ENTREPRENEURSHIP

Entrepreneurship, Creativity and Innovation

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 Outcomes

• Historical context of entrepreneurship

• Role of creativity in entrepreneurial process
• Creativity, invention and innovation
• Overcome mental blocks and barriers to creative thinking

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Discussion

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 Definition – Entrepreneurship

Richard Cantillon (168? – 1734)

an Irish-French economist
author of Essai sur la Nature du Commerce en Général
(Essay on the Nature of Trade in General)
successful banker and merchant at a young age

Entrepreneur:
• who pursues the profits from buying at a lower price than
they expect to sell under conditions of uncertainty

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 Definition – Entrepreneurship

Jean-Baptiste Say (1767 – 1832)

a French economist and businessman
editor of a periodical La Decade philosophique, litteraire, et politique, which
expounded the doctrines of Adam Smith

Entrepreneur:
• who unites all means of production
• who successfully deals with financial markets, raw material
market, production plant, equipment, labor and premises
• who is aware of legislation
• who has problem solving abilities to overcome all challenges and
unanticipated problems

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 Definition - Entrepreneurship

Joseph Schumpeter (1883 – 1950)

an Austrian American economist and political scientist
Finance Minister of Austria in 1919
professor at Harvard University

Entrepreneur:
• who carries out new combinations
• once the idea is built up, that individual is no longer an
entrepreneur

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 Definition - Entrepreneurship

Harvey Leibenstein (1922 – 1994)

a Ukrainian-born American Jewish economist

Entrepreneur:
• who is able to coordinate many inputs in order to produce
output
• who is able to spot opportunities in the market earlier than
the others – gap-filling

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 Discussion

1. Any risk taker or businessperson is an entrepreneur.

2. Entrepreneurs are reactive.
3. Entrepreneurs cause economic development through change.

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Insights of Schumpeter’s theory

The nature of change could be

gradual

discrete

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Gradual change vs. discrete change

http://phim3s.net/phim-bo/nghia-nang-tinh-
tham_6623/xem-phim/

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 Schumpeter’s lateral thinking concept

lateral thinking == thinking out of the box

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 Lateral thinking

How many matches are there to lead to a champion in a single knockout

competition?

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 Henry Ford case study

See external material 2.1 – Henry Ford case study

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 Creative destruction process

Creative destruction – the process of

industrial mutation that incessantly
revolutionizes the economic structure
from within, incessantly destroying
the old one, incessantly creating a new
one.

A successful entrepreneur is the individual who

breaks down the logjam of resistance and enables a
wave of innovation or paradigm shifts to occur that
will often cause the replacement of an existing
technology with a new one.

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 Catalytic entrepreneur vs. allocating entrepreneur

• Catalytic entrepreneurs create new production possibilities,

ideas, and concepts.
(Schumpeter)

• Allocating entrepreneurs observe the changes in conditions

and are alert to the opportunities they present. Put the new
ideas into practice.
(Austrian School of Economics)

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 Definition – Creativity

creativity
Latin: creare == make
Greek: kreinein == fulfill

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 Creativity

Looking above the obvious

New
Unimaginable
Unexpected

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 Creativity

Surprise
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 Where does creativity come from?

• Divine inspiration
• Serendipity
• Contrived luck
• Determinism
• Learning processes

https://www.youtube.com/watch?v=LB5utwRnfH4
https://www.youtube.com/watch?v=ig4G5WbOMLc
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 A condition that is conducive to creativity

https://www.youtube.com/watch?v=LB5utwRnfH4

“In the fields of observation,

chance favors only the mind that
is prepared.”
(Louis Pasteur)

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 Definition – Invention

an object, process, or technique which displays an element of novelty

something that has never been made before, or the process of

creating something that has never been made before

(Cambridge dictionary)

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 Definition - Innovation

the successful exploitation of new ideas

(Department of Trade and Industry, UK)

the use of a new idea or method

(Cambridge dictionary)

https://www.youtube.com/watch?v=7jb1dzfy8J4

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Difference – Invention and Innovation

vs.

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 Common traits of
inventors, innovators and entrepreneurs

See external material 2.2 – Self assessment

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 Epic failure to creativity

• False assumption barrier

• Learned habits barriers
• Attitude barriers

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 False assumption barrier

• We are not creative

• An intelligent mind is a good thinker.
• Play is frivolous.

 Should we just play around (meaning no need to study, yeah!!!)

 With creative people. Let them mentor us.

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 Learned habits barriers

• There is only ONE right answer.

• Looking at a problem in isolation.
• Following the rules.

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 Attitude barriers

• Negative, pessimistic thinking

• Risk avoidance or the fear of failure or rejection

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Exercise

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 Exercise

Sit in group.
Tell your friend one of the most crazy/silly/funny ideas you have
ever thought of.
Get feedback from group mates.
Jot down the ideas.

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 Exercise

1. In a large box, there are six boxes, each of which

contains there small boxes. How many boxes are there in
all?

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 Exercise

2. Two cities are exactly 100 miles apart. Charley leaves City
A driving at 30mph and Bertha leaves City B 30 minutes
later driving 60mph. Who will be closer to City A when
they meet?

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 Exercise

3. A man walked into a hardware store and priced certain

items. He was told they were 25 cents each. He replied,
“I would like one hundred, please.” It was 75 cents for
the whole purchase. What did that man buy?

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 Exercise

4. A boy and a girl born on the same day of the same year
with the same parents are not twins. How is this
possible?

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 Exercise

5. How do you keep fish from smelling?

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 Exercise

6. What has a neck, without a head but wears a cap?

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 Exercise

6. How many times can you take 3 from 25?

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 Exercise

7. What is as big as an elephant but weighs nothing?

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 Exercise

8. How many letters are there in the alphabets?

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 Exercise

9. A boy fell off a 100 foot ladder. But he did not get hurt.
Why not?

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 Exercise

10. In which case does Friday come before Thursday?

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 Exercise

11. What do you sit on, sleep on, and brush your teeth with?

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 Exercise

12. How could you feed one hundred people at the same
time with one spoon?

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Exercise

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