ENTREPRENEURSHIP DEVELOPMENT SYBBA - 3

Unit 2

Creativity, Innovation And Social Entrepreneurship

Introduction : The worlds most pressing problems are ever changing and
complex. Solving major social challenges will require both perseverance and
innovation. But innovation isnt just a buzzword for success. Rather, its a
powerful tool that social sector organizations can leverage to create impact and
achieve their larger missions. Social sector organizations that have a high capacity
for continuous, productive innovation are better able to respond to change and
sustain their impact in the long-term.

Definitions : Creativity means the ability to produce something that's new and
that will add value to the company. It can include fresh approaches to production,
managing people, or delivering servicesanything with a tangible result. Not
surprisingly, managers can help build an organizational culture that supports
creativity.

Creativity refers to employees' generation of novel and useful ideas concerning

products, procedures, and processes at work.

Meaning : Employee creativity is a mixture of goal orientation, team learning

behavior, and individual creativity. Creativity is examined through goal
orientation. These orientations can be a result of internal factors in which
individuals are influenced by their own personal desire to perform in such a way.
These desires are motivated by individual beliefs without the influence of external
rewards. On the other hand, individuals may also be influenced by external
factors such as competing with others, acknowledgement, or avoiding criticism.

The extrinsic factors can be divided into active and passive approaches: those
who seek to attain favorable judgments, and those who avoid unfavorable
judgments, respectively. At the individual level, intrinsic motivation towards

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creativity leads to a higher level of learning orientation (the acquisition of new

knowledge and inclination towards a mastery of tasks).

Ways to Make Organization more creative and Innovative :

1. Champion creativity at the C-suite level. There is a growing realization from the
C-suite that fostering creativity is good business. Corporate communications
departments can take the lead in helping senior leaders deliver the message to
employees that the company welcomes their ideas. A place to start might be
using employee meetings, videos or internal blog posts to share stories about
what inspires top executives to be creative.

2. Tap ideas from all ranks. A good idea can come from anywhere within an
organization, whether its a marketing executive with regular access to the C-suite
or a factory worker in a far-flung location. The challenge is capturing those ideas.
Communications can create the tools and channels for employees to exchange
ideas with one another or share them with management no matter where an
employee sits in the organization. Such tools might include an internal chat room
or a dedicated e-mail address.

3. Dedicate time and give permission to fail. Time is essential to creativity. Yet, in
the current economy, employees are being asked to do more with less, leaving
little time for deliberate exercises in creativity. Managers looking for great ideas
must understand that they probably cannot get creativity on demand. Creative
ideas need time to gestate. When those ideas do come, its also important to
accept that there will be 10 bad ideas for every good one. thinkers know their
ideas will be given a shot and that they wont be stigmatized.

4. Reward risk taking. Employees who suggest new ways of doing things are bound
to meet resistance. And even if co-workers embrace an idea, there is the risk of
failing in execution. Organizations can counter both these situations by rewarding
employees who present creative ideas despite the risk. Peer recognition can be
just as important as financial incentives. Communications can help management

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develop signature programs or awards to recognize those who contribute and

champion ideas.

5. Collaborate and integrate. The typical organization is made up of multiple groups

of employees with designated responsibilities. Bringing some of those groups
together to share perspectives can produce insights that lead to the next big
thing. For instance, moving the communications function closer to R&D might
spark new ways to tell a companys story to external stakeholders.

6. Minimize hassles. Any sizable organization is bound to have some level of red
tape. That could mean an employee might need to fill out multiple rounds of
paperwork or complicated online forms just to share an idea. Communications
should play a part in streamlining processes by making sure language is clear and
easy to understand and that employees dont have to write or type out the
same information in multiple formats and forms.

7. Be open to diverse perspectives. Companies need to communicate that they are

looking to recruit talent with diverse backgrounds. And they need to find a way to
harness the voice of the customer to spur new ways of thinking. Communications
can help with both.

8. Seek stimuli beyond the cubicle. A short walk, a good book or a song lyric can all
inspire new ideas. Communications managers should encourage their teams to
get out of the office from time to time.

9. Co-create with customers. Those who use a companys products or services likely
have the best ideas about how to improve them. Communications can help
companies get better input from customers earlier in the process of development
or change.

10.Live it every day and in every way. The reason some companies succeed in
creating a creative culture where others fail is because there is authenticity in
their commitment. They focus on it every single day. And their success brings
about more success. Creativity begets creativity.

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MANAGERIAL RESPONSIBILITIES :

It is the manager's responsibility to keep their employees involved in the creative

process. Creativity is a consistent and statistically significant predictor of peak
performance at various employment levels. While people often regard this
construct as a stable and innate trait, creativity is actually an ability that can be
learned and nurtured through a series of steps or exercises that focus on healthy
physiology and promoting positive "cross talk" among the three main anatomical
regions of the human brain.

Companies wanting to enhance the creativity of their executive

management teams, specific divisions or departments, or any level of human
capital can further build on the following steps or exercises by taking advantage
of unique executive retreats and management workshops that address creativity
in the context of organizational strategies. Some of the few ways to do it are as
follows:

1. Engage employees from all departments in brainstorming sessions.

If the company is big, bosses could organize the sessions by departments.
Activities such as this energize the employees into action and involvement. These
brainstorming sessions could focus on problems, issues, and other concerns. For
example, one of the employees are having trouble with financial emergencies, the
company could assist them in getting instant payday loans from good sources.
These short term loans could help them to solve some urgent cash needs such as
car repairs or even utility bills.

2. Encourage and enable employees to pursue outside interests.

They could take up sports sponsored by the company, such as bowling or
basketball. They could go on a tour or a weekend recreation. If the business
budget is tight, the company could facilitate a payday advance via online payday
loans. These activities need not be expensive as long as it serves the purpose of
encouraging camaraderie and generating new ideas for the business.

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3. Create an inspiring work space.

The office should not be all drab and gray. Designing the inside of the workplace
could mean putting some greenery, like ornamental plants, to liven it up.
Paintings or posters are also good additions to blank and bland walls.

4. Fund extracurricular projects or classes.

The aim is to assist people in achieving instant and long term financial freedom.

5. Lower cubicle walls.

It is also a good idea to lower cubicle walls, so there would be a semblance of
openness in the workplace. It may sound simple enough, but lowering cubicle
walls or even doing away with partitions could help employees come up with
good ideas together or lift up the office mood to a more positive outlook

Creative Teams : Employee learning orientation is linked to an employee's

preference for challenging activities and learning, which may enhance creative
problem solving and lead to translating problem solutions into innovations.

Working with a team can introduce additional influences and challenges in the
learning process. Teams that seek information, address differences within the
group, and question problem-solving assumptions engage in team learning
behavior. This brings about concern regarding the team process of learning
behavior:

Team learning behavior influences employee learning and creativity with

the presence of team learning behavior, individuals with a disposition
towards learning thrive.

Team learning behavior influences employees' active approach those with

an active approach excel within the context of team learning behavior.

Team learning behavior controls for those with a passive approach it

encourages them to speak freely in an open and positive group dynamic.

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Sources of Innovation in Business :

The Unexpected : The market place is the number one area to look for
opportunities. A good manager should be constantly studying the market. Is a
particular product or service in greater or lesser demand than anticipated? Why?
Is there a way we can exploit this unexpected success? What has to happen if we
want to convert this success into an opportunity?

The Incongruity : There is a discrepancy between what is and what should be.
This is a key to developing wildly successful businesses but its tricky. Facebook is
a company that nailed it. Prior to the social networks prolific rise Myspace was
the dominant player, but it had its downfalls.

Facebook wisely noted what Myspace was vs. what should be and built that
platform. The end result? A company that just had an IPO versus. one that has
fallen off considerably.

One of the best places to look for incongruity is in your own customers. Their
complaints and unmet wants are all the hints you need.

Process Need : Process need involves identifying your companys process weak
spots and correcting or redesigning them. This is a task oriented solution meaning
that the source of innovation comes from within your existing capabilities and
ways of doing business not the market.

An example might be a restaurant that identifies that people wait too long for
their entrees and so decides to hire another chef to speed up creation
times.Essentially your company will want to look for all weak links and eliminate
them.

Industry and Market Structure Change ; Your industry and the market are in
continual flux. Regulations change and some product lines expand while others
shrink. Firms should continually be on the watch for this.

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One example is deregulation. When a previously regulated industry becomes

open there is historical precedence for companies that enter early to be very
successful. Other things to watch out for are the convergence of multiple
technologies and structural problems that occur from time to time (often
immediately following an industry boom).

Demographics : We constantly see changes occur in populations, income levels,

human capital (education) and age ranges. Smart firms are constantly paying
attention to this.

When it comes to the baby boomers businesses have been following them
constantly as they got older. At present they are one of the largest as well as the
most affluent demographic groups with high levels of disposable income.

Combining demographic data with segmentation and targeting is a powerful

method of accurately meeting a target markets desires.

Changes in Perception, Meaning, and Mood : Over time populations and people
change. The way they view life changes, where they take their meaning from, and
how they feel about things also is modified over time and smart companies must
pay attention to this in order to capitalize (and avoid becoming forgotten, a relic
of ages past).

Religion is another example. Across the world weve seen Islam and atheism rise.
Companies should adapt as overall meaning changes in culture.

New Knowledge : As the speed of technological revolution increases there will be

an ever increasing number of opportunities that open up. The internet has been
the most notable one in the last couple decades but there have been a plethora
of other industries and opportunities pop up as a result of this technological
revolution.

New knowledge is about more than just technology though, its about finding
better ways of doing things and improving processes. Your company should look
to this new knowledge for ways it can improve incrementally.

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Intel does this constantly and its a major part of why theyre the leading
processor manufacturer today. Constantly paying attention to the latest in both
academic research as well as investing heavily in their own R&D, the company has
managed to find continual sources of innovation, driving its success.

SOCIAL ENTREPRENUERSHIP
Introduction :

Social Entrepreneurship is a revolution occurring around the world today, where

people from all walks of life are developing and implementing innovative,
effective, and sustainable solutions in response to social and environmental
challenges. These solutions include products, services, frameworks and
interventions brought to market by both new startups and existing organizations,
whether for-profit or non-profit.

Meaning :

Social enterprise involves a financially sustainable earned-income activity

that addresses a social problem

Entrepreneurs are essential drivers of innovation and progress. In the

business world, they act as engines of growth, harnessing opportunity and
innovation to fuel economic advancement. On the other hand, social
entrepreneurs are individuals who recognize a social problem and use
entrepreneurial principles to organize, create, and manage a venture to make
social change.

Social entrepreneurs are individuals with innovative solutions to societys

most pressing and daunting social problems. They are ambitious and persistent,
tackling major social issues and offering new ideas for wide scale change.

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Entrepreneurs are innovative, highly-motivated, and critical thinkers. When

these attributes are combined with the drive to solve social problems, a social
entrepreneur is born.

Florence Nightingale and Maria Montessori offer two prominent historical

examples. Muhammad Yunus, recipient of the 2006 Nobel Peace Prize, is a more
recent example. In nutshell, social entrepreneurs are pioneer of innovations that
benefit humanity at large.

Following are some historical examples of leading social entrepreneurs across

the world:

Vinoha Bhave (India): Founder and leader of the Land Gift Movement, he
caused the redistribution of more than 7,000,000 acres of land to aid Indias
untouchables and landless.

Satyan Mishra (India): Founder and CEO of the Indian Company, Drishtee, with
its over 4,200 Drishtee-trained entrepreneurs provides economic opportunities to
the poor by facilitating access, generating employment and delivering essential
services in an affordable way. In this way, Drishtee is enhancing access and
empowering rural communities by creating significant cost and time savings to
sell a range of products and services.

Bunker Roy (India): He created the Barefoot College in rural communities in

India to train illiterate and semi-illiterate men and women, whose lack of
educational qualifications keeps them mired in poverty. Today Barefoot College
graduates include teachers, health workers and architects who are improving
communities across India, including 450 barefoot engineers who have installed
and maintained solar-electrification systems in 547 villages that reach nearly 1000
people.

Muhammad Yunus (Bangladesh): Established the Grameen Bank to offer micro

loans to impoverished people in Bangladesh in 1976, thereby empowering them
to become economically self-sufficient and proving the micro-credit model that
has now been replicated around world.

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Maria Montessori (Italy): Developed the Montessori approach to early childhood

education.

Florence Nightingale (U. K.): Founder of modem nursing, she established the first
school for nurses and fought to improve hospital conditions. What common
element found in case of above illustrative social entrepreneurs is that they are
mass recruiter of local change makers-a role model proving that citizens who
channel their passion into action can do almost anything.

Putting simply, social entrepreneurs are solution-minded pragmatists who

are not afraid to tackle some of the societys biggest problems. Here the view of
Bill Drayton Founder and CEO of Ashoka about social problems seems worth
citing:

Social entrepreneurs are not content just to give a fish or teach how to
fish. They will not rest until they have revolutionized the fishing industry (www
dot skollfoundation dot org).

In sum and substance, social entrepreneurship is defined considering the

three approaches of combining commercial enterprises with social impacts,
innovating for social impact, and catalyzing social transformation. The article is
particularly interested in the perspective that emphasizes social entrepreneurship
as a catalyst for social transformation.

Feature of Social Entrepreneurship :

(a) Ambitious: Having high ambition is one of the major characteristics of the
social entrepreneurs. They are the reformers and revolutionaries with a social
mission. They are the ambitious people tackling major social issues and offering
new ideas and solutions for wide-scale change.

Such entrepreneurs are found in all walks of life and all kinds of organizations:
innovative nonprofits, social purpose ventures such as for-profit community
development banks, and hybrid organizations that mix elements of non-profit and
for- profit organizations.

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(b) Missionaries: The life-histories of successful social entrepreneurs reveal that

their mission, i.e. the ultimate purpose is not creating just wealth, but most
importantly, generating as much as possible social value. Yes, wealth creation
may be the part of effort, but is not an end in itself.

(c) Strategic: Like the successful business entrepreneurs, social entrepreneurs

also search and identify the major social issues what others miss. They use these
as opportunities to improve the existing social systems, create solutions, and
invent new approaches that create social value.

(d) Resourceful: Social entrepreneurs function in a social framework, not within

the business world. As such, they have limited resources because of their limited
access to capital and traditional market support systems. Given such conditions,
they need to be skilled enough to muster and mobilize human, financial, and
political resources required to solve the social problems.

(e) Result Oriented: Ultimately, social entrepreneurs are driven to produce

measurable results to make perceptible dent on the society. These results change
even transform the existing equilibriums, realities, and create new pathways for
the benefits of the disadvantaged and downtrodden people of the society. They
have the skill to unlock and harness the potential society has to effect social
change.

Strategic thinkers: Like business entrepreneurs, social entrepreneurs act upon

what others miss
_ Mission driven: Work hard to generate value
_ Focused: Both entrepreneurs are intensely focused and hard-driving in their
pursuit of a social vision
_ Resourceful: They are skilled at mobilizing and motivating resources
_ Results oriented: Driven to produce tangible results
_ Challenge Seekers: Tackle major issues, opportunities or challenges
_ Perseverance: Continue efforts despite obstacles

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Need & Role of Social Entrepreneurship :

The need for and significance of social entrepreneurs is imbued with

multiplicity of justifications. Just as business entrepreneurs change the face of
business, social entrepreneurs act as the change agents for society, seizing
opportunities others miss and improving systems, inventing new approaches, and
creating solutions to change society for the better.

While a business entrepreneur might create entirely new industries, a

social entrepreneur comes up with new solutions to social problems and then
implements them on a large-scale for the benefit of the humanity.

In sum and substance, the common thing among the above listed historically
worthy social entrepreneurs is they have identified sustainable solutions to
daunting social problems that have fundamentally changed society and humanity
to a great extent. The social entrepreneur plays the role of a change agent in
society by:

a. Adopting a mission to create and sustain social value;

b. Searching for and pursuing new opportunities to serve that mission;
c. Continually innovating, adapting, and learning in pursuit of the mission;
d. Acting boldly without consideration of resources current in hand; and
e. Being accountable for outcomes of activities.

Thus, social entrepreneur is different from a business entrepreneur in the sense

that the former assesses its success in terms of its impact he/she makes on
society whereas the latter measures his/her performance in terms of profit and
return.
While a business entrepreneur may create entirely new business enterprise, a
social entrepreneur comes up with new solutions to daunting social problems and
then implements them on a large-scale that benefits humanity. Although the
terms are relatively new, both social entrepreneur and social entrepreneurship
are found throughout history.

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