1. 1 Chapter 11: Invention and Innovation Entrepreneurial Opportunities Choosing a Venture If you have the skills and characteristics to be an entrepreneur, ask yourself these questions: What kind of venture will you start? How will you do it? Entrepreneurs can look for opportunities to develop new ventures in two ways—as idea-driven or as market-driven opportunities. Idea-driven Enterprises An ideas-driven enterprise for a business usually starts as an invention or innovation. Market-driven Enterprises A market-driven enterprise for a business usually develops as a result of a need and want that consumers indicate or desire.

2. 2 Chapter 11: Invention and Innovation Entrepreneurial Opportunities Bringing Ideas and Marketing Skills Together Successful ventures combine the idea-driven aspect with the market-driven one. Entrepreneurs can learn marketing skills, technical skills, or form a partnership with someone who has complementary attributes. A feasible venture is one that has the potential to be successful. The entrepreneur plans reasonable goals for the venture, and thinks about an idea and a market to ensure the business’ success.

3. 3 Chapter 11: Invention and Innovation Entrepreneurial Opportunities Finding Entrepreneurial Opportunities New venture categories include manufacturing retail sales importing or wholesaling service A new venture must solve a problem or satisfy a need or a want. To find out about the market for a new business, an entrepreneur needs to segment the current market and create a product or service map.

4. 4 Chapter 11: Invention and Innovation Entrepreneurial Opportunities Segmenting Before a new venture is launched, entrepreneurs must analyze the segment of the market by looking for the common characteristics in which the business fits. Product or Service Mapping Product mapping allows an entrepreneur to visualize all the products or services that are available in a segment and to group them by specific features. Setting Your Venture Apart The goal of a new venture is to ensure that it is different than those already operating. Manufacturers, importers, or wholesalers need to offer different products than those that already exist. Retailers and service providers also must think of ways to set themselves apart from others.

5. 5 Chapter 11: Invention and Innovation Some Canadian Inventions What Is an Invention? An invention is a product or process that does something that has never been done before. When the invented product or service fills a need, it can potentially be sold to consumers. Canadian Inventors and Inventions Some well know inventions and inventors are included in the chart below. (For more, see chart on p. 345 of text.) YearInventionCanadian Inventor 1921InsulinDrs. Banting and Best 1960Goalie maskJacques Plante 1994Java computer languageJames Gosling

6. 6 Chapter 11: Invention and Innovation Taking the Next Step Entrepreneurship starts when a new invention or innovation becomes the inspiration for a venture. Patents and Copyrights Entrepreneurs need to patent or copyright their inventions. A patent is the registration of an inventors legal right of ownership for their invention. It prevents others from using the invention without permission. A copyright is the exclusive right to publish, produce, sell, or distribute an original work of literature, art, music, software, design, and so on.

7. 7 Chapter 11: Invention and Innovation Entrepreneurial Opportunities Licensing Agreements Licensing an invention or innovation allows another business to use it for a fee or a royalty. Franchising Agreements Similar to a licensing agreement, a franchise agreement is an arrangement for one business to license the rights to its name and procedures to another business or person. Producing the Invention The manufacturing of a new invention often requires a large amount of capital and expertise. This process can be very risky. Selling the Rights Entrepreneurs can sell outright their patents or copyrights.

8. 8 Chapter 11: Invention and Innovation The Impact of Innovation What Is an Innovation? An innovation requires using new technology, materials, or processes to improve existing products or to create new production and distribution processes. Innovators as Entrepreneurs Innovators build on what other businesses, such as manufacturers, distributors, and marketers, have already developed. They look to the competition for ways to gain an advantage for their new products or services. Entrepreneurs use innovation to change how a product is used, packaged, marketed, distributed, designed, or manufactured.

9. 9 Chapter 11: Invention and Innovation The Impact of Innovation Changing How a Product Is Used When entrepreneurs discover innovative ways to use a familiar product, they can develop a whole new market for that product. Changing the Package Changing the way a product is packaged can create a whole new industry. Changing the Marketing Strategy Changing the way a product or service is promoted or advertised can target a new market and, potentially, improve sales.

10. 10 Chapter 11: Invention and Innovation Entrepreneurial Opportunities Changing the Distribution Process Changing or improving the way a product is distributed can potentially result in more and new customers. Changing the Design A design change to a product can improve how it functions or who it appeals to in a new market segment. Changing the Manufacturing Process As new technologies and materials are developed, manufacturers must review their production processes to create better and less expensive products.