Note to Instructors: Building a Better Rat Trap Siri Terjesen This case examines technological entrepreneurship and human capital in a remote village in southeast India. Sethu Sethunarayanan, director of the nongovernment organization (NGO) Center for Development of Disadvantaged People (CDDP), uses technology to improve the lives of impoverished people, focusing in particular on the indigenous Irula tribe. The Irulas’ rat catching activities constitute a primary source of income and food. However, the Irulas are often unsuccessful in catching rats and suffer many health problems from mouth-blowing a clay pot filled with smoke. Sethu developed a “better rat trap,” improving success rates and income and eliminating health hazards. In parallel, CDDP established a factory and self-help, micro-credit collectives to enable other villagers to improve their socioeconomic condition. The case chronicles the project’s development, including oppor- tunity recognition, and new technology development and implementation. An overview of the skills and experience of Sethu and the CDDP team, and the national, local, and commu- nity context is also provided. Key Issues and Discussion Points The case raises a number of issues, including the use of technological entrepreneur- ship, human capital, micro-credit, and sustainable development. Technological Entrepreneurship To date, most research and cases on technological entrepreneurship focus on extremely high technology ventures in developed countries, for example, the biotechnol- ogy and software sectors in the United States. An estimated one-third of the world’s population lives below the poverty line (less than $2 a day). Poverty and other societal problems are market failures which create opportunities for entrepreneurs (Coase, 1974; Dean and McMullen, 2006). Schumacher (1973) and others use the term “appropriate technology” to describe technology that is suitable to the environment and culture it is intended to support, and is not excessively mechanized, which triggers human displacement, resource depletion, or increased pollution. Please send correspondence to: Siri Terjesen, tel.: (+61) 7-3138-1105, e-mail: siriterjesen@yahoo.com P T E & 1042-2587 © 2007 by Baylor University 965 November, 2007