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Advances in Environmental Biology, 7(8): 1421-1426, 2013

ISSN 1995-0756

This is a refereed journal and all articles are professionally screened and reviewed ORIGINAL ARTICLE
Impact of Information Technology On the Entrepreneurship Development

Arvin Tavakoli

Department of education, Marvdasht branch, Islamic Azad University, Marvdasht, Iran

Arvin Tavakoli: Impact of Information Technology On the Entrepreneurship Development

ABSTRACT

Information and communication technology is advancing rapidly and the world community has undergone a
fundamental changes. Activities, jobs, skills, cultures, needs and have changed and been affected by this
technology. Entrepreneurship is undoubtedly a major contribution and has had a special role in the development
of these technologies; however, these technologies also have an impact on entrepreneurship and have created a
sense of modern entrepreneurship. In this context, information and communication are two basic tools needed
for entrepreneurial activity. Nowadays information technology has spread widely in society and is integrated into
all aspects of life. Entrepreneurial is process of creating something new, with time and effort and financial,
psychological and social risks to obtain financial resources, job satisfaction and independence. In fact,
information technology is considered as the engine driving wheel to move while employment caused growth and
dynamism in economy and create a new kind of economic called the knowledge-based economy. The purpose of
this paper is review of information technology and emphasizes the role of entrepreneurial as one of the solutions
to unemployment and entrepreneurship in communities that the vast majority of young people despite having the
talent and enough energy still suffer from the problem of unemployment.

Key words: Information technology, entrepreneurship, knowledge-based economy, job creation,

entrepreneurship development

as the focus of development, have given so much. So Introduction

that each country's national and regional projects for
the development of information technology has been Entrepreneurship can indeed play an important
implemented. Talk about information technology and role in economic growth, job creation and social
its management in the country is a very important welfare. Vast changes that occurred in the current era
issue which study of it not only necessary for our in the international environment, changes in the
country but it seems necessary and obligatory and transition from an industrial society to an information
such studies can be pursued only in the light of the society has created as far as it is said,
overall macroeconomic policy in dealing with the entrepreneurship is the engine of economic
phenomenon can be traced and maximum utilization development. Certainly, identifying needs and
of new technologies to develop countries according proposing solutions without information is not
to national values advance toward perfection. possible. Thus information and knowledge like
Modern technologies provide faster access and communications is the necessity of any
higher quality to information. Email is the most entrepreneurial activity. New technology has created
common application of new information significant changes in access information and has
technologies, so that individuals and organizations provided more robust communication infrastructure.
can interact with each other in a cost effective These technologies have raised importance and value
manner. A second important application of new of information and communications. As technology
information technologies is the World Wide Web that has affected many issues such as education,
enables people to access information. Information entrepreneurship undoubtedly has benefited well as
communication technology (ICT) has the potential to other advantages of this technology. Today this
penetrate underserved areas, facilitate the technology impacts on social, cultural and economic
development of local capacity and provide faster life aspects of individuals and communities so that it
transition of information about technical assistance cannot be neglected. In the past two decades also
and human needs such as food, health, agriculture advanced industrial countries with new technology,

Corresponding Author
Arvin Tavakoli, Department of education, Marvdasht branch, Islamic Azad University, Marvdasht,
Iran
E-mail: [email protected]: Tel: +98- 9177077370
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Adv. Environ. Biol., 7(8): 1421-1426, 2013

thinkers of recent decades, the main driving force of and water. Through the establishment of rural
entrepreneurs in economic development and his role information centers, information and communication
is to innovate or create new combinations of technology can create job opportunities in rural areas.
materials. According to Schumpeter, the Such centers could have resolved the gap between
entrepreneurs essentially have a management or rural and urban communities and reduce migration
decision-making role. An entrepreneur is someone problems from rural to urban areas. [12].
who possesses new ideas and innovation, and through
the establishment of a business (company) and accept Problem statement and research importance:
the risk, introducing a new product or service to the
community [4] Given that entrepreneurship and especially the
In an overall view, entrepreneurship can be impact of technology, it has a distinct role and
divided into two general ways: evolves in line with changes in the business and
- Individual entrepreneurs affected in optimal use of all resources and assets of
- Organizational entrepreneurs. communities. On the other hand, in most levels and
If the innovation and manufacture of a new sectors of society who are involved in education;
product or new service to the market is result of an choose this subject could represent a direct and
individual, it is called individual entrepreneurs, if it is indirect effect on community’s use.
a result of a team in an organization, it is called
organizational entrepreneurs. History and research background:
Many entrepreneurs start their business in the
form of creating small and medium enterprises Entrepreneurship can be defined as the process
(SME). It has major contribution in industrial of privatization to transform the business into venture
development and job creation than large enterprises or to increase and diversify the investments or
have high flexibility. Therefore, many governments business units with high growth potential
are convinced that will provide the development [4].Entrepreneurship is a topic that is attracted
platform for small and medium units in incubators, educational circles of the world from the late
industrial parks and technology and support them twentieth century. Entrepreneurship literature review
until they enter the market as an independent confirms that this term for the first time developed in
company. In Southeast Asian countries, 95% of all economic theory by economists and then enters to
industrial and economic foundations is SEM and as a schools and other theories of science. Cantillon, who
fundamental and impressive pillar of the economy coined the term entrepreneurship, knows
and employment in these countries is considered entrepreneur as a venture person who buys goods
[10]. with specified cost and sells with undisclosed price.
Knows entrepreneur as a coordinator and
Effective features of information technology in incorporator of production factors, but he does not
entrepreneurship: consider the special features. In other words, a person
who incorporates the production factors (land, labor
Information technology with various features and capital) for production, business or services is
and capabilities could have shown remarkable called "entrepreneur" and his job is called
flexibility in the field of entrepreneurship. These "entrepreneurship".
features caused efficiency increase of this technology A more comprehensive definition of
in entrepreneurial and job creation. In an overview entrepreneurship proposed by Schumpeter. In his
some of these features can be noted: book titled "The Theory of Economic Development"
Increase speed, improve accuracy, and reduce is a distinction between the terms innovation and
the physical size of data repositories, elimination of invention and knows innovation as a risk of invention
administrative corruption, making it possible to work to create a product or commercial service. In his
full-time, allowing remote collaboration, reduce the view, innovation is the main factor in creating wealth
cost of the system or organization and demand. So entrepreneurs are managers or
Given the above, especially increase speed owners which by setting up manufacturing-
which makes doing most of the work occurs and commercial unit exploit from the invention. [6].
work full-time, system efficiency increased and thus
reduces the amount of the costs. Other definitions of entrepreneurship:

Information technology entrepreneurship Jeffrey Teymunz knows entrepreneur as a

development engine: creator of something valuable from nothing. Peter
Drucker (1985), which is known as the father of
With entrepreneurs, needs are identified and with entrepreneurship knows the entrepreneur as a person
elimination of needs improvement is achieved. who will starts a small and new businesses with his
Advanced industrial countries developed due to the capital, but according to Joseph Schumpeter (1934),
information technology and by that time obtain Professor at Harvard University and economic
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of their needs in the teaching-learning process is economy of the world and have become a military
consistent [7]. power and now conduct the culture of the world
The research was conducted by Husseini in 1387 towards their demands.
entitled "affecting factors on Tehran agricultural Information entrepreneurship at different levels
entrepreneurial college students" reached this of hardware, software, information and
conclusion: the influence of 15 variables on student communication is possible. In each of these levels,
entrepreneurship, training program associated with there are many opportunities for entrepreneurship
job skills, innovative teaching methods at the that needs support of venture capital and
university and appropriate academic content are the entrepreneurial effort and it's interesting to
most important factors influencing entrepreneurship entrepreneurs in the areas of information, much
[9]. easier and more practical than entrepreneurs in other
In a study conducted by Ayubi in 2006 titled areas. For example, in nuclear power area due to
"Teaching Entrepreneurship second grade school limited use, there are fewer ideas. In addition extra
work and knowledge based on components for investment and low feasibility is barrier of each
entrepreneurship and Information Technology" entrepreneurial activity, while in the field of
reached the following Conclusions: information and communication technology with
1. Entrepreneurship has 10 components that high prevalence, many ideas are created and the
with order of priority are: amount of investment required to bring ideas to the
 Having an active mind and a sense of result is not so much.
participation Economic development of information
 Creativity and success-seeking technology is along with information transparency,
 Decision-making authority and market competitiveness and increase exchange rate.
responsibility In the social dimension, limited criminal acts, a
 Accept change and independence reduction in rent, trafficking and in economic activity
 Save opportunity and seeking success and the movement of economy based on capital to a
 Modernization and new ideas knowledge-based economy of the other benefits of
 Innovation and benefit from imagination this technology. In the cultural dimension,
 Motivation to create interest to obtain destruction of the western cultural monopoly,
information especially the United States, the development of
 Create for mental deconstruction cultural exchanges between countries and increased
 Commitment to accountability and ability to awareness are the most important results in the use of
negotiate IT. What should be of interest to scholars is positive
2. Traditional teaching style has no significant impact requirements of information technology. In
influence on student learning but the use of ICT for this regard, the literature following applications can
teaching caused a significant difference between pre- be outlined:
test and post-test [1]. Mohammadzade's study entitled "Evaluation of
If you considering this issue think more the quality of IT training programs for teachers in
pronounced the effect of technology entrepreneurs, secondary schools in Tehran" achieve this result:
we can see that the future of business is directly Given the significance of the observed frequencies,
related to the advancement of technology. It is provided training to teachers in the use of IT in 99%
presented in the following figure:

Fig. 1: value of business in the future

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4. Allowing remote collaboration: ffective features of IT in entrepreneurship:

telecommunications, telephone, teleconferencing,
video conferencing and collaboration systems and IT with different features and capabilities could
etc. are examples of such technology applications in have been shown a remarkable flexibility in the field
the field of entrepreneurship [8]. of entrepreneurship. These features increase the
One of the most important factors that will efficiency of this technology in entrepreneurial and
increase efficiency is information in that field. The job creation. In an overview some of these features
main problem of the optimal use of technology to can be noted:
promote entrepreneurship is access to the Increasing speed: fast calculation and processing
information. In fact, one of the challenges of of data and transfer them immediately, reducing labor
entrepreneurs is signify the amount of content they time and therefore increase productivity.
are encounter and capture all the information. For 1. Increased accuracy: in the human-based
this reason and more important reasons or the businesses the accuracy of the work is varied, while
explosion of information and the progress that we this technology provides high and constant accuracy.
need a new approach. In general we can say from the 2. Reducing the physical size of data
late 50th century, dramatic changes in the world repositories: with the development of this technology
began, since that time, information technology have and applying it there is no longer necessary to carry
been as a navigator and manager for all the new and store large volumes of specialized reference
inventions of mankind. The pace of innovation is so books. Can easily be stored information of several
much that is still progress levels and development books in each compact disc or get necessary
and use in entire society is not available, another resources through computer networks.
innovation with better features, more convenience 3. Elimination of administrative corruption:
and low prices offered [11]. It can be expresses as using this technology increase the transparency and
follows: eliminate many intermediaries. This two key
advantages lead to the elimination of some
administrative corruption especially at lows levels.

Fig. 2: The relationship between increased knowledge and increased entrepreneurship

• Expand access to higher education to IT elements: include capital (classical

achieve professional IT work force using non-face economics), labor (classical economics), materials
and virtual training(web-based) (classical economics), management (industrial
• Development of information literacy revolution), machinery (industrial revolution),
department managers and staff, and other universities information (communications era). [2].
and institutions of higher education to provide According to the specification of technology
specialized work force and produces cultural space elements we see that one of the elements is labor
for entrepreneurs force, being an expert and having necessary
• Providing required universities and higher competence in creating industrial community is very
education institution faculty and research in the field important and this is not possible unless with people
of information technology with new knowledge and this must be created by the
• Development of the private sector in higher information technology in order to create a workforce
education in order to take advantage from as a lifelong learner so community can utilize the
quantitative and qualitative power of the IT sector in knowledge that is created. Prosperity of a nation's
the development of specialized work force does not depend on funded science and technology,
• Continued study of the labor market in Iran but also in its ability to produce a nation depends on
and identify the quantity and quality of skilled work the ability and technology. It expressed the need for
force requirement in the public and private sectors more informative role of universities in shaping the
Information and communication are two basic information society. This is indirect contact with
tools needed for entrepreneurial activity. entrepreneurs in communities that are seeking to
Entrepreneur ship in isolation and without support establish development.
from institutions, organizations and individuals is not
possible. And explore the social needs of the Specialized workforce development strategy and
community is relevant to its needs and its socio- create new jobs in communities:
economic and cultural context. In recognition of the
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Adv. Environ. Biol., 7(8): 1421-1426, 2013

collect data on entrepreneurship and its interaction need for entrepreneurial activity, theoreticians must
with modern technology there are two ways of have the vision and in sight and know the solutions
review and participate in the Internet and its site and that meet its needs, is provided elsewhere in the
also interviews with key informants in the field. world. Thus knowledge and information like
communications are requirements of any
Conceptual Model: entrepreneurial activity.

The following conceptual model can express a Materials and Methods

corner of topics in society that has all these elements
together and no one else is removed .These factors This research is generally a qualitative study and
can easily cause dramatic changes in the the purpose is applied research. Indicators of research
entrepreneurship. It should be noted, the greater the quality such as purposefully selected sample, the use
amount of information and communication in a of multiple methods such as interviews and research
society we will have more opportunities for each of partnerships in the learning management system to
the specific issues related to IT. collect information and use categories and
simplification to analysis of data has been used. To

Fig. 3: ICT infra structure and its interaction with other sectors

infrastructure of entrepreneurship. We face to a two- Suggestions:

way interaction and according to importance role of
entrepreneurship bedder, civic and social In this context, we are able to offer the following
responsibility of responsible institutions is defined. suggestions:
Governments should develop and strength  Entrepreneurial spirit and culture of
entrepreneurial background in information entrepreneurship and promote the university
technology that is the communication and community to entrepreneurship, entrepreneurs and
information networks and provide easy access to their role in economic growth, job creation and
these networks while create and develop the use of prosperity.
networks and develop and implement rules and  Encourage and recruit college community to
regulations. the entrepreneurship training courses.
 Detailed research on the development of
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