Creativity,

Innovation,
&
Entrepreneurship

MGT 215
Lara Al Arab
 “How Can we Know
Where We’re Going
Without Knowing First
Where We ‘ve Been?”
Creativity:
Past,
Present, &
Future…..
 Creativity: What is it???……
“The ability to create and innovate has been
observed throughout history and even though the
fundamental tools may have changed the ability
has been prevalent in every civilisation”
(Hisrich, Peters and Shepherd, 2005, p. 8).

“May our species be resurrected and awakened

by the Spirit of Creativity for this coming century”
(Fox, 2002).
The Past…….

“Throughout history, the process of creation whether;

paintings or musical compositions were thought of as
‘spiritual experiences in the service of whatever muse
held the artist in her thrall”
(Thorsby, 2001, p. 95).

“The artist was a channel for a superior power, creativity

a gift from the gods, and the imagination a divine
spark”
(Thorsby, 2001, p. 94).
 Small and Medium Sized Enterprises
(SMEs)
The main factors determining whether a company is an SME are:

Company
Employees Turnover or Balance sheet total
category
Medium-sized < 250 ≤ € 50 m ≤ € 43 m
Small < 50 ≤ € 10 m ≤ € 10 m
Micro < 10 ≤€2m ≤€2m

5
Importance of SMEs

 SMEs play an important role in the change of

technology and innovation
 SMEs create an additional sense of competition
whilst also, providing a mechanism for
regeneration
 SMEs contribute to international competition
 SMEs create jobs
 SMEs contribute to economic growth

6
What Explains this Growth?
 Structural shift from manufacturing (large firm
dominated) to services (small firm dominated)
 Growth in personal, flexible, tailor-made services
 Restructuring by large firms – focus on core
activities, sub-contract non-core activities
 Technological change
 Scientific discoveries exploited by small firms
 Production and IT technologies have reduced the role of
economies of scale
 Low cost and access to communications technology (‘the
great equaliser’): access to information, distribution (‘the
long tail’)
Growth Continued
 Importance of human capital rather than financial
capital as the basis for competitiveness
 Consumer choice – reaction against mass
produced products and services: individualism,
demand for authenticity, natural products (e.g.
real ale beer) – growth in market niches
 Deregulation of markets: e.g. in airlines, telecoms,
media
 Personal choice – ‘rebellion’, reaction against
working in large impersonal organisations, want to
control own destiny
 Availability of finance – venture capital
 Availability of support, advice and education
Timmon’s (2007) Model
An Enterprise Needs
 According to Timmons & Spinelli (2007);
 Opportunity
 Lead Entrepreneur & A Team
 Resource Parsimony & Creative Use of
Resources
 Fit & Balance
 Integrated & Holistic
 Sustainable
The Paradoxes of Enterprise

On The One Hand On The Other

•Enterprise Requires Thought •It Is An Unplanned Event
& Preparation •You Have To Loose Money
•To Make Money •Can Be An Enormous
•An Opportunity with Little or Opportunity
No Potential •You Must First Relinquish
•To Create & Build Wealth Wealth
•To Succeed •You Must Experience Failure
 Planned or Unplanned?

Sarasvathy, 2001
The Entrepreneurial Process
So…
 Do Ideas = Opportunities?
 Do Problems = Opportunities?
 Reality - An Idea is Only an
Opportunity when It:
 Adds Value to Consumer
 It Solves a Problem
 It Can Make Some Money ( Communicate
Some Value to Other Stakeholders)
 It is a Good “Fit” with the Entrepreneurial Team
 Timmons& Spinelli (2007)
Ideas Can Start with Solving
Problems
 Solving “Points of Pain”:

 To Notice Inefficiency, Inconveniences, &

Other Forms of “Points of Pain” & Use these
to Build New Business Opportunities
Ideas Start With Solving Problems

 Any Problems are Big Opportunities.

 No Problems, No Solutions, & No Reasons for Firms

to Exist.

 No One Pays You to Solve a Non-exist Problem

(Vinod Khosla, Sun Microsystems)
Example (1): Rise of Levi’s
 Problem:
 Working Clothes for Mining Workers do Not
Last

 Solution:
 First Pair of Jeans
The Point of Pain: A Direct
Solution
http://kck.st/LEbznj
What is Your Opportunity for the Pizza
Business?
What is Your Opportunity for the Pizza
Business?
Locating a Business Idea

Mapping: where to look for?

Enterprise and its Business Environment ©

Goodfellow Publishers 2016
Searching for Business Opportunity in a
360 Degree Space

Enterprise and its Business Environment ©

Goodfellow Publishers 2016
Locating Business Ideas
 Products: Create Entirely New Products or New Services
 Solutions: Solve “End-to-end” Problems for Customers
 Customers: Find New Customer Segments or Unmet Needs
 Customer Experience: Change How Customers Interact With You
 Revenue Model: Change How You Get Paid
 Processes: Innovate on Operating Processes
 Value Chain: Change Position or Scope of Participation
 Logistics/Supply Chain: Change the Way You Source & Ship
 Channels: Change How you Go To Market with your Products
 R&D: Create New Technologies, Materials, Products or Processes
There are Other Techniques to
Screen Your Idea….

Enterprise and its Business Environment ©

Goodfellow Publishers 2016
Screening
 Systematic approach but avoid the
paralysis with analysis approach.
 Should screening be the same for every
business or change depending on the
context?-Service company’s think that
ideas should be generated as required
rather than an ongoing basis but still use
financial, marketing, management,
strategy and resource implications ( Kelley
& Storey 1999)
 Hard and fast rules presented by writers.
Case Studies of Successful
Businesses
 http://www.growingbusiness.co.uk/ones-
to-watch?page=6

 https://www.nationalfield.com/
True Entrepreneurial, Creative & Innovative
Acts

 Dare To Dream!!!
 Be Creative… Do Things Which Others
Refuse! No Compromise Between Dream
& Capabilities
 The New Ones Can Start from the
Forgotten Old Ones Stop & Look Around
Don’t Limit Yourselves

Enterprise and its Business Environment ©

Goodfellow Publishers 2016
Additional Resources....
• Berger, B. (1991) The Culture of Entrepreneurship. CA: ICS Press.
• Adair, J (2007) The Art of creative Thinking London. Kogan Page
• Antoncic, Bostjan & Hisrich, Robert D ( 2003) Clarifying the intrapreneurship concept Journal of Small Business & enterprise
Development Vol 10 no 1, pp7-24
• Bilton, C. (2007) Management and Creativity: From Creative Industries to Creative Management. 1st Edition, Oxford: Blackwell
Publishing.
• Christensen C, Anthony, Roth, E. (2004) Seeing What's Next: Using the Theories of Innovation to Predict Industry Change,
Harvard Business School Press.
• Davidsson, P. (2006) The entrepreneurial process. In Enterprise and Small Business: Principles, Practice and Policy, S. Carter
and D. Jones-Evans, eds. 2nd Edition, Financial Times/Prentice Hall: Hanslow.
• De Bono, E.
• Dimov, D & De Clercq,D ( 2006) Venture Capital Investment Strategy andPortfolio Failure Rate: A Longitudinal Study
Entrepreneurship, Theory and Practice
• Fox, M. (2002) Creativity: Where the Divine and the Human Meet, 1st Edition. New York: Tarcher/Putnam.
• Goffin, K., & Mitchell, R. (2005) Innovation Management, Palgrave Macmillan.
• Hisrich, R.D., Peters, M.P., Shepherd, D.A. (2005) Entrepreneurship, 6th Edition, USA: McGraw Hill Irwin.
• Howells, J. (2005) The Management of Innovation and Technology, Sage.
• Johnson, Steven (2010) Where good ideas come from
• Kelley & Storey (2000) New service Development: initiation strategies, Int Journal of Service management. Vol 11 no1pp45-62
• Lumsdaine, E., & Binks, M. 2007. Entrepreneurship: From Creativity to Innovation, Oxford: Trafford Publishing.
• McDonald, L (2009) Wild drinks: The hedgerow Martini” The Times May 30 2009 available from
http://www.timesonline.co.uk/tol/life_and_style/food_and_drink/drinks/article6365156.ece accessed 23 January 2011
• Piercy, N. (2002) Market Led Strategic Change, Third Edition, Butterworth Heinemann.
• Porter & Kramer(2011) Creating shared Value HBR Jan/Feb 2011
• Stewart, Anne(2011) Where do great ideas come from? Inc magazine [online] available from
http://www.inc.com/magazine/20021015/24773_pagen_3.html accessed 21 January 2011
• Stokes, D,. Wilson, N,. (2006) Small Business Management & Entrepreneurship, Ch4, pp100 – 139 Thomson Learning.
• Throsby, D. (2001) Economics and Culture. Cambridge: Cambridge University Press
• Timmons, Jeffry A & Spinelli, Stephen (2007) New Venture Creation McGrawHill. ch 3 & 4

• WEBSITES ACCESSED………
• http://www.sie.ac.uk/60secondshorts/videos.php
• http://www.creax.com/csa/frame.asp?session=zero