1. Entrepreneurship and Effective Small Business Management 11/e by Scarborough and Cornwall
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2. Creativity and Innovation: Keys to Entrepreneurial Success
Chapter 3
Creativity and Innovation: Keys to Entrepreneurial Success
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3. Creativity, Innovation, and Entrepreneurship
Creativity: the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Thinking new things
Innovation: the ability to apply creative solutions to those problems and opportunities to enhance or to enrich people’s lives
Doing new things
Entrepreneurs succeed by thinking and doing new things or old things in new ways

4. Creativity, Innovation, and Entrepreneurship
Intuit identified six enablers of small business innovation:
Passion
Customer connection
Agility and adaptation
Experimentation and improvisation
Resource limitations
Information sharing and collaboration

5. Creativity, Innovation, and Entrepreneurship
Innovations can be:
Reactive in response to customer feedback or changing market conditions
Proactive in response to new opportunities on which to capitalize
Revolutionary creating market-changing, disruptive breakthroughs that are the result of generating something from nothing
Evolutionary, developing market-sustaining ideas that elaborate on existing products, processes, and services
Putting old things together in new ways or from taking something away to create something simpler or better

6. Creativity – Essential to Survival
Entrepreneurs must go beyond relying in what has worked in the past
Cast off limiting assumptions, beliefs, and behaviors
Develop new insights
Change perspectives
Look at the world in new and different ways

7. Creativity – Essential to Survival
How Creative Are You?

8. Creativity – Essential to Survival
Can Creativity be Taught?
Creativity is a skill
Anyone can learn to be creative and to get better at it
Need to understand creative thinking

9. Creative Thinking
Each hemisphere of the brain processes information differently
One side tends to be dominant
The left brain handles language, logic, and symbols
Thinking is narrowly focused and systematic
The right brain handles emotional, intuitive, and spatial functions
Thinking is unconventional, unsystematic, and unstructured

10. Creative Thinking
Right brain, lateral thinking is at the heart of the creative process
Individuals can learn to control which side of the brain is dominant in a given situation
Can learn to ‘turn down’ the dominant left side and ‘turn up’ the right side
Successful entrepreneurs need both left and ride side thinking
The right side generates innovative ideas
The left side judges market potential

11. Barriers to Creativity
Mental locks that can limit individual creativity:
Searching for the one “right” answer
Focusing on “being logical”
Blindly following the rules
Constantly being practical
Viewing laughter and play as frivolous
Becoming overly specialized
Avoiding ambiguity
Fearing looking foolish
Fearing mistakes and failure
Believing that “I’m not creative”

12. How to Enhance Creativity
Enhancing Organizational Creativity
Include creativity as a core company value and make it an integral part of the company’s culture
Hire for creativity 
Embrace diversity 
Establish an organizational structure that nourishes creativity 
Expect creativity 
Expect failure and learn from it 
Incorporate fun into the work environment 
Encourage curiosity 
Design a workspace that encourages creativity

13. How to Enhance Creativity
View problems as opportunities
Provide creativity training
Provide support
Develop a procedure for capturing ideas
Talk with customers – or better yet, interact with them
Monitor emerging trends and identify ways your company can capitalize on them
Look for uses for your company’s products or services in other markets
Reward creativity
Model creativity  

14. How to Enhance Creativity
Enhancing Individual Creativity
Allow yourself to be creative
Forget the “rules”
Give your mind fresh input everyday
Travel – and observe
Collaborate with other people
Observe the products and services of other companies, especially those in different markets
Recognize the creative power of mistakes and accidents  

15. How to Enhance Creativity
Be positive
Notice what is missing
Periodically ask yourself, “Am I asking the right question?”
Keep a journal handy to record your thoughts and ideas
Listen to other people
Get adequate sleep
Watch a movie
Talk to a child  

16. How to Enhance Creativity
Do something ordinary in an unusual way
Keep a toy box in your office
Take note of your ‘pain points’: do other people experience them as well?
Do not throw away seemingly ‘bad’ ideas
Read books on stimulating creativity or take a class on creativity
Take some time off
Be persistent  

17. The Creative Process
Creative ideas are the result of seven step process:
Preparation
Investigation
Transformation
Incubation
Illumination
Verification
Implementation  

18. The Creative Process Step 1: Preparation
Adopt the attitude of a lifelong student
Read—a lot—and not just in your field of expertise
Clip articles of interest to you and create a file for them
Take time to discuss your ideas with other people, including those who know little about it as well as experts in the field
Join professional or trade associations and attend their meetings
Develop listening skills.
Eliminate creative distractions  

19. The Creative Process
Creative ideas are the result of seven step process:
Preparation
Investigation  

20. The Creative Process Step 2: Investigation
Develop a solid understanding of the problem, situation, or decision at hand  

21. The Creative Process
Creative ideas are the result of seven step process:
Preparation
Investigation
Transformation  

22. The Creative Process Step 3: Transformation Two types of thinking:
Convergent thinking: the ability to see the similarities and the connections among various and often diverse data and events
Divergent thinking: the ability to see the differences among various data and events  

23. The Creative Process Transforming information into a purposeful idea:
Evaluate the parts of the situation several times, trying to grasp the big picture
Rearrange the elements of the situation
Try using synectics (a term derived from the Greek words for “to bring together” and “diversity”),taking two seemingly nonsensical ideas and combining them
Before locking into one particular approach to a situation, remember that several approaches might be successful  

24. The Creative Process
Creative ideas are the result of seven step process:
Preparation
Investigation
Transformation
Incubation  

25. The Creative Process Step 4: Incubation
Ideas may require a gestation period
Walk away from the situation
Take the time to daydream
Relax – and play - regularly
Dream about the problem or opportunity
Work on the problem or opportunity in a different environment  

26. The Creative Process
Creative ideas are the result of seven step process:
Preparation
Investigation
Transformation
Incubation
Illumination  

27. The Creative Process Step 5: Illumination The light bulb goes on
Eureka factor  

28. The Creative Process
Creative ideas are the result of seven step process:
Preparation
Investigation
Transformation
Incubation
Illumination
Verification  

29. The Creative Process Step 6: Verification
Is it really a better solution to a particular problem or opportunity?
Will it work?
Is there a need for it?
If so, what is the best application of this idea in the marketplace?  

30. The Creative Process
Does this product or service idea fit into our core competencies?
How much will it cost to produce or to provide?
Can we sell it at a reasonable price that will produce adequate sales, profit, and return on investment for our business?  

31. The Creative Process
Creative ideas are the result of seven step process:
Preparation
Investigation
Transformation
Incubation
Illumination
Verification
Implementation  

32. Implementation Step 7: Transformation Transform the idea into reality
Ready, aim, fire