Entrepreneurship, Creativity, and Innovation

• LS week 2 covers entrepreneurship, creativity, and innovation.
• Noof Al Wahaibi is the presenter.

Assessments to Get 100%

• Quiz (Individual): Worth 20%, it assesses understanding of core concepts.
• Business Plan (Group + Individual): Worth 40%, this collaborative project focuses on developing a full business plan.
• Pitch Presentation (Group + Individual): Worth 20%, this is presenting the business idea to a panel based on the business plan.
• Business Model Canvas (Group + Individual): Worth 10%, this is a visual representation of the business model.
• Active Participation (Individual): Worth 10%, engage in class discussions, group work, and homework.

Business Model Canvas Grade Breakdown

• The Business Model Canvas comprises 10% of the final grade.

Pitch Presentation Grade Breakdown

• Group Grade (Shared): 70% of the pitch presentation score comes from the group's content, slides, delivery, etc.
• Individual Grade (Q&A and Peer Evaluation): 30% comes from individual performance during Q&A and evaluations by group members.
• Teams should have 3 members.

Business Plan Grade Breakdown

• The Business Plan comprises 40% of the final grade.
• Group Work: 60% of the business plan grade is based on the plan's overall quality and awarded equally to the group.
• Individual Work: 40% reflects each member's contribution to the final business plan; write your name in the section you work on
• The maximum number of team members is 7-8.

Pitch Presentation Grade Breakdown

• The Pitch Presentation comprises 20% of the final grade.
• Group Grade (Shared): 70% of the pitch presentation score comes from the group's content, slides, delivery, etc.
• Individual Grade (Q&A and Peer Evaluation): 30% of the score comes from the individual's performance during the Q&A and their group members evaluations.
• At least 2 team members must present, and teams can have a maximum of 7-8 members.

Learning Objectives

• Define entrepreneurship.
• State the key elements of entrepreneurship.
• Explain entrepreneurship's role in economic growth.
• Explain how entrepreneurial opportunities are formed.
• List the roles and characteristics of entrepreneurs.
• Define the risks of entrepreneurship.

Definition of Entrepreneurship

• It describes new venture creation by an individual.
• It identifies a venture idea, development, assembles resources and creates a new business venture.
• It involves identifying new opportunities and converting them into marketable products or services.

Key Elements of Entrepreneurship

• Entrepreneur: Possesses creativity, risk-taking ability, and leadership skills.
• Market Opportunity: Identifies unmet needs or problems.
• Adequate Resources: Includes sufficient capital, skilled personnel, and physical assets.
• Business Organization: Has defined structure, roles, and processes.
• Favorable Environment: Provides supportive economic, regulatory, and institutional conditions.

Key Elements of Opportunity

• Opportunity is recognized, evaluated, and exploited by the entrepreneur, who focuses, attracts and combines resources, and builds and manages an organization.

Entrepreneurial Perception

• Entrepreneurs perceive, pursue, and exploit opportunities.
• Active search, entrepreneurial alertness, prior knowledge, and social networks influence the way entrepreneurs perceive and pursue opportunities.

Core of the Entrepreneurial Process

• It is based around Opportunity Awareness: Entrepreneurs find and take advantage of opportunities.
• An opportunity is a situation where a new product, service, or process can be introduced and sold at greater than its cost of production.

Factors Affecting Opportunity Pursuit

• Active Search: Always looking for new opportunities.
• Entrepreneurial Alertness: Being aware of chances.
• Prior Knowledge: Past experiences help in spotting opportunities.
• Social Networks: Connections with others provide help and information.

Resources

• Financial: Money is needed to start and run the business.
• Physical: Equipment and buildings are needed for operations.
• Human: Skills and knowledge of the people are vital.
• Technological: Tools and technology are used in the business.
• Social: Relationships and networks offer support.
• Organizational: Structure and processes are needed to help the business run.

Organization

• Entrepreneurship takes place in diverse environments.
• New Start-ups: New businesses start from scratch.
• Corporate Ventures: Projects are formed within large companies.
• Franchises: Businesses operate under a brand name.
• Joint Ventures: Partnerships are between two or more businesses.
• Business Acquisitions: Buying existing businesses.

Environment

• Factors that influence the environment:
  • Population Density: The number of businesses in an area.
  • Relationships Between Businesses: The strength of ties between organizations.
  • Societal Factors: Cultural Norms and Values, and Government Policies.

The Role of Entrepreneurship in Economic Growth and Development.

• It drives economic growth by creating new businesses and jobs.
• Creative Destruction leads to both the creation of new products/services and the loss of old ones.
• New businesses can meet demands and introduce innovations, but may also replace existing products.

The Impact of Environment

• The economic performance of established companies is affected by national conditions, including cultural values, government policies, and support for new ventures.

The Discovery Perspective

• It involves entrepreneurs seeing opportunities created by inefficiencies in resource allocation, and competitive imperfections in markets or industries.
• This perspective uses a causal approach to entrepreneurship.
• Opportunities already exist, like hidden treasures.
• Entrepreneurs spot opportunities that others might not notice.

The Role of the Entrepreneur in the Discovery Perspective

• Recognize opportunities, evaluate opportunities, identify the opportunity, establish goals and plan, seek resources, develop solution to meet perceived needs, and enter the commercial market space.
• Market feedback leads to adaptation.

The Creation Perspective

• It is based on entrepreneurs' creations.
• Entrepreneurs look for new and better ways to make products or offer services.
• As the business grows, stakeholders get involved, bringing fresh ideas and resources. Opportunities are created through actions and experimenting.

Discovery versus Creation

• In Discovery Theory, entrepreneurs are like explorers, finding what already exists.
• In Creation Theory, they are like inventors, making new things that didn’t exist before.

Roles of Entrepreneurs

• Risk Bearer: Takes chances by investing in a new business idea, knowing it could succeed or fail.
• Arbitrageur: Finds opportunities by buying low and selling high, making smart decisions
• Innovator: Comes up with new ideas, products, or ways to do things better.
• Coordinator of Scarce Resources: Organizes and uses resources (money, time, and people) wisely.

Key Traits of Successful Entrepreneurs

• Need for Achievement: Strong desire to accomplish goals.
• Internal Locus of Control: The belief in controlling their success rather than relying on luck.
• Risk-Taking Propensity: Willingness to take calculated risks.

Financial Risks

• Investing own money.
• Risks can be reduced by borrowing money from banks, or investors.
• A good legal setup can protect from financial loss.

Career Risks

• Business failure.
• Have a backup plan.
• Starting a business part-time can lower this risk.

Social Risks

• Lack of time for family and friends.
• Involve family to avoid conflicts.
• Failure not being an option.

Health Risks

• Stress and mental health.
• Having trouble balancing work and personal life.
• Make sure you're healthy enough to handle challenges.

Homework

• Create a mind map:
  • Define entrepreneurship in the center.
  • Branch out to include the key elements.
  • roles and characteristics of entrepreneurs
  • advantages of a career in entrepreneurship
  • risks of a career in entrepreneurship