Unit 1 Ent600 Intro (Final Version)

7/22/2019 Unit 1 Ent600 Intro (Final Version)

1/24

UNIT 1:INTRODUCTION TO

TECHNOLOGY ENTREPRENEURSHIP

Entrepreneurship Dept, FBM (2009) 1ENT600/UNIT 1 : INTRO

TECHNOLOGY ENTREPRENEURSHIP

(ENT600)


2/24

Definition of Entrepreneurship

Entrepreneurship is a dynamic process that involveschange and creation

Entrepreneurship can be defined as the identification,evaluation and exploitation of previously unexploitedopportunities. The focus is on creation of a newenterprise or business as well as the wealth associatedwith it. Essential dimensions or ingredients includewillingness to take calculated risk, the skill to apply

creative solutions and new ideas and finally, being pro-active to act on opportunities while others are stillconfused or unaware of the potential at hand.



3/24

Understanding Entrepreneurship

Entrepreneurship encompasses several

dimensions or ingredients that help explain what

makes it a unique concept

The key dimensions of entrepreneurship include:

Risk

Creativity & innovation Opportunity exploitation

Pro-activeness



4/24

Dimensions of Entrepreneurship:

Risk

Risk indicates elements of uncertain outcomes or events

that is inherent in the process of exploiting an opportunity

and starting a business

Entrepreneurs take risks in order to obtain the higher

rewards that come from higher risk but are careful to

evaluate the risk first.

Success comes from taking a calculated, carefully-

thought out approach to risk where everything possible is

done to identify and minimize potential problems

Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 4


5/24


Creativity & Innovation

Entrepreneurship is characterized by newness or

the specific effort of bringing something new and

something different to the market.

Being creative and innovative are essential

dimensions of newness

Creativity focuses on thinking of new things whileinnovation focuses on doing new things



6/24


Opportunity Exploitation

Entrepreneurship is focused on takingadvantage or exploiting of previouslyunexploited opportunities

The exploitation of opportunities often result inthe creation of a new enterprise or business aswell as the wealth associated with it

The new enterprise should be beneficial to thesociety and make a positive change



7/24


Pro-activeness

Pro-activeness refers to the propensity to act oninformation, ideas and opportunities in a timelyand speedy manner

Acting at the right time and in the right manneron the superiority of an idea or opportunity candifferentiate between better success or less

success or even between success and failure



8/24

Technology entrepreneurship can be defined as a form of

entrepreneurship and business leadership focused on identifyinghigh-potential, technology-intensive business opportunity for

possible exploitation into new products, processes or services

Technology entrepreneurship can be based on revolutionary

breakthrough in technology (inventions or radical innovations) or

a technological advancement (incremental innovations)

Can target existing market or create an entirely new one

The process is relevant for both independent startups or within

established corporations

(Adapted from Dorf & Byers, 2005)


Definition of Technology Entrepreneurship


9/24

The Entrepreneurial Process

The entrepreneurial process in general

encompasses all the cognitive (thinking)

and behavioral (action) steps from theinitial emergence of a rough business idea

until the creation of a new business venture

or the process is terminated.

(Adapted from Davidsson (2005)



10/24

The entrepreneurial process is generally

composed of three key phases

The idea generation or idea discovery phase

The idea evaluation and development phase

The idea exploitation phase

Figure 1 shows the entrepreneurial process withexamples of activities at each stage

Entrepreneurship Dept, FBM(2009)

ENT600/UNIT 1 : INTRO 10

The Entrepreneurial Process


11/24

Fig 1: The Entrepreneurial Process


Idea Search &

Generation Phase

Idea Evaluation &

Development Phase

Idea Exploitation

Phase

Idea Discovery

Idea Screening

Research & Development

(Invention/Innovation)

Concept Testing

PrototypingTest Marketing

Technology Blueprint

Business Start-up

Technology

Commercialization

Monitoring &

Evaluation


12/24

Entrepreneurial Process:

Idea Search and Generation Phase

This phase is also known as the opportunity formation oropportunity discovery phase

Both the terms idea and opportunity indicate thepossibility of bringing something new to the market

Individuals or groups of individuals enter this phase byeither:

Actively searching for business possibilities that theycan offer in a better, more creative or efficient form or

Discovering a solution for their own problemexperienced at work, play or in the marketplace thathas the potential of being shared with others who arewilling to pay for the solution



13/24


14/24


Idea Evaluation & Development Phase

This phase is characterized by efforts to betterunderstand what it will take to bring the idea oropportunity into a full-fledge economic activity orbusiness

In technology entrepreneurship, some key activities atthis stage include

doing the research and development work to invent orinnovate a new technology-based product, process orservice

preparing the initial technology blueprint concept testing

prototyping,

market testing



15/24


Idea Exploitation Phase

This phase is generally characterized by the decision to

pursue the business opportunity or not

The decision at this phase can take three basic forms

(Fig 2): proceed to exploit the opportunity

abandon the current idea and go back to search for

other ideas

terminate the process totally and not pursue any otherbusiness ideas



16/24

Fig 2: Idea Exploitation Decision Options

Idea Exploitation

Decision

YES

NO

Proceed & Exploit

Opportunity

Abandon

Current IdeaTerminate Processor



17/24


Idea Exploitation Phase

If the decision is to exploit the opportunity,among the key activities include the registering

of the business entity (in the case of an own new

business), hiring workers and starting business

operations

In a technology based business, a unique

activity at this phase is the commercialization ofthe technology-based product, process or

service that may or may not require the creation

of a new business venture.



18/24

Entrepreneurship & the Economy:

The Role of Entrepreneurship

Economic growth and vitality can be generated byencouraging entrepreneurial activity in the society.

Entrepreneurial activity is centered around entrepreneurswho act as agents of progress

In order to contribute to economic growth, entrepreneursmust

Mobilize natural, financial and intellectual capital ascapital inputs in the economy and

utilize the capital inputs to create products, processesand services as economic outputs



19/24


20/24


The Economic Inputs

Natural capital

Consist basically of natural resources such asminerals, fuels and energy

Can also include natures biological capacityto produce (e.g. oxygen) or absorb

(e.g. pollution)

As such this natural capital can be irreversiblydepleted through neglect or irresponsibleusage



21/24


The Economic Inputs

Financial capital

Refers to financial assets such as money and shares

Can include exclusive use of technological designsand products that have financial value

Intellectual capital Refers to knowledge that is accessible within an

business because it has been recorded (e.g. indocuments and reports), explained (e.g. throughknowledge sharing processes ) and disseminated

(e.g. through inter-team or inter-department project orresearch work)



22/24


The Economic Inputs

There are three key sources of intellectual capital

Human capital This is the combined knowledge, skill and abilities

of the entrepreneurial team and the businessemployees

Organizational capital This is the management structure and peripherals

(including hardware, software, databases patentsand systems) that support the human capital

Social capital The relationships and the quality of the

relationships that the business maintains with itssuppliers, partners and customers



23/24


24/24

References

Dorf, Richard C., & Byers, Thomas H. (2005).

Technology Ventures: From Ideas to Enterprise.

New York,USA: McGraw Hill

Davidsson, Per. (2005). Proceedings, Academy

of Management Conference,Hawaii

(http://eprints.qut.au/active/00002064retrieved

25 June 2008)

http://eprints.qut.au/active/00002064http://eprints.qut.au/active/00002064

Unit 1 Ent600 Intro (Final Version)

Documents

Transcript of Unit 1 Ent600 Intro (Final Version)