Technology-based entrepreneurship, or simply technological entrepreneurship, in particular, is a strong driving force for socio-economic growth in the global economy. Technological entrepreneurship is a vital ingredient in any effective National or Regional Innovation System. A recent research on the status of Technological Entrepreneurial Attitude in Nigerian Tertiary Institutions revealed that majority of undergraduates in Nigeria indicated a preference for technological entrepreneurship but much fewer of them has actually practiced entrepreneurship The major constraints identified are poor funding, inadequate preparation through training and institutional weaknesses expressed in the inadequacy of government support to young and aspiring entrepreneurs .More detailed analysis revealed that 1.4% of them showed interest in both technological and non-technological entrepreneurship. While there might be those with unclear preferences, these results imply that most of the students have a preference for entrepreneurship and for technology-based businesses but the expression of these interests in practice is rather low. Ensuring, first and foremost, that this high level of interest is sustained and that it is actually expressed in business start-ups, should be the target of any entrepreneurship-related policy intervention.
Furthermore, we note that studies on women technological entrepreneurship in Nigeria is concentrated on the informal sector. For instance, informal economic activities by women in Nigeria encompass a wide range of small-scale, largely self-employment businesses. The study reported that 37% of the respondents were engaged in technology-based ventures including food, beverage and tobacco production, water processing and packaging, mining and quarrying (excluding petroleum), building and construction, wood-work and furniture making, garment making, metal fabrication and iron works, among others. On the other hand, 63% of the respondents had non-technological businesses including education services, health services, counseling services, retail trade, transport, restaurant, financial outfits, among others. This suggests a higher prevalence of non-technology-based entrepreneurship among women, and indicates the need for interventions directed at the development of technology-based entrepreneurship in the country.
Advantages of Promoting ESTEM includes:
1.Entrepreneurial Motivation and Challenges
2.High Potential Opportunity
A new technology-based venture is described as having a high potential opportunity if it is capable of creating new value for its customers, it has a significant level of technology understanding which is difficult to replicate and can often be protected (patented), it has a significant first mover advantage, it has a level of scalability, it creates a barrier to entry, and it also has a high level of initial risk which can be translated into high levels of return.
Technological entrepreneurship is described as a technology-intensive opportunity involving a process of problem solving, raising and safeguarding the quality of life, needing technical skills and applications, identifying potential market, improvement in quality of products in order to improve competitiveness of the firm with expectation of saving in process cost. Furthermore, the sufficient reason for embarking on technological entrepreneurship in borne out of the need to commercialize significant innovations that are expected to guarantee suppliers of materials, long-term stability of firms and increase output.
4.Unique Technology Capable of Driving a New Business
As firms can be viewed as bidding and competing for customers’ purchases, and markets can be evaluated based on the extent to which the profitability of a firm hinges on meeting consumers demands if possible, better than its rivals. Consequently, aside from having more share of the market through aesthetic changes, price reduction, better performance and so on, technological entrepreneurship has the characteristic of being able to advance new technologies that can institutionalize new ventures that adequately meet consumers’ need.
5.High Risk of Failure
One of the true measures of success for technological entrepreneurs is the extent to which they are able to develop and bring to market radically innovative new products. Developing new products is especially a risky business endeavor, because a technically feasible innovation might not be economically profitable, and the product may not survive the commercialization process. Literature reported that success rates for new inventions ranged from 1% to 85% [6-8]. From their observations, less than 2% of potential technology-based venture ideas (technology innovations) end up being registered as patent or intellectual property. Also less than 1% of business plans received by venture capitals get funded. In fact, many innovations that should have been commercialized into a technology-based venture end up in shelves. For instance, it was found that there is lack of faith in the Nigerian Patent Law, which in turn provided little protection for local innovations Innovators consider this a major problem in the commercialization of their products and processes; 89% had not explored the use of the patent law, even though the law had been enforced since 1970 and 6644 patents have been registered with only 177 owned by Nigerians.