Explain clearly the concept of entrepreneurship, business ownership and procedures in setting up a business in case
Definition of business idea and
Business concept that result in profits if it is
turned into tangible product or service.
Opportunity is the potential to create
something new that involve changes in
knowledge, technology, economy, politics,
social and demographic.
A successful entrepreneur is one who capture
Primary sources of business ideas and
Refer to information gathered directly
Data is gathered by observing & recording
Observation method-’what’ is happening
E.g.: individual sitting at focus location every day for
a week and counting the numbers of people.
Make a number of sample products and provide
them to a small group of customer.
The result of this experiment can be used to
determine how well the product.
With customers, suppliers, competitors and
Two types of interview:
-personal :need to be friendly and polite
not to influence the interviewee’s
-telephone: need to include alternative way to
make interviewee understand the question.
Develop questionnaire wit respect of target
The question should be specified limited and
straight word answer like yes or no, excellent,
good and poor.
Published information from library, internet and
paid data base services which provide information
of market growth, overall industry perspectives
and customer profile.
Mass media &
Advertisement & information in newspaper,
magazine & internet.
Existing data which reliable
E.g.: information from annual report
Process of recognizing, analyzing and
choosing a business opportunity
There are six major steps in recognizing, analyzing and
choosing a business opportunity.
Recognizing customer needs and wants
-entrepreneur has to be sensitive to identify.
customer need and wants.
-a need is something basic in life. e.g. food, clothing, house.
-wants are something that is more than basic need. e.g.
radio, laundry service.
Scanning the business environment
Demographic such as population structure, income
-demographic is a study of characteristic people in
-predicts the product or service that might bought from
-based on the structure, income and taste of population
-e.g the needs and wants of children will not be same as
-e.g Malaysia community prefer to buy their meals and
not cook at home. So it increase demand of instant
-there are still abundance of local resources that
are untapped and have potential to be
e.g clay that can be used to create vase,
ceramic and others.
New government policies and regulation
-can identify business opportunity by refering to
the existing law and government regulation.
e.g rules and regulation for speed trap, the black
box for express busses.
Data on import export
-continuous increase in the value and quantity of
imported and exported products and services.
-e.g the pattern of import and export can provide
information pertaining to business opportunities. There is
a chances to offer new product.
-identify the industry that requires input from other
-develop an interaction or linkage among industries.
-e.g. education industry in Malaysia will develop of new
products and services such as stationary, tuition centre
and bus/van service.
-developmental programmed by government or firm
opened up business opportunities.
-e.g. Putrajaya. The government complex created a market
need of product and service.
-create new markets and opportunities for business.
-e.g. hand phone technology
Mass media and electronic media
-advertisement and information in newspaper, internet etc.
Assessing society values, community response and
Choosing business opportunities
-business idea must be approved by the law.
e.g. cigarette business
-must really analyze his competitors in industry.
-any form of employed to produce more wealth firm
-any form of employed to produce more wealth firm.
-types of capital:
Permanent capital Use to buy asset
e.g., building, machine, land
Working capital Use to support business operation in
e.g, raw material, pay bill, salaries
Plantation capital Used to help small business
-should be aware of the risk that will be face in the venture.
-risk faced by entrepreneur:
* difficulties in entering the business field
* danger the amount of capital invested
* amount of profit that can be gained
* management of energy resources
* the product’s potential in market
-two types of risk
* business risk-beyond the control of entrepreneur
* financial risk-credit, level of cash liquidity, loan,
Construct the business plan
Approaches to seeking
in the community
The usage of
Guideline in choosing a business idea
Hiring of a workforce
Preparation of a