ENTREPRENEURSHIP &
TECHNOPRENEURSHP
Prepared by
Harry S. Dachlan
harrysd@brawijaya.ac.id
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Why 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 ?
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Are they any
business
opportunities from
this scenery?
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How many business should be established to
have all this stuffs inside your kitchen?
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How about this messy room?
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How about communication industry?
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How about airlines industry?
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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]
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Priority 1
Delivered baked
bread is highest
value use
Bread at bakery
for sale has high
value
Priority 2
Menger’s Model of Value-Added
Transformation of Resources
Priority 3
Milled flour for
baker has high
value
Intermediate
Priority 7
Priority 8
steps in transformation
Bulk 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
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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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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”…
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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 knowhow 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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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
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
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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
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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
harrysd@brawijaya.ac.id
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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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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
Smart Schools
Multipurpose Card
Telehealth
Electronic Government
Technopreneur
Development
R&D Cluster
E-Business
Borderless Marketing
harrysd@brawijaya.ac.id
Centre
Worldwide
Manufacturing Web
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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
INDUSTRIAL / IMPORT SUBSTITUTION
Labour-driven
1960
AGRICULTURE / PRIMARY COMMODITY
1970
1980
harrysd@brawijaya.ac.id
1995
1996
2005
2020
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• Competitive,
dynamic, robust &
resilient
• Fair & equitable
distribution of
wealth
• Knowledge
economy
NITA Vision
Economic
• Value creation
through knowledge
products and
industry
2020
• ICT as a sector
• Information as
commodity
Social
Now
• Connectivity of
networks
• Equitable access to
information
• Culture of learning
• Information literate
• Empowered citizens
• Self-regulating
• Self-controlled
• Fostering creativity
• Inclusive society
• Strong families
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• United
• Developed & secure
• Strong moral and
ethical values
• Democratic and liberal
• Tolerant & Progressive
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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.
Malaysia’s
ICT4D
program for
Innovating
towards a
K-nation
ICT as an
ENABLER
Innovation for
BALANCED
SOCIETAL
DEVELOPMENT
Innovation for
GOOD
GOVERNANCE
Industry
Society
ICT as a
SECTOR
Innovation for
WEALTH
CREATION
Govern
-ment
Information &
Communication Technology
K-economy
K-society
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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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PILLARS OF ENTREPRENEURSHIP
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Any Questions?
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