Part II – The Entrepreneurial

Perspective
Chapter 4 – Understanding the
Entrepreneurial Perspective
in Individuals
Chapter 5 – Developing Creativity and
Understanding Innovation
Chapter 6 – Ethical and Social
Responsibility Challenges for
Entrepreneurs
Copyright (c) 2004 by South-Western, a division of Thomson Learning. All rights reserved.
Chapter 5 – Developing
Creativity and
Understanding
Innovation
 Innovation
• The process by which
entrepreneurs convert
opportunities into marketable
ideas.
• More than just a good idea.
The Role of Creativity
Creativity is the generation of
ideas that result in the improved
efficiency or effectiveness of a
system.
 The Creative Process
• Phase 1: Background or Knowledge
Accumulation
• Phase 2: The Incubation Process
• Phase 3: The Idea Experience
• Phase 4: Evaluation and Implementation
 The Creative Thinking Process

Incubation

Knowledge Creative
Ideas
Accumulation Process

Evaluation
and
Implementation
 The Most Common Idea Stoppers
1. “Naah.”
2. “Can’t” (said with a shake of the head and an air
of finality)
3. “That’s the dumbest thing I’ve ever heard.”
4. “Yeah, but if you did that . . .” (poses an extreme
or unlikely disaster case)
5. “We already tried that – years ago.”
6. “We’ve done all right so far; why do we need
that?”
7. “I don’t see anything wrong with the way we’re
doing it now.”
8. “That doesn’t sound too practical.”
 The Most Common Idea Stoppers
9. “We’ve never done anything like that before.”
10. “Let’s get back to reality.”
11. “We’ve got deadlines to meet – we don’t have
time to consider that.”
12. It’s not in the budget.”
13. “Are you kidding?”
14. “Let’s not go off on a tangent.”
15. Where do you get these weird ideas?”
Developing Your
Creativity
 Recognizing Relationships
If you wish to improve your
creativity, it helps to look for
different or unorthodox
relationships among the elements
and people around you.
 Developing a Functional
Perspective
A creative person tends to view
things and people in terms of
how they can satisfy his or her
needs and help complete a
project.
 Using Your Brains
The right brain hemisphere helps an
individual understand analogies,
imagine things, and synthesize
information. The left brain
hemisphere helps the person
analyze, verbalize, and use rational
approaches to problem solving.
 Processes Associated with the
Two Brain Hemispheres
Left Hemisphere Right Hemisphere
• Verbal • Nonverbal
• Analytical • Synthesizing
• Abstract • Seeing Analogies
• Rational • Nonrational
• Logical • Spatial
• Linear • Intuitive
• Imaginative
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
 Financial Support for
Innovation
• Two major sources of financial
backing are:
–Venture Capital
–Government Support