1.

Discuss the differences among creativity, innovation, and

entrepreneurship. How are they related? And, why creativity and
innovation are important to the survival and success of a business?

Creativity involves transforming new and imaginative ideas into

reality. It is also characterized by the propensity to find and perceive different
patterns. Innovation involves the application or implementation of ideas that
marks the establishment or improvement of up to date products and services or
applying creativity to establish new ideas or solutions. Entrepreneurship involves
the creation of product and application of innovation to bring about the
accumulated ideas into reality.

These three terms are related in a way that both creativity and
innovation are considered to be vital components of entrepreneurship.
Entrepreneurship is facilitated by innovation and innovation would not be
possible without creativity.

Creativity and innovation are important to the survival and success of a

business. Creativity can result in improved or increased productivity of an
organization. By encouraging employees to think new ideas and giving them
adequate time and resources to carry out these ideas can guarantee competitive
advantage and generate solutions to problems. Creativity is the driving force of
innovation that can propel it forward. By being innovative, the has the capacity
rto offer new products and services thus provides edge over other competitors.
To sum up, creativity and innovation facilitate the process of improvement,
productivity, marketing success, and internal harmony.

2. Read a short story below and answer the following questions

based on theories.
Margie was an entertainer. Since the work was not always
steady, she forced to look for a part time job. She earned additional
money working at a print and copy shop for many years.The elderly
couple who owned the shop allowed Frances to work flexible hours
so that she could pursue her career as entertainer. Sadly, the
husband died, and the wife decided to sell the business and move
away. Margie was excited about the opportunity to purchase the
business.

The former owner helped Margie gather financial information

and put together a business plan. Her uncle consigned a bank loan,
and she was in business. She modernized the décor of the shop but
made few other changes. Margie contacted all the existing
customers to assure them equal or better service. Sales increased
the first two months. But then….
The former owner left town earlier than planned. Then Margie
chief printer quit. Using part time employees, she was frantically
trying to get large orders out on time. With no formal business
training and no management experience, Margie couldn’t begin to
deal with all these problems –problems that even an experienced
business person would find difficult. She ended up selling the business
at Php 210,000 loss
 Questions:
2.1 What characteristics did Margie possess that led her to
become an entrepreneur?
Margie is very diligent or hardworking, risk taker, profit
oriented,excellent planner, and creative.
2.2 What circumstances out of Margie’s control led to the failure
of this business?
The circumstances that have led to Margie’s failure would be
the moving away of the former owner earlier than what was
expected and resignation of her chief printer.

2.3 Are there steps Margie could have taken to try to save her business?
She should have undertaken research or analysis to find answers to
her problems, identified and applied new and potentially unique ideas
to reach her goals,confronted problems and issues with others
directly, and adapted to changes in her business.