Course :ENTR6003 – Entrepreneurship I

Year : 2016

ENTREPRENEURSHIP &
ENTREPRENEURS
The Overview

Session 1
F2F
 Learning Objectives

LO 1: Identify entrepreneurs personality and innovative business idea

 Sub-Topic

• Myth in and of Entrepreneurship

• Why Entrepreneur?
• The Entrepreneurs and the intrapreneurs
Myth Of Entrepreneurship
Entrepreneurship
“A process of innovation and new-venture creation through four
major dimensions—individual, organizational, environmental,
process—that is aided by collaborative networks in government,
education, and institutions”.

Entrepreneur
“A catalyst for economic change who uses purposeful searching,
careful planning, and sound judgment when carrying out the
entrepreneurial process”.
 The Myth

Myth 1: Entrepreneurs Are Doers, Not Thinkers

Myth 2: Entrepreneurs Are Born, Not Made
Myth 3: Entrepreneurs Are Always Inventors
Myth 4: Entrepreneurs Are Academic and Social Misfits
Myth 5: Entrepreneurs Must Fit the “Profile”
Myth 6: All Entrepreneurs Need Is Money
Myth 7: All Entrepreneurs Need Is Luck
Myth 8: Ignorance Is Bliss For Entrepreneurs
Myth 9: Entrepreneurs Seek Success But Experience
High Failure Rates
Myth 10: Entrepreneurs Are Extreme Risk Takers (Gamblers)
(Kuratko, 2016)
Why Entrepreneurs?
 OVERVIEW

A happy newly Can’t Wait to Get the

graduated student First Professional Job

Expect so Much from

Someone who just got the Job
his/her first official
additional educational title

This is YOU in 2 years

 Questions

1. What is the reason of choosing to be a professional

worker?
2. Why it should be a professional worker?
What should
3.beWouldn’t
thought by it
Anbe any other option(s)?
Entrepreneur
4. What would the option(s) be?
The “Must Have” Mindset of Entrepreneur Generate the Passion of An Entrepreneur
Professionals
Workers

Entrepreneur
 Professionals
Workers

Fresh graduated
 Professionals
Workers

Small office A junior staff

Standard small salary for

Self-owned
Endless work hours Fresh graduated
vehicle
Top UMP in Indonesia is in Jakarta with Rp 2,7 millions per
month.

Salary Expectation of Fresh Graduated is around 5 to 10 milion.

Companies are only willing to pay fresh graduates between Rp 3

million to Rp 6 million per month. If lucky, and had special
capabilities, fresh graduated could get Rp 7 per month (rarely).
 What
COULD
You Do with
that much amount
of

INCOME?
Lets discuss
about it
a little bit
further and
deeper!
First:
Create a list of your needs in a month!
Than, check it once again!

Second:
Put some numbers (price) on every single
thing on your list!

Last:
Sum up all of the numbers!
Do the math, and match it with the
Possible amount of your first salary
As professional workers!
 EXAMPLE

List of needs in a month:

 Boarding house Rp 1.000.000,-
 Daily meal (3x Rp 20.000,- x 30 days) Rp 1.800.000,-
 Transportation/pay the motorcycle loan Rp 750.000,-
 Toiletries, laundry etc Rp 250.000,-
 Communication (cellphones etc) Rp 200.000,-
 Snacks ( Rp 20.000,- x 30 days) Rp 600.000,-
 Entertainment (Rp 100.000,- x 4 days) Rp 400.000,-
Sub Total Rp 5.000.000,-
 EXAMPLE

 Boarding house Rp 750.000,-

 Daily meal (3x Rp 15.000,- x 30 days) Rp 1.350.000,-
 Transportation/pay the motorcycle loan Rp 750.000,-
 Toiletries, laundry etc Rp 150.000,-
 Communication (cellphones etc) Rp 100.000,-
 Snacks ( Rp 20.000,- x 15 days) Rp 300.000,-
 Entertainment (Rp 100.000,- x 2 days) Rp 200.000,-
Sub Total Rp 3.600.000,-

Do you know
what is missing there?
After a full time work in a whole month,
Have you put
“saving ”
in your list of needs?
 Lets do the Math!

 Possible Condition
 If your Income (monthly salary) was Rp 5.000.000,-
And your monthly expenses was Rp 5.000.000,-
There would be nothing left at all. Your balance would be ZERO.
 But if your monthly expenses was only Rp 3.600.000,-
You could save some money, somewhere around
Rp 500.000 – Rp 1.400.000,-
 What if your income is less than Rp 5.000.000,-?
 You might be in the Negative Income Zone!
 You could only have two options:
 Increase your salary (by moving to other company)
 Or, push yourselves harder to reduce the expenses (at the mean time)
 Do Another Math!

Lets say, that you are a form of investment of your parents

They, invested their money by sending you to college
With the hope that after you graduated,
You would be able to earn as much as you needed,
Not for them, but for yourselves.

How much money that

they would have been invested
by the time you graduated?
 Cost Production
of investing in you (your college)!

 Tutorial Fee/Semester : Rp 10.000.000,-

 Entrance Fee : Rp 25.000.000,-
 Living Cost/Month : Rp 4.000.000,-
 Unpredicted/Month : Rp 1.000.000,-
 Cost Production
of investing in you (your college)!

 Tutorial Fee/Semester : Rp 10.000.000,- ( X 8 ) = Rp 80.000.000,-

 Entrance Fee : Rp 25.000.000,- ( x 1 ) = Rp 25.000.000,-
 Living Cost/Month : Rp 4.000.000,- ( X 48 ) = Rp 192.000.000,-
 Unpredicted/Month : Rp 1.000.000,- ( x 48 ) = Rp 48.000.000,-
Sub Total = Rp 345.000.000,-
Your Parents had already spent
Rp 345.000.000,- as their investment in You!
If you could managed on saving Rp 1.000.000,- per month,
You would have to spend

28,5 years to install it

To return their invetment!
 The Question is:

Which ‘street’ would you choose?

 The Entrepreneurs
And The Intrapreneurs
 Difference between
Entrepreneur & Intrapreneur
Bases of Difference Entrepreneur
1. Dependency An entrepreneur is
independent in his
operations.
2. Raising of Funds An entrepreneur himself
raises funds required for the
enterprise.
3. Risk Entrepreneur bears the risk
involved in the business.
4. Operation An entrepreneur operates
from out-side.
Intrapreneur
But, an intrapreneur is dependent
on the entrepreneur, i.e., the owner.
Funds are not raised by the
intrapreneur.
An intrapreneur does not fully bear
the risk involved in the enterprise.
On the contrary, an intrapreneur
operates from within the
organisation itself.
 References
Osterwalder, Alexander; Pigneur, Yves (2010). Business Model Generation: A
Handbook for Visionaries, Game Changers, and Challengers. John Wiley & Sons,
Inc. New Jersey. ISBN: 978-0470-87641-1

http://www.yourarticlelibrary.com/entrepreneurship/difference-between-
entrepreneur-and-intrapreneur-explained/40643/