Entrepreneurship Inside the mind of an Entrepreurship

1. Inside the Entrepreneurial Mind

2. At the end of this lectures, students should
understand the following:

3. Creativity – Essential to Survival

4. Barriers to Creativity – 10 mental Blocks
• Searching for the one “right” answer
• Focusing on “being logical.”
• Blindly following the rules
• Constantly being practical
• Viewing play as frivolous
• Becoming overly specialized
• Avoiding ambiguity
• Fearing looking foolish
• Fearing mistakes and failure
• Believing that “I’m not creative
Roger von Oech - A Whack on the Side of the Head

5. Enhancing Individual Creativity
• Allow yourself to be creative
• Forget the “rules”
• Give your mind fresh input every day
• Take up a hobby
• Travel—and observe
• Observe the products and services of other ventures,
especially those in completely different markets
• Recognize the creative power of mistakes and accidents
• Notice what is missing
• Look for ways to turn trash into treasure
• Keep a journal handy to record your thoughts and ideas
• Listen to other people

6. Enhancing Individual Creativity
• Listen to customers
• Get adequate sleep
• Watch a movie
• Talk to a child
• Do something ordinary in an unusual way
• Keep a toy box in your office
• Take note of your “pain points”
• Do not throw away seemingly “bad” ideas
• Collaborate with others
• Read books on stimulating creativity or take a class on creativity
• Take some time off
• Be persistent

7. The Creative Process
PREPARATION -
“creativity favors
the prepared
mind”
INVESTIGATI
ON –
“understand
the problem
or situation”
TRANSFORMATI
ON – “view the
similarities &
differences”
INCUBATIO
N – “reflect
on the
information
collected”
ILLUMINATIO
N –
“spontaneous
breakthrough
”
VERIFICATION
– “test it on a
cold and hard
realities”
IMPLEMENTATI
ON –
“transform the
idea into
reality”

8. Techniques for Improving the Creative Process
Brainstorming
• A process in
which a small
group of people
interact with
very little
structure with
the goal of
producing a
large quantity of
novel and
imaginative
ideas.
Mind Mapping
• A graphical
technique that
encourages
thinking on both
sides of the
brain, visually
displays the
various
relationships
among ideas,
and improves
the ability to
view a problem
from many sides.
Force-Field
Analysis
• A useful
technique for
evaluating the
forces that
support and
oppose a
proposed
change.
Rapid Prototyping
• The process of
creating a model
of an idea,
enabling an
entrepreneur to
discover flaws in
the idea and to
make
improvements in
the design.

10. INNOVATION
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11. 11
Innovation is the ability to apply creative solutions to
those problems and opportunities to enhance or
enrich people’s lives.
Simply having a great new idea is not enough;
transforming the idea into a tangible product, service,
or business venture is the essential next step.
“Big ideas are just that—ideas—until you execute,”
says Krisztina Holly

12. 12
Entrepreneurship is the result of a disciplined,
systematic process of applying creativity and innovation
to needs and opportunities in the marketplace.
Innovation must be a constant process because most
ideas don’t work, and most innovations fail. One writer
explains, “Trial—and lots of error—is embedded in
entrepreneurship.”
Entrepreneurship requires business owners to be bold
enough to try their new ideas, flexible enough to throw
aside those that do not work, and wise enough to learn
about what will work based on their observations of
what did not

13. Open Class Discussion
How to turn your creative ideas into
innovative products?
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14. SPOTTING OPPORTUNITIES
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15. A market opportunity is a gap left
in a market by those who
currently serve it, giving a chance
to others to add unrealized value
by performing differently from
and better than competitors in
order to create new possibilities.
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Market Opportunity

16. Since ideas are many, developing
the idea into a market
opportunity, implementing it and
building a successful business
around it are the important
aspects of entrepreneurship.
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Market Opportunity

17. Spotting Opportunities
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18. Spotting Opportunities
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19. Ways to spot an opportunity
Source: The Entrepreneurship Competence Framework | Ideas & Opportunities, EU.
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20. Recognizing an opportunity
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21. How could you, as an entrepreneur,
recognize an opportunity?
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22. Finding a gap in the market
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23. Finding a gap in the market CONT.
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24. Some sources of Business Ideas
• Personal experiences, problems, challenges & yearnings
• Failed project(s), business model, approach or strategy
• Consumers: use formal/informal information channels
• Family, friends, hobbies, travel, observation, the internet
• Existing product/service: survey & improve offering
• Distribution Channel: form new value-added alliance
• New laws, regulations, process or government policies
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25. Analysing an Opportunity
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26. Analysing an Opportunity CONT.
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27. Acting on the Opportunity
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28. RISK TAKING
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29. What is Risk?
A risk can be defined as an event or
circumstance that has a negative
effect on your business.

30. Risk Taking
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31. Risk Management
Risk Management is the art and science of thinking about what
could go wrong, and what should be done to mitigate those risks
in a cost-effective manner.
There are two dimensions of risk:
1. Likelihood of occurrence
2. Severity of the potential consequences

32. Typical Risk Management Framework

33. Risk Management Framework for Entrepreneurs

34. Risk Management Framework for Entrepreneurs

35. Killer: High Likelihood & Major Consequences
Company Killers:
• Market risks
• Competitive risks
• Technology risks
• Financial risks
• People risks
• Legal & regulatory risks
• Systems risks

36. The Risk Management Plan for Entrepreneurs
Key Factors to Consider
• Risk factor
• Type
• Likelihood
• Consequences
• Mitigation Tactics
• Mitigation Costs
• Status

37. Mitigation Tactics, Costs & Status
Tactics - List things that could be done to reduce the
likelihood of the risks as well as minimizing the
consequences if it happens.
Costs - Consider the implementation cost of each
mitigation tactic.
Status - Based on the above factors, you should make
an informed decision of what risks you would take
and what mitigation tactics you will implement.