IE413 - Technopreneurship Introduction PDF

INTRODUCTION IE413 – Technopreneurship Engr Ernest Paul Y. Sison (Instructor)  Learning Objectives: 1. Define the concept of entrepreneurship and entrepreneur; 2. Understand the traits of an entrepreneur; 3. Differentiate the different types of entrepreneurs; 4. Comprehend the personal...

INTRODUCTION IE413 – Technopreneurship Engr Ernest Paul Y. Sison (Instructor)  Learning Objectives: 1. Define the concept of entrepreneurship and entrepreneur; 2. Understand the traits of an entrepreneur; 3. Differentiate the different types of entrepreneurs; 4. Comprehend the personality types of entrepreneurs; 5. Match your personality with the required personality of entrepreneur. ENTREPRENEURSHIP  Entrepreneur  It is a loanword from French, and is commonly used to describe an individual who organizes and operates a business or businesses, taking on financial risk to do so.  The term was first defined by the Irish-French economist Richard Cantillon as the person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise.  The term first appeared in the French Dictionary "Dictionnaire Universel de Commerce" of Jacques des Bruslons published in 1723. Entrepreneur “An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource.” - Peter Drucker, 1964 “Entrepreneurs take initiative, accept risk of failure and have an internal locus of control. - Albert Shapero, 1975 Entrepreneur “Entrepreneur is a person who started a new business where there was none before. - William B. Gartner, 1985 “Entrepreneurs use personal initiative, and engage in calculated risk taking, to create new business ventures by raising resources to apply innovative new ideas that solve problems, meet challenges, or satisfy the needs of a clearly defined market.” - Anonymous  Entrepreneurship “Entrepreneurship involves bringing about change to achieve some benefit. This benefit may be financial but it also involves the satisfaction of knowing you have changed something for the better.” (Entrepreneurship: Creating a Venture by Lily Kretchman et al. Toronto: Wiley, 1991.)” “"Entrepreneurship is essentially the act of creation requiring the ability to recognize an opportunity, shape a goal, and take advantage of a situation. Entrepreneurs plan, persuade, raise resources, and give birth to new ventures." (Entrepreneurship: The Spirit of Adventure by Richard Bodell et al. Toronto: Harcourt Brace Jovanovich,1991.) ENTREPRENEURIAL TRAITS  Confident  Confidence is a hallmark of the entrepreneur.  Not all of us are born with confidence, but that does not mean we are not capable of it.  Many confident women and men gain their sense of self esteem and faith in their ability to greet challenges by acting – even when they lack the confidence – and then gaining strength and belief in themselves by seeing the results and gaining the praise and respect of others.  Feels a Sense of Ownership  Taking responsibility for getting things done – and doing them with care and attention – means to act like an owner.  Rather than viewing a problem as someone else’s, the entrepreneur sees it as his or her own and takes pride in finding a solution, leaving things in better shape then they were before encountering them, and improving upon situations rather than leaving them unattended.  While a sense of ownership makes for a stellar employee, the entrepreneur knows that the goal is not to be owned by the enslavement of too much responsibility.  Rather than controlling situations in an attempt to possess them, the entrepreneur teaches other people how to take charge. In that way, the clever entrepreneur uses individual accountability in the ultimate pursuit of profitability, teamwork, and overall success.  Able to Communicate  Entrepreneurs recognize that the most important part of any business is the human element.  Human resources –whether in the form of clients, employees, or strategic partners – are what makes or breaks a business, and communication is the key to successful relationships with people.  The entrepreneur works to hone communication skills, whether those are written, spoken, or non- verbal messages conveyed through body language.  Able to Communicate (cont’d)  And to support communication, he or she will take advantage of all available tools and resources. Those might include foreign language or public speaking classes, computer and telecom technology, search engine optimization or neurolinguistic programming as it relates to sales and marketing, or specialized writing such as that needed for grants, business proposals, mission statements, or policy manuals.  The entrepreneur develops a keen ability to listen and hear what others are trying to say, because the best communicators got that way by first being the best listeners.  Passionate about Learning  Entrepreneurs are often “autodidactic” learners, which means that much of what they know they learned not in a formal classroom setting but instead on their own by seeking out information, asking questions, and doing personal reading and research.  They also are quick to learn from their own mistake, which means they are less prone to keep repeating them due to arrogance, ego, or blindness to one’s own faults, shortcomings, or errors in judgement.  To teach is to learn. And to lead, train, and impart experience to others the entrepreneur is constantly striving to learn more and get better educated.  Passionate about Learning (cont’d)  Because of the passion for education, true entrepreneurs surround themselves with people who either know more than they do or know things that are different from what they know.  They entertain the views of others and perspectives that may be unlike their own, for instance, in order to be better students of human nature.  In this way they continue to enrich themselves with knowledge while also making a concerted effort to grow that knowledge by sharing it with others who are also front row students of life’s valuable and unlimited lessons.  Team Player  Those who go into business for themselves but do not utilize teamwork wind up without the team but still have all the work to get done.  They shoulder the whole burden for themselves, and wind up just trading their old job for a new and more demanding one – in an attempt to be self-employed. But the new venture carries greater personal and financial risks.  Team Player  Team players know how to succeed by employing the physics of interpersonal synergy and dynamic relationships.  One twig can be easily snapped, but a bundle of those small twigs becomes stronger than the sum of its individual parts and can be impossible to bend, much less break.  The same goes for businesses, and successful entrepreneurs leverage teamwork to get the heavy lifting done without breaking stride.  System-Oriented  Like mathematical formulas, good systems allow us to reproduce great results every time – with less and less exertion of energy or resources.  Entrepreneurs rely upon systems before they rely upon people, and they look for system based solutions before searching for human resource solutions.  If the person gets the job done but falls sick or leaves, the job is threatened. But if a system is created to get the job done, anyone can step in and follow the blueprint to get the desired result. Similarly, when troubleshooting and problem solving, the entrepreneur will first examine and study the system – because a flaw in the system will produce a flawed outcome each and every time.  Designing, implementing, and perfecting systems is one of the most useful and rewarding skills of an entrepreneur.  Dedicated  Entrepreneurs dedicate themselves to the fulfillment of their plans, visions, and dreams, and that tenacity of purpose generates electricity throughout the whole organization. One of the biggest reasons that companies fail is because they lose focus (target a goal, clarify the objective, refine the brand, and narrow the margin of error).  Regardless of what the effort might involve, an entrepreneur brings a single- minded dedication to the task by being committed to a positive outcome and ready and willing to do the needful.  No matter what that might mean in terms of rising to meet a challenge or acting above and beyond the call of duty, the entrepreneur shows steadfast dedication.  Grateful  Being grateful for what we have opens us up to receive more, and one reason that is true is because those who are grateful appreciate what they are given. They respect it and nurture it. They do their best to make it grow instead of allowing it to dwindle away due to neglect.  Entrepreneurs learn to take nothing for granted in this world. That gives them the agility and flexibility to adapt to changes and demands, while it also invests in them a thankfulness that reminds them that riches and wealth are not about “stuff”, but are about fulfillment, satisfaction, and the pleasure that comes from one’s accomplishments and contributions.  Optimistic  A positive outlook is essential for the entrepreneur, who learns to see setbacks as bargain priced tuition for the valuable business lessons gained through firsthand experience.  Past shortcomings, failures, or disappointments are relegated to the past so that they cannot continue to haunt the present or obstruct the future.  And when things go right and business prospers, this further fuels the optimism and positive mindset of an entrepreneur, helping to give impetus and momentum for greater accomplishments and increased hopefulness.  Gregarious  Because business is all about people, entrepreneurs tend to be socially outgoing. They get excited about sharing ideas, products, and services, and that excitement is contagious to their employees, clients, friends, and other contacts both within and beyond the business sphere.  But women and men who work hard as entrepreneurs also relish the unique opportunity to have fun doing something that they love as their primary vocation.  Human resource experts, career counselors, and business psychologists all agree that those who do jobs they enjoy and are good at have higher rates of success and broader measures of satisfaction. Entrepreneurs know that firsthand, from their own experience, and they tend to be a fun-loving group of people both on and off the job.  A Leader by Example  Entrepreneurs not only lead themselves through self-motivation as self- starters who jump into tasks with enthusiasm, but they are also skilled at leading others.  They know the importance of teamwork, and they understand the need to appreciate others, support them, and reward them accordingly. True leaders do not become indispensable, otherwise things fall apart in their absence and they can never rise to the highest level of entrepreneurial freedom and prosperity.  Neither do they squander the potential of those working under their guidance.  A Leader by Example (cont’d)  As renowned business consultant and retired United States Air Force Major General Perry M. Smith once wrote, “Leaders who share their power and their time can accomplish extraordinary things. The best leaders understand that leadership is the liberation of talent; hence they gain power not only by constantly giving it away, but also by not grabbing it back.”  Not Afraid of Risk or Success  Many people could be successful if they only took chances. And many people who do take chances and become somewhat successful find the realization of their dreams an overwhelming possibility, so they sabotage their continued success by retreating back into a comfort zone of smallness.  The employee mindset is preoccupied with a need for security. Those who cling to what is familiar to them – even if it means the denial of their dreams – lack the perseverance and ambition that the real entrepreneur exhibits. Entrepreneurs are not immune to fear. But they prioritize their approach to life so that the fear of failure, frustration, boredom, drudgery, and dissatisfaction far outweighs the lingering fear of success.  Manage money wisely  The lifeblood of any business enterprise is cashflow. You need it to buy inventory, pay for services, promote and market your business, repair and replace tools and equipment, and pay yourself so that you can continue to work. Therefore, all home business owners must become wise money managers to ensure that the cash keeps flowing and the bills get paid. There are two aspects to wise money management.  The money you receive from clients in exchange for your goods and services you provide (income)  The money you spend on inventory, supplies, wages and other items required to keep your business operating. (expenses)  Able to Ask for the sale  A home business entrepreneur must always remember that marketing, advertising, or promotional activities are completely worthless, regardless of how clever, expensive, or perfectly targeted they are, unless one simple thing is accomplished--ask for the sale.  This is not to say that being a great salesperson, advertising copywriting whiz or a public relations specialist isn't a tremendous asset to your business.  However, all of these skills will be for naught if you do not actively ask people to buy what you are selling  Remember it's all about the customer  Business is not about the products or services that they sell or deliver.  Business is not about the prices that you charge for your goods and services.  Business is not about competition and how to beat them.  Business is all about customers, or clients, period.  After all, your customers are the people that will ultimately decide if your business goes boom or bust.  Remember it's all about the customer  Everything you do in business must be customer focused, including your policies, warranties, payment options, operating hours, presentations, advertising and promotional campaigns and website.  In addition, you must know who your customers are inside out and upside down  Project a positive business image  Entrepreneurs have but a passing moment to make a positive and memorable impression on people with whom they intend to do business.  Business owners must go out of their way and make a conscious effort to always project the most professional business image possible.  The majority of home business owners do not have the advantage of elaborate offices or elegant storefronts and showrooms to wow prospects and impress customers. Instead, they must rely on imagination, creativity and attention to the smallest detail when creating and maintaining a professional image for their home business.  Level the playing field with technology  Entrepreneurs should avoid getting overly caught up in the high-tech world, but they should also know how to take advantage of using it.  One of the most amazing aspects of the internet is that a one or two person business operating from a basement can have a superior website to a $50 million company, and nobody knows the difference.  Make sure you're keeping up with the high-tech world as it suits your needs. The best technology is that which helps you, not that which impresses your neighbors.  Become known as an expert  The more you become known for your expertise in your business, the more people will seek you out to tap into your expertise, creating more selling and referral opportunities.  In effect, becoming known as an expert is another style of prospecting for new business, just in reverse. Instead of finding new and qualified people to sell to, these people seek you out for your expertise.  Be accessible  We're living in a time when we all expect our fast food lunch at the drive- thru window to be ready in mere minutes, our dry cleaning to be ready for pick-up on the same day, our money to be available at the cash machine and our pizza delivered in 30 minutes or it’s free.  You must make it as easy as you can for people to do business with you, regardless of the home business you operate.  TYPES OF ENTREPRENEURS  The Improver  If you operate your business predominately in the improver mode, you are focused on using your company as a means to improve the world.  Your overarching motto is: morally correct companies will be rewarded working on a noble cause. Improvers have an unwavering ability to run their business with high integrity and ethics.  The Advisor  This business personality type will provide an extremely high level of assistance and advice to customers.  The advisor's motto is: the customer is right and we must do everything to please them.  Companies built by advisors become customer focused. Advisors can become totally focused on the needs of their business and customers that they may ignore their own needs and ultimately burn out.  The Superstar  Here the business is centered around the charisma and high energy of the Superstar CEO.  This personality often will cause you to build your business around your own personal brand. The people with this type of trait can be too competitive and workaholics.  The Visionary  A business built by a Visionary will often be based on the future vision and thoughts of the founder.  You will have a high degree of curiosity to understand the world around you and will set-up plans to avoid the landmines.  Visionaries can be too focused on the dream with little focus on reality. Action must precede vision.  The Analyst  If you run a business as an Analyst, your company is focus on fixing problems in a systematic way.  Often the basis for science, engineering or computer firms, Analyst companies excel at problem solving.  Be aware of analysis paralysis.  Work on trusting others.  The Fireball  A business owned and operated by a Fireball is full of life, energy and optimism.  Your company is life-energizing and makes customers feel the company has a get it done attitude in a fun playful manner.  The people with this type of trait may over commit to teams and act to impulsively and need balance impulsiveness with business planning  The Hero  You have an incredible will and ability to lead the world and your business through any challenge.  You are the essence of entrepreneurship and can assemble great companies.  These people are promising and using force full tactics to get way and will not work long term.  The Healer  If you are a Healer, you provide nurturing and harmony to your business. You have an uncanny ability to survive and persist with an inner calm.  Because of your caring, healing attitude toward your business, you may avoid outside realities and use wishful thinking ENTREPRENEURIAL SKILLS 1. Personal Characteristics  Do you have the mindset that's typical of successful entrepreneurs?  Optimism: You are an optimistic thinker Optimism is truly an asset, and it will help get you through the tough times that many entrepreneurs experience as they find a business model that works for them. 1. Personal Characteristics  Do you have the mindset that's typical of successful entrepreneurs?  Vision: You can easily see where things can be improved. You can quickly grasp the "big picture," and explain this to others. You can create a compelling vision of the future, and then inspire other people to engage with that vision. 1. Personal Characteristics  Do you have the mindset that's typical of successful entrepreneurs?  Initiative: You have initiative, and instinctively start problem-solving or business improvement projects.  Desire for Control: You enjoy being in charge and making decisions. You are motivated to lead others. 1. Personal Characteristics  Do you have the mindset that's typical of successful entrepreneurs?  Drive and Persistence: You are self-motivated and energetic. You are prepared to work hard, for a very long time, to realize your goals. 1. Personal Characteristics  Do you have the mindset that's typical of successful entrepreneurs?  Risk Tolerance: You are able to take risks, and make decisions when facts are uncertain.  Resilience: You are resilient and you can pick yourself up when things don't go as planned. You learn and grow from your mistakes and failures. 2. Interpersonal Skills  Leadership and Motivation: You can lead and motivate others to follow you and deliver your vision. You are able to delegate work to others. As a successful entrepreneur, you'll have to depend on others to get beyond a very early stage in your business – there's just too much to do all on your own! 2. Interpersonal Skills  Communication Skills: You are competent with all types of communication. You need to be able to communicate well to sell your vision of the future to investors, potential clients, team members, and more. 2. Interpersonal Skills  Listening: You hear what others are telling you. Your ability to listen can make or break you as an entrepreneur. Make sure that you’re skilled at active listening and empathetic listening. 2. Interpersonal Skills  Personal Relations: You are emotionally intelligent. The higher your EI, the easier it will be for you to work with others. The good news is that you can improve your emotional intelligence! 2. Interpersonal Skills  Negotiation: You are a good negotiator. Not only do you need to negotiate keen prices, you also need to be able to resolve differences between people in a positive, mutually beneficial way. 2. Interpersonal Skills  Ethics: You deal with people based on respect, integrity, fairness, and truthfulness. You can lead ethically. You'll find it hard to build a happy, committed team if you deal with people – staff, customers or suppliers – in a shabby way. 3. Critical and Creative Thinking Skills  Creative Thinking: You are able to see situations from a variety of perspectives and come up with original ideas.  Problem Solving: How good are you at coming up with sound solutions to the problems you're facing? Tools such as Cause & Effect Analysis, is just some of the problem- solving tool that you'll need to be familiar with. 3. Critical and Creative Thinking Skills  Recognizing Opportunities: You recognize opportunities when they present themselves. You can spot a trend. You able to create a plan to take advantage of the opportunities you identify. 4. Practical Skills  Goal Setting: You regularly set goals, create a plan to achieve them, and then carry out that plan.  Planning and Organizing: You have the talents, skills, and abilities necessary to achieve your goals. You can coordinate people to achieve these efficiently and effectively. You know how to develop a coherent, well thought-through business plan, including developing and learning from appropriate financial forecasts. 4. Practical Skills  Decision Making: You are good at making decisions. You base decisions on relevant information and by weighing the potential consequences. You are confident in the decisions that you make. Core decision-making tools include Decision Tree Analysis, Grid Analysis, and Six Thinking Hats 4. Practical Skills  Business Knowledge: You have a good general knowledge of the main functional areas of a business (sales, marketing, finance, and operations). You are able to operate or manage others in these areas with a reasonable degree of competence. 4. Practical Skills  Entrepreneurial Knowledge: You understand how entrepreneurs raise capital. You understand the sheer amount of experimentation and hard work that may be needed to find a business model that works for you. 4. Practical Skills  Opportunity-Specific Knowledge: You understand the market you're attempting to enter. You know what you need to do to bring your product or service to market.  Venture-Specific Knowledge: You know what you need to do to make this type of business successful. You understand the specifics of the business that you want to start.  Activity 1. Do you think you can be an entrepreneur? YOU MUST FOR THIS ACTIVITY. What will be your dream business? 2. Enlist the personality traits you can introspect in you and match these with the traits of entrepreneur discussed previously.