Relevance of Engineering Entrepreneurship

NSE Industrial Div. Intn'l Conf/AGM, Lagos, 4-6 Oct. 2011

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RELEVANCE OF

ENGINEERING ENTREPRENEURSHIP

Yinusa A. ADEDIRAN (FNSE, MIEEE)

Department of Electrical & Electronics EngineeringUniversity of Ilorin, Ilorin, NigeriaEmail: [email protected]


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INTRODUCTION

Because of Globalisation: Developed countries having a ‘field day’ over

the developing countries both economically and technologically

Nigeria becoming increasingly ‘globalised’ Industries are closing down due to:

– high cost of production– ease with which finished products can be

imported rather than producing them locally


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INTRODUCTION

This paper has adduced lack of entrepreneurship

training in the curriculum of our tertiary institutions as the main cause

suggests introduction engineering entrepreneurship courses throughout the last three or four semesters in the universities and polytechnics


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DEFINITION

Entrepreneurship is (generally) the practice of – starting new organisations or reactivating mature

ones– in response to major identified opportunities.

Can range from – solo projects to – major undertakings

leading to creation of many job opportunities and creation of new products and business


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DEFINITION

To engineering graduates, entrepreneurship (specifically) is

the integration of – business management – with engineering/technical skills

leading to the formation of

engineer-entrepreneurs


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EXPECTATIONS FROM AN ENTREPRENEUR

An entrepreneur should be willing and able to convert a new idea or invention

into a success innovation, be able to develop new markets of customers and

buyers, discover new sources of materials, mobilize capital resources (land, machines,

buildings, money, humans), introduce new technologies, products and services.


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DUAL ROLE OF AN ENGINEER-ENTREPRENEUR

a technological professional with entrepreneurial skills

He must be able to integrate business management skills with technical skills.


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Japan’s Statistics

Factories with less than 20 employees account for

up to 87.3% of total number of factories, 20.1% of total workforce, and 12.6% of the total national output.

Also, the Indian economy has its greatness in the proper attention paid to engineering entrepreneurship


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ADVANTAGES OF ENGINEERING ENTREPRENEURSHIP

Self-employment, leading to job satisfaction, flexibility in time and resource management;

Creation of job opportunities, the number depending on the size of, and available resources to, the entrepreneur;

Healthy competition, leading to higher product quality; Availability of more goods and services; Development of more industries, particularly in rural

areas; Development of entrepreneurial qualities and attitudes.


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IMPERATIVE OF ENGINEERING ENTREPRENEURSHIP IN NIGERIA

Developed countries are continually searching for markets for their products

Developing countries are becoming dumping ground for goods produced in other parts of the world because they are neck-deep in solving – complex political crises and – socio-economic problems


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IMPERATIVE OF ENGINEERING ENTREPRENEURSHIP IN NIGERIA

Nigerian universities and polytechnics produce more than 80.000 graduates yearly, less than 10% of which are employed

A reasonable percentage not gainfully employed because they are not found employable.

The industrial sector is operating at just about 33% production capacity because of high cost of production (from high energy cost, multiple taxation, high import tariff on raw materials, corruption, etc.)


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CHALLENGES TO ENGINEERING ENTREPRENEURSHIP IN NIGERIA

Poorly Managed Pension Scheme Poorly Operated Poverty Alleviation

Programmes (NAPEP, NDE, etc.) Minimum Academic Standard of Higher

Institutions Multiple Taxations High Import Tariffs


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SOURCES OF FUNDING

Personal savings Loans from friends, relatives, relevant agencies/banks Gratuity from retirement benefits Security exchanges (e.g. buying/selling of shares and

bonds) Profit plough-back Trade credits Hire purchase Mortgages Sale of securities


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QUALITIES OF AN ENGINEER-ENTREPRENEUR

Deal with uncertainty and ambiguity (risk taking); Understand and speak the language of other

professionals, especially accountants, economists and other social scientists);

Team player; Convincing speaker and attentive listener; Creative and inquisitive mind; Adequate computer skills; Understand economic and financial aspects of an

engineering effort; Able to design sound business plan;


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Possess analytical and planning skills; Work well in dynamic and rapidly changing environment; Work under pressure and in short time frames; Work effectively across multiple organizations, boards,

companies, and departments; Work with specialists of different mentalities, origins, and

cultural backgrounds; Be willing to learn and grasp new things (approaches, ideas); Good manager of resources (money, materials, machines,

etc.);


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Good record keeping (of stocks, sales expenditures) Understand market dynamics; Good communication skills, both oral and written; A psychologist; People-oriented; Have inquisitive mind; Goal-oriented; Good negotiating skills; Understand state-of-the-art in related areas.


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TRAINING IN ENGINEERING ENTREPRENEURSHIP

Heartwarming and a good beginning that entrepreneurship courses have been introduced into the curriculum of all tertiary institutions

Growth of the enterprise depends on– ability to start-off, – Ability to manage effectively and efficiently the

resources at his/her disposal,– creativity to make something different from others


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Some recommended courses: Engineering Economics Design of Business Plan Leadership Human Resources Management Technological Entrepreneurship Cost Control Financial Accounting and Reporting


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Some recommended courses (contd) Engineering Management Legal Aspects of Entrepreneurship Financial Management Production and Inventory Control Maintenance Engineering New Product Development Marketing Management


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RECOMMENDATIONS

Major stakeholders in the development of entrepreneurship culture are

the various levels of government, the professional bodies, and the entrepreneur himself/herself

each with different, but complementing, roles


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RECOMMENDATIONS

Local Government : should provide the enabling environment that will

make it easy for the entrepreneur to set up and operate

The entrepreneur should, for example, have easy and cheap access to land, water,

electricity, etc. not be stifled with unnecessary taxes and levies.


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RECOMMENDATIONS

State Government:

should encourage local governments to assist interested entrepreneurs


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RECOMMENDATIONS

Federal Government should set up a functional regulatory

framework to promote engineering entrepreneurship

should harmonize all forms of taxes and levies in order to prevent multiple taxations


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RECOMMENDATIONS

Professional Bodies (COREN and NSE):

should ensure that adequate number of techno-entrepreneurship

courses is introduced into the curriculum of polytechnics and universities;

continuing education courses/workshops are mounted by the professional bodies at least twice yearly.


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RECOMMENDATIONS

The Entrepreneur should ensure that the enterprise is located as close

as possible to the source of local materials; focus on the needs of the populace for

acceptability and marketability; operate in such a way as to encourage

others to emulate him.


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CONCLUSION

An engineer-entrepreneur is one who combines his/her technical skills with business knowledge to see opportunities and convert such to create jobs for others

engineering curricula in higher institutions to be re-designed in such a way as to expose engineering students to entrepreneurial skills through introduction of business-related courses.

All stakeholders must play their role with the commitment it deserves.


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THANK YOU ALL

FOR YOUR ATTENTION

Relevance of Engineering Entrepreneurship

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