Dayananda Sagar Academy of Technology & Management

Department of Management Studies

MBA- FIRST SEMESTER ( Batch of 2021-2023)

Course Code: 22MBA12

Course Title: Introduction to Entrepreneur & Entrepreneurship

Faculty Instructor: Rachana. D

Email ID: rachana-mba@dsatm.edu.in

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 Module 1 – Introduction to Entrepreneur & Entrepreneurship:
Meaning of entrepreneur:
A person who sets up a business or businesses, taking on financial risks in the hope of profit.

A person who organizes and manages any enterprise, especially a business, usually with considerable initiative and
risk is called entrepreneur.

Entrepreneur is a person who is responsible for setting up a business. He possesses skills, initiative and innovative
ideas and aspires for high achievements in business. He promotes projects for the welfare of people and creates
wealth for the society. In the process of implementing new projects, he created employment.

Peter Drucker: An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a
specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource.

Rachana. D, Assistant Professor, DSATM

 Evolution of the concept:
1. The word entrepreneur has a variety of meanings. Originally, the word entrepreneurship has been been derived from the French word
"entreprendre" which means 'to under take’.

2. The word has undergone many changes over a period of five centuries. In the early 16th century, a leader of the military expedition was called an
entrepreneur.

3. In the 17th century construction and fortification contractors were called entrepreneur. The Oxford dictionary (1897) defines the word
entrepreneur as "the director or manager of a public musical institution, one who sets up entertainment especially musical performance".

4. Later in the 18th century the word was used to refer to as 'those engaged in economic activity". A close look at these meaning which has evolved
with time seems to suggest that in the earliest period, à person who was strong, took orders & went in search of new lands as part of military
expedition was an entrepreneur which later shifted to mean a person with extra-ordinary idea to build forts that could stand. all attacks (an
engineering or technical man) was an entrepreneur.

5. Whatever is the road that these terms as taken one thing seem to stand out, i.e., a person with a rare blend of qualities like organising skill, mental
ability, adventurous attitude, love for hard work, clear in goals, objectives, highly optimistic, emotionally stable, self confident, positive attitude
with desire to take risk is an entrepreneur.

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 Functions of Entrepreneur:
1. Innovation:

• An entrepreneur is basically an innovator who tries to develop new technology, products, markets, etc.

• Innovation may involve doing new things or doing existing things differently.

• An entrepreneur uses his creative faculties to do new things and exploit opportunities in the market.

• He does not believe in status quo and is always in search of change.

2. Assumption of Risk:

• An entrepreneur, by definition, is risk taker and not risk shirker.

• He is always prepared for assuming losses that may arise on account of new ideas and projects undertaken by him.

• This willingness to take risks allows an entrepreneur to take initiatives in doing new things and marching ahead in his efforts.

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 Cont’d
3. Research:
An entrepreneur is a practical dreamer and does a lot of ground-work before taking a leap in his ventures.

• In other words, an entrepreneur finalizes an idea only after considering a variety of options, analyzing their strengths and weaknesses
by applying analytical techniques, testing their applicability, supplementing them with empirical findings, and then choosing the best
alternative. It is then that he applies his ideas in practice

• The selection of an idea, thus, involves the application of research methodology by an entrepreneur.

4. Development of Management Skills:

• The work of an entrepreneur involves the use of managerial skills which he develops while planning, organizing, staffing, directing,
controlling and coordinating the activities of business.

• His managerial skills get further strengthened when he engages himself in establishing equilibrium between his organization and its
environment

• However, when the size of business grows considerably, an entrepreneur can employ professional managers for the effective
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 Cont’d
5. Overcoming Resistance to Change:

• New innovations are generally opposed by people because it makes them change their existing behavior patterns. An entrepreneur always first
tries new ideas at his level.

• It is only after the successful implementation of these ideas that an entrepreneur makes these ideas available to others for their benefit.

• In this manner, an entrepreneur paves the way for the acceptance of his ideas by others.

• This is a reflection of his will power, enthusiasm and energy which. helps him in overcoming the society's resistance to change.

6. Catalyst of Economic Development:

• An entrepreneur plays an important role in accelerating the pace of economic development of a country by discovering new uses of available
resources and maximizing their utilization.

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 Types of Entrepreneur
1. Innovating Entrepreneurs:

• Innovating entrepreneurs are dynamic and enthusiastic.

• They are interested in introducing new projects; using new raw materials trying new methods of production; discovering new
markets and re-organizing the enterprise.
• Such entrepreneurs are found only in developed economies.

Examples:
a) Amazon- Changing Retailing.
b) Uber – Changing the taxi business
c) Apple- Changed music and Customer electronics

2. Imitative Entrepreneurs:
Those who run their enterprise by imitating the successful innovations applied by innovative entrepreneurs.

• These entrepreneurs are ready to adopt successful innovating undertaken by innovative entrepreneurs.
• They themselves do not innovate new things but imitate methods, techniques and technologies which are successful in the
market.
• Such entrepreneurs are found in developing economies.

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 Cont’d
3. Fabian Entrepreneurs:
These entrepreneurs that are very careful in their approaches and cautious in adopting any changes. They are not prone to sudden
decisions and try to shy away from any innovations or change.

• They are very cautious in bringing any change in their enterprises.

• They are lazy and slow in adopting the changes. They avoid taking risks. They imitate the changes made by others only when
they feel that otherwise they lose the market or relative position in the market.

• They strongly believe in customs and traditions.

Example:
Kodak- Analog Cameras.

4. Drone Entrepreneurs:
These entrepreneurs who do not like any change. They are considered old school. They want to do business in their own traditional
or orthodox methods of production and systems. Such people attach pride and tradition to even outdated methods of doing
business.

• These entrepreneurs do not adopt any change.

• They are conservative in their outlooks. They continue with the old method at the cost of reduced turnover and market share.

• They purchased out of the market in long run.

Example:
Beedi – It is made by using bare hands. 8
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 Classification of Entrepreneurs

A. Based on B. Based on C. Based on D. Based on E. Based on the F. Based on the G. Based on

Type of the Technical Skill Motivation Growth person who Scale of the Gender
Business started the operations
Venture.
1. Trading 1. Technical 1. Pure 1. Growth- 1. First generation 1. Small 1. Men
Entrepreneurs Entrepreneurs Entrepreneurs oriented Entrepreneurs Entrepreneurs Entrepreneurs
entrepreneurs
2. Industrial Non- 2. Motivated 2. Not/ non 2. Entrepreneurs 2. Medium Scale 2. Women
Entrepreneurs Technical Entrepreneurs growth oriented by Inheritance Entrepreneurs Entrepreneurs
Entrepreneurs entrepreneurs.
3.Corporate 3. Large Scale
Entrepreneurs Entrepreneurs
4. Agricultural
Entrepreneurs

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 A. Based on Type of the Business;

1. Trading Entrepreneurs:

• Trading entrepreneurs are those who under take buying and selling activities. They are found in the distribution channel.

• They may be distributors, retailers, whole-sellers. The nature of work undertaken by them are slightly differs from one another.

For example, distributors would buy from the manufacturer and sell the same to the whole-sellers or retailers. While retailers buy
either from whole seller or distributor and sell the same to the customers.

Eg: Dmart

2. Industrial Entrepreneurs:

• Industrial entrepreneurs are those who undertake manufacturing activity.

• They identify the needs of the customers and conceive an idea of manufacturing a new product. They make use of technology
and economic resources to create a profitable venture.

• They are the owners of small industrial units who run establishments on their own with the help of new workers and assistants.

• Eg Godrej group, Patanjali Ayurved-Balkrishna

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3. Corporate Entrepreneurs:

• Individuals who promote big industrial establishments are called corporate entrepreneurs.

• The corporate undertakings started by them are registered under some statutes or Acts.

• Thus, the corporations will have separate legal status.

• Companies registered under the Companies Act and the trusts registered under the Trusts Act examples or corporate Undertakings.

Example: Azim Premji – Wipro

N R Narayana Murthy - Infosys

4. Agricultural Entrepreneurs:

• Individuals who undertake agricultural operations using modern mechanical devices and raise crops other than traditional ones may be called
agricultural entrepreneurs.

• They risk growing crop and experiment with new techniques to raise crops.

Example: Pramod Gautam

Sachin kale

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 B. Based on Technical Skill:

1. Technical Entrepreneurs

• Individuals who start business using their technical background called technical entrepreneurs.

• They produce product or provide service using technology.

• They are strong in technological aspects of their venture then in marketing or other aspects. They are comparatively innovative.

2. Non-Technological Entrepreneurs:

• People who undertake businesses without any technical education or background are called non-technical entrepreneurs.

• They exhibit their skill in marketing of the products and services.

• They may also undertake manufacturing with the help of technical staff recruited for that purpose.

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 C. Based on Motivation:

1. Pure Entrepreneurs:

• Individuals who have all qualities of an entrepreneur by birth are called pure entrepreneurs.

• They are self motivated and start business for their satisfaction.

• They are driven by economic rewards and opportunities provided by imbalances prevailing in the market.

• They enjoy freedom and do not like to work under the supervision of other.

Example: Dhirubai Ambani

T V Sundaram Iyengar

2. Motivated Entrepreneurs:

• Individuals who are induced to take up some business are called motivated or induced entrepreneurs.

• The urge to take up some venture comes from external forces or circumstances.

• The entrepreneurial training programmes, they attend or incentives offered by the government or the success achieved by
someone who is very close to them may motivate them to start their own enterprise.

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 D. Based on Growth
1. Growth-oriented Entrepreneurs:

• Individuals who would like to grow over a period by increasing the size of their business are called growth-
oriented entrepreneurs.

• They always look for new opportunities to utilise them for their favour.

• They would like to expand or diversify their business given an opportunity. They are ready to bear greater risk
and take things challenging

2. Not Growth Oriented Entrepreneurs:

• Individuals who do not want to expand their business further are called stable or not growth-oriented
entrepreneurs.

• They are happy with the present size and status of their business.

• Fear of losing control over activities or perceived uncertainty in the market or limited market for the product
may be the reasons for not expanding their business.

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 E. Based on the Person who Started the Venture:
1. First Generation Entrepreneurs:

• First generation entrepreneurs are those who started the business on their own efforts and skill.

• These people are entrepreneurs in the real sense.

• They will have all the qualities of an entrepreneur.

Example: Sunil Mittal – Bharati Group

2. Entrepreneurs by Inheritance:

• Those who inherited business from their parents or others are called" entrepreneurs by inheritance.

• Here the risk is comparatively less. But if the earlier generation have a left a name in the area of the business, these
entrepreneurs can shine even better.

Eg: Kavin Bharti Mittal - Bicycle Crankshafts.

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 F. Based on the scale of Operations:
1. Small Entrepreneurs:

• Individuals who carry on small operation on small scale are called small entrepreneurs.

• The investment made would be comparatively less. They use more of labours less or no technology.

• Production is limited & they generally cater to the needs of local people.

Eg: Local Bakery

2. Medium-scale Entrepreneurs:

• Medium Scale Entrepreneurs are bigger than small scale Entrepreneurs but smaller than large-scale entrepreneurs.

• Investment in technology and other resources more or less equal.

• They cater to bigger market comparatively.

Eg: Restaurants
Garages

3. Large scale Entrepreneurs:

• Group of individual who come to establish a large scale enterprises may be considered a large scale entrepreneurs.

• Heavy investment is made and mass production is undertaken.

• They cater to the needs of national and international markets.

Eg: Big Food Processing Industries

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G. Based on the Gender:
1. Men Entrepreneurs

2. Women Entrepreneurs

Other Type of Entrepreneurs:

1. Public Entrepreneurs:

• In many countries government itself established enterprises for the benefits of the society at large.

• As the government is the owner of such units they are called public enterprises. Here government acts as an entrepreneur.

2. Private Entrepreneurs:

• Entrepreneurs other than the government are called private entrepreneurs.

• Most of the entrepreneurs in our country are being run by private entrepreneur.

• The primary objective of private entrepreneurs is maximum profit.

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3. Forced Entrepreneurs:

Entrepreneurs who start enterprises on the external pressure may be called forced entrepreneurs.

People who do not get job which suits their qualification may start their own enterprises.

4. Artisan Entrepreneurs:

• Skilled person in rural areas are considered are artisan entrepreneurs.

• These people acquire their skill through inheritance and training since childhood.

• They are blacksmith, carpenter, shoemaker, potter, weavers, and like.

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 INTRAPRENEUR- AN EMERGING CLASS
• 'Intrapreneurs are the people working in big organizations holding key position. They are quite innovative and
bring many changes in products and the methods of production.

• They possess all the qualities of entrepreneurs. They have many new ideas which are converted into product or
service or anything that satisfies human wants or needs."

• But the main difference between entrepreneur and intrapreneur is the element of risk. The entrepreneur is
prepared to take-up risk while the intrapreneur does not take risk.

• The process of establishing Intrapreneurship within an existing organisation requires the commitment of
management, particularly top management.

• The organization must carefully choose leaders, develop general guidelines for ventures and delineate
expectations. Training sessions are an important part of the process.

• A system of incentive and reward should be also in place as a means of encouragement.

• This climate creates a person who develops into an Intrapreneur with all the skills, talents, ability etc that is
required to hold the reins of venture. Such people are now on the raise and are emerging as a class.
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The following may be the reasons:

i. Did venture out as entrepreneurs earlier in their life but could not take-off as they expected. Their failure seems to
make them abstain from taking risk.

ii. By nature do not want to assume risk at any cost. They are prepared to give their 100% efforts while there must
be some else to bear 100% risk.

iii. Elderly or those opted out of services (VRS) show signs of intrapreneurial skills by virtue of their experiences.

Eg: Sundar Pichai

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 CONCEPT OF ENTREPRENEURSHIP

• Entrepreneurship can be described as a process of action an entrepreneur undertakes to establish his

enterprise Entrepreneurship is a creative activity.

• It is the ability to create and build something from practically nothing.

• It is a knack of sensing opportunity where others see chaos, contradiction and confusion.

• Entrepreneurship is the attitude of mind to seek opportunities, take calculated risks and derive
benefits by setting up a venture.

• It comprises of numerous activities involved in conception; creation and running an enterprise.

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 Entrepreneurial Culture:

can be described as an environment where someone is motivated to innovate, create and take risks. An business, an
entrepreneurial culture means that employees are encouraged to brainstorm new ideas or products. When work
time is dedicated to these activities, it is called entrepreneurship.

→ As to generate spaces which highlight the figure of the individuals who have decided to start-up a business
initiative.

→ An Entrepreneurial organizational Culture (EOC) is a system of shared values, beliefs & norms of members of an
organization, including valuing creativity & tolerance of creative people, believing that innovating & seizing market
opportunities are appropriate behaviors to deal with problems of survival and prosperity, environmental
uncertainty & competitor's threats & expecting organizational members to be have accordingly.

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 Elements of Entrepreneurial culture:

• People and empowerment focused.

• Value creation through innovation & change

• Attention to the basics.

• Hands-on management.

• Doing the right thing.

• Freedom to grow & to fail.

• Commitment & personal responsibility.

• Emphasis on the future.

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 STAGES IN ENTREPRENEURIAL PROCESS

The process of starting a new venture is embodied in the entrepreneurial process, which involves more than just
problem solving in a typical management position. An entrepreneur must find, evaluate & develop an opportunity
by overcoming the forces that resist the creation of something new.

The process has four distinct stages.

1. Identification and evaluation of the opportunity.

2. Development of a business plan suiting opportunity.

3. Determination of the required resources.

4. Managing the resulting business enterprise.

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I. Identification & Evaluation of the Opportunities:

• Good business opportunities result from an entrepreneur's alertness to possibilities or in some cases, the establishment of
mechanism that identify potential opportunities.
• In this stage the entrepreneur needs to develop his thinking on the following aspects side by side.

a. Opportunity assessment.
b. Creation & length of opportunity.
c. Real & perceived value of opportunity.
d. Risk & returns involved in the opportunity.
e. Opportunity versus personal skill and goals.
f. Competitive environment.
g. National priorities & State's intentions.

• It is important to mention here that opportunity here could be of marketing a visible, tangible physical product service & may
involve technical logistics too.
• Sometimes technical oriented business opportunities are conceptualized while working on some other related or even
unconnected projects.
• It is also very pertinent to mention here that business opportunity or idea may spring up from consumers, business associates,
bankers, channel members, technical people, reports citations or demand- supply gap reports of the state etc.
• Whatever is the opportunity or source of idea opportunity analysis needs to be undertaken.
• Opportunity analysis, or what is frequently called an opportunity assessment plan, is a method for evaluating an opportunity. It
is not a business plan.
• Compared to a business plan, it should be shorter, focus on the opportunity not the venture and provide the basis for decision
making whether or not to act on the opportunity.

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 2. Developing Business Plan:
• A good business plan must be developed in order to explicit the defined opportunity. It is as good as a
preparation of a report.
• This is perhaps the most time consuming but an important process.
• An Entrepreneur usually would not have prepared a business plan before and may not have the resources
available to do a good job.
• Although the preparation needs lot of information & expertise the information varies from the type of product,
service or targeted consumers.
• The following are the important issues that are considered under the development of a business plan.

Develop a Report / Business Plan:

i. Title page
ii. Table of contents
iii. Executive Summary
iv. Major section:

a. Description of business
b. Technology plan
c. Marketing plan
d. Financial plan
e. Production plan
f. Organisation plan
g. Operational plan
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 3. Determine the Resources Required:
• This process starts with an appraisal of the entrepreneur's present resources.

• Any resources that are critical need to be differentiated from those that are just helpful.

• Care must be taken not to underestimate the amount and variety of resources needed.

• The downside risk associated with insufficient or inappropriate resources should also be assessed.

• Here resources would also mean the talent, skills, expertise, and knowledge, name of the sponsor besides usual
resources like men, money, machine, materials & management.

• It is in this phase that besides listing various resources side by side the suppliers are also listed.

• This ensures scientific approach such that an entrepreneur can structure a deal that enables the resources to re
acquired at the lowest possible cost and least loss of control.

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 4. Manage the Enterprise:

• This phase involves implementing a management style and structure, as well as determining the key variables for success.

• A control system must be established, so that any problem areas can be quickly identified and resolved.

• Some entrepreneurs have difficulty managing and growing the venture they created.

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 Creativity:
It is the process of making an idea your own by modifying something that already exists or combining ideas together to make
something satisfying.

THE ROLE OF CREATIVITY:

- High overall success.
- Increase Productivity.
- Exploit employee potential.
- Transcend boundaries.
- Encourage critical thinking.
- Foster innovation.

-Creativity is the development of a novel solution to a perceived problem.

-It can be defined as "the process of developing an original product, service or idea that makes a socially recognized contribution".
Hence creativity is the ability to bring new into existence.

-A creative person conceives an idea, which is new, it is immaterial whether he takes any action or not. Hence, the emphasis is on
the ability and not the activity of bringing anything new.

- Allows us to view and solve problems more openly and with innovation.

- Entrepreneur needs new ideas for setting up and running new business ventures. An entrepreneur who is creative and brings
his ideas into reality turns out to be successful in business.

- Creativity has also become important in the present highly competitive market where the business needs to differentiate itself
from others to survive.
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 Innovation:
Is an idea that has been transformed into practical reality. For a business, this is a product, process, or business concept, or
combinations that have been activated in the marketplace & produce new profits. & growth for the organization.

INNOVATION PROCESS

Step 1: Idea Generation and Mobilization:

• New ideas are created during idea generation. Successful idea generation should involve the pressure to compete and the
freedom to explore.
• Mobilization occurs when the idea is moved to a different logical or physical location.

Example:
For instance, how Apple waited three years after MP3 players were introduced to create the iPod, which was attractive, intuitive,
and offered capacity for up to 1,000 songs.

Step 2: Advocacy and Screening:

• Advocacy and screening help to evaluate the feasibility of a business idea with its potential problems and benefits.

• Hence, a decision can be made about an idea's future. Companies looking to develop a culture can establish a few best practices.

For instance, Employees should have plenty of avenues to receive advocacy and feedback. Also, organizations must understand the
difficulties involved in evaluating truly innovative ideas. Also, organizations need to build transparent evaluation and screening
protocols.

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Step 3: Experimentation:

• The experimentation stage tests the sustainability of ideas for an organization at a specific time.

• Experimentation generates new ideas with the information that is gathered on the results and feasibility of the original idea.

For instance, when Amazon tested its grocery delivery service in certain Seattle suburbs. After this, Amazon Fresh expanded to Los
Angeles, San Diego, and New York City.

Step 4: Commercialization:

• Commercialization develops market value for an idea by focusing on its impact. An important part is establishing the
specifications of any given idea.

• Commercialization is the stage that involves the change of focus developments to persuasion. After the idea is clarified and a
business plan is developed, it will be ready for diffusion and implementation.

Step 5: Diffusion And Implementation:

• Diffusion is the company-wide acceptance of an innovative idea, and implementation sets up everything needed to develop the
innovation.

• Diffusion and implementation allow the organization to determine the next set of needs for customers. Receiving feedback,
indicators for success metrics and other benchmarks enable the organization to stimulate the innovation process.

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 SOURCES OF NEW IDEAS

1. Consumers:

Potential entrepreneurs should always pay close attention to potential customers. This attention can take the form of informally monitoring potential
ideas and needs or formally arranging for consumers to have an opportunity to express their opinions. Care needs to be taken to ensure that the
ideas or need represents a large enough market to support a new venture.

• Potential entrepreneurs should continually pay close attention potential customers.

• This can be an informal or formal survey of consumers expressing their opinions.
• Be sure that the idea represents a large enough market.

2. Existing Products & Services:

Potential entrepreneurs and intrepreneurs should also establish a formal method for monitoring and evaluating competitive products and services on
the market. Frequently, this analysis uncovers ways to improve on these offerings that may result in a new product or services that has more market
appeal.

• Potential entrepreneurs should establish a formal method for monitoring and evaluating the products and services in the market.
• This may uncover ways to improve on present products, resulting in new product or service ideas.

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3. Distribution Channel:

Members of the distribution channel are also excellent sources for new ideas because of their familiarity with the needs of the
market.
Not only do channel members frequently have suggestions for completely new products, but they can also help in marketing the
entrepreneur's newly developed products.

• Because they are familiar with the needs of the market, channel members often have suggestions for new products

• These channel members can also help in marketing the new product.

4. Research & Development:

The largest source of new ideas is the entrepreneur's own R&D efforts. Here entrepreneur's own R&D would work on the
feedback or the changes in the tastes & preferences of customers and make relevant changes in the existing products to suit to
their latest preferences.

• The largest source for new ideas is the entrepreneur's own research and development.

• This can be a formal endeavor connected with one's current employment or an informal lab in the garage.

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5. Government:

The government's report on demand - supply gap of various goods services are enough to spark off ideas in the
minds of potential as well as progressive entrepreneurs.
Similarly products imported, the demand for the imported products, scope for indigenous manufacturing facilities
etc can spark off ideas in the same way.

Many a time the government sue-motto establishes forums/bodies that develop an index for probable area for
entrepreneurs.

The files of the Patent Office contain numerous new product possibilities.

a. The patents can suggest other new product ideas.

b. Several government agencies and publications, such as the Official Gazette, monitor Patent applications.

New product ideas can also come in response to government regulations.

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 METHODS OF GENERATING IDEAS

Idea generation can be a scientific process. Methods to generate new ideas include:

1. Brainstorming

2. Focus Groups

3. Surveys and Problem Inventory Analysis

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1. Brainstorming:

• Brainstorming allows people to be stimulated to greater creativity by participating in organized group exercises.

• When using brainstorming four rules are followed:

a. No criticism is allowed by anyone in the group.

b. Freewheeling is encouraged.
c. Quantity of ideas is desired.
d. Combinations and improvements of ideas are encouraged.

• Brainstorming sessions should be fun with no one dominating or inhibiting the discussion.

2. Focus Groups:

• Focus group interviews involve a moderator leading a group through an open in-depth discussion rather than
simply asking questions.

• The moderator focuses the discussion on the new product area in either a directive or nondirective manner.
•
The participants are stimulated by comments from other group members in developing a new product idea.

• The focus group is also an excellent method for initial screening of ideas and concepts.
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3. Problem Inventory Analysis.

• Problem inventory analysis uses individuals in a manner similar to focus groups, but
instead of generating new ideas, consumers are given a list of problems for a general
product category.

• They are then asked to identify products in this category that have those problems.

• It is often easier to relate known products to suggested problems in the creation of

new product ideas.

• Problem inventory analysis should be used primarily to identify product ideas for
further development.

• Results from product inventory analysis must be carefully evaluated as they may not
actually reflect a new business opportunity.
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 CREATIVE PROBLEM SOLVING

• Creative problem solving is important in identifying a new product, but personal creativity declines with age, education, lack of
use, and
Bureaucracy.

• Creativity generally declines in stages.

• Latent creative potential can be stifled by perceptual, cultural, emotional, and organizational factors.

Methods of creative problem solving:

1. Brainstorming:

• Brainstorming, the most widely used technique, can generate possible ideas about a problem in a limited time through
spontaneous contributions of. Participants.
•
Once the problem statement is prepared, 6 to 12 individuals are selected, with no group member being an expert in the field of
the problem. All ideas are recorded, with no criticism allowed.

2. Reverse Brainstorming:

• Reverse brainstorming is similar to brainstorming, except that criticism is allowed.

• Since the focus is on the negative aspects of a product or service, care must be taken to preserve group morale.

• The process usually involves identifying everything wrong with an idea, then a discussion of ways to overcome the problems.
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3. Brain Writing:

• Brain Writing is a form of written brainstorming.

• It is silent, written generation of ideas by a group of people.

• Participants write their ideas on special forms that circulate within the group

4. Gordon Method:

Gordon Method begins with group members not knowing the exact nature of the problem.

The entrepreneur starts by mentioning a general concept associated with the problem and the group responds with ideas.

The actual problem is then revealed, enabling the group to make suggestions for implementation.

5. Checklist Method:

• A new idea is developed through a list of related issues.

• The entrepreneur can use the list of questions to guide the development of an idea.

6. Free Association:

• One of the simplest methods to generate new ideas is free association.

• A word related to the problem is written down, then another, with each word adding something to the thought process.
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7. Forced Relationships:

• Forced relationships try to force relationships among some product combinations

The steps in the process:

a. Isolate the elements of the problem.

b. Find the relationships between these elements.

c. Record the relationship in an orderly form.

d. Analyze the relationships to find ideas.

e. Develop new ideas from these patterns.

8. Collective Notebook Method:

• A small notebook is prepared including a statement of the problem, blank pages, and background data.

• Participants consider the problem and its solution, recording ideas several times a day.

• A list or summary of the best ideas becomes the topic of a final creative focus group.
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9. Attribute Listing:

• Attribute listing is idea-finding technique requiring the an entrepreneur to list the attributes of a problem and look at each from
a variety of viewpoints

• Unrelated objects can be brought together to form new combinations and possible uses.

10. Big-Dream Approach:

The big-dream approach requires the entrepreneur to dream about the problem and its solution, thinking big.

Ideas should be conceptualized without any constraints.

11. Parameter Analysis:

• Parameter analysis involves parameter identification and creative synthesis.

• Parameter identification analyzes variables in the situation to determine their relative importance.

• The relationship between parameters that describe the underlying issues is examined and a solution developed (creative
synthesis.)
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