ENTREPRENEURSHIP & TECHNOPRENEURSHP

1. ENTREPRENEURSHIP & TECHNOPRENEURSHP Prepared by Harry S. Dachlan harrysd@brawijaya.ac.id

2. Why we need an entrepreneur? harrysd@brawijaya.ac.id

3. 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 harrysd@brawijaya.ac.id

4. harrysd@brawijaya.ac.id

5. Are they any business opportunities from this scenery? harrysd@brawijaya.ac.id

6. How many business should be established to have all this stuffs inside your kitchen? harrysd@brawijaya.ac.id

7. How about this messy room? harrysd@brawijaya.ac.id

8. How about communication industry? harrysd@brawijaya.ac.id

9. How about airlines industry? harrysd@brawijaya.ac.id

10. Entrepreneur, Technopreneur, Intrapreneur, Innovator, Manager harrysd@brawijaya.ac.id

11. Earlier Viewpoints (1700-1950s) • The word entrepreneur comes from French word ‘entreprendre’ • “Entreprendre” – individuals who undertake (the risk of new ventures). harrysd@brawijaya.ac.id

12. 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. harrysd@brawijaya.ac.id

13. “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” harrysd@brawijaya.ac.id

14. “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] harrysd@brawijaya.ac.id

15. “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] harrysd@brawijaya.ac.id

16. Menger’s Model of Value-Added Transformation of Resources Source: David H.Holt. Entrepreneurship. New Venture Creation Englewood Cliffs, NJ: Prentice-Hall 1992, p.5 harrysd@brawijaya.ac.id

17. “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] harrysd@brawijaya.ac.id

18. 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. harrysd@brawijaya.ac.id

19. 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”… harrysd@brawijaya.ac.id

20. Innovations are not confined to tangible products but also include services and processes. • The continuous improvement in financial sector • City bank, Air Asia… harrysd@brawijaya.ac.id

21. harrysd@brawijaya.ac.id

22. 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. harrysd@brawijaya.ac.id

23. 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. harrysd@brawijaya.ac.id

24. Any Questions? harrysd@brawijaya.ac.id

25. 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 harrysd@brawijaya.ac.id

26. 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) harrysd@brawijaya.ac.id

27. 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 harrysd@brawijaya.ac.id

28. 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. harrysd@brawijaya.ac.id

29. 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 harrysd@brawijaya.ac.id

30. Entrepreneurial Traits (2) • Important for Success: • Leadership • Competitiveness • Good physical health • Creative • High level of energy • Versatility harrysd@brawijaya.ac.id

31. 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 harrysd@brawijaya.ac.id

32. 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 Difference Between Entrepreneurship And Small Business harrysd@brawijaya.ac.id

33. Entrepreneurship Statistics…Do You Know? 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 harrysd@brawijaya.ac.id

34. Entrepreneurship StatisticsDo 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 harrysd@brawijaya.ac.id

35. 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 harrysd@brawijaya.ac.id

36. Malaysian Setting & Global Scenario harrysd@brawijaya.ac.id

37. Mewujudkan masyarakat saintifik dan progresif, masyarakat yang mempunyai daya perubahan tinggi dan memandang ke hadapan, yang bukan sahaja menjadi pengguna teknologi tetapi juga penyumbangkepada tamaddun saintifik dan teknologi masa hadapan harrysd@brawijaya.ac.id

38. 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 harrysd@brawijaya.ac.id

39. E-Business MSC Flagship Applications Smart Schools Multipurpose Card Telehealth Electronic Government Technopreneur Development R&D Cluster Borderless Marketing Centre harrysd@brawijaya.ac.id Worldwide Manufacturing Web

40. Malaysia Economic Transformation & Drivers Source : Malaysia’s National Economic Action Council Knowledge-based Knowledge-driven KNOWLEDGE BASED / INTELLECTUAL CAPITAL High-tech Manufacturing & Services HIGH TECHNOLOGY / SERVICES Productivity-driven Medium-tech Manufacturing & Services Investment-driven Assembly-type Manufacturing TECHNOLOGY / FOREIGN DIRECT INVT Labour-driven INDUSTRIAL / IMPORT SUBSTITUTION Primary Commodities Labour-driven AGRICULTURE / PRIMARY COMMODITY 1996 1960 1970 1980 1995 2005 2020 harrysd@brawijaya.ac.id

41. Competitive, dynamic, robust & resilient • Fair & equitable distribution of wealth • Knowledge economy 2020 Civil Society • Value creation through knowledge products and industry Knowledge Society Knowledge Society Information Society Information Society • ICT as a sector • Information as commodity Information Society Now • Empowered citizens • Self-regulating • Self-controlled • Fostering creativity • Inclusive society • Strong families • Connectivity of networks • Equitable access to information • Culture of learning • Information literate • United • Developed & secure • Strong moral and ethical values • Democratic and liberal • Tolerant & Progressive NITA Vision Economic ICT as means Social harrysd@brawijaya.ac.id

42. K-economy Innovation for WEALTH CREATION Industry ICT as a SECTOR Malaysia’s ICT4D program for Innovating towards a K-nation Innovation for BALANCED SOCIETAL DEVELOPMENT Information & Communication Technology Society ICT as an ENABLER Innovation for GOOD GOVERNANCE Govern-ment K-society Strategic Framework For balanced development through innovation, the ‘ICT4D Framework’ shown, which draws on the principles highlighted thus far, can be used as a guide. harrysd@brawijaya.ac.id

43. 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 harrysd@brawijaya.ac.id

44. PILLARS OF ENTREPRENEURSHIP harrysd@brawijaya.ac.id

45. Any Questions? harrysd@brawijaya.ac.id