THE OTHER
SON, QABIL VENTURED INTO ANIMAL
BREEDING.
 SEJARAH K’WANAN ISLAM BERMULA SEAWAL KEJADIAN
MANUSIA LAGI DI MANA 2 ORANG ANAK KPD NABI ADAM (A.S.)
TELAH MEMPELOPORI 2 BIDANG UTAMA K’WANAN PADA MASA
ITU. HABIL – SEKTOR PERTANIAN & QABIL – MEMPELOPORI
BIDANG PENTERNAKAN
 HISTORY
 MANY PROPHETS WERE INVOLVED IN
ENTREPRENEURIAL ACTIVITIES. SOME OF
THEM VENTURED INTO SECTORS SUCH AS
PLANTATION, BREEDING LIVESTOCKS,
CRAFTS, AND THE BUSINESS OF TRADING.
 RASUL2 LAIN YG DIUTUSKAN ALLAH BANYAK
MENCEBURKAN DIRI DALAM BIDANG K’WANAN SPT.
PERTANIAN, PENTERNAKAN, PERTUKANGAN & PERNIAGAAN
SEBELUM MENJALANKAN AKTIVITI DAKWAH SEPENUH
MASA.
 HISTORY
 PROPHET MUHAMMAD (S.A.W) WAS
INVOLVED IN BUSINESS. FIRST, REARING &
SELLING SHEEPS, THEN HELPING HIS UNCLE’S
BUSINESS & LATER MANAGED SAIDATINA
KHADIJAH’S BUSINESS.
 MANY OF HIS GREAT FRIENDS WERE
INVOLVED IN BUSINESS NOT ONLY IN MECCA
BUT ALSO ACROSS THE BORDER.
 RASULULLAH S.A.W. SENDIRI TERLIBAT DLM PERNIAGAAN
SEJAK KECIL LAGI; BANTU PERNIAGAAN BAPA SAUDARA,
KEMUDIANNYA MENGURUS PERNIAGAAN SAIDATINA
KHADIJAH SEBELUM DIUTUS MENJADI RASUL
 BANYAK SAHABAT2 TELAH MENCEBURKAN DIRI DLM BIDANG
K,WANAN. MENGEMBANG PERNIAGAAN BUKAN SETAKAT
DALAM NEGARA MALAH KE PERINGKAT A/BANGSA.

 ENTREPRENEURSHIP FROM THE
PERSPECTIVE OF ISLAM: THE CONCEPT
 THE CONCEPT OF SYUMUL (INTEGRATED) MEANS
ENTREPRENEURSHIP IS NOT SEPARATED OR ISOLATED
FROM ISLAM ITSELF. THEREFORE, ENTREPRENEURSHIP
FALLS WITHIN THE SYSTEM OF ISLAM (ISLAMIC FAITH,
LAW, MORAL & ETHICS)
 BUSINESS ACTIVITY IS ALSO A RELIGIOUS ACTIVITY.
ACHIEVING WORLDLY SUCCESS AS WELL AS ACHIEVING
SUCCESS THEREAFTER.
 KONSEP SYUMUL (MENYELURUH) DLM ISLAM JADIKAN K’WANAN SBG.
ELEMEN YG TIDAK TERPISAH DARI ISLAM. JUSTERU, K’WANAN JUGA
BERADA DLM LINGKUNGAN SISTEM ISLAM (AKIDAH, SYARIAH, AKHLAK &
ETIKA) SUPAYA KEGIATANNYA TIDAK TERASING DRP KEWAJIPAN2 LAIN DI
DALAM ISLAM. BERNIAGA DI DUNIA TETAPI PUNYA HUBUNGAN DGN
AGAMA & KEHIDUPAN DI AKHIRAT
 E/ship from Islamic Perspectives
 ISLAM ENCOURAGES ENTREPRENEURSHIP ACTIVITIES
AS THE SOURCE OF INCOME.
 PROPHET MUHAMMAD MENTIONED THAT 9/10 OF
SOURCES OF REZEKI (INCOMES) CAN BE DERIVED
FROM BUSINESS ACTIVITIES.

- SEBAGAI AGAMA UTK KESEJAHTERAAN DUNIA & AKHIRAT,

ISLAM MEMANDANG TINGGI KPD AKTIVITI KEUSAHAWANAN.

‘SESUNGGUHNYA 9/10 SUMBER REZEKI BOLEH DIPEROLEHI

MELALUI PERNIAGAAN ’ - RASULULLAH S.A.W.

‘ ..DAN ALLAH MENGHALALKAN JUAL BELI & MENGHARAMKAN

RIBA..’ (AL-BAQARAH:275)
 E/ship from Islamic Perspectives
 With good intention, entrepreneurial activity is
considered as an IBADAT, will be rewarded by Allah
because it generates incomes for entrepreneur himself
& his family.
 By offering products or services to the community
(customers), e/ship is also considered as fardhu
kifayah (fulfilling one’s obligations to the community)
 DGN NIAT & CARA YG DIREDHAI ALLAH, K’WANAN MENJADI SATU IBADAT &
MENDAPAT GANJARAN PAHALA DI SISI ALLAH KERANA IA MENYUMBANG
KPD SUMBER REZEKI INDIVIDU & KELUARGA. MEMENUHI KEPERLUAN
MASYARAKAT (FARDHU KIFAYAH) DGN MENYEDIAKAN BARANGAN
KEPERLUAN MASYARAKAT.
 E/ship from Islamic Perspectives:
Definition
Entrepreneurship can be defined as any
business activities carried out by the
individual in order to produce product
or services in accordance to syariah.
 KEUSAHAWANAN IALAH “MANA2 AKTIVITI
PEKERJAAN YG DIUSAHAKAN SECARA
PERNIAGAAN SAMADA MENGHASILKAN
BARANGAN/MEMBERI PERKHIDMATAN BAGI
MEMPEROLEHI REZEKI YG HALAL DENGAN CARA
YG TIDAK BERTENTANGAN DGN SYARIAH”
 ENTREPRENEURSHIP AS A BRANCH OF JIHAD

 ENTREPRENEURSHIP IS CONSIDERED BY
ISLAM AS ‘JIHAD FISABILILLAH’ (STRONG
EFFORTS TO DO GOOD THINGS IN THE
NAME OF GOD)
 Keusahawanan dianggap sebagai jihad fi sabilillah
(dilakukan secara bersunguh-sungguh demi menegakkan
ajaran Islam & meninggikan syiar Islam).
 Entrepreneurship is considered as
doing amal soleh (good deeds).
 Entrepreneurship activities provides incomes to
individuals, offers job opportunities to the
society, thus eliminate or minimise poverty.
Poverty is one of the causes of social problems.
Entrepreneurship activities also increase the
community’s economic wealth.
 Menjadi sumber rezeki kpd individu, masyarakat &
membangun ekonomi ummah (wujud peluang2 pekerjaan &
pendapatan). Jadi menurunkan masalah sosial, kadar jenayah
dll.
 Entrepreneurship is considered as
doing amal soleh (good deeds).
 Doing good deeds through entrepreneurship will
encourage harmonious relationship between
individuals & individuals and thus will help to
maintain better relationship between individuals
and his god.
 Ibadah& amal soleh adalah amalan baik & merapatkan
hubungan antara manusia dgn Allah serta antara
manusia dgn manusia lain.
 Ent/ship as a branch of Jihad &
good deed/practice
 Enhances the quality-of-life; more comfortable living.
 Strengthening the socio-economic standing of the
nation, religion and country.
 Assists to develop khairun ummah. (best society, a
productive & progressive society)
 Main guidelines in Islamic Ent/ship
 Several conditions for ent/ship to be considered as an
‘ibadah’: (fulfilling ones’ obligation to God)
 Do what you have been told. - pray, fast,etc. while ‘busy’
with the business dealings & activities.
 Avoid doing things that are forbidden by God.
 Practice good deeds/practices. Highlight good
entrepreneurs’ characteristics.
 Good business planning & strategy (do not go against
Islamic teaching).
 Knowing the business rules & regulations (muamalah
Islam).
THANK YOU