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Creativity and Generating New Business Ideas

This chapter discusses creativity and generating new business ideas. It defines creativity as developing novel and useful ideas that address gaps in the market. The chapter then addresses myths about creativity and barriers to creativity. It outlines the entrepreneurial creativity process, which involves preparation, information gathering, idea generation, evaluation, implementation, and experimentation. Sources of new product or service ideas are also discussed, such as personal skills and talking to others. Methods for generating ideas like brainstorming are presented. The chapter concludes with how to initially screen ideas by categorizing and classifying them.

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Busiswa Msiphanyana
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77 views

Creativity and Generating New Business Ideas

This chapter discusses creativity and generating new business ideas. It defines creativity as developing novel and useful ideas that address gaps in the market. The chapter then addresses myths about creativity and barriers to creativity. It outlines the entrepreneurial creativity process, which involves preparation, information gathering, idea generation, evaluation, implementation, and experimentation. Sources of new product or service ideas are also discussed, such as personal skills and talking to others. Methods for generating ideas like brainstorming are presented. The chapter concludes with how to initially screen ideas by categorizing and classifying them.

Uploaded by

Busiswa Msiphanyana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 3

Creativity and generating new


business ideas
Learning outcomes
• On completion if this chapter you will be able to:
• Understand and describe creativity and how it manifests itself
• Understand the myths surrounding creativity as well as the reality
about these myths
• Identify the barriers to creativity and how it can be overcome
• Understand the creative process and its development, and describe
the entrepreneurial creativity process
• Identify and use the sources that can be utilised when identifying
new product or service ideas
• Perform the initial screening of business ideas and opportunities
Creativity defined
The process of developing and implementing ideas that are both novel
and useful and address a gap in the market.
Creativity defined (continued)
To address this gap, the entrepreneur should use various techniques
such as:
• Defining or identifying the need using analytical methods for
precise identification of the problem
• Transforming problems into opportunities

• Breaking down prior assumptions and making new connections


• Strategic assessment to predict possible future outcomes
Myths about creativity
• Creativity limited to small number of people

• Only creative people always have good ideas


• Creative people are born that way

• Analytical and creative thought are fundamentally different


• Money is a creativity motivator
Myths about creativity
(continued)
• Creativity is about making great leaps of imagination

• Competitive situations foster creativity better than cooperative


situations
• There are plenty of ideas around
• Fear forces breakthrough
Barriers to creativity
• Fear of failure

• Negative beliefs and habits

• Making assumptions
• Following rules
• Environment not willing to risk
• Lack of financial support
• Cultural barriers
The entrepreneurial creativity process
1. Preparation: analysing the problem/situation
2. Information gathering: gather as much info as possible about yourself
and the problem – keep a journal
3. Idea generation: generate possible ideas or solutions

4. Evaluation of ideas: select the best ideas


5. Implementation: involves innovation and invention
6. Experimentation: test out the most promising idea
Sources of product ideas
• When looing for a viable business opportunity, the entrepreneur
should look for:
 An idea

 An opportunity
 Where the next frontiers lie

 The process of evaluation


• To inspire
Sources of product ideas
• Personal skills, passions, imagination and talents

• Talking to family, friends or other shoppers

• Current or previous experiences

• Government assistance services for small businesses

• Mass media

• Current events
Sources of product ideas (continued)
• Visits to trade shows and exhibitions

• Internet and online research

• Identifying gaps

• Libraries

• Using creative thinking


Methods for generating new product
or service ideas
• Accumulation of knowledge

• Observation

• Brainstorming

• Nominal group technique

• Delphi technique

• Incubation of ideas
Initial screening of ideas
• Entrepreneur should do close follow-up of generated ideas

• Ensures continuous improvement of idea-generating process

• Done by:

1. Categorising potential ideas

2. Classify ideas into those that should be followed and those that should
be rejected
Initial screening – categorising
Perception of desirability
• Economic consequences
• Type of venture
• Personal preferences
• Level of support
Initial screening – categorising
(continued)
Perception of feasibility
• Resources needed
• Experience

Propensity to act
• Difference between entrepreneur and team
• Low propensity

• High propensity
Initial screening - classification
Worthwhile following
• Profitable
• Resources available and easy to acquire
• Entrepreneur and team agree
Initial screening – classification
(continued)
Reject offhand
• Not profitable
• Resources not available and difficult to acquire
• Entrepreneur and team disagree

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