1. Education provides the foundation for creativity, flexibility, and wealth creation in the society. 2.

Motivation Relating the different topics covered during this course Application of the knowledge gained in class 3. Beliefs Role of system is as vital as the individual in bringing about the successful implementation of an innovative design or idea Creativity can be developed, sharpened, amplified, because it is a factor of nurture as well as nature

What is creativity? Creative behaviors possessing an element of newness, novelty, and difference (Herrmann, 1996) Creativity is an act, an idea, or product that changes an existing domain or that transforms an existing domain into a new one, and creative person is whose thoughts or actions bring these changes. (Csikszentmihalyi) Wallas description of creative thinking, suggests a model in four stages: Preparation: problem definition Incubation: resting phase, subconscious mind Illumination: idea of a solution comes to mind Verification: solutions are tested

Creativity and Innovation Creativity leads to innovation Innovation is the specific instrument of entrepreneurship. The act endows resources with a new capacity to create wealth. Innovation, indeed, creates a resource. (Drucker)

Entrepreneurship is all about innovation Innovation is economic or social, rather than a technical term

Entrepreneurship and Creativity Creative in figuring out a way to work in a joint venture Creativity comes in writing an amazing sales letter or visualizing the perfect logo For practicing innovation, they need to be aware of change, and creatively use it to their advantage The Unexpected, Incongruities, Process Need, Industry and Market Structures, Demographics. Changes in Perception, New Knowledge (Drucker) Tolerance for ambiguity is related to certain entrepreneurial styles Creative destruction procedures and destroys or reallocates amassed resources Creative in identifying the gap in the market and think up a product

Tools and techniques for creativity 1. Brainstorming is a group or individual creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its member(s).

2. The Nominal Group Technique (NGT) is a decision making method for use among groups of many sizes, who want to make their decision quickly, as by a vote, but want everyone's opinions taken into account (as opposed to traditional voting, where only the largest group is considered). The nominal group technique is a structured process the school leader can use to identify and rank major problems or issues that need to be addressed.

3. Synectics is a group creative problem solving process designed to increase the probability of successful solutions. Morphological analysis (problem-solving) or general morphological analysis is a method for exploring all possible solutions to a multi-dimensional, non-quantified problem

Example: Bionics (also known as biomimicry, biomimetics, bio-inspiration, biognosis, and close to bionical creativity engineering) is the application of biological methods and systems found in nature to the study and design of engineering systems and modern technology.

Delphi Method Defined: An organized method for collecting views and information pertaining to a specific area; A method that allows dialogue between geographically separated experts while serving an effective means for learning; Gathering a group of experts to forecast events and assess complex issues; Collective human intelligence; A process of exploring assessing and evaluating. Individuals may misinterpret the Delphi exercise to be a policy decision tool rather than a policy analysis tool; Once a Delphi exercise has started there is no way to guarantee or control for a specific pattern of response; The Delphi has been used as a political tool rather than an analytical tool.

Delphi positive: Opportunities for large number of people to participate; Focus is on ideas rather than individuals; Anonymity for participants which make contributions of ideas a safe activity;

Opportunities for participants to reconsider their opinions; Allows for identification of priorities.

Delphi Negative: Large amount of time to conduct several rounds; The complexity of data analysis; The difficulty of maintaining participant enthusiasm throughout process; The problem of keeping statements value free and clearly defined; Self reporting data is subject to respondents biases and memories; The bandwagon effect of a majority opinion; The power of persuasion or prestigious individuals to shape group opinion; The vulnerability of group dynamics to manipulation; The unwillingness of individuals to abandon publicly stated positions. Who participates? Designing the expert team A national survey of directors of social work. 69 respondents generated 220 names a nominee had to receive 5 or more votes 14 experts were identified

Planning as Part of The Business Operation Planning is a process than never ends for a business. It is extremely important in the early stages of any new venture when the entrepreneur will need to prepare a preliminary business plan.

As the venture grows up to mature business, planning will continue Plan may be short term or long term, strategic or operational.

What is Business Plan? The business plan is a written document prepared by the entrepreneur that describes all the relevant internal and external elements and strategies for starting a new venture. It is an integration of functional plans such as marketing, finance, manufacturing, sales and human resources.

Who should write the plan? The business plan should be prepared by the entrepreneur. The entrepreneur may consult with many other sources in its preparation, such as lawyers, accountants, marketing consultants, and engineers. Scope and Value of the Business Plan Who Reads The Plans? The business plan may be read by employees, investors, bankers, venture capitalists, suppliers, customers, advisors, and consultants. There are three perspectives should be considered in preparing the plan: Perspective of the entrepreneur Marketing perspective Investors perspective Scope and Value The business plan is valuable to the entrepreneur, potential investors, or even new personnel, who are trying to familiarize themselves with the venture, it goals, and objectives. It helps determine the viability of the venture in a designated market

It provides guidance to the entrepreneur in organizing his or her planning activities It serves as an important tool in helping to obtain financing.

How do Potential Lenders and Investors Evaluate The Plan? Four Cs of Credit: Characters Cash flow Collateral Equity of Contribution Marketable Payback period Risk Feasibility, etc

Presenting the Plan It is often necessary for an entrepreneur to orally present the business plan before an audience of potential investors. In this typical forum the entrepreneur would be expected to provide a short (perhaps 20-minutes or half-hour) presentation of the business plan.

Information Needs Before committing time and energy to preparing a business plan, the entrepreneur should do a quick feasibility study of the business concept to see whether there a any possible barriers to success.

The information, obtainable from many sources should focus on marketing (segmenting, targeting, and positioning), finance (list of all possible expenditures, demand forecast, revenue), and production (location, manufacturing operations, raw materials, equipment, labor skills, space, overhead) . Internet can be a valuable resource.

Using and Implementing the Business Plan The business plan is designed to guide the entrepreneur through the first year of operations. Implementation of the strategy contains control point to ascertain progress and to initiate contingency plan if necessary. Business plan not end up in a drawer somewhere once the financing has been attained and the business launched.

Measuring Plan Progress Entrepreneur should check the profit and loss statement, cash flow projections, and information on inventory, production, quality, sales, collection of accounts receivable, and disbursements for the previous month. Inventory control Production control Quality control Sales control Disbursements

Updating the Plan The most effective business plan can become out-of-date if condition change. If the change is likely to affect the business plan, the entrepreneur should determine what revisions are needed.

In this manner, the entrepreneur can maintain reasonable targets and goals and keep the new venture on a course that will increase probability of success.

Why Some Business Plans Fails? Goals set by the entrepreneur are unreasonable. Goals are not measurable The entrepreneur has not made a total commitment to the business or to the family. The entrepreneur has no experience in the planned business. The entrepreneur has no sense of potential threats or weaknesses to the business. No customer need was established for the proposed product or service.

Entrepreneurs Can Play a Number of Roles in the Economy 1. Create new product and/or service businesses. 2. Bring creative and innovative methods to developing or producing new products or services. 3. Provide employment opportunities and create new jobs as a result of growing their businesses consistently and rapidly. 4. Help contribute to regional and national economic growth. 5. Encourage greater industrial efficiency/productivity to enhance our international competitiveness.

The Components of Successful Entrepreneurial Ventures

The Entrepreneur

Opportunity

Organization

Business Plan

Resources

Strategy

Entrepreneur process from the ppt

Myths about Entrepreneurship Myth 1 Entrepreneurs are born not made. Myth 2 Anyone can start a business. Its just a matter of luck and guts. Myth 3 Entrepreneurs are gamblers. Myth 4 Entrepreneurs want to run the whole show themselves. Myth 5 Entrepreneurs are their own bosses and completely independent. Myth 6 Entrepreneurs work longer and harder than corporate managers. Myth 7 Entrepreneurs face greater stress and more pressures, and thus pay a higher personal price in their jobs than do other managers Myth 8 Starting a business is risky and often ends in failure. Myth 9 Money is the most important ingredient for success.

Myth 10 New business start-ups are for the young and energetic. Myth 11 Entrepreneurs are motivated solely by their quest for the almighty dollar. Myth 12 Entrepreneurs seek power and control over other people so that they can feel in charge.