CRITICAL SUCCESS FACTORS OF
TECHNOPRENEURSHIP IN ANIMATION VENTURES.
Hanis Syazwani Kamarudin
Cert. Multimedia, Dip Multimedia
[SAE London], BA Hons. Multimedia Production [Middlesex Univ, London] Master of
Management [Technopreneurship] [UniKL]
Graduate of UniKL Business School, Universiti Kuala Lumpur.
&
Kamarudin Mohd Nor, DSDK
BSc Hons. HBP [USM], MSc
Construction Management [Heriot-Watt], PhD Architecture [Wales], FRISM, FRICS,
MBEng, MCIArb
Deputy Rector [Academic] ASWARA
Abstract
This
study looks into the factors influencing the success of technopreneurship in
the animation industry within the creative industries. It focuses on the
animation ventures in Malaysia. The success factors have not been studied
before. As such this study sets to fill in the gap in this field of knowledge.
The
development of the creative industries is encouraging due to firstly the
creation of job opportunities. Secondly, it is fast becoming an income
generator for a nation’s economy
The
Malaysian creative industries have shown great potential as an important sector
for the nation’s economy. The popularity of the industry has encouraged
entrepreneurs to participate in it.
Content quality in animation is identified as the most
important factor in the survey. Malaysia
needs creative and innovative professionals who specialise in story writing for
the animation industry to be competitive globally.
Talent pool should be an
equally important factor but somehow placed fifth in the survey. A number of
more experienced animation technopreneurs agreed that talent pool is a problem
that needs to be addressed
Keywords: Critical Success Factors, technopreneurship,
creative industries, animation ventures, content quality, talent pool.
Introduction
This study explores the factors
influencing the success of technopreneurship in the creative industries. It
focuses on the animation ventures in Malaysia. The success factors have not
been studied systematically before.
The creative industries are fast becoming an important
income generator for a nation’s economy. According to a report by the United
Nations Conference on Trade and Development (UNCTAD), the creative industries
generate income and job opportunities. The UNCTAD has encouraged developing
countries to diversify their economies and develop their creative industries
which are one of the most dynamic sectors of the world economy.
The Malaysian creative industries have also shown
great potential as an important sector for the nation’s economy. According to
the Economic Transformation Programme 2013 report, the creative industries have
generated export sales of over RM564.89 million (Koay, 2014). The industries
have so far contributed 1.27% or RM 9.4 billion to the Gross Domestic Product
(GDP). The GDP is expected to grow to RM33 billion in 2020, which is a growth
rate of 11% (Bernama, 2012).
The Malaysian government has acknowledged the
importance of the creative industries to the nation’s economy. The Ministry of Information,
Communication and Culture had initiated the Creative Industries Conference in
March 2009 to address the absence of clear coordination and policies regarding
the development of the nation’s creative industries. The National Creative
Industries Policy was drafted to lay out the basic principles of the
development of the creative industries (DIKN, 2010).
Problem Statement
The
factors that contribute to the success of an entrepreneurship may differ from technopreneurship.
An animation company is rather unique in
that it belongs to technology entrepreneurship and creative entrepreneurship.
The factors contributing to the success of technopreneurship in the creative industry
are rather poorly explored.
The research questions raised are:
i) What
are the barriers to the success of the animation technopreneurship?
ii) What
are the possible indicators to overcome the success barriers of the animation
technopreneurship?
iii) What
are the Critical Success Factors to the animation technopreneurship?
The objectives of this research are:
i) To
identify the barriers to the success of the animation technopreneurship
ii) To
identify the possible indicators to overcome the success barriers of the
animation technopreneurship
iii) To
identify the Critical Success Factors to the animation technopreneurship
The success factors identified from the literature
survey are:
·
Location
-the availability of workspaces especially.
·
Networks
& Collaborations
·
Promotion
& Marketing
·
Government
Assistance contributing to the success of entrepreneurship
·
Access to
financial resources
·
Entrepreneurial
skills -technical management skills and business management skills
·
Talent
pool - businesses in the creative industries need a deep pool of creative
talents
·
Content
Quality
·
Technology
(Hardware/ software)
·
Diversification
of products
Research Methodology
This
research uses the quantitative method.
The
number of subjects in this research is low [only around 200 companies in
Malaysia that are involved in animation works]. As such, a descriptive study was adopted where
data was collected from the entire population.
This is
different from inferential study, where data is normally collected from samples
of a population. Google Docs, a user friendly software was chosen to create the
questionnaires and distribute them.
The Creative
Industries
There are many definitions
of the term ‘creative industries’ and it varies from one country to another. The
term itself is quite new, believed to have appeared in 1994 in the Australian
report “Creative Nation”. It then became better known when the UK’s Department
of Culture, Media and Sport’s policymakers set up the Creative Industries Task
Force in 1997.
The United Nations
Conference on Trade and Development (UNCTAD) has identified four models that
are commonly used to classify the creative industries. Table 1.0 shows the
models of the creative industries.
Table 1.0 Classifications of the creative
industries
|
UK
DCMS Model
|
Symbolic
texts model
|
Concentric
circles model
|
WIPO
copyright model
|
|
·
Advertising
·
Architecture
·
Art and Antiques market
·
Crafts
·
Design
·
Fashion
·
Film and Video
·
Music
·
Performing arts
·
Publishing
·
Software
·
Television and radio
·
Video and computer games
|
Core Cultural Industries:
·
Advertising
·
Film
·
Internet
·
Music
·
Publishing
·
Television and radio
·
Video and computer games
Peripheral Cultural:
Industries
·
Creative arts
Borderline Cultural
Industries:
·
Consumer electronics
·
Fashion
·
Software
·
Sport
|
Core Creative Arts:
·
Literature
·
Music
·
Performing Arts
·
Visual Arts
Other Core Cultural
Industries:
·
Film
·
Museums and libraries
Wider cultural
industries:
·
Heritage services
·
Publishing
·
Sound recording
·
Television and radio
·
Video and Computer games
Related Industries:
·
Advertising
·
Architecture
·
Design
·
Fashion
|
Core Copyright
Industries:
·
Advertising
·
Collecting Societies
·
Film and Video
·
Music
·
Performing arts
·
Publishing
·
Software
·
Television and radio
·
Visual and graphic arts
Interdependent Copyright
Industries:
·
Blank recording materials
·
Consumer electronics
·
Musical instruments
·
Paper
·
Photocopiers, photographic equipment
Partial Copyright
Industries:
·
Architecture
·
Clothing, footwear
·
Design
·
Fashion
·
Household goods
·
Toys
|
Source: (UNCTAD, 2010)
Figure 1.0 UNCTAD classifications of
creative industries
Mitchell et al (2003) as
quoted by Siti Salwa, Siti Suriawati, & Abu (2011) have formulated four
domains of creative activity which are essential for countries in developing
their creative economy. The four domains are economic, technological, cultural
and scientific creativity and activities in these domains depend on each other.
Figure 1.1 illustrates the relationship
between these domains.
(write to me if you want this figure)
Figure 1.1 Domains of creative
activity
Source: Siti Salwa, Siti Suriawati, & Abu (2011)
The Malaysian Creative Industries
(write to me if you want this figure)
Figure 1.2 Classifications of the
Malaysian creative industries
|
CREATIVE
INDUSTRIES
|
Source: (DIKN,
2010)
The Malaysian Animation Industry
The Malaysian animation
industry began with the creation of Malayan Film Unit (MFU) in 1946, which
since 1963 has been changed to Filem Negara Malaysia (National Film Department
of Malaysia). The unit was under the National Communications Department, now known
as the Ministry of Information, Communication and Culture Malaysia.
MFU produced the country’s
first short animated film called ‘Hikayat
Sang Kancil’ (The Tale of the Mousedeer) in 1978. However, it was initially rejected by the
Ministry of Information because it was perceived to be poor in quality. A new
Minister of Information was appointed in 1983, and upon viewing the film, gave
the green light for it to be broadcasted on RTM (Azahar
& Russlan, 2010).
The film was well received, and further films
about the mousedeer were produced. “Sang
Kancil dan Monyet” (The Mousedeer and the Monkey) and “Sang Kancil dan Buaya” (The Mousedeer and the Crocodile) were
produced in 1984 and 1987 respectively. During this time, we also witnessed the
antics of other characters such as the clever crow in “Gagak Yang Bijak”, the arrogant hare in “Arnab Yang Sombong” and the greedy lion in “Singa Yang Haloba” (Hassan,
2004).
The first animation studio
called FilmArt was set up in 1982, followed by Lensamation in 1985. The first
movie to combine live pictures and animated characters was ‘Mat Gelap’, ZHA Productions in 1990.
During the premiership of
the fourth Prime Minister, Tun Dr Mahathir Mohamad, the government pushed for
the use of digital technology and promoted the production of local contents
(Hassan, 2004). The Ministry of Information found the need for local contents
because the flood of foreign animation contains elements that are not suitable
for Malaysian lifestyle (Azahar & Russlan,
2010).
“Usop Sontorian”, a story about the
village life of Usop and his friends aired in 1995.
It was produced by Kharisma Pictures in 1995
and became the first locally produced TV series. This was followed by “Keluang Man” in 1999, a story about a superhero who is actually a
patient at the mental hospital.
The first full length
feature film, “Silat Lagenda” by
Peninsula Pictures hit the cinemas in 1998, followed by “Puteh” by Eurofine in 2001. These films utilised new digital
technologies that reduced the traditional approach to animation (Hassan,
2004).
The animation industry did
not take off immediately. “Silat Lagenda”
and “Puteh” did not do well at the
box office and lost money. The perception of the local audience was that the
Malaysian animators were not up to the standard, and that local animation
productions are only for children. There was no market for animation locally (Hassan,
2004).
However, this all changed
with the success of the “Upin dan Ipin”
series. This cartoon feature first appeared on TV in 2007 as short animated
series and gained popularity with children and adults alike.
The series got a rating of
around 1.5 Million viewers per episode (AXAPAC, 2010). The popularity of
the series drove audiences to cinemas to see the full length animated movie
called “Geng: Pengembaraan Bermula”.
It became the most successful locally produced animated feature film with box
office takings of RM6.2 million (Finas).
The movie and the series are
also successful internationally, aired in 9 countries through the Disney
Channel (Upin & Ipin). Following the
success of “Upin dan Ipin” are the animated series “Saladin”, a co-production
between Multimedia Development Corporation (MDeC) and Al-Jazeera Children’s
Channel, which has earned an Emmy nomination under the Children & Young
People category (Zainuri, 2011). Another animated
series that is doing well is “BoBoi Boy”, which is also shown through the
Disney Channel.
The most recent success
achieved by the local animation company is the triumph of ‘War of the Worlds:
Goliath’ which won the Best 3D Animated Feature Film award at the Los Angeles
3D Film Festival. The film which is produced by Tripod Animation Sdn. Bhd. beat
Hollywood productions such as Laika’s ‘Paranorman’ and Dreamworks’ ‘Madagascar 3’. It has also been
shown at the San Diego Comic Con in July 2012 (Chua D. , 2012).
At the World Audio Visual Trade Exhibition (MIPCOM
2012), Malaysian creative content companies have secured 12 deals worth US$30
million (RM91 million). The deals include international co-productions,
distribution and global product launches. Malaysian company Vision Animation
Sdn. Bhd. has signed a co-production agreement with Australia’s Moody Street
Kids to produce the second season animated television series ‘Transformers –
Rescue Bots’ (Kamallaila, 2012).
Other companies that will be
involved in co-productions with international ventures are Animasia Studio,
Vision Animation, Clover Sky, Giggle Garage, Inspidea, Roar Studios, SG
Entertainment and Creative Media Point. Animasia Studio has also secured a deal
with Indonesia’s MNC Group to distribute their animated television show ‘Bola
Kampung’ in Indonesia (Faridul, 2012).
The company has previously
partnered with a Spain based company Neptuno Films Srl to distribute their
animated educational series ‘ABC Monsters’ to the European market and with
Singapore’s Innoform Media for distribution in the Asian markets (InTech, 2011).
Technopreneurship
Technopreneurship is coined
from the words “technical” and “entrepreneurship”. Rothwell and Zegveld,
(1982), as quoted by Syahida Abdullah (2008), stated that the term technical
entrepreneur was defined by Globe et al (1973) as “an individual within the
performing organization who champions a scientific or technical activity; he is
sometimes also called a product champion”.
Technopreneurship is also
derived from the words “technology” and “entrepreneurship”. This term was used
by Rothwell and Zegveld (1982) to refer to those interested in new, and often
long term, techno-commercial potentialities (Syahida Abdullah, 2008). The
accepted definition of technopreneurship by the Multimedia Development
Corporation (MDeC) is entrepreneurship that uses technology as the driven
factor in transforming resources into goods and services. Technopreneurship
refers to the firms that use “technology to create, deliver and capture value
for their stakeholders” (Bailetti, 2012).
Technopreneurship brings
more wealth creation than ordinary entrepreneurship due to the innovation
capabilities and the jobs created. This has led many countries to start paying
attention to technopreneurship by introducing policies, regulations and
financial support that encourage technology ventures. Other forms of support
include promoting innovation and entrepreneurship education. Singapore, Korea,
Taiwan and Malaysia are examples of countries that are promoting
technopreneurship (Oukil, 2011).
The field of
technopreneurship is diverse, which includes entertainment, health, education
and communication. Opportunities come in identifying innovative solutions to
problems. Table 1.1 shows the future trends and opportunities of technology that
technopreneurs might explore in creating a venture.
Table 1.1 Future
technology trends and opportunities
|
Life Science:
·
Genetic engineering
·
Genomics
·
Biometrics
|
I.T.:
·
Internet
·
Wireless device
·
Cloud computing
|
Food preservation:
·
Improved distribution of food
|
Video gaming:
·
Learning
·
Entertainment
|
|
Speech recognition:
·
Interface between computers and
people
|
Security devices &
systems:
·
Identification devices
·
Baggage checkers
·
Protective clothes
|
Nanotechnology:
·
Devices 100 nanometres or less for drug delivery
·
Biosensors
|
Renewable energy:
·
Solar cells
·
Wind turbines
|
|
Fuel cells:
·
Electrochemical conversion of hydrogen or hydrocarbon fuels into
electric current
|
Superconductivity:
·
Energy savings on utility power lines
|
Designer enzymes:
·
Protein catalysts that accelerate chemical reactions in living cells
for consumer and health products
|
Cell phones:
·
Communications
·
Computing
|
|
Software security:
·
Blocking unsolicited e-mail (spam)
·
Preventing ‘phishing’
|
Robots:
·
Teams of small coordinated robots for monitoring and safety functions
|
|
|
Source: Byers, Dorf, & Nelson (2011)
Critical Success Factors
Critical Success Factors
(CSF) can be regarded as key factors that “an organization must pay particular
attention to in order to achieve the level of performance essential to achieve
desired goals” (Hackney & Dunn, 2000 as quoted by Sebora, Lee, &
Sukasame, 2009). Satisfactory results in the CSFs “will ensure successful
competitive performance for the individual, department or organisation” (Bullen &
Rockart, 1981).
According to Bullen & Rockart, businesses will grow and thrive when CSFs
are met.
To recap, the success factors indentified from the
literature survey are:
·
Location
-the availability of workspaces especially.
·
Networks
& Collaborations
·
Promotion
& Marketing
·
Government
Assistance contributing to the success of entrepreneurship
·
Access to
financial resources
·
Entrepreneurial
skills -technical management skills and business management skills
·
Talent
pool - businesses in the creative industries need a deep pool of creative
talents
·
Content
Quality
·
Technology
(Hardware/ software)
·
Diversification
of products
See Appendix A for details on these factors
Research design
The first step into starting
this research was to identify the number of companies involved in animation in
Malaysia. The number of companies will represent the population of this study,
which in turn will determine what research method to be used, be it
quantitative or qualitative. It will also reveal whether the type of research
is exploratory, descriptive or causal (Ghauri & Gronhaug, 2005).
According to Yen (2011),
data from FINAS showed that there are around 200 companies in the local
animation industry. However, there is no document available which lists all the
names and details of these companies. An enquiry was sent to MSC Malaysia
through the website requesting for a list of animation ventures in Malaysia. A
reply from a representative of MSC Malaysia Client Contact Centre (CliC) stated
that they do not provide a sorted list of animation ventures. However, they did
provide the researchers with a link to the MSC Malaysia directory of companies.
Mixed method, which is a
combination of quantitative and qualitative approaches was chosen for this
study. According to Bergman
(2009a) as quoted by Cronholm & Hjalmarsson (2011), the combination the two
approaches will preserve the strenghts and reduce weaknesses in both
approaches.
Using both
quantitative and qualitative methods together will be more beneficial than
using the methods separately, as there is an increased possibility that
findings are more trustworthy and relevant (Creswell, 2009 as quoted by
Cronholm & Hjalmarsson, 2011). Both approaches, when used together can
“produce a more complete knowledge necessary to inform theory and practice”
(Johnson & Onwuegbuzie, 2004 as quoted by Cronholm & Hjalmarsson,
2011)..
This research is a survey
research, which is regarded as one of the most popular non-experimental
research methods especially in the social sciences (Chua, 2012).
Instrumentation
For the quantitative part, electronic
questionnaires as the method of collecting data are chosen.
Electronic questionnaires
have the advantages of easy distribution, inexpensive, fast delivery, can reach
globally and respondents can complete them at their convenience (Sekaran
& Bougie, 2010). Sekaran & Bougie also pointed
out the drawback of electronic questionnaires which demands that the
respondents be computer literate and have access to the facility. However, as
the respondents of this survey are technopreneurs, that should not be an issue.
The questionnaire was
designed after going through the literature reviews and conducting an informal
interview.
Questionnaire survey analysis
Online questionnaire was
created using Google Docs. Emails containing the link to the questionnaire were
sent to all 31 selected participants with a brief explanation of the purpose of
the research. After a poor response, printed questionnaires were mailed to the
participants together with self-addressed envelopes for returning them.
Altogether, 29 of 31 responded. 2 respondents declined to participate (please
refer to Appendix 4.1 & 4.2 for their written responses).
Results were analysed using
the IBM SPSS Statistics 20 software. Descriptive statistics were used to
analyse and summarise the data, which include frequency, percentage, mean, and
standard deviation. The results of the analysis are shown according to the
order of the questions in the questionnaire.
Background of the respondents
Question number 1 asked the
respondents what year their companies were established. Table 1.2 shows the
results.
Table 1.2 Year of
establishment
|
Year
|
Frequency
|
Percent
|
|
|
|
2000
|
1
|
3.4
|
|
2002
|
3
|
10.3
|
|
|
2003
|
2
|
6.9
|
|
|
2005
|
5
|
17.2
|
|
|
2006
|
2
|
6.9
|
|
|
2008
|
3
|
10.3
|
|
|
2009
|
3
|
10.3
|
|
|
2010
|
7
|
24.1
|
|
|
2011
|
1
|
3.4
|
|
|
2012
|
2
|
6.9
|
|
|
Total
|
29
|
100.0
|
|
A total of 13 companies were established between the
year 2000 and 2006. The number rose to 16 between the year 2008 and 2012. The
year 2010 saw the most number of the creation of animation companies, with 7
companies established in the year. The boom could be contributed to the success
of the animated feature film ‘Geng: Pengembaraan Bermula’ which became a
blockbuster hit in 2009, and various government initiatives to support the
animation industry. 28 out of 29 companies have been in operation for 10 years
or less.
The next question asked about the companies’ number of
employees. Figure 1.3 shows the results in percentage. A total of 14 companies
(48.3%) have more than 20 employees, while the remaining 15 companies (51.7%)
have less than 20 employees. Two of the most prominent animation companies have
around 40 employees.
(write to me if you want this figure)
Figure 1.3 Number of employees
Question number 3 asked about the types of products
the companies provide.
Figure 1.4 shows the results in frequency. All the
respondents are involved in content creation by producing animated TV series,
with 10 of them producing feature films. 16 out of 29 companies are carrying
out outsourcing works. Less than 10 companies are producing games and apps.
(write to me if you want this figure)
Figure 1.4 Types of animated products provided
(write to me if you want this figure)
Figure 1.5 Factors according to importance in mean and standard
deviation
Table 1.3 Factors of importance
|
Factors
|
Mean scores
|
|
Content quality
|
4.90
|
|
IP
|
4.86
|
|
Promotion & Marketing
|
4.76
|
|
Entrepreneurial skills
|
4.76
|
|
Talent pool
|
4.72
|
|
Network & Collaboration
|
4.62
|
|
Access to financial resources
|
4.62
|
|
Diversification
|
4.38
|
|
Government’s assistance
|
4.31
|
|
Technology
|
4.07
|
|
Business location
|
3.41
|
NB. Quantitative data
was analysed using the IBM SPSS
software.
Conclusion
The
development of the creative industries
is encouraging due to firstly the
creation of job opportunities. Secondly, it is fast becoming an income
generator for a nation’s economy
The
Malaysian creative industries have shown great potential as an important sector
for the nation’s economy. The animation industry or the creative content
industry has grown faster than the information technology industry. The
popularity of the industry has encouraged entrepreneurs to participate.
This
study looked into the factors influencing the success of technopreneurship in
the creative industries that have not been studied before. These factors were surveyed and analysed.
The five
top factors as in Table 1.5 and Figure 1.3 are:
|
Content quality
|
|
IP
|
|
Promotion &
Marketing
|
|
Entrepreneurial
skills
|
|
Talent pool
|
It is true that content quality in animation is
generally poor in this country. Malaysia needs creative and innovative
professionals who specialise in story writing for the animation industry to be
competitive globally.
Talent pool should be an equally important factor but
somehow placed fifth in the survey. A number of more experienced animation
technopreneurs agreed that talent pool is a problem that needs to be addressed.
Training of animators is a costly business, but once they are trained they tend
to move away to other firms offering better remunerations. Some went to other
countries like Singapore.
Appendix A
Identified success factors of technopreneurship in the
animation industry
This research adapts the
factors identified in (Aksoy, 2010). In his research
into the success factors of creative entrepreneurship in Rotterdam, he has
identified various factors such as workspaces, network, promotion & sales,
entrepreneurship and talent pool as key areas entrepreneurs need assistance
from the local government.
a)
Business
Location
Location can be one of the factors that could
contribute to the success of technopreneurship in the creative industry. Each
creative business has its own reasons for their choice in location, and the
relationship is a complex balance of factors (Comunian, Chapain, & Clifton, 2010). In their article,
Comunian, Chapain, & Clifton explored the relationship between creative
industries and place. They came up with four interrelated dimensions that
determine the location’s potential in supporting the creative industry’s
growth. These four factors may also be applicable to technopreneurs when making
the choice of locating their businesses. Figure 2.5 shows the interconnections
of the four factors.
Interrelated dimensions of factors that determine
choice location
|
CREATIVE
INDUSTRIES & PLACE
|
|
INFRASTRUCTURE
|
|
SOFT
INFRASTRUCTURE
|
|
GOVERNANCE
|
|
MARKETS
|
Source: Comunian, Chapain,
& Clifton (2010)
Infrastructure includes the availability of business spaces, the wealth of the local population or the tourism and/or transport infrastructure of a location that can impact the creative businesses’ development.
Creative companies are often more successful
in urban areas that are diverse. By being located in cities, companies can take
the advantages of the amenities provided which include “connectivity, public
sector support, labour market, institutional support and consumer demand” (Champion,
2010).
Factors such as the
availability of cheap and affordable spaces also play a big part in determining
the location choices of a creative business. This was evidenced in a place
called Hoxton in London, where the availability of cheap offices has attracted
many creative companies to locate their businesses there, which then created a
media cluster (Champion, 2010).
In her study into the
creative industry in Greater Manchester, Champion found that cost was one of
the factors entrepreneurs consider when choosing a location. Another study
conducted in Berlin also found that the chosen location of creative
entrepreneurs is related to the availability of cheap spaces (Heebels & van
Aalst, 2010).
b) Networks & Collaborations
Networking is described as “building and maintaining
relationships with people whose interests are similar or whose relationship
could bring advantages to a firm” (Barringer &
Ireland, 2008).
It can also be defined as “a complex, interconnected group or system, and
networking involves using that arrangement to accomplish particular tasks” (Bessant
& Tidd, 2007).
One of the factors that contribute to the success of a
business is getting support from various parties through the establishment of a
good relationship or network (Ab. Aziz, Perumal, & Faizuniah,
2005).
Entrepreneurs should use their assets to create a social network that would be
beneficial to their businesses (Byers T. , 2010). By engaging in
networks, entrepreneurs and small firms can gain benefits of getting advice,
encouragement, counsel and support from experts, government bodies as well as
research and training institutes (Noor, Hazliza, & Dr Siti, 2010; Hisrich, Peters, & Shepard, 2010).
Other advantages of being in a network include having
accessibility to resources, building confidence through supports and
encouragement from members, reduce bureaucracy by having a good relationship
with government bodies, getting up to date information and developing trust
amongst members (Ab. Aziz, Perumal, &
Faizuniah, 2005).
The trust developed will provide the opportunity for
entrepreneurs to access highly valuable resources (Hisrich, Peters, & Shepard, 2010). A network could also be a source of creativity, as
there will be instances where members would constantly find new ways of
creating, producing and marketing new products and services (Ab. Aziz, Perumal, &
Faizuniah, 2005).
c)
Promotions and
Marketing
Promotions and marketing are important aspects of any
business. Promotional efforts must be made by companies to communicate with the
target market (Hatten, 2009). One of the critical
successes to any organisation is having good marketing (Kotler &
Armstrong, 2010).
This is especially true for animation ventures. No
matter how good or entertaining the animated product is, without good promotion
and marketing, it will be less successful to reach its audience. New
opportunities are developed by actively engaging in marketing and sales
activities (Thompson, 1996 as quoted by Noor,
Hazliza, & Dr Siti, 2010).
Animation companies need to look beyond the local
market. This is true for animation industry in any country. For an animation
company to sustain their business, they can’t cater only to the domestic
market. They need to market their products globally as well.
This is because the local market is very small. Even a
big movie industry like Hollywood gains a considerable portion of its income
from distributions outside of America (Jieh, Hsueh-hua, & Hsiang-chun, 2005). Thus, for the local
animation companies to succeed, they need to cater to a global audience since
the local market with a population of 28 million people is too small.
d) Government assistance
Entrepreneurship is encouraged by the government due
to the jobs and market competition created (Michael
& Pearce, 2009).
It is also a focus for many policymakers (Dennis Jr., 2011). There are many
studies that look into government support as a factor that contribute to the
success of entrepreneurship.
Government support can nurture entrepreneurial
activity (Feindt et al, 2002) as quoted by (Sebora, Lee, &
Sukasame, 2009).
Radiah, Mohd Rosli, & Ab. Azid (2009) had outlined several literatures that
deal with government assistance to small businesses. These included Sarder et
al (1997) who found that firms receiving support from public or private
agencies experienced increase in sales, employment and productivity. Yusuf
(1995) found that among the crucial factors that contribute to small business
success is satisfactory government support.
Government assistance can be in the form of financial
support and initiatives. Financial support includes providing loans and grants
to entrepreneurs. Initiatives include policy implementation, infrastructure,
business advisory and tax incentives (Mohamed & Syarisa, 2001; Lerner,
2010).
The Malaysian government has provided various
assistance programs to boost the growth of Small and Medium Enterprises (SME)
in the ICT industry due to the industry’s capability of producing new jobs, new
knowledge, improving productivity as well as expanding and sustaining the
country’s entrepreneurial base. Among the initiatives to help technopreneurs
grow are incubation programs and communication programs (Mohd Abdullah & Hazianti,
2006).
Listed below are the initiatives and supports available to technopreneurs.
e)
Access to
financial resources
Yusuf (1995) as quoted by Radiah, Mohd Rosli, &
Ab. Azid (2009) identified having access to financing as one of the factors
contributing to the success of small businesses. Abetti (1992) as quoted by
Mohd Abdullah & Hazianti (2006) found that a variety of financing sources
is among the key elements that can help entrepreneurs to develop their
businesses. Mohd Abdullah & Hazianti also identified various studies that
show venture capital playing an important role by supplying funds to
technopreneurs to run their businesses.
Financial resources can come in the forms of support
from the government, private investors, the entrepreneur’s own savings or from
family and friends.
f)
Entrepreneurial
skills/ business know-how
Small firms face barriers such as lack of skills that
hinder their growth and penetration into the foreign market (Ojala
& Heikkila, 2009).
In their study, Ojala & Heikkila looked at various researches that focussed
on new ventures’ start up and growth problems.
These researches identified that the problems are
related mostly to sales and marketing, obtaining external funding and financial
management. Technology based new ventures that are going into international
markets need specific support program that stresses on the importance of
management training (Bell et al., 2004 as quoted by Ojala & Heikkila,
2009).
g) Intellectual Property
Intellectual Property is “a valuable intangible
property owned by persons or companies” (Byers, Dorf, &
Nelson, 2011).
It includes any “patents, trademarks, copyrights, or trade secrets held by the
entrepreneur” (Hisrich, Peters, & Shepard,
2010). World Intellectual Property Organisation (WIPO)
defines Intellectual Property (IP) as “creations of the mind: inventions,
literary and artistic works, and symbols, names, images, and designs used in
commerce”.
Intellectual property plays a significant part of a
technology venture. By having patents
and a strong intellectual property position, technology-based businesses are
more likely to have a sustainable advantage (Preston, 2001).
This is why
some companies that carry out outsourcing works are looking into producing
their own original contents due to the high revenue and income generated
through IP. IP is a new leverage in the 21st century, and it gives
entrepreneurs the power of what they want to do (Yapp, 2011). It can protect
their businesses should they compete in the global market (Dhesi, 2010). IP rights can be
recognised by financial institutions as an asset or collateral (Malaysian
Business, 2012).
h) Talent Pool
In developing creative industries, cultivating talents
is an important task (Zhang, Zhang, &
Li, 2010).
Businesses in the creative industries need a deep pool of creative talents.
Talents in this sense mean employees with knowledge and experience who can
contribute to the success of the company. Strong
labor force skills have been central to capabilities rather than organisational
abilities. (Tschang & Goldstein, 2010).
Technology based entrepreneurship with a deep pool of
knowledgable and experienced workers are able to successfully implement and
adapt to changes in technology, therefore are more productive (Wright,
Hmielski, Siegel, & Ensley, 2007).
A creative business, or specifically an animation
company needs employees with knowledge and experience in different disciplines
such as arts, technology and management (Jieh,
Hsueh-hua, & Hsiang-chun, 2005).
a)
Technology
(Hardware/ Software)
Technology is the integral part of a
technopreneurship. An animation studio, whether producing original products or
outsourcing works, will require a good set of hardware and software to carry
out the projects. The type of technology used may differ from one company to
another according to its needs.
One of the reasons India is an attractive choice for
animation outsourcing is the availability of good studios and high quality
software engineers (Thomas & Rayadurgam, 2005). The setup of a
typical animation studio will have technology such as workstations (PC’s),
software, servers, storage and good networks (Dolbier & Megler,
2005).
Figure 2.6 illustrates the technology setup of a typical animation studio.
Many animation companies have turned to cloud
computing or cloud storage to save cost. Instead of owning the servers and
storage hardware, these companies would use cloud services that can also save
time.
The Malaysia Animation Creative Content Centre (MAC3),
located in Cyberjaya is a centre that houses a rendering facility available for
hire. Animation company does not need to own a rendering farm, but can just use
the shared facilities provided.
However, is there a need for animation companies to
own and keep up with the latest technology?
Is state-of-the-art technology a factor contributing
to the success of an animation technopreneurship? Does infrastructure such as
broadband influence the success of a technopreneurship?
Setup of a typical animation studio
Source: Dolbier & Megler (2005)
b) Diversification of products (merchandises/ other
businesses)
Animated television series and feature films cost a
lot of money to produce but are bought with low pay from television stations.
Revenues generated from the animated television series alone are not sufficient
to cover the cost of production.
The cost of producing one series of Upin & Ipin ranges from RM1.2 million to
RM1.8 million but the stations only pay around RM800,000 for them (Rasul,
2011).
The first season of the UK’s animated series ‘Thomas the Tank Engine’ had low payment
from the local television station which only covered 10% of the budget (Westcott, 2010).
With low payments from broadcasters, animation
companies will often rely on ancillary revenues such as merchandises and DVD
sales to cover the cost (Kenny & Broughton, 2011; Lee, 2010; Rasul, 2011).
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