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THE CREATIVE PROCESS

Idea generation

Preparation

Incubation

Verification

Illumination

THE CREATIVE PROCESS


Idea Generation This is the seeding stage of a new idea. It is the stage where the entrepreneur recognises an opportunity exist Preparation At this stage, the entrepreneur consciously searches for information. He gathers, sort, and integrates information to provide for a breakthrough. Incubation This is the subconscious assimilation of information. It is basically fantasising

Illumination stage Also called the eureka stage. This is when the idea pops up clearly and the individual recognizes the idea as feasible and realizable, ready for launch.
Verification stage Also called the validation or testing stage. This is where the idea is verified to prove that it has value. This is the most difficult phase of creativity as obstacles begin to appear. The idea may also start evolving and taking a different direction. Some times the individual is forced to go back to the previous phases.
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THE ENTREPRENEURS INNOVATION PROCESS

Analytical planning Carefully identifying the product or service features, design as well as the resources that will be needed.

Resource organization Obtaining the required resources, materials, technology, human or capital resources. Implementation Applying the resources in order to accomplish the plans

Commercial application The provision of value to customers, reward employees, and satisfy the stake holders.

Synthesis A combination of more than one existing products or services in to a new product. or service. This means that several different ideas are combined in to one new product or service

From the above it is then obvious that creativity and innovation go hand in hand and are an integral part of entrepreneurship.

ENTREPRENEURIAL PROCESS
QUESTION Do you think that in real situations the entrepreneurship process is practiced when going into new ventures ? Give reasons

b) Among the four types of entrepreneurs who is most likely to follow the due process of the entrepreneurial process ?

INTERNAL AND EXTERNAL FACTORS THAT


TRIGGER ENTREPRENEURIAL BEHAVIOUR

Question: Are entrepreneurs born or made ? 1)Theories of entrepreneurship: Locus of control:(internal) Locus of control is the extent in which a person believes that he controls his own destinies. People with internal locus of control believes in themselves. But those with external locus of control sense that fate from outside forms the events outside their control , or powerful people dominating their lives. (rotter, 1966)

INTERNAL LOCUS OF CONTROL APPROACH According to this model, internals are likely to establish ventures and strive to achieve more than the externals. This is because someone who does not believe that the outcome of a venture will be influenced by his /her efforts is unlikely to expose himself/herself to the penalties of the failure of the venture. Research has shown that measures of locus of control tend to correlate with need to achieve (narch) and success in business ventures

RISK-TAKING PROPENSITY
According to Rotter (1966) people with risk preference either low, moderate, or high can influence an individuals decision to start ventures. Risk taking propensity is defines as a generalized tendency to choose more risky alternatives . In starting a venture , one risks financial loss, family relations, social standing in the society, career opportunities etc.

LEVELS OF INNOVATION

In defining innovation , three key elements that should be taken to account include: Business processes, results of the innovation, and how new the innovation is. The results of an innovation are a change in the product, market, technology, and the entire organisation. It is also a risky undertaking since results may be positive or negative.

TYPES OF INNOVATION
Innovation can be categorized into four types. Invention The creation of a new (novel) product or service. Something that has not been tired before. Extension The expansion of an existing product or service. This would mean that the entrepreneur takes an existing idea and applies it differently e.g. a new use for a product. Duplication Copying (replicating) an existing product or service and then adding the entrepreneurs own creative touch. In order to improve it.

ETHNICITY FACTOR TO NTREPRENEURSHIP

In many countries certain ethnic groups are more represented in entrepreneurial careers. This may form an opinion that these groups are born entrepreneurs and not made. However, this overrepresentation may have some historical roots, after which later other members of the same community may start engaging in the sector having their members as successful.

SMALL FIRMS AS ROLE MODELING


Research showed that individuals formerly employed in farms with less than 10 workers(in the african set up) were 12 times more likely to start their own ventures than those employed in large corporations and public sector. Several reason account for this: Those who intend to start their own firms learn easier from small firms than corporate environments. b) It is easier for someone to envision a role comparable to that of his supervisor.

PARENTS AS ROLE MODELS

According to (Olomi 2005) studies showed that a person who grew up in a family that runs business is likely to benefit from the business skills experience and networks of existing family business. Parents and those significant others also serve as role models to their children and relatives. Empirical research has to a large extent supported this this theory both in developing and developed countries. Question :What is the quality of role modeling that takes place in African family businesses, that a successful entrepreneur offspring become successful entrepreneurs ?

SOCIAL-ECONOMIC FACTORS
1) Push Factors : These are external factors that push families or individuals into entrepreneurial behaviour. These include: Unemployment: In order to overcome finacial difficulty. Family situations that force them to develop existing family businesses or start something new to improve the economic status. Landlessness: Many enterprises have emerged as a result of lack major resource such as land to alternative enterprising solutions.

SOCIAL-ECONOMIC FACTORS

Enterprises emerging due to social-economic factors are normally characterized by slow growth since the aim for sustenance , not for taking up new challenges. E.g self employed entrepreneurs living in villages and towns doing such business as fruit vending, candle making, tailoring, ironing clothes etc.

EMERGING

SOCIAL-ECONOMIC CULTURES

With equal opportunities and women's rights in the constitutions , the need to achieve is hot on women's emerging entrepreneurial behaviour in the society. There is also the changing family role where women are taking the family economic burden especially when men are out of employment. They therefore become the next alternative to bringing in family income.

THE DISPLACEMENT THEORY (PERTURBATION)


Social entrepreneurship argues that entrepreneurship can occur when people are displaced , known as displacement from their regular business routines by either politics, cultural, or economic factors Give examples.

EDUCATION- DEBATE
There are contrasting hypothesis regarding the role of education in the entrepreneurial process. The first view is that formal education can act as an impediment to entrepreneurship.

Alternative is that education fosters creativity , open-mindedness, curiosity, and good interpersonal skills , all of which are valuable to business success. In addition, the level of education of owner -manager is positively related to the growth of the enterprise. Is it true ?

QUOTE

Education which does not enhance your livelihood is like a glass eye which does not see, Julius Kabarage Nyerere, 1963.