TECHNOLOGY ENTREPRENEURSHIP
(ENT 600)
UNIT 1:
INTRODUCTION TO
TECHNOLOGY ENTREPRENEURSHIP
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 1
DEFINITION OF ENTREPRENEURSHIP
• Entrepreneurship can be defined as the
identification, evaluation and exploitation of
previously unexploited opportunities.
• Entrepreneurship is a dynamic process that
involves change and creation. The focus is on
creation of a new enterprise or business as
well as the wealth associated with it.
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 2
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
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 3
Dimensions of Entrepreneurship:
1. Risk
• Risk indicates elements of uncertain outcomes or
events that is present 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.
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 4
Dimensions of Entrepreneurship:
2. 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 while
Innovation focuses on doing new things.
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 5
Dimensions of Entrepreneurship:
3. Opportunity Exploitation
• Entrepreneurship is focused on taking
advantage or exploiting of previously
unexploited opportunities.
• The exploitation of opportunities often result in
the creation of a new enterprise or business as
well as the wealth associated with it.
• The new enterprise should be beneficial to the
society and make a positive change.
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 6
Dimensions of Entrepreneurship:
4. Pro-activeness
• Pro-activeness refers to the propensity to act on
information, ideas and opportunities in a timely
and speedy manner.
• Acting at the right time and in the right manner
on the superiority of an idea or opportunity can
differentiate between better success or less
success or even between success and failure.
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 7
DEFINITION OF TECHNOLOGY
ENTREPRENEURSHIP
• Technology Entrepreneurship can be defined as a form
of entrepreneurship focused on identifying high-potential,
technology-intensive business opportunity for possible
exploitation into new products, processes or services.
• Technology entrepreneurship can be based on radical
innovations (revolutionary breakthrough in technology) or
incremental innovations (technological advancement).
• 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,
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 2005)8
THE ENTREPRENEURIAL PROCESS
• The entrepreneurial process in general
encompasses all the cognitive (thinking)
and behavioral (action) steps from the
initial emergence of a rough business idea
until the creation of a new business
venture.
(Adapted from Davidsson (2005)
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 9
Cont…
The Entrepreneurial Process
• The entrepreneurial process is generally
composed of three key phases:
i. The idea generation or idea discovery
phase
ii. The idea evaluation and development phase
iii. The idea exploitation phase
• Figure 1 shows the entrepreneurial process with
examples of activities at each stage
Entrepreneurship Dept, FBM
ENT600/UNIT 1 : INTRO 10
(2009)
Fig 1: The Entrepreneurial Process
Idea Search & Idea Evaluation & Idea Exploitation
Generation Phase Development Phase Phase
Idea Discovery Research & Development Business Start-up
(Invention/Innovation)
Idea Screening Technology
Concept Testing Commercialization
Prototyping Monitoring &
Test Marketing Evaluation
Technology Blueprint
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 11
ENTREPRENEURIAL PROCESS:
i. Idea Search and Generation Phase
• This phase is also known as the opportunity discovery
phase
• Both the terms ‘idea’ and ‘opportunity’ indicate the
possibility of bringing something new to the market
• Individuals or groups of individuals enter this phase by
either:
– Actively searching for business possibilities that they
can offer in a better, more creative or efficient form or
– Discovering a solution for their own problem
experienced at work, play or in the marketplace that
has the potential of being shared with others who are
willing to pay for the solution
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 12
ENTREPRENEURIAL PROCESS:
ii. Idea Evaluation & Development Phase
• This phase is characterized by efforts to better understand
what it will take to bring the idea or opportunity into
business
• Some key activities at this stage include:
– doing the research and development work to invent or
innovate a new technology-based product, process or
service
– concept testing
– prototyping
– market testing
– preparing the technology blueprint
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 13
ENTREPRENEURIAL PROCESS:
iii. Idea Exploitation Phase
• This phase is generally characterized by the decision
whether 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 entirely and not pursue any
other business ideas
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 14
Fig 2: Idea Exploitation Decision Options
Proceed & Exploit YES
Opportunity Idea Exploitation
Decision
NO
Abandon Terminate
or Process
Current Idea
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 15
Cont…Entrepreneurial Process:
Idea Exploitation Phase
• If the decision is to exploit the opportunity, among
the key activities include the registering of the
business entity, hiring workers and starting
business operations
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 16
Figure 3:
A Model of Role of Entrepreneurship
in the Economy
Natural Capital Beneficial Outputs
ECONOMY
Financial Capital Entrepreneurs
as agents of Undesired Waste
Intellectual Capital progress Outputs
Adapted from Dorf & Byers (2005)
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 17
Entrepreneurship & the Economy:
The Economic Inputs
• Natural Capital
– Consist basically of natural resources such as
minerals, fuels and energy
– As such, this natural capital can be
irreversibly depleted through neglect or
irresponsible usage
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 18
Cont…Entrepreneurship & the Economy:
The Economic Inputs
• Financial Capital
– Refers to financial assets such as money and shares
• Intellectual Capital
– Refers to knowledge that is accessible within a
business because it has been recorded (e.g. in
documents and reports), explained (e.g. through
knowledge sharing processes ) and disseminated
(e.g. through inter-team or inter-department project or
research work)
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 19
Cont…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 business
employees
– Organizational Capital
• This is the management structure and peripherals
(including hardware, software, databases patents
and systems) that support the human capital
– Social Capital
• The relationships and the quality of the
relationships that the business maintains with its
suppliers, partners and customers
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 20
Cont…Entrepreneurship & the Economy:
The Economic Inputs
• Economic progress and growth (outputs) is essentially in
two forms of:
– The beneficial outputs (e.g. increase in new
business ventures that create new jobs)
– The undesired inefficiencies and waste outputs
(e.g. pollution from growing numbers of industries)
– The benefits should be maximized while waste and
inefficiencies need to be minimized for
entrepreneurship to have the desired impact on the
economy
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 21
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/00002064 retrieved 25
June 2008)
Entrepreneurship Dept, FBM (2009) ENT600/UNIT 1 : INTRO 22
