In recent times, technopreneurship has emerged as a popular term in the field of business and entrepreneurship. However, there are many misconceptions surrounding it and this article aims to provide a clear understanding related to technopreneurs.
A technopreneur is someone who merges entrepreneurial skills with technological expertise. It may seem a simple term to understand but there is a complex world behind technopreneurship. The reason for the popularity of technopreneurship is due to the emergence of many technopreneurs who have revolutionized the economic order with the help of technology. They have introduced new services and products in the market, and by doing so they have made millions of dollars.
What are the differences between technopreneurs and entrepreneurs?
Technopreneurs and entrepreneurs are not the same, however, they do share many similar characteristics. Technopreneurship is a subset of entrepreneurship. Entrepreneurs start with a new and innovative idea and take the risk to convert that idea into a commercial product or service. They use different approaches to test the product before the launch, such as MVP (minimum viable product).
This phase helps them in getting validation of their business ideas. On the other hand, technopreneurs start by modifying a traditional process or activity, with the aid of technology. Let’s take the example of Uber, the idea was not something completely out of the box. They revolutionised the transportation industry by using technology. They saw a gap in the market that could be resolved through the use of technology in an innovative way.
Unlike traditional entrepreneurs, when technopreneurs first enter the market, they have nothing but an idea. They observe the prevailing businesses and connect them with new ideas that lead to the creation of something exclusive. They can absorb knowledge and then come up with executable plans that lead to the creation of something that serves the interest of consumers. They use technology solutions that challenge orthodox practices which makes them different from the ordinary business person.
Technopreneurs, in this technology driven-era, generally start with a brainstorming session in which they come up with many different ideas. After shortlisting an idea that can be converted into an opportunity, they plug-in technology to provide a solution to the problem. It is all about using imagination, innovation, and creativity to revolutionise traditional business practices. People in a post-pandemic world are looking for technology to provide solutions for everything. This has led to an increase in the demand for tech-based solutions; consequently, there has been a significant rise in the field of technopreneurship.
However, technopreneurship is not only about technology. It does take centre stage but there is a lot more than just technology in it. One of the most integral elements in it is the business idea. Once someone brings a brilliant idea to the table, half the job is already done. The idea is the starting point for any technopreneur, it does not necessarily mean that one has to invent something but it has to be innovative. The role of technology comes while devising a solution to a problem that already existed. Technology allows technopreneurs to find a better and new way to solve that problem. The next step is to assess the commercial viability of the idea. Often young tech graduates make the mistake of having over-ambitious ideas that have no product feasibility. An idea of a wearable computer might be based on sophisticated technological advancements yet it will have a very little market for it.
The growing significance of technopreneurship
The technology industry has emerged as the industry of choice for many aspiring business owners in recent times. It’s a fast-growing and broad field that has attracted venture capitalists and investors from all over the world. The potential pay-out is enormous and in most cases, the results can be experienced in a short time. We live in a technology-driven world. Technology has had an impact on all spheres of life. It has completely changed the dynamics of business. Since technology is integrated into all industries there are more opportunities for entrepreneurs to merge that technology and come up with new business plans and models. There is a market for a variety of technological applications and therefore investors continue looking for new businesses that can generate higher profitability and ROI for them.
The pandemic has played a vital role in accelerating the progress of science and technology. Even the industries that had resisted the use of technology for decades, were forced to digitise their business practices and business models. Consequently, the demand for tech-related products and services has increased in the past two years and it is only expected to grow further.
The challenges for technopreneurs
Being a part of a hyper-competitive tech world can bring about different and significant challenges for technopreneurs. It brings about some unique risks that can have a serious impact on the viability and sustainability of the business. More than any other industry, the technology industry changes rapidly and that can be really difficult to manage. It is common in the tech industry that market attractiveness changes from the time an idea was conceived to the time when the product reached the market. Even if the start-up had executed all its plans with precision, the external factors in the technology industry change so quickly that there is no guarantee of success.
Startups have to move extremely quickly and the window of opportunity is small, in most cases. The startups have to be fast enough to convert that idea into a final product or service and that could lead to quality issues. If your startup is not quick enough to deliver the solution for the problem then a competitor would do it and then you would be left with a product with no market. However, being the first one to solve a problem does not guarantee success either. In some cases, there’s a second-mover advantage in the technology industry because they can learn from the mistakes made by the first-mover. They can make adjustments and then come up with a better offering for the customers.
Partnerships for tech startups are essential in fuelling growth possibilities but finding the right partner can be a daunting task. Stakes are generally very high in tech startups and they cannot afford to have their operations hindered because of an additional layer of decision-making. Having clear guidelines and policies can safeguard a tech startup from facing unnecessary interventions. Additionally, there is always a risk that a partnership may result in the theft of intellectual property. However, it is hard for a startup to survive the cut-throat competition in the tech business without the support of well-established business partners. Therefore, it could be a double-edged sword.
Technopreneurs sometimes fail to develop the soft skills that are essential to thrive in the business environment. Often investors indeed pitch them for equity but they still require negotiation skills and business acumen to get the most out of those deals. They do possess exceptional technical skills but when it comes to having human skills they tend to struggle which has an impact on the overall team management and financial matters of the startup. Therefore, they need to understand the importance of soft skills as well because without those it becomes hard to excel in the field of business.
Moreover, startups in the tech industry often have to deal with cash flow issues which limits the possibility to attract and find the best talent for non-technical roles. Therefore, they are left with only themselves to deal with many issues related to finance, HR, marketing, and law. Unfortunately, they do not, generally, possess the skillset required in the fields of business management. This often leads to distraction from the core purpose of the start-up and Techpreneurs can often feel overwhelmed with all the work.
Conclusion
Elon Musk, Bill Gates, and Steve Jobs can all be categorized as technopreneurs. Elon Musk is a tech geek who has revolutionised space travel technology through Space X. His other ventures, such as PayPal and Tesla, had also disrupted their respective industries but bringing a revolution to the space industry is an achievement on its own. Space X became the first privately funded rocket to have orbited the Earth. Bill Gates revolutionised the software business and through his efforts, thousands of new industries were created. Steve Jobs brought great innovation and excitement to the market with gadgets ad electronics with Apple. Therefore, there are plenty of role models available to technopreneurs out there.
Many young IT graduates prefer to be technopreneurs post-university life than be employed because of the limitless earning potential of the former. However, the path to success for this is slightly more challenging compared to the other entrepreneurs. They need to work on their skillset from an early age and develop the business acumen that could help them in understanding the business dynamics. This is one of the reasons why many universities have made it compulsory for IT graduates to take a course on business management or entrepreneurship to equip the students with the right knowledge set.
