CHAPTER TWO curiosity about a specific problem or area of study.

For most
Entrepreneurship and Innovation
2.1 Creativity as a prerequisite to Innovation
Creativity: The ability to bring something new. Creativity is
the ability not the activity of bringing something new.
Innovation: is the process of doing new things.
The distinction is important. Ideas have little value until they
are converted in to new products, services, or processes.
Innovation, therefore, is the transformation of creative ideas
into useful applications, and creativity is a prerequisite to
innovation.
2.2. The Creative Process
Ideas usually evolve through a creative process whereby imaginative
people germinate ideas, nurture (encourage to flourish) them, and develop
them successfully. In each stage, a creative individual behaves
differently to move an idea from the seed stage of germination to
verification. The stages are:
1. The Creative Process (Germination)
Idea Germination- The seeding Stage of a new Idea new idea,
Recognition
Germination stage is a seeding process. Exactly how on idea
is germinated is mystery (unknown); it is not something that
can be examined under a microscope. However most
creative ideas can be traced to on individual’s interest in or
entrepreneurs, ideas begin with an interest in a subject or
curiosity about finding a solution for a particular problem.
2. The Creative Process (Preparation)
Preparation-conscious search for knowledge,
rationalization
Once a seed of curiosity (interest) has taken form as a
focused idea, creative people embark on (get on) a conscious
search for answers. Then they begin an intellectual journey,
seeking information about the problem and how others tried
to solve it. Inventors will setup a laboratory experiments.
More often, conscious deliberation will only overload the
mind, but the effort is important in order to gather
information and knowledge vital for an eventual solution.
3. The Creative Process (Incubation)
Incubation- subconscious assimilation of information, fantasizing
Individuals sometimes concentrate intensely (deeply) on an idea,
they simply allow ideas time to grow without intention effort.
come from thunderbolts (eye opener) (flashes of Genius). Most ev
creative people while they go about activities.
 Incubation is the stage of “mulling it over” (thinking
over) while the subconscious intellect assume control of
the creative process.
 When we consciously focus on a problem, we behave
rationally to attempt to find systematic resolution. When

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 we rely on subconscious (unintentional) process, our
mind is untrammeled (free) by the limitation of human
logic.
 The subconscious mind is allowed to wander (travel
without destination) and to pursue fantasies
(imaginations) and therefore open to unusual information
and knowledge that we cannot assimilate in conscious
state.
4. The Creative Process (Illumination)
Illumination-Recognition of idea as being feasible-
Realization (intellectual or spiritual enlightenment)
 Illumination (brightness) occurs when the idea
resurfaces (reemerges) as realistic creation. The Fable
(story) of the thunderbolt is captured in a moment of
illumination. Illumination may be triggered by an
opportunity incident. Most creative people go through
many cycles of preparation and incubation, searching
for that incident as a catalyst to give their idea full
meaning.
 Illumination is important for entrepreneurs because
ideas, by themselves, have little meaning. Reaching
illumination stage separates day-dreamers from
creative people who find a way to transmute (convert)
value.
5. The Creative Process (Verification)
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Verification- Application or test to prove ideas has value- Validation
An idea once illuminated in the mind of an individual still
has little meaning until verified as realistic and useful.
Entrepreneurial effort is essential to translate an illumination
idea into verified, realistic and useful application.
Verification is the development stage of refining knowledge
into application. This is often tedious (boring) and requires
perseverance (persistence) by an individual committed to
finding way to “harvest” the practical results of his/her
creation. During this stage, many ideas fall by the wayside
(to fail to continue or complete something) as they prove to
be impossible or to have a little value.
Seven Conditions Required for Success in Innovation
1. An outstanding person in an executive leadership
position to support strategic decisions that encourage
creativity and innovation development.
2. An operational leader to carry out the essential tasks
of converting knowledge into a commercial
application.
3. A clear need for the application by sufficient potential
consumers to warrant the commitment of resources to
innovation.
4. The realization of the product, process, or service as a
useful innovation providing value to society.
5. Good cooperation among the crucial player and
among diversified function in an organization, all
 whom together, must bring the idea to fruition 2.6. Success Factors for Entrepreneurs
(completion).
 The Entrepreneurial Team: The term team is used
6. Availability of resources and the supporting
because, more often than not, entrepreneurs do not start
technology to succeed in the endeavor
business by themselves; they have teams, partners, close
7. Cooperation and support from external sources who
associates, or extensive network of advisers. We can infer
can influence the success of an innovation, including
that success is closely tied to a solid knowledge base and
government agencies, investors, supplier, and
substantial experience in related filed of endeavor.
creditors.
 Venture Products and Services: Nearly all successful
ventures start small and grow incrementally; few “gear
up” with substantial organizations for a big-bang
(explosion) start. Positive Cash Flow, Profit Margins,
2.5. Windows and Corridors Cost Control and overhead monitoring, are all a key
success factors.
A window is a time horizon during which opportunities exist
 Marketing and Timing: Successful entrepreneur tend to
before something else happened to eliminate them. A unique
have a clear vision of both existing and potential
opportunity, once shown to produce wealth, will attract
customers. An entrepreneur loaded with talent and great
competition, and if the industry is easy to enter, the industry
idea will not convince investor that a venture is viable
will become rapidly saturated. Every successful product and
without valid market research. There are not shortcuts;
service has had an optimal period of time for
innovation requires market demand, not simply a good
commercialization. Those introduce too early have usually
idea.
failed, and those introduced too late suffered from crowded
 Business ideology: Business ideology is defined as
markets. Entrepreneurs, therefore, must not only recognize
system of beliefs about how one conducts an enterprise.
opportunities, but also take advantage of them while
These beliefs include a commitment to providing
windows exist to be successful. The corridor principle
customers with value, the ability to take calculated risk,
suggest that opportunities evolve from entrepreneurs being
the determination to grow.
positioned in similar work or having had experience with
related venture so that when a window opens it is easy for
them to move quickly into a new venture.
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