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Unit 1 Ent600 Intro (Final Version)
Unit 1 Ent600 Intro (Final Version)
(ENT600)
UNIT 1:
INTRODUCTION TO
TECHNOLOGY ENTREPRENEURSHIP
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Definition of Entrepreneurship
Entrepreneurship is a dynamic process that involves
change and creation
Entrepreneurship can be defined as the identification,
evaluation and exploitation of previously unexploited
opportunities. The focus is on creation of a new
enterprise or business as well as the wealth associated
with it. Essential dimensions or ingredients include
willingness to take calculated risk, the skill to apply
creative solutions and new ideas and finally, being proactive to act on opportunities while others are still
confused 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)
ENT600/UNIT 1 : INTRO
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, carefullythought 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
dimensions of newness
are
essential
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Dimensions of Entrepreneurship:
Opportunity Exploitation
Entrepreneurship is focused on taking
advantage or exploiting of previously unexploited
opportunities
The exploitation of opportunities often result in
the creation of a new enterprise or business as
well as the wealth associated with it
The new enterprise should be beneficial to the
society and make a positive change
Entrepreneurship Dept, FBM
(2009)
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Dimensions of Entrepreneurship:
Pro-activeness
Pro-activeness refers to the propensity to act on
information, ideas and opportunities in a timely
and speedy manner
Acting at the right time and in the right manner
on the superiority of an idea or opportunity can
differentiate between better success or less
success or even between success and failure
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Entrepreneurship Dept,
FBM (2009)
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Idea Discovery
Idea Screening
Idea Exploitation
Phase
Business Start-up
Technology
Commercialization
Prototyping
Monitoring &
Evaluation
Test Marketing
Technology Blueprint
Entrepreneurship Dept, FBM
(2009)
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Entrepreneurial Process:
Idea Search and Generation Phase
This phase is also known as the opportunity formation or
opportunity discovery phase
Both the terms idea and opportunity indicate the
possibility of bringing something new to the market
Individuals or groups of individuals enter this phase by
either:
Actively searching for business possibilities that they
can offer in a better, more creative or efficient form or
Discovering a solution for their own problem
experienced at work, play or in the marketplace that
has the potential of being shared with others who are
willing to pay for the solution
Entrepreneurship Dept, FBM
(2009)
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Entrepreneurial Process:
Idea Search and Generation Phase
In technology entrepreneurship, this idea
formation or discovery phase may be
recognizable by the fact that the business idea
or problem solution involves creating a new
technology or adapting an existing technology
Technology refers to devices, processes, tools,
methods and materials applied to industrial and
commercial purposes.
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Entrepreneurial Process:
Idea Evaluation & Development Phase
This phase is characterized by efforts to better
understand what it will take to bring the idea or
opportunity into a full-fledge economic activity or
business
In technology entrepreneurship, some key activities at
this stage include
doing the research and development work to invent or
innovate a new technology-based product, process or
service
preparing the initial technology blueprint
concept testing
prototyping,
market testing
Entrepreneurship Dept, FBM
(2009)
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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 other
business ideas
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YES
Idea Exploitation
Decision
NO
Abandon
Current Idea
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or
Terminate Process
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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 of
the technology-based product, process or
service that may or may not require the creation
of a new business venture.
Entrepreneurship Dept, FBM
(2009)
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Natural capital
Financial capital
Intellectual capital
Economy
Entrepreneurs
as agents of
progress
Beneficial outputs
Undesired waste
outputs
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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/00002064 retrieved
25 June 2008)
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