Unit 1 Ent600 Intro (Final Version)

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Transcript of Unit 1 Ent600 Intro (Final Version)

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    UNIT 1:INTRODUCTION TO

    TECHNOLOGY ENTREPRENEURSHIP

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

    TECHNOLOGY ENTREPRENEURSHIP

    (ENT600)

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    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.

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    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

    Entrepreneurship Dept, FBM (2009) 3ENT600/UNIT 1 : INTRO

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    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

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    Dimensions of Entrepreneurship:

    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

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    Dimensions of Entrepreneurship:

    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

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    Dimensions of Entrepreneurship:

    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

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    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)

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    Definition of Technology Entrepreneurship

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    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)

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    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)

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    The Entrepreneurial Process

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    Fig 1: The Entrepreneurial Process

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    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

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    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

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    Entrepreneurial Process:

    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

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    Entrepreneurial Process:

    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

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    Fig 2: Idea Exploitation Decision Options

    Idea Exploitation

    Decision

    YES

    NO

    Proceed & Exploit

    Opportunity

    Abandon

    Current IdeaTerminate Processor

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    Entrepreneurial Process:

    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.

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    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

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