IMPORTANCE OF CREATIVITY IN ENTREPRENEURSHIP Ines Milohnić University of Rijeka, Faculty of Tourism and Hospitality Management Opatija Danijela Madžar University of Mostar, Faculty of Science and Education ines.milohnic@fthm.hr danijelamadzar@gmail.com

MAIN POINTS OF THE PRESENTATION Theoretical background Creativity Enterpreneurship Research methodology Existing theories Existing models Findings Results Conclusion

PURPOSE OF THE STUDY (1) to highlight the importance and role of encouraging the development of organizational creativity in the modern enterprise. (2) to answer the question of how encouraging creativity within organizations can help and contribute to better business and achieving competitive advantage.

CREATIVITY ENTERPRENEURSHIP Creation of a valuable, useful new product, service, idea, procedure, or process by individuals working together in a complex social system (Woodman, 2014.). ENTERPRENEURSHIP Creative activity focused on optimum communication of production factors by which, through an appropriate investment and motivated behaviour and with reasonable risk-taking, certain goals and economic effects shall be reached (Kuvačić, 2005.).

Without creativity - there is no entrepreneurship. CREATIVITY IN ENTERPRENEURSHIP Without creativity - there is no entrepreneurship. Entrepreneurs are expected to offer a creative initiative and use the existing resources in a new manner in order to adjust to various business requirements. Encouragement of creativity in entrepreneurship by applying various methodologies and creative techniques is certainly an empowering manner which contributes to the development of new products and services, which results in the achievement of a competitive advantage.

METHODOLOGY The existing theories and models: Bear and Kaufman, (2006.) - Approach to Organisational Creativity Theory Burkus, Oster, (2012.) - Creativity Developement Theory Cook, (2002.) – Creative Organization Theory Conaldi et al., (2012.) and Tonellato (2014.) – Individual Creativity Theory Isaksen, et al., (2000.) - Model of a Creative Approach to Problem Solving Timmons, Spinelli, (2006.) - Timmons Model of the Entrepreneurial Process Van Oech, (2012.) - Creative Process Model

Creative Process Phases METHODOLOGY Creative Process Phases problem definition, gathering of information and searching for a solution PREPARATORY PHASE giving up applying non-creative solutions FRUSTRATION PHASE misconduct in solving problems INCUBATION PHASE creation of a core response to an identified problem ILLUMINATION PHASE adaptation, testing, audit for a better elaboration to the management ELABORATION PHASE Source: Van Oech, 2012.

RESULTS OF THE RESEARCH Entrepreneurial Creativity Elements Entrepreneurship Organisation supporting creativity Strategy Openness Free communication Recognition of opportunities Creativity Individual Team Organisational Source: Author’s research

Competitive advantage RESULTS OF THE RESEARCH Entrepreneurial Creativity Elements Activities Motivation (internal and external) Development of creative skills Creative technique implementation Resource exploitation Development of new ideas, knowledge and technologies Competitive advantage New products/services Availing itself of the opportunities Market positioning Source: Author’s research

CONCLUSION Must have a pragmatic dimension All areas of business activities may be creatively promoted Important in the problem-solving process Atmosphere for creativity and an equal approach to the creative potential. Must have a pragmatic dimension Observation of any opportunity and resources

Thank you for your attention! Ines Milohnić, Ph.D., Assocate Professor University of Rijeka, Faculty of Tourism and Hospitality Management Opatija E-mail: ines.milohnic@fthm.hr Danijela Madžar, Ph.D.,Student University of Mostar, Faculty of Science and Education E-mail: danijelamadzar@gmail.com