Joep van Gelder
Entrepreneurship and Networks
The lecturers of Entrepreneurship and Networks had a great surprise for us, seen as this last blog about innovation adoption and diffusion is one of the harder ones. Even though I think that it has not been adopted by 50% of the entrepreneurs, hybrid cars directly came into my mind.
For entrepreneurs, the hybrid car is a paradise, seen as there are many tax reductions for them when they buy such car, even if they only make use of gasoline or diesel! This price reduction may even be two third. Let’s have a look at an example. If I want to buy a Porsche Panamera S E-Hybrid, the basic price will be 106,900 euros. If I would buy it via my own business, it will cost me less than 40,000 euros over several years! This ‘innovation’ is considered to be a product.
Looking at the maturity, I took in mind that the tax advantages are quickly being repealed. Therefore, I considered this innovation to be somewhere in between the late majority or the laggards. The following growth graph made me realize this:
It is seen that growth decreases. By the end of 2012, there were 7,311 electric/hybrid cars in The Netherlands. One year later this amount was 30,086. In October of this year, the amount was 42,860. Therefore, growth seems to decrease, but we are not at the end of the year yet. Maybe there will be some generous givers for Christmas..
In my own environment, I know that at least three entrepreneurs are driving a hybrid car. They work in different sectors (healthcare and financial services). All three of them are categorized as early adopters or early majority. They knew about it via news articles. I consider this both forms of contagion, as well as social learning, as they first wanted to find more information about it. Moreover, they wanted to make a cost-benefit analysis.
I increasingly see hybrid cars on the road. Especially the Mitsubishi Outlander is very popular. People were able to buy this car for only 6,000 euros. In Amsterdam, I often see Tesla cars. I would advise other entrepreneurs, that have not yet done so, to grab their final chances and buy a hybrid car with tax advantages.