1.

Discuss and distinguish how creativity, invention and innovation are linked to
entrepreneurship?

2. Explain the difference between an idea and an entrepreneurial opportunity. Why is it important
to recognize if your idea is truly an entrepreneurial opportunity or only an idea?

7. List the users of a business plan and associate them with the functions (components of a
business plan) which they consider to be their primary focus. Example: Investors are more
interested with financial plan section of a business plan for different reasons.

. 8. Why do you think that creativity and innovation has been weak in Ethiopia? Give your own
opinion

How do businesses use creativity and innovation?

Encourage innovation in your business
1. Make sure you have processes and events to capture ideas. ...
2. Create a supportive atmosphere in which people feel free to express their ideas without the risk
of criticism or ridicule.
3. Encourage risk taking and experimentation - don't penalise people who try new ideas that fail.

How creativity and innovation are related?

Creativity

 Creativity is defined as “the use of imagination or original ideas to create something.”

Innovation, on the other hand, means “a new method, idea, product, etc.” For that, you'll
need a creative team that's able to bring an innovative idea to action
How creativity and innovation are related?

 Creativity is defined as “the use of imagination or original ideas to create something.”

Innovation, on the other hand, means “a new method, idea, product, etc.”For that, you'll
need a creative team that's able to bring an innovative idea to action

Why innovation and creativity is important in entrepreneurship?

Creativity improves the process of solving problems. It doesn't matter if we're talking about
developing a new strategy or an innovative way to stay ahead of the competition. Creative
problem solving gives that competitive edge that any business is striving to achieve.
 Invention

Invention: It is the act of “creating” something (Idea, product, technology, process, system,
meaning, solution) for the “first” time, an invention is something new – i.e. no known prior
exists beforehand.

The new creation can potentially have a social or economic impact, and it might not be a
“completed/finished” creations but something which can be further developed.

Innovation

Innovation: It is the act of “renewing” or “changing” what has already been invented to
something new. It can relate to an idea, product, service, technology or process. Innovation can
be defined on a specter from incremental innovation to radical innovation. Generally,
incremental innovation is as improving what is already known, where radical innovation is the
creation of something new, which disrupts status quo. It was largely accepted that an innovation
should be possible to implement and/or commercialize to give value to someone- i.e. customers,
society and companies.

Entrepreneurship

Entrepreneurship: It was not as linear defined as invention and innovation. The focus was either
on the process of entrepreneurship or the people. The process was described as means-driven
(Sarasvathy, 2001) or the acting on opportunity or as a creation and destruction process. All with
the result of either building a venture/business/organisation or with the broader term value
creation as end result.
 Invention

 A thing no one had thought about before

 Invention=innovation
 To invent and develop (creation)
 A new product or service
 New creation
 To invent something new
 New produce, service or idea
 Idea
 Invention covers that you as a student invent something new to you…maybe also to others
 Scientifically valuable new idea ,Creativity
Innovation
 Make a new product or service and make a sale (Commercialization)
 Something that also have a commercial side (market analysis) –
 Development of a new solution -Similar to invention, but less a thing
 Abstrac
 Value creation, novelty
 Combining existing things in new ways that create value
 Bring inventions to use
 Clever solutions
 Utility
 Methodology/ physical product
 Combine theory with practical stuff into new products
 the process of creating new things/ideas without existing knowledge
 Methodology to bridge the idea into end product
Entrepreneurship
The need to make a product or service a business
to do it in practice
Business, mindset
leads to a business case
Making money on inventions
Practical start-up
Creating value with ideas
Not necessarily innovation
From Scratch
Outcome/product
The process of putting your inventions into production and making it a live in
production
Converting ideas into sustainable and marketable products
Put ideas on the market

2. Ideas are solutions to problems and are important providing creative spark for your business.
Opportunities, on the other hand, are something (ideas, circumstances, situation) that can lead to
a desirable and viable business. They may or may not originate from an idea. Opportunities have
value.
 Opportunity refers to a favorable time or situation for doing something whereas an idea refers to
a thought or suggestion about a possible course of action. Idea, on the other hand, is a plan.

Why is it important for entrepreneurs to differentiate between an idea and an opportunity?

Put simply: a business idea is a concept that could be used to make money, and an opportunity
has proven commercial value. Knowing the difference between an idea and an opportunity
is crucial to avoid wasting significant time and money.
7. The purpose of a Business Plan is to identify, describe and analyze a business opportunity
and/or a business already under way, examining its technical, economic and financial
feasibility.

Who are the users of a business plan? Investors require a business plan. They invest in the
people, the idea, the track records, the market, the technology, and other factors; but they look to
the business plan to define and explain the business. You need a business plan if you're working
with partners.

5 components of a business plan

Main Components of a Business Plan
 Executive summary. This is your five-minute elevator pitch. ...
 Business description and structure. This is where you explain why you're in business and what
you're selling. ...
 Market research and strategies. ...
 Management and personnel. ...
 Financial documents.
10 essential components of a business plan
 Executive summary.
 Business description.
 Market analysis and strategy.
 Marketing and sales plan.
 Competitive analysis.
 Management and organization description.
 Products and services description.
 Operating plan.
Major function of business plan components.
The executive summary, marketing plan, key management bios, and financial plan business plan
sections are critical and should be included in all business plans. Additional sections can be
added to these four when targeting specific purposes and audiences.
8. Why do you think that creativity and innovation has been weak in Ethiopia?
Most business enterprises in developing countries like Ethiopia are small- and medium-
sized and face various challenges including lack of processed technological information,
inadequate training capabilities at technical and vocational education training (TVET)
centers, lack of access to financial and other resources.
The factors include poor business plans, lack of entrepreneurial characteristics, poor
management of people, lack of finance, absence of supporting institutions, poor location, absence
of BDS, management incompetence, poor financial control, lack of experience, failure to develop
a strategic plan, inability to make an idea generate.