METRO BUSINESS COLLEGE

2OO Arnaiz Street, Avenue Pasay City

CHAPTER - 2

Subject: The Entrepreneurial Mind

Topic: Generating Ideas; Harnessing Logic and Creativity
Learning Objectives:
After reading this chapter, you should be able to:
• Identify the various sources of ideas for entrepreneurial
venture
• Discuss the alternative methods for generating ideas for a
new venture
• Discuss emerging trends that could be the source of new
venture ideas
• Explain the factors that contribute to creative thinking
• Explain the role of creativity in generating new venture
ideas
• Utilize some techniques in creative problem solving.

INTRODUCTION
As discussed in the previous chapter, the
entrepreneurial process involves several stages from the
preparation of a business plan to its implementation. A plan
to pursue a business usually comes from a novel idea.
 This business idea, in turn, is a product of various thinking
processes, including critical thinking and creative thinking.
SOURCES OF IDEAS FOR ENTREPRENEURIAL
VENTURES
A number of practicing entrepreneurs and business coaches
identified a host of sources, from which we can find business
ideas. These can be categorized into four major sources:

a. From the product

b. From the process
c. From the person
d. From relationship

METHODS FOR GENERATING OR TESTING NEW

IDEAS

There are several methods of generating business ideas. We

will classify them into logical thinking and creative thinking.

GENERATING BUSINESS IDEAS THROUGH LOGICAL

THINKING

1. Logical thinking refers to the systematic and rational way

of providing an answer to a question.
2. Statistical analysis refers to a systematic analysis of data
generated from a survey of individuals.
 3. SWOT (strength, weakness, opportunities, threats) analysis
is usually undertaken to describe the state of competition
within an industry.

4. Delphi techniques on the other hand, is the systematic way

of generating ideas from a select group of individuals using
various rounds of consultations or sessions.

GENERATING BUSINESS IDEAS THROUGH

CREATIVE THINKING

New business ideas can also generate various methods of

exploring our creativity. As described in the previous chapter,
creativity refers to thought processes that do not follow
systematic or analytical procedures but look at things from
different perspectives.

Brainstorming refers to an unstructured discussion of a group

to elicit ideas.

Problem inventory analysis is similar to brainstorming. It uses

the group discussion method to elicit ideas from participants.

Free association method is another technique used in

discovering business ideas. It is a method that has been used in
psychology to elicit the unconscious thoughts of individuals by
expressing their thoughts associated with words and ideas given
by the therapist.
FACTORS THAT INFLUENCE CREATIVITY

Given the various sources and methods of generating creative

ideas, as well as the mechanisms in developing creativity, a
number of scholars have synthesized these factors affecting
creativity, which can be grouped into four categories:

a. Problem solving factors

b. Motivational factors
c. Situational factors
d. Organizational factors.

CREATING PROBLEM SOLVING

• Is a procedure of answering a problem with mechanisms

and techniques incorporating activities.

The following six steps are followed in the Osborn-Parnes

model. They look very simple and easy to do, but each stage
requires various creative processes.

1. Setting the objectives.

2. Revisiting the objectives.
3. Identifying the problem.
4. Looking for a solution.
5. Selecting a solution.
6. Accepting the solution.
 METRO BUSINESS COLLEGE
200 St. Arnaiz, Pasay City

Name of Learner: ___________________________

Course: ___________________________
Subject: The Entrepreneurial Mind

Submission of activities on __________

Direction: QUESTION FOR DISCUSSION?

1. According to the confluence approach, one of the factors that influence

creativity is an environment that supports creative ideas. Do you think your
school provides an atmosphere conducive for creating thinking among its
students? Why or why not?
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