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UNIT 1:INTRODUCTION TO
TECHNOLOGY ENTREPRENEURSHIP
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TECHNOLOGY ENTREPRENEURSHIP
(ENT600)
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Definition of Entrepreneurship
Entrepreneurship is a dynamic process that involveschange and creation
Entrepreneurship can be defined as the identification,evaluation and exploitation of previously unexploitedopportunities. The focus is on creation of a newenterprise or business as well as the wealth associatedwith it. Essential dimensions or ingredients includewillingness 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 stillconfused 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
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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, carefully-
thought 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 are essential
dimensions of newness
Creativity focuses on thinking of new things whileinnovation focuses on doing new things
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Dimensions of Entrepreneurship:
Opportunity Exploitation
Entrepreneurship is focused on takingadvantage or exploiting of previouslyunexploited opportunities
The exploitation of opportunities often result inthe creation of a new enterprise or business aswell as the wealth associated with it
The new enterprise should be beneficial to thesociety and make a positive change
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Dimensions of Entrepreneurship:
Pro-activeness
Pro-activeness refers to the propensity to act oninformation, ideas and opportunities in a timelyand speedy manner
Acting at the right time and in the right manneron the superiority of an idea or opportunity candifferentiate between better success or less
success or even between success and failure
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Technology entrepreneurship can be defined as a form of
entrepreneurship and business leadership focused on identifyinghigh-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
(Adapted from Dorf & Byers, 2005)
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Definition of Technology Entrepreneurship
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The Entrepreneurial Process
The entrepreneurial process in general
encompasses all the cognitive (thinking)
and behavioral (action) steps from theinitial emergence of a rough business idea
until the creation of a new business venture
or the process is terminated.
(Adapted from Davidsson (2005)
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The entrepreneurial process is generally
composed of three key phases
The idea generation or idea discovery phase
The idea evaluation and development phase
The idea exploitation phase
Figure 1 shows the entrepreneurial process withexamples of activities at each stage
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The Entrepreneurial Process
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Fig 1: The Entrepreneurial Process
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Idea Search &
Generation Phase
Idea Evaluation &
Development Phase
Idea Exploitation
Phase
Idea Discovery
Idea Screening
Research & Development
(Invention/Innovation)
Concept Testing
PrototypingTest Marketing
Technology Blueprint
Business Start-up
Technology
Commercialization
Monitoring &
Evaluation
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Entrepreneurial Process:
Idea Search and Generation Phase
This phase is also known as the opportunity formation oropportunity discovery phase
Both the terms idea and opportunity indicate thepossibility of bringing something new to the market
Individuals or groups of individuals enter this phase byeither:
Actively searching for business possibilities that theycan offer in a better, more creative or efficient form or
Discovering a solution for their own problemexperienced at work, play or in the marketplace thathas the potential of being shared with others who arewilling to pay for the solution
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Entrepreneurial Process:
Idea Evaluation & Development Phase
This phase is characterized by efforts to betterunderstand what it will take to bring the idea oropportunity into a full-fledge economic activity orbusiness
In technology entrepreneurship, some key activities atthis stage include
doing the research and development work to invent orinnovate a new technology-based product, process orservice
preparing the initial technology blueprint concept testing
prototyping,
market testing
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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 otherbusiness ideas
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Fig 2: Idea Exploitation Decision Options
Idea Exploitation
Decision
YES
NO
Proceed & Exploit
Opportunity
Abandon
Current IdeaTerminate Processor
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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 ofthe technology-based product, process or
service that may or may not require the creation
of a new business venture.
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Entrepreneurship & the Economy:
The Role of Entrepreneurship
Economic growth and vitality can be generated byencouraging entrepreneurial activity in the society.
Entrepreneurial activity is centered around entrepreneurswho act as agents of progress
In order to contribute to economic growth, entrepreneursmust
Mobilize natural, financial and intellectual capital ascapital inputs in the economy and
utilize the capital inputs to create products, processesand services as economic outputs
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Entrepreneurship & the Economy:
The Economic Inputs
Natural capital
Consist basically of natural resources such asminerals, fuels and energy
Can also include natures biological capacityto produce (e.g. oxygen) or absorb
(e.g. pollution)
As such this natural capital can be irreversiblydepleted through neglect or irresponsibleusage
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Entrepreneurship & the Economy:
The Economic Inputs
Financial capital
Refers to financial assets such as money and shares
Can include exclusive use of technological designsand products that have financial value
Intellectual capital Refers to knowledge that is accessible within an
business because it has been recorded (e.g. indocuments and reports), explained (e.g. throughknowledge sharing processes ) and disseminated
(e.g. through inter-team or inter-department project orresearch work)
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Entrepreneurship & the Economy:
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 businessemployees
Organizational capital This is the management structure and peripherals
(including hardware, software, databases patentsand systems) that support the human capital
Social capital The relationships and the quality of the
relationships that the business maintains with itssuppliers, partners and customers
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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/00002064retrieved
25 June 2008)
Entrepreneurship Dept, FBM (2009) 24ENT600/UNIT 1 : INTRO
http://eprints.qut.au/active/00002064http://eprints.qut.au/active/00002064