1. Entrepreneurship, Management of Technological Innovation, KV Patri 1 Entrepreneurship

2. Entrepreneurship, Management of Technological Innovation, KV Patri 2 Who can be called an entrepreneur? Unfortunately, many English speaking people outside USA equate an entrepreneur with a “get-rich-quick fast-buck artist.” The French verb enterprendre (literally between-taker) means to undertake or to assume a responsibility or task. The 1975 edition of Webster defines an entrepreneur as someone who undertakes to “organize, manage and assume risk of business.” The entrepreneur typically assumes responsibility for creating and developing new living businesses rather than burying old dead ones. In the context of technological evolution, this quality converts inventions into innovations.

3. Entrepreneurship, Management of Technological Innovation, KV Patri 3 Usually, an entrepreneur has high “n-ach”, i.e. a high need for achievement ‘n-ach’ is “the desire to do something better, faster, more efficiently, with less effort. It is not a generalized desire to succeed, nor is related to doing well in all sorts of enterprise …Rather it is peculiarly associated with moderate risk-taking because any task which allows one to choose the level of difficulty at which he works also permits him/her to figure out how to be more efficient at it, how to get benefit (utility) for the least cost. And business, cross-culturally, is the specific activity which most encourages or demands using the calculus of cost-benefit.” [David C. Mclelland, The Achieving Society, Irvington Publishers, Halstead Press, 1976]

4. Entrepreneurship, Management of Technological Innovation, KV Patri 4 An individual with a high ‘n-ach’ is someone 1. Who likes situations in which he/she takes personal responsibility for finding solutions to problems. 2. Who has a tendency to set oneself challenging but realistic achievement goals and to take “calculated risks.” 3. Who also wants concrete feedback as to how well he/she is doing.

5. Entrepreneurship, Management of Technological Innovation, KV Patri 5 Williamson Factors: Characteristics of Entrepreneurs 1. Good physical health to sustain long hours of hard work. 2. Superior conceptual and problem-solving abilities so that one can learn from mistakes and resolve complex commercial and technical problem situations quickly. 3. Broad generalist thinking so as to be able to maintain continued overviews of situations and integrate diverse technical and commercial factors into the overall thrust of the venture. 4. High self-confidence and tolerance of anxiety so that inevitable setbacks and adversities can be overcome and “defeats” turned into “victories”. 5. Strong drive since persistence and tenacity play plus a strong sense of urgency so that “things get done”.

6. Entrepreneurship, Management of Technological Innovation, KV Patri 6 6. A basic need to control and direct that rejects higher authority and externally imposed bureaucratic structures. 7. Willingness to take moderate risks based upon rational analysis and alternative actions and the calculation of consequent risks before decision making. 8. Very realistic viewpoint but honest and dependable while expecting similar virtues from others. 9. Moderate interpersonal skills because he/she wants to run his/her “own show”. Uninterested in delegation and participative approach to decision making. Does not need the interpersonal skills of a professional manager although these would be an asset as the firm grows larger. 10. Sufficient emotional stability because successful entrepreneurship imposes physical, emotional, and time pressures. One needs to “keep one’s cool” in continual crisis situations. [Byron Williamson, 1974]

7. Entrepreneurship, Management of Technological Innovation, KV Patri 7

8. 8 Here, you may visit the case study titled “Ecritec” to appreciate how one entrepreneur developed a company based on a new technology related to “knowledge transmission”.

9. Entrepreneurship, Management of Technological Innovation, KV Patri 9 Exercise Answer the Entrepreneurial Characteristics questionnaire.

10. Entrepreneurship, Management of Technological Innovation, KV Patri 10 GENERAL NONENTREPRENEURIAL PROFILES [Robert D. Hirsch and Michael P. Peters, Entrepreneurship: Starting, Developing and Managing a New Enterprise, Irwin, Chicago, 1995, pp. 52-65.]

11. Entrepreneurship, Management of Technological Innovation, KV Patri 11 “In addition to inventors, there are several other personality types that have a difficult time in successfully creating and managing a new venture. These personality types have characteristics that can lead even the brightest entrepreneur with the best idea into bankruptcy.” Eight of these personality types are profiled below.

12. Entrepreneurship, Management of Technological Innovation, KV Patri 12 1. Shotgun Sam “An entrepreneurial type who quickly identifies new promising business opportunities but rarely if ever follows through on the opportunity to create a successful new venture.”

13. Entrepreneurship, Management of Technological Innovation, KV Patri 13 2. Simplicity Sue “An entrepreneurial type who always thinks everything is a lot simpler than it is to create a successful business through one or two easy solutions. Usually a great salesperson. This entrepreneur can make even the most improbable deal seem possible.”

14. Entrepreneurship, Management of Technological Innovation, KV Patri 14 3. Prima Donna Paul “An entrepreneurial type so in love with his own idea that he feels everyone is out to take his idea and take advantage of him. This paranoia does not allow any trust to be established and help given.”

15. Entrepreneurship, Management of Technological Innovation, KV Patri 15 4. Ralph the Rookie “An entrepreneurial type who is well grounded in theory but lacks real- world business experience.”

16. Entrepreneurship, Management of Technological Innovation, KV Patri 16 5. Meticulous Mary “A perfectionist entrepreneurial type who is so used to having things under control that he or she cannot manage during a catastrophe and cannot handle periods of ambiguity and chaos.”

17. Entrepreneurship, Management of Technological Innovation, KV Patri 17 6. Underdog Ed “An entrepreneurial type who is not comfortable with actually transforming the invention into a tangible business success. This entrepreneurial type likes to attend seminars and discuss problems but does not like putting things into action, so needs a strong managerial team.”

18. Entrepreneurship, Management of Technological Innovation, KV Patri 18 7. Hidden Agenda Harry “An entrepreneur who does not have the right motives and objectives for developing and expediting a new enterprise.”

19. Entrepreneurship, Management of Technological Innovation, KV Patri 19 8. Inventor Irving “An inventor more than an entrepreneur, who is more concerned about the invention itself rather than creating and expediting a business.”