Creativity

 Meaning of Creativity
 Creativity is the ability to design, form, make or do

something in a new or different way or it is the

ability to come up with innovative solutions to
needs/problems and to market them.
 An entrepreneur’s creativity is often the difference

between success and failure in business.

07/20/21 1
 Creativity

 Meaning ….
 It often distinguishes high-growth or
dynamic businesses from ordinary/average
firms.
 To be creative, entrepreneurs need to keep

their mind and eyes open to their

environment.
 Creative ideas are needed anywhere there are

problems with unknown solutions.

07/20/21 2
 Creativity

 Meaning ….
 In the business world, entrepreneurs use creativity
to solve everyday problems, promote products and
services, update products and services, and make
use of limited resources.
 Some people believe that they are not creative. They
may overlook situations in which they have odd
ideas, or they may avoid sharing their ideas with
others.
 People can develop their creative potential through
learning and practice.
07/20/21 3
 Business Ideas

 Meaning of Business Idea

 A business idea is the response of a person or

persons, or an organization to solve an identified

problem or to meet perceived needs in the
environment (markets, community, etc.).
 A good business idea is essential for starting a

successful venture and to stay ahead of

competition.

07/20/21 4
 Business Ideas

 Meaning of …..
 Finding a good idea is the first step in

transforming the entrepreneur’s desire and

creativity into a business opportunity.
 Good business ideas, however, do not

usually just occur to an entrepreneur.

07/20/21 5
 Business Ideas

 Why Generate Business Ideas

 There are many reasons why entrepreneurs
or would-be entrepreneurs need to generate
business ideas. Here are just a few:
 You need a great idea to start a new business
 Business ideas need to respond to market needs
 Business ideas need to respond to changing

consumer wants and needs

07/20/21 6
 Business Ideas

 Why Generate …
 Business ideas help entrepreneurs to stay

ahead of the competition.

 Business ideas are needed to exploit

technology and do things better

07/20/21 7
 Business Ideas
 Why Generate ….
 Business ideas are needed because the life

cycles of products are limited.

 Business ideas help to ensure that businesses

operate effectively and efficiently.

 Business ideas help to solve natural resource

scarcity, pollution and depletion.

07/20/21 8
 Business Ideas
 Sources of Business Idea
 Hobbies/Personal Interests

 Personal Skills and Experience

 Mass Media (newspapers, magazines, TV,

Internet)
 Business Exhibitions

 Surveys

07/20/21 9
 Business Ideas
 Sources of ….
 Customer Complaints

 Natural scarcities and pollution

 Changes in Society

 Brainstorming

 Being Creative

07/20/21 10
 Business Ideas
 Brainstorming
 is a technique for creative problem-

solving as well as for generating ideas.

 Its objective is to come up with as many

ideas as possible.

07/20/21 11
 Business Ideas
 Brainstorming ….
 There are FOUR RULES for BRAINSTORMING:
• Don’t criticize or judge the ideas of others
• Freewheeling is encouraged-ideas that seem to be
wild or crazy are welcome.
• Quantity is desirable – the greater the number of
ideas, the better
• Combine and improve upon the ideas of others.

07/20/21 12
 Business Opportunity
 What is a Business Opportunity?
 A business opportunity may be defined simply as an
attractive investment idea or proposition that
provides the possibility of a monetary return for the
person taking the risk.
 A good idea is not necessarily a good business
opportunity.
 So, what turns an idea into a business opportunity?

07/20/21 13
 Business Opportunity
 What is ….
 To be a good business opportunity, it must
fulfill the following criteria:
 Real demand
 Return on investment
 Availability of resources and skills
 Meet objectives
 Be competitive

07/20/21 14
 Generating and Screening Project Ideas

Filtration Funnel Model

Brainstorming
500-1000 Ideas

Macro Screening 10 Business Ideas

Micro Screening 3 Business Ideas

SWOT Analysis

One Best Business Idea

07/20/21 15
 Generating and Screening…..
1. Macro Screening Criteria (1st Stage Screening)
 Marketability
 Availability of raw materials & other inputs
 Ease of implementation
 Financial ability of the entrepreneur
 Consistency with government priorities

07/20/21 16
 Generating and Screening…..
 Micro Screening Criteria
 Marketing Viability
 Technical Viability
 Organizational and Management Viability
 Financial Viability
 Environmental Viability
 Ecological Viability

07/20/21 17
 Generating and Screening…..
 Marketing Viability
• Target market for the products and why would
customers buy the product
 Size and growth rate of target market
 The level of actual market demand and
anticipated future market potential
 Demand and supply situation, factors and
trends
 Direct and indirect competition
 Marketing Practices
07/20/21 18
 Generating and Screening…..
 Technical Viability
 Technology & its source
 Machines and equipments
 Production process
 Raw Materials, power & other inputs
 Infrastructure and Facilities
 Location & layout of site, building &
plant

07/20/21 19
 Generating and Screening…..
Organizational and Management Viability
Abilities, competencies, skills, experience, values and

motivations of management/key officers as per the

requirements of project.
Sketch personnel requirements: what people will be needed

now, in a year, in the long term? What skills and

qualifications are required and what financial implication
results?

07/20/21 20
 Generating and Screening…..
 Financial Viability
 Project start up capital
 Sources of financing/capital
 Balance sheet projections
 Cash flow projections
 Profitability/Income projections
 Break even analysis (BEA)
 Expected return on investment (ROI) & its
viability for the entrepreneur (Cost benefit
analysis
07/20/21 21
 Generating and Screening…..
 Environmental Viability
• What are the types of effluents and emission
generated?
• What needs to be done for proper disposal of
effluents and treatment of emissions?
• Will the project be able to secure all environmental
clearance and comply with all statuary
requirements?

07/20/21 22
 Generating and Screening…..
 Ecological Viability
 What is likely damaged caused by the
project to the environment?
 What is the cost of restoration measures
required to ensure that the damage to the
environment is contained within
acceptable limits?

07/20/21 23
Micro screening

07/20/21 24
 Generating and Screening…..
3. SWOT analysis
 Strengths: Strengths are within the control of the
entrepreneur and they occur at present. Strengths
should be capitalized and harnessed to make
weaknesses redundant.
 Example:

 Technical expertise

 New improvements of product

07/20/21 25
 Generating and Screening…..
 Strengths (Cont’d)
 Good network with customers

 Managerial experience

 Superior technology

 Distribution system

 Product features (utility durability, etc.)

07/20/21 26
 Generating and Screening…..
 Weaknesses: Weaknesses are within the control of
the entrepreneur; they occur at present. They are
"lack of...", "missing...", or weak points. As far as
possible, weaknesses should be eliminated!
 Example:
 Weak selling effort
 Lack of working capital
 Inexperienced managers or employees
 Technological obsolescence
 Poor design of product

07/20/21 27
 Generating and Screening…..
 Opportunities: Opportunities are positive or
favorable factors in the environment which the
entrepreneur. They are, however, mostly beyond
the control of the entrepreneur. They are different
from strengths in the sense that strengths are
positive internal factors of the business.
 Example:
 Few and weak competitors
 No such products in the market
 Rising income of target market

07/20/21 28
 Generating and Screening…..
 Opportunities……
 Scarcity of product in the locality

 Growing demand for the product

 Favorable government policy/programs

 Availability of technical assistance

 Low interest rate on loans

 Access to cheap raw material

 Adequate training opportunities

07/20/21 29
 Generating and Screening…..
 Threats: Threats are negative or unfavorable external
factors in the environment and normally beyond the
control of the entrepreneur. They adversely affect the
business, if not eliminated or overcome. Threats differ
from weaknesses in as much as they are beyond the
control of the entrepreneur. Both have a negative
impact on the business.
 Example:
 Hanging government regulations
 Smuggling

07/20/21 30
 Generating and Screening…..
 Threats…
 Raw materials shortages
 Insufficient power
 Corruption
 Poor infrastructure
 Rising costs of raw materials
 Too much/Unhealthy competition
 Government bureaucracy

07/20/21 31
 SWOT Analysis Framework

Strength Weakness
-Managerial expertise -High cost of production
- Low cost of production - Shortage of inventory
-Good customer handling -Poor customer handling
-Availability of assistance - Shortage of capital
- Sufficient capital - Poor quality product
- Unique product

Opportunity Threats
-Few and weak competitors -Natural disaster
-Favorable government policy - Changing government policy
- Availability of cheap raw materials - Shortage of raw materials
- Increasing income of target market - Change in consumer taste
- Availability of low interest loan
- Availability of technical support

07/20/21 32
 Generation of Project Ideas

Initial screening

Is the idea prima facie promising?

Yes NO

Plan feasibility analysis Terminate

Conduct market analysis Conduct technical analysis

Ecological analysis O&M analysis Environmental analysis

Conduct financial analysis

Is the project worthwhile?

Yes NO

Conduct SWOT analysis

Terminate
Yes NO

Prepare Project Proposal

Terminate
07/20/21 33
Prepare Business Plan
 Thank You for
Your Attention!

07/20/21 34