KUCHING: Understanding the distinction between technical experts and entrepreneurs is essential for the success of technology-based ventures, dispelling the misconception that technical expertise is always necessary.
Centre for Market Education (CME) economist Carmelo Ferlito explained that this principle applies across all industrial sectors.
“One does not need to possess technical expertise to be successful in their respective industries,” he said.
Ferlito used a pizzeria (pizza shop) as an example to illustrate the difference between technical knowledge and entrepreneurial knowledge, as defined by the Austrian School of Economics.
“Technical knowledge, like knowing how to make a pizza, is widely available and can be acquired through formal learning,” he explained.
However, Ferlito emphasised that entrepreneurial knowledge, which Nobel laureate F.A. Hayek described the “knowledge of the conditions of time and place,” as crucial for business success.
He added that entrepreneurs need to focus on questions related to target customers, pricing, hiring, location, and raw materials, rather than mastering technical know-how.
Acknowledging the element of risk involved in entrepreneurial queries due to their uncertainty, Ferlito said, “Entrepreneurial knowledge is subjective, practical, exclusive, and dispersed throughout people’s minds.”
He added that this knowledge can be transmitted unconsciously through complex social processes within entrepreneurship, such as the price mechanism.
Responding to Economy Minister Rafizi Ramli’s observations on the country’s digital technology advancements and the lack of innovation and creativity, Ferlito reiterated the difference between technical and entrepreneurial knowledge.
“Technical knowledge can be hired, while entrepreneurial knowledge emerges through human creativity,” he stated, echoing Rafizi’s focus on creativity’s essence.
Ferlito stressed the need to identify everyday problems and explore solutions as the basis for innovation, aligning with Rafizi’s perspective on fostering creative and innovative thinking.
“The fundamental question for innovation is, ‘How can I make this better?'” he said.
