DRAFT TRAINING MANUAL

FOR
GENERAL ENTREPRENEURSHIP COURSES IN
UNIVERSITIES

COURSE 1: ENTREPRENEURSHIP AND INNOVATION

MODULE 4: TECHNOLOGICAL ENTREPRENEURSHIP

Editors:
Prof .Murtala S. Sagagi
Prof. Sarah Anyanwu
Dr. Sola Aliu &
Dr. Oluremi Abimbola
 DRAFT MODULE 4: TECHNOLOGICAL ENTREPRENEURSHIP

Learning Outcomes
Upon completion of this module, students would have been able to:
 Explain the interface between Entrepreneurship and technology
development
 Discuss how advances in technology have opened up a whole range of
new opportunities for Entrepreneurial mind-set
 Examine the impact of technology on business.
 Identify new technology and entrepreneurship opportunities
Content
(a) The Interface between Technology Development and Entrepreneurship
(b) Technological Development and Entrepreneurial
(c) Technological Environment and Business.
(d) New Technology and Entrepreneurship Opportunities

INTRODUCTION
Technological Entrepreneurship according to Dorf and Byers as contained
in Ndagi (2005) is a style of business leadership that involves identifying high-
potential, technology-intensive business opportunities, gathering resources
such as talent and capital, managing rapid growth and significant risk using
principled, real-time decision making skills. Technology Entrepreneurship
involves a process of industrial innovation and technology transfer, which is
relevant for both independent start-ups and established corporations.
Technological Entrepreneurship according to Aderemi (2008) is needed to
make use of knowledge of science and technology currently available to meet
market needs, thereby making the business, state or country in question more
productive and more competitive locally and internationally (Abubakar,2010).
Thus, techno-preneurs are entrepreneurs who used technology as their
driving factor in transforming resources into goods and services, creating an
environment conducive to industrial growth.

HAND OUT 1
AN OVERVIEW OF INDUSTRIAL REVOLUTION
Industrial revolution refers to the rapid development of industry in Britain in the
late 18th and 19th centuries, brought about by the introduction of machinery.
It was characterized by the use of steam power, the growth of factories, and
the mass production of manufactured goods. In 1860s, there were major
changes in agriculture, manufacturing, mining, transportation, and technology
which had profound effect on the social, economic and cultural conditions of
the times. It began in the United Kingdom, and then subsequently spread
throughout Western Europe, North America, Japan, and eventually the world.

The Industrial Revolution marks a major turning point in history; almost every
aspect of daily life was influenced in some way. Most notably, average income

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and population began to exhibit unprecedented sustained growth. In the two
centuries following 1800, the world's average per capital income increased
over tenfold, while the world's population increased over six-fold. In the words
of Nobel Prize winner Robert E. Lucas, Jr., "For the first time in history, the
living standards of the masses of ordinary people have begun to undergo
sustained growth. Nothing remotely like this economic behavior has happened
before". Starting in the later part of the 18th century, there began a transition
in parts of Great Britain's previously manual labor and draft-animal–based
economy towards machine-based manufacturing. It started with the
mechanization of the textile industries, the development of iron-making
techniques and the increased use of refined coal. Trade expansion was
enabled by the introduction of canals, improved roads and railways. With the
transition away from an agricultural-based economy and towards machine-
based manufacturing came a great influx of population from the countryside
and into the towns and cities, which swelled in population. The introduction of
steam power fuelled primarily by coal, wider utilization of water wheels and
powered machinery (mainly in textile manufacturing) underpinned the
dramatic increases in production capacity. The development of all-metal
machine tools in the first two decades of the 19th century facilitated the
manufacture of more production machines for manufacturing in other
industries. The effects spread throughout Western Europe and North America
during the 19th century, eventually affecting most of the world, a process that
continues as industrialization.
The impact of this change on society was enormous. The First Industrial
Revolution, which began in the 18th century, merged into the Second
Industrial Revolution around 1850, when technological and economic
progress gained momentum with the development of steam-powered ships,
railways, and later in the 19th century with the internal combustion engine and
electrical power generation. The period of time covered by the Industrial
Revolution varies with different historians. Eric Hobsbawm held that it 'broke
out' in Britain in the 1780s and was not fully felt until the 1830s or 1840s,
while T. S. Ashton held that it occurred roughly between 1760 and 1830.
Irrespective of the timing the first and second industrial revolution actually
took place and served as the foundation of modern technological
development as chronologically shown on the table below:

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Technolo Appr What the The main Main Remarks
gical ox Period Technological Products
Revoluti Perio Represente Significance
on d d
First 1770- First Earliest Textiles, We are yet to take a
1830 Industrial mechanization
Chemicals, grip of this level of
Revolution Iron technological
castings, development
mechanized
agriculture
Second 1830- Victorian Steam power Steam Without
1880 Prosperity railway engines, infrastructure, capital
steam goods industries
ships, rails, cannot take off.
shipping
Third 1880- Great Electrical Electrical The great depression
1945 Depression machinery components rather than
or the engineering steel demoralize the
Threshold goods Europeans,
Age galvanized them into
greater inventions,
the third World should
emulate such worthy
examples.
Fourth 1945- The Golden Fordist mass Nuclear Having just recovered
1990 Age and production, tech from the World War
Keynesian music/entertai automobiles II, the world in spite of
Full nments bliss. , trucks, the cold war was
Employment Hollywood and tractors, indeed at its best,
Hospitality Biz aircrafts, with full employment
petrochemic and entertainments.
als etc The music of that era
is still the best no
wonder some say the
Cold War was a
blessing in disguise
Fifth 1990 Post Cold Information Space tech This will probably
to War Era Technology computers, lead to the final
date (IT) electronics, frontier when
robotics, humanity generate
satellites, new knowledge to
genetic- create unimagined
engineering, technologies or
biotech, destroy itself with
cloning negative technology
nanotech such as cloning and
etc. nuclear technologies.
SOURCE: Technology is power by Sam Momah (1999)

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Handout 2:
The Interface between Technology Development and Entrepreneurship

Technology is the usage of science and technical knowledge in engineering

production, manufacturing in the industries and processing efficient and
effective service delivery for the benefit of mankind. The components of
technology are:
a) Machines, equipment and tools: machine are designed to perform a
particular task, usually powered, equipment and tools or instruments
required for a particular kind of work or activities while tools are
implement used or required for a particular trade or profession.
b) Techniques, methodology and strategy: techniques is a skill in the
practical aspect of an art which could as well means proficiency in an
art, methodology is the system of methods, principles and above all
procedure used in a particular activities while strategy is the means
adopted to achieve organizational or individual objectives, goals and
set targets.
c) Know-how, skills and competence: Know-how is specialized skills.
Skill is talent or gift naturally acquired or developed through training
and competence. It is a capability or training to do something
efficiently. To successfully utilize technology, machines, techniques
and skills are required. The big question now is who is an entrepreneur
that requires machines, techniques and skills and above all where,
when and how can he/she source these components of technology.

An entrepreneur is a person who is willing and able to convert a new idea or

invention into a successful innovation or a person who organizes and
operates a business or businesses, taking on greater than normal financial
risks in order to achieve the desire objectives. The word entrepreneur
according to Stokes (1998) was derived from a French vocabulary meaning
some one who goes between i.e. middleman. This is because in the early
ages entrepreneurs are seen as those who managed projects on behalf of the
actual owners. In the early 1800s, a French economist wrote that an
entrepreneur is someone who consciously moves economic resources from
an area of lower productivity into an area of higher productivity and yield.
David Stokes sees this definition and explains an entrepreneur as an
instrument of change, someone who does not seek to protect or optimize
existing ways of doing things but searches instead for a new and different
ways of doing things.

Schumpeter, (1942) observed that entrepreneurship resulted in new industries

but also in new combinations of currently existing inputs. Schumpeter's initial
example of this was the combination of a steam engine and then current
wagon making technologies to produce the horseless carriage. In this case
the innovation, the car, was transformational but did not require the

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development of a new technology but merely the application of existing
technologies in a novel manner. It did not immediately replace the horse
drawn carriage, but in time, incremental improvements which reduced the cost
and improved the technology led to the complete practical replacement of
beast drawn vehicles in modern transportation.

Entrepreneurship is the act of being an entrepreneur, which can be defined

as one who undertakes innovations, finance and business acumen in an effort
to transform inventions into economic goods through innovations. This may
result in new organizations or may be part of revitalizing mature organizations
in response to a perceived opportunity. The most obvious form of
entrepreneurship is that of starting new businesses (referred as Startup
Company).

THE ROLES OF AN ENTREPRENEUR

There are three basic roles of entrepreneurs, these include:
a) The Innovator: She/he turns creativity into reality. The entrepreneur as
innovator produces new things or creates new ways of doing things. Many
innovators are obsessive or single-minded about their invention.
b) The promoters: He/she is concerned more about how to develop the
innovation into a viable and successful business proposition.
c) The Catalyst: He/she facilitates the functions of the innovator and the
promoter by
i. Identifying opportunities for innovation
ii. Identifying new business opportunities
iii. Commits resources to exploit these new opportunities
iv. Takes a personal risk whether in financial or status terms
v. Contemplate and accept the consequences of failures.

THE INTERFACE
The interface between technology development and entrepreneurship was in
the early twentieth century when Schumpeter popularized entrepreneurship.
He argued that entrepreneurship is a disequilibrating phenomenon rather than
an equilibrating force. He further proposed a theory of creative destruction,
where new firms with the entrepreneurial spirit displace less innovative
incumbents, ultimately leading to a higher degree of economic growth. In his
book Capitalism, Socialism and Democracy, Schumpeter (1942, p.13) further
argued that entrenched large corporations tend to resist change, forcing
entrepreneurs to start new firms in order to pursue innovative activity. This
resulted in to what is referred to by Peter Drucker as TECHNO-PRENEUR
known as Technology value added entrepreneur.

2. TECHNOLOGICAL DEVELOPMENT AND ENTREPRENEURIAL

OPPORTUNITIES
Technological development starts from the teaching of introductory sciences
and integrated sciences at the junior secondary school level while introduction
to basic sciences starts at the senior secondary school level. The basic and
applied sciences are at the tertiary level while designs, models and pilot
plants are the advanced level of the applied research results being promoted

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by the Research Institutions. At this level, the research results are ready for
full commercialization by entrepreneurs.

Science, Technical Science, engineering Entrepreneurial

& Vocational & Technology Opportunities &
Education Industrial Revolution

Science, Technical and Vocational Education is a comprehensive term

referring to those aspects of the educational process that evolved in addition
to general education. It represents the study of technologies and related
sciences and the acquisition of practical skills, attitudes, understanding and
knowledge relating to occupations in various sectors of economic and social
life.
Science is the intellectual and practical activity encompassing the systematic
study of the structure and behavior of the physical and natural world through
observation and experiment.
Technical Education is that branch of education designed at upper
secondary and lower tertiary levels to prepare middle level personnel
(technicians, technologists, middle management etc.) and at University level
to prepare engineers for higher management positions.

Vocational Education is designed to prepare skilled personnel at lower

levels of qualification for one or group of occupations, trades or jobs. It is
usually provided at upper secondary level, which includes general education,
practical training for the development of skills required by the chosen
occupation and related theory.
The proportions of these components may vary considerably but the
emphasis is usually on practical training within the framework of lifelong
education.

Entrepreneurship Education is teaching Students how to start and run their

own businesses; it also help prepare students for self-employment by the time
they leave schools. The practical training is focused on production
(Industrialization) and trading (Commerce).

Techno-preneurs are entrepreneurs who used TECHNOLOGY as their

driving factor in transforming resources into goods and services, creating an
environment conducive to industrial growth. It is also regarded as a special
type of entrepreneurship involved in delivering an innovative hi-tech product
(e.g. Apple, Microsoft etc) or makes use of hi-tech in an innovative way to
deliver its product to the consumer (e.g. amazon.com, ebay.com etc)

Science, Engineering and Technology: The three disciplines are so

symbiotically linked that none can amply exist without the three to survive and
flourish. In a simple definition, according to (Momah 1999) Science simply
tells us WHY things happen, Engineering tells us HOW things happen while
Technology makes things happen.

Engineering is the branch of science and technology concerned with the

design, building, and use of engines, machines, and structures. An engineer

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is a person who designs, builds, or maintains engines, machines, or a person,
who qualified in a branch of engineering.

ENTREPRENEURIAL OPPORTUNITIES
Technology presents unique opportunities to entrepreneurs within a business
environment. In fact, it is only real entrepreneurs that see opportunities as
result arising from technological development. Opportunities present are
present in following forms:
a) Adaptation: A prospective entrepreneur/industrialist can adapt or
imitate other business innovators. This is easily done when there is no
patent right for a particular invention or when the rights have lapsed.
b) Rapidly expanding market: Existing firms may not be able to serve
adequately a market which is rapidly expanding as such a prospective
entrepreneur/industrialist may take advantage of such technology and
venture into business thereby taking up market niches that may be left
as a result of expansion.
c) Government/Private Patent: That is taking advantage of either
government or private patent that may be available either on royalty or
royalty free basis.
d) Research results: Results of both applied or development research
can be acquired (sometimes free) for a starter either for a pilot plant
project or try and error basis from government agencies, research
institutes and tertiary institutions.
e) Analysis of Government policy statements: opportunities may arise
from government budgets and plans especially in respect of areas of
policy change in favour of technology support or new investment. Also,
business ideas can arise from analysis of private companies’ annual
reports with regards to areas of linkages with Small and Medium Scale
Enterprises.
f) Visit/inquiring from Government agencies: (NDE, NAPEP,
SMEDAN, TIC, etc.) and marketing research and consultancy firms,
constant readings of industrial columns and publications
g) Franchising with business association: such as NASSI, NASME,
NACCIMA, and MAN etc.
h) Failed Company or product: The failure of certain companies or
products gives room for a prospective entrepreneur/industrialist to
venture into serving the unserved market that has been left behind due
to the failure of such company or product.
i) Brainstorming: Business ideas can be stimulated through
brainstorming techniques; it could be group of friends, colleagues or
relations. The usual brainstorming group consists of (2-5 or 5-10) and
the brainstorming session should not last more than 1-2 hours. During
the session as many ideas as possible should be encouraged and
there should be no room for evaluation yet until many ideas have been
generated before then another day for evaluation will be fixed. It is

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 always better for the prospective entrepreneur/industrialist to lead and
moderate the discussion during the brainstorming session
j) Inquisitive/seeking for information: The prospective
entrepreneur/industrialist is encouraged to be inquisitive and ask as
many questions as possible.

TECHNOLOGICAL ENVIRONMENT AND BUSINESS

This consist of those factors relating to knowledge being applied, the
materials and machines used in the production of goods and services that
have impact on the business of an organization. These include:
a. Sources of Technology: the company sources, external sources,
foreign sources, cost of technology, acquisition, collaboration in and
transfer of technology.
b. Technological Development: stages or changes in the rate of
technological development, rate of research and development.
c. Impact of Technology on Human Being: the man-machine system
and the environmental effects of technology e.g. pollution.
d. Technology infrastructure: Communication, transportation, energy
technology, training and management institutions.

Technological changes involve invention and innovation and how it affects,

alters and modifies business operations. Entrepreneurs should therefore not
be concerned with technology per se, but with technological changes and its
accelerated pace. The Entrepreneur must always be in search of ways of
improving his goods and services. Thus, technological changes may lead to
capital saving or labour saving, cost reducing or demand creating innovations
which according to Schumpeter, can be achieved in one of the following ways:
a) Introduction of a new production method
b) Utilization of a new source of raw material
c) Introduction of a new product including quality improvement
d) Opening up of new markets
Technological environment has direct impact on the general business
environment. Business analysis can be done to identify the Key Factors for
Success (KFS) in the sector and then use these to focus the analysis on
particular environmental concerns.
a. The Key Factors for Success are those resources, skills and attributes
of the business in the sector that are essential for delivering success in
the market place.
b. When undertaking analysis of the business, the identification of the
KFS for the sector may provide a useful starting point e.g. KFS of “low
labour costs” would suggest an environmental analysis of the following
areas:
i. General wage level in the country

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 ii. Government’s regulation towards labour
iii. Labour militancy
c. To identify the KFS in a particular business sector, it is normal to
examine the type of resources and the way they are employed
d. The stratification of the specific functional areas for analysis of any
business depends on the product type, business size and age. Most a
time the functional areas are:
i. Operations
ii. Personnel
iii. Market
iv. Finance
v. General Management

HAND OUT 4
NEW TECHNOLOGY AND ENTREPRENEURSHIP OPPORTUNITIES
NEW means not existing, before introduction or discovered recently or now for
the first time; New ideas means novel, original, imaginative, creative,
experimental, contemporary or futuristic thoughts and concepts while New
technology means recently developed, up to date, latest, current, state-of-the-
art, advanced, modern, cutting-edge or leading-edge practical application of
science and technical knowledge.

The emergence of new technologies, inventions and innovations to a large

extend depend on the effort and sacrifices of researchers who worked day
and night brainstorming on new ideas, concepts and inspirations resulting in
the creation of new entrepreneurship opportunities. The researchers do a lot
of research to arrive at the desire results, what then is RESEARCH?

Research is the systematic investigation into and study of materials and

sources in order to establish facts and reach new conclusions through
experimentation, testing, analysis, fact-finding, fieldwork, examination etc.
Development is the process of developing new and refined product or idea
through forming, establishment, initiation, instigation, origination, innovation,
and generation from one stage to another. It is the development of the
established facts based on research that ultimately resulted in the new
technologies that created that envisaged entrepreneurship opportunities.
Some of the new technologies are:

a) Information Communication Technology: the study or use of systems

(esp. computers and telecommunications) for storing, retrieving, and sending
information. The proliferation of the availability of information and the
accompanying changes in its storage and dissemination owing to the use of
computers and the communication over a distance by cable, telegraph,
telephone, or broadcasting is severally referred to as information revolution,
computer age, jet age etc. This new information communication technology
created entrepreneurial opportunities in the marketing, cloning and processing
of hardware and software. The youths all over the world have since taken
advantage of this entrepreneurial opportunity.

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b) Biotechnology: the exploitation of biological processes for industrial
and other purposes, especial, the genetic manipulation of
microorganisms for the production of antibiotics, hormones, etc. this
biological processes of exploitation and manipulation are equally used
for small scale farming of all sorts to produce genetically modified
produce like mushroom, cassava, yam, legumes, apples etc. These are
new entrepreneurship opportunities for students and young graduates.
c) Nano technology: the branch of technology that deals with
dimensions and tolerances of less than 100 nanometers, especially the
manipulation of individual atoms and molecules. Nano technology
present a new frontier for entrepreneurship opportunities in the areas of
nano second measurement, nano robots development, nano bacteria
identification, nano structure formation, laser ray usage in the medical
sciences etc.

HAND OUT 5:
INSTITUTIONS SUPPORTING TECHNOLOGICAL
ENTREPRENEURSHIP
There are various organizations in Nigeria that support technological
entrepreneurship. Among them are:

a) TECHNOLOGY INCUBATION CENTERS (TIC): Established across

the country to facilitate scale-up and commercialization of R&D results,
technologies and Inventions through provision of integrated facilities,
infrastructures and other business support services for a period of
three years to over come some initial challenges in start-up
enterprises.
b) NATIONAL OFFICE FOR TECHNOLOGY ACQUISITION AND
PROMOTION (NOTAP) Established in 1979 with headquarter in Abuja
to primarily strengthen national capabilities for the negotiation,
acquisition and promotion of technology. To also guide intellectual
property right and patenting of new technologies, inventions and
innovations through monitoring of technology acquisitions and transfer
agreements
c) RAW MATERIAL RESEARCH AND DEVELOPMENT COUNCIL
(RMRDC): Established in 1987 to facilitate research, promote the
development and use of local raw materials in the country. General
supports and expedites industrial development and self- reliance
through the maximum utilization of local raw materials as inputs for
industries operating in the country.
d) FEDERAL INSTITUTE OF INDUSTRIAL RESEARCH, OSHODI
(FIRRO): Located in Lagos was established to conduct research into
food processing, Agro-allied, Textiles, Pulp and paper design and
fabrication of prototypes and microelectronics.

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CONCLUSION
Consistency, technological development over the years has systematically
increased technological entrepreneurship and subsequently increased
entrepreneurship opportunities. The success of technological
entrepreneurship is through innovation and commercialization. Innovation
and commercialization of technologies is an opportunity for Techno-
preneurs. Today, many new small firms are in the business of providing
information services. A key area in the formation of new ventures in the
1980s has been in computer and business services. Since the industry is
relatively young, the enterprises involved tend to be small. There was an
upsurge in the numbers of companies supplying and servicing the new
products of that era which include motor cars, radios and other
electrical/electronic goods, chemical and pharmaceutical products. As
these industries matured and consolidated into fewer, larger organizations
in the later part of the century, new technology provided the opportunity for
new enterprise to develop and spread once again. This cyclical view of
industrial development infers that the new businesses of today will tend to
amalgamate into larger units as markets mature. New technologies
developments give rise to new market, which shift the balance towards
small businesses again. Finally, it is instructive to note that a sound
foundation for education is critical to exploiting technological opportunities.
Hence, Nigeria should address the weaknesses in its educational sector in
order to be in the position to benefit from the globalize world which is
powered by technology and innovation.

QUESTIONS
1. Define technology and briefly discuss the three components of
technology
2. Briefly discuss any technological development and the
entrepreneurial opportunities it present for techno-preneurs.
3. What is the importance of technological environment to a
technology based business?
4. What are the opportunities presented by ICT as a new field of
technology?

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REFERENCE
Abubakar M.S (2010) Revitalizing TVET for Technology Entrepreneurship and
Industrial Development: Measures, Designs and Applicability
Drucker P.F, (1985) Innovation and Entrepreneurship Practice and Principle.
Harper & Row Publishers New York
Momah S. (1999) Technology is Power; Spectrum Books Ltd Ibadan.
NACETEM (National Centre for Technology Management) (2008)
Technological Entrepreneurial Attitude in Nigeria Tertiary Institution, A Policy
Project Funded by the Federal Government of Nigeria Under 2005 Capital
Project. www.nacetem.org.
Ndagi A. (2005) Small Business Management: A Pragmatic Approach; Allanza
International Books, Minna.
Sani S. A, Mojola O.O, Ilori M.O, Akarakiri J.B, (1997) Readings in
Technology Management. NACETEM, Ile-ife
Schumpeter J. A (1942) Capitalism, Socialism and Democracy. Harper and
Row New York. Third edition.
Stokes D. (1998) Small Business Management: A Case Study Approach.
Continuum London. Third Edition

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