Technopreneurship
BEE4613
BEE4613 Technopreneurship
Syllabus
Chapter 1:
• Technopreneur & Technopreneurship
Chapter 2
• Business Opportunities: Identification,
Evaluation & Selection
Chapter 3
• Innovation and Technopreneurship
BEE4613 Technopreneurship
Chapter 4
• Forms of Business Entities, Regulations and
Business Support System
Chapter 5
• Business Plan
Chapter 6
• Management of a Small Business
BEE4613 Technopreneurship
Chapter 7
• Marketing
Chapter 8
• Operations Management
Chapter 9
• Financial Plan
Chapter 10
• Issues on Technopreneurship
BEE4613 Technopreneurship
Assessment
Test 1
Test 2
Presentation
Business Plan Report
Final Exam
TOTAL
: 15%
: 15%
: 30%
: 40%
: 0%
: 100%
BEE4613 Technopreneurship
References
i.
ii.
iii.
iv.
UiTM Entrepreneurship Study Group (2004).
“Fundamentals of Entrepreneurship.”
Pearson Prentice Hall.
Peter F.Drucker (1993). “Innovation and
Entrepreneurship”. HarperBusiness
W.Chan Kim, Renee Mauborgne (2005).
“Blue Ocean Strategy”. Harvard Business
School Publishing Corporation
David H.Bangs, Jr (2001). “The Business
Planning Guide”, Advantage Quest
Publications.
BEE4613 Technopreneurship
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..
BEE4613 Technopreneurship
How great we are?
BEE4613 Technopreneurship
BEE4613 Technopreneurship
BEE4613 Technopreneurship
BEE4613 Technopreneurship
Are they any
business
opportunities
from this
scenery?
BEE4613 Technopreneurship
How many business should be
established to
have
all this stuffs inside
BEE4613
Technopreneurship
your kitchen?
How about this messy room?
BEE4613 Technopreneurship
How about communication industry?
BEE4613 Technopreneurship
How about airlines industry?
BEE4613 Technopreneurship
Why we need an
entrepreneur?
BEE4613 Technopreneurship
• 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
BEE4613 Technopreneurship
What Can
BEE4613 Technopreneurship
Entrepreneur,
Technopreneur,
Intrapreneur, Innovator,
Manager
BEE4613 Technopreneurship
Earlier Viewpoints (17001950s)
• The word entrepreneur comes from
French word ‘entreprendre’
• “Entreprendre” – individuals who
undertake (the risk of new ventures).
BEE4613 Technopreneurship
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.
BEE4613 Technopreneurship
• “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”
BEE4613 Technopreneurship
• “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]
BEE4613 Technopreneurship
• “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]
BEE4613 Technopreneurship
D elivered baked
bread is highest
value use
P riority1
B read at bakery
for sale has high
value
Priority 2
Priority3
Milled flour for
baker has high
value
Intermediate
Priority 7
Priority 8
Menger’s Model of Value-Added
Transformation of Resources
steps in trans form ation
B ulk grain from
farmer has low
value
Grain in field has
very low value
Source: David H.Holt. Entrepreneurship.
New Venture Creation Englewood Cliffs,
NJ: Prentice-Hall 1992, p.5
BEE4613 Technopreneurship
• “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]
BEE4613 Technopreneurship
• 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.
BEE4613 Technopreneurship
Technopreneur
• They are entrepreneurs who used
“technology” as their driven factor in
transforming resources into
goods and services, creating an
environment conducive to industrial
growth”…
BEE4613 Technopreneurship
• Innovations are not confined to
tangible products but also include
services and processes.
– The continuous improvement in financial
sector
– City bank, Air Asia…
BEE4613 Technopreneurship
BEE4613 Technopreneurship
• 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.
BEE4613 Technopreneurship
• 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.
BEE4613 Technopreneurship
Any Questions?
BEE4613 Technopreneurship
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
BEE4613 Technopreneurship
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 knowhow to find, marshal and control resources, often owned
by others.”
BEE4613 Technopreneurship
Professor Jeffrey
Timmons (1990)
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
BEE4613 Technopreneurship
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.
BEE4613 Technopreneurship
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
BEE4613 Technopreneurship
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
BEE4613 Technopreneurship
Entrepreneurial Traits (2)
Important for Success:
•
Leadership
•
Competitiveness
•
Good physical health
•
Creative
•
High level of energy
•
Versatility
BEE4613 Technopreneurship
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
BEE4613 Technopreneurship
Difference Between
Entrepreneurship And Small
Business
Entrepreneurship
Small Business
• Innovation
• Little innovation
• Fast growth
• Static growth
• Vision
• Little vision
• Employment creation
• Family business
• Money making machine
• Earning a livelihood
• Higher risk
• Low or minimum risk
BEE4613 Technopreneurship
Entrepreneurship Statistics…
Do You Know?
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
BEE4613 Technopreneurship
Entrepreneurship Statistics
Do You Know?
 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
BEE4613 Technopreneurship
Malaysian Setting &
Global Scenario
BEE4613 Technopreneurship
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
BEE4613 Technopreneurship
tamaddun saintifik
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
BEE4613 Technopreneurship
MSC Flagship Applications
Smart Schools
Multipurpose Card
Telehealth
Electronic Government
Technopreneur
Development
R&D Cluster
E-Business
Borderless Marketing
BEE4613 TechnopreneurshipWorldwide
Centre
Manufacturing Web
Malaysia Economic Transformation
& Drivers
Source : Malaysia’s National Economic Action
Council
Knowledge-based
Knowledge-driven
KNOWLEDGE BASED / INTELLECTUAL CAPITAL
HIGH TECHNOLOGY / SERVICES
High-tech
Manufacturing
& Services
Productivity-driven
Medium-tech
Manufacturing
& Services
Investment-driven
Assembly-type
Manufacturing
TECHNOLOGY / FOREIGN DIRECT INVT
Labour-driven
Primary
Commodities
Labour-driven
1960
INDUSTRIAL / IMPORT SUBSTITUTION
AGRICULTURE / PRIMARY COMMODITY
1970
1980
BEE4613 Technopreneurship
1995
1996
2005
2020
• Value creation
through knowledge
products and
industry
• ICT as a sector
• Information as
commodity
Now
NITA Vision
Economic
• Competitive,
dynamic, robust &
resilient
• Fair & equitable
distribution of
wealth
• Knowledge
economy
non
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r iteyty
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of ie
InIfn SoScoc
2020
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Ci iety
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egd
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d
le ieyty
ow
w
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o oicet
K
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K oSc
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• Connectivity of
• Empowered citizens
networks
• Self-regulating
• Equitable access to • Self-controlled
information
• Fostering creativity
• Culture of learning
• Inclusive society
• InformationBEE4613
literate Technopreneurship
• Strong families
Social
• United
• Developed & secure
• Strong moral and
ethical values
• Democratic and liberal
• Tolerant & Progressive
Strategic Framework
For balanced development through innovation, the ‘ICT4D Framework’ shown, which draws
on the principles highlighted thus far, can be used as a guide.
ICT as an
ENABLER
Malaysia’s
ICT4D
program for
Innovating
towards a
K-nation
Innovation for
BALANCED
SOCIETAL
DEVELOPMENT
Innovation for
GOOD
GOVERNANCE
BEE4613K-society
Technopreneurship
Industry
Society
ICT as a
SECTOR
Innovation for
WEALTH
CREATION
Govern
-ment
Information &
Communication Technology
K-economy
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
BEE4613 Technopreneurship
Any Questions?
BEE4613 Technopreneurship