MODULE 4

ENTREPRENEURIAL DRIVERS
It refers to a set of internal and external factors that induce or influence a
person to undertake entrepreneurial activities, and thus, make the person an
entrepreneur.

"Drivers of entrepreneurship" refers to the factors that motivate and influence

individuals to start and grow businesses, encompassing personal
characteristics, external factors and opportunities like economic conditions
and societal support.
 Personal characteristics & skills

➢ Creativity and innovation

➢ Risk-taking

➢ Opportunity recognition

➢ Initiative and proactiveness

➢ Resilience and adaptability

➢ Self-motivation and drive

 External Factors & Opportunities
➢ Economic Conditions
➢ Technological Advancements
➢ Market Needs & Gaps (unmet needs)
➢ Social and Cultural Trends
➢ Government Policies and Regulations
➢ Access to Resources
➢ Globalization (The increasing interconnectedness of the global
economy)
➢ Education and Skills
• Creativity is the ability to generate new ideas.

• Innovation is the process of turning those ideas into reality (viable

solutions, commercial success or widespread use). Innovation is the
application of creativity to create a usable product or service that
adds value to an existing product or service.

• Invention is the act of creating something new (discovering new

methods and new materials).
 CREATIVITY = IDEA

INNOVATION = ACTION
• Entrepreneurs can benefit from both linear thinking (logical, step-
by-step processes) and lateral thinking (creative, open
possibilities)
• An inventor gives idea and an innovator implements the idea for
economic gain. Some individuals can be both inventor &
innovator.
• Entrepreneurial individuals gravitate toward enterprising and
creative activities.
 4 THEORIES OF CREATIVITY
• Creativity has traditionally been defined as the ability to respond
adaptively to the needs for new approaches and new products, or as
the ability to bring something new and valuable into existence
purposefully.

• Creativity should be highest when 1) an intrinsically motivated person

with 2) high domain expertise and 3) high skill in creative thinking
4) works in an environment high in supports for creativity.
 STAGES OF CREATIVITY
Creativity is a complex process. It does not come all of a sudden. It takes
time but creative ideas appear all of a sudden, like a flash of lightning. According to
graham walls (1926), there are four main stages in creativity:

• Preparation: the person in this stage tries to understand the problem. It is

crucial to discover the right problem that needs to be solved. For this, one needs to
collect all the information about the problem (elements of the problem and
their relation) that will help identify the problem, analyze it and understand it.
Further, it involves setting the goal and generating ideas towards the solution of
the problem.
• Incubation: processing of all the information gathered during the
preparation stage goes on in this stage. New paths are explored towards
new alternatives.

• Illumination: a new idea or new possibilities emerge, and the individual

is more active and conscious in this stage. She/he may also reformulate
the problem based on the illumination or inspiration obtained in this
stage.

• Verification: the decision maker verify that the solution given by the
candidate does have merit.
 CREATIVE THINKING STYLES

• Divergent thinking: the intellectual ability to think of many original, diverse

and elaborate ideas. Divergent thinking is a process in which many options
and possibilities are explored for one question or problem.

• Convergent thinking: the intellectual ability to logically evaluate, critique

and choose the best idea from a selection of ideas. Convergent thinking is
using evidence and facts to solve for one concrete answer to a problem.
 CREATIVITY

• The ability to form novel and valuable ideas or works using the
imagination.

• Products of creativity may be intangible (e.g., An idea, a scientific

theory, a literary work, a musical composition, or a joke) or a
physical object (e.g., An invention, a dish or meal, an item of jewelry,
a costume, or a painting).
 EXAMPLES OF CREATIVITY IN BUSINESS -
WHATSAPP
• Whatsapp: expensive SMS services once dominated electronic communication. Whatsapp changed
the game by introducing a secure messaging platform for anyone with a smartphone and an internet
connection. This is a great example of radical innovation.

• Chat

• Sharing of documents

• Sharing of audio files

• Sharing of video files

• Online transactions

• Scheduled messaging

• Mass messaging
 Tools for creativity and innovation

There are many powerful tools that can spark creativity and
innovation and generate, organize, and implement innovative
fresh ideas for products, services, or business models.
 Tools & Techniques for Creativity & Innovation
TOOLS AND TECHNIQUES OF CREATIVITY
Brainstorming Random Words

Five W’s and one H Brainwriting

Gallery method Storyboarding

Role playing Mind mapping

Reversals Mood boards

Biomimetics Thinking Hats

 INNOVATION
Innovation: doing new things.

Innovation is about creating value and increasing efficiency, and

therefore growing your business. “ Without innovation, new goods,
new services, and new ways of doing business would never emerge,
and most organizations would be forever stuck doing the same old
things the same old ways.”
 Sources of new ideas
➢Customers feedbacks ➢Distribution channel

➢Competitors ➢Technology

➢Economic conditions ➢Management

➢Employees ➢Government regulations

➢Suppliers ➢User behaviour

 Process of innovation

1. Idea generation (making)

2. Idea screening (test)

3. Feasibility (practically)

4. Implementation (completion)
 Idea evaluation process
1. Preliminary screening: filter ideas through basic criteria. Does the idea align with the
organization’s goals? Does it address a real problem or need.

2. Scalability and potential: evaluate the idea’s potential for growth.

3. Feasibility assessment: study technical and operational aspects of the idea, resources and
expertise required, legal and regulatory implications if any

4. Risk analysis: potential obstacles or challenges, ranging from technical failures to market
resistance, financial assessment- initial investment, ongoing expenses, breakeven

5. Execution strategy & implementation: clear path from conception to realization

6. Feedback and iteration: gather feedback, refine the idea, iterate on its design, and address
any emerging concerns.
 Generating idea and turning it into opportunities

• Opportunity recognition

• The defining act of entrepreneurship

• Need to create an environment where people are encouraged to

generate ideas

• Screen ideas to find the best opportunity

 Screening ideas
▪ Are they opportunities

▪ What important customer problem can you solve?

▪ How are you going to do it?

▪ How many customers are there that are willing to buy from you?

▪ Why can only you provide the solution?

▪ How can you defend against others?

Innovation is never easy . but it is always possible.

Step by step, project by project, small ideas need room and

time to grow. We need to see that make progress.

DIFFERENCE BETWEEN CREATIVITY AND
INNOVATION
 DATA FOR IDEATION
One of the first steps in ideation is to find insights and
opportunities based on data and analytics.

One can use data sources such as customer feedback, market

research, competitive analysis, user behaviour, and social
media to identify pain points, gaps, trends, and preferences of your
target audience.
To effectively use data for ideation, focus on identifying
insights and opportunities by analyzing customer feedback,
market research, competitive analysis, user behavior, and
social media trends to understand pain points, gaps, trends, and
preferences.
 PROBLEM-SOLUTION FIT (PSF)

• Problem-solution fit defines the relationship between the problem

you are trying to solve (through your product) and the solution. It is
about the bridge between the problem and the product (solution) you
are trying to build. The problem-solution fit is all about finding a
problem and finding different options to solve it in a resourceful
way.

• It defines if you have the right technology, talent, knowledge, and

mindset to build the solution.
 Problem-solution Fit
Ideation & Conceptualization Stage; Before building the
Stage
MVP.
Goal Find the viability of a business idea or concept

Testing ideas based on available market trends and macro

Approach
parameters
Focus Starting a business

Customer Involvement Deep involvement of early adopters

Feedback & Metrics Qualitative feedback and general perception.

Impact Sets a strong foundation for building a business

IDEATION OF THE PROTOTYPING PROCESS
5 STAGES OF DESIGN THINKING
1. Empathize: the empathy stage allows for design thinkers to gain
insight into the needs regarding the issue along with setting aside
their personal assumptions regarding it. A substantial amount of
information is gathered during the empathize stage and is carried
on to the next few stages to help define the problem and
understand how to deal with it.
1. Define: during this stage in the design thinking process, you are
putting together all the information you gained during the
empathize step. Essentially, you will analyze your data and put
them in order to better concrete the problems that your team has
defined to this point. The define stage will help your team gather
great ideas and be able to understand how to use them effectively.
3. Ideate: during this stage, design thinkers start to use the information from the
previous stages to generate logical ideas. Start to make ideas that may be “out of
the box” or perhaps just ideas that may normally skipped over when not all of
information is presented. This stage allows for an alternative way to solve
normalized problems. By the end of this phase, your team should have a few
ideas to solve the problem. It’s important during this phase that your team
should generate a lot of ideas just so you have many to choose from when
starting the next phase in the design thinking process, prototype.
• 4. Prototype: the fourth stage of design thinking is called prototype. During this stage the
team will work on creating a number of inexpensive products with specific features. This
allows for the design thinkers to investigate possible solutions to the problems that were
identified the earlier stages of the design thinking process. With each new prototype, the
team investigates a different aspects of the problem and explores how each of the
prototypes would fix the problem.

By the end of this stage, the design thinkers should have a better understanding of the
constraints the are apparent of the prototype. This is also allow for the team to the problems
that would be created by each prototype, and how they could fix the prototype to make the
prototype inherently better. From here, the team should be ready to move on to the final step
of the design thinking process, test.
5. Test: the fifth and final stage of design thinking is called test. During this stage
design thinkers test their prototypes made in stage four. They test their prototypes to
see how well they solve/handle the problem that they initially analyzed in stages one
and two. Even during this step, the team can and will make alterations and
refinements in order to make the product more polished for their needs.

• With this process, it allows for your team to go back to previous stages and revise
their information to get the best outcomes for their end product. Essentially, the
team can continue to do this until they are either solve their problem, or until they
are satisfied with their product.