Technopreneurship

Technopreneurship

BSIT 4-1

Technopreneurship

Syllabus

Chapter 1: • Technopreneur & Technopreneurship

Chapter 2• Business Opportunities: Identification,

Evaluation & Selection

Chapter 3• Innovation and Technopreneurship

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Chapter 4• Forms of Business Entities, Regulations and

Business Support System

Chapter 5• Business Plan

Chapter 6• Management of a Small Business

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Chapter 7• Marketing

Chapter 8• Operations Management

Chapter 9• Financial Plan

Chapter 10• Issues on Technopreneurship

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References

i. UiTM Entrepreneurship Study Group (2004). “Fundamentals of Entrepreneurship.” Pearson Prentice Hall.

ii. Peter F.Drucker (1993). “Innovation and Entrepreneurship”. HarperBusiness

iii. W.Chan Kim, Renee Mauborgne (2005). “Blue Ocean Strategy”. Harvard Business School Publishing Corporation

iv. David H.Bangs, Jr (2001). “The Business Planning Guide”, Advantage Quest Publications.

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Subject assignment

• Business proposal– A group consists of max 6 students– Register group members

• CEO/manager– Brain storming session

• Type of business• Type of product• Commercial value..

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How great we are?

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Are there any business opportunities from this scenery?

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How many business should be established to have all this stuffs inside your kitchen?

TechnopreneurshipHow about this messy room?

TechnopreneurshipHow about communication industry?

TechnopreneurshipHow about airlines industry?

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Why do we need an entrepreneur?

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• Identify how many of – Business items (we have to pay)….– Non-business items (free of charge)…– Inside this lecture room???

• Percentage…???% = Business items – non-business items x

100%Business items

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What Can You See, Looking Beyond ?What Can You See, Looking Beyond ?

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Entrepreneur, Technopreneur,

Intrapreneur, Innovator, Manager

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Earlier Viewpoints (1700-1950s)

• The word entrepreneur comes from French word ‘entreprendre’

• “Entreprendre” – individuals who undertake (the risk of new ventures).

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Entrepeneur

• Entrepreneur invests, transforms and makes (profit or loss) [Richard Cantillon, French economist]– In other words, goods are bought at a

certain price, value is added by transforming (the least being to repack) the goods, and the goods are then sold at an uncertain price.

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• “The task of forming an organisation for commercial purposes”

[Adam Smith 1977]

• In his book, Wealth of Nations “The ability to foresee potential through changes in the economy, and to act on the demand thereby created”

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• “The entrepreneur was said to influence society by forming enterprises and was in turn influenced by society to recognise needs and to fulfil through skilful management of resources”[Jean Babtiste Say, 1903, French Economist]

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• “Entrepreneurs are economic agents who transform resources into goods and services, thereby creating an environment conducive to industrial growth” [Carl Menger, 1871, Principles of Economics]

TechnopreneurshipGrain in field has

very low value

Milled flour for baker has high

value

Bulk grain from farmer has low

value

Bread at bakery for sale has high

value

Delivered baked bread is highest

value use

Priority 8

Priority 7

Priority 3

Priority 2

Priority 1

Intermediate steps in transformation

Source: David H.Holt. Entrepreneurship. New Venture Creation Englewood Cliffs, NJ: Prentice-Hall 1992, p.5

Menger’s Model of Value-Added Transformation of Resources

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• “Entrepreneurship is a creative destruction force that sees the destruction of usual ways of doing things by the introduction of new improved ways” [Joseph Schumpeter, 1934, Austrian]

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• Entrepreneurship is a process, and the entrepreneur is an innovator who uses processes to challenge existing norms via combinations of new resources and methods in commerce.

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• They are entrepreneurs who used “technology” as their driven factor in transforming resources into goods and services, creating an environment conducive to industrial growth”…

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• Innovations are not confined to tangible products but also include services and processes. – The continuous improvement in financial

sector– City bank, Air Asia…

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• Entrepreneur seem to be the starters and managers the followers– Initially, entrepreneurs also assume the

role of manager, but later the managerial roles are delegated to the managers.

• Managers do not start businesses, they only manage them.

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• In the world of corporate business, intrapreneurs emerge as that breed who is a cross between managers and entrepreneurs.– They work for the corporation but are

given the task of starting new ventures.

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Any Questions?

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What Is Entrepreneurship?

Nature of Entrepreneurship • It is a socio-economic phenomenon.

• Engine of economic growth

• Creator of wealth and employment.

What is Entrepreneurship?

• It is a creative and innovative human act.

• Ability to create and build a vision from practically nothing.

• Vision requires willingness to take calculated risks.

• It is a discipline, hence it can be learned – Peter Drucker

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Definition of Entrepreneurship

“ Entrepreneurship is the ability to create and build a vision from practically nothing. Fundamentally, it is a human, creative act. It is the application of energy to

initiating and building an enterprise or organization, rather than just watching or analyzing. This vision requires a

willingness to take calculated risks – both personal and financial, and then to do everything possible to reduce the

chances of failure.

Entrepreneurship also includes the ability to build an entrepreneurial or venture team to complement your (the

entrepreneur) own skills and talents. It is the knack for sensing an opportunity where others see chaos,

contradiction, and confusion. It is possessing the know-how to find, marshal and control resources, often owned

by others.” Professor Jeffrey Timmons (1990)

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Entrepreneur Are Made and Not Born

“The entrepreneurial mystique? It’s not magic, it’s not mysterious and it

has nothing to do with the genes. It is a discipline. And like any discipline, it can be

learned.” …Peter

Drucker

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Why People Become Entrepreneurs?

• Definition of an entrepreneur – French word “entreprende” meaning ‘go between’ or ‘enter to undertake’. A person who undertakes to organize, manage and assume risks of business

• How people become entrepreneur ? – By Necessity and Opportunity, Design and Default

• Triggered by ‘Social Disruption or Interruption”

• Entrepreneurs are created in good and bad economic times.

• Achievements and Financial Rewards for an Entrepreneur.

• Many begins but few make it.

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Who Are The Entrepreneurs?

• Paradigm shifters, innovators and opportunists – creative destroyers

• Key change catalysts and agents

• Wealth and employment creators

• Economic engine drivers

• Key actors of the Malaysian Economy

• Entrepreneurs are made and not born – entrepreneurial propensity

• You can be the entrepreneur - if you have what it

takes

• People who like to be their own boss

• People who has experienced a “social disruption”?

• Necessity and opportunity entrepreneurs

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Entrepreneurial Traits (1)

Most Important for Success:

• Innovative & Opportunistic

• Willingness to take risk

• Initiative

• Self reliance

• Perseverance (keep trying to achieve

something)

• Need to achieve

• Self confidence

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Entrepreneurial Traits (2)

Important for Success:

• Leadership

• Competitiveness

• Good physical health

• Creative

• High level of energy

• Versatility

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Entrepreneurial Traits (3)

Least Important for Success:

• Ability to get along

• Patience

• Well organized

• Desire for money

• Tolerate uncertainty

• Need for power

• Need for affiliation

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Difference Between Entrepreneurship And Small

BusinessEntrepreneurship

• Innovation

• Fast growth

• Vision

• Employment creation

• Money making machine

• Higher risk

Small Business

• Little innovation

• Static growth

• Little vision

• Family business

• Earning a

livelihood

• Low or minimum

risk

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US Situation

About 1 million businesses are formed each year in

the US

Between 70 to 80% failed the first year of start-up

10% to 20% last through the next 5 years

Venture investment 1:10 success rate

Venture capitalists expects between 5 to 10 times

return

Source : US Statistics

Entrepreneurship Statistics…Do You Know?

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6 in a million with a high tech business idea eventually

becomes a successful company that goes public / IPO.

Fewer than 20% of the funded starts-up go public.

Bankruptcies occur for 60% of the high tech companies

that succeed in getting venture capital.

Venture capital investors own a large part of the start-up

by the time it goes public: 70 % of hardware companies,

60% of software companies and 50% of internet

companies.

Source: US Statistics

Entrepreneurship StatisticsDo You Know?

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Malaysian Setting & Global Scenario

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Mewujudkan masyarakat saintifik dan progresif, masyarakat yang mempunyai daya perubahan tinggi dan memandang ke hadapan, yang bukan sahaja menjadi pengguna teknologi tetapi juga penyumbang kepada tamaddun saintifik dan teknologi masa hadapan

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Malaysia: Enterprising Culture And Nation

Economic Paradigm Shifts 1950s to 2000s. Wawasan 2020

Ministry for International Trade & Investment - SMIDEC

Ministry for Entrepreneurs & Co-0perative Development.

Multimedia Super Corridor – 7 Flagships.

MSC Status Privileges & Incentives.

Strong Economic Growth & Social Innovation

Rapid Infrastructure Development.

Industry Promotion of Entrepreneurship: Enterprise 50 Awards, Ernst & Young Malaysian Entrepreneur of the Year Award, Venture 2002, MSC-IHL Business Plan Competition, MAVCAP’s Cradle Investment Programme

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MSC Flagship Applications

E-Business

Telehealth

Smart Schools Multipurpose Card

R&D Cluster

Electronic Government

Worldwide Manufacturing Web

Borderless MarketingCentre

Technopreneur Development

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Malaysia Economic Transformation & Drivers

1996

Source : Malaysia’s National Economic Action Council

Labour-driven

Labour-driven

Investment-driven

Productivity-driven

Knowledge-driven

1960 19951970 1980

Primary Commodities

Assembly-type Manufacturing

Medium-tech Manufacturing & Services

High-tech Manufacturing & Services

Knowledge-based

2005 2020

AGRICULTURE / PRIMARY COMMODITY

INDUSTRIAL / IMPORT SUBSTITUTION

TECHNOLOGY / FOREIGN DIRECT INVT

HIGH TECHNOLOGY / SERVICES

KNOWLEDGE BASED / INTELLECTUAL CAPITAL

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NITA Vision

Social

Eco

no

mic

ICT as means

Now•Connectivity of networks

•Equitable access to information

•Culture of learning• Information literate

• ICT as a sector• Information as commodity Inform

ation

Society

•Empowered citizens•Self-regulating•Self-controlled•Fostering creativity• Inclusive society•Strong families

•Value creation through knowledge products and industry Knowledge

Society

Informatio

n

Society

2020

•United•Developed & secure•Strong moral and ethical values

•Democratic and liberal•Tolerant & Progressive

•Competitive, dynamic, robust & resilient

•Fair & equitable distribution of wealth

•Knowledge economy

Civil

Society

Knowledge

Society

Informatio

n

Society

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Info

rma

tion

&

Co

mm

uni

catio

n T

ech

nolo

gy

ICT as a SECTOR

ICT as an ENABLER

Innovation for WEALTH CREATION

Innovation for BALANCED SOCIETAL

DEVELOPMENT

Innovation for GOOD

GOVERNANCE

Malaysia’sICT4D

program forInnovatingtowards aK-nation

Ind

ust

ryS

oci

ety

Go

vern

-men

t

K-economy

K-society

For balanced development through innovation, the ‘ICT4D Framework’ shown, which draws on the principles highlighted thus far, can be used as a guide.

Strategic Framework

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Framing the Strategic ICT R&D Agenda: Strategic Intent

• Innovation for WEALTH CREATION- All sectors of the Malaysian economy creating value

and wealth through successful participation in the emerging knowledge-driven global economy

- Key focus: Knowledge-driven economy

• Innovation for BALANCED SOCIETAL DEVELOPMENT– Inclusive community development through provision of

life changing ICT applications– Key focus: Knowledge society

• Innovation for GOOD GOVERNANCE– Foster form of accountability and transparency in the

process of governance that enhance the quality of life of Malaysians

– Key focus: Participating in governance for quality of life

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Any Questions?