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OFPS Entrepreneurship 3e: © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 - 1

The document discusses small and medium-sized enterprises, business ethics, social responsibilities of entrepreneurs, advantages and disadvantages of e-commerce, and developing entrepreneurial culture. Small and medium enterprises play a crucial role in economic development and provide a base for entrepreneurship. Business ethics and social responsibilities are important principles for entrepreneurs. E-commerce provides benefits but also risks like security issues.

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MD HOSSAIN
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91 views25 pages

OFPS Entrepreneurship 3e: © Oxford Fajar Sdn. Bhd. (008974-T), 2013 1 - 1

The document discusses small and medium-sized enterprises, business ethics, social responsibilities of entrepreneurs, advantages and disadvantages of e-commerce, and developing entrepreneurial culture. Small and medium enterprises play a crucial role in economic development and provide a base for entrepreneurship. Business ethics and social responsibilities are important principles for entrepreneurs. E-commerce provides benefits but also risks like security issues.

Uploaded by

MD HOSSAIN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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OFPS Entrepreneurship 3e All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1


2
Chapter

ISSUES IN
ENTREPRENEURSHIP
OFPS Entrepreneurship 3e All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 2
ISSUES IN ENTREPRENEURSHIP

 AT THE END OF THIS CHAPTER, YOU WILL BE ABLE


TO:
– Define small and medium-sized enterprises.
– Analyze the principles and role of business ethics in
entrepreneurship.
– Explain the social responsibilities of entrepreneurs.
– Understand the application and importance of information
and communication technology in a company.
– Discuss the advantages and disadvantages of e-commerce.
– Explain how the entrepreneurial culture can be developed
and the role of the government in developing the culture.

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 3
SMALL AND MEDIUM-SIZED
ENTERPRISES

 Small and Medium Enterprises (SMEs)


are companies involved in local industries
 Responsible for supplying equipment and
components to local and multi-national
companies

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 4
SME IN MALAYSIA

 Coastal Contracts Bhd (marine transportation)

 Hai-O Enterprise Bhd (cosmetics)

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 5
SME IN MALAYSIA

 NTPM (paper products)

 Success Transformer (electrical manufacturing)

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 6
MICRO-SIZED ENTERPRISES

 A micro enterprise has full-time


employees of less than 10 persons or
annual sales turnover of less than
RM250,000.

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 7
SMALL-SIZED ENTERPRISES

 A small enterprise has full-time employees


of between 5 and 50 persons or annual
sales turnover of between RM250,000 and
less than RM10 million.

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 8
MEDIUM-SIZED ENTERPRISES

 A medium enterprise has full-time


employees of between 51 and 150
persons or annual sales turnover of
between RM10 million and RM25 million.

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 9
SMALL AND MEDIUM ENTERPRISES

 SMEs play a crucial role in the economic


development of a country and provide the
base to further develop entrepreneurship
talent among individuals.

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 10
29/9ROLES OF SMALL AND
MEDIUM ENTERPRISES (SMES)

 Source of innovation and creativity


 Test ground for entrepreneurs
 Career opportunities for productive individuals

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 11
BUSINESS ETHICS

 A branch of ethics that examines ethical rules and


principles within a commercial context and the
various moral or ethical problems that can arise in
a business setting as well as any special duties or
obligations that apply to persons engaged in
commerce

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 12
IMPORTANCE OF BUSINESS
ETHICS
 Social responsibility
 Commitment to the profession
 Good time management
 Personal initiative
 Continuous improvement

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 13
PRINCIPLES OF ETHICS

 Identify and accept the rights of customers


 Be trustworthy
 Carry out a genuine profession
 Provide clear information
 Adhere to fair competition

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 14
SOCIAL RESPONSIBILITIES OF
ENTREPRENEURS

 Responsibilities towards Customers


 Responsibilities towards Staff
 Responsibilities towards Creditors
 Responsibilities towards Environment
 Responsibilities towards Suppliers
 Responsibilities towards Competitors
 Responsibilities towards Society/Community
 Responsibilities towards Government

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 15
IMPORTANCE OF INFORMATION AND
COMMUNICATION TECHNOLOGY IN A
COMPANY

 Attracts a large number of customers


 The company can be visited without time
restrictions
 Gives an image of a well-established company
 Minimizes management costs
 Disseminates business information
 Reduces the size of filing

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 16
ADVANTAGES OF E-COMMERCE

 Faster and easier transactions


 Remains open all the time
 Removes barriers of global trading
 Low operational costs and better services
 No need of physical company set-ups

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 17
E- Commerce

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 18
DISADVANTAGES OF E-COMMERCE

 Risk of being cheated


 No guarantee of product quality
 Tendency to have mechanical failures
 Customer loyalty
 Threats to security and privacy

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© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 19
DEVELOPING
ENTREPRENEURIAL CULTURE
 Having a clear direction
 Maximising self-potential
 Planning strategically
 Managing time effectively
 Being creative and innovative
 Increasing work quality continuously
 Seizing opportunities

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 20
How Companies Can Work
Together
 Merger: two companies legally become one
• All assets and liabilities being merged out of
existence become assets and liabilities of
surviving company
 Stock acquisition: acquired company becomes
subsidiary of acquiring company
 Asset acquisition: assets but not liabilities
become assets of acquiring firm

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 21
Example of Merger Companies

  IJM Corporation Berhad


The decision to merge three companies – IGB
Construction Sdn Bhd, Jurutama Sdn Bhd, and
Mudajaya Sdn Bhd

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 22
How Companies Can Work
Together
 Joint venture: parties work together for lengthy
or indeterminate period of time
– Form NEW, third entity
– Divide ownership and control of new entity, determine
who will contribute what resources
– Advantage: two entities can remain focused on their
core businesses while letting joint venture pursue the
new opportunity
– Downside: governance issues and economic fairness
issues create friction and eventual disbandment
(discontinuation)

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 23
How Companies Can Work
Together
 Acquisition: acquired company becomes
subsidiary of purchasing company
– Most permanent

– Forms of acquisitions
• Merger
• Stock acquisition
• Asset acquisition

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 24
Tutorial 2

1. Define small and medium-sized enterprises.


2. Analyze the principles and role of business ethics in
entrepreneurship.
3. Explain the social responsibilities of entrepreneurs.
4. Discuss the advantages and disadvantages of e-
commerce.
5. Explain how the entrepreneurial culture can be
developed and the role of the government in developing
the culture.

OFPS Entrepreneurship 3e All Rights Reserved


© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 25

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