THE ENTREPRENEUR AND CREATIVITY & INNOVATION
A. THE ENTREPRENEUR
Introduction
Entrepreneurs are people who are able to identify opportunities where others are unable to.
Entrepreneurs possess unique characteristics that make them stand out as different from other
business people. The sub-module unit focuses on the characteristics of entrepreneurs necessary
for business success, and their role in the development of an enterprise.
Specific Objectives
By the end of the sub-module unit the trainee should be able to:-
a) Describe types of entrepreneurs
b) Describe the qualities of an entrepreneur
c) Explain the role of an entrepreneur in an enterprise
CONTENT
Types of entrepreneurs
There are three main categories of entrepreneurs: craft, opportunistic and ego oriented
entrepreneurs
i) Craft Entrepreneur:
This is a person who exploits and utilises their personal skills to start a business without thinking
of growth or expansion. Craft entrepreneurs are not growth- oriented but try to maximise on profits.
A craft entrepreneur has skills, which they utilise to start and run a business.
ii) Opportunistic entrepreneur
This is a person who starts a business to maximise / expand to the maximum. He may not have the
skills but is able to start and maximise a business opportunity. He has the ability to see what other
people have not seen in terms of new ideas and starts a business with an objective of growth. He
employs his creativity and even employs or delegates to others to run the business for him.
An opportunistic entrepreneur has the ability to organise others and resource to maximise profits.
iii) Ego oriented
These are entrepreneurs who are keen on achieving higher status, recognition and a feeling of
superiority. Their main focus is on business evaluation i.e. a shift to higher levels.
Qualities of an entrepreneur
The following are some of the characteristics/ traits of an entrepreneur
1. High need to achieve: an entrepreneur always wants to excel in all he does and has strong
desire for success.
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2. Risk – taking: Entrepreneurs like pursuing new and challenging tasks. They carefully make
a choice for success. They take moderate calculated risks which have high potential for
success.
3. Independence: Entrepreneurs like doing things without consulting anybody. He does things
in his own ways in terms of which business to start, how to manage and improve it. They
believe in their own abilities to do things and succeed.
4. Creative and innovative: entrepreneurs have the ability to generate new ideas and
implement them ahead of others.
5. Problem- solving ability: entrepreneurs have the ability to totally recognise and solve day
to day problems in business operation. They recognize the fact that they operate in an
environment with problems and are always ready to solve them to the advantage of their
businesses.
6. Time Consciousness: an entrepreneur believes that time is money and that the available
time must be used effectively for business. He manages his time well and does things at
the right time.
7. High need to control: an entrepreneur always wants to control his destiny. He starts a
business and keeps at a level that he can easily control and manage based on his abilities.
8. Leadership ability: Entrepreneurs are pioneers in terms of visions and business ideas. They
are able to mobilise and make use of others to assist in achieving their business goals.
9. Positive Self- concept: Entrepreneurs have self- confidence and believe in what they do.
They are always optimistic and have positive attitude towards certain opportunities for
success. They approach opportunities with success in mind.
Roles of an entrepreneur in an enterprise
The bearing of uncertainty is regarded as the primary function of an entrepreneur. This is the
willingness and ability to deal with uncertainty. Other functions relate to risk – taking and
management of the business. Therefore, as an entrepreneur, one is expected to perform the
following functions.
i) The entrepreneur is the prime mover in the business enterprise. He is the one who identifies
gaps in the market and turns the gaps into business opportunities. Thus an entrepreneur initiates
the business.
ii) The entrepreneur finances the business. After identifying a business opportunity the
entrepreneur raises and mobilises the necessary resources to exploit the opportunity.
iii) The entrepreneur manages the business. He can either do it himself or delegate to other
people.
iv) The entrepreneur bears the business uncertainties or risks of the business. This arises due
to the fact that he is the one who finances the business.
Hence as a key figure and prime mover of the business, it is his responsibility to:
Search for business opportunities
Evaluate the business opportunities to assess their viability
Mobilise resources needed to start and run the business.
Manage the business
Provide the necessary leadership for the people working for the business and,
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Bear the uncertainties or risk of the business
This is the process of entrepreneurship which encompasses the activities undertaken by the
entrepreneur.
Suggested learning activities
1. Relate entrepreneurial types and qualities to existing entrepreneurs
2. Role plays on the concept of the entrepreneur.
B. CREATIVITY AND INNOVATION
Introduction
Since customers’ tastes and needs are continually changing, the entrepreneurs must think of new
ideas and better methods of running their businesses in order to satisfy the customer.
This sub-module unit will discuss the importance of creativity and innovation, the barriers to
creativity and innovation including managing barriers to creativity and innovation.
Specific objectives
By the end of the sub-module unit, the trainee should be able to:
a) Define the terms creativity, innovation, discovery and invention.
b) Explain the process of creativity and innovation
c) Explain the importance of creativity and innovation.
d) Explain barriers to creativity and innovation
d) Explain ways of managing barriers to creativity.
Content
Meaning of creativity and innovation
i) Creativity
Creativity is the ability to bring something new into existence.
ii) Innovation
It is the ability to do existing things in a new way. Having a new use for old things is also
innovation.
iii) Discovery
It is making known that which has been in existence but whose uses have not been perceived
iv) Invention
It means bringing something new into existence
Process of creativity and innovation
Creativity as a process has several stages. These are:
i) Preparation. Getting the mind ready for creative thinking using methods such as
- realizing that every situation is an opportunity to learn
- reading on a variety of topics/subjects
- creating a file of interesting articles
- developing the ability to listen to and learn from others
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- attending professional/ trade association meetings, both to brainstorm with others
having a similar interest and to learn how others have solved a particular problem.
ii) Investigation. Studying the problem and understanding its components
iii) Transformation. Identifying the similarities and differences in the information collected.
iv) Incubation. The subconscious needs time to reflect on the information collected.
Incubation can be enhanced by
- doing something totally unrelated to the problem/opportunity under
investigation
- taking time to reflect (freeing the mind from self imposed restrictions)
- playing and relaxing
- thinking about the issue before going to sleep so that the subconscious can work
on it during sleep
- working on the problem or opportunity in a different environment.
iv) Illumination. This occurs when all the previous stages start getting clear.
v) Verification. Involves testing if the idea will work, is practical to implement and is a better
solution to a particular problem or opportunity. Experiments, test marketing and piloting are
some of the methods that can be used.
(vii) Implementation. Transforming the idea into reality by bringing it to the market. This is
what distinguishes the entrepreneur from the inventor.
Importance of creativity and innovation
i) It leads to increased productivity
ii) It helps in profit maximization
iii) It motivates employees to become more creative
iv) It leads to diversification of products and services
v) A variety of goods and services is introduced
Barriers to creativity and innovation
Creativity and innovation will be limited by:
i) Cost of research and development is high
ii) Inability to protect invention through patents
iii) Searching for the one right answer
iv) Blindly following ‘the rules’
v) Being over specialized
vi) Fearing to look foolish
vii) Fearing mistakes and failure
viii) Believing that you are not creative
ix) Viewing play as frivolous
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x) Focusing on being logical
Managing barriers to creativity and innovation
Barriers to creativity and innovation can be overcome by:
i) Budgeting for research and development
ii) Strengthening public institutions that process the patenting process
iii) Rewarding creativity
iv) Promoting creativity training
v) Avoiding mental blocks
vi) Being systematic
vii) Being a problem solver
viii) Approaching issues from different angles
ix) Avoiding routine practices
x) Concentrating on the end results rather than the means
xi) Avoiding looking for consensus
Activity
Carry out a class exercise aimed at bringing out creativity in the learners e.g. joining 9 dots with
straight lines, discussing the various uses that an identified item can be put into.
Self-assessment questions
i) Distinguish between creativity and innovation.
ii) Explain the importance of creativity and innovation to an entrepreneur.
