6 Entrepreneurship

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[Student Learning Outcome } - - -- - - - - - - - - - - - - - --
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After completing this unit students will be able to:
• Describe how innovation has changed the entrepreneurial mindset.
• List the steps of the design thinking process include identifying an issue, empathi:zi C',
defining, ideate, prototyping, testing, reflecting, iterate/repeating as needed and
implementing.
• Discuss the benefits to the innovation process of each design thinking step.
• Understand sustainable development goals in the context of the problems_the w·orld is
facing that need to be solved.
• Identify the use and benefits of design thinking for entrepreneurs.
•· Explain a project through the design thinking process; identify an issue, prototype & test.
• Identify key problems faced by the world today, through the lens of sustainable.
development. goals.
• Share examples of problems faced that could be solved by a product or a service.

,.
Entrepreneurship refers to the process of creating,
t
developing, and managing a business or venture with the
goal of generating profit and value. Entrepreneurs are
ndividuals who take on the risks and responsibilities
associated with starting and running a business.
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Entrepreneurship is a key driver of innovation, economic '--- _ __
growth, and job creation in many societies around the world. Fie 6. 1 Entrepreneurship process
Here are some key aspects of entrepreneurship:
Innovation: Entrepreneurs often bring new ideas, products, or services to the
market. They identify opportunities and gaps in the market and seek to create
something new or improve upon existing offerings.

Risk-taking: Entrepreneurship involves taking risks, both financial and personal.

Entrepreneurs invest their own money or seek funding from invest ors to start and
grow their businesses, and there's always a possibility of failure.

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Creativity: Creative thinking is crucial for identifying opportunities, solving
'i \:., \11-,P\~,u;i Mirr.) problems, and differentiating a business from competitors.
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 Independence: Entrepreneurs have a high degree of independence and
control over their businesses. They make decisions about the direction of the
company and its
operations.

Flexibility: Entrepreneurship often requires adapting to changing

circumstances and being flexible in response to market feedback and evolving
trends.

Persistence: Building a successful business can be challenging, and setbacks are

common. Entrepreneurs need to be persistent and resilient in the face of obstacles.
Scaling: As a business grows, entrepreneurs may need to scale their operations,
which can involve hiring employees, expanding into new markets, or seeking
additional funding.
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Innovation has profoundly.transformed the entrepreneurial mindset in several ways, ushering in
a new era of business thinking and practices.

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Fig 6.2 Entrepreneurial mindset

Here are some key ways in which innovation has influenced the entrepreneurial mindset:
6.2.1 Risk-Taking and Adaptability
Innovation has encouraged entrepreneurs to embrace risk and uncertainty. The rapidly changing
technological landscape has made it clear that staying in one's comfort zone is no longer a viable
option. Entrepreneurs are now more willing to take calculated risks and adapt quickly to changing
market conditions.
6.2.2 Customer-Centric Approach
Innovation has shifted the focus from product-centric to customer-centric thinking. Entrepreneurs
increasingly recognize that innovation should be driven by the needs and preferences of their target
audience. This customer-centric approach helps in creating products and services that are more likely to
succeed in the market.
6.2.3 Iterative Development
The concept of continuous improvement and iterative development has become ingrained in the
entrepreneurial mindset. Innovators understand that the first version of a product or service may
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not be perfect, and they are open to making ongoing improvements based on feedback and
changing market dynamics.
6.2.4 Embracing Technology
Innovation and technology are now intertwined. Entrepreneurs must be tech-savvy and open to adopting
new technologies to stay competitive. The entrepreneurial mindset now includes a willingness to leverage
digital tools and platforms for various aspects of business operations.
6.2.5 Global Perspective
Innovation has expanded the horizons of entrepreneurs. With the internet and globalization,
entrepreneurs no longer think solely about lo.cal or regional markets. They are more inclined to
Do you Know?
The term value proposition is believed to have
r first appeared in a McKinsey & Co. industry
research paper in 1988, which defined it as "a
clear, simple statement of the benefits, both
tangible and intangible, that the company will
provide, along with the approximate price it will
charge each customer segment for those
.J>enefits."
explore international opportunities and tap into global networks for ideas, talent, and customers.
6.2.6 Collaboration and Networking
Innovation often- thrives in collaborative environments. Entrepreneurs are increasingly open to
partnerships, co-creation, and networking with other businesses, startups, and research
institutions. This collaborative mindset helps in accessing resources and expertise that can fuel
innovation.
6.2.7 Sustainability and Social Impact
Innovation has spurred a greater awareness of sustainability and social impact. Entrepreneurs are
not only concerned with profitability but also with the environmental and social consequences of
their ventures. Many startups are founded with a strong commitment to creating positive change
in society.
6.2.8 Data-Driven Decision- Making
The availability of data and analytics tools has made data-driven decision-making a fundamental
aspect of the entrepreneurial mindset. Entrepreneurs rely on data to gain insights into customer
behavior, market trends, and the performance of their businesses.

Design thinking is a human-centered problem-solving approach that involves several iterative steps. While
the exact number and sequence of steps can vary depending on the source, here is a commonly accepted
version of the design thinking process:
6.3.1 Empathize
This is the first step, where designers seek to understand the problem from the perspective of the
people they are designing for. They immerse themselves in the users' experiences and gather
insights by conducting interviews, observations, and surveys to empathize with their needs and
challenges.
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fMPATHIZE DEFINE IDEATE ' f l r TE~T IMPLEMENT

Fig 6.3 Design Thinking Process

6.3.2 Define
7 t·..,:s ste::, C:esigners synthesize the information collected during the empathy phase to define
t'~e c: '"'2 ::; -~: eri O'" challeng e they are trying to address.. This involves creating a clear and
act:011ac'e problem statement that serves as a guiding focus for the rest ofthe process:
6.3.3 Ideate
loeacic 'l ;~ o' 2s generating a wide range of creative ideas and potential solutions to the defined
oroole.....,_ 3'"ainstorming sessions, mind mapping, and other creative techniques are used to
encourage divergent thinking. The goal is to come up with as many ideas as possible without
jucg"""lent.
6.3.4 Prototype
Orce z se·ect·o.., o-' promising ideas has been generated, the next step is to create rough, low-
fidelity c ...__, totyoes ofthese ideas. Prototypes can take various forms, such as sketches, wireframes,
physical models, or digital mock-ups. These prototypes are used to convey the essence of the
potential solutions.
6.3.5 Test
Prototypes are put in front of the end users or stakeholders to gather feedback and insights.
Testing helps designers understand how well their solutions meet user needs and whether
adjustments are requi red. It often involves observing user interactions and conducting usability
tests.
6.3.6 Implement
Once a refined solution has been developed and tested successfully, it is time to move towards
implementation. This involves scaling up the solution, creating detailed plans, and executing the
necessary steps to bring the design to life. It may also involve collaborating with various
stakeholders to ensure a smooth transition.
• c:. i o esign hi 1ng Proces for Entrepreneu s
Design thinking offers numerous uses and benefits for entrepreneurs in various stages of their business
development. Here's how design thinking can be employed and the advantages it brings to entrepreneurs: :l
6.4 .1 Use of Design Thinking for Entrepreneurs
Idea Generation: Entrepreneurs can use design thinking techniques to generate innovative
business ideas by fostering creative brainstorming and problem-solving sessions. It encourages J
thinking beyond traditional boundaries, leading to unique and differentiated concepts. ~
Product Development: Entrepreneurs can apply design thinking to create products or services
that are user-centered. This approach ensures t~at the final offering aligns with customer needs
and preferences, increasing the chances of success in the market.
User Experience Design: Design thinking can be used to design seamless and intuitive user
experiences (UX) for digital products, websites, and mobile apps. Entrepreneurs can enhance
customer satisfaction and loyalty by prioritizing user-friendly design.
Problem Solving: Entrepreneurs often face complex challenges, and design thinking provides a
structured framework for identifying, defining, and solving these problems. It encourages a holistic
view of issues and promotes effective solutions.
Prototype and Testing: En.trepreneurs can rapidly prototype and test their ideas or concepts witti
real users. This iterative process allows for quick validation and refinement, reducing the risk of
investing in ideas that may not work.
6.4 .2 Benefits of Design Thinking for Entrepreneurs
User-Centered Solutions: Design thinking places users at the center of the innovation process,
resulting in products and services that better meet customer needs and preferences. This increases
the likelihood of market success.
Reduced Risk: Rapid prototyping and testing in design thinking allow entrepreneurs to identify
and address issues early, reducing the risk of costly failures in later stages of development.
Competitive Advantage: Entrepreneurs who leverage design thinking are more likely to create
unique, differentiated offerings that stand out in the market, giving them a competitive advantage.
Adaptability: Design thinking encourages flexibility and adaptation in response to changing
market conditions. Entrepreneurs can pivot their strategies and solutions as needed to stay
relevant.
Enhanced Problem-Solving Skills: Entrepreneurs and their teams develop stronger problem-
solving skills through the iterative and user-focused nature of design thinking. This skill set can be
applied to various aspects of business.
Customer Loyalty: By consistently delivering products and experiences that align with customer
expectations, entrepreneurs can build customer loyalty ar,id long-term relationships.
Efficiency and Cost Savings: Design thinking can lead to more efficient processes and resource
allocation by focusing on what truly matters to customers. This can result in cost savings and
resource optimization.
Alignment with Market Trends: Design thinking helps entrepreneurs stay attuned to evolving market
trends and customer preferences, ensuring that their offerings remain relevant overtime.
6- - s . -, I Dev lo n1en Go I-
The Sustainable Development Goals (SDGs) are a set of 17 global objectives established by the
United Nations in 2015 to address a wide range of interconnected challenges and problems that
the world is facing. These goals are designed to guide global efforts toward a more sustainable,
equitable, and prosperous future for all. They recognize that various pressing issues must be
addressed simultaneously to achieve meaningful and lasting progress.

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velopme

Fig 6.4 SDGs

Here's an overview of the SDGs in the context of the problems they aim to solve:
No Poverty (SDG 1): End poverty in all its forms everywhere. This goal addresses the fundamental
issue of global poverty, aiming to uplift people out of extreme poverty and reduce income
inequality.
Zero Hunger (SDG 2): End hunger, achieve food security and improved nutrition, and promote
sustainable agriculture. This goal targets the problem of food insecurity and malnutrition, striving
for a world where everyone has access to sufficient, safe, and nutritious food.
Good Health and Well-being (SDG 3): Ensure healthy lives and promote well-being for all at all
ages. This goal tackles major health challenges, including reducing maternal and child mortality,
addressing infectious diseases, and promoting mental health.
Quality Education (SDG 4): Ensure inclusive and equitable quality education and promote
lifelong learning opportunities for all. Access to quality education is crucial for addressing various
global challenges, including poverty, inequality, and lack of opportunities.
Gender Equality (SDG 5): Achieve gender equality and empower all women and girls. Gender
inequality is a pervasive issue that affects many aspects of society, and this goal seeks to eliminate

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discrimination and promote gender equity.
Clean Water and Sanitation (SDG 6): Ensure availability and sustainable management of water
and sanitation for all. Access to clean water and sanitation is essential for health, economic
development, and environmental sustainability.
Affordable and Clean Energy (SDG 7): Ensure access to affordable, reliable, sustainable, and
modern energy for all. This goal addresses the challenges of energy poverty and the need to
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transit ion to clean and renewable energy sources.
Decent Work and Economic Growth (SDG 8): Promote sustained, inclusive, and sustainable
economic growth, full and productive employment, and decent work for all. Economic growth
must be accompanied by decentjob opportunities and reduced inequality.
Industry, Innovation, and Infrastructure (SDG 9): Build resilient infrastructure, promote
inclusive and sustainable industrialization, and foster innovation. This goal focuses on sustainable
development through infrastructure development and technological progress.
Reduced Inequalities (SDG 10): Reduce inequality within and among countries. This goal seeks to
address inequalities in income, opportunity, and access to resources, recognizing that inequality
hinders sustainable development.
Sustainable Cities and Communities (SDG 11): Make cities and human settlements inclusive,
safe, resilient, and sustainable. Urbanization is a global trend, and this goal aims to ensure that
cities are designe.d and managed to be sustainable and livable.
Responsible Consumption and Production (SDG 12): Ensure sustainable consumption and
production patterns. This goal addresses issues of resource depletion, waste generation, and
unsustainable consumption habits.
Climate Action (SDG 13): Take urgent action to combat climate change and its impacts. Climate
change poses a severe threat to the planet and its people, and this goal calls for mitigation and
adaptation efforts.
Life Below Water (SDG 14): Conserve and sustainably use the oceans, seas, and marine resources
for sustainable development. This goal focuses on protecting marine ecosystems and addressing
issues such as overfishing and marine pollution.
Life on Land (SDG 15): Protect, restore, and promote sustainable use of terrestrial ecosystems,
sustainably manage forests, combat desertification, and halt and reverse land degradation and halt
biodiversity loss. This goal addresses land degradation, deforestation, and the loss of biodiversity.
Peace, Justice, and Strong Institutions (SDG 16): Promote peaceful and inclusive societies for
sustainable development, provide access to justice for all, and build effective, accountable, and
inclusive institutions at all levels. This goal emphasizes the importance of good governance, the
rule of law,_and access to justice.
Partnerships for the Goals (SDG 17): Strengthen the means of implementation and revitalize the
global partnership for sustainable development. This goal recognizes that achieving the other
SDGs requires collaboration between governments, businesses, civil society, and international
organizations.
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6 -.IL&a:;ti ■ T

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• Entrepreneurship refers to the process of creating, developing, and managing a business or
u venture with the goal of generating profit and value.
u • Entreprenews are individuals who take on the risks and responsibilities associated with starting
ec and running·a business.
ac • Entrepreneurs are -now more willing to take calculated risks and adapt quickly to changing
market conditions.
• Design thinking is a human-centered problem-solving approach that involves several iterative
steps.
• Empathize is the first step, where designers seek to understand the problem from the
perspective of the people they are designing for. '"'
• In define step designers synthesize the information co llected during the empathy phase to
define the core problem or challenge they are trying to address.
• Ideation involves generating a wide range of creative ideas and potential solutions to the
defined problem.
• Once a selection of promising ideas has bee.n generated, the next step is to create rough, low-
fidelity prototypes·of these ideas.
• Testing helps designers understand how well their solutions meet user needs and whether
adjustments are required.
• Once a refined solution has been developed and ~ted successfully, it is time to move towards
implementation.
• The Sustainable Development Goals (SDGs) are a set of 17 global objectives established by the
United Nations in 2015 to address a wide range of interconnected challenges and problems
that the world is facing.

Tick ( /) the Correct Answer:

E~.- Exercise
1. To identify opportunities and gaps in the market and seek to create something new is called
a. Innovation b. Risk taking c. Flexibility d. Independence
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N, 2. As a business grows, entrepreneurs may need to _ ____ .their operations, which can
involve hiring employees etc.
is~
int a. Adopt b. Scale c. Innovate d. Create
ZE 3. What is the first stage of the design thinking process?
SU a. Ideation b. Prototyping c. Empathize d. Testing
fo 4. During which stage of design thinking do you brainstorm ideas and solutions?
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a. Define b. Prototype c. Ideate d. Test
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ad 5. What is the purpose of the "Define" stage in design thinking?
Q, a. Generate a wide range of ideas b. De'1elop a deep understanding of users' needs
lifE c. Create a prototype of the solution d. Refine and narrow down the problem statement
gl< 6. Which stage of the design thinking process involves building a physical or digital
GE representation of the solution?
inE a. Empathize b. Test c. Ideate d. Prototype

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 7 In the dc!>1gri thinking process, what i!Y the purpose of the "Test'' stage?
a. Gather feedback from users and make improvements
b. Brainstorm new ideas
c. Define the problem statement
d. Conduct interviews with potential users
8. What are the United Nation$ Su$tainable Devflopment Goals (SDGs) primarily focused on?
a. Climate change mitigation
b. Poverty reduction and global development
c. International peace and security
d. Humanitarian aid and disaster relief
9. How many Sustainable Development Goals (SDGs) were adopted by the United Nations in
2015?
a.5 b.10 c.17 d.25
10. Which SDG aims to ensure acces~ to clean water and sanitation for all?
a. SDG 3 b. SDG 6 c. SDG 11 d. SDG 13

Answer he Following Questions briefly:

1. What is the central idea behind the "Empathize" stage in design thinking?
2. What is the primary purpose of the "Prototype" stage in the design thinking process?
3. During which stage of design thinking do you brainstorm and generate .creative solutions?
4. Why is testing an essential step in the design thinking p~ocess?
5. What is the main objective of the "Define" stage in design thinking?
6. What do the initials "SDGs" stand for?
7. How many Sustainable Development Goals (SDGs) were adopted by the United Nations?
8. Name one of the key global challenges addressed by the SDGs.
9. What is the deadline for achieving the Sustainable Development Goals?
10. Can you provide an example of an SDG related to environmental sustainability?
Answ r :he Following Questions in details:
1. How does empathize phase in design thinking process help in understanding user's need?
2. In ideation phase of design thinking what strategies can teams employ to encourage a diverse
range of creative ideas?
3. Discuss the significance of prototyping in design thinking process.
4. How can we navigate challenges in implementation phase of design thinking process?
5. How can the integration of technology and innovation be leveraged to address and accelerate
the progress towards specific SDGs?