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

Knowledge Accumulation Evaluation and Implementation The Creative Thinking Process Incubation Knowledge Accumulation Creative Process Ideas Evaluation and Implementation

The Most Common Idea Stoppers “Naah.” “Can’t” (said with a shake of the head and an air of finality) “That’s the dumbest thing I’ve ever heard.” “Yeah, but if you did that . . .” (poses an extreme or unlikely disaster case) “We already tried that – years ago.” “We’ve done all right so far; why do we need that?” “I don’t see anything wrong with the way we’re doing it now.” “That doesn’t sound too practical.”

The Most Common Idea Stoppers “We’ve never done anything like that before.” “Let’s get back to reality.” “We’ve got deadlines to meet – we don’t have time to consider that.” It’s not in the budget.” “Are you kidding?” “Let’s not go off on a tangent.” 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 Verbal Analytical Abstract Rational Logical Linear Right Hemisphere Nonverbal Synthesizing Seeing Analogies Nonrational Spatial 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