2. Creative: Involving creation or
invention; showing imagination and
originality (Oxford Dictionary)
Innovative: Introducing something
new (Oxford Dictionary)
Inventive: Making or Designing
something new (Oxford Dictionary)
3. Creativity
Creativity is the engine of
invention and innovation
The essence of creativity is
combining two or more ideas to
arrive at an entirely new one
Creative ideas must add value
4. Creative Environment
(Triandis 1990)
Permits people to work in areas of
their greatest interest.
Encourages employees to have broad
contact with stimulating colleagues
Allows taking moderate risks
Tolerates some failures and non-
conformity
Provides appropriate rewards and
recognition
5. Creative Person (Barron 1969)
Conceptual Fluency (i.e. being able to
express ideas well and formulate the ideas as
one proceeds)
The ability to produce a large number of
ideas quickly
The ability to generate original and unusual
ideas
The ability to separate source (who said it)
from content (what was said) in evaluating
information
6. Creative Person (contd.)
The ability to stand out and be a little deviant
from others
Interest in the problem one faces
Perseverance in following problems wherever
they lead
Suspension of judgment and no early
commitment
The willingness to spend time analyzing and
exploring
A genuine regard for intellectual and cognitive
matters
7. Gains of Creativity
Produces greater quantities
Improves efficiency
Retain seeds
Provides Opportunities for
combinations
Increase potential for better decisions
Reduces personal conflicts
Increases group ownership
8. Innovation
What is Innovation?
Specific Instrument of Entrepreneurship
Purposeful & Organized Search for Change
Analysis of Opportunities such Change might
offer
New ways of delivering value to the customer
9. Purpose of Innovation
Response to increased competitive
pressure
Discontinuity
Profitability
Market Leadership
10. Principles of Innovation
Innovation must be approached as a
discipline
Innovation must be approached
comprehensively
Innovation must include an
organized, systematic and continual
search for new opportunities
11. Principles of Innovation
(contd.)
Innovation must involve everyone in
the organization
Innovation must be customer- centered
16. Process of Innovation
Selecting Innovation Goals
Gathering Information
Clarifying the Problem
Seeking Ideas and Stimuli from around the
Organization
Selecting Ideas Worth Exploring
Developing an Innovation Road map
Outlining the possible Plan
Gaining Commitment
Implementing the final Plan
17. “Great Ideas are not
innovative unless
they are successfully
Implemented”
18. Components of an Innovation
May never be developed into
marketable products
Invention
Has no
Instantaneous Scientific Adopting
commercial Discovery Innovation Invention
value
Market
Buying or Ignoring the Innovation
19. The Practices of
Entrepreneurship in a
New Venture
The need for market focus
Financialforesight
Building a top management team
Where can I contribute
The need for outside advice
20. Refine / Modify
Gain Commitment
Possible Solutions/ Decision
Proposals Innovation
Idea Cycle Experimental
Development Action
Speculative Constructive
Exploration Review
Operational
Routine Cycle Known
Solutions
Procedures
Rules
23. Importance of recruiting and
motivating employees
Establish procedures for hiring new
employees
Options - advertising, using a network of
friends and business associates, and
contracting with a personnel agency
Selection – ability and commitment
Be a role model for the employees
Offer continuous training and promotion
“People must realize their full potential”
24. Develop effective record
keeping and financial
controls (MIS)
Tax planning
Sales review
Inventory control
Performance appraisal
Payment of government dues
“Systems are the building blocks”
25. Accounting – accrual versus cash
basis
Accrual method Cash method
Sales are accounted Sales are not counted
when sales are made. until cash is received.
Expenses are accounted Expenses are not
when they are actually counted until cash is
incurred actually paid out
“Projections may be deceptive”
26. Ratios can be used to assess
financial strengths and
weaknesses
Liquidity ratios
Current ratio
Acid test ratio
Activity ratios
Average collection period
Inventory turnover
Leverage ratios
Debt ratio
Debt equity ratio
Profitability ratios
Net profit margin
Return on investment
“Ratios can be accounting
jugglery”
27. Business is marketing
The early venture must have an
effective marketing plan because
marketing is “the engine that pulls the
entire train”
Marketing is business
28. To effectively promote the
new venture
Develop awareness of the product or
service offered through publicity and
advertising
publicity is free advertising provided by a
media outlet.
Publicity introduces the company
Advertising focuses on specific
customers
Ad agencies provide promotional
services.
29. Avoid the “ Field of
Dreams.”
“If we build it, they will come.”–
Field of Dreams
NEWS FLASH: If you don’t
promote it, they aren’t
coming
31. Growth is attitude
Not all new ventures grow rapidly
Many continue to exist at a
satisfying level of sales with little
or no growth.
Entrepreneur’s interest and
market response to the product
dictate future growth.
32. Strategic skills needed to
effectively manage the
growth
Good records and financial controls
Management of the inventory
Human relations
New products and services
(innovation)
Long term perspective of the venture
33. “An effective organization culture is
needed to meet the challenges of
business growth”
An owner should:
Communicate
Listen
Delegate responsibility
Provide feedback
Train key employees
34. Long term Strategic Plan
Restatement of the mission
Long term goals and objectives
Strategy formulation
Strategic plan implementation
Feedback and control
35. Customer
service/satisfaction
Record and assess complaints and
comments from customers
Plan regular meeting with staff members to
determine why the complaints are occurring
and what solutions can be enacted
Focus groups can be used to monitor and
track customer satisfaction.
Customer surveys enable the entrepreneur
to standardize measured responses
regarding service/satisfaction
36. Customer Relations
The entrepreneur should have a
certain acceptable expectation
regarding service that, if not met,
should involve some consideration of
change. Entrepreneurs must be
people who care about their
customers and are willing to do
whatever it takes to ensure favourable
customer relations.
37. Expand the venture through:
Expansion – horizontal/ vertical
Diversification- related / unrelated
Joint venture
Acquisitions
Mergers
Leveraged buyouts
Franchising
Business process reengineering
Global ancillarisation
38. Peter.F.Drucker’s tips for
growth-oriented enterprises
The need for market focus
Financial foresight
Building a top management team
Where can I contribute?
The need for outside advice
