chapter # 2 entrepreneureship

Chapter# 2
Prepared by:
 Muhmmad
usman ikram roll
# 94
 waqas majeed
roll# 95
 shoaib ramzan
roll # 104

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-2

CHAPTER 2
Inside the Entrepreneurial Mind:
Inside the Entrepreneurial Mind:
From Ideas to Reality

Chapter 2
Inside the Entrepreneurial Mind
The best way to have a good idea is
to have lots of ideas. Linus Pauling

 Creativity – the ability
to develop new ideas
and to discover new
ways of looking at
problems and
opportunities;
thinking new things


 Innovation – the ability to apply
creative solutions to problems or
opportunities to enhance or to enrich
people’s lives; doing new things.


Entrepreneurship
 Entrepreneurship – the result of a
disciplined, systematic process of
applying creativity and innovation to the
needs and opportunities in the
marketplace.
Entrepreneurs connect their creative
ideas with the purposeful action and
structure of a business.

Ch. 2: Inside the Entrepreneurial Mind Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-7

Failure: Part of the
Creative Process!
 For every 3,000 new product ideas:
 Four make it to the development stage.
 Two are actually launched.
 One becomes a success in the market.
 On average, new products account for 40%
of companies’ sales!!
 Creativity is an important source of building
a competitive advantage.

Ch. 2: Inside the Entrepreneurial Mind Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-8

Can We Learn to Be Creative?

Yes!
By overcoming paradigms and by suspending
conventional thinking long enough to
consider new and different alternatives!


What is paradigm?
 Paradigm is preconceived idea of what
the world is, what it should be like, and
how it should operate.

Ch. 2: Inside the Entrepreneurial Mind Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 2 - 10

How the human brain works?
 There is two types of
hemispheres of brain
that tends to specialize
in certain functions.
 Left brain
 Right brain
.


Left brain thinking vertically. It
handles our language, logic and
symbols;
Right brain takes care of our body’s
emotional,intutive, and spatial
functions.


Left-Brained or
Right-Brained?
Entrepreneurship requires both left-and
right-brained thinking.
 Right-brained thinking draws on divergent
reasoning, the ability to create a multitude
of original, diverse ideas.
 Left-brained thinking counts on
convergent reasoning, the ability to
evaluate multiple ideas and to choose the
best solution to a problem.

Barrier of creativity
1) Searching for one right answer:
The first mental lock of creativity is that
we are looking for the one right. In fact each
question has more than one right answer. But
we do not look for other answer and did not
search for other answer.
2) Focusing on ” being logical” :
Logic is the valuable part of creativity
process, especially when evaluating ideas
and implementing them. However, in early
imagination phases of the process, logical
thinking can restrict creativity.

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 2 - 14

3) Blindly following the rules:
Another mental lock is that we follow
the rules blindly and are not thinking
new things. Sometimes creativity
depends on our ability to break the
existing rules so that we can see new
ways of doing things.


4) constantly being practical:
imaging impractical answer to “what
if” question can be powerful way to
creative ideas. Suspending practicality
for while frees the mind to consider
creative solutions that otherwise might
never arise.



 5) viewing play as frivolous:
A playful attitude is the fundamental
to creative thinking. Play gives us the
opportunities to reinvent reality and to
reformulate established ways of doing
things. Creativity results when
entrepreneurs take what they learned at
play, evaluate it, confirm it with other
knowledge, and put it into practice.

 6) Becoming overly specialized:
creative thinker tends to be
“explorer” , searching for ideas outside
their areas of specialty. Defining a
problem as one of “marketing” or
production”, or some other area of
specialty limits the ability to see how it
might be relate to other issues.


 7) Avoiding ambiguity:
Ambiguity can be powerful creative
stimulus; it encourages us to “think something
different’. Ambiguity, however, requires us to
consider at least two different, often logical
relation feelings at same time, which is a direct
channel to creativity. Ambiguous situation
force us to stretch our mind beyond their
normal boundaries and to consider creative
options we might otherwise ignore.
Entrepreneur often find business opportunities
by creating ambiguous situation.


 8) Fearing looking foolish :
The fool’s is to whack at habits and
rules that keep us thinking in the same
old ways. Entrepreneurs are the top-
notch “fools”. They are constantly
questioning and challenging accepted
ways of doing things and assumptions
that go with them.


 9) Fearing mistakes and failure:
Creative people realize that trying something new
often leads to failure.
A famous inventor Charles F.
Kettering, explains, “You fail
Because your ideas aren’t right,
but you should learn to fail
intelligently. When you fail,
find out why failed and each
time it will bring you nearer to
goal. Entrepreneurs
equate failure with innovation
rather than defeat. ©
Copyright 2 - 21
2011 Pearson Education, Inc. Publishing as Prentice Hall

 10) Believing that “I am not creative”:
Some people limit themselves because they
believe that they are not creative. But a successful
entrepreneur recognize that thinking” I’m not
creative” is merely an excuse for inaction. Everyone
has within him or her potential to be creative; not
every one tap that potential, however successful
entrepreneurs find a way to unleash their creative
powers on problems and opportunities.
 Conclusion:
By avoiding these 10 barriers,
entrepreneurs can unleash their own creativity and
the creativity of those around them as well.


Tips for Enhancing
Organizational Creativity
Enhancing organizational creativity:
1) Embracing diversity:
One of the best ways to
cultivate a culture of creativity
is to hire a diverse workforce.
2) Expecting creativity:
Employees tend to rise-or fall- to the level of
expectations entrepreneurs have of them. One of
the best ways to communicate the expectation of
creativity is to give employees permission to be
creative.


Tips for Enhancing
3) Expecting and tolerating failure:
Creative ideas will produce failures as well as
successes. People who never fail are not being
creative. Creativity requires taking chances, and
managers must remove employees’ fear of failure.
4) Encouraging curiosity:
Entrepreneurs and their
employees constantly should
ask: what if” questions and
take a “maybe we could…”
attitude. Doing so allows them
to break out of assumptions that
limit creativity.

Tips for Enhancing
5) Viewing problems as challenges:
Every problem offers the opportunity
for innovation. Entrepreneurs who allow
employees to dump all their problems
on their desks to be “fixed” do nothing
to develop creativity within those
employees.


6) providing creativity training :
Almost everyone has the capacity
to be creative, but developing that
capacity requires training. Training
accomplished through books,
seminars, workshops, professional
meetings can help everyone learn to
tap their creative capacity.


Tips for Enhancing
7) Providing support:
Entrepreneurs must give
employees the tools and the
resources they need to be creative.
One of the most valuable resources
is time.
8) Developing a procedure for capturing ideas:
Workers in every organization come up
with creative ideas; however, not every
organization is prepared to capture those
ideas.


Tips for Enhancing
9) Rewarding creativity :
Entrepreneur can encourage
creativity by rewarding it when
it occurs. Financial rewards can
be effective motivators of creative behavior, and as
well as nonmonetary rewards.
10) Modeling creative behavior:
Creativity is “caught” as much as
it “taught”. Companies that excel
at innovation find that passion for
creativity starts at top.
©
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2 - 28

Tips for Enhancing
Individual Creativity


Tips for Enhancing
 Allow yourself to be creative
 Give your mind fresh input every day
 Recognize the creative
power of mistakes
 Keep a journal to record your thoughts
and ideas
 Listen to other people


Tips for Enhancing
 Talk to a child
 Keep a toy box in your office
 Read books on stimulating
creativity or take a class
on creativity
 Take some time off


The Creative Process

Preparation Investigation Transformation

Incubation Illumination Verification

Implementation





Implementation


Preparation
 Preparation:
This step involves getting the mind ready for
creative thinking. Preparation might include a
formal education, on-the-job training, work
experience, and taking advantage of other learning
opportunities.
 How can you prepare your mind for creative
thinking?
 Adopt the attitude of a lifelong student
 Read…a lot…and not just in your field of expertise


Preparation
 Clip articles of interest to you and create
a file for them
 Take time to discuss your ideas with
other people
 Join professional or trade associations
and attend the meetings
 Invest time in studying other.





Implementation


Investigation
 This step requires developing
a solid understanding of the
problem, situation, or decision
at hand. To create new ideas and
concepts in a particular field, an individual
first must study the problem and
understand its basic components.
Creative thinking comes about when
people make careful observations of the
world around them and then investigate
the way things work.





Implementation


Transformation
 Involves viewing both
the similarities and the
differences among the
information collected.
 Two types of thinking are required:
 Convergent – the ability to see the
similarities and the connections among
various and often diverse data and events.
 Divergent – the ability to see the
differences among various data and
events.

Transformation
 How can you transform information
into purposeful ideas?
 Grasp the “big picture” by looking for
patterns that emerge.
 Rearrange the elements of the situation.

 Use synaptic, taking two seeming
nonsensical ideas and combining them.
 Remember that several approaches can be
successful. If one fails, jump to another.





Implementation


Incubation
 Allow your subconscious
to reflect on the information
collected.
 Walk away from the situation.
 Take the time to daydream.

 Relax – and play – regularly.

 Dream about the problem or opportunity.

 Work on the problem in a different
environment.




Implementation


Illumination
 This phase of the creative process
occurs at same point during the

incubation stage when a spontaneous
breakthrough causes “the light bulb to
go on". It may take place after five
minutes __ or five years.




Implementation


Verification
 Validate the idea as accurate
and useful.
 Is it really a better solution?
 Will it work?
 Is there a need for it?
 If so, what is the best application of this idea in
the marketplace?
 Does this product or service fit into our core
competencies?
 How much will it cost to produce or to
provide?
 Can we sell it at a reasonable price that will
produce a profit?





Implementation


Implementation
 The focus of this step is to transform
the idea into reality. Plenty of people
come up with creative ideas for
promising new products or services,
but most never take them beyond the
ideas stage.


Techniques for Improving
the Creative Process

Brainstorming:
The goal is to create a large quantity
of novel and imaginative ideas.


Brainstorming Guidelines
 For a brainstorming session to be
successful, entrepreneurs should follow
these guidelines:
 Keep the group small – “five to eight
members”
 Make the group as diverse as possible
 Emphasize that company rank is irrelevant.
 Have a well-defined problem, but don’t reveal
it ahead of time.
 Limit the session to 40 to 60 minutes.


Brainstorming Guidelines
 Take a field trip.
 Appoint a recorder.
 Use a seating pattern
 Throw logic out the window
 Encourage all ideas from team
 Establish a goal of quantity of ideas over
quality of ideas
 Forbid evaluation or criticism of any idea
 Encourages participants to use “idea hitch-
hiking’,


Techniques for Improving the
Creative Process
 Mind-mapping
 A graphical technique that encourages
thinking on both sides of the brain,
visually displays relationships among
ideas, and improves the ability to see a
problem from many sides.
The mind mapping process works this way:
 Start by writing down or sketching a picture
 Write down every idea that comes into your
mind


Creative Process
 Force Field Analysis
 A useful technique for evaluating the
forces that support and oppose a
proposed change.
 Three columns:

 Center: Problem to be addressed

 Left: Driving forces

 Right: Restraining forces

 Score each force (-1 to +4) and add them.


Creative Process
 Rapid Prototyping
 Transforming an idea into an actual model
that will point out flaws and lead to design
improvements.


Protecting Your Ideas
 Patent – a grant from the Patent and
Trademark Office to the inventor of
product, giving the exclusive right to
make, use, or sell the invention for
20 years from the date of
filing the patent application.


The Six Steps to a Patent
6. File the patent application

5. Complete the patent application

4. Study search results

3. Search existing patents

2. Document the device

1. Establish the invention’s novelty


 Trademark – any distinctive word,
symbol, design, name, logo, slogan, or
trade dress a company uses to identify
the origin of a product or to distinguish
it from other goods on the market.
 Servicemark – the same as a trademark
except that it identifies the source of a
service rather than a product.


 Copyright – an exclusive right that
protects the creators of original works
of authorship such as literary,
dramatic, musical, and artistic works.
 Copyrighted material is denoted by
the symbol ©.


Conclusion
 The creative process is a tenant of the
entrepreneurial experience.
 Success, and even survival itself, requires
entrepreneurs to tap their creativity.
 The seven steps of the creative process
transform an idea into a business reality.
 Creativity results in value, and value
provides a competitive advantage.
 Entrepreneurs protect their creative ideas
with patents, trademarks, servicemarks, and
copyrights to sustain a competitive edge.


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