chapter # 2 entrepreneureship

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


Chapter# 2Chapter# 2Prepared by:Prepared by: Muhmmad Muhmmad

usman ikram roll usman ikram roll # 94# 94

waqas majeed waqas majeed roll# 95roll# 95

shoaib ramzan shoaib ramzan roll # 104roll # 104

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Inside the Entrepreneurial Mind: Inside the Entrepreneurial Mind: From Ideas to RealityFrom Ideas to Reality

Inside the Entrepreneurial Mind: Inside the Entrepreneurial Mind: From Ideas to RealityFrom Ideas to Reality

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Chapter 2 Chapter 2 Inside the Entrepreneurial Mind Inside the Entrepreneurial Mind

From Ideas to From Ideas to RealityReality

The best way to have a good The best way to have a good idea is to have lots of ideas. idea is to have lots of ideas.

Linus PaulingLinus Pauling


Creativity Creativity – the ability – the ability

to develop new ideas to develop new ideas

and to discover new and to discover new

ways of looking at ways of looking at

problems and problems and

opportunities; opportunities;

thinkingthinking new things new things

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

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EntrepreneurshipEntrepreneurship EntrepreneurshipEntrepreneurship – the result of a – the result of a

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

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Failure: Part of the Failure: Part of the Creative Process!Creative Process!

For every 3,000 new product ideas:For every 3,000 new product ideas: Four make it to the development stage.Four make it to the development stage. Two are actually launched.Two are actually launched. One becomes a success in the market.One becomes a success in the market.

On average, new products account for 40% On average, new products account for 40% of companies’ sales!!of companies’ sales!!

Creativity is an important source of building Creativity is an important source of building a competitive advantage. a competitive advantage.



Can We Can We LearnLearn to Be Creative? to Be Creative?

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By overcoming paradigms and by suspendingBy overcoming paradigms and by suspending

conventional thinking long enough toconventional thinking long enough to

consider new and different alternatives!consider new and different alternatives!

Yes!


What is paradigm?What is paradigm?

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



How the human brain works?How the human brain works?

There is two types of There is two types of

hemispheres of brain hemispheres of brain

that tends to specialize that tends to specialize

in certain functions.in certain functions. Left brain Left brain Right brainRight brain

..



Left brain Left brain thinking vertically. It thinking vertically. It handles our language, logic and handles our language, logic and symbols;symbols;

Right brain Right brain takes care of our body’s takes care of our body’s emotional,intutive, and spatial emotional,intutive, and spatial functions.functions.



Left-Brained or Left-Brained or Right-Brained?Right-Brained?

Entrepreneurship requires Entrepreneurship requires bothboth left-and left-and right-brained thinking.right-brained thinking.

Right-brained thinking draws on Right-brained thinking draws on divergentdivergent reasoning, the ability to create a multitude reasoning, the ability to create a multitude of original, diverse ideas.of original, diverse ideas.

Left-brained thinking counts on Left-brained thinking counts on convergentconvergent reasoning, the ability to reasoning, the ability to evaluate multiple ideas and to choose the evaluate multiple ideas and to choose the best solution to a problem. best solution to a problem.



Barrier of creativityBarrier of creativity

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1) Searching for one right answer: 1) Searching for one right answer: The first mental lock of creativity is that The first mental lock of creativity is that

we are looking for the one right. In fact each we are looking for the one right. In fact each question has more than one right answer. But question has more than one right answer. But we do not look for other answer and did not we do not look for other answer and did not search for other answer.search for other answer.

2) Focusing on ” being logical” :2) Focusing on ” being logical” : Logic is the valuable part of creativity Logic is the valuable part of creativity

process, especially when evaluating ideas process, especially when evaluating ideas and implementing them. However, in early and implementing them. However, in early imagination phases of the process, logical imagination phases of the process, logical thinking can restrict creativity.thinking can restrict creativity.


Barrier of creativityBarrier of creativity3) Blindly following the rules:3) Blindly following the rules:

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



4) 4) constantly being practical:constantly being practical: imaging impractical answer to “what imaging impractical answer to “what

if” question can be powerful way to if” question can be powerful way to creative ideas. Suspending practicality creative ideas. Suspending practicality for while frees the mind to consider for while frees the mind to consider creative solutions that otherwise might creative solutions that otherwise might never arise.never arise.



Barrier of creativity Barrier of creativity

5) viewing play as frivolous:5) viewing play as frivolous:

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

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Barrier of creativityBarrier of creativity

6) Becoming overly specialized:6) Becoming overly specialized:

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



Barrier of creativity Barrier of creativity 7) Avoiding ambiguity:7) Avoiding ambiguity: Ambiguity can be powerful creative Ambiguity can be powerful creative

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



Barrier of creativityBarrier of creativity 8) 8) Fearing looking foolish Fearing looking foolish :: The fool’s is to whack at habits and The fool’s is to whack at habits and

rules that keep us thinking in the same rules that keep us thinking in the same old ways. Entrepreneurs are the top-old ways. Entrepreneurs are the top-notch “fools”. They are constantly notch “fools”. They are constantly questioning and challenging accepted questioning and challenging accepted ways of doing things and assumptions ways of doing things and assumptions that go with them.that go with them.



9) 9) Fearing mistakes and failure:Fearing mistakes and failure: Creative people realize that trying something new Creative people realize that trying something new

often leads to failure.often leads to failure.

A famous inventor Charles F. A famous inventor Charles F.

Kettering, explains, “You fail Kettering, explains, “You fail

Because your ideas aren’t right, Because your ideas aren’t right,

but you should learn to fail but you should learn to fail

intelligently. When you fail,intelligently. When you fail,

find out why failed and each find out why failed and each

time it will bring you nearer totime it will bring you nearer to

goal. goal. EntrepreneursEntrepreneurs

equate failure with innovation equate failure with innovation

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Barrier of creativityBarrier of creativity 10) 10) Believing that “I am not creative”:Believing that “I am not creative”: Some people limit themselves because they Some people limit themselves because they

believe that they are not creative. But a successful believe that they are not creative. But a successful entrepreneur recognize that thinking” I’m not entrepreneur recognize that thinking” I’m not creative” is merely an excuse for inaction. Everyone creative” is merely an excuse for inaction. Everyone has within him or her potential to be creative; not has within him or her potential to be creative; not every one tap that potential, however successful every one tap that potential, however successful entrepreneurs find a way to unleash their creative entrepreneurs find a way to unleash their creative powers on problems and opportunitiespowers on problems and opportunities..

Conclusion:Conclusion: By avoiding these 10 barriers, By avoiding these 10 barriers,

entrepreneurs can unleash their own creativity and entrepreneurs can unleash their own creativity and the creativity of those around them as well. the creativity of those around them as well.

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Tips for Enhancing Tips for Enhancing Organizational CreativityOrganizational Creativity

Enhancing organizational creativity:Enhancing organizational creativity:1) Embracing diversity:1) Embracing diversity: One of the best ways to One of the best ways to cultivate a culture of creativity cultivate a culture of creativity is to hire a diverse workforce.is to hire a diverse workforce.2) Expecting creativity2) Expecting creativity:: Employees tend to rise-or fall- to the level of Employees tend to rise-or fall- to the level of

expectations entrepreneurs have of them. One of expectations entrepreneurs have of them. One of the best ways to communicate the expectation of the best ways to communicate the expectation of creativity is to give employees permission to be creativity is to give employees permission to be creative.creative.

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3) Expecting and tolerating failure:3) Expecting and tolerating failure: Creative ideas will produce failures as well as Creative ideas will produce failures as well as

successes. People who never fail are not being successes. People who never fail are not being creative. Creativity requires taking chances, and creative. Creativity requires taking chances, and managers must remove employees’ fear of failure. managers must remove employees’ fear of failure.

4) Encouraging curiosity:4) Encouraging curiosity:

Entrepreneurs and their Entrepreneurs and their employees constantly shouldemployees constantly should ask: what if” questions and ask: what if” questions and take a “maybe we could…” take a “maybe we could…” attitude. Doing so allows themattitude. Doing so allows them to break out of assumptions thatto break out of assumptions that limit creativity.limit creativity.

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5) Viewing problems as challenges:5) Viewing problems as challenges:

Every problem offers the opportunity Every problem offers the opportunity for innovation. Entrepreneurs who allow for innovation. Entrepreneurs who allow employees to dump all their problems employees to dump all their problems on their desks to be “fixed” do nothing on their desks to be “fixed” do nothing to develop creativity within those to develop creativity within those employees.employees.



6) providing creativity training : 6) providing creativity training :

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




7) Providing support7) Providing support:: Entrepreneurs must give Entrepreneurs must give employees the tools and the employees the tools and the resources they need to be creative.resources they need to be creative. One of the most valuable resourcesOne of the most valuable resources is time.is time.8) Developing a procedure for capturing ideas:8) Developing a procedure for capturing ideas: Workers in every organization come up Workers in every organization come up

with creative ideas; however, not every with creative ideas; however, not every organization is prepared to capture those organization is prepared to capture those ideas.ideas.

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9) Rewarding creativity :9) Rewarding creativity : Entrepreneur can encourageEntrepreneur can encourage

creativity by rewarding it when creativity by rewarding it when it occurs. Financial rewards canit occurs. Financial rewards can

be effective motivators of creative behavior, and as be effective motivators of creative behavior, and as well as nonmonetary rewardswell as nonmonetary rewards..

10) Modeling creative behavior: 10) Modeling creative behavior: Creativity is “caught” as much as Creativity is “caught” as much as it “taught”. Companies that excel it “taught”. Companies that excel at innovation find that passion for at innovation find that passion for creativity starts at top. creativity starts at top.

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Tips for Enhancing Tips for Enhancing Individual CreativityIndividual Creativity



Tips for Enhancing Tips for Enhancing Individual CreativityIndividual Creativity Allow yourself to be creativeAllow yourself to be creative Give your mind fresh input every dayGive your mind fresh input every day Recognize the creative Recognize the creative

power of mistakespower of mistakes Keep a journal to record your thoughts Keep a journal to record your thoughts

and ideasand ideas Listen to other peopleListen to other people

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Tips for Enhancing Tips for Enhancing Individual CreativityIndividual Creativity

Talk to a childTalk to a child Keep a toy box in your officeKeep a toy box in your office Read books on stimulating Read books on stimulating

creativity or take a class creativity or take a class

on creativityon creativity Take some time offTake some time off



The Creative ProcessThe Creative Process


PreparationPreparation InvestigationInvestigation TransformationTransformation

IncubationIncubation IlluminationIllumination VerificationVerification

ImplementationImplementation








PreparationPreparation Preparation:Preparation:

This step involves getting the mind ready for This step involves getting the mind ready for creative thinking. Preparation might include a creative thinking. Preparation might include a formal education, on-the-job training, work formal education, on-the-job training, work experience, and taking advantage of other learning experience, and taking advantage of other learning opportunities.opportunities.

How can you prepare your mind for creative How can you prepare your mind for creative thinking?thinking?

Adopt the attitude of a lifelong studentAdopt the attitude of a lifelong student Read…a lot…and not just in your field of expertiseRead…a lot…and not just in your field of expertise

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PreparationPreparation

Clip articles of interest to you and create Clip articles of interest to you and create a file for thema file for them

Take time to discuss your ideas with Take time to discuss your ideas with other peopleother people

Join professional or trade associations Join professional or trade associations and attend the meetingsand attend the meetings

Invest time in studying other.Invest time in studying other.

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InvestigationInvestigation This step requires developingThis step requires developing a solid understanding of the a solid understanding of the problem, situation, or decision problem, situation, or decision at hand. To create new ideas and at hand. To create new ideas and

concepts in a particular field, an individual concepts in a particular field, an individual first must study the problem and first must study the problem and understand its basic components. understand its basic components. Creative thinking comes about when Creative thinking comes about when people make careful observations of the people make careful observations of the world around them and then investigate world around them and then investigate the way things work. the way things work.









TransformationTransformation Involves viewing both Involves viewing both the similarities and the the similarities and the differences among thedifferences among the information collected. information collected. Two types of thinking are required:Two types of thinking are required:

ConvergentConvergent – the ability to see the – the ability to see the similarities and the connections among similarities and the connections among various and often diverse data and events. various and often diverse data and events.

DivergentDivergent – the ability to see the – the ability to see the differences among various data and differences among various data and events. events.

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TTransformationransformation How can you transform information How can you transform information

into purposeful ideas? into purposeful ideas? Grasp the “big picture” by looking for Grasp the “big picture” by looking for

patterns that emerge.patterns that emerge. Rearrange the elements of the situation.Rearrange the elements of the situation. Use Use synapticsynaptic, taking two seeming , taking two seeming

nonsensical ideas and combining them. nonsensical ideas and combining them. Remember that several approaches can be Remember that several approaches can be

successful. If one fails, jump to another. successful. If one fails, jump to another.

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IncubationIncubation Allow your subconsciousAllow your subconscious

to reflect on the information to reflect on the information

collected.collected. Walk away from the situation.Walk away from the situation. Take the time to daydream.Take the time to daydream. Relax – and play – regularly.Relax – and play – regularly. Dream about the problem or opportunity.Dream about the problem or opportunity. Work on the problem in a different Work on the problem in a different

environment. environment. 2 - 42Ch. 2: Inside the Entrepreneurial Mind








IlluminationIllumination This phase of the creative process occurs This phase of the creative process occurs

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




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VerificationVerification Validate the idea as accurate Validate the idea as accurate and useful. and useful.

Is it Is it reallyreally a better solution? a better solution? Will it work?Will it work? Is there a need for it?Is there a need for it? If so, what is the best application of this idea in If so, what is the best application of this idea in

the marketplace?the marketplace? Does this product or service fit into our core Does this product or service fit into our core

competencies?competencies? How much will it cost to produce or to How much will it cost to produce or to

provide? provide? Can we sell it at a reasonable price that will Can we sell it at a reasonable price that will

produce a profit?produce a profit?

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



Techniques for Improving Techniques for Improving the Creative Processthe Creative Process

Brainstorming:Brainstorming:

The goal is to create a large The goal is to create a large quantityquantity of novel and imaginative ideas. of novel and imaginative ideas.

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Brainstorming GuidelinesBrainstorming Guidelines

For a brainstorming session to be For a brainstorming session to be successful, entrepreneurs should follow successful, entrepreneurs should follow these guidelines:these guidelines:

Keep the group small – “five to eight Keep the group small – “five to eight members”members”

Make the group as diverse as possibleMake the group as diverse as possible Emphasize that company rank is irrelevant.Emphasize that company rank is irrelevant. Have a well-defined problem, but don’t reveal Have a well-defined problem, but don’t reveal

it ahead of time.it ahead of time. Limit the session to 40 to 60 minutes.Limit the session to 40 to 60 minutes.

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Brainstorming GuidelinesBrainstorming Guidelines Take a field trip.Take a field trip. Appoint a recorder.Appoint a recorder. Use a seating patternUse a seating pattern Throw logic out the windowThrow logic out the window Encourage all ideas from teamEncourage all ideas from team Establish a goal of quantity of ideas over Establish a goal of quantity of ideas over

quality of ideasquality of ideas Forbid evaluation or criticism of any ideaForbid evaluation or criticism of any idea Encourages participants to use “idea hitch-Encourages participants to use “idea hitch-

hiking’,hiking’,

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Techniques for Improving the Techniques for Improving the Creative ProcessCreative Process

Mind-mappingMind-mapping A graphical technique that encourages A graphical technique that encourages

thinking on both sides of the brain, thinking on both sides of the brain, visually displays relationships among visually displays relationships among ideas, and improves the ability to see a ideas, and improves the ability to see a problem from many sides. problem from many sides.

The mind mapping process works this way:The mind mapping process works this way: Start by writing down or sketching a pictureStart by writing down or sketching a picture Write down every idea that comes into your Write down every idea that comes into your

mindmind

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Force Field AnalysisForce Field Analysis A useful technique for evaluating the A useful technique for evaluating the

forces that support and oppose a forces that support and oppose a proposed change. proposed change.

Three columns: Three columns: Center: Problem to be addressedCenter: Problem to be addressed Left: Driving forcesLeft: Driving forces Right: Restraining forcesRight: Restraining forces

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




Rapid PrototypingRapid Prototyping Transforming an idea into an actual model Transforming an idea into an actual model

that will point out flaws and lead to design that will point out flaws and lead to design improvements. improvements.


Protecting Your IdeasProtecting Your Ideas

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

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The Six Steps to a PatentThe Six Steps to a Patent

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1. Establish the invention’s novelty

2. Document the device

3. Search existing patents

5. Complete the patent application

6. File the patent application

4. Study search results



TrademarkTrademark – any distinctive word, – any distinctive word, symbol, design, name, logo, slogan, or symbol, design, name, logo, slogan, or trade dress a company uses to identify trade dress a company uses to identify the origin of a product or to distinguish the origin of a product or to distinguish it from other goods on the market. it from other goods on the market.

ServicemarkServicemark – the same as a trademark – the same as a trademark except that it identifies the source of a except that it identifies the source of a service rather than a product. service rather than a product.

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CopyrightCopyright – an exclusive right that – an exclusive right that protects the creators of original works protects the creators of original works of authorship such as literary, of authorship such as literary, dramatic, musical, and artistic works. dramatic, musical, and artistic works.

Copyrighted material is denoted by Copyrighted material is denoted by the symbol the symbol ©. ©.

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Conclusion The creative process is a tenant of the The creative process is a tenant of the

entrepreneurial experience. entrepreneurial experience. Success, and even survival itself, requires Success, and even survival itself, requires

entrepreneurs to tap their creativity. entrepreneurs to tap their creativity. The seven steps of the creative process The seven steps of the creative process

transform an idea into a business reality. transform an idea into a business reality. Creativity results in value, and value Creativity results in value, and value

provides a competitive advantage. provides a competitive advantage. Entrepreneurs protect their creative ideas Entrepreneurs protect their creative ideas

with patents, trademarks, servicemarks, and with patents, trademarks, servicemarks, and copyrights to sustain a competitive edge. copyrights to sustain a competitive edge.

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QuestionsQuestions

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chapter # 2 entrepreneureship