entrep perio

four major sources of ideas for entrepreneurial ventures:

1. from the product

2. from the process

3. from the person

4. from relationships

• business idea come from improving or changing an existing product.

• differentiating features (shape, size, & content)

• creating new varieties

• solving customer frustrations (annoyance-driven innovation)

from the product

solving customer frustrations

annoyance-driven innovation

• idea came from improving the way a product is made, delivered, or distributed.

• better production or distribution.

• packaging innovations.

from the process

• entrepreneurs’ own experiences and abilities give business ideas.

• examples: personal interests and hobbies; skills from previous jobs; and dream and preferences.

from the person

• come from the people around the entrepreneur or from the environment.

• from family, friends, classmates, neighborhood

from relationships

can be a source of business ideas as shown in several studies.

prior employment

several methods of generating business ideas:

1. logical thinking

2. creative thinking

• refers to the systematic and rational way of providing an answer to a question.

• it is systematic since it follows steps in responding to an inquiry.

• it is rational because it adheres to the rules of logic in connecting the relationships of variables and in making conclusions.

logical thinking

some of the methods that uses systematic analysis in generating new ideas: (4)

1. statistical analysis

2. market analysis

3. SWOT analysis

4. delphi technique

• refers to a systematic analysis of data generated from a survey of individuals.

• it can give basic information on the population being studied.

• it can also be used for hypothesis testing on the difference of the values of certain variables.

statistical analysis

• undertaken to know the various factors that affect the demand for a particular product or service.

• it can also determine how certain socioeconomic and demographic groups will react to the introduction of a new commodity or change in existing products of services.

market analysis

SWOT

strengths, weaknesses, opportunities, and threats

• usually undertaken to describe the state of competition within an industry.

• can also provide business ideas that an entrepreneur can pursue.

SWOT analysis

the systematic way of generating ideas from a select group of individuals using various rounds of consultations or seasons.

delphi technique

creates new ideas, products, or services.

entrepreneur

runs an existing business

business man

generating business ideas through creative thinking: (4)

1. brainstorming

2. problem inventory analysis

3. free association method

4. checklist method

• Refers to an unstructured discussion of a group to elicit ideas.

• The facilitator and participants should entertain all ideas coming from the participants even those that are illogical or out of this world.

Brainstorming

• Uses group discussion method to elicit ideas from participants.

• Different from the usual brainstorming because it is directed to identifying all possible problems encountered with a specific product or service.

Problem Inventory Analysis

• Technique used in discovering business ideas.

• A method used in psychology to elicit the unconscious thoughts of individuals by expressing their thoughts associated with words and ideas given by the therapist.

Free Association Method

Creative way of obtaining business ideas from target participants by listing all possibilities that ideas can be connected, reprocessed and associated with.

Checklist Method

SCAMPER Model by Alex Osborn

• Substitute

• Combine

• Adapt

• Modify/Magnify/Minify

• Put to another use

• Eliminate

• Reverse/Rearrange

replace a part, material, or process with something else

Substitute

Join elements, ideas, or functions together in new ways—or find a new element you can merge with.

Combine

Modify something to better suit a new purpose, person, or context.

Adapt

Enlarge, reduce, or change the shape, or alter attributes. Can a small change have a bigger effect?

Modify

Rather than changing the thing itself, consider changing the context it exists in.

Put to another use

Remove elements, simplify, or pare down to essentials. Is less more?

Eliminate

Flip the script, re-order your priorities, invert cause-and-effect, turn it all upside-down

Reverse

• Focuses on analyzing internal strengths and weaknesses, and external opportunities and threats

• Uses data, observation, and research about the business environment

• Helps evaluate a company’s current position

SWOT Analysis

• Focuses on gathering expert opinions through several rounds of consultations

• Uses predictions and insights from specialists or experts

• Helps forecast future trends or emerging products

Delphi Technique

Business ideas can come not only from products but also from changes in the environment:

• economic

• social

• political

• technological

These tools help entrepreneurs spot opportunities.

• Porter's Five Forces

• SWOT analysis

• market analysis

• environmental scanning

These trends can inspire new products or services:

• consumer preferences

• government policies

• supplier conditions

• demographic shifts

How trends create business opportunities: (6)

1. competition

2. suppliers

3. natural resources

4. government regulations

5. sociodemographic changes

6. urban problems

Entrepreneurs may lower prices or differentiate products to gain customers.

competition

Rising raw material costs push firms to find cheaper alternatives

suppliers

Abundant materials like water lilies or lahar inspire new handicrafts.

natural resources

Policies like plastic bans create demand for eco-bags and alternative packaging.

government regulations

Smaller homes create demand for compact appliances, condo-based services (food, laundry, repairs).

Sociodemographic Changes

Pollution increases demand for air purifiers and improved appliances.

Urban Problems

• means seeing things differently and combining old ideas into new ones.

• Ideas grow by comparing, linking, modifying, or transforming what already exists.

creativity

factors influencing creativity: (4)

1. problem-solving factors

2. motivational factors

3. situational factors

4. organizational factors

knowledge, experience, and education help individuals analyze and solve problems creatively.

problem-solving factors

Highly motivated people take risks and seek improvements instead of complaining.

motivational factors

Creativity shows when people apply ideas, manage time, and collaborate with others.

situational factors

Supportive management, risk-taking culture, flexible rules, and positive evaluation encourage creativity.

organizational factors

A 6-step process using divergent (idea generation) and convergent (idea selection) thinking

Osborn-Parnes’ Creative Problem-Solving

Osborn-Parnes’ CPS Model

1. Setting the Objective

2. Revisiting the Objective

3. Identifying the Problem

4. Looking for a Solution

5. Selecting a Solution

6. Accepting the Solution

Identify the goal or issue

Setting the Objective

Collect relevant information.

Revisiting the Objective

Determine the real problem to solve.

Identifying the Problem

Brainstorm multiple solutions creatively

Looking for a Solution

Evaluate and choose the best option

Selecting a Solution

Implement the chosen idea with action.

Accepting the Solution

• Produce many ideas

• Creative and open minded

• Exploring Possibilities

• Used in Brainstorming

Divergent Thinking

• Choose one idea

• Logical and focus

• Finding the single answer

• Used in solving problems

Convergent Thinking