University of Malta

Technology Entrepreneurship Course

Introduction to Entrepreneurship
- What is entrepreneurship?
1.1.1 Definition of entrepreneurship
Russell Smith

Operational Programme II Cohesion Policy 2007-2013

Empowering People for More Jobs and a Better Quality of Life
Event part-financed by the European Union
European Social Fund (ESF)
Co-financing rate: 85% EU Funds; 15% National Funds
Investing in your future

Learning objectives
This session is designed to:
Explain what we want to achieve with Module 1
and Module 2 of the Technology
Entrepreneurship Course
Define what is meant by entrepreneurship

1.1 Definition of entrepreneurship

This

session introduces a range of business

terms and themes in common use. The
session will also develop the themes of
enterprise and entrepreneurship looking at
both individual and societal benefits. A clear
distinction is drawn between innovation and
entrepreneurship.

1.2 Selling for profit

This

session looks at the business of selling

products and services at a profit. It will
introduce product-costing and profit
assessment. And it will include the allimportant key message creation process. The
concept of routes to market will be introduced
alongside the ways in which different routes
require different teams.

1.3 Common business structures

This

session will explain the different forms of

business structure and provide some common
rules about how to choose the correct structure
for a business model, including a social
enterprise model. The session will also look at
the composition of a business team and
contrast that with self-employment.

1.4 Entrepreneurial career paths

This

session will review the current popularity

of graduate entrepreneurship and explain the
ways that Science, Technology, Engineering
and Maths (STEM) undergraduates can
become entrepreneurs. It will look at:
Commercialising the graduates own ideas
Technology arising from university research
Working with other innovators including those inside
an existing organisation (intrapreneurship)

1.5 Protecting business property

This

session will explain the forms of

intellectual property that a STEM graduate
needs to be aware of with a focus on the
graduates own know-how. The concepts of
patents, trade marks, design rights and
copyright will also be explained as will their
importance in business.

1.6 Market research in business

This

session will explain the critical importance

of information generated from primary and
secondary market research and how to obtain
it. The session will also explain how to assess
a business models internal Strengths and
Weaknesses as well as it external
Opportunities and Threats using the SWOT
analysis.

1.7 Business plans & budgets

This

session will explain how to create a shortform business plan and associated cash flow
forecast (budget) for a new business venture.
The session will focus on the business
opportunity and operating plan sections of the
traditional business plan and show how those
are referenced to milestones and the
associated cash flow forecast.

1.8 Finding business resources

This

session will describe the various forms of

business resources (human, financial, capital
assets etc) that businesses need and the
common mechanisms used to acquire them.
Particular attention will be paid to the
difference between debt finance and equity
finance and when, and how, money is raised
using one or both mechanisms.

10

1.9 Launching a business

This

session will explain the various methods

that are commonly adopted when launching a
business. Students will be introduced to
business websites, press releases and media
campaigns together with the use of social
media for business promotion. Various
techniques for engaging with and retaining
customers will also be introduced.

11

1.10 Managing business risk

This

session reviews business risk and

introduces the techniques used to define,
assess and reduce risk (eg risk registers)
before launching a business venture and how
to manage risk post-launch, including business
failure. As part of risk mitigation, the session
also explains the additional areas of skills and
knowledge (covered in later modules) that are
required to be successful in business.

12

Enterprise
Enterprise

is a process all of those things

that are necessary to establish and run a
successful business
Because enterprise is a process it can be
broken down into a series of steps which can
be taught and learned
And it involves selling either a product or a
service (or both) whilst making a profit
13

Innovation
Innovation

is a creative process :

the development of ideas and technologies that can

lead to an entirely new product or service (eg the
development of antibacterials in the 1940s)
the development of ideas and technologies that can
lead to a better way of delivering an existing product
or service (eg the development of CDs for music as
compared with gramophone records or cassette
tapes)

14

Entrepreneurship
Lots

of different definitions

Arguably

the marriage of enterprise and

innovation to create a business that sells new,
or better, products and services at a profit

15

Words that describe people who

can do this well might include:
Entrepreneur
Inventor
Enterprising
Risk

taker
Hard worker
Determined
16

perhaps the most common

Characteristics of an entrepreneur
Skilled at enterprise
Formal

training
Purely intuitive
Willingness to learn
Actively seeks information and advice
Quick learner and learns from experience
Ensures that processes work oversees
operations that are delegated or contracted out
17

Characteristics of an entrepreneur
Hard working
Not

the same thing as working long hours

Entrepreneurs work hard when they are
working and rarely waste time
Typically will do what is needed to get the job
done and so may not have a 9 to 5 pattern
Demonstrate self-discipline

18

Characteristics of an entrepreneur
Self-confident but willing to learn
Early

self-confidence may arise from having

tackled something challenging and either
succeeded or simply survived
Confidence increases with experience
Negative lessons useful since they help avoid
future problems
Good entrepreneurs never stop learning
19

Characteristics of an entrepreneur
Risk-reader
Neither

a risk-taker or risk-averse
Risk-readers assess risk carefully and avoid
the avoidable, often by creative means
Aggressive risk-taking isnt entrepreneurship
its called gambling!
Clear understanding of the implications of
failure not head in the sand
20

Characteristics of an entrepreneur
Takes decisions & solves problems
Willingness

to take decisions when needed

Decisions taken today may be changed
tomorrow if new information comes up that
modifies the risk analysis profile
Solve problems with creative solutions not
tied to standard, textbook solutions
Able to say no surgical not medical
21

Characteristics of an entrepreneur
Understand people & communicate
Good

entrepreneurs understand the need to

delegate and hence the need for a good team
They understand that company means a
group of people working together
Communication is paramount poor
communication leads to errors and wasted time
at best and business failure at worst
22

Characteristics of an entrepreneur
Logical leadership
There

is no place in entrepreneurship for a

bully or a dictator
But, good entrepreneurs dont surround
themselves with people who say yes all of the
time
People follow a good entrepreneurs leadership
because it makes sense to do so
23

Characteristics of an entrepreneur

May prefer to build ships, not sail them

Entrepreneurs

enjoy turning good ideas into

great businesses
The skills needed to build a ship are not the
same as those needed to sail the ship
Once the business model has proven seaworthy, the entrepreneur may well appoint a
successor and move on to the next challenge
24

Thank you Any questions?

Operational Programme II Cohesion Policy 2007-2013

Empowering People for More Jobs and a Better Quality of Life
Event part-financed by the European Union
European Social Fund (ESF)
Co-financing rate: 85% EU Funds; 15% National Funds
Investing in your future