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BUSINESS TRIAL PAPER : Role of Technopreneurship

THE ROLE OF TECHNOLOGY-ENTREPRENEURSHIP (TECHNOPRENEURSHIP)

IN DEVELOPING SMALL BUSINESS ESTABLISHED BY THE INDONESIAN YOUTH

Written by: Firmansyah Shidiq Wardhana (March 2012)

I. CONCEPTS OF THE YOUTH SMALL BUSINESS & TECHNO-PRENEURSHIP

 A.  Description of Business and Youth Small Business

Business is an activity of selling goods and services to get some profits. The main idea of business is where a person or a group is in busy to do their job (trading, selling, franchising and etc) to raise expected profits. Business has been considered as the  In this case, we would like to limit the understanding of business toward small business.

Additionally, Small business is an area of business which is operated with a small number of employees and relatively low volume of sales. Small businesses are usually private companies, partnership, or individuals. The definition of “small” varies by country and by industry, start from 15 employees until 100 employees (qualified and stated by the  U.S Small Business Administration Programs)

In this case we would like specify the small businesses which are established and maintained by youth especially in Indonesia. Why the youth? Because it is known that the youth are the key point to make Indonesia better one step ahead. Youth are the agent of change who eager to be energetic, creative, innovative to start the simple-small business in order to empower the other youth and society around them.

The example of small business which established by Indonesian youth are as follows: small convenience store, small-home business shops (bakery, handicraft, creative culinary and food, t-shirts, youth stuff business and etc.) and online business shops (such as: flannel shops, digital printing business, photography-editing and etc).

B.  THE BASIC IDEA of TECHNOPRENEURSHIP

Technology is the making, usage, and knowledge of tools, machines, techniques, systems or methods of organization in order to solve a problem or perform a specific function. People utilize technology not only for entertainment, but also to improve the business type and maintain a business process.

Entrepreneurship is the action of compiling efforts, desire, innovation and creativity in terms of making business to be profitable, useful for the whole society and maintain the economic condition of country,

Nowadays, most of educational institution, economist and entrepreneur are trying to combine both technology and entrepreneur in the one idea of Technopreneurship which means that the development of entrepreneurial activity (such as : operating small business) must be in line with the technology use. It means that in this era, both technology and entrepreneurship cannot be separated. It supports each other ((technology has made the entrepreneurship activity easier and entrepreneur can utilize the technology as wise as possible ) to conduct the social welfare and prosperity

C.  Application of TECHNOPRENEURSHIP In The Youth Small Business

At first, we are considerably classifying youth small business into two types on how the business utilize  the technology in their entrepreneurial activity. In order to deal analyzing with the TECHNOPRENEURSHIP point, as follows :

  1. Youth Small Business On Technological Based

Technoprenurship Point : Small business (entrepreneurial activity) established by young entrepreneur (high school or college student) that utilize technology as the basic property to establish a business, for example : cybercafé business, digital printing and designing shops, online gaming cafe, computer and printer small shops and etc.

  1. Youth Small Business which Utilize Technology as Medium To Ease Its Business

Technopreneurship Point : Small business established by young entrepreneur (high school or college student) that utilize technology as the facilitating property to ease a business. For example : one of the Indonesian Youth Entrepreneur from the 3 students of Chemical Engineering- ITS who have created creative culinary in the end of 2011 called “Burger Krawu” (Krawu Rice from Gresik region which are served creatively as a burger) utilize the technology (laptop, internet, social network) to promote their products via youtube and social network, accept order from the twitter & FB.

II.      THE INFLUENCE AND ROLE OF TECHNOPRENEURSHIP TO THE YOUTH SMALL BUSINESS

 A.    Advantages  of TECHNOPRENEURSHIP in Developing Youth Small Business

Computer and Internet has transformed the current small businesses from local places of business to national and global market competitors.

There are some advantages which can be taken by applying the technology-entrepreneurship (technopreneurship) in developing youth  small business as follows :

1. Making The Business Process Become Easier and Simple

By utilizing technopreneurship, it is known that we are saving the time and distance through cost of marketing and shipping. That a business can be open anytime anywhere, making purchases from different region easier and more convenient. The electronic devices and social network (Blogger, Facebook, twitter, etc) are able to shorten the lead time business spend on receiving and delivering goods or services, creating an instant competitive advantage in the small business. It means that the business process become much simple and easier to the both of suppliers and consumers.

2. Simple and Fastest Way to Promote and Popularize The Product

Flannel business which maintained by other Indonesian Youth Entrepreneur (UNDIP Alumnae) can utilize technology-entrepreneurship like internet they can promote it to internet as fast and simple. They can receive an order from website  through Google Spreadsheet attachment. Moreover, today Google has the new breakthrough to facilitate the small business to use the Google business platform to market and promote their products.

3.Maximizing Revenue and Profits

This is turn increases productivity which ultimately gives rise to profits that means better pay and less strenuous working conditions. The young entrepreneur will optimize the resources by decreasing the raw material cost but gaining profits as many as possible through the utilization of technopreneurship toward their business.

4.Creating More Innovations and Creativity

Innovation and creation is needed in developing small business. By utilizing technopreneurship, the entrepreneur will think more how they can generate more creativities to develop their small business become more popular, profitable and better.

5. Storing and Sharing Information of Business

Technology creates electronic storages system to protect the data of the company and it’s important for business integrity and process. From technology, we can get a lot of information for developing small business. For example : The youth entrepreneur who operated the business of creative cakes can share tips and trick via site and she can get many information from the other young entrepreneur who maintain the same business.

B.     The Risk of Technopreneurship in Developing Youth Small Business

The entrepreneurs must notice about the risk of technology-entrepreneurship (technopreneurship) in developing youth small business. The young entrepreneurs must be aware and consider about these risk against the advantages before they apply the idea of technopreneurship to their business.

There are some risks of techno-preneurship in developing small businesses established by youth are as follows :

1. Expense Increasing

This is the first disadvantages, because technology related to technology and business. Technology is not cheap enough , and the entrepreneurs must be very professionally to utilize technology as wise as possible. Moreover for the youth in which their financial condition is still dependent to the parent to start their business

2.Error Making

Technology in the workplace is common. This may lead to employees not catching errors that might have been caught had the task been done manually. It means that some of digital error may happen when we entry the wrong data.

3.Ethics Declining

For instance, some of entreprenurs may choose to surf the Internet for personal reasons while on improving their business time. It means that the entrepreneur can be very inconsiderate because they cannot differenciate when the time for personal importance and business things.

Absolutely there are some risk about the influence of technology-entrepreneurship in business. It can be solve if there is a discipline habit generated to the entrepreneur and the employee.

C.    Future Implications of Technopreneurship in Youth Small Business

Future Implication is how to make existence of a business can thrive in the future with technology. In this era, many young entrepreneurs has appeared. The mindset of the youths which are eager to be creative, innovative, able make something “ out of the box” little but influential. It means tha the future impacts of technopreneurship must be considered as the expectations to make the youth become more empowered to create innovation in developing small business through the technology and entrepreneurship.

 

III.   CONCLUSION

There are three main conclusion about the role and impact of technology-entrepreneurship (technopreneurship) in developing small business which is established by the young entrepreneur (high school or college student) :

  1. The small businesses which are established and maintained by youth especially in Indonesia.  Because it is known that the youth are the key point to make Indonesia better one step ahead. Youth are the agent of change who eager to be energetic, creative, innovative to start the simple-small business in order to empower the other youth and society around them.
  2. The technopreneurship can be applied in terms of small business of youth categorized to Youth Small Business On Technological Based andYouth Small Business which Utilize Technology as Medium To Ease Its Business
  3. There are some advantages which can be taken by applying the technology-entrepreneurship (technopreneurship) in developing youth small business in terms of profit and revenue making, innovation and creativity generating, simple and fastest way of promotion & information shared and efficiency of business process
  4. By understanding some of the bad possibilities (risk) about the ethics, expense and error making that are generated by applying technopreneurship to the youth small business. We are able to avoid this kind of risk by being aware and careful to make decisions within maintaining our business.

REFERENCE

  1.       Jawa Pos Edisi 18 Desember 2011 : Wirausahawan Muda ITS 2011
  2.       Basic Culture of Technology-Entrepreneurship Articles
  3.       Wirausaha Muda Mandiri 2011- 2012 ;Rhenald Kasali (Gubes Fakultas Ekonomi UI): Sponsored by  Bank
    Mandiri Indonesia
  4.       United States – Small Business Administration Program Official Site 
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