William Wresch, Ph.D. wresch@unizwa.edu.om Extension 982 Entrepreneurship William Wresch, Ph.D. wresch@unizwa.edu.om Extension 982

Innovation Innovation can be driven by Places – Silicon Valley People – Stephen Jobs Company policy – 3M The times We will start by looking at “the times”

A Time for Innovation Some times foster more innovation than others. The key is change. Change produces needs and opportunities. Changes can be good, or they can be bad, but both produce needs and opportunities. (But good changes are better)

Examining change So many things are changing so constantly, that it is easy to ignore important changes that might provide an opportunity for your business. To help leaders review change carefully, they use a heuristic called “PESTLE”. “Hueristic” – Greek – to discover

PESTLE PESTLE is an acronym (series of initial letters) for important areas of change: Political Economic Social Technological Legal Environmental

Political Change Political factors include: tax policy labor laws environmental laws trade restrictions Also, governments are consumers. They buy goods and services – sometimes more, sometimes less. They also create the infrastructure of a country – roads, ports, schools – sometimes more, sometimes less.

Political Change Oman example: Airport expansion. A larger airport and more flights to Muscat mean travel costs may be cheaper and more people may come to Oman. What businesses will benefit from this?

Economic Change Economies change all the time – economic growth interest rates exchange rates the inflation rate Oddly, while most opportunities are found during times of economic growth, many new companies are started during slow downs.

Economic Change Oman example – Economic growth – drop in oil price may mean less money is available. This may be a bad time to start a new business. Or, it might be a good time if you have a business that is low cost. If your store sells food at lower prices, people with less money might want to try your store.

Social Change Changes may be local, or they may be global. They may impact a small group, or nearly everyone. Look for changes in Culture Diets Population growth (or decline) Age distribution Career attitudes

Social Change Oman example: Age distribution – there seem to be many children in Oman. So, it might be a good time to start a business selling children’s clothing or toys.

Technological change We tend to think only of computers. But these changes can include: New energy sources New drugs Communications improvements New ways of farming New ways of solving problems (robots, AI, big data) McDonalds was helped by an important technological change – the common ownership of cars.

Technological change Oman Example: Communications improvements- common ownership of smart phones and low cost of telecommunications means you can reach many customers on-line. This might be a good time to create a social media business.

Business Ideas Name at least three businesses you might create in Oman based on changes you see in one of these areas: Political changes Economic changes Social changes Technological changes

Legal Change Laws that might impact your business include: discrimination law consumer law antitrust law employment law health and safety laws (speed limits or food changes)

Legal Change Oman Example Safety laws: Trucks in Oman are limited in size. A change in that law might mean that new trucking businesses could be created. It might also mean some trucking businesses would be unable to compete.

Environmental Change Weather Climate climate change The environment can have huge impacts on all areas of business. But here we combine the actual changes with reactions to the changes in: Weather Climate climate change

Environmental Change Oman example: climate change - If the region becomes drier– less rain – it might be a good time to start a business selling water. It might also be a good time to find crops that use less water. If the climate continues to become more hot and more dry, name three business ideas that might involve: Clothing Entertainment Food

How an Entrepreneur looks at change What problems are emerging that people might want me to solve? What opportunities are now available that weren’t before? How important are those problems and opportunities ( do they really matter to people?) Can I meet the problem or opportunity at a cost the consumer will pay?

How an Entrepreneur looks at change Approach to business ideas PESTLE Area Potential Business Importance to Customers Social change – more children Day care center high Child clothing store moderate New play area

How an Entrepreneur looks at change Approach to business ideas PESTLE Area Potential Business Importance to Customers Political change – increased national investment in roads Fewer off-road trucks, more luxury cars low More gas stations high New areas open to tourists – new businesses for them moderate

How an Entrepreneur looks at change Approach to business ideas PESTLE Area Potential Business Importance to Customers Technological change – more smart phones Social media site – movie recommendations Social media site – music recommendations Restaurant site – ordering food on-line

How an Entrepreneur looks at change Approach to business ideas PESTLE Area Potential Business Importance to Customers Environmental change – hotter temperatures

How an Entrepreneur looks at change Approach to business ideas PESTLE Area Potential Business Importance to Customers Environmental change – less rain

How an Entrepreneur looks at change Approach to business ideas PESTLE Area Potential Business Importance to Customers Technological change – solar panels drop in cost

How an Entrepreneur looks at change Approach to business ideas PESTLE Area Potential Business Importance to Customers Economic change – less income from oil sales

How an Entrepreneur looks at change Approach to business ideas PESTLE Area Potential Business Importance to Customers Social change – more people moving to large cities