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Entrepreneur-Engineer: Entrepreneur-Engineer: Relevance in a Globalized Relevance in a Globalized

Knowledge-Driven EconomyKnowledge-Driven Economy

Adelere Ezekiel Adeniran, Adelere Ezekiel Adeniran, Ph.D., FNSEPh.D., FNSE

May 3, 2014May 3, 2014

A lecture Delivered at the Investiture of the 21st A lecture Delivered at the Investiture of the 21st Chairman of the Nigerian Society of Engineers, Chairman of the Nigerian Society of Engineers,

IbadanIbadan

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Protocols

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The Engineers and EntrepreneursThe Engineers and Entrepreneurs

When Henry Ford decided to produce his famous V-8 When Henry Ford decided to produce his famous V-8 motor, he chose to build an engine with the entire motor, he chose to build an engine with the entire eight cylinders cast in one block, and instructed his eight cylinders cast in one block, and instructed his engineers to produce a design for the engine. engineers to produce a design for the engine.

The design was placed on paper.The design was placed on paper.

But the engineers agreed that, to a man, that it was But the engineers agreed that, to a man, that it was simply impossible to cast an eight-cylinder engine-simply impossible to cast an eight-cylinder engine-block in one piece.block in one piece.

Ford replied, ''Produce it anyway”.Ford replied, ''Produce it anyway”.

Ford was an entrepreneur, his engineers are simply Ford was an entrepreneur, his engineers are simply designers who were not business oriented.designers who were not business oriented.

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Importance of Entrepreneurship to Importance of Entrepreneurship to EngineersEngineers

During a public lecture delivered at the During a public lecture delivered at the Federal University of Technology Akure, Federal University of Technology Akure, Prof. Prof. O. A. Bamiro, O. A. Bamiro, FNSE, FAEngFNSE, FAEng and Past Vice and Past Vice Chancellor of the University of Ibadan raised Chancellor of the University of Ibadan raised the following issues:the following issues:

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

A reasonable percentage not gainfully A reasonable percentage not gainfully

employed because they are not found employed because they are not found employable. employable.

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Importance of Entrepreneurship to Importance of Entrepreneurship to Engineers Continued….Engineers Continued….

BamiroBamiro concluded that: concluded that:

This is because an average Nigerian graduate This is because an average Nigerian graduate engineer is equipped with the mathematics of engineer is equipped with the mathematics of engineering science but lack the knowledge of engineering science but lack the knowledge of economics and business management.economics and business management.

He has knowledge but he is not prepared to He has knowledge but he is not prepared to leverage on a knowledge-base driven global leverage on a knowledge-base driven global economy (A form of godliness but denying the economy (A form of godliness but denying the power there of!)power there of!)

He has NOT been prepared to transform his He has NOT been prepared to transform his technical knowledge into money making technical knowledge into money making enterpriseenterprise

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Why Entrepreneur Engineer? Because the modern world is engineering.

From waking up in the morning to going back to bed at night, a man is relying on one product of engineering or the other.

Prof. Ayodele Awojobi once said, “Strip a man of the products of engineering or technology, then the man will become completely naked, sickly, useless and fit only for the graveyard”

So, if we are living in an Engineering world, why can’t engineers control the business world? Why can’t we be the Bill Gates, the Dangote or the … of this world>

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Why Entrepreneur Engineer? The industrial sector is operating at just The industrial sector is operating at just

about 33% production capacity because of about 33% production capacity because of high cost of production (from high energy high cost of production (from high energy cost, high import tariff on raw materials, cost, high import tariff on raw materials, etc.)etc.)

What design innovations can we bring What design innovations can we bring about to reduce or avoid use of energy?about to reduce or avoid use of energy?

Can we use local materials instead of Can we use local materials instead of imported materials? imported materials?

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Example: Energy Saving Waste Treatment Plant

(Constructed Wetland)

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Knowledge-Driven EconomyKnowledge-Driven Economy

The phrase was popularized if not invented byThe phrase was popularized if not invented by Peter Peter DruckerDrucker in his bookin his book ‘The Age of Discontinuity’ ‘The Age of Discontinuity’

Meaning the use of knowledge to produce economic Meaning the use of knowledge to produce economic benefitsbenefits

Especially in terms of high-technology businesses such as Especially in terms of high-technology businesses such as computer software, telecommunications and virtual computer software, telecommunications and virtual services, as well as educational and research institutions. services, as well as educational and research institutions.

There is an knowledge-driven enterprise called “Facebook” There is an knowledge-driven enterprise called “Facebook” it is a virtual enterprise founded on February 4, 2004. it is a virtual enterprise founded on February 4, 2004.

The founder and head of the enterprise is The founder and head of the enterprise is Mark Zuckerberg.. The idea came to him after an entrepreneurship class at The idea came to him after an entrepreneurship class at

Harvard. Harvard. At the end of January 2014, 1.23 billion users were active At the end of January 2014, 1.23 billion users were active

on the website every month its market capitalization had on the website every month its market capitalization had risen to over $134 billion.risen to over $134 billion.

He is not an Engineer but he used engineers and products of engineering to build and control the fastest growing knowledge-based business in the world.

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Why Knowledge-Driven Economy?Why Knowledge-Driven Economy?

The effect of location is diminished-GlobalizationThe effect of location is diminished-Globalization A business product, as educational and innovative A business product, as educational and innovative

intellectual products and services can be exported for a intellectual products and services can be exported for a high value return. high value return.

As a result, goods and services can be developed, bought, As a result, goods and services can be developed, bought, sold, and in many cases even delivered over electronic sold, and in many cases even delivered over electronic networks. (Amazon, eBay)networks. (Amazon, eBay)

The economics is not of scarcity, but rather of abundance. The economics is not of scarcity, but rather of abundance. Unlike most resources that deplete when used, information Unlike most resources that deplete when used, information and knowledge can be shared, and actually grow through and knowledge can be shared, and actually grow through application.application.

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GlobalizationGlobalization

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

the developing countries both economically the developing countries both economically and technologicallyand technologically

Nigeria becoming increasingly ‘globalised’Nigeria becoming increasingly ‘globalised’

Industries are closing down due to:Industries are closing down due to:• high cost of productionhigh cost of production• ease with which finished productsease with which finished products can be can be

imported rather than producing them locallyimported rather than producing them locally

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EntrepreneurshipEntrepreneurship

EntrepreneurshipEntrepreneurship is the practice of is the practice of • starting new organizations or reactivating starting new organizations or reactivating

mature onesmature ones• in response to major identified in response to major identified

opportunities.opportunities. Can range from Can range from

• solo projects to solo projects to • major undertakingsmajor undertakings

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

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Entrepreneur-EngineersEntrepreneur-Engineers

To To engineersengineers, , entrepreneurshipentrepreneurship (specifically) is the integration of (specifically) is the integration of • business management business management • with engineering/technical skillswith engineering/technical skills

leading to the formation of anleading to the formation of an

Entrepreneurs-engineerEntrepreneurs-engineer

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EXPECTATIONS FROM AN EXPECTATIONS FROM AN ENTREPRENEURENTREPRENEUR

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

or invention into a success innovation,or invention into a success innovation, be able to develop new markets of be able to develop new markets of

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

machines, buildings, money, humans), machines, buildings, money, humans), introduce new technologies, products and introduce new technologies, products and

services. services.

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DUAL ROLE OF AN DUAL ROLE OF AN ENTREPRENEUR-ENGINEERENTREPRENEUR-ENGINEER

a technological professional a technological professional with entrepreneurial skills with entrepreneurial skills

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

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ADVANTAGES OF ADVANTAGES OF ENGINEERING ENTREPRENEURSHIPENGINEERING ENTREPRENEURSHIP

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

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

Healthy competition, leading to higher product Healthy competition, leading to higher product quality;quality;

Availability of more goods and services;Availability of more goods and services; Development of more industries, particularly in Development of more industries, particularly in

rural areas;rural areas; Development of entrepreneurial qualities and Development of entrepreneurial qualities and

attitudes.attitudes.

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Exportation OpportunitiesExportation Opportunities

ExportationExportation• Charcoal exportation,Charcoal exportation,• yam exported to USA, UK and Canada to yam exported to USA, UK and Canada to

produce African food.produce African food.• cola, Pando yam, okrocola, Pando yam, okro

Small Scale industries Small Scale industries • poultry, poultry, • PiggeryPiggery• Water packaging and bottlingWater packaging and bottling• Inorganic fertilizers from waste productsInorganic fertilizers from waste products• Edible water bottles?Edible water bottles?

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Personal Experience

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CHALLENGES TO CHALLENGES TO ENGINEERING ENTREPRENEURSHIP IN ENGINEERING ENTREPRENEURSHIP IN

NIGERIANIGERIA

FundingFunding Poorly Managed Pension SchemePoorly Managed Pension Scheme

Poorly Operated Poverty Alleviation Poorly Operated Poverty Alleviation Programmes (NAPEP, NDE, etc.)Programmes (NAPEP, NDE, etc.)

Multiple TaxationsMultiple Taxations

High Export ChargesHigh Export Charges

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SOURCES OF FUNDINGSOURCES OF FUNDING

Personal savingsPersonal savings Loans from friends and relativesLoans from friends and relatives Loan from bank from existing properties with Loan from bank from existing properties with

CofOCofO Gratuity from retirement benefitsGratuity from retirement benefits Security exchanges (e.g. buying/selling of Security exchanges (e.g. buying/selling of

shares and bonds)shares and bonds) Profit plough-backProfit plough-back Facilities Hire-Out (eg Pultry Pen)Facilities Hire-Out (eg Pultry Pen) MortgagesMortgages Sale of securitiesSale of securities

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AN ENTREPRENEUR-ENGINEER AN ENTREPRENEUR-ENGINEER MUST BE:MUST BE:

Able to Deal with uncertainty and ambiguity Able to Deal with uncertainty and ambiguity (risk taking);(risk taking);

Able to Understand and speak the language Able to Understand and speak the language of other professionals, especially of other professionals, especially accountants, economists and other social accountants, economists and other social scientists);scientists);

Team player;Team player; Convincing speaker and attentive listener;Convincing speaker and attentive listener; Creative and with inquisitive mind;Creative and with inquisitive mind; Computer Literate with adequate skills;Computer Literate with adequate skills; Able to Understand economic and financial Able to Understand economic and financial

aspects of an engineering effort;aspects of an engineering effort; Able to design sound business plan;Able to design sound business plan;

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QUALITIES OF AN QUALITIES OF AN ENTREPRENEUR-ENGINEERENTREPRENEUR-ENGINEER

Possess analytical and planning skills;Possess analytical and planning skills; Work well in dynamic and rapidly changing Work well in dynamic and rapidly changing

environment;environment; Work under pressure and in short time frames;Work under pressure and in short time frames; Work effectively across multiple organizations, Work effectively across multiple organizations,

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

origins, and cultural backgrounds;origins, and cultural backgrounds; Be willing to learn and grasp new things Be willing to learn and grasp new things

(approaches, ideas);(approaches, ideas); Good manager of resources (money, materials, Good manager of resources (money, materials,

machines, etc.);machines, etc.);

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QUALITIES OF AN QUALITIES OF AN ENTREPRENEUR-ENGINEERENTREPRENEUR-ENGINEER

Good record keeping (of stocks, sales Good record keeping (of stocks, sales expenditures)expenditures)

Understand market dynamics; (eg. Less package Understand market dynamics; (eg. Less package water in raining season and more broiler chicken water in raining season and more broiler chicken during Christmas and New Year festivities)during Christmas and New Year festivities)

Good communication skills, both oral and written;Good communication skills, both oral and written; A psychologist;A psychologist; People-oriented;People-oriented; Have inquisitive mind;Have inquisitive mind; Goal-oriented;Goal-oriented; Good negotiating skills;Good negotiating skills; Understand state-of-the-art in related areas.Understand state-of-the-art in related areas.

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RECOMMENDATIONSRECOMMENDATIONS

The The Entrepreneur-EngineerEntrepreneur-Engineer should should ensure that the enterprise is located as ensure that the enterprise is located as

close as possible to the source of local close as possible to the source of local materials;materials;

focus on the needs of the populace for focus on the needs of the populace for acceptability and marketability;acceptability and marketability;

operate in such a way as to encourage operate in such a way as to encourage others to emulate him.others to emulate him.

Introduce innovations based on his Introduce innovations based on his engineering and technical backgroundengineering and technical background..

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CONCLUSIONCONCLUSION An ENTREPRENEUR-ENGINEER is one who An ENTREPRENEUR-ENGINEER is one who

combines his/her technical skills with business combines his/her technical skills with business knowledge to see opportunities and convert knowledge to see opportunities and convert such to create jobs for otherssuch to create jobs for others

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

To be relevant in a Globalized Knowledge-Driven To be relevant in a Globalized Knowledge-Driven Economy our engineers (especially the younger Economy our engineers (especially the younger generation must be Entrepreneur-Engineers.generation must be Entrepreneur-Engineers.

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THANK YOU ALLTHANK YOU ALL

FOR YOUR ATTENTIONFOR YOUR ATTENTION