1. 2-1 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.eduENTREPRENEURSHIP University of Management and Technology 1901 N. Fort Myer Drive Arlington, VA 22209 USA Phone: (703) 516-0035 Fax: (703) 516-0985 Website: www.umtweb.edu

2. 2-2 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu CHAPTER 2: Inside the Entrepreneurial Mind: From Ideas to Reality Zimmerer, T. W and Scarborough, N. M. Essentials of Entrepreneurship and Small Business Management (3rd ed.) Prentice Hall © 2002.

3. 2-3 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Creativity and Innovation Creativity – the ability to develop new ideas and to discover new ways of looking at problems and opportunities. Innovation – the ability to apply creative solutions to problems or opportunities to enhance or to enrich people’s lives.

4. 2-4 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.eduEntrepreneurship Entrepreneurship – the result of a disciplined, systematic process of applying creativity and innovation to the needs and opportunities in the marketplace. Entrepreneurs connect their creative ideas with the purposeful action and structure of a business.

5. 2-5 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Failure: Just Part of the Creative Process! For every 3,000 new product ideas: Four make it to the development stage. Two are actually launched. One becomes a success in the market. On average, new products account for 40% of companies’ sales!!

6. 2-6 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Can We Learn to Be Creative? Yes!! By overcoming paradigms and by suspending conventional thinking long enough to consider new and different alternatives!

7. 2-7 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Right-Brained, Creative Thinkers Always ask, “Is there a better way?” Challenge custom, routine, and tradition. Are reflective. Play mental games.

8. 2-8 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Right-Brained, Creative Thinkers Realize that there may be more than one “right” answer. See mistakes as pit stops on the way to success. Relate seemingly unrelated ideas to a problem. Have “helicopter skills.”

9. 2-9 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Left-Brained or Right-Brained? Entrepreneurship requires both left-and right-brained thinking. Right-brained thinking draws on divergent reasoning, the ability to create a multitude of original, diverse ideas. Left-brained thinking counts on convergent reasoning, the ability to evaluate multiple ideas and to choose the the best solution to a problem.

10. 2-10 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Barriers to Creativity Searching for the one “right” answer Focusing on “being logical” Blindly following the rules Constantly being practical Viewing play as frivolous

11. 2-11 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Barriers to Creativity Becoming overly specialized Avoiding ambiguity Fearing looking foolish Fearing mistakes and failure Believing that “I’m not creative”

12. 2-12 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Tips for Enhancing Organizational Creativity Expecting creativity Expecting and tolerating failure Encouraging creativity Viewing problems as challenges Providing creativity training Providing support Rewarding creativity Modeling creative behavior

13. 2-13 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Tips for Enhancing Individual Creativity Allow yourself to be creative Give your mind fresh input every day Keep a journal handy to record your thoughts and ideas Read books on stimulating creativity Take some time off

14. 2-14 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu The Creative Process PreparationInvestigationTransformation IncubationIlluminationVerification Implementation

15. 2-15 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu The Creative Process PreparationInvestigationTransformation IncubationIlluminationVerification Implementation

16. 2-16 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu The Creative Process PreparationInvestigationTransformation IncubationIlluminationVerification Implementation

17. 2-17 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu The Creative Process PreparationInvestigationTransformation IncubationIlluminationVerification Implementation

18. 2-18 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu The Creative Process PreparationInvestigationTransformation IncubationIlluminationVerification Implementation

19. 2-19 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu The Creative Process PreparationInvestigationTransformation IncubationIlluminationVerification Implementation

20. 2-20 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu The Creative Process PreparationInvestigationTransformation IncubationIlluminationVerification Implementation

21. 2-21 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu The Creative Process PreparationInvestigationTransformation IncubationIlluminationVerification Implementation

22. 2-22 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Techniques for Improving the Creative Process Brainstorming Goal is to create a large quantity of novel and imaginative ideas. Mind-mapping A graphical technique that encourages thinking on both sides of the brain, visually displays relationships among ideas, and improves the ability to see a problem from many sides. Rapid prototyping Transforming an idea into an actual model that will point out flaws and lead to design improvements.

23. 2-23 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Protecting Your Ideas Patent – a grant from the Patent and Trademark Office to the inventor of product, giving the exclusive right to make, use, or sell the invention for 20 years from the date of filing the patent application.

24. 2-24 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu The Steps to a Patent Establish the invention’s novelty Document the device Search existing patents Submit the patent application Prosecute the patent application Study search results

25. 2-25 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Protecting Your Ideas Trademark – any distinctive word, symbol, design, name, logo, slogan, or trade dress a company uses to identify the origin of a product or to distinguish it from other goods on the market. Servicemark – the same as a trademark except that it identifies the source of a service rather than a product.

26. 2-26 Visit UMT online at www.umtweb.edu © 2007 UMT Visit UMT online at www.umtweb.edu Protecting Your Ideas Copyright – an exclusive right that protects the creators of original works of authorship such as literary, dramatic, musical, and artistic works. Copyrighted material is denoted by the symbol ©.