Module 1.2-Basics of Technopreneurship

Basics of  Technopreneurship MODULE 1.2

Roles of  Technopreneurship in job creation and in the National economy

ROLE PLAYING

Importance of  Technopreneurship • • •

Employment creation Local resources Decentralization and diversification of business • Promotion of technology • Capital formation • Promotion of an entrepreneurial culture

What is Technopreneurshi p?

Technopreneurship •Defined High tech ventures in ICT, electronics, internet, life sciences and biotech. • Service firms where technology is critical to their mission, such as: eBay, FEDEX, SMART money transfer, e-learning • Technopreneurship is entrepreneurship in the field of  technology.

Entrepreneur & Entrepreneurship Defined Entrepreneurs - people who enter

into new and pioneering ventures . - is whole-brained, meaning he/she uses both the left brain (logical) and right brain (creative).

Entrepreneurship – Starting up a new business Source: Federico Gonzalez, President PESO Inc.

Course Model - SEED Self Mastery

Development

Environment Mastery

of Business Plan Enterprise Mastery

Self- Mastery • Self-mastery passion comes from knowing yourself. •

Self-mastery brings passion. When you know yourself, you know what you want and do not want.

What is a self-mastered person? A self-mastered person • does not need high IQ • does need high EQ and AQ • is naturally a/an: performer – competitive and efficient epicure – sensual and cheery boss – takes charge and loves a good fight is whole-brained has a personal vision and knows

Environment Mastery Environment mastery is about generating business ideas and seeking opportunities out from his or her  environment through •

serendipity walks

•

crises

•

trends

•

etc.

What is an environmentmastered person? An environment-mastered person – understands the industry he/she is in – sees the opportunities, not the problems – is on top of the situation instead of  being under the situation – is the organization/industry innovator and strategist

Enterprise Mastery Enterprise Mastery is how to run a business This pertains to the knowledge of  the different enterprise discipl disciplines ines such as: Creating the Business Marketing Management Operations Management Financial Management

What is an enterprisemastered person? An enterprise-mastered person •

understands and integrates the functions of  management (marketing, human resource, operations, and finance) • understands and integrates the process of  management (planning, organizing, directing, and controlling) • leads and inspires rather than manage

Development of  Business Plan Development of a business plan covers: writing the business plan presenting and defending the business plan adding refinements to the presented business plan

4 Types of  Entrepreneurship 1. Incremental • Routine business, modest novelty Ex. (new coffee shop, new BPO)

2. Imitative • Imitation of venture, same busines model and template • Ex. new regional branch, franchised operations

1. Rent-seeking Business that utilizes standards, regulations and laws to share in value of enterprise Ex. Coca Cola Export 4. Innovative Business based on innovation Ex. new memory chip

Characteristics of an Characteristics Entrepreneur 1. 2. 3. 4. 5. 6. 7. 8.

Hard Working Self-Confident Builds for the Future Profit-Oriented Goal-Oriented Persistent Goal-Oriented Responds to feedback 

Characteristics of  Characteristics Technopreneurship cont. 9. Demonstrates Initiative 10. Willing to Listen 11. Sets Own Standards 12. Copes with Uncertainty 13. Committed 14. Builds on Strengths 15. Reliable and Has Integrity 16. Risk-Taker

 e  h  t    s s  i  t  W h a  r e n c e    e e    f f    f f  i  n  d  a  n  e  e  w  r  t  u  e  e  b  n  e  r  p  e  r  t  n  e  a  d  n  a  d    e e  i  r  a  s a l a  ?  e  e  y    o o  l  p  e m

What makes an Entrepreneur a Technopreneur • A technology idea owner who ventures to make his idea a commercial commerc ial reality • An entrepreneur who gets a technology idea, finds an opportunity to make it a commercial commerc ial reality.

Differences between Technopreneurship and Entrepreneurship Lets have a MATCHING GAME!!! TECHNOPRENEUR

ENTREPRENEUR ENTREPRENEU R

Some Technology Ventures LOCAL • SMART LINK – (Computer shop) Dealing with computer hardware and software, Repairs, Networking and Computer ad LCD Rentals. (OCW) • LANE SYSTEM – Software

NATIONAL •NETOPIA – Internet Café • YEHEY.COM – Internet Portal

INTERNATIONAL • YOUTUBE - a video sharing website

Some Basic Facts Businesses start from ideas, but ideas alone do not make a business Customers do not buy ideas, they buy products/services; Customers pay the price; value is what they get

Source: Federico C. Gonzalez, President PESO Inc.

Some Basic Facts cont. A marketable product may not result in a viable business A studied approach to planning the business is needed. Entrepreneurship is calculated risktaking, not foolhardiness. Source: Federico C. Gonzalez, President PESO Inc.

Technopreneurshi p Ecosystem MODULE 2

Warm Up Activity Get 1 sheet of paper!

•  Think of an task that each of you (or group) would like to conduct or do (i.e. Cooking viand, repairing your PC, constructing a “bahay kubo”, etc) and write it in a paper

•  Then, list down what you need to accomplish the task.

• Present your identified task and requirements (1-2 minutes per

Introduction • Many of the tasks, if not all, have pre-requisites (i.e. money, pre-requisites materials, personnel, etc) t echnopreneurial • Similarly, for technopreneurial venture to start, grow and succeed, it must also have the required resources, environment and support.

But, what are these things?

Learning Objectives At the end of this session/lecture, the students should be able to –

• Enumerate the different actors/ players for the technology ventures to prosper, and

• define the roles of the different actors/players in techno ventures

Successful technopreneurship = H

E

L

F

Technopreneurship Ecosystem Human

Laws &

Resourc es

Policies

Techno Ventures

Environ ment

Financia l Resource s

Technopreneurship Ecosystem Human Resources Component

• Research - Thinker, Idea generator, Innovator

• Developer - Implementor, technical people

• Scanner and marketing people • Financers

Technopreneurship Ecosystem Environment Component

• Science parks, Incubation centers • Academic Institutions, R & D Centers

• Internet access, Communication • Communication and Other Support Services a ccessibility ity • Geographic accessibil

Technopreneurship Ecosystem

Laws and Policies

• Intellectual Property Rights Office •  Technology Licensing Office – facilitates commercialization of  inventions

• Legal Services

Technopreneurship Ecosystem Financial Component

• VC and Investors • Business Sector • Funding Agencies • Financial Services (i. e. Accounting)

Financial Resources

Environment

VC, Investors, Business Sector, Funding Agencies

Science Parks, Incubation Centers, Infrastructure, Comm and other Support Services

Technology Venture Human Resources Academe, R & D Centers, technical personnel

Laws and Policies Technology Licensing Office, IPR Office

Academe and Research Institutions 1. Ateneo de Davao University 2. Brokenshire College 3. Cor Jesu College 4. Davao Doctors College 5. Holy Child School of Davao 6. Jose 6.  Jose Maria College 7. St. Mary’s College 8. Interface Computer College 9. University of Immaculate Concepcion 10.University 10.University of Mindanao 11.University 11.University of the Philippines Mindanao

Environment Department of Science and  Technology Commission Commissi on on Higher Education PESO Davao City Chambers of  Commerce and Industry Science and Technology Park, Bago Oshiro, Tugbok, Davao City Brokenshire Learning Center

Academe (Colleges & Universities)

DOST, DCCI, PAHRDF

Funding Agencies Industries, Businesses, LGUs, Private Sectors

Incubation Centers & Science Parks

Framework of Engagement or Collaboration

Why Technopreneurship? (Media File)

Philippine Economy •Population 84 M •Population of working age? –Approx 50% of popn = 16 years old and below •Employment •GNP from large companies > 100 employees •GNP from small companies, < 100 •Number of large companies 5%? •95% are small companies?

Economy, Exports ?? Philippine 84M s  Thailand 60M Malaysia

24M

$40B $65B $90B

Singapore 4M

$120B

HK 

7M

$120B

22M

$

65M

$15B

 Taiwan Vietnam

Electronics, traditional goods  Tourism, food/cars, electronics

How?

Start the Ball Rolling •Innovation –Person gets an idea, active search, by chance, present employment or experience • Triggering Event –Career prospects –Deliberate choice •Implementation •Growth

Common Components • Three crucial components for business: – Excellent market opportunity – Superb entrepreneur (and management team) – Resources needed to start the company and make it grow Source: M.Barcelon, UPATBI

1. Excellent market opportunity Customer Need – “Can you give me the names of  prospective customers?” – If you cannot give any names, you only have an idea, not a market. – Would-be entrepreneurs entrepreneurs who are unable to name customers are not ready to start a business. They have only found an idea and have

1. Excellent market opportunity Timing –Will the idea or window of  opportunity look brief, it could just be a fad? –If the window is brief, the entrepreneurr will rush to entrepreneu t o open the business, usually with inadequate planning. –Can lead to costly mistakes. Source: M.Barcelon, UPATBI

2. The Technopreneur and the Management Team •Even with the right opportunity, the business will be successful if led by a person with strong entrepreneurial and management skills. – Entrepreneurs should have experience in the same industry or a similar one. Cannot go on OJT at the same time. – Ideal entrepreneur is one who has been a successful entrepreneur in the same industry – Have management experience, preferably with responsibility for budgets, profit and loss, sales. Source: M.Barcelon, UPATBI

3. Resources •Entrepreneural frugality means: –Low overhead –High productivity –Minimal ownership of capital assets

Source: M.Barcelon, UPATBI

Source s of  seed capital

Personal savings

78.5%

Bank loans

14.4

Family

12.9

Employees/partners 12.4 Friends Venture Capital

9 6.3

Mortgaged property 4.0 Gov’t guaranteed loan

Other

1.1 3.3

Source: M.Barcelon, UPATBI

The 9 Fs • Founders – first class entrepreneur • Focused – focus on niche markets, specialize • Fast – decision making, implementation

• Flexible – open mind, respond to change • Forever innovating • Flat - organizations • Frugal – low overhead, productivity high • Friendly – to their customers, suppliers, workers • Fun – to be associated with an

Thank you!

(c) 2006 UP Ayala TBI