Entrepreneurship Creativity and Innovation PDF

Entrepreneurship Creativity and Innovation Chapter 1 Entrepreneurship: An Introduction Chapter 1: Learning Objectives By completing this chapter, you should be able to: 1. Understand the concept of entrepreneurship. 2. Discuss three main reasons people decide to become entr...

Entrepreneurship Creativity and Innovation Chapter 1 Entrepreneurship: An Introduction Chapter 1: Learning Objectives By completing this chapter, you should be able to: 1. Understand the concept of entrepreneurship. 2. Discuss three main reasons people decide to become entrepreneurs. 3. Primary Characteristics of Successful entrepreneurs 4. Skills required to be an innovative entrepreneur 5. Recognize the misconceptions about entrepreneurship. 6. Highlight the importance of entrepreneurship and its effect on economy. 7. Classify type of business, enterprise sources and types of business ownership 8. Highlight Oman vision 2040 and the pillars for entrepreneurship. 9. Explore the global trends in entrepreneurship.  Understand the Concept of Entrepreneurship  The process of creating, launching and running a new business venture.  Entrepreneurship involves identifying a market opportunity, developing a product or service that meets customer needs, acquiring resources, building a team, and managing risks and uncertainties.  Understand the Concept of Entrepreneurship In simple terms: “entrepreneurship is the art of turning an idea into a business” (Barringer & Ireland, 2019, p. 32) Understand the Concept of Entrepreneurship  Entrepreneurship is the process by which individuals pursue opportunities without regard to resources they currently control for the purpose of exploiting future goods and services. – The art of turning ideas into a business.  An entrepreneur is the person who identifies opportunities and turns useful ideas into practice. – the founder of the venture. (Pg. 32) https://www.entrepreneur.com/magazine/entrepreneur/2018/11  Understand the Concept of Entrepreneurship Entrepreneurship is often associated with innovation, creativity, and social impact. Understand the Concept of Entrepreneurship Innovation is the process of creating, Creativity is the process of generating a something new, which is central to the novel or useful idea. (pg. 88) entrepreneurial process. (ability to generate new ideas) (Doing something new) (pg.50) READ: Importance of Creativity & Innovation in Entrepreneurship 2023 by MARK TALMAGE-ROSTRO (2023) LINK:HTTPS://WWW.NEXFORD.EDU/INSIGHTS/CREATIVITY-INNOVATION-IN-ENTREPRENEURSHIP  Why Do People Become Entrepreneurs?  Be their own boss  Pursue their own ideas  Pursue financial rewards (pg. 33- 34)  Examples of successful Entrepreneurs ‣ *Bill Gates, one of the most well-known American technology entrepreneurs, is the fourth-richest person in the world with a net worth of over $133 billion as of Dec. 5, 2021. CHAPTER 1. ENTREPRENURSHIP Bloomberg. "Bloomberg Billionaire Index  Examples of Successful Omani Entrepreneurs Mr. Saif Al Mujaini- Founder of KidSity Oman https://www.google.com/imgres?imgurl=https%3A%2F%2Fwww.kidsity.net%2Fweb%2Fimage%2Fwebsite%2F1%2Flogo%3Funique %3D025874a&tbnid=oLgTCCLoWD_IZM&vet=12ahUKEwjEk8fY6KmBAxVCNuwKHVDSDxEQMygAegQIARBG..i&imgrefurl=https%3A%2F%2Fwww.kidsity.net %2F&docid=0Gdrx_KmgmXKYM&w=767&h=1083&q=kidcity%20logo%20oman&ved=2ahUKEwjEk8fY6KmBAxVCNuwKHVDSDxEQMygAegQIARBG CHAPTER 1. ENTREPRENURSHIP https://thawani.om/  Examples of Successful Omani Entrepreneurs Majid Al Amri- Founder & CEO at Thawani VIDEO LINK: https://youtu.be/siUgEYN2TcY CHAPTER 1. ENTREPRENURSHIP https://www.thearabianstories.com/2020/10/29/meet-the-man-who-creates-omans-first-e-payment-app/ https://thawani.om/ https://www.google.co.in/search? sca_esv=566489692&sxsrf=AM9HkKlNPt_4noT8n5673OFc7sDhN5Y7sg:1695096843799&q=gk+care er+counselling&tbm=isch&source=lnms&sa=X&ved=2ahUKEwi04O_p57WBAxWCfKQEHWA1AFMQ0 pQJegQIDBAB&biw=1536&bih=747&dpr=1.25#imgrc=3LkGYIo33KONTM Four Primary Characteristics of successful entrepreneurs FIGURE 1.1 Four Primary Characteristics of Successful Entrepreneurs Page 36 Four Primary Characteristics of Successful Entrepreneurs  1- Passion for their business it’s the passion for an idea that gets a business going and keeps it going when times are tough. (pg. 37) Four Primary Characteristics of Successful Entrepreneurs 2- Product/ customer focus none of the business functions (management, marketing, finance, etc) makes any difference if a firm does not have good products with the capability to satisfy customers. (pg. 38) https://www.callcentrehelper.com/exceptional-customer-service-quotes-117771.htm  Four Primary Characteristics of Successful Entrepreneurs  Tenacity (grip) despite failure: the ability to persevere through setbacks and failures, obviously because entrepreneurs are typically trying something new. Steve Jobs, the Co-founder of Apple https://www.pinterest.com/pin/309622543103522585/  Four Primary Characteristics of Successful Entrepreneurs  Execution Intelligence: the ability to fashion a solid idea into a viable business is a key characteristic of successful entrepreneurs. Jeff Bezos, the founder of Amazon.com, “Ideas are easy. It’s execution that’s hard” Other Characteristics of Successful Entrepreneurs  LINK: https://online.hbs.edu/blog/post/c haracteristics-of-successful-entrep reneurs  Watch Video: https://www.youtube.com/watch?v =-sQeREfZY-8  7 Essential Skills You Need to Be an Innovative Entrepreneur  “Unlike personality traits, entrepreneurship and innovation skills can be learned and practiced.” 1. Basic Financial Skills: 2. Networking: 3. The Ability to Accept and Act on Feedback 4. Pattern Recognition 5. Strategic Thinking 6. Negotiation 7. A Growth Mindset LINK: https://online.hbs.edu/Documents/so-you-want-to-be-an-entrepr eneur.pdf  Common Myths About Entrepreneurship  Entrepreneurs Are Born, Not Made  Entrepreneurs take lots of high risk.  Entrepreneurs Are Motivated Primarily by Money  Entrepreneurs Should Be Young and Energetic  Entrepreneurs Love the Spotlight (Pg. 43-45) MYTHS ‣ MYTH 1 : ENTERPRENURES ARE BORN NOT MADE !!!  Are they Made OR Born ???? Watch this to know : ‣ https://www.youtube.com/watch?v=tStG5oTPNzU ‣ https://www.youtube.com/watch?v=rsnyc0CNbkw CHAPTER 1. ENTREPRENURSHIP MYTHS ‣ MYTH 2 : Entrepreneurs are take lots of high risk.  Lest discuss that !!  Entrepreneurs take some kind of risk but usually they calculate risks rather than taking blind risks. CHAPTER 1. ENTREPRENURSHIP MYTHS Myth 3 : Entrepreneurs are motivated primarily by money.  It is naïve to think that entrepreneurs don’t seek financial rewards.!!!  But money is rarely the primary reason entrepreneurs start new firms. Watch this https://www.youtube.com/watch?v=ZC0aJlslgYM CHAPTER 1. ENTREPRENURSHIP  MYTHS Myth 4: Entrepreneurs should be Young and Energetic. What do you think?? Check this out.. https://www.youtube.com/watch?v=h89uOvUDVO4 CHAPTER 1. ENTREPRENURSHIP MYTHS ‣ MYTH 1 : ENTERPRENURES ARE BORN NOT MADE !!!  Are they Made OR Born ???? Watch this to know : ‣ https://www.youtube.com/watch?v=tStG5oTPNzU ‣ https://www.youtube.com/watch?v=rsnyc0CNbkw CHAPTER 1. ENTREPRENURSHIP  ENTREPRENEURSHIP VS. INTRAPRENEURSHIP: Entrepreneurship Intrapreneurship The process of creating and managing a new The entrepreneurial activities that take place venture or business from scratch within existing organizations Entrepreneurs: are individuals who take the Intrapreneurs are employees who exhibit an initiative to identify opportunities, develop entrepreneurial mindset & drive innovation innovative ideas, and establish new ventures. and change within their organization. Entrepreneurs: assume the risks and Intrapreneurs identify opportunities for responsibilities associated with starting and growth, develop new products or services, growing a business. and implement innovative strategies within the established organizational structure. Importance of Entrepreneurship and its Effect on Economy. Job creation and economic growth:  “Small businesses create a substantial number of new jobs”  A powerful catalyst for job creation  As entrepreneurs establish new ventures, they often require a workforce to support their operations, resulting in job opportunities for individuals in the economy. READ ARTICLE : Entrepreneurship Impact on Economic Growth in Emerging Countries, Link: https://cberuk.com/cdn/conference_proceedings/conference_40058.pdf REF: Zaki, I. M., & Rashid, N. H. (2016). Entrepreneurship impact on economic growth in emerging countries. The Business & Management Review, 7(2), 31.  Importance of Entrepreneurship and its Effect on Economy. Innovation and technological advancements: Entrepreneurs are at the forefront of innovation and technological advancements  READ ARTICLE : ‘Smashing it’: How user entrepreneurs drive innovation in esports communities  The study explores how user entrepreneurs drive innovation specifically in the case of game sports.  This study contributes to the understanding of the interdependence between user- and environmental-specific factors of user entrepreneurship that enable innovation within communities  REF: Koch, N., Pongratz, S., McCauley, B., & Achtenhagen, L. (2020). ‘Smashing it’: how user entrepreneurs drive innovation in esports communities. International Journal of Esports, 1(1).  Link: https://www.ijesports.org/article/23/html  Importance of Entrepreneurship and its Effect on Economy. Contribution to wealth creation and poverty alleviation:  Article: Entrepreneurship and poverty reduction: A case study of Yiwu, China  Reference: Si, S., Yu, X., Wu, A., Chen, S., Chen, S., & Su, Y. (2015). Entrepreneurship and poverty reduction: A case study of Yiwu, China. Asia Pacific Journal of Management, 32, 119-143.  Link: https://libenc.com/wp-content/uploads/2020/11/Steven-Si-Xuebao-Yu-Aiqi-Wu-Sh ouming-Chen-Poduzetnistvo-i-smanjenje-siromastva-Studija-slucaja-Yive-u-Kini- 8.pdf  Importance of Entrepreneurship and its Effect on Economy. Stimulating competition and market dynamics  Encouraging competition and improving the dynamics of the market, stimulating the opportunity to create better, valued and meaningful products, services and solutions that contributes to society at large.  Types of Start Up Firms FIGURE 1.2 Types of Start-Up Firms Pg. 45  Types of Start Up Firms FIGURE 1.2 Types of Start-Up Firms retail merchandise, for example, or a service blogging, Microsoft, Google like accounting or photography, writing, teaching, cooking, or Pg. 45 Most small hairstyling. training. businesses are of this type.  Choosing a Form of a Business Organization 1. Sole proprietorship 2. Partnerships 3. Corporations 4. Limited Liability Company  (Pg. 277-285)  Types Of Business Ownership: Sole Proprietorship Sole (One) proprietorship:  Individual entrepreneurs who start business on their own,  The person and the business are essentially the same.  The most common type of business.  The owner maintains complete control over the business  The owner is the debts and legal liabilities.  Discuss the advantages and disadvantages of this form-  Pg. 278-279 Types Of Business Ownership: Partnerships Partnerships  Consists of two or more people who share the assets, liabilities, and profits of a business.  The business is not dependent on a single person for its survival and success.  A partnership agreement, a legal document that is similar to a founders’ agreement.  The agreement details the responsibilities and the ownership shares of the partners involved with an organization. Types Of Business Ownership: Partnerships  There are two main kinds of partnerships, general partnerships and limited partnerships. 1. A general partnership, all partners have unlimited personal liability for business debts. 2. In contrast, a limited partnership has at least one general partner who is fully liable plus one or more limited partners who are liable only for the amount of money they invest in the partnership. Advantages and Disadvantages: pg.280  Types Of Business Ownership: Corporations Corporations :  Corporations are recommended for entrepreneurs who plan to conduct a large-scale enterprise.  Corporations are divided into shares or stocks, which are owned by one, a few or many people known as shareholders. Corporation has a separate legal entity and is legally considered to be separate from its shareholders. Shareholders are not responsible for the debts of the corporation, unless they have personally guaranteed them.  Corporations can more easily obtain investment, raise capital by selling stock, and survive a change of ownership. Their potential for growth is unlimited. However, corporations are more complex and expensive to set up than other forms of business and are usually subject to a higher level of government regulation.  Types Of Business Ownership: LLC Limited Liability Company (LLC)  It is a popular choice for start-up firms  All partners enjoy limited liability.  An LLC must be a private business—it cannot be publicly traded  The profits and losses of the business may be allocated to the members any way they choose.  Members are liable for the debts and obligations of the business only up to the amount of their investment.  The number of shareholders is unlimited.  Setting up and maintaining one is more difficult and expensive.  Oman’s Government & Entrepreneurship Support  "We have placed youth at the forefront of our government’s concerns,“  "We are resolved to lend them our support and encourage their entrepreneurship programs,“  "We will offer necessary support and incentives to small and medium enterprises, given their vital role in stimulating economic activity and employment opportunities.“ His Majesty Sultan Hitham Oman's Sultan Haitham promises support for youth in anniversary address (thenationalnews.com)  The participatory approach of the future vision “Oman 2040” The vision is based on four pillars: 1. People and Society 2. Economy and Development 3. Governance and Institutional Performance 4. Sustainable Environment oman2040-en.pdf  Classifications of Small & Medium Enterprises in Oman As per the SMEs Development Authority, the classifications of small and medium enterprises take three shapes: Medium Enterprises Small Enterprises Micro Enterprises SME Development Authority  Classifications of Small & Medium Enterprises in Oman Medium Enterprises Small Enterprises Micro Enterprises Number of Employees Annual Revenue From OMR From OMR Below 1,25,000 150,000 to OMR to 1,250,000 150,000 5,000,000  Commercial Companies Forms in Oman  As per the Commercial Companies Law in Oman, commercial companies must adopt one of the following forms: 1. General Partnership : 2. Limited Partnership : 3. Joint Venture : 4. Joint Stock Company (public / closed). : 5. Holding Company : 6. Limited Liability Company 7. One-Person Company : NewCommercialCompaniesLawEn.pdf (cma.gov.om )  Global Trends READ Blog Published in on the World Economic Forum website : Six trends in global entrepreneurship By Sreevas Sahasranamam - Posted on 17 March 2022 1. Positive entrepreneurial sentiment on opportunities suggests global recovery 2. Entrepreneurial activity rates are still lower in most countries compared to pre-pandemic 3. There is a rising trend of low-growth entrepreneurial activity 4. There is a paradox between perceiving it as easy to start a business and intending to do so. 5. Digitalization is rising among low-income countries and new entrepreneurs 6. Entrepreneurship education in school continues to fail. Link: https://www.sbs.strath.ac.uk/blogs/SBS/post.aspx?id=1479  Reminder: Core Assessments of this Course  Mid Exam 20%  Concept Board and Concept Statement 15%  Prototype 15%  Business Model Canvas Presentation 15%  Business Plan 35%  Review Questions  Define the term.  Compare between individual Entrepreneur & Entreprenuership  Discuss how entrepreneurship add values to the economy of the country.  Explain how entrepreneur differ from business owner.  Classify the types of business in Sultanate of Oman based on SMEs.  Reflect how entrepreneur can contribute to achieve Oman Vision 2040.  References & Sources Barringer, B. R., & Ireland, R. D. (2020). Entrepreneurship: Successfully Launching New Ventures. [Pearson]. Koch, N., Pongratz, S., McCauley, B., & Achtenhagen, L. (2020). ‘Smashing it’: how user entrepreneurs drive innovation in esports communities. International Journal of Esports, 1(1). Link: https://www.ijesports.org/article/23/html Si, S., Yu, X., Wu, A., Chen, S., Chen, S., & Su, Y. (2015). Entrepreneurship and poverty reduction: A case study of Yiwu, China. Asia Pacific Journal of Management, 32, 119-143. Link: https://libenc.com/wp-content/uploads/2020/11/Steven-Si-Xuebao-Yu-Aiqi-Wu-Shouming-Chen-Poduz etnistvo-i-smanjenje-siromastva-Studija-slucaja-Yive-u-Kini-8.pdf HTTPS://WWW.NEXFORD.EDU/INSIGHTS/CREATIVITY-INNOVATION-IN-ENTREPRENEURSHIP "Bloomberg Billionaire Index https://www.google.com/imgres?imgurl=https%3A%2F%2Fwww.kidsity.net%2Fweb %2Fimage%2Fwebsite%2F1%2Flogo%3Funique %3D025874a&tbnid=oLgTCCLoWD_IZM&vet=12ahUKEwjEk8fY6KmBAxVCNuwKHVDSDx EQMygAegQIARBG..i&imgrefurl=https%3A%2F%2Fwww.kidsity.net %2F&docid=0Gdrx_KmgmXKYM&w=767&h=1083&q=kidcity%20logo %20oman&ved=2ahUKEwjEk8fY6KmBAxVCNuwKHVDSDxEQMygAegQIARBG https://youtu.be/siUgEYN2TcY https://online.hbs.edu/blog/post/characteristics-of-successful-entrepreneurs  References & Sources https://www.youtube.com/watch?v=-sQeREfZY-8 https://online.hbs.edu/Documents/so-you-want-to-be-an-entrepreneur.pdf https://www.youtube.com/watch?v=tStG5oTPNzU https://www.youtube.com/watch?v=rsnyc0CNbkw https://www.youtube.com/watch?v=ZC0aJlslgYM https://www.youtube.com/watch?v=h89uOvUDVO4 https://www.youtube.com/watch?v=tStG5oTPNzU https://www.youtube.com/watch?v=rsnyc0CNbkw https://cberuk.com/cdn/conference_proceedings/conference_40058.pdf Oman's Sultan Haitham promises support for youth in anniversary address (thenationaln ews.com) oman2040-en.pdf SME Development Authority NewCommercialCompaniesLawEn.pdf (cma.gov.om)  Entrepreneurship Creativity and Innovation For further clarifications and queries please contact your lecturer Revisit Chapter 1: Lecture Notes