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 : 15%
Test 2 : 15%
Presentation : 30%
Business Plan Report : 40%
Final Exam : 0%
TOTAL : 100%

BEE4613 Technopreneurship
 References
i. UiTM Entrepreneurship Study Group (2004).
“Fundamentals of Entrepreneurship.” Pearson
Prentice Hall.
ii. Peter F.Drucker (1993). “Innovation and
Entrepreneurship”. HarperBusiness
iii. W.Chan Kim, Renee Mauborgne (2005). “Blue
Ocean Strategy”. Harvard Business School
Publishing Corporation
iv. 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
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 Are they any business
opportunities from this
scenery?

BEE4613 Technopreneurship
How many business should be established to have all
this stuffs inside your kitchen?
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How about this messy room?
BEE4613 Technopreneurship
How about communication industry?
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How about airlines industry?
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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 You See, Looking Beyond ?

BEE4613 Technopreneurship
 Entrepreneur, Technopreneur,
Intrapreneur, Innovator, Manager

BEE4613 Technopreneurship
 Earlier Viewpoints (1700-1950s)

• 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
 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 Source: David H.Holt. Entrepreneurship. New
value Venture Creation Englewood Cliffs, NJ: Prentice-
Hall 1992, p.5

Grain in field has

Priority 8 BEE4613 Technopreneurship
very low value
• “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.

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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?

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 know-
how to find, marshal and control resources, often owned
by others.”
Professor
BEE4613 Technopreneurship 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

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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
• Employment creation
• Little vision

• Money making machine • Family business

• Higher risk • Earning a livelihood
• 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 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

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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

BEE4613 Technopreneurship
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 Technopreneurship Worldwide
Centre Manufacturing Web
 Malaysia Economic Transformation &
Drivers
Source : Malaysia’s National Economic Action Council
Knowledge-based
KNOWLEDGE BASED / INTELLECTUAL CAPITAL Knowledge-driven

High-tech
HIGH TECHNOLOGY / SERVICES Manufacturing
& Services
Productivity-driven
Medium-tech
Manufacturing
& Services
Investment-driven

Assembly-type TECHNOLOGY / FOREIGN DIRECT INVT

Manufacturing

Labour-driven

Primary INDUSTRIAL / IMPORT SUBSTITUTION

Commodities

Labour-driven AGRICULTURE / PRIMARY COMMODITY

1996
1960 1970 BEE4613 Technopreneurship
1980 1995 2005 2020
• Competitive,
dynamic, robust &
resilient
NITA Vision 2020
• Fair & equitable
distribution of v il
wealth Ci iety

Economic
• Knowledge o c
economy S

• Value creation g e
egde
through knowledge l
d
nw le ieyty
ow
products and K
n o oicet s
industry K oSc
S an
me
inon as
• ICT as a sector i
ta o
t T
• Information as r
o mma
r iteyty IC
of ie
commodity InIfn SoScoc
Now Social
• Connectivity of • Empowered citizens • United
networks • Self-regulating • Developed & secure
• Equitable access to • Self-controlled • Strong moral and
information • Fostering creativity ethical values
• Culture of learning • Democratic and liberal
• Inclusive society
• Information literate
BEE4613 Technopreneurship • Tolerant & Progressive
• Strong families
 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.

K-economy

Industry
Communication Technology

Innovation for
ICT as a WEALTH
CREATION
SECTOR
Information &

Malaysia’s
ICT4D

Society
Innovation for
program for
BALANCED
Innovating
SOCIETAL
towards a
DEVELOPMENT
K-nation
ICT as an Innovation for

Govern
-ment
ENABLER GOOD
GOVERNANCE

K-society
BEE4613 Technopreneurship
 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