BEE4613 Technopreneurship

LECTURE 1
1. Entrepreneurship Concept
1.1 Definition of entrepreneur and Agro-
entrepreneur
1.2 Importance of entrepreneur
1.3 Entrepreneur’s characteristic and
personality
1.4 Formation of entrepreneur’s culture

BEE4613 Technopreneurship
 Entrepreneur concept - 1

• Entrepreneur,Earlier Viewpoints (1700-

1950s)
• The word entrepreneur comes from
French word ‘entreprendre’

• “Entreprendre” – individuals who

undertake (the risk of new ventures).
• “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]
 Entrepreneur
An entrepreneur can also be defined as
“a person who
1. undertakes,
2. innovates,
3. finance and
4. sharpens his business acumen in
an effort to transform innovations into
economic goods".
(acumen: The ability to make good
judgments and quick decisions,
typically in a particular domain: 5
"business acumen“).
 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.
 Agro entrepreneur
• They are entrepreneurs who used
“agricultures inputs and technology”
as their driven factor in transforming
resources into goods and services,
creating an environment conducive to
industrial growth.
 Delivered baked
Priority 1 bread is highest
value use

Bread at bakery
Priority 2 for sale has high
value

Menger’s Model of Value-Added

Transformation of Resources
Milled flour for
Priority 3 baker has high
value

Intermediate steps in transformation

Bulk grain from

Priority 7
farmer has low Example ,an entrepreneur,-enhance value
value added;
From grain(low value) transform to baked
bread (high value)

Grain in field has

Priority 8
very low value
 Why Entrepreneurship is important to
agriculture sector.

• Technological Change(enhance
opportunities & productivity in
agricultural sector)
• Economic Change (enhance
economic activities-processing
&services in agriculture sector)
• Social Change (knowlegable enhance
innovative &creative)
 Why Entrepreneurship is important to
agriculture sector.
• Key to Economic Development
• Psychological Change(self-esteem &
satisfaction)
• Matches Risks and Rewards
• Creation of Wealth
• Creation of Jobs

BEE4613 Technopreneurship
Entrepreneur is 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
Entrepreneurs Characteristics
• An effective leader
• Innovative and creative.
• Abilities &Skills & attitudes
• Motivation & Commitment &Attitudes
• Strategy & vision;
• Planning & organization;
• Resources;
 An Effective Leader
• Someone who has followers!
• Someone whose followers do the right thing. Popularity is NOT
leadership. Results are! Performance is in!
• Someone who is highly visible - therefore sets examples.
• Leaders are not about rank, privilege, titles or money. They are about
taking responsibility.
• Engage people about responding to change.
• Encourage the diversity of skills and strengths that each individual has
to offer.
• Respect themselves, have high quality value systems. From respect
comes trust.
 Innovation and creativity
• Innovation and creativity are main
characteristic of successful
entrepreneur . Innovation and
creativity are not confined to tangible
products but also include services and
processes.
– The continuous improvement in financial
sector.
– City bank, Air Asia…
 Abilities & skills
• Vision and Strategy
– Opportunity identification
– Industry and competitive analysis
– Compelling business model definition

• Leadership Style
– Selling and presentation skills
– Organization - attracting top people
– Listening and motivation
– Sense of teamwork
– Perseverance, commitment, enthusiasm
– Anticipation and response

• Financial
– Financial statement analysis and pro-forma modeling
– Valuation of privately held companies
– Scenario and risk analysis
– Deal structure (Negotiation= win-win situation)
 Attitudes
• Concern for detail
• Healthy self-confidence
• “Anything is possible”
• Unending dissatisfaction with the status quo
• Taking responsibility
• Tolerance for ambiguity
• Acknowledge lack of perfect information
• Confidence vs. arrogance
• Myth debunking
• Empathy; understanding of others
 Motivation & Commitment
• It is important to get the basic ingredients of business start-up
right. People who are lending money to entrepreneurs, they
look at the person first(motivation & commitment) .
• The motivation of the potential entrepreneur is the most
critical.
• You need to convince your bank manger or lending
institutions that you can make your business work because ...
- you have researched your market,
- you have researched the costs of the business and
- you know where you forecast/want the business to be
in 5 or 10 years time .
 Strategy & vision:
• The fourth element is strategy and
vision in terms of thinking four or five
years ahead and having some idea of
where that business might be in the
future and putting in place a future
plan to achieve that goal.
 Planning & organisation:
• The fifth element is planning and organisation.
• Without planning, organising, coordination and
administration, the product won’t get marketed
nor will it satisfactorily meet demand. You need to
think about:
- operating systems,
- job roles for the personnel,
- quality issues on products, services etc.
which if handed effectively, will ensure you can satisfy

the market by delivering on time, and to the right place .

 Resources:
• The sixth element is resources which
include:
• Money
• Equipment
• Intellectual capability. The ability to
persuade others is important(staff).
• Many entrepreneurs have been able
to negotiate very favourable deals
against the odds, when establishing
their business
 Difference Between Entrepreneurship
And Small Business
Entrepreneurship Small Business(normal business)

• Innovation • Little innovation

• Fast growth • Slower growth
• Vision
• Little vision
• Employment creation
• Family business
• Money making machine
• Higher risk • Earning a
livelihood
• Low or minimum
risk
 Entrepreneur vs Manager
• Entrepreneur seem to be the
starters/leader and managers are
followers/good organizers
– 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.
• 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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