[email protected] entrepreneurship & technopreneurshp prepared by harry s. dachlan
TRANSCRIPT
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
How many business should be established to have all this stuffs inside your kitchen?
Earlier Viewpoints (1700-1950s)
The word entrepreneur comes from French word ‘entreprendre’
“Entreprendre” – individuals who undertake (the risk of new ventures).
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.
“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”
“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]
“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]
Grain in field has very low value
Milled flour for baker has high
value
Bulk grain from farmer has low
value
Bread at bakery for sale has high
value
Delivered baked bread is highest
value use
Priority 8
Priority 7
Priority 3
Priority 2
Priority 1
Intermediate steps in transformation
Source: David H.Holt. Entrepreneurship. New Venture Creation Englewood Cliffs, NJ: Prentice-Hall 1992, p.5
Menger’s Model of Value-Added Transformation of Resources
“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]
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.
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”…
Innovations are not confined to tangible products but also include services and processes. The continuous improvement in financial sector City bank, Air Asia…
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.
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.
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
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 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
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.
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
Entrepreneurial Traits (2)
Important for Success:
• Leadership
• Competitiveness
• Good physical health
• Creative
• High level of energy
• Versatility
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
Difference Between Entrepreneurship And Small Business
Entrepreneurship
Innovation
Fast growth
Vision
Employment creation
Money making machine
Higher risk
Small Business
Little innovation
Static growth
Little vision
Family business
Earning a livelihood
Low or minimum risk
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
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
Entrepreneurship StatisticsDo You Know?
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
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
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
MSC Flagship Applications
E-Business
Telehealth
Smart Schools Multipurpose Card
R&D Cluster
Electronic Government
Worldwide Manufacturing Web
Borderless MarketingCentre
Technopreneur Development
Malaysia Economic Transformation & Drivers
1996
Source : Malaysia’s National Economic Action Council
Labour-driven
Labour-driven
Investment-driven
Productivity-driven
Knowledge-driven
1960 19951970 1980
Primary Commodities
Assembly-type Manufacturing
Medium-tech Manufacturing & Services
High-tech Manufacturing & Services
Knowledge-based
2005 2020
AGRICULTURE / PRIMARY COMMODITY
INDUSTRIAL / IMPORT SUBSTITUTION
TECHNOLOGY / FOREIGN DIRECT INVT
HIGH TECHNOLOGY / SERVICES
KNOWLEDGE BASED / INTELLECTUAL CAPITAL
NITA Vision
Social
Eco
no
mic
ICT as means
Now•Connectivity of networks
•Equitable access to information
•Culture of learning• Information literate
• ICT as a sector• Information as commodity Inform
ation
Society
•Empowered citizens•Self-regulating•Self-controlled•Fostering creativity• Inclusive society•Strong families
•Value creation through knowledge products and industry Knowledge
Society
Informatio
n
Society
2020
•United•Developed & secure•Strong moral and ethical values
•Democratic and liberal•Tolerant & Progressive
•Competitive, dynamic, robust & resilient
•Fair & equitable distribution of wealth
•Knowledge economy
Civil
Society
Knowledge
Society
Informatio
n
Society
Info
rma
tion
&
Co
mm
uni
catio
n T
ech
nolo
gy
ICT as a SECTOR
ICT as an ENABLER
Innovation for WEALTH CREATION
Innovation for BALANCED SOCIETAL
DEVELOPMENT
Innovation for GOOD
GOVERNANCE
Malaysia’sICT4D
program forInnovatingtowards aK-nation
Ind
ust
ryS
oci
ety
Go
vern
-men
t
K-economy
K-society
For balanced development through innovation, the ‘ICT4D Framework’ shown, which draws on the principles highlighted thus far, can be used as a guide.
Strategic Framework
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
