entrepreneurship

WHAT IS Creativity

Creativity is a mental process involving the

generation of new ideas or concepts, or new

associations of the creative mind between

existing ideas or concepts.

An alternative conception of creativity is that

it is simply the act of making something new.

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Need of Creativity

Creativity can be used when confronted with a decision making problem.

People differ in their inherent creativity.

To over come from routine.

What is innovation

Innovation is about creating value and increasing efficiency, and therefore growing your business.

"Without innovation, new products, new services, and new ways of doing business would never emerge, and most organizations would be forever stuck doing the same old things the same old way.”

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Thomas Edison

“I have not failed, I’ve just found 10,000 ways that won’t work”.

How innovative are you?

Remove three sticks to leave four

Distinguishing between creativity and innovation

Creativity is typically used to refer to the act of producing new ideas, approaches or actions.

Innovation is the process of both generating and applying such creative ideas in some specific context.


In the context of an organization, therefore, the term

innovation is often used to refer to the entire process by

which an organization generates creative new ideas and

converts them into novel, useful and viable commercial

products, services, and business practices.

While the term creativity is reserved to apply specifically

to the generation of novel ideas by individuals or groups,

as a necessary step within the innovation process.


innovation "begins with creative ideas,„ "...creativity by individuals and teams is a

starting point for innovation; the first is a necessary but not sufficient condition for the second.„


Alternatively, there <is no real difference between these terms, as creativity is both novel and appropriate <,,(which implies successful application).

It seems that creativity is preferred in art contexts whereas innovation in business ones.

Obstacles to Work Creativity

ORGANIZATIONAL IMPEDIMENTS such as internal

political problems, harsh criticism of new ideas,

destructive internal competition, avoidance of risk

and overemphasis on the status quo

WORKLOAD PRESSURES such as extreme time

pressure, unrealistic expectations, or distractions

components of creativity & innovation

Intrinsic

task motivationCreative thinking

skill

Expertise is the foundation for all creative work

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Organizational Climate

Organisational Innovation

Organisational Culture

Leadership Style

Resources & Skills

Structure & Systems

Determinants of Organisational Creativity and Innovation (AIC)

Components of Individual Creativity

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CreativitySkills

IntrinsicMotivation

Expertise

C

Organisation Creativity

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IncreasingEnergy &EffectivenessUnder Pressure

BuildingTrusting

Relationships

Creatingthe Future

Innovation & Unique Potential

Success

Initiative

Innovation within the organization depends upon:

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Organizational Motivation – the basic

orientation of the organization toward innovation;

shared vision; providing rewards and recognition;

lack of internal politics, and lack of overemphasis

on the status quo.

Resources – everything the organization has

available to aid in the area targeted for innovation,

including time, funding, information and materials.

Cont..

Management Practices – allowing

freedom and autonomy in the practice of

work; providing challenge; specifying clear

strategic goals and forming work teams

comprised of individuals with diverse skills

and perspectives.

Thinking provides knowledge, Knowledge

makes you great.

IQRA TARIQ

FACTORS INFLUENCING

CREATIVITY

The environmental factors can

facilitate the creativity and

innovation in individuals,

departments, and organizations.

STIMULANTS TO CREATIVITY

Challenge

Intellectual Debate

Flexibility & Risk Taking

Top Management Support

Positive Supervisor Relations

Positive Interpersonal Exchange

CHALLENGING TASK

Complex

Interesting

Not over

whelming

INTELLECTUAL DEBATE

To ensure that a

project can

move forward.

“Tried and true”

ways of doing

things.

RISK TAKING

Creative endeavors

are inherently

uncertain.

Tolerating the risk,

not minimizing it, is

the best strategy.

TOP MANAGEMENT SUPPORT

This support

entails two

types of

support:

1) Espoused

support

2) Enacted

support

TYPES OF SUPPORT

Espoused Support Enacted Support

POSITIVE SUPERVISOR RELATIONS

Supportive

leaders listen

and give

feedback to

ideas.

Reward

creative

efforts.

POSITIVE INTERPERSONAL EXCHANGE

The salient

component of

creative climate is

joy.

Increases team

and individual

performance.

Keep conflict

away.

RANKING OF PAKISTAN IN TERMS OF CREATIVITY AND INNOVATION In 2014, It has been reported in Dawn News

“A new ‘Creative Productivity Index’ (CPI) developed by the Asian Development Bank (ADB) and Economic Intelligence Unit (EIU) has ranked Pakistan as the least efficient innovator.

Pakistan is ranked 23rd with weaknesses in fostering a competitive business environment and it provides little incentive for firms to innovate.

As per the news published in Daily Times,

The index uses 36 input indicators to measure the capacity and incentives for innovation, including • How many global top 500 universities

a country has, • The urbanisation rate• Spending on research and

development• Protection of intellectual property

rights• Corruption and bureaucracy.

The eight output indicators to measure innovation include • The number of patents filed• Export sophistication• Value added to agriculture • The number of books and films

produced

(Pakistan’s ranking as least efficient innovator irks minister, 2014)

REASONS FOR LESS CREATIVE AND INNOVATIVE PRACTICES IN PAKISTAN

•The risk avoiding nature of pakistanis.•Lack of support from the society and our system Pakistani entrepreneurs have been seen to follow the ways which other people have experienced before to stay on the safe side.

Developed countries protect the rights of the creative and innovative ideas through strict laws while in our country our laws are abused for that reason.

The very big reason for less development of our IT sector is the software copyrights violation. Because of the piracy issues, foreign as well as local investors hesitate to invest in that sector. (Malik, 2003)

It’s not like that Pakistani society does not possess talent, it’s our system which hampers the creativity and innovation.

1. Might be someone having a wonderful idea wanted to get it ahead but don’t find the place from where to get finance, materials, etc.

2. If, the person succeeds in developing the prototype, he/she might think whether people would be willing to buy it or not.

3. And, finally if the person’s idea hit the market but there are very high chances that the person get kidnapped for ransom.

(Pitafi, 2014)

EDUCATIONAL SYSTEM OF PAKISTAN AND INTELLECTUAL DEFICIT

Pakistan’s academic system hinders the creativity and lead the students

towards traditional thinking and application methods, that’s why they feel

hesitation in taking initiative.

Exceptional people are there, who take initiative and do creative things but

such people are not followed as a norm.

Critical thinking and research work is essential for building any nation.

(Jawaid,2013)

Both the public and private educational institutions should be reformed to help our youth to have tolerance and capacity for lifetime learning. (Pakistan: New Growth Framework, 2011)

LOW INCLINATION OF PAKISTANIS TOWARDS ENTREPRENEURSHIP

In 2011, Sumra, Safarish, Suhail, & Ahmad have founded in their study that there is not strong inclination of Pakistani students towards entrepreneurship and self-employment.

Sumra et al. (2011) have proved through their research in public sector institutions in Bahawalpur, Lahore and Islamabad that lack of innovation and creativity1. Lack of risk tolerance2. Lack of resources 3. Unsupportive social environment4. Lack of support from self – employed people5. The lack of promotion of self – employment from

teachers6. Lack of entrepreneurship education7. Low number of self – employed parents8. Lack of required human skills9. Long working hours. All of these factors were found to be positively related to low inclination towards entrepreneurship.

Conditions are un favorable because

Some people have authority and the dominate the people and don’t make them able to take initiative.

Poor political conditions and unfair distribution of wealth.

No support from the society.

Education system is not supportive.

We have much critics than supporters.

In Pakistan innovation and creativity is possible because of changing mindset of people, emerging demands of people but people remain reluctant to support those who take initiative to bring something new.

Pakistan has potential market for industrial and agricultural market, but still there is use of traditional methods so there is need of innovative and efficient strategies to solve the problems and Pakistan has innovative oriented environment as demands of market are constantly changing.

THE DARK SIDE OF ENTREPRENEURSHIP The thought of going into business or doing ‘your own thing’ as it is popularly called can be very appealing at first.

This is especially true for most people who want to make the switch from the limited world of employment to the unlimited world of business.

But sooner or later, the untold harsh realities will begin to set in and the truth is;

a lot of people are unfamiliar with these harsh realities.

For the majority of you who have gone into business nurturing only the juicy thoughts of being an entrepreneur, things are about to get very sour. I’m sorry, but there’s some really bad news I need to break to you; entrepreneurship as much as it’s celebrated also has a dark side. At least, I’ve been able to identify some of them,

RISK AND THE ENTREPRENEURThe Entrepreneur’s Confrontation with Risk

•Financial Risk

•Career Risk

•Family and Social Risk

•Psychic Risk

STRESS AND THE ENTREPRENEURSome of the most common entrepreneurial goals are, Independence Wealth, and Work satisfaction.

Research studies of entrepreneurs show that those who achieve these goals often pay a high price. A majority of entrepreneurs surveyed had • Back problems• Indigestion• Headaches • Anxiety • Depression

HERE ARE FIVE SPECIFIC WAYS, ENTREPRENEURS CAN COPE WITH STRESS. Networking

• Getting Away from it All

• Communicating with Employees

• Finding Satisfaction Outside the Company

• Delegating

ENTREPRENEURSHIP EDUCATION

ENTREPRENEURSHIP EDUCATION KEY TO SUSTAINABLE ECONOMIC UPSIZING

Different studies have shown that, entrepreneurship education can help the individuals to get suitable jobs for themselves they can also succeed in starting their own new companies.

European Commission have proposed certain actions in Entrepreneurship Education Action Plan 2020 for promotion and utilizing the full potential of entrepreneurial education.

1. Introduce entrepreneurship education in each country

with the cooperation of member states of the

Commission;2. Transfer the entrepreneurial university guidance

framework in every university over the globe;

3.Develop an entrepreneurial learning initiative for analyzing effects of the entrepreneurial education, knowledge sharing, and methodologies for mentoring;

4. Development of entrepreneurial schools;

5. Ensure that key entrepreneurial competencies are

emphasized in the curricula;

6.Offer at least one practical experience of

entrepreneurship to the young people getting

entrepreneurial education;7. Provide entrepreneurial training to those individual who

have the resources but they are not educated in

entrepreneurship;8. Promote entrepreneurial learning modules.

(Entrepreneurship education key to sustaniable

economic upsizing, 2013)

Malecki, 1997 (as cited in Rasmussen & Sørheim, 2006) has stated that there is a close and intimate relationship between entrepreneurship and local and regional development.

Reynolds, P., Storey, D.J., Westhead, P., 1994 (as cited in Rasmussen & Sørheim, 2006) have found that high start-ups are essential for the economic growth but these also don’t guarantee it.

Etzkowitz, H., Webster, A., Gebhardt, C., Terra, B.R.C., 2000 (cited in Rasmussen & Sørheim, 2006) have stated in current scenario, universities should not only take part in research and teaching but also they should focus their efforts towards mission of economic development.

Kolvereid and Moen, 1997 (cited in Rasmussen & Sørheim, 2006) have found that fresh graduates with entrepreneurship as major course they are more likely to start a new venture and have strong entrepreneurial intentions than other graduates.

Self-confidence, autonomy, a strong work

ethic, ambition, empathy, and “an internal locus of control”

Entrepreneurship education is an effective tool for instilling these particular qualities

The Importance of

Entrepreneurship Education

The Importance of Entrepreneurship EducationIncrease motivation to achieve success.

Motivate people to become entrepreneurs, particularly young women.

Give students a greater sense of self-control and higher self-esteem (to get their dreams fulfilled)

When programs utilize hands-on, experiential learning techniques they can also increase innovative thinking skills (crucial for professional success)

The Importance of Entrepreneurship Education

Help the students who aspire to be doctor, engineer, lawyer, and teacher etc. to innovate in their fields.

The students can not only learn to develop a business plan and how to market a product but also how to identify an opportunity and how to exploit it in an effective and efficient manner.

Prior studies have shown that entrepreneurial training will help to improve entrepreneurial intentions.According to this study business community and educational system can jointly make efforts in providing training in entrepreneurship and developing and improving entrepreneurship at an early stage. (Howard S. Rasheed)

Yes education is necessary because students don’t know how to expand their ideas and implement them practically and how to utilize the available resources.

It is necessary for the development of an entrepreneur and his enterprise.

Education is essential to some extent because Entrepreneurs are born. They can enhance their specific skills and make their business more effective but for this they must have entrepreneurial spirit in them.

In start there is no need of entrepreneurial education, but with time to face the challenges of market in a proper way or to move forward with innovative market strategy an entrepreneur needs education.

Spesial Thanks to Mam Urooj

Our class matesKinza Ibrahim

Mehwish FaheemZeeshan Tariq

Muhammad Afzal Asad Butt

Be An

ENTREPRENEUR

Small Business & Entrepreneurship

entrepreneurship