GE ELEC 2

Chapter 1: Introduction to Technopreneurship invest heavily in new systems and processes,

which could drastically affect the bottom line
Concepts of Entrepreneurship
Market Risk
“Entrepreneurship is the pursuit of opportunity beyond
- Many factors can affect the market for a product
resources controlled.” - Howard Stevenson
or service. The ups and downs of the economy
Entrepreneurship and new market trends pose a risk to new
businesses, and a certain product might be
• The process of designing, launching and running
popular one year but not the next.
a new business, which is often initially a small
- For example, if the economy slumps, people are
business, or as the "capacity and willingness to
less inclined to buy luxury products or
develop, organize and manage a business
nonessentials.
venture along with any of its risks to make a
- If a competitor launches a similar product at a
profit."
lower price, the competitor might steal market
• Economists have never had a consistent
share.
definition of "entrepreneur" or
- Entrepreneurs should perform a market analysis
"entrepreneurship" (the word "entrepreneur"
that assesses market factors, the demand for a
comes from the French verb entreprendre,
product or service, and customer behavior.
meaning "to undertake"). Though the concept of
an entrepreneur existed and was known for Competitive Risk
centuries, the theorists left entrepreneurs out of
- An entrepreneur should always be aware of its
their formal models: They assumed that perfect
competitors. If there are no competitors at all,
information would be known to fully rational
this could indicate that there is no demand for a
actors, leaving no room for risk-taking or
product. If there are a few larger competitors,
discovery.
the market might be saturated, or the company
Risk and Rewards
might struggle to compete.
Financial Risk - Additionally, entrepreneurs with new ideas and
innovations should protect intellectual property
- An entrepreneur will need funds to launch a
by seeking patents to protect themselves from
business either in the form of loans from
competitors.
investors, their own savings, or funds from
family. Reputational Risk
- The founder will have to put their own "skin in
- A business's reputation is everything, and this
the game."
can be particularly so when a new business is
- Any new business should have a financial plan
launched, and customers have preconceived
within the overall business plan showing income
expectations. If a new company disappoints
projections, how much cash will be required to
consumers in the initial stages, it may never gain
break-even, and the expected return for
traction.
investors in the first five- year timeframe.
- Social media plays a huge role in business
- Failure to accurately plan could mean that the
reputation and word-of-mouth marketing. One
entrepreneur risks bankruptcy, and investors get
tweet or negative posting from a disgruntled
nothing.
customer can mean huge losses in revenue.
Strategic Risk - Reputational risk can be managed with a
strategy that communicates product information
- An impressive business plan will appeal to
and builds relationships with consumers and
investors. However, we live in a dynamic and
other stakeholders.
fast-paced world where strategies can become
outdated quickly. Environmental, Political, and Economic Risk
- Changes in the market or the business
- Some things cannot be controlled by a good
environment can mean that a chosen strategy is
business plan or the right insurance.
the wrong one, and a company might struggle to
- Earthquakes, tornadoes, hurricanes, wars, and
reach its benchmarks and key performance
recessions are all risks that companies and new
indicators (KPIs).
entrepreneurs may face.
Technology Risk
- There may be a strong market for a product in an
- New technologies are constantly emerging, under-developed country, but these countries
particularly in the era of the Fourth Industrial can be unstable and unsafe, or logistics, tax rates,
Revolution. Some of these changes are or tariffs might make trade difficult depending on
characterized as "paradigm shifts" or the political climate at any point in time.
"disruptive" technologies.
- To be competitive, a new company may have to
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- Also, some business sectors have historically high 3. Scalable Start Up Entrepreneurship
failure rates, and entrepreneurs in these sectors - This kind of entrepreneurship is when
may find it difficult to find investors. entrepreneurs believe that their company can
- These sectors include food service, retail, and change the world.
consulting. - They often receive funding from venture
capitalists and hire specialized employees.
The rewards of entrepreneurship
- Scalable startups look for things that are missing
1. Job Satisfaction in the market and create solutions for them.
- Many entrepreneurs start businesses because - Many of these types of businesses start in Silicon
they have a passion for it. Striving for success Valley and are technology focused.
means prolonging the life of the business and - They seek rapid expansion and big profit returns.
staying in touch with your passion long term. - Examples of scalable startups are Facebook,
- This sense of personal satisfaction is what drives Instagram and Uber.
many entrepreneurs. 4. Social Entrepreneurship
2. Higher Wages - An entrepreneur who wants to solve social
- Although a third of all business fail in the first two problems with their products and services is in
years, according to the Small Business this category of entrepreneurship.
Administration, business owners who are still in - Their main goal is to make the world a better
business are financially better off than place. They don't work to make big profits or
employees. wealth.
- According to a 2004 Gallup survey, only 52 - Instead, these kinds of entrepreneurs tend to
percent of small business owners say they earn start nonprofits or companies that dedicate
more by hour than they would if they were themselves to working toward social good.
employed by a company in their industry. 5. Innovative Entrepreneurship
- However, 70 percent said they were doing better - Innovative entrepreneurs are constantly coming
financially as their own bosses than working for up with new ideas and inventions.
someone else. - They take these ideas and turn them into
3. Greater Control business ventures.
- Being your own boss or not having a boss is - They often aim to change the way people live for
probably the greatest advantage of having your the better.
own business. It provides you with more control - Innovators tend to be very motivated and
over your life. passionate people. They look for ways to make
- The profits you generate from your work benefit their products and services stand out from other
you, not someone else. You don't have to ask for things on the market.
time off, you decide when to have a vacation, - People like Steve Jobs and Bill Gates are
how many hours to work and you can choose to examples of innovative entrepreneurs.
do work you enjoy and find fulfilling. 6. Hustler Entrepreneurship
- Being you own boss is also exciting; although it - People who are willing to work hard and put in
has special challenges, no day is the same and constant effort are considered hustler
you have more flexibility, and you will never stop entrepreneurs. They often start small and work
learning. toward growing a bigger business with hard work
rather than capital.
Types of Entrepreneurships
- Their aspirations are what motivates them, and
1. Small Business Entrepreneurship they are willing to do what it takes to achieve
- Small business entrepreneurship is often when a their goals.
person owns and runs their own business. They - They do not give up easily and are willing to
typically hire local employees and family experience challenges to get what they want.
members. - For example, someone who is a hustler is willing
- Local grocery stores, hairdressers, small to cold call many people in order to make one
boutiques, consultants, and plumbers are a part sale.
of this category of entrepreneurship. 7. Imitator Entrepreneurship
2. Large Company Entrepreneurship - Imitators are entrepreneurs who use others'
- Large company entrepreneurship is when a business ideas as inspiration but work to improve
company has a finite amount of life cycles. This them. They look to make certain products and
type of entrepreneurship is for an advanced services better and more profitable.
professional who knows how to sustain - An imitator is a combination between an
innovation. innovator and a hustler. They are willing to think
- Companies such as Microsoft, Google and Disney of new ideas and work hard, yet they start by
are examples of this kind of entrepreneurship. copying others.
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- People who are imitators have a lot of self- The Philippines and Technology
confidence and determination. They can learn
- SMALL and medium enterprises (SMEs) serve as
from others' mistakes when making their own
the driving force of a country’s economic growth.
business.
This is mainly because they make up a large part
8. Research Entrepreneurship
of the business landscape in certain countries,
- Researchers take their time when starting their
especially in Asia.
own business. They want to do as much research
- In the Philippines, there are 4,769 large
as possible before offering a product or service.
enterprises, 106,175 small enterprises, 4,895
- They believe that with the right preparation and
medium enterprises and a whopping 887,272
information, they have a higher chance of being
units of micro business establishments.
successful.
- SMEs alone have managed to create over 2.5
- A researcher makes sure they understand every
million jobs in the country, further signifying the
aspect of their business and have an in-depth
vitality of these establishments to the country’s
understanding of what they are doing.
development.
- They tend to rely on facts, data, and logic rather
- Due to the fact that they greatly influence the
than their intuition.
country’s income rate and development, they
- Detailed business plans are important to them
must be able to constantly meet the global
and minimize their chances of failure.
industrial demands, evolve alongside the new
9. Buyer Entrepreneurship
globalization standards and catch up with the
- A buyer is a type of entrepreneur who uses their
digital world.
wealth to fuel their business ventures. Their
- The wave of digital disruption has hit the
specialty is to use their fortunes to buy
Philippines’ SMEs, so business leaders must
businesses that they think will be successful.
respond proactively by embracing technology
They identify promising businesses and look to
solutions and be more digitally enabled.
acquire them.
- As the country gains new digital capabilities and
- Then, they make any management or structural
advances its technology development, it is
changes they feel are necessary. Their goal is to
imperative that SMEs go digital.
grow the businesses they acquire and expand
- New and emerging technologies can be a threat
their profits. This kind of entrepreneurship is less
to businesses that fail to innovate and keep up
risky because they are purchasing already well-
with the latest advancements.
established companies.
- Capabilities like digital payment systems are core
Philippine Business Landscape Number of to SMEs as they are increasingly sought after and
Establishments help stay relevant in an ever-evolving
marketplace.
The 2018 List of Establishments of the Philippine
- The transformation is necessary not only to
Statistics Authority (PSA) recorded a total of 1,003,111
secure greater revenues, but also to increase
business enterprises operating in the country.
operational efficiency, boost data-reliance,
improve marketing, and enhance research and
MSMEs 99.52% development.
Large Enterprises 0.48%
Technopreneurship
Micro Enterprises 88.45%
Small Enterprises 10.58% As it is hinted by the term, it is a blend of two words such
Medium Enterprises 0.49% as “technology” and “Entrepreneurship”.

- Thoroughly, it is a kind of entrepreneurship in the

Sectoral Contributions field of technology. The process of
The top five (5) industry sectors according to the technopreneurship is a combination of
number of MSMEs in 2018 were: technological advancements and
1. Wholesale and Retail Trade; Repair of Motor entrepreneurial skills. In the products and
Vehicles and Motorcycles (461,765) services transformation, an integral part of
2. Accommodation and Food Service Activities technopreneur is technology.
(144,535) - This is a new breed in the field of
3. Manufacturing (116,335) entrepreneurship. These types of
4. Other Service Activities (66,162) entrepreneurship are suitable for a person who is
5. Financial and Insurance Activities (46,033). intelligent, innovative, tech-savvy, appetite, and
These industries accounted for about 83.62% of the passionate in the calculation of risk.
total number of MSME establishments. - Technopreneurship gets to the next level of
success through teamwork.

Importance of Technopreneurship
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- Needless to say, technopreneurship has played - Selling digital information is the lowest entry
an influential role in the use of technology for barrier for any cyberpreneurs. Because of that
fulfilling various purposes. First off, it makes easy also, it is highly competitive. It is all about
for people to stay in touch with each other and producing content that can solve people’s
comes up with some unpredictable products as problem and package it in a way that enables
well as solutions that are beneficial for the people to pay you back for that information that
nation. was provided.
- Apart from this, it has also provided some other - The package that encapsulates the digital
benefits to society and the nation that information can be in the form of blogs, vlogs, e-
contributes to economic and human books, digital training course, videos and
development. Here, we are going to discuss the podcast.
significance of Technopreneurship for a nation
- Cyberpreneurs can leverage other existing
and the world too.
platforms for the distribution of their digital
Creating Employment Opportunities products or create their platform. For example,
if you designed a digital training course, you
When startup businesses, then there is an increase in the
could choose to host it on your website or host
pool of job opportunities as they need manpower to run
it on an existing platform such as Udemy.
all business operations. In the same way,
technopreneurship creates jobs and helps the nation to
Cyberpreneur: Selling Physical Products
combat the problem of unemployment. It increases the
“Entrepreneur that creates or sources physical products
employment rate of an economy.
and sell it on the internet and e-commerce online
Local Resources platforms.”
- Cyberpreneurs can also sell physical products
Various natural and productive resources are available
similar to traditional brick-and-mortar
that every entrepreneur can utilize for business success.
entrepreneurs. However, the advantage of being
The usage of local resources increases its value and
a cyberpreneur is that your target market can
reduces the rate of resource wastage.
range from local to the global demand. You can
Business diversification and decentralization be located in southeast Asia but having
customers in Europe or united states and vice
An entrepreneur can find out the business opportunities
versa.
and locate them in areas that are suitable including
- The best thing also, you can choose many
remote areas.
different options for selling physical products. If
Technological advancement you do not want to do the manual labor work of
shipping your product, you can choose to either
By being a creative and innovative technopreneur, they
dropship or use fulfilment centers.
play an important role in the field of utilization as well as
the development of technology.
Cyberpreneur: Selling Sponsorship
Cyberpreneur
“Entrepreneur that creates loyal followers or community
“Entrepreneur that utilize the digital world to start, and gives endorsement of a product or service in
promote, scale, or further develop and innovate their exchange of sponsorship.”
businesses, services, and branding in order to create and
sustain wealth.” - Another advantage that a good cyberpreneur
“Entrepreneur that sells digital information via internet can create and sustain a thriving online
platforms.” community around your personal or business
brand. This can in the form of social media
Areas of Cyberpreneur influencer, Facebook page or YouTube channel
• Digital Information that has a considerable following.
• Sponsorship
• Consultancy and Services - By having these large followers, Cyberpreneurs
can receive sponsorship from companies that
• Brand Builder
want to promote their brand, products or
• Physical Products
services to the Cyberpreneurs large followings.
Cyberpreneur: Selling Digital Information
Selling consultancy and Services
“Entrepreneur that sells digital information via internet
- Entrepreneurs who have specific skills and
platforms.”
knowledge and offers it to customers via online
Selling Digital Information Products can also be defined as Cyberpreneurs. With the
advent of the freelance platform with existing
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market, Cyberpreneurs nowadays do not need Types of high technology industries
to open their platform to market their skills. The high-tech industry broadly covers enterprises that
- They can immediately find freelance jobs in the are knowledge-intensive and technology-intensive.
existing platform such as Fiverr, Upwork and These enterprises engage in R&D, production and sales
Guru. of one or more high technologies, that would in turn
- Here they can offer their services to a vast online account for more than 60% of their annual gross
community who will be needing their services. revenue.
Example of services that can be offer range to They are:
many areas such as graphic design, website a) electronic information technology;
building to data entry. The better you become at b) aerospace and aeronautical technology;
offering at services, the more potential revenue c) biological engineering and new medical
you can earn. The better you become one trade technology;
of skill, the more premium you can charge as you d) new materials and applied technology;
have that specialised skill which you can offer as e) new energy and high-efficient energy
a consultancy to people as your customers. conservation technology;
Cyberpreneur: Selling Brands f) new environmental technology;
“Cyberpreneurs create, build and scale their brand from g) ocean engineering;
scratch to a brand that has added value. Cyberpreneurs h) advanced manufacturing technology;
can then sell their brand platform to investors or new i) nuclear application technology;
owner.” j) modern agricultural technology; and
- Being an online entrepreneur, you will have the k) other new process or new technology applicable
ability to build brands and promote them across in the traditional industries.
various digital platforms and social media. With
the emerging digital business nowadays, TECHNOPRENEURSHIP
Cyberpreneurs will also have the option of
exiting their digital business by selling the brand Entrepreneurship - An entrepreneur is someone who
that they built over time. There are many builds and manages a business. They are usually
platforms nowadays which offer to buy and sell concerned with financial risks
websites such as Empire Flippers and Flippa. Technopreneurship - A technopreneur is someone who
- Cyberpreneurs who develop their business via a builds and manages a technology-based businesses.
website also build their business branding over They focus on innovative ideas and turn them to
time. Once a cyberpreneur have developed loyal entrepreneurial activity.
followers of their brand, that brand itself will Technopreneurship - Technopreneurship is not a
have a value in which other businessman or commodity that can be easily traded but it’s a
corporate body may want to utilise and tap into. composition of a group of skills, scientific expertise and
This is where the building and selling website has intelligence possessed by an individual or a number of
flourished. individuals which represents the first building blocks of
- the digital society, smart cities and space technology.”
High Technology Industry
Industry 4.0 Industry 4.0
Industrial Revolution – transforming industries to
High Technology Industry innovation.
The definition of high technology industry is based on • Industry 1.0 (1784) – mechanization, steam
five factors: power, weaving bloom.
1. Intensity of science,engineering, and technician • Industry 2.0 (1870) – mass production, assembly
occupations. line, electrical energy.
2. Research and development (R&D) employment. • Industry 3.0 (1969) – automation, computers
3. Production of high- technology products. and electronic.
4. Use of high-technology production methods. • Industry 4.0 (Today/AI) – cyber physical
5. The relationship between high-technology systems, internet of things (IoT), networks
industries and productivity growth.
From Longman Business Dictionary ˈhigh-tech ˌindustry Industry Revolution and Society 5.0
(also hi-tech industry) [countable] an industry using or • 1.0 Mechanisation (1780) – the introduction of
involving advanced methods and the most modern industrial production equipment driven by water
equipmentsuch important high-tech industries as and steam power.
chemicals, drugs and aircraft. • 2.0 Electrification (1870) – mass production
using electrical energy and assembly lines.
• 3.0 Automation (1970) – automated production
due to the rise of electronics,
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telecommunications and computers. Maven/Hacker
• 4.0 Digitalisation (2011) – the use of cyber - Reduce technical risk Liaison to Know-How
physical systems on connected devices Product specs.
automates processes further. - Development timeline OpMan requirements IP
• 5.0 Personalisation (2020) – the Management
interdependence of man and machine using Scrum Master
cognitive computing and human intelligence.
- Reduce implementation risk.
Mass customization and personalization for
- Training materials.
humans.
- Sprint plan Track progress Internal comms.
Innovation
The process of making changes, large or small, radical Designer
and incremental, to products, processes, and services
- For aesthetics User experience (UsX) Visual
that results in the introduction of something new for the
interface design.
organization that adds value to customers and
- Industrial design Branding
contributes to the knowledge store of the organization.
Innovation - Connecting solutions to problems by
Importance of Innovation identifying an innovation opportunity that matches
• Fosters innovation industry need with technology capability.
• Economic growth
Customers:
• Technological advancement
- User, Influencers, Recommenders, Economic
Ecosystem Buyers, Decision Makers, and Saboteur.
It is the environment in which a technopreneurship
operates.

Components of Ecosystem
• Government
• Industry partnership
• Academic and research institution
• Investors and venture capitalist
Challenges
• Risk management
• Market uncertainty
• Scaling up
Mindset
• Believing in yourself
• Thirst for learning
• Connectioneering
• Resilience
• Dreaming deep
Opportunities
• Emerging technologies
• Global market

Stimulating Innovation Through Collaboration

The Cat
To start, be a copycat:
- Nothing is purely original. Everything is based on
something existing.
The Pig
- Build upon existing trends, technologies and
even companies.
The Frog
- Pushing boundaries of what is known, possible
and even allowed.
The Team Connector/Salesman
- Reduce customer risk.
- Reduce market risk Liaison to Know-Who
Customer problem Customer ROI
- One-day validation Sales protection.