1. 1
Entrepreneur-Engineer:Entrepreneur-Engineer:
Relevance in a GlobalizedRelevance 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 21stA 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

3. 33
The Engineers and EntrepreneursThe Engineers and Entrepreneurs
 When Henry Ford decided to produce his famous V-8When Henry Ford decided to produce his famous V-8
motor, he chose to build an engine with the entiremotor, he chose to build an engine with the entire
eight cylinders cast in one block, and instructed hiseight 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 wasBut 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 simplyFord 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 toImportance of Entrepreneurship to
EngineersEngineers
 During a public lecture delivered at theDuring 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 Viceand Past Vice
Chancellor of the University of Ibadan raisedChancellor of the University of Ibadan raised
the following issues:the following issues:
 Nigerian universities and polytechnicsNigerian universities and polytechnics
produce more than 80.000 graduates yearly,produce more than 80.000 graduates yearly,
less than 10% of which are employedless than 10% of which are employed
 A reasonable percentage not gainfullyA reasonable percentage not gainfully
employed because they are not foundemployed because they are not found
employable.employable.

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Importance of Entrepreneurship toImportance of Entrepreneurship to
Engineers Continued….Engineers Continued….
 BamiroBamiro concluded that:concluded that:
 This is because an average Nigerian graduateThis is because an average Nigerian graduate
engineer is equipped with the mathematics ofengineer is equipped with the mathematics of
engineering science but lack the knowledge ofengineering science but lack the knowledge of
economics and business management.economics and business management.
 He has knowledge but he is not prepared toHe has knowledge but he is not prepared to
leverage on a knowledge-base driven globalleverage on a knowledge-base driven global
economy (A form of godliness but denying theeconomy (A form of godliness but denying the
power there of!)power there of!)
 He has NOT been prepared to transform hisHe has NOT been prepared to transform his
technical knowledge into money making enterprisetechnical knowledge into money making enterprise

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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 justThe industrial sector is operating at just
about 33% production capacity because ofabout 33% production capacity because of
high cost of production (from high energyhigh 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 bringWhat 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 ofCan 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 PeterPeter
DruckerDrucker in his book ‘The Age of Discontinuity’in his book ‘The Age of Discontinuity’
 Meaning the use of knowledge to produce economicMeaning the use of knowledge to produce economic
benefitsbenefits
 Especially in terms of high-technology businesses such asEspecially in terms of high-technology businesses such as
computer software, telecommunications and virtualcomputer 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 isThe founder and head of the enterprise is Mark ZuckerbergMark Zuckerberg..
 The idea came to him after an entrepreneurship class atThe idea came to him after an entrepreneurship class at
Harvard.Harvard.
 At the end of January 2014, 1.23 billion users were activeAt the end of January 2014, 1.23 billion users were active
on the website every month its market capitalization hadon 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 innovativeA business product, as educational and innovative
intellectual products and services can be exported for aintellectual 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 electronicsold, 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, informationUnlike most resources that deplete when used, information
and knowledge can be shared, and actually grow throughand 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’ overDeveloped countries having a ‘field day’ over
the developing countries both economically andthe developing countries both economically and
technologicallytechnologically
 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 becan be
imported rather than producing them locallyimported rather than producing them locally

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EntrepreneurshipEntrepreneurship
EntrepreneurshipEntrepreneurship is the practice ofis the practice of
• starting new organizations or reactivatingstarting new organizations or reactivating
mature onesmature ones
• in response to major identifiedin response to major identified
opportunities.opportunities.
 Can range fromCan range from
• solo projects tosolo projects to
• major undertakingsmajor undertakings
leading to creation of many job opportunitiesleading to creation of many job opportunities
and creation of new products and businessand creation of new products and business

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Entrepreneur-EngineersEntrepreneur-Engineers
ToTo engineersengineers,, entrepreneurshipentrepreneurship
(specifically) is the integration of(specifically) is the integration of
• business managementbusiness 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 ANEXPECTATIONS FROM AN
ENTREPRENEURENTREPRENEUR
An entrepreneur shouldAn entrepreneur should
 be willing and able to convert a new ideabe 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 ofbe 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 andintroduce new technologies, products and
services.services.

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DUAL ROLE OF ANDUAL ROLE OF AN
ENTREPRENEUR-ENGINEERENTREPRENEUR-ENGINEER
 a technological professionala technological professional
 with entrepreneurial skillswith entrepreneurial skills
He must be able to integrateHe must be able to integrate
 business management skills withbusiness management skills with
 technical skills.technical skills.

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ADVANTAGES OFADVANTAGES 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 numberCreation of job opportunities, the number
depending on the size of, and availabledepending on the size of, and available
resources to, the entrepreneur;resources to, the entrepreneur;
 Healthy competition, leading to higherHealthy competition, leading to higher
product quality;product quality;
 Availability of more goods and services;Availability of more goods and services;
 Development of more industries, particularlyDevelopment of more industries, particularly
in rural areas;in rural areas;
 Development of entrepreneurial qualities andDevelopment 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 toyam exported to USA, UK and Canada to
produce African food.produce African food.
• cola, Pando yam, okrocola, Pando yam, okro
 Small Scale industriesSmall 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 TOCHALLENGES TO
ENGINEERING ENTREPRENEURSHIP INENGINEERING ENTREPRENEURSHIP IN
NIGERIANIGERIA
FundingFunding
 Poorly Managed Pension SchemePoorly Managed Pension Scheme
 Poorly Operated Poverty AlleviationPoorly 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 withLoan from bank from existing properties with
CofOCofO
 Gratuity from retirement benefitsGratuity from retirement benefits
 Security exchanges (e.g. buying/selling ofSecurity 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-ENGINEERAN ENTREPRENEUR-ENGINEER
MUST BE:MUST BE:
 Able to Deal with uncertainty and ambiguityAble to Deal with uncertainty and ambiguity
(risk taking);(risk taking);
 Able to Understand and speak the languageAble to Understand and speak the language
of other professionals, especiallyof other professionals, especially
accountants, economists and other socialaccountants, 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 financialAble 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 ANQUALITIES OF AN
ENTREPRENEUR-ENGINEERENTREPRENEUR-ENGINEER
 Possess analytical and planning skills;Possess analytical and planning skills;
 Work well in dynamic and rapidly changingWork 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 thingsBe 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 ANQUALITIES OF AN
ENTREPRENEUR-ENGINEERENTREPRENEUR-ENGINEER
 Good record keeping (of stocks, salesGood record keeping (of stocks, sales
expenditures)expenditures)
 Understand market dynamics; (eg. Less packageUnderstand market dynamics; (eg. Less package
water in raining season and more broiler chickenwater 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
TheThe Entrepreneur-EngineerEntrepreneur-Engineer shouldshould
 ensure that the enterprise is located asensure that the enterprise is located as
close as possible to the source of localclose as possible to the source of local
materials;materials;
 focus on the needs of the populace forfocus on the needs of the populace for
acceptability and marketability;acceptability and marketability;
 operate in such a way as to encourageoperate in such a way as to encourage
others to emulate him.others to emulate him.
 Introduce innovations based on hisIntroduce innovations based on his
engineering and technical backgroundengineering and technical background..

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CONCLUSIONCONCLUSION
 An ENTREPRENEUR-ENGINEER is one whoAn ENTREPRENEUR-ENGINEER is one who
combines his/her technical skills with businesscombines his/her technical skills with business
knowledge to see opportunities and convertknowledge to see opportunities and convert
such to create jobs for otherssuch to create jobs for others
 engineering curricula in higher institutions to beengineering curricula in higher institutions to be
re-designed in such a way as to exposere-designed in such a way as to expose
engineering students to entrepreneurial skillsengineering students to entrepreneurial skills
through introduction of business-relatedthrough introduction of business-related
courses.courses.
 To be relevant in a Globalized Knowledge-DrivenTo be relevant in a Globalized Knowledge-Driven
Economy our engineers (especially the youngerEconomy 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