1. 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.

2. Chapter 5 – Developing Creativity and Understanding Innovation

3. Innovation
The process by which entrepreneurs convert opportunities into marketable ideas.
More than just a good idea.

4. The Role of Creativity
Creativity is the generation of ideas that result in the improved efficiency or effectiveness of a system.

5. The Creative Process Phase 1: Background or Knowledge Accumulation
Phase 2: The Incubation Process
Phase 3: The Idea Experience
Phase 4: Evaluation and Implementation

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

7. 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.”

8. 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?”

9. Developing Your Creativity

10. 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.

11. 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.

12. 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.

13. 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

14. The Innovation Process

15. Types of Innovation
Invention
Extension
Duplication
Synthesis

16. Sources of Innovation Unexpected Occurrences Incongruities
Process Needs
Industry and Market Changes
Demographic Changes
Perceptual Changes
Knowledge-Based Concepts

17. Financial Support for Innovation
Two major sources of financial backing are:
Venture Capital
Government Support