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

2. 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”

3. 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)

4. 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

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

6. 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.

7. 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?

8. 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.

9. 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.

10. 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

11. 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.

12. 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.

13. 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.

14. 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

15. 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)

16. 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.

17. 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

18. 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

19. 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?

20. 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

21. 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

22. 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

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

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

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

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

27. 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