The role of Creativity in Entrepreneurship

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The role of Creativity in Entrepreneurship Powered By Docstoc
					Creativity in Entrepreneurship

Presented by Nikhil Singh

• Education provides the foundation for creativity,
  flexibility, and wealth creation in the society.

• Motivation
   – Relating the different topics covered during this course
   – Application of the knowledge gained in class

• Beliefs
   – Role of system is as vital as the individual in bringing about the
     successful implementation of an innovative design or idea
   – Creativity can be developed, sharpened, amplified, because it is
     a factor of nurture as well as nature

• Discussion of the various definitions of creativity and its
  relevance to entrepreneurship

• The role of educational institutions in the success of
  entrepreneurial culture in US

• Current endeavors taken in the developing countries to
  encourage entrepreneurial skills

• Suggestions to encourage creativity in Entrepreneurship
  development programs, based on the learning of this
         What is creativity?

• Creative behaviors possessing an element of
  newness, novelty, and difference (Herrmann,

• Creativity is an act, an idea, or product that
  changes an existing domain, or that transforms an
  existing domain into a new one, and creative
  person is whose thoughts or actions bring these
  changes. (Csikszentmihalyi)
            What is creativity?

• Wallas’ description of creative thinking, suggests a
  model in four stages:
  –   Preparation: problem definition
  –   Incubation: resting phase, subconscious mind
  –   Illumination: idea of a solution comes to mind
  –   Verification: solutions are tested

• Koestler's premise on the creative process is
      Creativity and Innovation

• Creativity leads to innovation

• “Innovation is the specific instrument of entrepreneurship.
  The act endows resources with a new capacity to create
  wealth. Innovation, indeed, creates a resource.” (Drucker)

• Entrepreneurship is all about innovation

• Innovation is economic or social, rather than a technical

• “Entrepreneurship is a way of thinking, reasoning
  and acting that is opportunity obsessed, holistic in
  approach and leadership balanced.”

• Entrepreneurial qualities
  – commitment and determination, leadership, opportunity
    obsession, tolerance of risk, ambiguity and uncertainty,
    creativity, self-reliance and ability to adapt, and the
    motivation to excel, ability to use failure experience
    as a way of learning
Entrepreneurship and Creativity

• Creative in figuring out a way to work in a joint

• Creativity comes in writing an amazing sales letter
  or visualizing the perfect logo

• For practicing innovation, they need to be aware of
  change, and creatively use it to their advantage
  – The Unexpected, Incongruities, Process Need,
    Industry and Market Structures, Demographics.
    Changes in Perception, New Knowledge (Drucker)
Entrepreneurship and Creativity

• Tolerance for ambiguity is related to certain
  entrepreneurial styles

• “Creative destruction”
  – procedures and destroys or reallocates amassed

• Creative in identifying the gap in the market and
  think up a product
 Role of Educational Institutions

• Until 1970, very few universities offered
  entrepreneurship courses

• 1980s, entrepreneurship emerges as an important
  element in the dynamics of modern economics in

• In US, from a base of 16 in 1970, the number of
  schools offering entrepreneurship courses had
  grown to over 400 by 1995
          Nurturing Creativity

• Several techniques to encourage creative thinking
  – Ask Questions, Lateral Thinking, Six Thinking Hats,
    Brainstorming, TRIZ etc

• Technology and business incubators
  –   “complete innovation system”
  –   Provide financial, marketing and design support
  –   Generation of new creative ideas and business plans
  –   joint and cross-disciplinary learning
 Efforts in Developing Countries

• Strategy of Entrepreneurship Development programs
   – Accelerate the industrial development by enlarging the supply of
   – Industrial development of rural and less developed areas
   – Enlarging the small and small-medium enterprise sector
   – Providing productive self-employment to a number of young
     men and women

• EDPs are functioning in India as a “School for

• Provided with the many benefits and advantages
 Efforts in Developing Countries

• Diploma holders of science, engineering and
  technology are being identified and selected for
  entrepreneurial training
  – have technical competency needed to start the new

• Attainment of technological self-reliance is the
  immediate goal

• Entrepreneurship education should encourage
  students to challenge everything
  – there is no single right answer to choose

  – Most educated people are quite good at linear thinking

  – The creative person couples this depth with lateral

  – Innovative thoughts require more than logical thinking

• Programs should encourage activity-based
  – increases creativity, positive attitudes toward science,
    perception, logic development, communication skills,
    and reading readiness

  – Provides deeper understanding about how they can
    work better as individuals and together as a team

• Teamwork should be encouraged in these
  – People who makeup teams have valuable experience
    of different domains

  – Working in teams focusing on ideas for change,
    encourages commitment to that process

  – Fun to brainstorm in teams, humor and laughter are
    outcomes, which spur creativity

• Different techniques to enhance creativity must be
  incorporated in the courses
  – awareness of the different tools available such as TRIZ
    and Thinker Toys
  – practice the proper uses of brainstorming
  – encouragement to use tools for coming up with new

• The class should be structured to have elements
  of surprise for the students

• Use of IT tools to promote creativity and thinking,
  should be incorporated in studies

• Program should try to present familiar information
  in unfamiliar context
  – presenting information in new and innovative ways to
    help students look for new possibilities

• Programs should be exciting and fun
  – humor encourage innovative thinking

• Business and technological incubators should be
  – Constant creativity and innovation in an appropriately
    rich environment where novel ideas can be launched
    and tested

• Programs should entail approaches and activities
  that build the self-confidence of the students
  – Needed most in the verification step (Wallas)
     Summary and Conclusion

• Creativity plays a very significant role in

• Educational institutions play a vital role in
  enhancing creative skills of individuals and teams

• The various techniques and tools used to enhance
  creativity in Entrepreneurial institutes in US can be
  applied to enrich the entrepreneurial culture of
  developing nations
           Thank You

Time for Questions and

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