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 9
Chapter

CREATIVITY AND INNOVATION IN

ENTREPRENEURSHIP

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 CREATIVITY AND INNOVATION IN
ENTREPRENEURSHIP

 AT THE END OF THIS CHAPTER, YOU WILL BE ABLE TO:

– Define creativity.
– Explain the creativity process.
– Discuss the creativity techniques.
– List the characteristics of a creative individual.
– Give the definition of innovation.
– Explain the types of innovation.
– Discuss the sources of innovation.
– Elaborate on the principles of innovation.
– Explain the importance of creativity and innovation.
– Discuss the barriers to creativity and innovation.
– List the strategies to encourage creativity and innovation.

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 CREATIVITY

 Creativity is the ability to produce work that is

new or novel, original and unexpected, high in
quality, and appropriate, that is, useful and
meets the task constraints.

Sternberg, Kaufman & Pretz (2002)

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 CREATIVITY PROCESS

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 CREATIVITY TECHNIQUES

 Forced Analogy
 Brainstorming
 DO IT
 Ishikawa (Fishbone) Technique
 Plan Do Check Act Cycle
 Strength Weakness Opportunity Threats
Analysis

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 CHARACTERISTICS OF A
CREATIVE INDIVIDUAL

Characteristics Description
Humble and proud A creative individual is remarkably humble and proud at the same
time.
Passionate Most creative individuals are very passionate about their work, yet
they can be extremely objective about it as well.
Brave A creative individual is brave to try new things. He dares to make a
difference, makes own decisions, and is willing to take calculated
risks.
Open-minded A creative individual is open-minded and willing to accept criticisms
from others.
Playfulness A creative individual has a combination of playfulness, discipline,
responsibility, and irresponsibility.
Self-control A creative individual tends to have high self-control.
Goal-directed A creative individual is goal-directed and considerate in making any
decisions.
High level of confidence A creative individual will have a high level of confidence and is free
to defend his own ideas.

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 INNOVATION

 Innovation is the process and outcome of creating

something new, which is also of value.
 Transformation of creative ideas into useful
applications by combining resources in new or
unusual ways to provide value to society for
improved products, technology or services.

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 TYPES OF INNOVATION

 Invention
 Extension
 Duplication
 Synthesis (combination)

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 SOURCES OF INNOVATION

 Internal sources
– Unexpected events
– Incongruities (not in the same place)
– Processing needs
– Changes in the industry or market structure

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 SOURCES OF INNOVATION

 External sources
– Demographic changes
– Changes in perception, mood and meaning
– New knowledge

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 PRINCIPLES OF INNOVATION

 Be action-oriented
 Start small
 Aim high
 The rule of try, test and revise
 Learn from failures
 Follow a milestone schedule
 Reward heroic activity
 Work, work and work

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 Importance of Creativity and
Innovation to an Entrepreneur

 Create new products and services

 Reduce cost
 Add competitive value for the entrepreneur
 Increase quality
 Increase performance

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 Importance of Creativity and
Innovation to a Business Organization

 Ensure an organization’s survival

 Explore new markets

 Exploit natural resources

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 BARRIERS TO CREATIVITY AND INNOVATION

1. Individual Barriers
Barriers Blocks and Limiting Beliefs
Negative attitude The tendency to focus on negative aspects of problems and
expend energy on worry.
Fear of failure Fear of looking foolish or being laughed at.
Executive stress Not having time or too stressed to think creatively.
Following rules A tendency to conform to accepted patterns of belief or thought
such as the rules and limitations of the status quo.
Making assumptions Many conscious and unconscious assumptions restrict creative
thinking.
Over-reliance on logic Investing all intellectual capital into logical or analytical thinking
such as the step-by-step approach and excluding imagination,
intuition, feelings, or humour.
Doubting own capabilities An individual’s belief that he is not creative which causes him to
limit the way in which he perceives and processes information from
others.
Fear of criticism Fear of being criticized by others for doing things differently.
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 BARRIERS TO CREATIVITY AND INNOVATION

2. Organizational Barriers
Barriers   Blocks and Limiting Beliefs
Group behaviour • Inter-departmental warfare
  • Middle management warfare
  • Traditional mindset
  • Negative influence of peer groups
  • Inter-departmental rivalry
  • Indifference of peer group
  • Fear of offending peers
  • Fear of being excluded from peer group

Insufficient resources • Insufficient human resources

  • Staff with limited skill and knowledge
  • Inadequate and outdated facilities
  • Limited funds

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 STRATEGIES TO ENCOURAGE CREATIVITY
AND INNOVATION

 Strategies for an Entrepreneur

– Recognize personal abilities
– Change one’s perception
– Adopt positive attitude
– Challenge assumptions
– Dare to fail
– Make time for creative and innovative thinking

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 STRATEGIES TO ENCOURAGE CREATIVITY AND
INNOVATION

 Strategies for an Organization

– Encourage ideas
– Provide creative time
– Have a submission system
– Always keep track of current trends and
breakthroughs
– Combine need and technology
– Implement an incentive programme
– Have good communication

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 Tutorial

i. Explain the creativity process.

ii. Discuss the creativity techniques.
iii. List the characteristics of a creative individual.
iv. Explain the types of innovation.
v. Explain the importance of creativity and innovation.
vi. Elaborate on the principles of innovation.
vii. List the strategies to encourage creativity and innovation.

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