1. CGNB313 Technology Entrepreneurship
Chapter 1 :
Introduction to Technology Entrepreneur

2. Chapter 1 Outline The Entrepreneur’s Challenge The Entrepreneur
Economics and the Firm
Creative Destruction
Innovation and Technology
Summary

3. 1 Summary Introduction to Technology Entrepreneur
There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction.
John F. Kennedy
Summary
What drives global entrepreneurship?
The entrepreneur provides the creative force in order for capitalism (free enterprise) to work. Entrepreneurs strive to make a difference in our world and contribute to its betterment. They are also motivated by achievement, independence, and the accumulation of wealth.
Chapter 1: Summary
Technology Ventures: From Idea to Enterprise

4. 1 Introduction to Technology Entrepreneur
Entrepreneurs are people who identify and pursue solutions among problems, possibilities among
needs, and opportunities among challenges.
Chapter 1: Concept
Technology Ventures: From Idea to Enterprise

5. 1 Introduction to Technology Entrepreneur
For an entrepreneur, a challenge is a call to respond to a difficult task and the commitment to undertake the required enterprise.
Chapter 1: Concept
Technology Ventures: From Idea to Enterprise

6. 1 Introduction to Technology Entrepreneur
The Elements of Overcoming a Challenge
Able to deal with a series of tough issues
Ability to create solutions and work to perfect them
Can handle many tasks simultaneously
Resiliency in the face of set-backs
Willingness to work hard and not expect easy solutions
Possess well-developed problem solving skills
Able to learn and acquire the necessary skills for the tasks at hand
Chapter 1: Table 1.5
Technology Ventures: From Idea to Enterprise

7. 1 Introduction to Technology Entrepreneur
An opportunity is a favorable juncture of circumstances with a good chance for success or progress. It is the job of the entrepreneur to locate new ideas and to put them into action.
Thus, entrepreneurship may be described as the identification and exploitation of previously unexploited opportunities.
Chapter 1: Concept
Technology Ventures: From Idea to Enterprise

8. 1 Introduction to Technology Entrepreneur An Attractive
Opportunity
Finding the Right
Opportunity
Timely
Solvable
Important
Profitable
Favorable Context
The Sweet Spot
Like to do the tasks
Like the challenge
Committed to do what is necessary
Skilled at the needed tasks
Willingness to learn
Interests, Passions, Commitment
Capabilities & Skills
Chapter 1: Figure Finding the Right Opportunity
Technology Ventures: From Idea to Enterprise

9. 1 Introduction to Technology Entrepreneur EA = (Y+I) – (W+R)
Entrepreneurial Attractiveness (EA)
Y = income; I= independence; W = work effort; R = risk; O = Other working conditions
Scale 1-5 : 1 = low; 3 = medium; 5 = high
Y+I = benefits
W+R = costs
EA = (Y+I) – (W+R)
Chapter 1: Entrepreneurial Attractiveness, Page
Technology Ventures: From Idea to Enterprise

10. 1 Introduction to Technology Entrepreneur 2
Chapter 1: Table 1.8 – Example of New Opportunity Evaluation
Technology Ventures: From Idea to Enterprise

11. 1 Introduction to Technology Entrepreneur Entrepreneurial Capital
EC = Ecomp x Ecomm
► Ecomp = Entrepreneurial competence is the ability to: 1) to recognize and envision taking advantage of opportunity and 2) to access and manage the necessary resources to actually take advantage of the opportunity
► Ecomm = Entrepreneurial commitment is a dedication of the time and energy necessary to bring the enterprise to initiation and fruition.
Chapter 1: Entrepreneurial Capital
Technology Ventures: From Idea to Enterprise

12. 1 Introduction to Technology Entrepreneur
Economic Value = Opportunity x Entrepreneurial Capital
After T years the market value is:
MV = M x C x EV
= M x C x Ecomp x Ecomm
where:
M = management efficiency and effectiveness
C = context
Chapter 1: Economic Value
Technology Ventures: From Idea to Enterprise

13. 1 Introduction to Technology Entrepreneur
The intellectual capital of an organization is the talents of its people, the efficacy of its management systems, the effectiveness of its customer and supplier relations, and the technological knowledge employed and shared among its people and processes.
Chapter 1: concept
Technology Ventures: From Idea to Enterprise

14. 1 Introduction to Technology Entrepreneur Economy Natural Capital
Beneficial Outputs
Financial Capital
Undesired Waste Outputs
Intellectual Capital
Chapter 1: Figure 1.2 – A Model of the Economy
Technology Ventures: From Idea to Enterprise

15. 1 Introduction to Technology Entrepreneur Inputs The Firm Outputs
Raw Materials
Components & Modules
Products
&
Services
Financial Capital
Physical Assets
Technologies
Chapter 1: Figure 1.3 – Transforming available inputs into desired outputs
Technology Ventures: From Idea to Enterprise

16. The Firm’s Intellectual Capital
Introduction to Technology Entrepreneur 1
The Firm’s Intellectual Capital
Human Capital
Organizational Capital
Social Capital
A firm’s theory of its business is how it understands its total activities, resources and relationships.
Chapter 1: Figure 1.4 – Firm’s Intellectual Capital
Technology Ventures: From Idea to Enterprise

17. 1 Introduction to Technology Entrepreneur
Waves of innovation throughout history
Chapter 1: Figure 1.5
Technology Ventures: From Idea to Enterprise

18. 1 Introduction to Technology Entrepreneur
Dynamic Capitalism is the process of wealth creation characterized by the dynamics of new, creative firms forming and growing and old, large firms declining and failing.
Creative Destruction is the entrepreneurial activity of destroying old models and creating new models of doing business.
Chapter 1: Concept
Technology Ventures: From Idea to Enterprise

19. 1 Introduction to Technology Entrepreneur
Summary : The critical ideas of this chapter are as follows:
The entrepreneur as creator of a great enterprise
The entrepreneur responds to an attractive opportunity
A person can learn to be an entrepreneur
The entrepreneur knows how to use knowledge to create innovation and new firms
Positive entrepreneurship activity flows from a combination of entrepreneurial capital and intellectual capital that leads to productivity and prosperity
The entrepreneur uses an appropriate organisational structure to achieve his or her goals
Chapter 1: Summary
Technology Ventures: From Idea to Enterprise

20. 1 Introduction to Technology Entrepreneur
Principle 1 The entrepreneur develops an enterprise with the purpose of creating wealth and prosperity for all participants – investors, customers, suppliers, employees, and themselves – using a combination of intellectual and entrepreneurial capital.
Chapter 1: Principle 1
Technology Ventures: From Idea to Enterprise

21. “Entrepreneurial Skills Learned” Mark Zuckerberg (Facebook)
Introduction to Technology Entrepreneur 1
DVD Video
“Entrepreneurial Skills Learned”
Mark Zuckerberg (Facebook)
Description Zuckerberg talks about the entrepreneurial skills he acquired in college that led him to building Facebook.
Chapter 1: DVD Video
Technology Ventures: From Idea to Enterprise

22. 1 Introduction to Technology Entrepreneur Mark Zuckerberg, Facebook
Mark Zuckerberg is the founder of Facebook, a networking tool used by college students to meet people, reconnect with old friends and arrange events. The company just redesigned its Web site and received venture capital. Founded as Thefacebook in February 2004 by Mark Zuckerberg, Chris Hughes, and Dustin Moskovitz at Harvard, the website spread across campus and, within a few weeks, over half the undergraduate population had registered. The website then expanded to allow students from Columbia, Stanford, and then other Ivy League colleges to register. It became something of a network phenomenon, spreading rapidly to other schools, despite some competition from similar, local websites. Courtesy of and
Related Links:  
Last Updated: Fri, Oct 31, 2008
Chapter 1: Video – Mark Zuckerberg Biography
Technology Ventures: From Idea to Enterprise

23. “You Don’t Need to Drop Out of College” Jessica Mah, (inDinero)
Introduction to Technology Entrepreneur 1
DVD Video
“You Don’t Need to Drop Out of College”
Jessica Mah, (inDinero)
Description
As undergraduate students at the University of California Berkeley, Jessica Mah and a friend had an idea for a product that solved their problems managing business finances. Mah describes the value of finishing college, and some of the early customer insights gained while building the first iteration of the product
Chapter 1: DVD Video
Technology Ventures: From Idea to Enterprise

24. 1 Introduction to Technology Entrepreneur Jessica Mah, inDinero
As co-founder and chief of inDinero, Jessica drives the development of inDinero’s product strategy, software development, and design efforts. She and her partners built the core product over the Summer of 2009, and the company has since raised funding from investors such as Y Combinator. Mah was the founder and technical lead behind internshipIN.com, which helped match students with internships. She’s been programming since age 9, building businesses since age 12, and finished high school at age Mah holds degrees from Simon’s Rock the Early College, and from U.C. Berkeley, where she studied computer science and was president of the computer science undergraduate association. Mah has been mentioned in publications ranging from Inc. magazine to the Wall Street Journal, and has been featured on PBS to encourage students to pursue science and entrepreneurship.
Related Links:  
Last Updated: Wed, Oct 5, 2011
Chapter 1: Video - Jessica Mah Biography
Technology Ventures: From Idea to Enterprise

25. 1 DVD Video “Do What You Like to Get Where You Want”
Introduction to Technology Entrepreneur 1
DVD Video
“Do What You Like to Get Where You Want”
John Melo (Amyris)
“Technology Cycles Start with a Breakthrough Innovation”
Judy Estrin(JLabs)
John Melo, CEO of Amyris Biotechnologies, enjoyed building oscilloscopes, circuits and transistors - and yet he was a college dropout. In this clip, Melo comments on his non-linear career path and how his passion, personal interest, and sense of independence have propelled him from one episodic position to another. He states that he first looked for opportunities to do the things he loved to do, and then focused on the places he wanted to be.
Estrin declares that technology cycles have to start with a break-through innovation, something significantly disruptive. When it happens we don't know it is a break-through technology, she notes. In time, however, applications are built around this technology, she adds.
Chapter 1: DVD Video
Technology Ventures: From Idea to Enterprise

26. 1 Introduction to Technology Entrepreneur
Chapter Exercise (see page 23, Exercise 1.2)
Consider opportunities that have occurred to you over the past month and list them in a column
Then, describe your strong interests and passions and list them in a second column.
Finally, create a list of your capabilities in a third column.
Is there a natural match of opportunity, interests, and capabilities?
If so, does this opportunity appear to offer a good chance to build an enterprise?
What would you need to do to make this to build an enterprise business?
Opportunities
Interests & Passions
Capabilities
Chapter 1: Chapter Exercise
Technology Ventures: From Idea to Opportunity

27. 1 Introduction to Technology Entrepreneur VENTURE CHALLENGE
Select a high-potential opportunity that interests you and then use it for the venture challenge exercises at the end of each chapter. For example, you might consider one of these current trends in science and technology: mobile data applications, internet telephony, video podcasting, web services, nano-technology, clean technologies (including fuel cell, battery and solar), pandemic flu and biodefense treatments, and advancements in stem cell research.
1) Describe the opportunity that attracts you and why you think it is a new venture opportunity.
2) Describe the competencies and skills you and your team members possess.
3) What important stakeholders will you need, to be successful?
4) Describe the passion and commitment you have for the opportunity.
5) Is this a good opportunity for you?
Chapter 1: Venture Challenge
Technology Ventures: From Idea to Opportunity

28. Chapter 1 Complete