Entrepreneurship

(CMS-109)

Dr. M. Tayyeb Javed – Head ORIC
[email protected]
Office: C‐217
PABX: 3243

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Entrepreneurship and Innovation
Objectives
• Explain the process of creativity
• Describe how innovation is important as a dimension of 
entrepreneurship
• Identify major changes that create opportunities for 
entrepreneurs
• Explain the concepts of “windows” and “corridors” for new 
ventures
• Discuss popular myths of entrepreneurship and why they are 
more fantasy than fact
• Describe the main factors that lead to success for new 
ventures 2
Peter Drucker’s Framwork
“Admittedly, all new small business have 
many factors in common. But to be 
entrepreneurial, an enterprise has to have 
special characteristics over and above being 
new and small. Indeed, entrepreneurs are 
minority among new businesses. They 
create something new, some thing different; 
they change or transmute values.”
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Creativity as a Prerequisite to
Innovation
• Creativity and innovation are often used to mean same thing, 
but each has unique meaning
• Creativity is the “ability,” not the “activity,” of bringing some thing 
new into existence
• Innovation is the process of doing new things

• The distinction is important 
• Ideas have little value until they are converted into new 
products, services, or processes
• Innovation, therefore, is the transformation of creative ideas 
into useful applications, but creativity is a prerequisite to 
innovation 4
The Creative Process
• Action by itself has no meaning; it is of little value to simply 
“do things” without having inspiration and direction
• Entrepreneurs need ideas to pursue, and ideas seldom 
materialize accidently

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Five stages
1. Idea Germination
2. Preparation
3. Incubation
4. Illumination
5. verification

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Ask the Question Define the
Problem
?
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Saturation: gather information; 8
do research.
Incubation: time to think;
Let ideas “cook”. 9
“A-ha!” – a solution emerges! 10
Verification: test out the idea to
see if it works. If the idea 11
doesn't work--repeat the process!
 Invention vs Innovation

The creation of  Results in new 
Invention
something new knowledge

The transformation of 
Results in new products, 
Innovation an idea or resources into 
services, or processes
useful applications

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 When people has passed through the illumination and verification stages of creativity,
they may have become inventors, but they are not yet innovators
Elements in the Innovation
Process

Implementation Commercial 
Organizing resources
Analytical planning •To provide application
•To obtain:
•To identify: •Organization •To provide
•Materials
•Product design •Product design •Value to customers
•Technology
•Market Strategy •Manufacturing •Rewards for 
•Human resources
•Financial need •Services employees
•Capital
•Revenues for 
investors
•Satisfaction for 
founders

Transformation of creative idea into a useful application

Creativity – A nonrational process of incubating ideas allowing the subconscious mind to

Japan has singled out as more left-brain oriented than the US 14

Creative source Champion Sponsor

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Roles explained
• Creative source: The inventors or originator of the idea 
that led to the knowledge or vision of something new; 
the artist of creative endeavor
• Champion: The entrepreneur or manager who pursues 
the idea, planning its application, acquiring resources, 
and establishing its markets through persistence, 
planning, organizing, and leadership
• Sponsor: The person or organization that makes possible 
the champion’s activities and the inventor’s dreams 
through support, including finances, contracts and 
advices
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Opportunities through Change
• Entrepreneurs tend to be “strategic thinkers” who recognize 
changes and see opportunities where other do not

• By creating new ventures based on these strategic changes, 
entrepreneurs make a contribution and rewarded in terms of 
wealth and personal satisfaction

• Entrepreneurship is therefore the result of inspired strategy to 
exploit change, but first “change” has to be recognized

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Opportunities through Change…
• Scientific knowledge 
• Charles Babbage created mechanical calculating machine a 
century ago
• William Shockley won his Nobel Prize while at Bell Labs. Shockley 
left Lab with a group of young engineers to form his own 
electronics company, but it was Robert N. Noyce, one of those 
young engineers, who set the pace as the modern entrepreneur –
Intel Corporation
• Process Innovations
• Implementation processes, techniques, and methods essential to 
make knowledge useful
• Industrial Changes
• Market Changes 18
• Demographic Changes
• Social and Cultural Changes
Major Shifts in Industrial
Energy

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Market Changes
• Success of Henry Ford when he developed an inexpensive 
auto mobile. Until his Model T, most automobiles were 
luxuries. He recognized the demand and decided that a car 
built on simple principles would revolutionize the automobile 
industry.
• Domino’s Pizza was built on the single, important observation 
that a lot of people ordered pizza to take out.
• Government services are being privatized – an extraordinary 
change.
• Education – prior to WW II, Universities ware reserved for the 
upper class consumer. 
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Demographic Changes
• Demographic data are concerned with population trends, age, 
sex, and ethnic characteristics, education status and income of 
a nation’s population.
• Entrepreneurial opportunities occur whenever a gap  exist in 
services or products for groups of individuals moving into new 
stages of life cycles.

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Social and Cultural Changes
• Social changes occurred at a snail’s pace until late 18th century.  
The pace quickened a bit during the 19th century, but as we 
look back over the 20th century, social changes reached an 
unprecedented quick pace. There is no  evidence of a slow 
down as we ready ourselves for the 21st century.
• The industrial revolution stimulated changes in how people 
lived, worked , spent their money, recreated, and worshiped. 
Men began working for wages rather than as farmers or in 
government service. Sailors became merchantmen. Craftsmen 
moved  out of their shops and into factories. Adventurers put 
a side swords for plows and settled new worlds.
• In practice may entrepreneurs have found opportunities in 
such social changes. These changes opened doors for  22
entrepreneurs to create new fashions, to develop seminars, to 
establish counseling centers etc. 
Windows and Corridors
• A “Window” is a time horizon during which opportunities exist 
before something else happens to eliminate them. 
• A unique opportunity, once shown to produce wealth, will attract 
competitors, and if the business is easy to enter, the industry will 
become rapidly saturated.
• Bicylces didn’t became viable commercial products until people 
needed them as transportation. When that need occurred, 
hundreds of bicycle manufacturers rushed to take advantage of 
the “window of opportunity”.
• Literally every successful product and service has had an optimal 
period of time for commercialization. Those introduced too early 
have usually failed, and those introduced too late suffered from 
crowded markets.
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Windows and Corridors…
• The “Corridor” principle suggests that opportunities evolve 
from entrepreneurs being positioned in similar work or having 
had experience with  related  ventures so that when a window 
opens it is easy for them to move quickly into a new venture.
• William Gates of Microsoft, was first approached  by IBM in 1980 
to program an OS for the PC; Gates turned down the offer. He  
had a new software company and was “hacking” with minor 
programs  he hopped to  sell; the idea of a major software  effort 
was inconceivable.  However, he and  several  friends realized the 
opportunity and began working independently to create the MS 
DOS system.
• The corridor principal does not mean that entrepreneurs must 
first work aimlessly and wait for a twist of fate to create 
opportunities. It means that entrepreneurs who are active and  24
watching for changes are more likely to recognize 
opportunities when they occur.
Myths – Fantasies Not Facts
• Luck is for Gamblers – luck plays a role in an outcome (3M 
post‐it note, Ebony magazine). Persistence and determination 
played greater roles in success than luck
• Make or Break on First Venture – boom or bust (Too much 
distortion exists on both issues)
• Entrepreneurs are Mavericks and Misfits – Mavericks in the 
sense that they instigate change and challenge the status quo, 
but not misfits (independence, rebellious)
• Are Entrepreneurs Born or Made?

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You'll Never Hear Successful
People Say These 15 Phrases
If you want to become more successful as an entrepreneur or in 
your career, you can start by making a habit of talking and 
thinking more like the people you know or read about who are 
already successful.
Here are some phrases you’ll never hear a successful person say:
1. "We can't do that."
One thing that makes people and companies successful is the ability 
to make solving their customers’ problems and demands their main 
priority. If a need arises repeatedly, the most successful people 
learn how to solve it as quickly as they can.

Sources: http://www.entrepreneur.com/article/238537 26
Sujan Patel - Entrepreneur and Marketer, VP of Marketing at
“When I Work”
2. "I don't know how."
Instead of automatically shutting down solution‐finding, successful 
people learn what they can in order to succeed in a project or in 
their career. For example, you would never see a truly successful 
international business consultant who travels to Italy multiple times 
per year refusing to learn Italian.
3. "I don’t know what that is."
Pleading ignorance doesn’t make the problem go away. It just makes 
the asker find someone who is able to work with them to solve the 
problem. While’s it’s always good to be honest with those you 
interact with, finishing this phrase with “but I’ll find out” is a surefire 
way to become more successful.
4. "I did everything on my own."
The best people know to surround themselves with others who are 
smart, savvy and as dedicated as they are. What makes this work is 
always giving credit where it’s due, as due credit to you will always 
come back in hand. Recognize those that have helped you or made 
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an impact and you’ll continue to earn success and recognition 
yourself.
5. "That's too early."
You would never hear Benjamin Franklin or someone such as Steve
Jobs say, “that is too early for me to be there.” If there is a
networking meeting, project launch or interview opportunity at the
very beginning of the day, the most successful people do what it takes
to be there. Part of being successful is being at the right place at the
right time, no matter if you’re a morning bird or night owl.
6. "That’s too late."
Along the same lines, if you’re asked to a 9 p.m. dinner by a potential
business partner, and you can make it, definitely go. You may be tired
the next day, but the connections you will make during a small dinner
or after-hours meeting can make all the difference when it comes to
your career or next project.
7. "It's too bad we couldn't work together."
Truly hitting it off with someone can be a rare occurrence, but if you
truly connect with someone and want to work with them, find a way
to make it work. Finding people that you really enjoy communicating
with don’t come along too often, so whether it’s a case study or a new 28
business, successful people know that working with those who truly
align with your personality and interests are the path to true success.
8. "Let's catch up sometime."
Many times, this phrase is said as filler, without any true follow up.
Successful people know that if they really want to catch up with
someone, they follow up to make it happen. This also builds on the idea
that the most successful people have worked hard to build genuine
connections and relationships within their network, without any hidden
agenda. Nurturing your network means being thoughtful of others, while
keeping your relationships with them on top of your mind.
9. "I'm sorry, I'm too busy."
If an opportunity comes their way, successful people do what it takes to
make it happen. Sure, this might mean longer hours occasionally, but if
you want something to work, that is what it takes. After all, according to
Lao-Tzu: "Time is a created thing. To say ‘I don’t have time,’ is like
saying, ‘I don’t want to.’”
10. "That was all my idea."
Again, as mentioned in number four, the most successful people spread
the wealth when it comes to doling out praise from a successful project.
No idea is truly one’s own -- it’s a sum of their experiences from
interacting and building off of collaborative ideas with a team. Doling 29
out praise and encouragement is a crucial part of building a successful
company and culture.
11. "I never read books."
Tom Corley of Rich Habits found that rich people read (and listen to)
books at a much higher rate than poor people: “63 percent of wealthy
parents make their children read two or more non-fiction books a
month vs. 3 percent of poor.” Also, “63 percent of wealthy listen to
audio books during commute to work vs. 5 percent of poor people.”
Reading non-fiction (as well as fiction) can help reduce stress,
enhance creativity and boost your memory.
12. "I'm not good enough."
Part of being successful is having a high sense of self-worth. Being
yourself is one trait that promises success in business and your
personal life. Follow your true interests. What you would do in your
life if you didn’t need money?
13. "It's OK." (over and over)
Successful people know when to walk away and stop taking excuses
from others. If there is a bottleneck and something (or someone) is
preventing you from completing a project on time, build up your 30
business, or move you forward in your goals, then it’s time to set
boundaries and decide to limit your involvement.
14. "If our competitors don't have it, then we don't need it."
Copying competitors is one of the many possible deaths for
most companies. True innovation comes from the flip side:
figuring out what competitors aren’t doing and fill that niche to
answer a need in the industry.
15. "Time off is for suckers."
True success should be seen as a well-rounded approach, one
with vacations, weekends with friends and family and hours of
downtime on the weekdays. While workload varies for
everyone at times, taking vacation can make you better at your
job.
Sometimes to get to where you want to be, the best and easiest
thing to do is to simply follow the examples that others set for
you.

What phrases are you going to eliminate from your day-to-day 31