Description
Environment for Entrepreneurship
Environment for Entrepreneurship
1
Business environment analysis
• Scanning: to detect change
• Monitoring: to track evolution, development and sequence of critical events
• Forecasting: to develop plausible projections about future • Assessing: interpretation of all the information collected through above processes
– Helps in development of „entrepreneurial insight?
2
Environment
Macro Environment
Demographic
Industry Environment New Venture
Economic
Political Legal
Social Technological International
3
Political/Legal Environment
• International Aspects
– Trade barriers/ tariffs – Trade agreements – Political risk
• National Aspects
– – – – – – – – Taxation IPR norms Regulations Public sector Taxation Licensing Incentives/subsidies Regulations
4
• Regional/Local Aspects
Economic Environment
• Structural change
– – – – – Financial market Infrastructure Income level Consumption pattern Growth rate
Learning: which industry is growing/maturing/fading
• Cyclical change
– Expansion – Stagnation – recession
Learning: Whether industry procyclical /countercyclical /acyclical
5
Technological environment
• Product invention: leadership advantage
– New product – Modification/additions/value additions
• Process innovation: incremental and evolutionary
– Increase in efficiency/productivity/quality – Spin-offs possible
6
Social environment
• • • • • • Social values/trends Culture Lifestyle Education Employment Demographics
7
Porter?s Model of Industry Analysis
Potential Entrants
Threat of increased competition Threat of increased Bargaining power of suppliers
Suppliers
Firm+ Competitors
Buyers
Threat of increased Bargaining power of buyers
Other Stakeholders
Threat of increased competition
Substitutes
8
Industry Evolution
• Introduction
– price and quality less important – Uniqueness more important
• Growth
– New companies enter – Reduction in price, emphasis on quality
• Maturity
– Tends to become more like commodity – Information plays significant role – Price deciding factor
• Decline
– Either exit or convert assets to other uses
Learning: Industry life cycle stages determine the ease / difficulty of entry
9
Entrepreneurial opportunities
• Unexpected events create opportunities • When traditional wisdom and reality collide • Technological breakthroughs/need for the same • Market structure • Industry life cycle stage • Demographics
10
Entrepreneurship Development
11
Some Facts
Conversion of Research outcomes into successful commercialization
• • • • • US$200 billion of funded research 100,000 disclosures 50,000 patents filed 25,000 licensed 2,500 start-ups – major successes : 250 – average performers : 750 – fast/slow failures : 1500 Reference : Berneman in “Best Practice Processes for University Research Commercialization”, Australian Centre for Innovation, Howard Partners, Carisgold,2002.
1/23/2013 12 12
Key elements of technology management
• • • • • • Technology Planning Technology Forecasting Technology Development Technology Transfer And Absorption Technology Evaluation And Assessment Technology Diffusion
13
Technical entrepreneurship (Technopreneur)
• In a fast changing technological environment, wherein the product life cycle is shrinking, the role of technical entrepreneurship has assumed a central place. • Contributes to industrial development through innovations, new product/process development and improvements in productivity, production processes and systems. • Innovation requires innovators with some kind of technical skills. • Technicians and technocrats can play the role of innovators with comparative ease because they have characteristics such as a propensity to adopt new knowledge and technology more rapidly. • Technologists and technicians, who learn sufficient science and engineering, acquire the capability to know the why and how of various theories and can design products and services based on their knowledge and skill competencies.
14
Technical entrepreneurship
Favourable factors to technopreneureship: • With the acquired knowledge through education or experience or both, technical people can work out the economics of production and service outputs and can evolve competitive and cost effective strategies • They can give a fillip to ancillarisation, thus helping create better linkage between large and small enterprises • Their technical and analytical capability will help in preventing problems, thus reducing expenditure on troubleshooting • They can forecast changes in technology and can adapt to changing environments easily • They can contribute to self-propelled performance rather than push propelled developments • They can effectively transfer technology from laboratories to industries, based on research and development • Engineers, through entrepreneurship, can bring about a technical revolution that can meet the challenges of the emerging scenario of globalisation and liberalisation with the key element of competition rather than protection in a country like India.
15
Technical entrepreneurship
Constraints
• Technical entrepreneurs lack managerial skills leading to a high rate of failure at the start-up stage. • Technical entrepreneurship has to be nurtured, by developing institutional mechanisms that promote the technology trade between small industries. • Academic professionals have to widen their concept about entrepreneurship education and promotion, which should be relevant to the changing scenario. • The necessity of developing creativity in students has been verified by many teachers, particularly on design courses. • As shown by Karune, in the modern world the methodology of creative thinking alone cannot turn an engineer into an entrepreneur. He has to have the necessary insight into the basic laws and command over the various sources of knowledge to become resourceful.
16
Entrepreneurship Development in India
• • • • • • • • • EDP – Entrepreneurship Development Programme EDC – Entrepreneurship Development Cell EAC – Entrepreneurship Awareness Camp STST - Skill Training through Science & Technology STEP – Science and Technology Entrepreneurs Park OLPE – Open Learning Programme in Entrepreneurship STEDS – Science and Technology Entrepreneurship Development Scheme FDP – Faculty Development Programme TEDP – Technology-based Entrepreneurship Development Programme
1/23/2013
17 17
Support System Organizations
• • • • • • • • • • • National Science and Technology Entrepreneurship Development Board, Dept. of Science & Technology, GOI Entrepreneurship Development Institute of India, Ahmedabad Centre for Entrepreneurship Development – various states Indian Institute of Entrepreneurship, Gowahati Small Industries Development Bank of India National Small Industries Corporation Development commissioner, MSME, GOI Technical consultancy organizations Science and Technology Entrepreneurs Parks Institutions Like IIMs, IITs, NITs etc. Technology business incubator
1/23/2013
18 18
Technology Parks in India…
Software Technology Parks
The Ministry of Communication and Information Technology Is establishing STPs through the Software Technology Parks of India (STPI) all over the country. The main objective of the Software Technology Parks scheme is to boost the software exports from the country using high-speed data communication links. So far, 35 STPs including 19 international gateways have been set up.
Biotechnology Parks The Department of Biotechnology (DBT) is promoting Micro propagation Technology Parks (MTPs) for providing an interface between the research institutions and industry and biotechnology parks to provide opportunities for women entrepreneurs through the application of environment friendly biotechnologies. DBT has set up 2 MTPs, one at Tata Energy Research Institute (TERI), New Delhi and another at National Chemical Laboratory, Pune. A biotechnology park for women has been set up by DBT at Chennai in collaboration with the state government.
1/23/2013
19 19
STEPs in India
• • • • • • The NSTEDB and other central financial institutions, have so far catalyzed
15 STEPs in different parts of the country.
These STEPs have promoted nearly 788 small enterprises. Generated annual turnover of around Rs 130 crores. Generated 5,000 direct and indirect jobs in the country. More than 100 new products and technologies have been developed by the STEPs promoted entrepreneurs. Over 11,000 persons have been trained through various skill development
programmes conducted by STEPs.
1/23/2013
20 20
Technology Business Incubation
? Technology
Business Incubators focus on new enterprises whose operations are based on novel technological ideas that are likely to lead to a marketable new product.
?They provide common services as well as financial, legal and business support to these newly formed enterprises.
?The incubation process ends after a limited period of time, either with “graduation” of successful start-ups that move outside the incubator, or with the termination of incubation arrangements for one reason or another.
21
Development of TBI in India
• India had an early start in the 1950s on building comprehensive statesupported programmes for small business support, scientific research and entrepreneurship development. Promotion of artizan based industries.
•
•
•
Promotion of available resources based industries.
Implementation of District Industries Centres to support the promoters with infrastructure and facilities.
•
Marketing support to these SSI units through various agencies like KVIC, NSIC etc.
1/23/2013
22 22
Development of TBI in India (contd…)
• Training in the area of entrepreneurship through EDI, NEISBUD, NISIET, SISI, CEDs, consultancy organizations. ED cells and STEPs to promote the culture of technical entrepreneurship right in the universities and colleges. The network of laboratories of the Council for Scientific and Industrial Research with 10,000 researchers is among the world?s largest. Promotion of Software Technology Parks and Technology Business Incubators.
•
•
•
1/23/2013
23 23
Typical working Mechanism of a TBI
1/23/2013
24 24
A typical networked TBI
1/23/2013
25 25
Incubators? category/type matrix
(http://www.icubed-eu.com/whowilluse.html)
26
Global Scenario of TBIs
• In 2007, of the total about 5,500 TBIs worldwide, the numbers in north America and in Europe are estimated at about 2,000 plus each • Asia has roughly 900 TBIs • 430 TBIs are there in South America, Africa and other countries. • In Europe, the majority are in Germany, France and the UK.
1/23/2013
27 27
TBIs in Asian Countries
1/23/2013
28 28
Significance of Technology Business Incubator
• Enterprise and entrepreneurship development: by promoting technology/knowledge-based businesses, culture of technopreneurship and creation of value added new jobs; • Technology commercialization: It provides a platform for speedy commercialization of the technologies developed in the institutes to reach the end-users; • provides an interfacing and networking mechanism between academic, R&D institutions, industries and financial institutions; • value addition through its services provided to its tenants as well as to the existing technology dominated SMEs; • R&D for industry: It also enables small industry to take up R&D activity and the Technology up gradation activities.
29
Significance of Technology Business Incubator
• Earlier business incubators used to focus on new technology, light manufacturing, and services. • Today?s incubators target diversified industries such as biotechnology, clean energy, ceramics technologies, the internet, software and telecommunications, high technology, and the arts. • Incubators have been used to combat unemployment, raise rates of enterprise formation, upgrade the technological standing of firms in a given locality, commercialize university research, assist socially disadvantaged groups. • In some cases, incubation applies a way of protecting legitimate entrepreneurship from criminal activity. However, job creation is by far the most common goal of incubation schemes.
30
Vision 2020: Technology Policy
By training engineers and technologists well, and encouraging them to innovate by rewarding them (and the institutions where they operate) generously with both real and psychic income, India will ably Compete in the world economy and thrive by trading high quality, high-tech products over international boundaries. This vision has three components: (a) High quality training, (b) Promotion of innovation, and (c) Production of internationally competitive high-tech products.
31
Vision 2020: Technology Policy
1. Indian technology will be internationally competitive, so much so, no manufacturer will have the need to seek, or have, trade protection. 2. India will be a technologically advanced country. In evidence thereof, it will import, and not export, talented people. 3. India will deploy technology to promote good ecology. It will ensure thereby (a) high quality of air, water and soil, (b) smooth flow of goods and people, and (c) free flow of information. 4. India will use technology to minimize income disparities and do so by minimizing poverty rather than by reducing wealth. 5. India will maximize employment by matching employment skills to technology innovation and by promoting employment multiplication. 6. India will be self-reliant in technology. It will have enough capability to exchange whatever foreign technology is needed with comparable indigenous ones.
32
doc_627181921.ppt
Environment for Entrepreneurship
Environment for Entrepreneurship
1
Business environment analysis
• Scanning: to detect change
• Monitoring: to track evolution, development and sequence of critical events
• Forecasting: to develop plausible projections about future • Assessing: interpretation of all the information collected through above processes
– Helps in development of „entrepreneurial insight?
2
Environment
Macro Environment
Demographic
Industry Environment New Venture
Economic
Political Legal
Social Technological International
3
Political/Legal Environment
• International Aspects
– Trade barriers/ tariffs – Trade agreements – Political risk
• National Aspects
– – – – – – – – Taxation IPR norms Regulations Public sector Taxation Licensing Incentives/subsidies Regulations
4
• Regional/Local Aspects
Economic Environment
• Structural change
– – – – – Financial market Infrastructure Income level Consumption pattern Growth rate
Learning: which industry is growing/maturing/fading
• Cyclical change
– Expansion – Stagnation – recession
Learning: Whether industry procyclical /countercyclical /acyclical
5
Technological environment
• Product invention: leadership advantage
– New product – Modification/additions/value additions
• Process innovation: incremental and evolutionary
– Increase in efficiency/productivity/quality – Spin-offs possible
6
Social environment
• • • • • • Social values/trends Culture Lifestyle Education Employment Demographics
7
Porter?s Model of Industry Analysis
Potential Entrants
Threat of increased competition Threat of increased Bargaining power of suppliers
Suppliers
Firm+ Competitors
Buyers
Threat of increased Bargaining power of buyers
Other Stakeholders
Threat of increased competition
Substitutes
8
Industry Evolution
• Introduction
– price and quality less important – Uniqueness more important
• Growth
– New companies enter – Reduction in price, emphasis on quality
• Maturity
– Tends to become more like commodity – Information plays significant role – Price deciding factor
• Decline
– Either exit or convert assets to other uses
Learning: Industry life cycle stages determine the ease / difficulty of entry
9
Entrepreneurial opportunities
• Unexpected events create opportunities • When traditional wisdom and reality collide • Technological breakthroughs/need for the same • Market structure • Industry life cycle stage • Demographics
10
Entrepreneurship Development
11
Some Facts
Conversion of Research outcomes into successful commercialization
• • • • • US$200 billion of funded research 100,000 disclosures 50,000 patents filed 25,000 licensed 2,500 start-ups – major successes : 250 – average performers : 750 – fast/slow failures : 1500 Reference : Berneman in “Best Practice Processes for University Research Commercialization”, Australian Centre for Innovation, Howard Partners, Carisgold,2002.
1/23/2013 12 12
Key elements of technology management
• • • • • • Technology Planning Technology Forecasting Technology Development Technology Transfer And Absorption Technology Evaluation And Assessment Technology Diffusion
13
Technical entrepreneurship (Technopreneur)
• In a fast changing technological environment, wherein the product life cycle is shrinking, the role of technical entrepreneurship has assumed a central place. • Contributes to industrial development through innovations, new product/process development and improvements in productivity, production processes and systems. • Innovation requires innovators with some kind of technical skills. • Technicians and technocrats can play the role of innovators with comparative ease because they have characteristics such as a propensity to adopt new knowledge and technology more rapidly. • Technologists and technicians, who learn sufficient science and engineering, acquire the capability to know the why and how of various theories and can design products and services based on their knowledge and skill competencies.
14
Technical entrepreneurship
Favourable factors to technopreneureship: • With the acquired knowledge through education or experience or both, technical people can work out the economics of production and service outputs and can evolve competitive and cost effective strategies • They can give a fillip to ancillarisation, thus helping create better linkage between large and small enterprises • Their technical and analytical capability will help in preventing problems, thus reducing expenditure on troubleshooting • They can forecast changes in technology and can adapt to changing environments easily • They can contribute to self-propelled performance rather than push propelled developments • They can effectively transfer technology from laboratories to industries, based on research and development • Engineers, through entrepreneurship, can bring about a technical revolution that can meet the challenges of the emerging scenario of globalisation and liberalisation with the key element of competition rather than protection in a country like India.
15
Technical entrepreneurship
Constraints
• Technical entrepreneurs lack managerial skills leading to a high rate of failure at the start-up stage. • Technical entrepreneurship has to be nurtured, by developing institutional mechanisms that promote the technology trade between small industries. • Academic professionals have to widen their concept about entrepreneurship education and promotion, which should be relevant to the changing scenario. • The necessity of developing creativity in students has been verified by many teachers, particularly on design courses. • As shown by Karune, in the modern world the methodology of creative thinking alone cannot turn an engineer into an entrepreneur. He has to have the necessary insight into the basic laws and command over the various sources of knowledge to become resourceful.
16
Entrepreneurship Development in India
• • • • • • • • • EDP – Entrepreneurship Development Programme EDC – Entrepreneurship Development Cell EAC – Entrepreneurship Awareness Camp STST - Skill Training through Science & Technology STEP – Science and Technology Entrepreneurs Park OLPE – Open Learning Programme in Entrepreneurship STEDS – Science and Technology Entrepreneurship Development Scheme FDP – Faculty Development Programme TEDP – Technology-based Entrepreneurship Development Programme
1/23/2013
17 17
Support System Organizations
• • • • • • • • • • • National Science and Technology Entrepreneurship Development Board, Dept. of Science & Technology, GOI Entrepreneurship Development Institute of India, Ahmedabad Centre for Entrepreneurship Development – various states Indian Institute of Entrepreneurship, Gowahati Small Industries Development Bank of India National Small Industries Corporation Development commissioner, MSME, GOI Technical consultancy organizations Science and Technology Entrepreneurs Parks Institutions Like IIMs, IITs, NITs etc. Technology business incubator
1/23/2013
18 18
Technology Parks in India…
Software Technology Parks
The Ministry of Communication and Information Technology Is establishing STPs through the Software Technology Parks of India (STPI) all over the country. The main objective of the Software Technology Parks scheme is to boost the software exports from the country using high-speed data communication links. So far, 35 STPs including 19 international gateways have been set up.
Biotechnology Parks The Department of Biotechnology (DBT) is promoting Micro propagation Technology Parks (MTPs) for providing an interface between the research institutions and industry and biotechnology parks to provide opportunities for women entrepreneurs through the application of environment friendly biotechnologies. DBT has set up 2 MTPs, one at Tata Energy Research Institute (TERI), New Delhi and another at National Chemical Laboratory, Pune. A biotechnology park for women has been set up by DBT at Chennai in collaboration with the state government.
1/23/2013
19 19
STEPs in India
• • • • • • The NSTEDB and other central financial institutions, have so far catalyzed
15 STEPs in different parts of the country.
These STEPs have promoted nearly 788 small enterprises. Generated annual turnover of around Rs 130 crores. Generated 5,000 direct and indirect jobs in the country. More than 100 new products and technologies have been developed by the STEPs promoted entrepreneurs. Over 11,000 persons have been trained through various skill development
programmes conducted by STEPs.
1/23/2013
20 20
Technology Business Incubation
? Technology
Business Incubators focus on new enterprises whose operations are based on novel technological ideas that are likely to lead to a marketable new product.
?They provide common services as well as financial, legal and business support to these newly formed enterprises.
?The incubation process ends after a limited period of time, either with “graduation” of successful start-ups that move outside the incubator, or with the termination of incubation arrangements for one reason or another.
21
Development of TBI in India
• India had an early start in the 1950s on building comprehensive statesupported programmes for small business support, scientific research and entrepreneurship development. Promotion of artizan based industries.
•
•
•
Promotion of available resources based industries.
Implementation of District Industries Centres to support the promoters with infrastructure and facilities.
•
Marketing support to these SSI units through various agencies like KVIC, NSIC etc.
1/23/2013
22 22
Development of TBI in India (contd…)
• Training in the area of entrepreneurship through EDI, NEISBUD, NISIET, SISI, CEDs, consultancy organizations. ED cells and STEPs to promote the culture of technical entrepreneurship right in the universities and colleges. The network of laboratories of the Council for Scientific and Industrial Research with 10,000 researchers is among the world?s largest. Promotion of Software Technology Parks and Technology Business Incubators.
•
•
•
1/23/2013
23 23
Typical working Mechanism of a TBI
1/23/2013
24 24
A typical networked TBI
1/23/2013
25 25
Incubators? category/type matrix
(http://www.icubed-eu.com/whowilluse.html)
26
Global Scenario of TBIs
• In 2007, of the total about 5,500 TBIs worldwide, the numbers in north America and in Europe are estimated at about 2,000 plus each • Asia has roughly 900 TBIs • 430 TBIs are there in South America, Africa and other countries. • In Europe, the majority are in Germany, France and the UK.
1/23/2013
27 27
TBIs in Asian Countries
1/23/2013
28 28
Significance of Technology Business Incubator
• Enterprise and entrepreneurship development: by promoting technology/knowledge-based businesses, culture of technopreneurship and creation of value added new jobs; • Technology commercialization: It provides a platform for speedy commercialization of the technologies developed in the institutes to reach the end-users; • provides an interfacing and networking mechanism between academic, R&D institutions, industries and financial institutions; • value addition through its services provided to its tenants as well as to the existing technology dominated SMEs; • R&D for industry: It also enables small industry to take up R&D activity and the Technology up gradation activities.
29
Significance of Technology Business Incubator
• Earlier business incubators used to focus on new technology, light manufacturing, and services. • Today?s incubators target diversified industries such as biotechnology, clean energy, ceramics technologies, the internet, software and telecommunications, high technology, and the arts. • Incubators have been used to combat unemployment, raise rates of enterprise formation, upgrade the technological standing of firms in a given locality, commercialize university research, assist socially disadvantaged groups. • In some cases, incubation applies a way of protecting legitimate entrepreneurship from criminal activity. However, job creation is by far the most common goal of incubation schemes.
30
Vision 2020: Technology Policy
By training engineers and technologists well, and encouraging them to innovate by rewarding them (and the institutions where they operate) generously with both real and psychic income, India will ably Compete in the world economy and thrive by trading high quality, high-tech products over international boundaries. This vision has three components: (a) High quality training, (b) Promotion of innovation, and (c) Production of internationally competitive high-tech products.
31
Vision 2020: Technology Policy
1. Indian technology will be internationally competitive, so much so, no manufacturer will have the need to seek, or have, trade protection. 2. India will be a technologically advanced country. In evidence thereof, it will import, and not export, talented people. 3. India will deploy technology to promote good ecology. It will ensure thereby (a) high quality of air, water and soil, (b) smooth flow of goods and people, and (c) free flow of information. 4. India will use technology to minimize income disparities and do so by minimizing poverty rather than by reducing wealth. 5. India will maximize employment by matching employment skills to technology innovation and by promoting employment multiplication. 6. India will be self-reliant in technology. It will have enough capability to exchange whatever foreign technology is needed with comparable indigenous ones.
32
doc_627181921.ppt