Lect 2

➢ One of the tenets of entrepreneurship is the ability to:
 Create new and useful ideas,

 Solve the problems and challenges people face every day.
➢ Simply having a great new idea is not enough; turning
the idea into a tangible product, service, or business
venture is the essential next step.
➢ Entrepreneurs achieve success by creating value in the
marketplace when they combine resources in new and
different ways to gain a competitive edge over rivals.
 Creativity is the ability to develop new ideas and to discover new
ways of looking at problems and opportunities.
 Creativity is the characteristic of a person to generate new ideas,
alternatives, solutions, and possibilities in a unique and different way.
 It must be expressive, exciting and imaginative.
 It is the mirror of how beautifully a person can think in any given
circumstance.
 It is not genetic but can be developed if someone keeps on learning
things with a rare and exclusive perception.
 Creativity is a brainstorming and mind-blogging activity.
 It is an activity of unveiling something which was previously hidden.
 Need for Novel
 Need to communicate ideas and values
 Need to solve problem
 Survival
 Competition
 New technology
 Creativity inspires collective thinking
❑ Step 1 Opportunity or Problem Recognition
❑ Step 2 Immersion
❑ Step 3 Incubation
❑ Step 4 Insight
❑ Step 5 Verification and Application
 Opportunity or Problem Recognition :
A person discovers that a new opportunity exists or problem
need resolution.
 Immersion: (deep mental involvement in something)
The individual concentrate on the problem and becomes
immersed it. He/she will collect information that seems relevant
,dreaming up alternatives without evaluating them.
 Incubation :
The person keeps the assembled information in mind for a while.
He/she does not appear to be working on the problem actively.
However, the subconscious mind is still engaged.
 Insight:
The problem-conquering solution flashes into person
mind at an unexpected time, such as on the verge of
sleep, during shower, or while a running, Insight is also
called Aha!
 Verification and Application :
Verification procedure include gathering supporting
evidence and experimenting with new ideas.
Personality Traits of Creative Person
 Self-Confidence
 Independence
 Attraction to complexity
 Tolerance of Ambiguity
 Have a broad interest
 Energetic
 Drive to Achieve
 Love to work
 Risk Taker
Barriers To Creativity
 Excessive Focus on Extrinsic Motivation
 Limit set by Peers
 Competition in a win-Loss situation
 Control of decision making
 Control of information
 Blindly follow rules
 Constantly being practical
 Fearing looking Foolish
 Fearing mistake and failure
 Innovation is the ability to apply creative solutions to those problems
and opportunities to enhance or to enrich people’s lives.
 Innovation is closely tied to creativity i.e. putting creative ideas into action is an
innovation, whose consequences should be positive.
 A process of intention change made to create value by meeting
opportunity:
Process: Innovation is a process
Intentional: The process carried out on purpose.
Change :It results more kind of change
Value: The whole point of change is to create value in out economy, Society or
individual lives.
Opportunity & Advantage: At the same time , they also create value by exploiting
the opportunities they have at hand.
 Better and smarter way of doing
 New technology.
 New product line or segment.
 A new method of production.
 An improvement in the existing product
 Invention: Describe as the creation of a new product , service
or process. Something that has not been tried before.
 Extension: The expansion of existing product, service or
process. This would mean that entrepreneur takes an existing
idea and applies it differently.
 Duplication: Copying (Replicating ) an existing product,
service or process and then adding the entrepreneurs own
creative touch in order to improve it.
 Synthesis : A combination of more than one existing product or
service into a new product or service. This means that several
ideas are combined in to new product.
 Analytical Planning- Carefully indentify the product and
service features, design as well as the resources that will be
needed.
 Resource Organization- Obtaining the required resources ,
material, technology, human or capital resources.
 Implementation- Applying the resources in order to
accomplish the plans.
 Commercial Application- The provision of value to customers,
reward employees and satisfy the stakeholders.
 Action-oriented
 Opportunity-focused
 Mental resilience
 Intellectual humility
 Continuous reflection
 Courage
 Sensitivity towards uncertainties
 Implementing learning and idea adaptation
Comparison Chart
CREATIVITY INNOVATION
Creativity is an act of creating new ideas, Innovation is the introduction of something new
imaginations and possibilities. and effective into the market
Imaginative process. Productive process.

Thinking something new Introducing something new
Creativity does not require money. innovation requires money.
Creativity can never be measured Innovation can be measured.

There is no risk involved in creativity the risk is always attached to innovation.
Examples of creative thinking skills The first electric vehicles introduced in the car's
include: problem solving, writing, visual art, market were also an innovation, and new
communication skills, and open-mindedness batteries with longer ranges that keep coming
out are also an example of innovation
Conclusion
 The change that entrepreneurship bring about is through creativity and

innovation.
 Creativity requires someone (like an entrepreneur) to add value in the
market place through the innovation process.
 From the idea generation to the successful product development and launch
, innovation is the seed-bed for change. Change with coordination of the
innovation process are the entrepreneurs.
 It is the job of the entrepreneurs to be creative in identify the gap in the
market and innovate a product to fill the gap.
Harvard’s Ted Levitt says that creativity is thinking new things, and innovation
is doing new things

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➢ One of the tenets of entrepreneurship is the ability to:

 Create new and useful ideas,

Imaginative process. Productive process.

Creativity can never be measured Innovation can be measured.

 The change that entrepreneurship bring about is through creativity and

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