Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
2009E.C.
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Contents
Part 1 Introduction to Entrepreneurship
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Chapter One
Entrepreneurship
1.1 Meaning and concepts of the terms
entrepreneur, entrepreneurship
1.2 The entrepreneur vs the manager
1.3 Characteristics of Entrepreneurs
1.4. Kinds of Entrepreneurship
1.5. Success factors for entrepreneurs
1.6. Motivation for starting a business
1.7. ways of going in to business & becoming
an entrepreneur
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1.6 Small business
1.1. Meaning of the terms Entrepreneur,
Entrepreneurship
What is Entrepreneur?
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Economists may view entrepreneurs as those who bring
ENTREPRENEURSHIP
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Cont’d…
Owner Manager
They may or may not be entrepreneurs.
They own and manage a small enterprise, in a way, which
fits with their personal motivations.
They are more intent on survival than seeking innovative
change and growth.
1. Limited scope for innovativeness, creativity and imagination
2. Managerial jobs are transferable
-As a manager in the business organization, his job is
transferable from office to office, from one unit and
location to another location
3. Managers do not bear-risk
9 -Risk bearing capacity is an entrepreneurial quality
1.3. Characteristics of Entrepreneurs /personal competencies
1. Need for Achievement:- vision
2. Willingness to take risks:-financial, careers, family ,
3. Self-Confidence:- internal and external locus of control
4. Innovation:-. The entrepreneurial manger is constantly looking
for innovations, not by waiting for a flash of inspirations, but
through an organized and continuous search for new ideas
5. Total Commitment
6. All-rounders
7. A need to seek refuge:- escape from environmental factor
a. The Foreign Refugee
b. Corporate Refugee
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c. Other Refugees
Cont’d…
Other types of “ refugees” mentioned are the following:
a.Marginal Firms
b.Attractive Small Companies and
c.High potential ventures.
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1.5. Success factors for entrepreneurs
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Drawbacks of entrepreneurship
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1.7. Small business
Definition: A small business is defined as:
Annual sales
Amount of assets
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Elements involved in Entrepreneurship
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Business risks can be classified in to two broad category
market risk and pure risk.
Entrepreneurs face a number of different types of risk. These
can be grouped in to basic areas.
a. Political risk:-
b. Business risk:-
c. Economic risk:-
d. property risk
e. Personal risk
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2.Information
Information gives the following importance to the businessmen’s
To know the position of their competitors that is their
strength and weaknesses, business strategy they use and their
long term plan.
To know threats and opportunity in doing business
Helps to design long term objectives and goals indicate
capital requirement (labor, capital and machinery)
Helps to know market position locally and internationally.
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Sources of information
Information are obtained from two main methods of data
collection. That is primary data collection and secondary data
collection
1. Collection of primary data:
Observation method
Interview method
Through questioner
Other methods which includes warranty cards, consumer
panels, etc
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2. Collection of secondary data:-Secondary data are available
in
Various publication of the central state and local government
Various publications of foreign government or international
bodies and their subsidiary organization.
Technical and trade journals
Books, magazines and newspapers
Reports
Public records and statistics, historical documents.
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By way of caution, the entrepreneur before using secondary data
must see that the process following characteristics
1.Reliability of data
a. Who collected the data?
b. What were the sources of data?
c. Were they collected by using proper methods?
d. At what time they collected. Etc.
2.Suitability of data:- the data that are suitable for one enquiry
may not be suitable for another enquiry, then the researcher
has to check the suitability of the data properly.
3.Adequacy of data
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Chapter Two
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2.2. Important aspects of Technology in Business
Technology Intelligence for Business
is an activity that enables companies to identify the technological
opportunities and threats that could affect the future growth and
survival of their business.
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Important aspects of Technology in Business …
Intelligence gathering may be deployed at the macro level, industry
or business level, and/or at the program or project level. The
process of gathering external data and analyzing it to derive
intelligence for major strategic decisions is referred to as
mapping the technology environment.
and diffusion.
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Important aspects of Technology in Business …
Appropriation of Technology
The appropriation of technology refers to the acquisition of
technology in both of the following two ways:
in-house research and development and
from external sources by acquisition or strategic alliances.
Choosing to adopt a portfolio of technology appropriation
projects involves some basic principles.
First, technological opportunity and appropriable of the project
are determined by the competitive impact of technology.
Second, firms should undertake projects only in areas where
they are competitively strong.
Third, risks and rewards need to be considered in terms of the
portfolio.
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Important aspects of Technology in Business …
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Important aspects of Technology in Business …
process before new products are physically exist for the market.
Figure 2.1 Development Continuum
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2.3. Formation, development, and growth of technology-
based new enterprises
2.3.1. Introduction
The innovative capacity of an entrepreneur and more accurately,
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2.3.2. How to form and develop Technology based
ventures?
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How to form and develop Technology based ventures? …
Government policies:
International assistance
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2.3.3. Factors contributing to the Success of High
Technology based Enterprises
What are the main factors for the success of high-
technology based enterprises? Discuss
national policies,
research and development institutions
technological entrepreneur development
innovative finance support systems & protecting intellectual
property
science and technology parks
promoting and developing strategic business alliances and
networking
standardization, quality control and marketing.
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Factors to success of TBNE …
Some methods of ensuring such catalytic factors for developing
economies are:
a. Technocratic leadership should be given, a national vision on the creation of
knowledge-based enterprises should be boldly articulated and incentives for
innovation and risk-taking should be provided;
b. The microeconomic framework, together with a master plan prepared
in consultation with local communities, entrepreneurs and stakeholders, should
stimulate innovation and markets for new goods and services;
c. Commensurate investments should be made in scientific research and
technology development, engineering and management consultancy, technical education
and continuous learning, entrepreneurial development, quality assurance and
environmental preservation, transport and communications infrastructure;
d. Long-term plans should be formulated for developing convergent
enterprise support systems encompassing the full range of small business
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development services, anchored possibly in a business incubator and
technology park;
How to form and develop Technology based ventures? …
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Fig. 2.2. Technology based business development
process
How to form and develop Technology based ventures? …
Although there are different ways to formulate the formation and
development process of a NTBF, there are four fundamental
growth stages that most entrepreneurs should focus on:
Stage 1: Conception and development
The primary focus of the entrepreneur is on the product
development, the securing of adequate financial backing and the
identification of market opportunities.
Dominant problems of NTBF at this point include construction
of a product prototype and selling of the business idea to
investors.
In this stage, there are many problems or barriers related to
conception that reduce the chance for new ventures. Barriers
related to: Lack of opportunities , Lack of well qualified
entrepreneurs and Lack of entrepreneurial culture
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How to form and develop Technology based ventures? …
Developing the new idea includes writing a business plan that
evaluates all aspects of the economic viability of the business
venture including a description and analysis of the business
prospects.
Stage 2: Commercialization
In this stage, the major focus of new ventures is on
commercializing the product itself. The dominant problems at
this point include acquiring adequate facilities, establishing a
vendor network, and developing product support capability. All
this ends at a series of typical problems as the following ones:
Some of the programs carried out by the different administrations
are oriented to:
Simplify proceedings for the creation of a new
company
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How to form and develop Technology based ventures? …
Accessibility to different resources (financial and facilities)
and services in advantageous conditions.
Training entrepreneurs to enable them its new challenges
Creating incubators which are organized in order to support
and facilitate processes of enterprise creation.
Stage 3: Growth
This stage is characterized by high growth in both sales and
Stage 4: Stability
The growth rate of the firm slows to a level consistent with
market growth. The major problems of the firm at this point are
to maintain growth momentum and market position. Therefore,
the entrepreneur should focus on the introduction of second-
generation product for acquiring new opportunities
Enhancing the innovative capacity of firms.
46 Facilitating their internationalization
Drive for acquire new technology
Cost: Technology can cut costs in many ways: reducing material,
labor or distribution costs
Speed of delivery: The key competitive priority may be the speed
of delivery, as measured by lead time required to deliver a product.
Example, Automated guidance vehicle(AGV),
Quality: Technologies help to improve the quality and reduce the
production costs.
Flexibility and customization: The global market place of 1990s
is characterized by short product lifecycles, increased product
variety, and extensive customization. To retain and increase market
share in such competitive environment, firms have to be more
flexible in their operations.
* Increased production volume
*Higher living standards
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Examples:
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Steps in Technology Transfer
It has three parallel components that need to be taken into
consideration.
Science and Technology
Marketing:
Financing:
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Steps in Technology Transfer…
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2.5. Innovation in Technology based Business
Innovation refers both to the output and the process of arriving
It is distinguish as
process innovations and
product innovations
Service innovation
Product innovation: results in new or improved products.
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Innovation in Technology based Business …
Process innovation: occurs when the manufacturing processes are
improved to make the production of existing products cheaper, or
when new processes are developed specifically for making a new
or improved product.
Service innovation: occurs when new ways of delivering services
are developed.
Discussion, give an example for each types of innovation
The innovation process, which leads to useful technology, requires:
– Research
– Production
The
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Figure 2.5. the relationship of technology, market and product
Promotion and Commercialization of technology-
based innovation
The process of taking an invention from idea to business concept
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Entrepreneurship and Technological Change
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Summary… Technology, Entrepreneurship and
Innovation
The role of the Engineer in Entrepreneurship
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Summary… Technology, Entrepreneurship and Innovation…
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Summary… Technology, Entrepreneurship and Innovation…
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Summary questions
1. What is technological entrepreneurship?
2. What is the impact of entrepreneurship on society?
3. What is the role of the engineer in new ventures?
4. What is technological innovation?
5. Describe Creativity, Innovation, Technology and
entrepreneurship
6. Discus The process of innovation (market pull and
technology push innovations)
7. Discuss technology transfer, promotion and
commercialization of technology based innovation
8. What are the Drives for acquiring new technology
9. Factors contributing to the Success of High Technology
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based Enterprises