TECHNOPRENEURSHIP Author and their Definition in Entrepreneurship

PRELIM
Drucker (1985)
Business Plan Entrepreneurship is an act of innovation that involves endowing
 Executive Summary existing resources with new wealth-producing capacity.
 Company Description
 Products and Services Stevenson (1985)
 Marketing Plan Entrepreneurship is a process by which individuals pursue and exploit
 Operational Plan opportunities irrespective of the resources they currently control.
 Management and Organization
 Startup Expenses and Capitalization Gartner (1988)
 Financial Plan Entrepreneurship is the creation of organizations, the process by
 Appendices which new organizations come into existence.

Entrepreneurship Timmons (1997)

Historically, entrepreneurship is one of the oldest activities. To Entrepreneurship is a way of thinking, reasoning, and acting that is
discover or identify new business possibilities and to exploit these opportunity driven, holistic in approach, and leadership balanced.
possibilities in new ventures for economic gain has always been
important in human life. Entrepreneurial activities in society are Venkataraman (1997)
mentioned by the ancient Greeks, and it was the philosopher Entrepreneurship is about how, by whom, and with what
Xenophon (approx. 430-354 B.C) who recognized the adventurous consequences opportunities to bring future goods and services into
and opportunity seeking activities of oversea merchants (Karayiannis, existence are discovered, created, and exploited.
2003).
Entrepreneurship
"Entrepreneur" was originally a French word. The word appeared for is the process of creating something new with value by devoting the
the first time in the 1437 Dictionary of the French language. Three necessary time and effort, assuming the accompanying financial,
definitions of the "entrepreneur" are listed in this dictionary. The most psychic, and social risks, and receiving the resulting rewards of
common meaning was celui qui entreprend quelque chose, monetary and personal satisfaction and independence.
referring to a person who is active and achieves something.
The following are some of the characteristics of an entrepreneur
according to Delmar (2000):
1. Need for achievement
2. Risk-taking propensity
3. Locus of control
4. Over-optimism
5. Desire for autonomy
Four Basic Aspects of Being an Entrepreneur Types of Startups
1. Entrepreneurship involves the creation process  Scalable
2. Entrepreneurship requires the devotion of the necessary time and  Large Company
effort  Small Business
3. Necessary risks  Social Entrepreneurship
4. Reward of being an entrepreneur  Lifestyle
 Buyable
How Entrepreneur think?
Entrepreneur think differently from non-entrepreneurs. Moreover, an Role of Entrepreneurship in Economic Development
entrepreneur in a particular situation may think differently from when
faced with some other task or decision environment. Entrepreneurs Schumpeter (1934) visualized the entrepreneur as the key figure in
must often make decisions in highly uncertain environments where the economic development because of his role in introducing innovations.
stakes are high, time pressures are immense, and there is
considerable emotional investment. • Parson and Smelser (1956) described entrepreneurship as one of
the two necessary conditions for economic development, the other
The Entrepreneurial Decision Process being the increased output of capital.
Change from present lifestyle • Harbison (1965) includes entrepreneurs among the prime movers of
Form New Enterprise innovations, and Sayigh (1962) simply describes entrepreneurship as
 Desirability of new venture formation a necessary dynamic force.
 Possibility of new venture formation
• The role of entrepreneurs is not identical in the various economies.
Business Startups Depending on the material resources, industry climate and
 Startups are young companies founded to developed a unique responsiveness on the political system, it varies from economy to
product or service, bring it to market and make it irresistible and economy.
irreplaceable for customers (Forbes, 2021)
 Startups are rooted in innovation, addressing the deficiencies of • The role of entrepreneurship in economic development involves
existing products or creating entirely new categories of goods and more than just increasing per capita output and income; it involves
services, thereby disrupting entrenched ways of thinking and initiating and constituting change in the structure of business and
doing business for entire industries. society.
 Example: Dinnerly was created for people who like homemade
cooking, but don’t like overpaying for the good things in life. We °Role of Entrepreneurship in Economic Development
know you’re busy, so we’re here to make your evenings easier
with seriously good recipes and fresh ingredients delivered to your •Promotes Capital Formation
favorite weeknight spot: home.
•Promotes Country's Export Trade

•Creates Large Scale Employment Opportunities

 Technological Innovation
•Creating innovation
• Technology is the application of tools, materials, processes, and
•Wealth Creation and Distribution techniques to human activity.

•Entrepreneurs Also Create Social Change Technology

Technology & Technopreneurship .Information Technology

Technopreneur & Technopreneurship .Biological based Technology

• By definition, Technopreneurship is, by a large part, still .Mechanically based Technology

entrepreneurship. The difference is that technopreneurship is either
involved in delivering an innovative hi-tech product (e.g. Intel) or Innovation
makes use of hi-tech in an innovative way to deliver its product to the
consumer (e.g. eBay), or both (e.g. most pharmaceutical companies). Innovation is the process of using knowledge to solve a problem.
Innovations are not confined to tangible products but also include Innovation is different from invention, which is the discovery of a new
services and processes. idea, because it involves more than just coming up with an idea about
how to use knowledge to solve a problem.
•Entrepreneurship is a process and the entrepreneur is an innovator
who uses processes to challenge existing norms via combinations of For example, during the Renaissance, inventors came up with the
new resources and methods in commerce. ideas for parachutes, fountain pens, mechanical calculators, and ball
bearings. However, these ideas did not become innovation until much
•Technopreneurs are entrepreneurs who used "technology" as their later because they were not technically feasible and could not be
driven factor in transforming resources into goods and services, implemented at the time that the ideas were discovered.
creating an environment conducive to industrial growth.
Technological Innovation
• Technopreneurship requires strategic thinkers to succeed in a
rapidly changing global environment and to achieve long run • Simply put, it is the use of knowledge to apply tools, materials,
sustainable competitive advantage. Technopreneurs are breaking the processes, and techniques to come up with new solutions to problems.
conventional mental blocks and playing with imagination and Technological innovation can be planned or accidental.
possibilities, leading to new and meaningful connections and
outcomes while interacting with ideas, people, and the environment. Sometimes the use of technical knowledge to solve problems is
purposeful. For instance, many companies invest in research and
development with the goal of coming up with an innovative new
product or process that will give them an advantage, over their
competitors.
• It is the use of knowledge to apply tools, materials, processes, and Importance of Technology Strategy
techniques to come up with new solutions to problems.
Technological innovation can be planned or accidental. • Technology strategy has to deal much more with issues of
uncertainty than general business strategy because technological
Sometimes the use of technical knowledge to solve problems is change is highly uncertain. A very small portion of new technology
purposeful. For instance, many companies invest in research and ideas result in new products or processes.
development with the goal of coming up with an innovative new
product or process that will give them an advantage, over their •Technology strategy involves the use of intellectual property
competitors. management to capture financial returns to a much greater degree
than general business strategy.
• However, other times technological innovation isn't the result of a
deliberate attempt to solve a particular problem. •Technology strategy involves the creation of new products and
services that are sometimes new to the world, which demand different
• For example, Pfizer was not looking for a solution to the problem of mechanisms for assessing market needs and designing products than
erectile dysfunction when it came up with Viagra. is the case with general business strategy.

Implications of Technological Innovation •Technological change occurs in ways that influence the design of
effective strategies, and create business dynamics that are different
Technological innovation doesn't have to be profitable. from those that exist when new technology is important.

There is not a direct, one-to-one, relationship between technological •Organizations faced with a great deal of technical change need to be
change and new products or processes. structured, manage human resources, and design business models in
ways that are different from organizations that are not faced with
Importance of Technological Innovation technical change.

1. Because of the importance of technological innovation to value • Making decisions about technology projects requires the use of
creation, technological change has tremendous economic impact. different decision-making tools than is the case with non technology
2. It has a profound effect on the creation of wealth for individual projects.
entrepreneurs and corporate shareholders.
3. It has a major impact on our lives. • Technological change opens up opportunities for new, high growth
businesses in ways not possible in other settings.
Technology Strategy High-technology businesses face many strategic issues, like
standards and increasing returns that are much rarer with low
A technology strategy is the approach that a firm takes to obtaining technology businesses.
and using technology to achieve a new competitive advantage, or
defend an existing technology-oriented competitive advantage erosion.
• Technology S curves are graphical representations of the Problem Inventory Analysis
development of a new technology. They compare some measure of
performance with some measure of me effort. • Problem inventory analysis uses individuals in a manner that is
analogous to focus groups to generate new product ideas. However,
Idea Generation instead of generating new ideas themselves, consumers are provided
with a list of problems in a general product category. They are then
.Sources of New Ideas asked to identify and discuss products in this category that have the
particular problem. This method is often effective since it is easier to
.Consumer relate known products to suggested problems and arrive at a new
product idea than to generate an entirely new product idea by itself.
.Existing Products/Services Problem inventory analysis can also be used to test a new product
.Distribution Channels idea.

. Government
Creative Problem Solving
.Research and TECHNOPRENEURSHI Development
Brainstorming
Methods of Generating Ideas
Checklist Method
Focus Groups
Attribute Listing
• A moderator leads a group of people through an open, indepth
discussion rather than simply asking questions to solicit participant Reverse Brainstorming
response. The group of 8 to 14 participants is stimulated by comments
from other group members in creatively conceptualizing and Free Association
developing a new product idea to fulfill a market need.
Big-Dream Approach
Brainstorming
• The brainstorming method allows people to be stimulated to greater Brainwriting
creativity by meeting with others and participating in organized group
experiences. Although most of the ideas generated from the group Forced Relationships
have no basis for further development, sometimes a good idea
emerges. Parameter Analysis

A Model of the Opportunity Recognition Process

Education
 Take-off)
Experience
•Low sales
Prior knowledge of markets and customer problems • High cost per customer
• Financial losses
Entrepreneurial alertness • Innovative customers
•Few (if any) competitors
Outcome: successful opportunity recognition • Increasing sales
Cost per customer falls
Personal experiences
• Profits rise
Work experience • Increasing No.
of customers
Networks More competitors

Product Planning and Development Process •Peak sales

•Cost per customer lowest
Idea stage •Profits high
•Mass market
Concept stage •Stable number
of competitors
Product development stage
•Falling sales
Test marketing stage •Cost per customer low
• Profits fall
Commercializ ation •Customer base contracts
•Number of competitors fall

Life Cycle Stages and their Marketing Implications Technology Adoption and Propagation

(Introduction .Technology Adoption Curve

Growth (Graphh neto)
Maturity Group of Adopters
Decline
Saturation Innovators
Shake-out
Sales Late majority
 Choosing the Customer
Early Adopters
• A vertical market has a great need for your new product if the new
Laggards product would improve your customers' productivity, cut their costs, or
allow them to do something that they otherwise could not do.
Crossing the chasm • To determine which vertical market has the greatest need for your
(Graph neto) new product, you need to estimate its value to different markets. The
best way to do this is to estimate the time it takes to pay back the cost
Identifying the Take-Off Stage of the product in each market.

• The first step in reaching the mass market is identifying that a new Beachhead Strategy
product has reached the take-off stage. You can figure this out in a
couple of different ways. • For new companies to successfully cross the chasm, it is sometimes
• First, you can look at the past demand for the product. Is the rate of necessary for them to segment the early majority of the market,
change in demand accelerating? If it is, that signals that a product is looking for a niche whose needs are not well met. By focusing on this
reaching the take-off stage. Second, what do new customers for the segment of the market, the company can make headway.
product look like and how do they differ from existing customers?
Market Dynamics
How to Cross the Chasm
• Demand forecasts help you to determine how much to produce,
• Marketing consultant Geoffrey Moore termed this transition crossing allowing you to avoid underproduction and the loss of potential
the chasm because of the differences in the adoption decisions of customers to your competitors, as well as overproduction, and. the
early adopters and the majority of the market. corresponding need to cut your price and profits.
• As the previous section indicated, to sell your new product to the • Demand forecasts help you to project your future costs in
majority of the market, you need to show how it provides value to businesses based on economies of scale. In businesses with high
customers, which you might not need to do with the innovators or fixed costs, unit costs decrease as the volume of production increases,
early adopters. making your costs a function of the size and rate of sales growth.
• You will need to pursue a vertical marketing strategy (focusing on
customers in a single industry) rather than a horizontal marketing Forecasting Demand
strategy (serving customers in multiple industries at the same time).
The majority of the market seeks references from adopters they know, • Predicting anything that will happen in the future isn't easy. This
and this is not likely if those customers are in different industries. holds true for market demand as well as anything else. Because
markets are dynamic, you can't estimate future demand solely on the
basis of the current market size. In fact, for many new technology
products and services, a huge market tomorrow may not even exist
today. Take, for example, the market for Internet search, which is
enormous, but did not even exist in the early 1990s.
 The Importance of Complementary Technologies
Forms of Innovation
• The nature of an innovation affects its rate of diffusion. In general,
new products based on discrete technologies diffuse faster than ones • When formulating a technology strategy, you need to consider the
based on systemic technologies because new products based on different forms that technological innovation can take. While people
systemic technologies can only diffuse as fast as their slowest intuitively think of new technology making possible innovations that
diffusing component. For example, the diffusion of music downloads take the form of new products or services, those innovations can also
was slow until MP3 players were developed and the downloaded take the form of new production processes that allow older products
music could be made portable. and services to be made in new ways, new raw materials that change
the composition of products or services, new ways of organizing that
Substitution change the way that existing products are produced and sold, and
new markets where the products or services can be offered.
• The diffusion of new products and services is often affected by
substitution. (Substitution is the replacement of one technology by Forms of Innovation
another that can achieve the same objective.) While some observers
argue that all new products and services are substitutes for some • The creation of the compact disk is an example of innovation, which
existing product or service, substitution is more direct in some cases occurred in response to the development of a new technology the
than in others. For example, fiber optic cable is a very clear substitute laser-and took the form of a new product.
for coaxial cable because telecommunications firms now use the • Amazon.com's effort to sell books on the Internet is an example of
former for almost all purposes that they previously used the latter. an innovation, which occurred in response to the development of a
Similarly, DVD players have substituted for laser disk players, and new technology-the Internet-that took the form of a new way of
effectively stopped their diffusion. organizing a firm.
• The export of frozen meat by ship to distant locations is an example
Sources of Opportunities of an innovation that took the form of a new market. The invention of
the refrigerated ship in the 1880s didn't change the product the filets
Opportunities to create new products and processes emerge from were still filets-and the business was still organized the same way.
change in technology, in politics and regulation, and in social and
demographic factors. Effective technology strategists either create or • The different forms that innovation can take matter for your
identify those opportunities and figure out the best way to take company's technology strategy in two important ways. First, the value
advantage of them-by creating new products, establishing new that your company can generate and capture from innovating depends
production processes, organizing businesses in new ways, introducing on the form that its innovation takes. Sometimes producing old
new inputs, or tapping new markets. products and services by organizing in new ways, by using new raw
materials, or by developing new production processes is more
• Technological Change beneficial to a company than developing new products and services.
• Political and Regulatory Change For example, in many industries, the gains from applying
• Social and Demographic Change nanotechnology lie in the development of new materials or new
• Combination production processes, not in the development of new products.
 Industry and the Nature of Innovation

• As a technology strategist, you also need to be aware that the nature

of innovation depends on the production process in an industry. Some
products, like aluminum, petroleum, and steel, are nonassembled.
Lacking components, these products are created through steps or
sub-processes that are chemical, thermal, or machined. Other
products are simple assembled products, made up of linked
subsystems, such as stoves, guns, and skis. Still other products are
assembled systems, composed of distinct subsystems that interact
and must be linked together, such as automobiles, televisions, and
airplanes.