1. Creativity in Entrepreneurship
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2. Foreword
• Education provides the foundation for creativity,
flexibility, and wealth creation in the society.
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3. Overview
• Discussion of the various definitions of creativity and its
relevance to entrepreneurship
• The role of educational institutions in the success of
entrepreneurial culture
• Current endeavors taken in the developing countries to
encourage entrepreneurial skills
• Suggestions to encourage creativity in Entrepreneurship
development programs, based on the learning of this
class
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4. 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)
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5. What is creativity?
• 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
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6. 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
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7. Entrepreneurship
• “Entrepreneurship is a way of thinking, reasoning
and acting that is opportunity obsessed, holistic in
approach and leadership balanced.”
• Entrepreneurial qualities
– commitment and determination, leadership, opportunity
obsession, tolerance of risk, ambiguity and uncertainty,
creativity, self-reliance and ability to adapt, and the
motivation to excel, ability to use failure experience
as a way of learning
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8. 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)
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9. Entrepreneurship and Creativity
• 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
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10. Role of Educational Institutions
• Until 1970, very few universities offered
entrepreneurship courses
• 1980s, entrepreneurship emerges as an important
element in the dynamics of modern economics in
US
• In US, from a base of 16 in 1970, the number of
schools offering entrepreneurship courses had
grown to over 400 by 1995
• What is the position of our country? 10

11. Nurturing Creativity
• Several techniques to encourage creative thinking
– Ask Questions, Lateral Thinking, Six Thinking Hats,
Brainstorming, Mind Maps etc
• Technology and business incubators
– “complete innovation system”
– Provide financial, marketing and design support
– Generation of new creative ideas and business plans
– joint and cross-disciplinary learning
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12. Efforts in Developing Countries
• Strategy of Entrepreneurship Development programs
(EDPs).
– Accelerate the industrial development by enlarging the supply of
entrepreneurs
– Industrial development of rural and less developed areas
– Enlarging the small and small-medium enterprise sector
– Providing productive self-employment to a number of young
men and women
• EDPs are functioning in India as a “School for
Entrepreneurs”
• Provided with the many benefits and advantages 12

13. Efforts in Developing Countries
• Diploma holders of science, engineering and
technology are being identified and selected for
entrepreneurial training
– have technical competency needed to start the new
ventures
• Attainment of technological self-reliance is the
immediate goal
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14. Recommendations
• Entrepreneurship education should encourage
students to challenge everything
– there is no single right answer to choose
– Most educated people are quite good at linear thinking
– The creative person couples this depth with lateral
creativity
– Innovative thoughts require more than logical thinking
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15. Recommendations
• Programs should encourage activity-based
projects
– increases creativity, positive attitudes toward science,
perception, logic development, communication skills,
and reading readiness
– Provides deeper understanding about how they can
work better as individuals and together as a team
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16. Recommendations
• Teamwork should be encouraged in these
programs
– People who makeup teams have valuable experience
of different domains
– Working in teams focusing on ideas for change,
encourages commitment to that process
– Fun to brainstorm in teams, humor and laughter are
outcomes, which spur creativity
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17. Recommendations
• Different techniques to enhance creativity must be
incorporated in the courses
– awareness of the different tools available such as TRIZ
and Thinker Toys
– practice the proper uses of brainstorming
– encouragement to use tools for coming up with new
ideas
• The class should be structured to have elements
of surprise for the students
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18. Recommendations
• Use of IT tools to promote creativity and thinking,
should be incorporated in studies
• Program should try to present familiar information
in unfamiliar context
– presenting information in new and innovative ways to
help students look for new possibilities
• Programs should be exciting and fun
– humor encourage innovative thinking 18

19. Recommendations
• Business and technological incubators should be
established
– Constant creativity and innovation in an appropriately
rich environment where novel ideas can be launched
and tested
• Programs should entail approaches and activities
that build the self-confidence of the students
– Needed most in the verification step (Wallas)
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20. Summary and Conclusion
• Creativity plays a very significant role in
Entrepreneurship
• Educational institutions play a vital role in
enhancing creative skills of individuals and teams
• The various techniques and tools used to enhance
creativity in Entrepreneurial institutes in US can be
applied to enrich the entrepreneurial culture of
developing nations
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21. 21

22. The Innovation Process
• Types of Innovation
– Invention
– Extension
– Duplication
– Synthesis
• Sources of Innovation
– Unexpected occurrences
– Incongruities
– Process needs
– Industry and market
changes
– Demographic changes
– Perceptual changes
– Knowledge-based concepts
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23. Type Description Examples
Invention Totally new product, service,
or process
Wright brothers—airplane
Thomas Edison—light bulb
Alexander Graham Bell—telephone
Extension New use or different
application of an already
existing product, service,
or process
Ray Kroc—McDonald’s
Mark Zuckerberg—Facebook
Barry Sternlicht—Starwood Hotels &
Resorts
Duplication Creative replication of an
existing concept
Wal-Mart—department stores
Gateway—personal computers
Pizza Hut—pizza parlor
Synthesis Combination of existing
concepts and factors into a
new formulation or use
Fred Smith—Fed Ex
Howard Schultz—Starbucks
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24. Major Innovation Myths
• Myth 1: Innovation is planned and predictable
• Myth 2: Technical specifications should be
thoroughly prepared
• Myth 3: Creativity relies on dreams and blue-sky
ideas
• Myth 4: Big projects will develop betterinnovations
than smaller ones
• Myth 5: Technology is the driving force of
innovation success
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