2. TOPICS COVERED
Entrepreneur
Theories of Entrepreneurship
Characteristics of Entrepreneur
Myths of Entrepreneurship
Steps to Generate Creative Ideas
Techniques of Developing
Creativity
Types of Innovation
3. CHARACTERISTICS OF ENTREPRENEUR
❖ Curiosity: Entrepreneurs are curious and always look for new opportunities. They
don’t settle for what they know, but ask questions and explore different paths.
❖ Willingness to Experiment: Entrepreneurs understand how to test their ideas and see
if they are worth pursuing. They do market research and run experiments to validate
their assumptions and measure their potential.
❖ Adaptability: Entrepreneurs are flexible and can adapt to changing situations. They
don’t let challenges stop them, but find ways to keep their business moving forward.
❖ Decisiveness: Entrepreneurs make tough decisions and stick to them. They lead their
business in every aspect and have the confidence to follow through. If they make a
mistake, they take action to correct it.
❖ Self-Awareness: Entrepreneurs know their strengths and weaknesses. They build
teams that complement their skills and work toward a common goal.
4. CHARACTERISTICS OF ENTREPRENEUR
❖ Risk Tolerance: Entrepreneurs take calculated risks, but also try to minimize them. They balance
risk and reward and position their companies to benefit from the upside. They are comfortable
with some uncertainty and are willing to take chances.
❖ Comfort with Failure: Entrepreneurs accept failure as part of the process. They learn from their
mistakes and don’t let fear hold them back. They have a positive attitude and keep trying until
they succeed.
❖ Persistence: Entrepreneurs don’t give up easily. They are determined and resilient. They
overcome obstacles and pursue their vision.
❖ Innovative Thinking: Entrepreneurs are innovative and improve existing products or services to
meet market needs. They can develop a strategic mindset and problem-solving skills to find and
seize opportunities.
❖ Long-Term Focus: Entrepreneurs don’t just start a business, but grow it over time. They must
pay attention to every stage of the venture, from funding to scaling. Entrepreneurship is a
long-term journey, and entrepreneurs must stay focused on their vision and goals.
5. THEORIES OF ENTREPRENEURSHIP
◼ Innovation Entrepreneurship theory: Entrepreneurs are different from normal businessmen because they find
innovative solutions and have foresight. Schumpeter’s theory says that entrepreneurs take the economy to a new level
by adding their own innovation and creativity. They can innovate by reducing costs or increasing demand.
◼ Economic Entrepreneurship theory: Cantillon’s theory says that entrepreneurship affects the economy.
Entrepreneurs are both producers and exchangers. They affect the supply chain of raw products to end products.
Cantillon considers everyone as an entrepreneur, from beggars to restaurant owners, as they have unfixed income.
◼ Sociological Entrepreneurship theory: Weber’s theory says that entrepreneurship involves social aspects.
Entrepreneurs should consider social taboos, customs, culture, and religious beliefs to have a successful business that
meets consumer expectations. They should accept the system of society for their own and their startup’s development.
◼ Psychological Entrepreneurship theory: This theory is based on the personal characteristics of entrepreneurs.
There are three sections: locus of control, personality traits, and need for achievement. These characteristics
determine the types of entrepreneurs based on psychological theories.
◼ Opportunity based Entrepreneurship theory: Drucker’s theory says that entrepreneurs search for change, respond
to it, and exploit it as an opportunity. Drucker and Stevenson focused on a broad framework of entrepreneurship and
contradicted Schumpeter’s theory that entrepreneurship is change.
6. THEORIES OF ENTREPRENEURSHIP
◼ Resource-based Entrepreneurship theory: This theory says that entrepreneurs need resources to start and
run their businesses. Money and time are not enough for a successful startup. Entrepreneurs need financial,
social, and human resources to make their efforts productive. The theory shows the importance of resources for
enhancing individual abilities.
◼ Anthropological Entrepreneurship theory: This theory relates to the cultural model of entrepreneurs.
Anthropologists study the human aspects in the past and present. They observe society and say that
entrepreneurs should consider the social and cultural contexts. Entrepreneurs can find opportunities in difficulties
caused by social or environmental factors. They can come up with new ways to solve or contribute to solutions.
◼ Process of stage Entrepreneurship theory: This theory describes the stages of entrepreneurship from idea
generation to growth and exit. The stages are: opportunity recognition, feasibility analysis, business plan,
resource acquisition, venture launch, venture growth, and venture exit. The theory helps entrepreneurs
understand the process and challenges of entrepreneurship.
7. TYPES OF ENTREPRENEUR
By Clearance Danhof
Innovative
Imitative or Adoptive
Fabian
Drone
By Arthur H Cole
Empirical
Rational
Cognitive
Scale
Small Scale
Medium Scale
Large Scale
Others
Solo Operators
Active Partners
Inventors
Challengers
Buyers
Researchers
Life-Timers
Women Entrepreneur
Rural Entrepreneur
8. CLASSIFICATION BY CLEARANCE DANHOF
◼ Innovative entrepreneurs are the ones who introduce new ideas, products, or methods of
production. For example, Steve Jobs was an innovative entrepreneur who revolutionized the
personal computer, music, and smartphone industries with his inventions. He created Apple, iPod,
iPhone, and iPad, among other products.
◼ Imitative entrepreneurs are the ones who copy or adopt the innovations made by others. For
example, Samsung is an imitative entrepreneur that followed Apple’s lead and produced similar
products like smartphones, tablets, and smartwatches.
◼ Fabian entrepreneurs are the ones who are cautious, conservative, and resistant to change.
They only adopt new ideas or methods when they are forced by competition or social pressure.
For example, Kodak was a Fabian entrepreneur that failed to adapt to the digital photography
revolution and lost its market share to more innovative competitors.
◼ Drone entrepreneurs are the ones who refuse to adopt any change or innovation, even if it is
beneficial or necessary. They are backward, traditional, and rigid. They stick to their old ways of
doing things and ignore market opportunities or threats. For example, Blockbuster was a drone
entrepreneur that stuck to its brick-and-mortar video rental business and ignored the emergence
of online streaming services like Netflix
9. CLASSIFICATION BY A.H.COLE
◼ Empirical entrepreneurs are the ones who hardly introduce anything revolutionary and follow the principle of
rule of thumb. They are not very creative, but they are practical and experienced. They rely on their own
observation and trial and error methods to run their businesses. They do not use much scientific or technical
knowledge. For example, a farmer who uses traditional methods of cultivation and does not adopt new
technologies or practices is an empirical entrepreneur.
◼ Rational entrepreneurs are the ones who are well informed about the general economic conditions and
introduce changes that look more revolutionary. They are more creative, visionary, and risk-taking. They use
scientific and technical knowledge to improve their products or processes. They can transform the economy
by creating new markets or industries. For example, a manufacturer who uses new machinery or techniques
to produce better quality or cheaper goods is a rational entrepreneur.
◼ Cognitive entrepreneurs are the ones who are well informed, draw upon the advice and services of experts,
and introduce changes that reflect a complete break from the existing scheme of enterprise. They are the
most creative, innovative, and dynamic. They use advanced scientific and technical knowledge to create new
products or processes that are radically different from the existing ones. They can create disruptive
innovations that change the whole industry or society. For example, a biotechnology firm that develops a new
drug or vaccine that cures a disease or prevents an epidemic is a cognitive entrepreneur.
10. CLASSIFICATION ON THE BASIS OF SCALE
◼ Micro-entrepreneurs: Micro-entrepreneurs operate very small-scale businesses, often with limited resources
and a low number of employees. These businesses typically serve local markets and may include activities
like street vending, home-based businesses, or small online shops.
◼ Small Business Entrepreneurs: Small business entrepreneurs run enterprises that are larger than
micro-businesses but still relatively small in scale. These businesses often have a moderate number of
employees and serve regional or niche markets. Examples include local restaurants, boutique shops, and
small manufacturing units.
◼ Medium-Sized Business Entrepreneurs: Medium-sized business entrepreneurs manage enterprises that
have grown beyond the small business stage. They employ a larger workforce and often operate in a broader
geographical region or industry. These businesses have more resources and may be involved in
manufacturing, services, or retail on a regional or national level.
◼ Large Business Entrepreneurs: Large business entrepreneurs are responsible for corporations with
substantial operations, numerous employees, and a national or global presence. These entrepreneurs often
lead major companies involved in various industries, from technology and finance to manufacturing and retail.
11. OTHERS
◼ Solo Operators: These entrepreneurs typically start and often run their businesses by themselves,
occasionally hiring a few employees when needed. This is a common approach for many new entrepreneurs.
◼ Active Partners: Active partners are individuals who initiate a business together, with each member actively
involved in its operations. When individuals contribute financially but are not directly involved, they are known
simply as "partners."
◼ Inventors: These entrepreneurs excel in inventing and innovating, focusing on creating new products or
solutions with their unique abilities.
◼ Challengers: Challengers are entrepreneurs who actively seek new challenges within different aspects of
business, from manufacturing to marketing, and continuously set and conquer new goals.
◼ Buyers: Entrepreneurs in this category prefer lower-risk ventures by purchasing existing businesses. They
acquire ongoing enterprises, benefiting from established business value and customer bases.
12. OTHERS
◼ Women Entrepreneur: A woman entrepreneur is a woman who starts and runs her own business. Examples
include women who establish tech startups, run healthcare clinics, or operate small businesses in various
fields, overcoming gender-related challenges to contribute to economic growth and gender equality.
◼ Rural Entrepreneur: A rural entrepreneur is someone who starts and manages a business in non-urban
areas. They often focus on agriculture, rural tourism, or local services. For instance, a rural entrepreneur
might run a farm, start a bed and breakfast in a rural area, or offer local services like woodworking in a small
village. Their ventures support rural economies and communities.
◼ Researchers: Researchers base their business decisions on rigorous analysis, thoroughly investigating all
aspects before launching products. Their meticulous approach minimizes the likelihood of failure.
◼ Life-Timers: Life-timers view entrepreneurship as a lifelong commitment, often inheriting family businesses
and carrying on traditions passed down through generation
13. MYTHS OF ENTREPRENEURSHIP
❖ You Need a Unique Idea to Succeed: One prevalent myth is that you must have a groundbreaking,
completely unique idea to succeed as an entrepreneur. In reality, many successful businesses thrive by
improving existing ideas or addressing common problems more effectively.
❖ Entrepreneurs Are Born, Not Made: This myth suggests that entrepreneurship is an innate trait, and if
you're not born with it, you can't become an entrepreneur. In truth, entrepreneurship can be learned and
developed through education, experience, and persistence.
❖ Entrepreneurs Only Work for Themselves: While many entrepreneurs start businesses to be their own
boss, they often find themselves working harder and longer hours than when they were employed by
others. Entrepreneurship requires dedication and effort, sometimes more than a traditional job.
❖ Entrepreneurship Guarantees Wealth and Success: Not all entrepreneurial ventures lead to wealth
and success. The reality is that many startups fail, and entrepreneurship carries significant financial risks.
Success often comes after years of hard work and perseverance.
❖ Entrepreneurship Is for the Young: Another misconception is that entrepreneurship is primarily for
young individuals. In truth, many successful entrepreneurs launch businesses later in life, drawing from
their experience and industry knowledge.
14. MYTHS OF ENTREPRENEURSHIP
◼ You Need a Lot of Money to Start: Many believe that substantial capital is required to start a business. While some
ventures demand significant investment, many businesses can begin with minimal funds, thanks to technology and creative
financing options.
◼ Failure Is the End of the Road: Failure is often seen as a permanent setback in entrepreneurship, but it's actually a
common part of the journey. Many successful entrepreneurs experienced failures before achieving success, using their
setbacks as valuable learning experiences.
◼ Entrepreneurs Have a Perfect Work-Life Balance: Some think that entrepreneurs have complete control over their
work-life balance. In reality, many entrepreneurs initially work long hours and face high levels of stress. Achieving a balance
often takes time and effort.
◼ Success Happens Quickly: Many believe that entrepreneurial success happens overnight. In reality, building a successful
business typically requires years of hard work, patience, and continuous adaptation to changing circumstances.
◼ Entrepreneurs Don't Need Education: While some successful entrepreneurs lack formal education, many benefit from it.
Education can provide valuable skills, knowledge, and networking opportunities that enhance an entrepreneur's chances of
success.
Recognizing and debunking these myths is important for aspiring entrepreneurs to make informed decisions and navigate the
challenges of entrepreneurship more effectively.
15. CREATIVITY & INNOVATION- INTRODUCTION
◼ Entrepreneurship= Creativity + Innovation
◼ The ability to think, create, and implement creative solutions takes practice via ideation, empathizing,
prototyping and seeking inspiration.
◼ Sharpening the creative potential within organizational innovation development can be led through
implementation processes. Creativity can indeed spark innovation, and innovation can, in turn, motivate
entrepreneurship.
16. CREATIVITY & INNOVATION- DIFFERENCE
Creativity Innovation
Inspiration Execution
Cognitive Tangible
Potential Practical
Unique and individual Repeatable and scalable
17. CREATIVITY DEFINITION
◼ Creativity is an ability person has to become as unique, seeing something from a different angle and
making novel output.
◼ Creativity in entrepreneurship is the capacity to envision and generate novel, innovative ideas, solutions,
and opportunities within the business realm.
◼ It encompasses the ability to think beyond conventional boundaries, break through limitations, and come
up with fresh, ingenious concepts that can lead to the development of unique products, services, and
business strategies.
◼ Creative entrepreneurs are those who actively seek and leverage creative thinking to solve problems,
identify gaps in the market, and propel their ventures to success.
◼ Creativity is a vital skill for entrepreneurs. It helps them come up with new ideas and solutions that can
make their businesses successful. Creativity also allows entrepreneurs to see the future and anticipate
the needs and problems of their customers or clients. Creativity is not just about making art, it is also
about finding new ways of doing things and thinking outside the box.
18. CREATIVITY- CHARACTERISTICS
1. Originality: Creative entrepreneurs excel in producing ideas that are not merely reiterations of existing
concepts but rather pioneering, novel solutions or approaches.
2. Problem-Solving: They harness their creative prowess to tackle complex business challenges by
developing innovative and effective solutions.
3. Risk-Taking: Creativity often involves taking calculated risks, as entrepreneurs explore uncharted
territory, experiment with new ideas, and embrace uncertainty in pursuit of innovative ventures.
4. Flexibility: Creative entrepreneurs are adaptable and open to change, recognizing the need to pivot or
adjust their strategies in response to evolving market conditions.
5. Passion: Creative entrepreneurs are typically driven by a deep passion for their ideas and visions,
which fuels their dedication to bring them to fruition.
19. CREATIVITY- TYPES
◼ Dietrich developed what he called the Knowledge Domain,
which consists of a quadrant of creative kinds with a variety of
traits, and which has four separate processing modes
(emotional, cognitive, purposeful, and spontaneous). Dietrich
and other researchers on the subject produced the following
image to illustrate the four areas:
◼ Deliberate and Cognitive creativity – Thomas Edison
consistently try to develop innovations like the light bulb.
◼ Deliberate and Emotional Creativity – The term “aha!” or
“eureka” moment refers to the typical human experience of
instantly grasping a challenging situation or idea.An example of
this is the ancient Greek polymath Archimedes finds the principle
of buoyancy.
◼ Spontaneous and Cognitive Creativity – Sir Isaac Newton
was unwinding under a tree and formed the concept of the law of
gravity is an example of spontaneous and cognitive creativity.
◼ Spontaneous and Emotional Creativity – This type of
creativity must be needed for artists such as scriptwriters, lyrics
writers, or musicians.
20. CREATIVITY- PROCESS
◼ Creativity is not a haphazard occurrence; instead, it
adheres to a structured process consisting of distinct
stages.The renowned psychologist and creative expert,
James WebbYoung, laid out this process in his book, 'A
Technique for Producing Ideas,' a model now widely
recognized and practiced in various fields, particularly in
creative marketing and design.
1. Preparation: Gather information and understand the
subject thoroughly.
2. Incubation: Give your mind space to process information,
make connections, and generate ideas.
3. Illumination: Experience the 'aha moment' when a clear
idea or solution emerges.
4. Evaluation: Assess the practicality and relevance of your
ideas.
5. Verification: Validate and refine ideas through feedback
and testing.
Preparation Incubation
Illuminations
Evaluation
Verification
21. CREATIVITY- TECHNIQUES
❖ Reverse Thinking: This technique challenges
conventional thinking by considering the opposite of
what's expected. By reversing assumptions, it can lead to
novel solutions and different perspectives on a problem.
❖ Six Thinking Hats: Developed by Edward de Bono, this
method involves thinking from six different perspectives,
each represented by a colored "hat." It encourages
structured thinking, including critical, creative, and
practical viewpoints, to explore ideas thoroughly.
❖ Role Playing: In role playing, individuals assume
different roles or perspectives relevant to the problem or
scenario. This technique fosters empathy and helps
generate ideas from multiple angles, often leading to
innovative solutions.
❖ 5W+H: This technique involves asking Who, What,
Where, When, Why, and How questions to thoroughly
analyze a problem or idea. It helps to gain a
comprehensive understanding and identify potential
solutions.
❖ Brainstorming: Brainstorming is a group or individual
activity where participants generate a multitude of ideas
without judgment. It encourages free thinking, idea
sharing, and the exploration of unconventional solutions.
❖ Mind Mapping: Mind mapping is a visual tool that helps
to organize and connect ideas. It typically starts with a
central concept and branches out with related thoughts,
making it easier to see relationships and generate new
insights.
❖ Concept Map: Similar to mind mapping, concept
mapping visually represents the relationships between
concepts. It helps to clarify complex ideas and identify
connections between various elements.
22. INNOVATION- DEFINITION
◼ Innovation in entrepreneurship is the practice of doing new things or doing existing things in a new way
to generate profit, assist the community, and accomplish goals. It is the tool of entrepreneurs to exploit
changes as a chance for a different or improved business.
◼ Entrepreneurial innovation is the process of developing and putting into practice new concepts, ideas,
goods, services, procedures, or business models that significantly improve and add value to an
entrepreneurial endeavor.
◼ It entails using fresh perspectives, questioning the existing quo, and proposing cutting-edge solutions to
fill market gaps or cater to client wants. Innovation is not simply about novel technologies. It may also
spread to a variety of business processes including business strategy, marketing, operations, and
organizational culture.
24. INNOVATION- TYPES
◼ Architectural Innovation: Architectural Innovation includes taking an
approach, methodology or technology from one domain to another. It is also
known as Re-combinative Innovation. This kind of innovation in
entrepreneurship is pretty well-known. According to research, approximately
40% of the patents listed over the preceding 150 years fall into this
category, with the proportion increasing each year
◼ Radical Innovation: Radical Innovation is what most crosses the mind of
people when speaking of the types of innovation available in
entrepreneurship. This innovation includes the commencement of
brand-new businesses and the employment of revolutionary technologies.
Also, it is a comparatively rare kind of innovation attributed with enabling
society to take valuable leaps ahead.
◼ Incremental Innovation: The overriding majority of this type of innovation
in entrepreneurship are incremental. Incremental Innovation occurs when a
group of scanty and seemingly trivial improvements completes the
large-scale organizational transformation. Incremental Innovation is
arguably the most convenient kind of innovation, as companies can execute
this type of innovation without ample resources, a comprehensive team, or
a reorientation of the company's strategy.
◼ Disruptive Innovation: Generalized by the late Clayton Christensen,
disruptive innovation in entrepreneurship happens when an innovation
builds a radically new value interface. Businesses can accomplish this by
creating an innovative market or entering an existing business; and
transforming how customers communicate with their company. This type of
innovation is also about getting the most suitable cost-efficient solution
rather than creating multiple resources.
