Developing Agri-based Technopreneurs in the Academe: The Case of a PCIEERDDOST-Funded Project in UPLB Depositario,D.P.T., M.B.Panabang, N.R.Zapata Jr., N.A.Aquino and L.J.Abarquez Department of Agribusiness Management College of Economics and Management University of the Philippines Los Banos

Introduction • On August 16, 2009, the University of the Philippines Los Banos (UPLB) implemented a Department of Science and Technology (DOST) - funded project entitled: ”Harnessing UPLB’s Capacity for TechnoEntrepreneurship and Technology Commercialization: Key to Better-Placed AFNR Graduates”

Introduction • The UPLB AFNR project has among others, the following objectives: 1. Promote an entrepreneurial mindset among UPLB students, faculty and researchers, and State Universities and Colleges (SUCs); 2. Promote the entrepreneurship option among AFNR and allied course students; and, 3. Document the performances of the Technopreneurial Learning Projects (TLPs) and business start-ups.

Introduction • On August 1, 2010, PCIEERD-DOST funded a complementary project entitled: “Supporting Technopreneurial Start-ups of Students and Alumni Under the UPLB AFNR Project: A Complementary Initiative to UPLB’s Technology Business Incubation Project”

Introduction

Introduction • In this paper we report some noteworthy experiences and important insights gained from this DOST funded project.

Methodology • The study used an action research methodology. • Student-technopreneurs were identified from the Department of Agribusiness Management (DAM), the Animal Science & the Food Science Clusters of UPLB. • These students were invited to attend the “Short Courses on Technology-Based Entrepreneurship” held last April 19 to May 8, 2010. • They were exposed to one of the following technologies: functional fruit and vegetable juice and puree processing, highend cheese and by-product processing and microbial-based rennet production. • By the end of the training, the student-participants were able to develop a business plan, which they implemented in the three TLPs.

Methodology Microbial Rennet

High-end Cheese

Functional Fruit Juice

Liquid Granules

Cream Cheese (goat’s milk) Cream Cheese (cow’s milk) Ricotta

Bignay Dalandan Calamansi Passion fruit

Methodology • Each student were given supplementary operational fund grants for their technology commercialization activities. • Aside from the fund grant, the studenttechnopreneurs were also provided with technical and business assistance during the organization and start-up of the business. • The student-participants of the project were required to document their technopreneurial experience.

Results and Discussion • MARKETING PERFORMANCE • Throughout the duration of the project, the students were able to come up with production and marketing innovations. • Some examples of production innovations included: – the combinations of raw materials such as combining goat’s and cow’s milk in cream cheese production – introduction of flavors to cream cheese – use of home-based production method which utilizes available kitchen tools at home.

Results and Discussion Summary of Label Improvements LABEL IMPROVEMENT Inclusion of picture Change in font type, color & size

EFFECT More catchy Improved readability and color blending

Change in paper used (e.g., water- Improved quality and general appearance proof, glossy) Inclusion of more texts (e.g., short More informative trivia about the health benefits of the product)

Results and Discussion Promotional Strategy/ Medium Used by Student-Technopreneurs PROMOTIONAL STRATEGY/MEDIUM Internet/ Web advertising (e.g., email, social networking sites, free web advertising sites) Product demonstration Product Samples Posters Word of mouth Leaflets

NO. OF STUDENTS 9 4 5 7 6 1

Results and Discussion • PRODUCTION AND FINANCIAL PERFORMANCE No. of Retained Prod'n Earnings for No. of Total Sales Total Cost Runs Capital BuildProd’n (PhP) (PhP) up (as of Dec. (after Dec. Runs 2010)* 2010) TLP: High-end Cheeses (Animal Science Cluster) Student 1 5 8,200.00 7,857.00 343.00 6 Student 2 2 4,055.00 3,825.00 230.00 2 Student 3 7 19,145.00 18,585.50 559.50 1 Student 4 7 2,630.00 2,933.75 (303.75) 0 Student 5 4 23,760.00 13,389.00 10,371.00 8 Student 6 4 10,930.00 7,337.00 3,593.00 4 Student 7 3 25,875.00 14,500.13 11,374.87 0

Continued Marketing Products (after Dec. 2010) Yes Yes Yes No Yes Yes Yes

Results and Discussion No. of Prod’n Runs

Total Sales (PhP)

Total Cost (PhP)

TLP: Fruit Juice/Puree (Food Science Cluster) Student 8 3 13,192.50 10,871.94 Student 9 2 6,176.00 5,451.07 Student 10 5 26,063.00 20,277.00 Student 11 2 4,875.00 4,010.50 Student 12 2 6,992.96 6,904.70 Student 13 2 7,100.00 5,902.87 Student 14 2 9,811.00 9,449.00 Student 15 4 14,985.00 13,316.20 Student 16 5 16,770.00 16,736.00 Student 17 2 6,765.00 6,391.13 Student 18 2 11,386.00 10,481.25 Student 19 2 4,040.00 7,555.00 Student 20 3 21,005.00 14,785.30 Student 21 3 6,234.00 12,233.00 Student 22 3 11,412.00 9,576.17

Retained Earnings for Capital Buildup (as of Dec. 2010) 2,320.56 724.93 5,786.00 864.50 88.26 1,197.13 362.00 1,668.80 34.00 373.87 904.75 (3,515.00) 6,219.70 (5,999.00) 1,835.83

No. of Prod'n Runs (after Dec. 2010)*

Continued Marketing Products (after Dec. 2010)

1 0 0 1 0 0 0 1 0 2 0 0 0 0 0

Yes Yes Yes Yes No Yes No Yes Yes Yes Yes Yes Yes Yes Yes

Results and Discussion

No. of Prod’ n Runs

Total Sales (PhP)

Total Cost (PhP)

TLP: Microbial Rennet (UPLB BIOTECH) Student 23 3 2,679.00 1,000.00 Student 24 3 900.00 3,267.88 Student 25 2 0.00 3,197.41 Student 26 2 764.00 2,744.05 Student 27 3 2,679.00 1,000.00

Retained Earnings for Capital Buildup (as of Dec. 2010) 1,679.00 (2,367.88) (3,197.41) (1,980.05) 1,679.00

No. of Prod'n Runs (after Dec. 2010)*

Continued Marketing Products (after Dec. 2010)

1 0 0 0 1

Yes Yes Yes Yes Yes

Results and Discussion • ENTREPRENEURIAL COMPETENCIES DEVELOPED ENTREPRENEURIAL VALUES GAINED FREQUENCY Time & resource management 8 Technology know-how 7 Communication/ Interpersonal skills 6 Persistence 6 Quality consciousness 6 Resourcefulness 5 5 Dedication/ Passion / Focus Commitment to work contract 5 Innovativeness/ Creativity 5 Self confidence 4 Opportunity-seeking 4 Patience 4 Importance of having a business plan 3 Professionalism 2 Hard work 2

Results and Discussion • PROBLEMS ENCOUNTERED BY STUDENTS PROBLEMS ENCOUNTERED

ACTIONS TAKEN PRODUCTION

Microbial Rennet Contamination of inoculums Fruit Juice/Puree Product spoilage due to high pH (e.g., the formulation was sweeter than the recommended)

More strict with following the prescribed procedure in processing -

Addition of citric acid to lower the pH and avoid spoilage - More strict with hygiene when filling and capping of bottles - More strict with quality inspection of raw materials used (e.g., fruit and puree) Lack of reliable and near suppliers of Found new suppliers through the internet raw materials and packaging materials High-end Cheeses Variability in product yield Analyzed the fat content and acidity of raw milk first before processing to ensure that the right amount of cream is added Lack of alternative sources of milk Asked around & found a reliable supplier of milk (one that produces high amount of milk)

Results and Discussion • PROBLEMS ENCOUNTERED BY STUDENTS PROBLEMS ENCOUNTERED ACTIONS TAKEN MARKET Microbial Rennet Market is difficult to penetrate (because Intensified promotional strategies such as customers are unwilling to switch from conducting demonstration and instructive the brand that they currently use to the pamphlets on how to use the product; one offered by the studentcommunicated the advantage of using technopreneurs) microbial rennet over other brands through posters, teasers and talking personally to cheese processors; given away product samples Fruit Juice/Puree Student-technopreneurs experienced Rent public transportation vehicles such difficulty in transporting/delivering as tricycle; asked the help of friends with products (e.g., heavy and bulky products) vehicles

Results and Discussion • PROBLEMS ENCOUNTERED BY STUDENTS PROBLEMS ENCOUNTERED ACTIONS TAKEN FINANCE Microbial Rennet, Fruit Juice/Puree, High-end Cheeses Difficulty in separating personal More strict with recording and from business finances accounting expenses incurred Difficulty in managing cash flow and Looked for customers who agree to collection of receivables pay upon delivery PERSONNEL Microbial Rennet, Fruit Juice/Puree, High-end Cheeses Limited technology know-how Constantly communicated with the TLP consultants & study leaders

Conclusion and Recommendations • The factors which turned out to be contributory to the success of the more viable technopreneurial ventures were as follows: 1. the conduct of product and marketing innovations such as the use of Internet; 2. networking done by students with marketing intermediaries like food stalls in university buildings, and marketing contacts in other towns; and 3. family support in terms of financing, marketing and labor.

Conclusion and Recommendation • Lastly, as an offshoot of this project, the following future researches and projects are recommended: 1. A follow-up or similar project which will support student-start-ups utilizing other UPLB technologies must be conducted. 2. Detailed case studies of the technology-based student enterprises which will become sustainable should be developed. 3. There should be a study related to the institutionalization of a joint technopreneurship curricular program between the agribusiness and business units in HEIs/ SUCs and the technical units of the aforementioned institutions.;

Conclusion and Recommendation 4. A study on the establishment of a technopreneur laboratory devoted to would be studenttechnopreneurs and a UPLB-administered sales outlet for UPLB technology-derived products must be conducted.; 5. A more in-depth research on the enabling environment needed to be put in place in academic institutions and research and development institutes in order to accelerate technology commercialization and technopreneurship in these organizations is essential. 6. There should be more studies on the potential markets and appropriate marketing strategies for biotechnology products like microbial rennet.

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