Chapter 1 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 entrepreneur...

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. Prima Characteristics of Successful entrepreneurs 4. Skills required to be an innovative entrepreneur 5. Recognize the misconceptions about entrepreneurship. 6. Highlight the impo ance of entrepreneurship and its e ect on economy. 7. Classify ownership type of business, enterprise sources and types of business 8. Highlight Oman vision 2040 and the pillars for entrepreneurship. 9. Explore the global trends in entrepreneurship.  Understand the Concept of Entrepreneurship  Tlaunching he pro cesand s of creating, running a new business venture.  Entrepreneurship involves identifying developing aamarket oppor product or t serunity, v i ce that meets acquiring customer resources, needs, building a team, and unce ainties.managing risks and  Understand the Concept of Entrepreneurship In simple terms: “entrepreneurship is the ar tof turning an idea into a business( ” Barringer & Ireland, 2019, p. 32) Understand the Concept of Entrepreneurship  Entrepreneurship is the process by which individuals pursue oppor tunities without regard to resources they currently control for the purpose of exploiting future goods and se ices. – e a of turning ideas into a business.  An entrepreneur is the person who identif ies oppor tunities 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 Creativity is the process of creating, something new, which is generating a novel or useful idea. (pg. central to the entrepreneurial (ability 88) to generate new ideas) process. (Doing something new) (pg.50) READ: Impor tance 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 nancial rewards (pg. 33- 34)  Examples of successful Entrepreneurs ‣ *Bill Gates, one of the most well-known American technology entrepreneurs, is the fou h-richest person in the world with a net wo h of over $133 billion as of Dec. 5, 2021. Bloomberg. "Bloomberg Billionaire Index C HA P T E R 1. E NT RE P RE NURS HI P  Examples of Successful Omani Entrepreneurs Mr. Saif AlKidSity Mujaini- Founder Oman of https://www.google.com/imgres? imgurl=https%3A%2F%2Fwww.k idsity.net%2Fweb%2Fimage%2Fwebsite%2F1%2Flogo%3Funique%3D025874a&tbnid=oLgTCCLoWD_IZM&vet=12ahUKEwjEk8fY6KmBAxVCNuwKHVDSDxEQMygAegQIA C HA P T E R 1. E NT RE P RE NURS HI P RBG..i& imgrefurl=https%3A%2F%2Fwww.k idsity.net%2F&docid=0Gd _KmgmXKYM&w=767&h=1083&q=kidcity%20logo%20oman&ved=2ahUKEwjEk8fY6KmBAxVCNuwKHVDSDxEQMygAegQIARBG https://thawani.om/  Examples of Successful Omani Entrepreneurs Majid Al Amri- Founder & CEO at awani VIDEO LINK: https://youtu.be/siUgEYN2TcY C HA P T E R 1. E NT RE P RE NURS HI P https://www.thearabianstories.com/2020/10/29/meet-the-man-who-creates-omans- rst-e-payment-app/ https://thawani.om/ https://www.google.co.in/search? sca_esv=566489692&sxs =AM9HkKlNPt_4noT8n5673OFc7sDhN5Y7sg:1695096843799&q=gk+career+counselling&tbm=i sch&source=lnms&sa=X&ved=2ahUKEwi04O_p57WBAxWCfKQEHWA1AFMQ0pQJegQID BAB&biw=1536&bih=747&dpr=1.2 5#imgrc=3LkGYIo33KONTM Four Prima Characteristics of successful entrepreneurs FIGURE 1.1 Four Prima Characteristics of Successful Entrepreneurs Page 36 Four Prima 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 Prima Characteristics of Successful Entrepreneurs 2- Product/ customer focus none of the business functions (management, marketing, nance, etc) makes any di erence if a rm does not have good products with the capability to satisfy customers. (pg. 38) https://www.callcentrehelper.com/exceptional-customer-se ice-quotes-117771.htm  Four Prima Characteristics of Successful Entrepreneurs  Tenacity (grip) despite failure: the ability to persevere through setbacks and failures, obviously because entrepreneurs are typically t ing something new. Steve Jobs, the Co-founder of Apple https://www.pinterest.com/pin/309622543103522585/  Four Prima Characteristics of Successful Entrepreneurs  Execution Intelligence: the ability to fashion a solid idea into a viable business is a key characteristic of successful entrepreneurs. Je 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/characteri stics-of-successful-entrepreneurs  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. e Ability to Accept and Act on Feedback 4. Pattern Recognition 5. Strategic inking 6. Negotiation 7. A Growth Mindset LINK: https://online.hbs.edu/Documents/so-you-want-to-be-an- entrepreneur.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 C HA P T E R 1. E NT RE P RE NURS HI P 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. C HA P T E R 1. E NT RE P RE NURS HI P MYTHS Myth 3 : Entrepreneurs are motivated primarily by money.  It is naïve to think that entrepreneurs don’t seek nancial rewards.!!!  But money is rarely the prima reason entrepreneurs sta new rms. Watch this https://www.youtube.com/watch?v=ZC0aJlslgYM C HA P T E R 1. E NT RE P RE NURS HI P  MYTHS Myth 4: Entrepreneurs should be Young and Energetic. What do you think?? Check this out.. https://www.youtube.com/watch?v=h89uOvUDVO4 C HA P T E R 1. E NT RE P RE NURS HI P 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 C HA P T E R 1. E NT RE P RE NURS HI P  ENTREPRENEURSHIP VS. INTRAPRENEURSHIP: Entrepreneurship Intrapreneurship T he process of creating and managing a T he entrepreneurial activities that take new venture or business from scratch place within existing organizations Entrepreneurs: are individuals who take Intrapreneurs are employees who the initiative to identify oppor tunities, exhibit an entrepreneurial mindset & develop innovative ideas, and establish drive innovation and change within their new ventures. organization. Entrepreneurs: assume the risks and Intrapreneurs identify oppor tunities for responsibilities associated with star ting growth, develop new products or and growing a business. ser vices, and implement innovative strategies within the established organizational structure. Impo ance of Entrepreneurship and its E ect on Economy.  “ Job creation and economic growth: Small businesses create a substantial number of new jobs ”  A powe ul catalyst for job creation  As entrepreneurs establish new ventures, they often require a workforce to suppo their operations, resulting in job oppo unities for individuals in the economy. READ ARTICLE : Entrepreneurship Impact on Economic Growth in Emerging C o u n t r i e s , L i n k : h t t p s : //cberuk.com/cdn/conference_proceedings/conference_40058.pdf REF: Zaki, I. M., & Rashid, N. H. (2016). Entrepreneurship impact on economic growth in emerging countries. T he Business & Management Review, 7(2), 31.  Impo ance of Entrepreneurship and its E ect on Economy. Innovation and technological advancements: Entrepreneurs are at the forefront of innovation and technological advancements  READ ARTICLE communities : Smashing it : How user entrepreneurs drive innovation in espor ts ‘ ’  T he study explores how user entrepreneurs drive innovation specif ically in the case of game spo s.  T his study contributes to the understanding of the interdependence between user- and environmental-specif ic 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 espo s communities. International Journal of Espo s, 1(1).  Link: https://www.ijespo s.org/a icle/23/html  Impo ance of Entrepreneurship and its E ect on Economy. Contribution to wealth creation and pove y alleviation:  Ar ticle: Entrepreneurship and pover ty reduction: A case study of Yiwu, China  Reference: Si, S., Yu, X., Wu, A., Chen, S., Chen, S., & Su, Y. (2015). Entrepreneurship and pover ty reduction: A case study of Yiwu, China. Asia Paci c Journal of Management, 32, 119-143.  Link: https://libenc.com/wp-content/uploads/2020/11/Steven-Si- Xuebao-Yu-Aiqi-Wu-Shouming-Chen-Poduzetnistvo-i-smanjenje- siromastva-Studija-slucaja-Yive-u-Kini-8.pdf Impo ance of Entrepreneurship and its E ect on Economy. Stimulating competition and market dynamics  Encouraging competition and improving the dynamics of the market, stimulating the oppor tunity to create better, valued and meaningful products, ser vices and solutions that contributes to society at large. FIGURE 1.2 Types of Sta Up Firms Types of Sta -Up Firms Pg. 45 FIGURE 1.2 Types of Sta Up Firms Types of Sta -Up Firms retail merchandise, for blogging, photography, example, or a se ice like w r it ing , t e a c hing , Microsoft, Google accounting or hairstyling. Pg. Most 45 small businesses are of this type. cooking, or training.  Choosing a Form of a Business Organization 1. Sole proprietorship 2. Pa nerships 3. Corporations 4. Limited Liability Company  (Pg. 277-285)  Types Of Business Ownership: Sole Proprietorship
Sole (One) proprietorship: Individual entrepreneurs who star tbusiness on their own, T h e person and the business are essentially the same.  e most common type of business. T h e owner maintains complete control over the business  e owner is the debts and legal liabilities.  Discuss the advantages and disadvantages of this form-  Pg. 278-279 Types Of Business Ownership: Pa nerships
Pa nerships  Consists of two or more people who share the assets, liabilities, and pro ts of a business.  e business is not dependent on a single person for its su ival and success.  A par tnership agreement, a legal document that is similar to a founders’ agreement. T h e agreement details the responsibilities and the ownership shares of the par tners involved with an organization. Types Of Business Ownership: Pa nerships
 T he re are two main kinds of par tn erships, general pa nerships and limited pa nerships. 1. A general par tn ership, all par tn ers have unlimited personal liability for business debts. 2. In contrast, a limited pa nership has at least one general par tn er who is fully liable plus one or more limited par tners who are liable only for the amount of money they invest in the pa nership. 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 sur vive a change of ownership. T heir 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 sta -up rms  All pa ners enjoy limited liability.  An LLC must be a private business—it cannot be publicly traded  e pro ts 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.  e number of shareholders is unlimited.
 Setting up and maintaining one is more di cult and expensive.  Oman’s Government & Entrepreneurship Suppo  "We have placed youth at the forefront concerns,“ of our government ’s  "We are resolved to lend them our suppor t and encourage entrepreneurship programs,“ their  "We will of fer necessar ysuppor tand incentives enterprises, to small given and their medium vital role in stimulating economic employment oppo unities.“ activity and His Majesty Sultan Hitham Oman's Sultan Haitham promises suppo for youth in anniversa address (thenationalnews.com)  e pa icipato approach of the future vision “Oman 2040” e vision is based on four pillars: 1. People and Society 2. Economy and Development 3. Governance and Institutional Pe ormance 4. Sustainable Environment oman2040-en.pdf Classi cations of Small & Medium Enterprises in Oman As per the SMEs Development Authority, the classi cations of small and medium enterprises take three shapes: Medium Enterprises Small Enterprises Micro Enterprises SME Development Authority Classi cations of Small & Medium Enterprises in Oman Medium Enterprises Small Enterprises Micro Enterprises Number of Employees Annual Revenue From OMR From OMR Below OMR 1,25,000 to 150,000 to 150,000 5,000,000 1,250,000  Commercial Companies Forms in Oman  As per the Commercial Companies Law in Oman, commercial companies must adopt one of the following forms: 1. General Pa nership : 2. Limited Pa nership : 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 : SixBytrends in global entrepreneurship Sreevas Sahasranamam - Posted on 17 March 2022 1. Positive entrepreneurial sentiment on oppo unities suggests global recove 2. Entrepreneurial activity rates are still lower in most countries compared to pre- pandemic 3. ere is a rising trend of low-growth entrepreneurial activity 4. T here is a paradox between perceiving it as easy to star ta 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.  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  De ne the term.  Compare between individual Entrepreneur & Entreprenuership  Discuss how entrepreneurship add values to the economy of the count.  Explain how entrepreneur di er from business owner.  Classify the types of business in Sultanate of Oman based on SMEs.  Re ect 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 espo s communities. International Journal of Espo s, 1(1). Link: https://www.ijespo s.org/a icle/23/html Si, S., Yu, X., Wu, A., Chen, S., Chen, S., & Su, Y. (2015). Entrepreneurship and pove y reduction: A case study of Yiwu, China. Asia Paci c Journal of Management, 32, 119-143. Link: https: //libenc.com/wp-content/uploads/2020/11/Steven-Si-Xuebao-Yu-Aiqi-Wu-Shouming-Chen- Poduzetnistvo-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=12ahUKEwjEk8fY6KmBAxVCNuwKHVDSDxEQMygAeg QIARBG..i&imgrefurl=https%3A%2F%2Fwww.kidsity.net%2F&docid=0Gd _KmgmXKYM&w=767&h =1083&q=kidcity%20logo%20oman&ved=2ahUKEwjEk8fY6KmBAxVCNuwKHVDSDxEQMygAegQIA RBG https://youtu.be/siUgEYN2TcY  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 suppo for youth in anniversa address (thenationalnews.com) oman2040-en.pdf SME Development Authority NewCommercialCompaniesLawEn.pdf (cma.gov.om)  Entrepreneurship
Creativity and Innovation For fu her clari cations and queries please contact your lecturer Revisit Chapter 1: Lecture Notes