The Creativity and Innovation in Entrepreneurship

Entrepreneurship Courses
Lecturer: Aditya Rinaldi, S.Pd.,M.Pd.

GROUP 5
Anindita Fachrunnisa Firly Aulia Almadani
(1810631060218) (1810631060062)
Hafidz Dardarulloh Faishol Talia Milania Apsari
(1810631060110) (1810631060137)
Wisnu Adi
(1810631060075)

English Education Program

Faculty of Teaching Training and Education
Singaperbangsa University
 Innovation
Definition of Innovation
According to the Indonesian Dictionary, the word 'innovation' has the meaning of a
new discovery that is different from existing or previously known ones (ideas, methods, or
tools). Meanwhile, the word 'innovative' means introducing something new.
Innovative is a word to characterize innovation itself. That is, a work of innovation will be
referred to as an innovative work.

Forms of Innovation and Characteristic Feature

Forms of Innovation:

 product innovation
 education
 public services
 technology
 culture

Characteristic feature:

 Challenges status quo

 Curious
 Self-motivated
 Visionary
 Entertains the fantastic
 Takes risks
 Peripatetic
 Playful/humorous
 Self-accepting
 Flexible/adaptive
 Makes new connections
 Reflective
 Recognize patterns.

Types of Innovation
The type of innovation is divided into 5 types that are very important for an
entrepreneur, these types are:
1) Introduction of new goods or improvement of existing goods.
2) Introduction of new production methods.
3) The opening of new markets, especially export markets or new areas.
4) Creation/supply of raw or semi-finished materials.
5) The creation of a new form of industrial organization.

Technique of Developing Innovation

1) There is a sense of wanting to find or create new discoveries
 2) Developing innovation should be based on research, because a company is said to be
innovative if it deliberately builds and carries out a process to produce the latest
findings. The innovation must be something revolutionary, can penetrate the global
market, and get very tough competition.
The Importance of Innovation in Entrepreneurship
There are 5 types of innovation that are important for entrepreneurs to do, namely:
1. Introduction of new goods or improvement of existing goods.
This is so that we can get more attention to consumers by offering new things or
improvements from existing goods on the market into something more attractive and has
more reliability.
2. New product method introduction
The method of recognizing consumers needs to keep up with the times so that they can get
more attention in a wider market segment. For example, you can use social media as a place
to introduce a product.
3. The opening of new markets, especially export markets or new areas.
Always looking at a wider market and getting out of comfort is a step that can be taken so
that you can get new target markets, for example, the export market. This aims to open a
wider segment and be able to introduce products abroad so that they become additional
foreign exchange materials for the country.
4. Creation of supply of raw or semi-finished materials.
Procurement of raw and semi-finished raw materials must be maximized for the realization of
production that can meet the market segment.

Characteristics of Innovation
Rogers (1983), suggested 5 characteristics of innovation:
1. Relative advantage
Relative advantage is the degree to which an innovation is perceived to be better/superior
more than it has ever been. This can be measured from several aspects, such as in terms of
economy, social prestige, comfort, and satisfaction. The greater the relative advantage
perceived by the adopter, the faster the innovation can be adopted.
2. Compatibility
Compatibility is the degree to which the innovation is perceived as consistent with the
prevailing values, past experiences, and needs of the adopters. For example, if a particular
innovation or new idea does not conform to the prevailing values and norms, it cannot be
adopted as easily as it is with the compatible innovation.
3. Complexity
Complexity is the degree to which an innovation is perceived as difficult to understand and
use. There are certain innovations that are easily understood and used by adopters and some
are the other way around. The easier it is for adopters to understand and understand, the faster
an innovation can be adopted.
4. Trialability
Trialability is the degree to which an innovation can be tested to some extent. An innovation
that can be piloted in a real setting will generally be adopted more quickly. So, in order to be
quickly adopted, an innovation must be able to express its advantages.
5. Observability
Observability is the degree to which the results of an innovation can be seen by others. The
easier it is for someone to see the results of an innovation, the more likely that person or
group of people will adopt it.

Creativity
Definition of Creativity
In entrepreneurship, there is something very important to make our business progress,
namely creativity. Creativity is a person's ability to create ideas or products in dealing with
situations as problem-solving. According to Sadiq (2010) creativity is a way to find an idea or
a new method for a renewal. Having a similar creative understanding, James R. Evans (1994)
explains that creativity is an ability to form new things when looking at a subject from a new
perspective, and then getting combinations of concepts in the form of ideas. In
entrepreneurship, it can be interpreted as creativity or the ability to grow ideas or ideas that
form new things.

The Characteristics of Creative Person

 Full of energy but focused
 Smart but naive
 Likes to play but stay disciplined
 Dreamer but realistic
 Extroverts and introverts
 Not satisfied with one achievement
 Conservative but rebel
 Objective and not anti-critic

How to be A Creative Person

• Making room for failure. If we are afraid of failure, then we will never try. Every
failure will teach us a lesson to be better.
• Encourage curiosity, curiosity to try something new will generate ideas that have not
existed before.
• Seeing problems as challenges, People who see an obstacle as an opportunity will
give them something new and profitable.
 • Uniting diversity, differences will show different things than others and will produce
new ones.
• Find out what is needed, needs sought by society will be useful and desired by many
people.

Aspects of Creativity
In creativity, there are 2 important aspects such as process and human.
1) Process
A goal-oriented process designed to achieve a solution to a problem.
2) Human
Humans are the resource that determines the solution as well as the creator of innovation. The
process may remain the same, but the approach used may vary. Between one entrepreneur
and another, there must be different ways or strategies in building their business. This method
or strategy determines the final result. The more creative people use the opportunities that
exist, the better the results of the business they run.

Stages in the creative process

According to Wallas (Solso, 1995) stages in creative thinking are divided into 4 phases:
Preparation Phase, Incubation Phase, Illumination Phase, and Verification Phase.

Number Stages in the creative process Description

1 Preparation phase - The collection of
information/data to solve
problems becomes a capital of
knowledge and experience that
is useful in solving problems
- The mind explores various
alternatives in uncertain
directions
2 Incubation phase - Temporarily escape from the
problem
- Not thinking consciously, but
imagining it, it is important to
seek inspiration
3 Illumination phase - Stage of gaining intuitive
understanding or the emergence
of new inspiration or ideas
4 Verification phase - New ideas or creations that
appear are tested
- Tested against reality, critical
thinking emerges
- Spontaneous thinking and
attitude must be followed by
 - selective/deliberate thinking
- Overall justification must be
followed by criticism
- A hunch must be followed by
logical thinking
- Courage must be followed by
caution.
Source: Wallas (Kiswandono, 2000).

An important process in the preparation stage is to reformulate what is the subject of the
problem. In the incubation stage, a person intentionally temporarily does not think about the
problem that is being solved. The illumination stage can also be called the stage of finding an
idea or problem-solving plan. The verification stage is the stage of carrying out the ideas
found, but if the ideas found fail to solve the problem, an evaluation of the results is carried
out.

Comparison Between Creativity & Innovation

Difference between Creativity & Innovation
CREATIVITY INNOVATION
1) Creativity is dreaming of new things 1. Innovation means making those
dream come true
2) The thinking up new things and 2. Innovation is the process of
concepts can be termed creativity converting these thoughts into
practical usage
3) Creativity is that if something new 3. Innovation is bringing these ideas to
has been brought into existence life

4) Creativity generating ideas 4. Innovation is bringing these ideas to

life
5) Creativity is related to experience 5. Innovation is related to observation

The Role of Creativity & Innovation in Entrepreneurship

1) Creativity boosts business reputation.

In competitive market nowadays, entrepreneurs with same feature of product selling
need to find the different and appealing to attract customers. The product and services for
certain business should be able to distinguish. Creative entrepreneurs must be able to value
add the speciality in their product and services. The specialities could attract customer and
remarkable.
 2) Creativity source of business survival.
Competitive market nowadays required entrepreneur to be creative for not left behind.
It is essential for business environment to compete in an increasingly challenging world at the
moment.

3) Creativity spurs to entrepreneurial quality.

The advantage by taking creativity as priority leads the entrepreneurial towards better
quality. Creativity required one’s to solve the problem occur and need to come with relevant
and reliable solution. An entrepreneur must think outside of box to enhance the
entrepreneurial qualities.
4) Creating new ideas for competitive advantages.
The whole process of entrepreneurship itself rooted in creation and exploration of
creating and explores new ideas. Creative entrepreneur creates new products for existing
services and product.
5) Thinking of novel ways to develop your product and improve the business.
There is always an opportunity for improvement in the deliverables of an enterprise.
Creativity and innovation help develop new ways of improving an existing product or service
to optimize the business. This also allows entrepreneurs to think outside the box and beyond
the traditional solutions.
6) Finding similar patterns in different areas.
Creative people would some time able to connect dissimilar and unrelated subject and
make successful entrepreneurial ideas. Interesting ideas could come from colliding different
fields.
7) Creativity is problem solving.
In developing new strategies to keep the business running competitively, creative
problem solving provides a competitive advantage that every business wants to achieve. The
need for creative problem solving arises because more management needs critical insight to
find a suitable and viable solution whenever it happens.
References

Afifah, M., 2020. 8 Ciri-ciri Orang Kreatif Menurut Psikologi Positif Halaman all -
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menurut-psikologi-positif?page=all> [Accessed 4 October 2021].

Csikszentmihalyi, M., 1996. Creativity. New York: HarperCollins.

Kiswandono, I. 2000. Berpikir Kreatif Suatu Pendekatan Menuju Berpikir Arsitektural. Jurnal
Dimensi Teknik Arsitektur. 28:8-16.

Lestari, I., Tonapa, H., & Sopiana. (2016, 05 13). Sopiana Blogspot. Retrieved 06 04, 2017,
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Putra. 2019. KREATIF & INOVATIF: Pengertian, Ciri Ciri dan Contoh Kreativitas - Inovasi -
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inovatif/> [Accessed 4 October 2021].

Rogers, E. M. 1983. Diffusion of innovations. 3rd ed. New York: London: Free Press.

Solso, R. L. 1995. Cognitive Psychology. Boston: Allyn and Bacon.

Ulum, A. 2011. Anharululum Blogspot. Retrieved 06 04, 2017, from Membangun Ide Kreatif
dan Inovatif: http://anharululum.blogspot.co.id/2011/01/membangun-ide-kreatif-dan-
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