SV.

COLLEGE OF ENGINEERING:: KADAPA

ENTREPRENEURSHIP
Unit-I
Entrepreneurship:
The capacity and willingness to develop organize and manage a business
venture along with any of its risks in order to make a profit. The most obvious example of
entrepreneurship is the starting of new businesses.

In economics, entrepreneurship combined with land, labor, natural resources

and capital can produce profit. Entrepreneurial spirit is characterized by innovation and risk-
taking, and is an essential part of a nation's ability to succeed in an ever changing and
increasingly competitive global marketplace.

Entrepreneurship is the process of designing, launching and running a new business,

which is often initially a small business. The people who create these businesses are called
entrepreneurs.
Entrepreneurship has been described as the "capacity and willingness to develop,
organize and manage a business venture along with any of its risks in order to make
a profit". While definitions of entrepreneurship typically focus on the launching and running of
businesses, due to the high risks involved in launching a start-up, a significant proportion of
start-up businesses have to close due to "lack of funding, bad business decisions, an economic
crisis, lack of market demand—or a combination of all of these.
What is Entrepreneurship?
Entrepreneurship is the act of creating a business or businesses while building and scaling it to
generate a profit.

Definition of Entrepreneur:
 According to Oxford Dictionary “A person who sets up a business or businesses, taking on
financial risks with the hope of profit.”
 According to cotillion “Entrepreneur is the agent who purchased the means of production for
combination into marketable product.”
Characteristics of Entrepreneur:
 Facilitating Character: An entrepreneur must build a team, keep it motivated, and provide
an environment for individual growth and career development.
 Self-Confidence: Entrepreneurs must have belief in themselves and the ability to achieve
their goals.
 Work with Vision and Mission: An entrepreneur must be committed to the project with a
time horizon of five to seven years. No ninety-day wonders are allowed.
 High Degree of Endurance: Success of an entrepreneur demands the ability to work long
hours for sustained period of time.
 Trouble Shooting Nature: An entrepreneur must have an intense desire to complete task or
solve a problem. Creativity is an essential ingredient.
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 Initiative and Enterprising Personality: An entrepreneur must have initiative, accepting
personal responsibility for actions, and above all make good use of resources.
 Goal Setter: An entrepreneur must be able to set challenging but realistic goals.
 Calculated Risk-Taking Ability: An entrepreneur must be a moderate risk-taker and learn
from any failures.
 Highly Optimistic: Successful entrepreneur is always optimistic about his future and he is
never disturbed by the present problems. He always expects a favourable situation for his
business and hence, he is able to run his business successfully in the midst of temporary
hurdles.
 Innovativeness: Entrepreneur should be always innovative to satisfy the varying needs of
customers. For this purpose, the entrepreneur should initiate research and innovative
activities to produce new goods and services.
 Maintenance of Public Relations: A successful entrepreneur must have cordial relations
with his customers to gain their continued patronage and support.
Communication Skill: Communication skill is the secret of the success of most entrepreneurs.
Good communication skill enables them to put their points across effectively and with clarity
and thereby, helps them to win customers

10 Qualities of a Successful Entrepreneur or Traits of Entrepreneur:

Successful business people have many traits in common with one another. They are
confident and optimistic. They are disciplined self-starters. They are open to any new ideas
which cross their path here are ten traits of the successful entrepreneur.
1. Disciplined:
These individuals are focused on making their businesses work, and eliminate any
hindrances or distractions to their goals. They have overarching strategies and outline the tactics
to accomplish them. Successful entrepreneurs are disciplined enough to take steps every day
toward the achievement of their objectives.
2. Confidence:
The entrepreneur does not ask questions about whether they can succeed or whether they
are worthy of success. They are confident with the knowledge that they will make their
businesses succeed. They exude that confidence in everything they do.
3. Open Minded:
Entrepreneurs realize that every event and situation is a business opportunity. Ideas are
constantly being generated about workflows and efficiency, people skills and potential new
businesses. They have the ability to look at everything around them and focus it toward their
goals.
4. Self-Starter:
Entrepreneurs know that if something needs to be done, they should start it themselves.
They set the parameters and make sure that projects follow that path. They are proactive, not
waiting for someone to give them permission.

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5. Competitive:
Many companies are formed because an entrepreneur knows that they can do a job better
than another. They need to win at the sports they play and need to win at the businesses that they
create. An entrepreneur will highlight their own company’s track record of success.
6. Creativity:
One facet of creativity is being able to make connections between seemingly unrelated
events or situations. Entrepreneurs often come up with solutions which are the synthesis of other
items. They will repurpose products to market them to new industries.
7. Determination:
Entrepreneurs are not thwarted by their defeats. They look at defeat as an opportunity for
success. They are determined to make all of their endeavors succeed, so will try and try again
until it does. Successful entrepreneurs do not believe that something cannot be done.
8. Strong people skills:
The entrepreneur has strong communication skills to sell the product and motivate
employees. Most successful entrepreneurs know how to motivate their employees so the business
grows overall. They are very good at highlighting the benefits of any situation and coaching
others to their success.
9. Strong work ethic:
The successful entrepreneur will often be the first person to arrive at the office and the
last one to leave. They will come in on their days off to make sure that an outcome meets their
expectations. Their mind is constantly on their work, whether they are in or out of the workplace.
10. Passion:
Passion is the most important trait of the successful entrepreneur. They genuinely love
their work. They are willing to put in those extra hours to make the business succeed because
there is a joy their business gives which goes beyond the money. The successful entrepreneur
will always be reading and researching ways to make the business better.
Successful entrepreneurs want to see what the view is like at the top of the business
mountain. Once they see it, they want to go further. They know how to talk to their employees,
and their businesses soar as a result.
ENTREPRENEUR VS MANAGER:
The term ‘entrepreneur’ is often contrasted with the term ‘manager’, as they are the key
persons in an enterprise that help in the organisation, management, control and administration of
the company. An entrepreneur is a person with an idea, skills, and courage to take any risk to
pursue that idea, to turn it into reality. On the other hand, manager, as the name suggests, is the
person who manages the operations and functions of the organisation.

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BASIS FOR
ENTREPRENEUR MANAGER
COMPARISON

Meaning Entrepreneur refers to a person who Manager is an individual who takes

creates an enterprise, by taking financial the responsibility of controlling and
risk in order to get profit. administering the organization.

Focus Business startup Ongoing operations

Primary motivation Achievement Power

Approach to task Informal Formal

Status Owner Employee

Reward Profit Salary

Decision making Intuitive Calculative

Driving force Creativity and Innovation Preserving status quo

Risk orientation Risk taker Risk averse

ENTREPRENEUR VS INTRAPRENEUR:

BASIS FOR
ENTREPRENEUR INTRAPRENEUR
COMPARISON

Meaning Entrepreneur refers to a person who Intrapreneur refers to an employee of the

set up his own business with a new organization who is in charge of undertaking
idea or concept. innovations in product, service, process etc.

Approach Intuitive Restorative

Resources Uses own resources. Use resources provided by the company.

Capital Raised by him. Financed by the company.

Enterprise Newly established An existing one

Dependency Independent Dependent

Risk Borne by the entrepreneur himself. Taken by the company.

Works for Creating a leading position in the Change and renew the existing organizational
market. system and culture.
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Unit-I
7 Best Tools to Help Entrepreneurs to Take Decisions

There are several elements that contribute to the success of any business and one of them
is making the right decisions. There are so many decisions that must be made in running a
successful organization. In order to make the right decision, there are a number of tools that
entrepreneurs can use. However, the process of decision making may involve a number of steps.

Main Steps of Effective Decision-making:

1. Establish the specific decision: You cannot afford to generalize the process of decision
making. In order to find the right tool that will help you make the right decision, you need
clear on the decision that must be taken.

2. Gather the details: One of the most critical stages in making decisions is gathering the
relevant information. This can be through questionnaires, self-assessments and external
sources and so on.

3. Consider Alternatives: While looking at the various tools to help you take a decision, you
should have a provision for the alternatives that would help the company achieve the same
objective.

4. Weigh all factors: Take time to weigh all the critical factors, especially the information that
you have gathered. This will help you determine if you are taking the right direction.
Ultimately, the decision that you will take should be in line with the objectives of the
company and help solve some of the challenges that the company is facing.

5. Pick the best option: Once you have all factors in place and the various alternatives, you
should pick the best option. This is what makes entrepreneurs stand out, due to their ability
to make critical decisions.

6. Implement it: Do not stop at the point where the decision is made; take action to implement
it and watch out for the changes.

7. Evaluation: Most of the successful entrepreneurs will rescind any decision that is not
effective. You should review all the decisions after a while so as to check if the desired
results are being achieved. It would be illogical to uphold a decision that is not bringing the
desired gains to your organization.
With these few steps, you will be able to make practical decisions and help your
organization grow in leaps and bounds. There are a number of tools that you can use to be able to
take the right decisions.
Tools for Decision Making:
There are so many techniques that entrepreneurs can use to take up a decision. However, it
is important to note that while a particular tool may work in one organization, it may fail in
another. A whole range of factors need to be put into consideration before using a specific tool.

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There are instances where you will find that combining several techniques would be the ideal
situation. Here are some of the best tools for decision making:

1) Market Research
Marketing Reasearch is an essential tool, especially when you are gathering the
information before taking a decision. This will include analysis of the potential customers, state of
the market and the competition in the market among others. This is a strategic tool, which most
entrepreneurs rely on to make the right decision.

2) Decision Matrix
With this tool, you will critically analyze all the available options or alternatives of a
particular decision. This allows you to look at all the options and the factors that affect each. You
can use comparative analysis so that you can find the best option to help you in decision making.
This is one of the most critical tools for most organizations as it will help reveal the best strategy
and decision to take. Here is below an example of a decision matrix:
3) Cost-Benefit Analysis
With a cost-benefit analysis, you will take the time to assess all the costs that will be
involved in the decision taken and the benefits that the organization will gain from this. As a
result, entrepreneurs will go for the decisions that will have a greater benefit, in terms of the
overall net profits in the organization. The sole objective of any company is to make profits, and
as such, every decision taken should be towards that direction.
SWOT Analysis
The SWOT analysis is commonly used for strategic planning and eventual decision
making. Using SWOT analysis, entrepreneurs are able to maximize on the strengths of the
organization. The weaknesses are also considered in view of the available opportunities. The
organization will also consider the possible threats before taking any course of action. This is an
effective tool as it allows entrepreneurs to analyze the company from all possible angles before
taking a decision.
Conclusion
There are so many other tools that can be used by organizations to facilitate effective
decision making. As mentioned earlier, there may be instances where you might have to combine
a number of strategies so that you can achieve the best results for your organization. It is
important to review every decision that you have taken progressively so as to ensure that the
company is achieving the set objectives.

Ethics and Social Responsibility of Entrepreneurs

Business Ethics: A Brief Definition
Ethics is the branch of philosophy concerned with the meaning of all aspects of human
behavior. Theoretical ethics, sometimes called normative ethics, is about discovering and
delineating right from wrong. It is the consideration of how we develop the rules and principles
(norms) by which to judge and guide meaningful decision-making. Theoretical ethics is
supremely intellectual in character, and, being a branch of philosophy, is also rational in nature.
Theoretical ethics is the rational reflection on what is right, what is wrong, what is just, what is

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unjust, what is good, and what is bad in terms of human behavior. How we see 'ethical behavior'
- in terms of what is right and wrong - is guided by these definitions.

Business ethics (also corporate ethics) is a form of applied ethics or professional ethics
that examines ethical principles and moral or ethical problems that arise in a business
environment. It applies to all aspects of business conduct and is relevant to the conduct of
individuals and entire organizations.

Business ethics can be defined as written and unwritten codes of principles and values
that govern decisions and actions within a company. In the business world, the organization’s
culture sets standards for determining the difference between good and bad decision making and
behavior. In the most basic terms, a definition for business ethics boils down to knowing the
difference between right and wrong and choosing to do what is right. The phrase 'business ethics'
can be used to describe the actions of individuals within an organization, as well as the
organization as a whole.

Social responsibility: A Brief Note

Social responsibility is an ethical ideology or theory that an entity, be it an organization
or individual, has an obligation to act to benefit society at large. Social responsibility is a duty
every individual or organization has to perform so as to maintain a balance between the economy
and the ecosystem. A trade-off always exists between economic development, in the material
sense, and the welfare of society and the environment. Social responsibility means sustaining the
equilibrium between the two. It pertains not only to business organizations but also to anyone
whose action impacts the environment. This responsibility can be passive, by avoiding engaging
in socially harmful acts, or active, by performing activities that directly advance social goals.
This shows the various ways that companies can invest in being socially responsible and the
value those actions can bring to the company.

Social responsibility in business is also known as corporate social responsibility,

corporate responsibility, corporate citizenship, responsible business, sustainable responsible
business, or corporate social performance. This term refers to a form of self-regulation that is
integrated into different disciplines, such as business, politics, economy, media, and
communications studies.

Entrepreneurship v/s Ethics and social responsibility

Ethics and social responsibility are very important values in entrepreneurship ventures.
This is particularly essential in decision making process. Ethical conscience reminds
entrepreneurs to make trustworthy and profitable entrepreneurship decisions. Likewise, the social
responsibility component sought entrepreneurs to make entrepreneurial decisions that can
enhance benefits and repelling harms to the stakeholders.

The entrepreneur must establish a balance between ethical exigencies, economic

expediency, and social responsibility. A managers attitudes concerning corporate responsibility
tend to be supportive of laws and professional codes of ethics. Entrepreneurs have few reference
persons, role models, and developed internal ethics codes. Entrepreneurs are sensitive to peers
pressure and social norms in the community as well as pressures from their companies.
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While ethics refers to the “study of whatever is right and good for humans,” business
ethics concerns itself with the investigation of business practices in light of human values. The
word “ethics” stems from the Greek ethos, meaning custom and usage. Development of Our
Ethical Concepts Socrates, Plato, and Aristotle provide the earliest writings dealing with ethical
conceptions; earlier writings involving moral codes can be found in both Judaism and Hinduism.

Ethics and social responsibilities of an entrepreneur is certainly an important issue

considering the role of social responsibility in society and ethics in business. Social
responsibility is beneficial for business community and at the same time for global community.
Social responsibility is significant owing to the realism of globalization. The people of the
universe are becoming interconnected more owing to the advancement of technology,
transportation and communication. The world market economy is affecting not only services and
goods but values and ideas as well. Expansion on the global front, enhancing regulatory omission
and the factors which is responsible for creating awareness regarding the significance of making
for sectored, macro and operational hazards to both an organization’s and entrepreneur’s
competitive position and reputation. As small business owners and entrepreneurs, activities
which harm the people and the planet, will spoil the scope for your profits. For this reason there
is great significance for “triple bottom line” which is profits, planet and people.

While we are talking about the business ethics, there are three things that need
consideration:

(1) Avoid breaking criminal law in one’s work related activity

(2) Avoid action that may result in civil law suits against the company
(3) Avoid actions that are bad for the company image.
For example, an entrepreneur made a chemical that looks like a pesticide and he started
selling it like a pesticide in the market and earns the profit, this act is against the law.

Link between Ethics and Social Responsibility

You will probably note the link between business ethics and corporate social responsibility
(CSR). The two concepts are closely linked:
o A socially responsible firm should be an ethical firm
o An ethical firm should be socially responsible

However there is also a distinction between the two:

o CSR is about responsibility to all stakeholders and not just shareholders
o Ethics is about morally correct behavior

How do businesses ensure that its directors, managers and employees act ethically?
A common approach is to implement a code of practice. Ethical codes are increasingly popular –
particularly with larger businesses and cover areas such as:

* Corporate social responsibility

* Dealings with customers and supply chain
* Environmental policy & actions
* Rules for personal and corporate integrity
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20 good opportunities in India for entrepreneurs:
There is certainly no formula to become a successful entrepreneur. Some may succeed
and make good profits, others sink along the way. Which are the most lucrative sectors for
entrepreneurs? Here's a list of 20 good opportunities entrepreneurs can look at...

1. Tourism:
Tourism is a booming industry in India. With the number of domestic and international
tourists rising every year, this is one hot sector entrepreneurs must focus on. India with its
diverse culture and rich heritage has a lot to offer to foreign tourists. Beaches, hill stations,
heritage sites, wildlife and rural life, India has everything tourists are looking for.

But this sector is not well organised. India lacks trained professionals in the tourism and
hospitality sectors. Any business in this sector will thrive in the long run as the demand contuse
to grow every year. Foreign tourist arrivals during January-March were 15.63 lakh with a growth
rate of 12.8 percent, compared to 13.86 lakh during the first three months last year.

2. Automobile:
India is now a hot spot for automobiles and auto-components. A cost-effective hub for
auto components sourcing for global auto makers, the automotive sector is potential sector for
entrepreneurs. The automobile industry recorded a 26 per cent growth in domestic sales in 2009-

The strong sales have made India the second fastest growing market after China. India
being one of the world's largest manufacturers of small cars with a strong engineering base and
expertise, there are many segments that entrepreneurs can focus on in India's automobile and
auto components sector.

3. Textiles
India is famous for its textiles. Each state has its unique style in terms of apparels. India
can grow as a preferred location for manufacturing textiles taking into account the huge demand
for garments. Places like Tirupur and Ludhiana are now export hubs for textiles. A better
understanding of the markets and customers' needs can boost growth in this sector.
4. Social ventures

Many entrepreneurs are taking up social entrepreneurship. Helping the less privileged get
into employment and make a viable business is quite a challenge. There are many who have
succeeded in setting up social ventures. With a growing young population in rural areas who
have the drive and enthusiasm to work, entrepreneurs can focus on this segment.

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5. Software

India's software and services exports are likely to rise with export revenue growth
projected at 13 to 15 percent to hit about $57 billion by March 2011.
With one of the largest pool of software engineers, Indian entrepreneurs can set higher targets in
hardware and software development.

The information technology enabled services have contributed substantially to the

economy. With more companies outsourcing contracts to India, business to business solutions
and services would be required. Entrepreneurs can cash in on the rise in demand for these
services with innovative and cost effective solutions.

6. Engineering goods

India continues to be one of the fastest growing exporters of engineering goods, growing
at a rate of 30.1 per cent. The government has set a target of $110 billion by 2014 for total
engineering exports. Entrepreneurs must capitalise on the booming demand for products from the
engineering industry.
7. Franchising
India is well connected with the world. Hence, franchising with leading brands who
wants to spread across the country could also offer ample opportunities for young entrepreneurs.
With many small towns developing at a fast pace in India, the franchising model is bound to
succeed.

8. Education and Training

There is a good demand for education and online tutorial services. With good facilities at
competitive rates, India can attract more students from abroad. Unique teaching methods,
educational portals and tools can be used effectively to make the sector useful and interesting.
9. Food Processing
India's mainstay is agriculture. Entrepreneurs can explore many options in the food grain
cultivation and marketing segments. Inefficient management, lack of infrastructure, proper
storage facilities leads to huge losses of food grains and fresh produce in India.

Entrepreneurs can add value with proper management and marketing initiatives. The
processed food market opens a great potential for entrepreneurs be it fast food, packaged food or
organic food. Fresh fruits and vegetables too have a good demand abroad. A good network of
food processing units can help potential exporters build a good business.

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10. Corporate demands
There will be a good demand for formal attire with more companies opening their offices
in India. People who can meet this demand in a cost effective way can make a good business.
With corporate gifting getting very popular, this is also a unique business to explore.

11. Ayurveda and traditional medicine

India is well known for its herbal and ayurvedic products. With increasing awareness
about the ill-effects allopathic medicines, there will be a huge demand for cosmetics, natural
medicines and remedies.

12. Organic farming

Organic farming has been in India since a long time. The importance of organic farming
will grow at a fast pace, especially with many foreigners preferring only organic products.
Entrepreneurs can focus on business opportunities in this sector. There are many small-time
farmers who have adopted organic farming but the demand is still unmet, offering many
opportunities for those who can promote organic farming on a large scale.

13. Media

The media industry has huge opportunities to offer young entrepreneurs. With the huge
growth of this segment, any business in this field will help entrepreneurs reap huge benefits.
Television, advertising, print and digital media have seen a boom in business.
Digitisation, regionalisation, competition, innovation, process, marketing and distribution
will drive the growth of India's media and entertainment sector, according to Ficci.
14. Packaging
With China invading the markets with cheap plastic goods and packaging materials, there
is a good opportunity to develop good packaging materials to meet domestic and foreign
demand. There is a huge demand various sectors like agriculture, automotive, consumer goods,
healthcare infrastructure and packaging sectors for plastics.

15. Floriculture

India's floriculture segment is small and unorganized. There is a lot to be done in this
lucrative sector. The global trade in floriculture products is worth $9.4 billion. With a 8 per cent
growth, it is expected to grow to $16 billion by 2010. India's share in world trade is just 0.18 per
cent.

This is a huge market to be tapped considering the rising demand for fresh flowers. More
awareness and better farming and infrastructure can boost exports.
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16. Toys

Another evergreen industry is toy manufacturing. India has potential to manufacture cost
effective and safe toys for the world. With Chinese toys being pulled up for toxins, the market
for safe and good quality toys beckons Indian entrepreneurs.

17. Healthcare sector

India's healthcare sector is dismal. The private sector can play a vital role in developing
this sector. With medical tourism also gaining momentum, the sector can attract foreigners who
are looking for cost effective treatment in countries like India.
18. Biotechnology

After the software sector, biotechnology opens a huge potential. Entrepreneurs can look
at a plethora of options with the application of biotechnology in agriculture, horticulture,
sericulture, poultry, dairy and production of fruits and vegetables.
19. Energy solutions
In a power starved nation, the need to develop cost effective and power saving devices is
gaining more significance. There is a huge demand for low-cost sustainable energy saving
devices as well.

The government has already unveiled the National Solar Mission which has set a target of
20,000 MW of solar generating capacity by the end of the 13th Five Year Plan.

Prime Minister Manmohan Singh had urged the industry to see the huge business
opportunity and set up 'Solar Valleys' on the lines of the Silicon Valleys. These solar valleys can
become hubs for solar science, solar engineering and solar research, fabrication and
manufacturing. So there is a big opportunity for entrepreneurs in this sector as well.

20. Recycling business

E-waste will rise to alarming proportions in the developing world within a decade, with
computer waste in India alone to grow by 500 per cent from 2007 levels by 2020, according to a
UN study. This sector opens a viable business opportunity for entrepreneurs in terms of e-waste
management and disposal.

Sources of new ideas for Entrepreneurs;

Entrepreneurs frequently use the following sources of ideas:

1. Consumers– the potential consumer should be the final focal point of ideas for the
entrepreneurs. The attention to inputs from potential consumers can take the form of informally

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monitoring potential ideas or needs or formally arranging for consumers to have an opportunity
to express their concerns. Care needs to be taken to ensure that the new idea or the needs
represents a large enough market to support a new venture.

2. Existing Companies– with the help of an established formal methods potential entrepreneurs
and intrapreneurs can evaluate competitive products & services on the market which may result
in new and more market appealing products and services.

3. Distribution channels– members of the distribution channels are familiar with the needs of
the market and hence can prove to be excellent sources of new ideas. Not only do the channel
members help in finding out unmet or partially met demands leading to new products and
services, they also help in marketing the offerings so developed.

4. Government– it can be a source of new product ideas in two ways firstly, the patent office
files contain numerous product possibilities that can assist entrepreneurs in obtaining specific
product information, and secondly, response to government regulations can come in the form of
new product ideas.

5. Research & development– Entrepreneur’s own R&D is the largest source of new idea. A
formal and well-equipped research and development department enables the entrepreneur to
conceive and develop successful new product ideas.

Short Note on The Three Stages of Successful Ideation:

Ideas are things that come and go and fairly frequently too. However, the really great
ideas usually spring unexpectedly in moments of inspiration. It becomes easier to come up with
great ideas when we free ourselves from the mundane, everyday, conventional thoughts that take
up the thought space in our brain.
An organization needs to follow three main stages namely generation, selection and
implementation for successful ideation.
Stage #1: Generation:
For a lot of companies, making use of ideation to address a specific problem or
requirement is frequently a good starting point. The majority of companies can easily identify
these kinds of needs – the main decision is whether they contribute to an ideation approach.
After problem-solving, come two other key chances for utilizing ideation: core competencies and
consumer insights.
Core competencies, in reference to ideation, have to do with leveraging ideation to
develop upon a company’s abilities. In this kind of ideation, the organization is looking for fresh
applications or new markets for existing services/products.
Consumer insights, with reference to ideation, have to do with utilizing principles of
conventional market research (for example: focus groups and surveys) and implementing them in
the context of a joint idea-sharing milieu. Surveys are effective though there are a few
drawbacks: respondents would not be able to view other replies (to vote up/down or comment)
and the response rates are usually pretty low. Even focus groups are effective though they fail to

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reach the heights of online ideation owing to factors such as price constraints that hinder them
from accessing a bigger participant pool.
Stage #2: Selection:
Picking the best ideas starts much before the beginning of the ideation process. It is
essential that you fix the criteria by which the ideas are to be assessed, who would be responsible
for evaluating the ideas, and how the top ideas would be given to the concerned internal teams
for further assessment or execution. A proper selection process begins with the use of tags or
labels to arrange the ideas into meaningful clusters. An example would be labels being arranged
along product lines (such as phone, laptop, tablet) and tags being a level lower, concentrating on
attributes (easy navigation, portable, long battery life, lightweight) and/or on features (display,
operating system, interface). Labeling and tagging should be followed by prioritization to be
certain that the most essential ideas reach the stage of application/execution.
Stage #3: Implementation:
The success of implementation is dependent on an organization’s ability to choose the top
ideas and take action based on them. It also depends on the organization having appropriate
workflows in place so that the right groups take part at the appropriate time in the three steps of
the ideation process. The makeup of these workflows (that call out particular roles and aspects of
responsibility) is very essential for organizations if they are to start any ideation endeavor. The
people in the roles called out should be ready to take in new ideas that don’t come from within
the company and possibly can be incentivized or otherwise acknowledged for their readiness to
implement the new approach.

18 Killer Idea Generation Techniques:

1. SCAMPER:

SCAMPER is an idea generation technique that utilizes action verbs as stimuli. It is a well-
known kind of checklist developed by Bob Eberie that assists the person in coming up with ideas
either for modifications that can be made on an existing product or for making a new product.
SCAMPER is an acronym with each letter standing for an action verb which in turn stands for a
prompt for creative ideas.

 S – Substitute
 C – Combine
 A – Adapt
 M – Modify
 P – Put to another use
 E – Eliminate
 R – Reverse

2. Brainstorming:

This process involves engendering a huge number of solutions for a specific problem
(idea) with emphasis being on the number of ideas. In the course of brainstorming, there is no
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assessment of ideas. So, people can speak out their ideas freely without fear of criticism. Even
bizarre/strange ideas are accepted with open hands. In fact, the crazier the idea, the better.
Taming down is easier than thinking up.

Frequently, ideas are blended to create one good idea as indicated by the slogan “1+1=3.”
Brainstorming can be done both individually and in groups. The typical brainstorming group
comprises six to ten people.

3. Mind mapping:

Mindmapping is a graphical technique for imagining connections between various pieces

of information or ideas. Each fact or idea is written down and then connected by curves or lines
to its minor or major (previous or following) fact or idea, thus building a web of relationships. It
was Tony Buzan, a UK researcher, who developed the technique “mind mapping” discussed in
his book ‘Use your Head’ (1972). Mind mapping is utilized in brainstorming, project planning,
problem solving and note taking. As is the case with other mapping methods, the intention
behind brain mapping too is to capture attention and to gain and frame information to enable
sharing of concepts and ideas.

To get started with mind mapping, the participant just has to write a key phrase or word
in the middle of the page. Then, he must write anything else that comes to his mind on the very
same page. After that, he must try to make connections as mentioned in the previous paragraph.

4. Synectics:

Synectics is a creative idea generation and problem solving technique that arouses
thought processes that the subject may not be aware of. It is a manner of approaching problem-
solving and creativity in a rational manner. The credit for coming up with the technique which
had its beginning in the Arthur D. Little Invention Design Unit, goes to William J.J. Gordon and
George M. Prince.

The Synectics study endeavored to investigate the creative process while it is in progress.
According to J.J Gordon, three key assumptions are associated with Synectics research.

 It is possible to describe and teach the creative process

 Invention processes in sciences and the arts are analogous and triggered by the very same
“psychic” processes
 Group and individual creativity are analogous

5. Storyboarding:

Storyboarding has to do with developing a visual story to explain or explore. Storyboards

can help creative people represent information they gained during research. Pictures, quotes from
the user, and other pertinent information are fixed on cork board, or any comparable surface, to
stand for a scenario and to assist with comprehending the relationships between various ideas.

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6. Role playing:

In the role playing technique, each participant can take on a personality or role different
from his own. As the technique is fun, it can help people reduce their inhibitions and come out
with unexpected ideas.

7. Attribute listing:

Attribute listing is an analytical approach to recognize new forms of a system or product

by identifying/recognizing areas of improvement. To figure out how to enhance a particular
product, it is broken into parts, physical features of each component are noted, and all functions
of each component are explained and studied to see whether any change or recombination would
damage or improve the product.

8. Forced relationships:

It is an easy technique involving the joining of totally different ideas to come up with a
fresh idea. Though the solution may not be strictly unique, it frequently results in an assortment
of combinations that are often useful. A lot of products we see today are the output of forced
relationships (such as a digital watch that also has a calculator, musical birthday cards and Swiss
army knife). Most of these ideas may not be revolutionary discoveries but they are still
advantageous products and usually have a prospective market in society. Robert Olson provided
an example for forced analogy in his book ‘The Art of Creative Thinking.’ He compares
different aspects of a corporate organization structure to the structure of a matchbox.

9. Daydreaming:

Though mostly not met with approval, daydreaming is truly one of the most fundamental
ways to trigger great ideas. The word “daydream” itself involuntarily triggers an uninhibited and
playful thought process, incorporating the participant’s creativity and resourcefulness to play
around with the present problem. It enables a person to establish an emotional connection with
the problem, which is beneficial in terms of coming up with a wonderful idea. The focus of
productive daydreaming is a particular goal irrespective of whether it seems to be an impractical
task. Plenty of famous inventors have engaged in daydreaming in the past, thereby setting off
ideas that contributed to life altering inventions. The airplane is the most notable example for
this. If the Wright brothers had not let their imagination run wild thinking about flight, we would
probably still be traveling by ferry.

10. Reverse thinking:

As the term ‘reverse thinking’ itself suggests, instead of adopting the logical, normal
manner of looking at a challenge, you reverse it and think about opposite ideas. For example:
‘how can I double my fan base?’ can change into ‘how do I make sure I have no fans at all?’ You
may notice that the majority of participants would find it easier to produce ideas for the ‘negative
challenge’ simply because it is much more fun. However, don’t spend too much time on the
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reverse idea-generation – about 10 to 15 wrong ideas is fine. After one session is over, you can
either continue in the reverse idea atmosphere with a new challenge or else do the reversal once
more to make it stronger. An example for the latter is “I am never going to update any of my
social networks” changing into “I am going to always update all of my social networks.”

11. Accidental genius:

Accidental genius is a relatively new technique that utilizes writing to trigger the best
ideas, content and insight.

15. Brain writing:

Brainwriting is easy. Instead of asking the participants to shout out ideas, they are told to
pen down their ideas pertaining to a specific problem or question on sheets of paper, for a small
number of minutes. After that, each participant can pass their ideas over to someone else. This
someone else reads the ideas on the paper and adds some new ones. Following another few
minutes, the individual participants are again made to pass their papers to someone else and so
the process continues. After about 15 minutes, you or someone else can collect the sheets from
them and post them for instant discussion.

9 Strategies Entrepreneurs Can Use for Creative Problem Solving:

On the surface, entrepreneurship seems like a left-brained activity. You have to be
familiar with business concepts, raw logic, objectivity, and analysis if you want to survive in the
hyper-competitive entrepreneurial world. But at the same time, there’s a lot of creativity
demanded of entrepreneurs.
Without that creativity, you’ll have a hard time getting anywhere. The truth is, creativity
is a necessity if you want your business to thrive. It’s not something that can be forced, but can it
be encouraged?

The Importance of Creativity:

You might be wondering why creativity is so important in the business world,

which thrives on logic and order almost by definition. Take a look at these potential
applications as a small sample:
 Solving problems. Some problems can’t be solved through blunt force. You’ll need to
find a tangential or non-linear solution to conquer them, and only creativity can help you
overcome that barrier.
 Improving ideas. Everything in your business has the potential to be improved, from
your core product to your operations processes and customer service. Creativity can help
you find those modes of improvement.

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 Generating new ideas. The best ideas are born from spontaneous creativity, whether
that’s a new product or a new arm of your business. The more of these ideas you can
generate, the more your business can grow and prosper.
 Contagiousness. When you express and favor more creativity, it’s easy for it to spread to
your teammates. More people on your team thinking more creatively means the
brainpower of your organization will multiply many times over.
How to Encourage Creativity
In any scenario, you can encourage your creative development with these ongoing strategies:
1. Work in different environments.
Sometimes, all you need to get the creative juices flowing is a different environment.
Instead of confining yourself to the office or your desk at home, try working someplace new. Go
to a communal office space in your city, or head out to a coffee shop to get a few hours of work
done. You could even try working while commuting, if possible. The key is to expose yourself to
new sights and sounds to get your brain running in new directions.
When trying to solve complex problems at OptinMonster, I find working in different
environment seems to be the best for boosting creativity.
2. Hang and feature art.
Artwork engages your senses and will get you thinking in new, abstract ways. If you can,
opt for more abstract forms of art, which aren’t directly or objectively interpretable. These might
include expressionist paintings or modern sculptures. Consider decorating your office and desk
with these, and gaze at them whenever you need to be inspired.

3. Play music.
Playing background music, or getting involved in music yourself with an instrument or
your voice can do wonders for your creative faculties. You’ll be exposed to new ideas and
indirect, abstract forms of thought and emotion that you can incorporate in fluid, formless ways.
Try working with and without music—you’ll see it makes a big difference.
4. Produce scents.
You may not think of scents as boosters of creativity, but they can be very powerful. Try
filling your office with strong scents like lavender or peppermint, which are thought to increase
brain power. Together with more art and music, you’ll be stimulating three of your five senses,
which can facilitate more abstract thinking collectively, and induce greater feelings of relaxation.

5. Talk to lots of people.

Sometimes, just talking to other people can make you more creative. Find unique people,
preferably ones who are better than you in some area, and ask them lots of meaningful questions
about who they are and what they do.
This experience will expose you to a new type of vocabulary, new thought patterns, and
new ideas. You’ll incorporate these into your mind and potentially apply them to future
situations.

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6. Read frequently.
Talking to people exposes you to new ideas, perspectives, and vocabularies, but reading
books takes it to another level.
Both fiction and non-fiction books can help broaden your horizons and expand your
mind, so try not to limit yourself to only one form or genre. Plus, reading non-fiction will likely
help you in other ways in your course of entrepreneurship, such as giving you building blocks for
your business or teaching you valuable lessons of leadership.
A good entrepreneurship book to read: Hard Things About Hard Things by Ben Horowitz.
A fun fiction book to read: Ready Player One by Ernest Cline
7. Never turn down an idea.
When it comes to making yourself more creative, quantity actually matters more than
quality. Most people aren’t “creative” simply because they filter out the majority of the ideas
they judge as bad or not worth pursuing.
Fight back against this filter by accepting all of your ideas, even the weird or crazy ones,
and exploring them. You’ll likely find that many of the ideas you were about to throw away
actually have strong potential, and if you just spend a little extra time developing them, they can
turn into something extraordinary.
8. Exercise your mind.
Keep your mind active by engaging in hobbies and exercises that encourage you to
engage your creative faculties. For example, you could try the “30 circles” test, which
encourages participants to draw 30 circles on a sheet of paper, then try to adapt each one into a
unique object or illustration. As a simpler measure, you could simply try doodling, or play word
games to get your thoughts moving.
9. Get bored.
You may not realize it, but boredom is more than just beneficial for creativity, it may
even be necessary. When you’re bored, the focal portions of your brain are less active, and the
“background” processes can start taking over, helping you process earlier stimuli and piece
together thought fragments you wouldn’t be able to force naturally.
Give your mind time to decompress and achieve this state regularly, with breaks and
vacations, and through exercises like meditation or deep breathing.
These strategies should, collectively, give you a better platform for creative thought. You
might not turn yourself into the next Mozart or Van Gogh, but you’ll equip yourself with more
abstract, creative patterns to solve problems and come up with new ideas—exactly what your
business needs.
Product Planning and Development Process:
Once ideas emerge and are analyzed through the opportunity analysis plan, they will need
further development and refinement. This refining process—the product planning and
development process—is divided into five major stages: idea stage, concept stage, product
development stage, test marketing stage, and commercialization. These stages result in the start
of the product life cycle.

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5 Types of Entrepreneurs: Understanding The Unique Differences

Entrepreneurs turn bold ideas into reality. They create jobs and contribute to the economy
but there are different types of entrepreneurs and each type tends to choose their own path based
on their personality, abilities and surroundings.

The types of entrepreneurs vary depending on background, country and even sector but the 5
most common types are:

 Innovators
 Hustlers
 Imitators
 Researchers
 Buyers

Each of these different types of entrepreneurs has their own rules for success in business but
most entrepreneurs go through very similar struggles in terms of finance, marketing, people and
even managing themselves. Because of this, we have created the Lonely Entrepreneur
community to guide you with the coaching, knowledge, community, support, and tools you need
to thrive.

The 5 Types of Entrepreneurs

Let’s take a look at some different types of entrepreneurs, their roles, and how each type
affects the success of the business:

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1. Innovators:

Innovators are the types of entrepreneurs who come up with completely new ideas and
turn them into viable businesses.

In most cases, these entrepreneurs change the way people think about and do things. Such
entrepreneurs tend to be extremely passionate and obsessive, deriving their motivation from the
unique nature of their business idea.

Innovative entrepreneurs also find new ways to market their products by

choosing product differentiation strategies that make their company stand out from the crowd.
And sometimes it is not just standing out from the crowd but actually creating a new crowd.

To say that innovators like Steve Jobs, Larry Page of Google and Microsoft founder Bill Gates
were obsessed with their business would be an understatement.

Advantages of Being An Innovate Entrepreneur:

 Get all the glory for the success of the business (and take all the arrows)
 Create the rules
 Face minimal competition during the initial days
Disadvantages of Being An Innovate Entrepreneur:

 You will need a lot of capital to bring a new idea to life

 Often face resistance from shareholders
 The timeframe for success is longer
The ability of an innovative entrepreneur to envision a new way of thinking makes them stand
out from the crowd and wildly successful in many cases however it takes significant capital,
patience and commitment to bring true innovation to life.

2. The Hustler Entrepreneur

Unlike innovators whose vision is the gas in their engine, hustlers just work harder and are
willing to get their hands dirty. Hustlers often start small and think about effort – as opposed to
raising capital to grow their businesses. These types of entrepreneurs focus on starting small with
the goal of becoming bigger in the future.

Hustlers are motivated by their dreams and will work extremely hard to achieve them. They tend
to be very focused and will get rid of all forms of distractions, favoring risks over short-term
comfort.

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A perfect example of a hustler is Mark Cuban. He started in business very young selling trash
bags, newspapers and even postage stamps and this hustle later created a goldmine which was
acquired by internet giant Yahoo!

Advantages of Being A Hustler

 They will outwork most

 Tend to have thick skin – they don’t give up easily
 See disappointment and rejection as just a step in the process
Disadvantages of Being A Hustler

 Usually prone to burn out

 Wear out their team members who don’t have the same work ethic
 Often don’t see the value of raising capital as opposed to just working harder
Even though many hustlers never give up, a lot of them are willing to try anything to succeed
which unfortunately means that they have a lot of hits and misses. Achieving their dreams takes
a lot longer than most other types of entrepreneurs.

3. Imitators

Imitators are the types of entrepreneurs who copy certain business ideas and improve upon them.
They are always looking for ways to make a particular product better so as to gain an upper hand
in the market.

Imitators are part innovators and part hustlers who don’t stick to the terms set by other people
and have a lot of self-confidence.

Advantages of Imitators

 Refining a business idea is easier and less stressful

 You can easily benchmark your performance with the original idea
 Can learn and avoid mistakes that were made by the originator
Disadvantages of Imitators

 Their ideas are always compared to the original idea

 Always have to play catch-up
Taking an existing idea and refining and improving it can be a great way to develop a business. It
certainly does not have as much risk as the innovator but it might just not be as sexy.

4. Researcher
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Even after having an idea, researchers will take their time to gather all the relevant information
about it. To them, failure is not an option because they have analyzed the idea from all angles.

Researcher entrepreneurs usually believe in starting a business that has high chances of
succeeding because they have put in detailed work to understand all aspects.

As a result, these types of entrepreneurs usually take a lot of time to launch products to make
decisions because they need the foundation of deep understanding. These entrepreneurs rely
much more on data and facts than instincts and intuition.

For a researcher, there should be no room for making mistakes.

Advantages of Being a Researcher Entrepreneur

 Plan for as many contingencies as possible

 Write detailed, well-thought-out business and financial plans
 Focus on data and information rather than gut feeling
 Won’t start unless they feel like they know the market
 Will minimize the chances of failing in the business
Disadvantages of Being a Researcher Entrepreneur

 Typically moves slow

 Doesn’t like risk and that can hamper progress in a new venture
Even though these types of entrepreneurs spend a lot of time researching and digging into the
data to ensure the success of their business, they can fall into the habit of obsessing over the
numbers and focusing less on the running of the business.

Jeff Bezos has spoken against this in a recent letter to shareholders where he asserted that “Most
decisions should probably be made with somewhere around 70% of the information you wish
you had”.

5. Buyers

One thing that defines buyers is their wealth. These types of entrepreneurs have the money and
specialize in buying promising businesses.

Buyer entrepreneurs will identify a business and assess its viability, proceed to acquire it and
find the most suitable person to run and grow it.

Advantages of being a Buyer

 Buying an already established venture is less risky

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 Doesn’t have to worry so much about innovation
 Can focus on building on something that has already gone through building a foundation
 Already has a market for your products
Disadvantages of being a Buyer

 Usually pays a high price for good businesses

 Will face the risk of buying businesses that have problems that you think you can turn
around

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