Unit 1 (Introduction)

TECHNOLOGY ENTREPRENEURSHIP
(ENT 600)
UNIT 1:
INTRODUCTION TO
TECHNOLOGY ENTREPRENEURSHIP
Entrepreneurship Dept, FBM

(2009)
ENT600/UNIT 1 : INTRO
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 pro-active
to act on opportunities while others are still confused
or unaware of the potential at hand.
(2009)
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
(2009)
Dimensions of Entrepreneurship:
1. 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,
carefully-thought out approach to risk where
everything possible is done to identify and
minimize potential problems.
(2009)
2. 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
Creativity focuses on thinking of new things while

Innovation focuses on doing new things.

(2009)
3. 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.
(2009)
4. 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.

(2009)
DEFINITION OF TECHNOLOGY
ENTREPRENEURSHIP
Technology Entrepreneurship can be defined as a form of
entrepreneurship and business leadership focused on
identifying high-potential, technology-intensive business
opportunity for possible exploitation into new products,
processes or services.
Technology entrepreneurship can be based on revolutionary
breakthrough in technology (inventions or radical
innovations) or a technological advancement (incremental
innovations).
Can target existing market or create an entirely new one.
The process is relevant for both independent startups or
within established corporations.
(2009)
(Adapted from Dorf8 & Byers, 2005)
THE ENTREPRENEURIAL PROCESS

The entrepreneurial process in general
encompasses all the cognitive (thinking)
and behavioral (action) steps from the
initial emergence of a rough business idea
until the creation of a new business venture
or the process is terminated.
(Adapted from Davidsson (2005)

(2009)
Cont
The Entrepreneurial Process
The entrepreneurial process is generally
composed of three key phases:
i. The idea generation or idea discovery
phase
ii. The idea evaluation and development phase
iii. The idea exploitation phase
Figure 1 shows the entrepreneurial process with
examples of activities at each stage
Entrepreneurship Dept,
FBM (2009)
10
Fig 1: The Entrepreneurial Process

Idea Search &
Generation Phase
Idea Evaluation &

Development Phase
Idea Discovery
Research & Development

(Invention/Innovation)
Idea Screening
Idea Exploitation
Phase
Business Start-up
Technology
Commercialization
Concept Testing
Prototyping
Monitoring &
Evaluation
Test Marketing
Technology Blueprint
(2009)
11
ENTREPRENEURIAL PROCESS:
i. 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
(2009)
12
ContEntrepreneurial 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.
(2009)
13
ii. 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 fullfledge 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
(2009)
14
iii. 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

(2009)
15
Fig 2: Idea Exploitation Decision Options
Proceed & Exploit

Opportunity
YES
Idea Exploitation
Decision
NO
Abandon
Current Idea

(2009)
or
Terminate
Process
16
ContEntrepreneurial 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.
(2009)
17
ENTREPRENEURSHIP & THE ECONOMY:

THE ROLE OF ENTREPRENEURSHIP
Economic growth and vitality can be generated by
encouraging entrepreneurial activity in the society.
Entrepreneurial activity is centered around entrepreneurs
who act as agents of progress
In order to contribute to economic growth, entrepreneurs
must
Mobilize natural, financial and intellectual capital as
capital inputs in the economy and
Utilize the capital inputs to create products, processes
and services as economic outputs

(2009)
18
Figure 3:
A Model of Role of Entrepreneurship
in the Economy
Natural Capital
Financial Capital
Intellectual Capital
ECONOMY
Entrepreneurs
as agents of
progress
Beneficial Outputs
Undesired Waste
Outputs
Adapted from Dorf & Byers (2005)

(2009)
19
Entrepreneurship & the Economy:

The Economic Inputs
Natural Capital
Consist basically of natural resources such as
minerals, fuels and energy
Can also include natures biological capacity
to produce (e.g. oxygen) or absorb (e.g.
pollution)
As such this natural capital can be irreversibly
depleted through neglect or irresponsible
usage
(2009)
20
ContEntrepreneurship & the Economy:

The Economic Inputs
Financial Capital
Refers to financial assets such as money and shares
Can include exclusive use of technological designs
and products that have financial value
Intellectual Capital
Refers to knowledge that is accessible within an
business because it has been recorded (e.g. in
documents and reports), explained (e.g. through
knowledge sharing processes ) and disseminated
(e.g. through inter-team or inter-department project or
research work)
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21

The Economic Inputs
There are three key sources of Intellectual Capital:
Human Capital
This is the combined knowledge, skill and abilities
of the entrepreneurial team and the business
employees
Organizational Capital
This is the management structure and peripherals
(including hardware, software, databases patents
and systems) that support the human capital
Social Capital
The relationships and the quality of the
relationships that the business maintains with its
suppliers, partners and customers

(2009)
22

The Economic Inputs
Economic progress and growth (outputs) is essentially in
two forms of:
The beneficial outputs (e.g. increase in new
business ventures that create new jobs)
The undesired inefficiencies and waste outputs
(e.g. pollution from growing numbers of industries)
The benefits should be maximized while waste and
inefficiencies
need
to
be
minimized
for
entrepreneurship to have the desired impact on the
economy

(2009)
23
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)

(2009)
24

Unit 1 (Introduction)

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TECHNOLOGY ENTREPRENEURSHIP

Entrepreneurship Dept, FBM

Creativity focuses on thinking of new things while

Entrepreneurship Dept, FBM

Entrepreneurship Dept, FBM

(Adapted from Dorf8 & Byers, 2005)

THE ENTREPRENEURIAL PROCESS

Entrepreneurship Dept, FBM

Fig 1: The Entrepreneurial Process

Idea Evaluation &

Research & Development

In technology entrepreneurship, this idea

Entrepreneurship Dept, FBM

Fig 2: Idea Exploitation Decision Options

Proceed & Exploit

Entrepreneurship Dept, FBM

If the decision is to exploit the opportunity, among

ENTREPRENEURSHIP & THE ECONOMY:

Entrepreneurship Dept, FBM

Adapted from Dorf & Byers (2005)

Entrepreneurship & the Economy:

ContEntrepreneurship & the Economy:

ContEntrepreneurship & the Economy:

Entrepreneurship Dept, FBM

ContEntrepreneurship & the Economy:

Entrepreneurship Dept, FBM

Entrepreneurship Dept, FBM

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