(MEM791)

Ismail Ab.Wahab

1 INTRODUCTION TO
TECHNOLOGY ENTREPRENEURSHIP
ENTREPRENEURSHIP
There has been recognised that
entrepreneurship is the engine for economic
growth. As such, it has lead to the growing
interest in educational programs that promote
and encourage entrepreneurship.
WHAT IS ENTREPRENEURSHIP?
 Entrepreneurship is the….

 Act or process of creating a business or

businesses while building and scaling it to
generate a profit.
 Capacity and willingness to develop,
organize and manage a business venture
along with any of its risks in order to make a
profit.
 presentation of new life-changing solutions.
 WHAT IS ENTREPRENEURSHIP?
Some of the definitions of entrepreneur provided by management
and economic scholars are as follows:
Scholars Definitions
Richard Cantillon Entrepreneurship is the process of bringing money, work and businesses to
(1755) the market to generate new businesses.
Adam Smith (1776) Entrepreneurship is a human activity that leads to changes in the work
process.
Jean-Baptiste Say Entrepreneurship is synthesising resources (land, capital and labour) to
(1803) better manage them in order to have higher productivity and greater
returns.
John Stuart Mill (1848) Entrepreneurship is associated with taking risk and managing a business.
Frank Knight (1921) Entrepreneurship is a project that bears high risks associated with real
uncertainty (cannot determine its chances of success)
Joseph Schumpeter Entrepreneurship is a change process leading to the introduction of a new
(1934) product, a new process, a new way, a new market price, or a new source of
raw material for processing.
Israel Kirzner (1979) Entrepreneurship is associated with individual’s ability to explore and use
opportunities.
Peter Drucker (1985) Entrepreneurship is a process of creating a new market and a new customer.
WHO IS AN ENTREPRENEUR?
Entrepreneur is derived from the French word
entreprendre, meaning “to undertake.”

The entrepreneur is one who undertakes to organize,

manage, and assume the risks of a business.

Although no single definition of entrepreneur

exists and no one profile can represent
today’s entrepreneur, research is providing an
increasingly sharper focus on the subject.
WHAT IS TECHNOLOGY
ENTREPRENEURSHIP?
Technology entrepreneurship is defined as a
style of business leadership that focuses on
identifying high-potential, technology-intensive
business opportunities, gathering resources such
as talent and capital, and managing accelerated
growth and risk using decision-making skills.
WHAT IS TECHNOLOGY
ENTREPRENEURSHIP?
Technology entrepreneurship is also viewed as
the process of assembling resources, technical
systems and strategies by an entrepreneurial
venture to pursue business opportunities.
 SUMMARY DESCRIPTION OF
ENTREPRENEURSHIP
(Robert C. Ronstadt)

 The dynamic process of creating incremental

wealth.
 This wealth is created by individuals who assume
major risks in terms of equity, time, and/or career
commitment of providing value for a product or
service.
 The product or service itself may or may not be new
or unique but the entrepreneur must somehow
infuse value by securing and allocating the
necessary skills and resources.
 AN INTEGRATED DEFINITIONS OF
ENTREPRENEURSHIP
 A dynamic process of vision, change, and creation.
• Requires an application of energy and passion towards
the creation and implementation of new ideas and
creative solutions.

 Essential ingredients include:

• The willingness to take calculated risks—in terms of time,
equity, or career.
• The ability to formulate an effective venture team; the
creative skill to marshal needed resources.
• The fundamental skills of building a solid business plan.
• The vision to recognize opportunity where others see
chaos, contradiction, and confusion.
 THE MYTHS OF ENTREPRENEURSHIP
(Donald Kuratko)

 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)
NATURE OF ENTREPRENEURSHIP
Entrepreneurship
 is a dynamic process
 entails identifying, evaluating and
exploiting entrepreneurial opportunities
 focuses on innovation
OTHER DEFINITIONS OF TECHNOLOGY
ENTREPRENEURSHIP:
 Operating small businesses owned by engineers or
scientists.
 Finding problems or applications for a particular
technology.
 Launching new ventures, introducing new
applications, or exploiting opportunities that rely on
scientific and technical knowledge.
 Working with others to produce technology change.
DIMESIONS OF ENTREPRENEURSHIP
 Risk-taking
Risk-taking refers to an entrepreneur’s tendency to
engage in a risky venture that has the potential to
become either a successful project or a failed
project. Creativity & innovation.
DIMESIONS OF ENTREPRENEURSHIP
 Creativity & Innovation
Creativity involves generation of new and useful ideas as
well as ability to discover new ways of looking at
problems and opportunities. Innovation involves the
process of implementing and converting new ideas into
something of value to the market.
DIMENSIONS OF ENTREPRENEURSHIP
 Opportunity exploitation
Exploitation of entrepreneurial opportunity involves
activities that are conducted in order to gain economic
returns from the discovery of a potential opportunity.
DIMENSIONS OF ENTREPRENEURSHIP
 Pro-activeness
Pro-activeness refers to the propensity to act on
information, ideas and opportunities in a timely
and speedy manner.
 ENTREPRENEURIAL PROCESS
 Phase 1: Idea discovery
 Phase 2: Idea development
 Phase 3: Idea exploitation
 Phase 4: Business growth
 Phase 5: Business exit
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

IDEA IDEA IDEA BUSINESS BUSINESS

DISCOVERY DEVELOPMENT EXPLOITATION GROWTH EXIT
ENTREPRENEURIAL PROCESS
Phase 1: Idea discovery
 The entrepreneurial process begins with the discovery of
a business idea (an opportunity). The business idea is
evaluated through an initial screening process.
 During this phase, potential entrepreneurs will either
actively search for business possibilities that they can
offer in a better, more creative or efficient form.
 This phase is the most critical stage in the
entrepreneurial process, as it allows the entrepreneur to
assess whether the specific business opportunity has
the returns needed compared to the resources required.
ENTREPRENEURIAL PROCESS
Phase 2: Idea development
 This phase involves the process of bringing the business
idea or opportunity into a full-fledge economic activity.
 During this stage, the key activities involved include:
• R&D
• Product design
• Concept testing
• prototyping
• Market testing
• Preparation of initial business plan
ENTREPRENEURIAL PROCESS
Phase 3: Idea exploitation
 This phase is generally characterised by the
decision whether or not to pursue the business
opportunity.
 Decide whether to:
• Proceed to exploit the opportunity,
• Abandon the current idea and go back to search for other ideas, or
• Terminate the process totally and not pursue any other business.

YES Idea
Proceed & exploit
exploitation
opportunity
decision
NO

Abandon existing Terminate the

OR
idea process
ENTREPRENEURIAL PROCESS
Phase 4: Business growth
 It is important for the entrepreneurs to identify
opportunities for business growth in order to
ensure long-term survival of the business.
 Even if the entrepreneur is happy with his
current business performance, he should keep
looking for ways to develop his venture. If not,
he will face risk of declining market share by
allowing his competitors the room to grow.
ENTREPRENEURIAL PROCESS
Phase 5: Business exit
 There may come a time in a business life-cycle when
the entrepreneur decides to exit the business or to end
the business.
 Planning an exit strategy is just as important as
starting up a business. The type of exit strategy that
the entrepreneur may choose depends on various
factors.
 The entrepreneur may choose a non-performing exit or
harvesting a high-performance venture.
ENTREPRENEURSHIP AND THE ECONOMY:
THE ROLE OF ENTREPRENEURSHIP
 Mobilising natural, financial an intellectual
capitals as economic inputs.
 Utilising the capital inputs to create products,
processes and services as economic outputs.
ENTREPRENEURSHIP AND THE
ECONOMY: THE ROLE OF
ENTREPRENEURSHIP
ECONOMIC INPUTS ECONOMIC OUTPUTS

Natural capital Beneficial

outputs
ECONOMY

Financial capital
Entrepreneurs
as agents of
progress

Undesired waste
Intellectual capital
outputs
 Economic Inputs
The economic inputs include natural capital,
financial capital, and intellectual capital.
 Economic Outputs
The economic output consists of the
summation of all business organisations that
provide either the beneficial outputs for society
or the elimination of undesired waste outputs.
THANK YOU