The thought process of the entrepreneur varies from a normal person to an extent that it functions differently. Learn about the difference, the role creativity plays, what motivates an entrepreneur and the process of transitioning from Idea to Business opportunity! Also get an insight why business fail, so that you can avoid those mistakes and how to start a business with low investment.

1. Ms. Anubha Rastogi
Astt. Prof, Vidya School Of Business
2017-18

2. Anubha Rastogi | VSB
1. You take action.
2. You’re scared.
3. You’re resourceful
4. You obsess over cash flow.
5. You don’t ask for permission.
6. You’re fearless.
7. You welcome change.
8. You love a challenge.
9. You consider yourself an outsider.
10. You recover quickly.
11. You listen.
12. You focus on what matters (when
you figure out what matters).
12 Signs You Have an Entrepreneurial Mindset

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IDEA Generation : The Process

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Brainstorming
Requires creative thinking (soft-thinking)
Some suggestions to improve the brainstorming process:
1. Choose a facilitator
2. Brainstorm spontaneously, copiously
3. No criticism, no negatives
4. Record ideas in full view
5. Invent to the “void”
6. Resist becoming committed to one idea
7. Identify the most promising ideas
8. Refine and prioritize
Ten mental locks or attitudes that
discourage creative thinking:
 “The Right Answer”
 “That’s Not Logical”
 “Follow the Rules”
 “Be Practical”
 “Avoid Ambiguity”
 “To Err is Wrong”
 “Play is Frivolous”
 “That’s Not My Area”
 “Don’t Be Foolish”
 “I’m Not Creative”
Key to Brainstorming - Creativity

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Where Are The Opportunities?
Opportunities are spawned in
– changing circumstances
– chaos
– confusion
– inconsistencies
– lags or leads
– knowledge and information gaps
– vacuums in industry or markets
Look for opportunities in the following:
 things that ‘bug’ you
 things that bother others or stop people from doing
what they want, when they want, and the price they
want
 new advances in science and technology
 look for problems that need to be solved
 changes in our world whether those changes be in:
• demography
• society
• technology
• science
• politics
• etc.

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Idea Screening
Out of 100 ideas or more, there may be only one or two real opportunities. Superior business ideas that have the
potential to become opportunities have 3 main anchors:
1. They create or add significant value to a customer or end user.
2. They do so by solving a significant problem, or meeting a significant want or need, for which someone is willing
to pay a premium.
3. They therefore have a robust market, profit margin, and moneymaking characteristics.
Characteristics of the "Ideal” Business Idea
• Requires no initial investment
• Has a recognized, measurable market
• A perceived need for the product or service is present
• A dependable source of supply for the required inputs is available
• No government regulation
• Requires no labour force
• Provides 100 percent gross margin
• Buyers purchase frequently
• Receives favorable tax treatment
• Has a receptive, established
distribution system
• Has great publicity value
• Customers pay in advance
• No risk of product liability

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• Directly Usable
• Good Ideas, But Not For Us
• Good Idea, But Not for Now (Backburner)
• Needs More Work
• Powerful, But Not Usable
• Interesting, But Unusable
• Weak Value
• Unworkable
8 Ways To Classify Ideas

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Creativity in Entrepreneurship
• 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
• “Entrepreneurship is a way of thinking, reasoning and acting that is opportunity obsessed, holistic in
approach and leadership balanced.”
• 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
• “Creative destruction”: procedures and destroys or reallocates amassed resources
• Creative in identifying the gap in the market and think up a product

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• Several techniques to encourage creative thinking
– Ask Questions, Lateral Thinking, Six Thinking Hats, Brainstorming, TRIZ etc

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Idea to Business Opportunity

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The Entrepreneurial Motivation
• Entrepreneurial motivation refers to the way in which urges, drives, desires, striving, aspirations or needs
direct, control or explain the entrepreneurial behavior of human beings.
Sources of Entrepreneurial Motivation
Internal/Intrinsic
– Personal goals
– Need for achievement
– Ambition
External/Extrinsic
– Compulsion
– Support
– Successful entrepreneurs
– Access to capital
– Status

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A Model of Entrepreneurial Motivation

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Entrepreneurial Intentions Model
Factors Critical to Start-Up & Reasons for Not Starting-Up

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A Model of Entrepreneurial Motivation & Entrepreneurship Process

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Pull Factors
• Religious Values
• A lot of bounties in business
• Follow the teachings of the religion
• Duty to lead a prosperous life
• Psychological
• Doesn’t like to be controlled
• Want freedom
• Riches and Power
• Rich and famous
• Sophisticated life-style
• Service to the Society
• Corporate social responsibility
• Philanthropic activities
• Entrepreneurial Culture
• Entrepreneurial mindset
• Business succession
Push Factors
• Frustration
• Limited job mobility
• VSS and “retrenchment”
• Dissatisfaction
• Necessity
• No jobs
• Need to support family
• Lack educational qualifications
Pull & Push factors for Entrepreneurial Motivation.

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Entrepreneurial Competencies

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Developing Entrepreneurial Competencies
As we know that some of the entrepreneur’s qualities, on which his success is dependent, can be acquired
through education and training, ways to develop such competencies are:
o Gaining first hand knowledge about competencies. An earnest attempt must be made to understand at
length the various competencies which are required for the efficient performance of the assigned task.
o Competency Recognition: We should that what are the competencies required in an individual to perform in a
particular manner, so competencies are recognised in this step.
o Self Assessment: At this stage, the entrepreneurs create their own image with their present qualities and
identify the sap between the ideal image and real image.
o Comparison Of Competencies: At this stage, earnest attempt is made to find out the reasons for any
deficiency in the competencies. SWOT analysis can be applied for achieving desired results.
o Developing competencies And Feedback: The competencies required for a particular behaviour are
developed with the help of behaviourial scientists.

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The MAIR Model
Motivation
Ability
Idea
Resources
Potential
for Success
Research the
market &
plan
marketing
Explore funding
& plan finances
Gather team &
plan operations
Write
Your
Business
Plan
Take lots of
advice &
network
Negotiate
Yourself
Into
Business

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Aspects of the Entrepreneurial Process

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Challenges of A new venture startup
1. Money
2. Neglecting marketing/sales
3. Lack of planning
4. Finding the right people
5. Time management
6. Weak cofounders
7. Scaling up
8. Unwillingness to push yourself beyond the comfort zone
9. Competitors
10.Lack of Mentor
11.Poor management

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Top 20 Reasons Why STARTUP FAIL

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How To Begin With Low Investment
 Obtain a business microloan from a bank or other lender.
 Use the services of a business incubator or temporary office space provider to keep overhead costs
 Take advantage of free and low-cost marketing opportunities wherever possible, and be creative
 Start with social media
 Find free selling platforms
 Obtain all licenses on your own, and submit your own taxes. Invest in a small business tax software
 Barter to get what you want
 Find suppliers willing to deliver your first inventory order on credit. Initial inventory can be a sizable
 Utilize low-cost services
 Keep your workforce lean until your team begins to get behind on the work that needs to be done,