ENT3003 exam 1

Truths about Entrepreneurship

1) Entrepreneurship is not reserved for startups a.The term startup came into vogue during the 1990s dot-com bubble, when a plethora of web-based companies were born. b.We subscribe to Steve Blank's definition of startup: a temporary organization in search of a scalable business model. c. The business may be partially funded by seed money from family members or investors, but usually the majority is funded by the entrepreneurs themselves. d.If the business is successful, it can develop into an organization, be merged with another organization, or be acquired by another company. e. Entrepreneurs are everywhere, from corporations to franchises, to for-profit and nonprofit organizations, to family enterprises. 2) Entrepreneurs do not have a special set of personality traits a.Early research identified four main traits that are ascribed to entrepreneurs: a need for achievement, having the ability to influence events, a tendency to take risks, and a tolerance for ambiguity. b.Over the last couple of decades, researchers have moved away from the traits perspective in favor of how entrepreneurs think and act, and have discovered that there are patterns in how entrepreneurs think. c.Through a study involving serial entrepreneurs—people who start several businesses, sometimes at the same time, or sometimes one after the other—Saras Sarasvathy discovered patterns of thinking, a theory she calls effectuation, which is the idea that the future is unpredictable yet controllable (create the future, do not try to predict it). d. It makes sense that if entrepreneurs are in the right frame of mind, there is greater confidence, intentionality, and vision to bring ideas from the whiteboard to the real world. 3) Entrepreneurship can be taught: it's a method that requires practice a.Because people tend to believe that "entrepreneurs are born and not made," those same people question if entrepreneurship can be taught. b.What has been proven is that entrepreneurs do exhibit patterns in how they think, and our thinking can be changed and altered. c.Entrepreneurship is not predictable and, therefore, cannot adequately be taught as a process. d.The entrepreneurial method requires consistent practice so that knowledge and expertise can be continuously developed and applied to future endeavors. 4) Entrepreneurs are NOT extreme risk-takers a.Because people tend to believe that "entrepreneurs are born and not made," those same people question if entrepreneurship can be taught. a.Practice a cycle of actà learnà (build w/ smaller risks) b.What has been proven is that entrepreneurs do exhibit patterns in how they think, and our thinking can be changed and altered. c.Entrepreneurship is not predictable and, therefore, cannot adequately be taught as a process. d.The entrepreneurial method requires consistent practice so that knowledge and expertise can be continuously developed and applied to future endeavors. 5) Entrepreneurs collaborate more than they compete a.Community and networking play an important role in entrepreneurship. b.Entrepreneurs draw on shared experience and desire to learn from others facing similar challenges. c.It becomes very important to have a support group of like-minded entrepreneurs willing to help one another out with a "pay it forward" attitude—collaborating for the greater good. d.Recent studies have shown that collaboration and information-sharing are more important in entrepreneurship than skills like determination or opportunity recognition. 6) Entrepreneurs act more than they plan a.Research revealed that fewer than half of Inc. 500 founders wrote formal business plans prior to launching their companies, and fewer than 30% had only basic plans. b.They talked to other people, connected with their customers, generated buzz about their product or service, and built a strong network; with every action, they collected real data that informed the next step. c. Today's investors want to know what the entrepreneur has done, the customers they have approached, and the interest they have generated. 7) Entrepreneurship is a life skill a.Traditionally, entrepreneurship has been associated mostly with launching new businesses. b.Today, individuals and institutions perceive entrepreneurship as a life skill that helps people to deal with an uncertain future by providing them with the methods to think, act, identify opportunities, approach problems in a specific way, adapt to new conditions, and take control of personal goals and ambitions. c. Our economic future depends on entrepreneurs, and the traditional, narrow definition has stifled what it really means to be an entrepreneur.

7 Strategies for Idea Generation

1. Analytical strategies: Involve taking time to think about a problem by breaking it up into parts, or looking at it in a more general way in order to generate ideas about how certain products or services can be improved or made more innovative. researchers found that artists who carried out critical analysis before they started their work, as well as during the task, were more successful than those who did not use the same analysis. 2. Search strategies: Involve using stimuli to retrieve memories to make links or connections based on past experience that are relevant to the current problem. strategy illustrates our ability to be resourceful in generating associations between objects that at first appear to have no apparent relationship with each other. 3. Imagination-based strategies: Involve suspending disbelief and dropping constraints in order to create unrealistic states or fantasies. For example, the Gillette team used imagination to come up with a new shampoo by imagining themselves as human hairs. Though playful and even absurd, such freeing behavior allows our minds to think in ways we never thought possible. 4. Habit-breaking strategies: Techniques that help to break our minds out of mental fixedness in order to bring about creative insights; one strategy is to think about the opposite of something you believe, in order to explore a new perspective. One strategy is to think about the opposite of something you believe, in order to explore a new perspective. Another method focuses on taking the viewpoint of someone who may or may not be involved in the situation. A popular habit-breaking strategy is to take the role of a famous or admired individual and think about how he or she would perceive the situation. This is sometimes called the Napoleon technique, as in "What would Napoleon do?" 5. Relationship-seeking strategies: Involve consciously making links between concepts or ideas not normally associated with each other. For example, you could make a list of words that are completely unrelated to the problem you are trying to solve, then list the characteristics of each item on the list. Next, apply those characteristics to the problem in order to come up with ideas to solve the problem. The purpose of this exercise is to stimulate the mind into making connections that would otherwise have gone unnoticed. 6. Development strategies: Employed to enhance and modify existing ideas in order to create better alternatives and new possibilities. common exercise in idea enhancement is to gather a group of four to six people together. Each person writes down three ideas, which are then passed around the group. Then every member spends 5 minutes suggesting improvements to the ideas to make them more feasible and effective. Group brainstorming is a good example of a development strategy. 7. Interpersonal strategies: ideas are generated as a group and the group builds on each other's ideas. Brainstorming is a very common interpersonal tool for generating ideas that emphasize the creativity of the group over the individual.

first step of design thinking

focus on/obsess over who you are designing for.

IDEO approach of design thinking consists of 3 main, overlapping phases

inspiration, ideation, and implementation: The IDEO approach combines the power of empathy, creativity, and action.

Yoee baby case discussion background

jillian lakritz: Experiences in both her personal life as a mother and her professional life as a corporate problem solver: created her own line of safe infant toys aimed at stimulating early-stage development through play. Problem: Lots of toys, but none that were really age appropriate...most toys are not meant for newborns •Found herself looking for new ideas...started searching for play activities on popular websites •Suggestions of feather, or piece of silk or velvet, But fear of a choking hazard! BASED ON IDENTIFY STAGE OF IDEATE MODEL FOR OPPORTUNITY RECOGNITION: identify problems customers are trying to solve but not satisfied/identify underlying causes of problem: need safe baby toys -effectuate step of opportunity creation: used skills, experiences, abilities and developed an idea that matched + started testing it... Her work at Crème de la Crème solidified a strong understanding of early childhood development. -She then became a mother and was able to put what she learned about childhood development into practice. -Finally, after taking on the role of a product innovation, consumer insight, and brand strategy consultant, she had all she needed to take action and create a solution that would be valued in the marketplace. •all of these experiences may seem very disconnected, but when one looks a little deeper at what Jillian gained from each and then identifies what she did to start her business, the connections become abundantly clear. •Drawing from these experiences is often not something that is done consciously, rather, the connections happen very effortlessly. Jillian effectuated the opportunities that came her way over the course of many unique experiences, and this ultimately led her to create a legitimate business. discovery vs creation: -effectuate and design -entrepreneur creates the opportunity -take action, build, iterate -high level of experience and prior knowledge needed to identify -higher potential value of opportunity -uncertain action orientation jillian's development pathway: •Multiple popular prototypes through investment of over $100,000 of her own money •Received an additional $535,000 from family & friends and $30,000 from a Colorado accelerator (getting market validity à ppl believing in you w/out even using the product or knowing thing abt it) •Trade show orders on the order of 40+ and with confidence raised another $36,000 from a Kickstarter campaign •Then, went through a product recall w/ accidental choking hazard •Now, reach has grown and now maintains a very high rating on Amazon.com -on quadrant of novelty vs value and usefulness, considered an innovation bc huge impact on market (high value and usefulness) and high novelty -novelty could be debated, but nothing really existed that jillian thought would meet all of her criteria

doctory.pk critical thinking questions: How can you apply an entrepreneurial mindset to your life to help you break through these limitations in order to reach success?

self-leadership -•By loosening one's grip on what one believes they can or cannot control, embracing an entrepreneurial mindset will be much easier in moments where inaction and disorganization do no good. use self-observation, self-cueing, self-punishment, self-reward, self-goal setting

idea generation

the first step toward finding/creating a strong opportunity: The more ideas we generate, the greater the likelihood we will find a strong opportunity. It is important to embrace the openness of an entrepreneurial mindset: To consider ideas that might seem impractical, overly obvious, wild, or even silly. The initial difficulty lies in ascertaining whether an idea is a good or bad one: On the surface, you never know what may turn out to be a good or bad idea.

entrepreneurship as a habit

A good approach is to consider developing new habits: A good approach is to consider developing new habits—a habit is a sometimes unconscious pattern of behavior that is carried out often and regularly. Good habits can be learned through a "habit loop": a process by which our brain decides whether or not a certain behavior should be stored and repeated, so if we feel rewarded for our behavior, we are more likely to continue doing it.

a creative mind/the creativity habit

Creativity is reflected in our biology: The importance of creativity and its necessity in navigating the uncharted waters in an uncertain world is also reflected in our biology. -left hemisphere controls movement, sensation, and perception on the right side of our body, and the right hemisphere does the same on the left side of our body Personality types : Researchers proposed that each of the two hemispheres in our brains had its own distinct thinking and emotional functions, an idea further expanded to propose "left-brained" and "right-brained" orientations as personality types. a.In his book A Whole New Mind, business and technology author Daniel Pink uses the right-brain/left-brain model to describe how today's society is moving from left-brain thinking (was req by agricultural and industrial age à methodical and predictable hobs) to right-brain thinking. b.Pink holds that we now live in a "conceptual age" that requires us to use both the left and right sides of the brain to create new opportunities and possibilities—in other words, to succeed in today's world, we need a different way of thinking. -little scientific support for left-brained vs right-brained ppl (meaning one side is not dominant) There are commonalities in entrepreneurial mindsets: Commonalities in entrepreneurial mindsets include envisioning success while preparing for failure; they value autonomy and assume responsibility for problems and failures; they have a tendency to be intolerant of authority and exhibit good salesmanship skills. -study carried out by psychology professor Mihaly Csikszentmihalyi between 1990 and 1995 shows an interesting paradox in the personality traits of creative people. Csikszentmihalyi and a team of researchers identified 91 people over the age of 60 whom they considered highly creative, or "exceptional," in the fields of science, art, business, and politics. They discovered that although conflicting traits are not commonly found in the same person—for example, a person is typically introverted or extroverted, not both—they were present in many of the study participants. They exhibited seemingly polarized traits like discipline and playfulness, a strong sense of reality and a vivid imagination, and pride and humility. Csikszentmihalyi referred to these highly creative individuals as having "dialectic" personalities and concluded that for people to be creative, they need to operate at both ends of the poles. -if you compare the "polarized" traits with the left- and right-brain characteristics, you will see striking similarities, suggesting that creativity involves integrating "both sides" of the brain. In this sense, Csikszentmihalyi's study is consistent with Pink's argument that we are living in a conceptual age that requires us to tap into our creative potential and be "whole-brained" thinkers and doers. -Although successful entrepreneurs definitely do not fit into a single profile, there is some commonality in their mindset. They envision success while also preparing for failure. They value autonomy in deciding and acting and, therefore, assume responsibility for problems and failures. They have a tendency to be intolerant of authority, exhibit good salesmanship skills, have high self-confidence, and believe strongly in their abilities. They also tend to be both optimistic and pragmatic. They work hard and are driven by an intense commitment to the success of the organization. Here again, we see evidence that an entrepreneurial mindset requires more than one kind of thinking

Guest speaker Robyn Crawford

Founder and ceo of online retail bookstore eden books that specializes in romance and women's fiction (largest subset of fiction but small niche of readers) Problem = amazon was banning romance books like these when written by women, but not when books written by predominantly white men... needed an alternative "Attack on women and the romance genre" 1st step = go to center for entrepreneurship → innovation hub for women Then figured out core mission and reached out to friends who wrote books and readers of romance to see what they would want in a platform/get feedback → hired developer for website → registered company officially as an LLC and created social media accounts + raise money 2-fold unique value proposition: 1) platform for authors who don't have one to distribute their books and 2) readers access these romance books Incentives free access to book signing or free ebook At the beginning, having a lawyer & accountant = worthwhile to have everything lined up Blue commerce wordpress account → handle transactions + serves as website Logo developed from adobe stock photos w/ limited rights then hired branding designer edenbookstore.com = site name Both family and friends invested in company, good portion though through bootstrapping. Got awarded a grant of 10,000 dollars through Meta Make money through 70/30 (author/eden store) revenue split, paid adv available on site, paperback books (get 100% of revenue), facebook fundraisers authors apply to sell books on the site and the ceo goes through their sites, etc. and then can upload books there for just under 1200 dollars Over 21,000 site users. Market the store heavily through social media, WOM, key = newsletter highlighting free books on site, new entries, preorders, that is inclusive and representative etc. Encourages authors to not be exclusive to her Sell everywhere in the country, esp popular in USA, Canada, Australia. Started off using godaddy server and then more professional servers. Growth larger than anticipated Biggest challenge = own personal knowledge bc do not know a whole ton, so have to ask questions and get help Future = finish designing and publish app, and do service where also offer online and print books Seeing larger retailers offering authors ability to use AI to read their books → more lifelike audiobooks that are cheaper and target more ppl who might not want a physical copy hanging around Reddit and fb forum why men group has helped w growing business and learning stuff Advice = there's never going to be a right time, enough money, enough time, just start somewhere, start small. Take the first step/take action

variations of design-thinking process: 4 questions to ask

(all of which have periods of divergence and convergence) 1.What is?: This encourages the entrepreneur to explore the current reality of the problem. 2.What if?: It encourages you to imagine all of the possibilities without regard to the reality of the ideas. 3.What wows?: This focuses on making decisions about what the customer really wants. 4.What works?: It tests these solutions in the marketplace.

"Ideation" phase of the Design Thinking:

(create potential solutions to meet user needs- how might we solve the problem?) involves generating and developing new ideas based on observations gained during the inspiration process to identify needs or hopefully latent needs based on observations made during the inspiration process—it is where empathy and creativity interact to generate solutions! Requires general openness to world and using creative ability to solve problems Period of divergent thinking: This is also a period of divergent thinking in the design-thinking process. Ideas generated in collaboration: During the ideation stage, ideas are often generated in collaboration with a diverse group of people whose experience spans many different disciplines. By combining different viewpoints, the team can generate a wide variety of ideas and engage in productive debates about competing ideas.

inspiration phase of design thinking

(empathize- what's the problem?) Involves defining the design challenge and learning about users you are designing for: The Inspiration phase involves two primary tasks: defining the design challenge and learning about the users you are designing for. 1. The design challenge is the problem that stimulates the quest for a solution. It starts with a problem that is neither too narrow nor too broad and is framed in "How might we?" terms. Complete this question as you develop design challenge statement. We say neither too narrow nor too broad because a problem that is too narrow will not give you the freedom to create something innovative. Conversely, if the problem is too broad, there are no boundaries and it can be unwieldy or difficult to get started. Have freedom to imagine while having boundaries: One needs the have the freedom to imagine, but you also want to have some boundaries in order to manage the process and finding this sweet spot can be quite difficult and requires practice. Ask questions to enhance, create, improve: The simplest way is to focus on the needs that we uncover though observing to come up with innovative solutions and that requires asking How might we enhance /create /improve /redesign /expand /reimagine /grow, etc. as you develop your design challenge statement. a. By observing the actual experiences of real people as they go through their daily lives, entrepreneurs are able to imagine themselves in the shoes of the people for whom they are designing. gives them an opportunity to develop empathy to better identify needs and, ultimately, develop solutions. It is also an excellent way to see the world differently in order to capitalize on potential opportunities that others have not yet recognized. Relates to concept of alertness a. simple way to think about needs versus solutions is that needs are verbs and solutions are nouns.15 Ladder is a noun but to reach is a verb. In this phase of design thinking, we are only concerned with needs. No solutions at this point a.C. The inspiration phase of the design thinking process is especially useful for uncovering latent needs, needs we have but don't know we have; for example, we didn't know we needed an iPad or an iPhone until we held one. a.Latent needs are more easily identified by observing rather than talking and they also produce the most innovative, market-creating solutions.

implementation phase of design thinking

(prototype and test solutions- how can we make it better?) seeks to answer a set of questions: I have an idea so how do I get feedback, how do I test it, how do I iterate, and how do I learn as quickly as possible if there is a potential market? -During the implementation phase, ideas generated in the ideation phase are transformed into concrete actions that require user interaction. Note that the inspiration phase requires human interaction, but so does this phase. Again, design thinking is human centered and obsessed with users! Low-cost experimentation is the key: At the heart of the implementation process is low-cost experimentation through rapid prototyping, which creates an actual model of the product or service (does not need to be sophisticated or expensive), which is then repeatedly tested for strengths and weaknesses until it leads from the project stage into people's lives. For example, in a project with the German airline, Lufthansa, to understand the growing demands of business class travelers, IDEO designers built a rapid prototype, of a plane using foam for both the core and business class seats. Real passengers and crew were then invited to test them out and share their experiences, which provided the designers with valuable feedback that they could use in the next iteration of the prototype. The implementation phases focus on early, cheap, and fast testing: Rather than executing ideas generated in the inspiration and ideation phases, the implementation phase focuses on early, fast, cheap testing to ensure the design team is on the right path toward meeting the needs of people for whom they are designing/learn how customers experience a product before too much $ spent on development.

what to do after the interview

-Revisit notes and write down any additional observations: As soon as the interview finishes, take some time to go through your notes, and write down any additional observations or thoughts while the interaction is fresh in your mind. -Look for themes and patterns: Try to craft insights from your notes by looking for themes and patterns based on responses to questions, body language, tone of voice, and make note of findings that have emerged. -Reflection is important to consider the results: Reflection is useful here, as it helps you to make sense of your own feelings, the knowledge you have gained, what questions you may have, and what you need to consider as a result. -The Empathy Map a.One of the most useful ways to efficiently record the information from an interview is by completing an empathy map. b.An empathy map is a tool that helps you collate and integrate your interview data in order to discover surprising or unanticipated insights. c.It also enables you to uncover unmet needs, find the source of any frustrations, discover areas for improvement, explore different perspectives, and question your own assumptions and beliefs; in other words, empathy mapping gets you out of your head into someone else's. d.The map contains four main components that help you organize data from people you interview: Say, Do, Think, and Feel. e.Say: What sort of things did the person say? What struck you as being particularly significant? Are there any interesting quotes you can use? f.Do: What sorts of actions and behavior were displayed by the person? Any particular body language that you noticed? g.Think: What might the person be thinking? What sort of beliefs or attitudes might be relevant? h.Feel: What sort of emotions do you think the person is experiencing? Problem statement: stakeholder (describe person) needs a way to (needs are verbs) because (insight here) -When complete, the empathy map is a useful way for you to spot contradictions and certain tensions that can spark a whole host of interesting insights. Sometimes we have a tendency to say one thing and mean.

Entrepreneurship as a method

-a set of practices -phases on learning -iterative -creative -action focus -investment for learning -collaborative

Guest speaker Parker van hart

-director of uf gator hatchery College entp students can use physical and online space for resources to start a small business Less to lose when younger, so take more risks and don't be scared. Just do it Small successes as you start moving = good way to measure success for students starting entrepreneurial ventures Has space for about 15-30 companies Started by buying and managing an established restaurant called steamers (adjust management style based on who you are working with. Have clear vision for company and employees, then give some free rein) Point-of-scale systems to help w/ menu prices, how much food to order Lots of trial and error Only can get supplies you need from small number of suppliers Done through classified ads. Sole proprietorship Was chipotle style before that restaurant became popular... ran for 2 yrs because then became attainable franchise. Managed 2 restaurants at a time Funded everything himself. No advertising, just promos and word of mouth through inviting restaurant friends and network Was going to make a sub hub, but wrong place, wrong time. Drained resources High-end restaurant alone could make enough to live comfortably Margins too slim for quick service restaurants, so need multiple locations to make a good living For pricing, typically is cost + markup w/ ( and often now includes a 5% cushion bc prices changing) Guest suggests paying more attention modeling and risk (after getting entrp class)

behavior-focused strategies of self-leadership

-help increase self-awareness to manage behaviors particularly when dealing with necessary but unpleasant tasks, and these include self-observation, self-goal setting, self-reward, self-punishment, and self-cueing. - Self-observation raises our awareness of how, when, and why we behave the way we do in certain circumstances: This is the first step toward addressing unhelpful or unproductive behaviors in order to devise ways of altering them to enhance performance. a.Self-goal setting is the process of setting individual goals for ourselves and is especially effective when it is accompanied by self-reward—ways in which we compensate ourselves when we achieve our goals. Could be intangible or tangible, and setting rewards motivates us to accomplish our goals Ideally, self-punishment or self-correcting feedback is a process that allows us to examine our own behaviors in a constructive way in order to reshape these behaviors. excessive self-punishment involving guilt and self-criticism can be very harmful to our performance. -Finally, we can use certain environmental cues as a way to lists or notes or constructive behaviors and reduce or eliminate destructive ones through the process of self-cueing. might take the form of making lists or notes or having motivational posters on your wall. They act as a reminder of your desired goals and keep your attention on what you are trying to achieve

yoee baby case discussion critical thinking questions: What strategy or strategies did Jillian employ to identify the Yoee Baby opportunity?

-idea generation strategy of relationship seeking: found a way to use her experience as a product innovation, consumer insight, and brand strategy consultant to draw up the initial concepts that stemmed from her experience as a mother and an employee at Crème de la Crème.

ventureblocks discussion questions: Given that desirability is the focus of the simulation, what did you learn about identifying what customers need?

-important to use empathy (requires effort)and not sympathy or pity to truly understand what ppl are going through and what needs they may have -empathy: a social skill that helps you better understand the emotions, intentions, thoughts, and needs of others so that you are in a better position to develop valuable solutions. -sympathy = more automatic/involuntary affinity; pity = not a shared emotional understanding and does not necessarily involve sympathy -The more we know about ppl, the more we learn abt the empathic drivers that motivate them

ventureblocks discussion questions: How is an insight different from an opportunity?

-insight is not a solution/is a way to identify a need + why, whereas an opportunity is a potential solution that meets the need of your market Criteria for good opportunities: -Address the needs rooted in the insights -Appeal to as many potential customers as possible

Six roadblocks that prevent creativity

1. Fear 2. No appetite for chaos 3. Preference for judging over generating ideas 4. Dislike for incubating ideas 5. Perceived lack of challenge 6. Inability to distinguish reality from fantasy -Fear is the most detrimental of these: Fear has the most detrimental effect on our capacity to be creative because it can cause self-doubt, insecurity, and discomfort even before the beginning of the creative process and can also block us from sharing our creativity with others because of the risk of failure, negative feedback, or ridicule.

the general self-efficacy scale

1. I can always manage to solve difficult problems if i try hard enough 2. if someone opposes me, I can find the means and ways to get what I want 3. It is easy for me to stick to my aims and accomplish my goals 4. I am confident that I could deal efficiently with unexpected events 5. Thanks to my resourcefulness, I know how to handle unforeseen situations 6. I can solve most problems if I invest the necessary effort. 7. I can remain calm when facing difficulties because I can rely on my coping abilities 8. When I am confronted with a problem, I can usually find several solutions 9. If I am in trouble, I can usually think of a solution 10. I can usually handle whatever comes my way

ventureblocks case: characteristics of good questions:

1. ask permission: getting the customer's permission to conduct a short interview 2. customer pain: while exercising sensitivity, encouraging the customer to talk abt a problem or pain they have 3. existing alternatives: learning what the customer has tried to do to solve the problem in the past 4. prioritize pain: clarifying that alleviating the customer's pain is one of your top priorities 5. dig deep: following up on a question to learn more 6. get a story: asking the customer to tell a story abt their situation

AEIOU framework of observation

Another technique to guide observations is the AEIOU framework: An acronym for Activities, Environments, Interactions, Objects, and Users: a framework commonly used to categorize observations during fieldwork to help you make sense of what you are seeing A: activities = goal-directed sets of actions (what are ppl engaging in when carrying out tasks?) E: environments: where the activities take place. what is the function of the individual, shared, and overall space? I: interactions = what is the nature of these exchanges? can you observe what the person enjoys the most or least? O: objects.... the building blocks or physical items ppl interact w/ and how do these relate to their activities? U: users... what are their goals, values, roles, prejudices, relationships, motivations? who are they?

Entrepreneurship is a method, not a process

By definition, a method is systematic way of approaching a task, whereas a process is a series of steps taken to achieve a particular end. From entrepreneurship to business success: Traditionally, entrepreneurship has been viewed as a process of sequential steps that lead to a successful business. The Entrepreneurship Process: An Outdated View a.The process approach emphasizes planning and prediction: It suggests that if you follow the 10 steps correctly, your new venture is more likely to succeed. b.The 10-step process is ineffectiveness in new ventures: The 10-step process isn't enough for entrepreneurial ventures because it relies too much on past history to predict the future, and a new venture with a new innovation does not have any history to draw from. c.Entrepreneurship is a non-linear process: Entrepreneurship is nonlinear and unpredictable; it is ill-defined, unstructured, and complex. d.Majority of startups fail after the first 5 years: Statistics show that over 50 percent of startups fail after five years of business, but research has shown that if entrepreneurs who have failed try again, they are more likely to be successful in their second venture—even if the second venture is completely different from the first.

family enterprising

Each generation has an opportunity to bring the organization forward in new, innovative ways: This makes family enterprising part of the portfolio of entrepreneurship types. Family-owned businesses are hugely important for the US economy: They account for 60% of employment, 78% of new jobs, and 65% of total wages. Family businesses are considered more stable because they take a long-term view: This inspires commitment and loyalty from their employees; yet a long-term view that becomes stagnant can lead the company into a downward spiral. a.Widely known businesses such as Walmart in the US, auto company Volkswagen in Germany, and healthcare company Roche in Switzerland are such family businesses. b.To continue their cycle of growth, family members pass on their entrepreneurial mindsets and business ethos which ensure the survival of the family business for many years to come.

The IDEATE Model for Opportunity Recognition

Educators and entrepreneurs Dan Cohen and Greg Pool have developed this empirically proven method for identifying and selecting high potential ideas that can be converted to new opportunities. 1. Identify: Identifying problems that customers are currently trying to solve, are spending money to solve, but are still not solved to the customers' satisfaction. Also identify the underlying causes of the problem. 2. Discover: Actively searching for ideas in problem-rich environments where there are social and demographic changes, technological change, political and regulatory change, and/or changes in industry structure. 3. Enhance: Taking the ideas and expanding to new applications or adding innovative twists. Or simply enhancing existing ideas. 4. Anticipate:Studying change and analyzing future scenarios as they relate to social, technological, and other global changes and trends. 5. Target: Defining and understanding a particular target market, validating new ideas with early adopters. 6. Evaluate: Evaluating whether the solution solves a problem, size of target market, degree of personal interest by the entrepreneur, and skills and abilities of the entrepreneur. Applying the IDEATE method to the modern-day gourmet food truck: •Using the identify stage we could observe that food trucks are popular but customers really want more healthy options; a possible idea could be a food truck that serves fresh seasonal salads and healthy grain bowls, and the menu changes with the seasons. •Building on this food truck concept in the discovery stage, the opportunity could morph into an entirely different concept that takes into consideration social and environmental changes; plates, cups, and utensils would be compostable in order to be healthy for the planet too! •As you enter the enhance stage, you could morph the food truck opportunity again—maybe the food truck turns into "fresh food" vending machines that are in strategic urban locations and the machines are restocked daily or placed in airports as more and more people want access to healthy food to bring on their flights. •Applying the original food truck concept to the anticipate stage could result in an entirely new concept—here we are forced to think about future scenarios. •We can morph the food truck concept and anticipate the future by thinking about creating a fleet of food trucks that act as "mini" produce markets which would travel through low income areas selling healthy food at reasonable prices while also educating the public on how to eat healthy on small budgets. •In the Target stage, you could take the food-truck-in-food-deserts concept and choose a low-income urban area in which to test the idea before investing in trucks. Or you could take the original food truck concept of seasonal salads and test it in downtown Denver, Colorado—one of the healthiest cities in the United States. The idea here is to find that niche market of early adopters who will help validate your idea. •The Evaluate stage encourages you to take all of the ideas and begin to "size" the problem: food truck with salads and bowls food truck (same as #1) that only uses compostable packaging and utensils fresh food vending machine fleet of trucks that offer "mini" produce markets in food deserts For each concept, what is the size of the market? Is the customer reachable? Do I have the ability to reach the customer? Do I even want to work on any of these opportunities? Do I have the skills and ability to execute them? Do I know people who can help me? These are all questions we will be answering throughout this text

gyan-i case discussion critical thinking question: How risky is it to start a technology services company today when technology is changing at such a rapid pace?

Entrepreneurial ventures are risky by nature. Gyan-i relies heavily on technological solutions that are not made in-house...this might actually provide a level of flexibility that it would otherwise not have. For example, if a new technology solution is beginning to replace an existing solution, a services company like Gyan-i can make the switch to offering the better solution much more quickly that it would if its solution was the thing being replaced. entp truths exemplied by gyan-i founder -- gyan-I founder did not quit day job until sure venture is solid -- leveraged collaborative relationships w/ networks that he built over time... Ex: CEO of company he used to work for was his first customer --find out what market wants, pivot and react, respond and apply feedback

Passion and Entrepreneurship

Entrepreneurship has the element of passion: Among many elements of the entrepreneurial mindset, one of the most talked about is the element of passion. It is connected to the desired impact: It deeply connects to your desired impact, which some people equate to passion. Passion in the context of entrepreneurship: In the context of entrepreneurship, passion can be defined as an intense positive emotion, which is usually related to entrepreneurs who are engaged in meaningful ventures, or tasks and activities, and which has the effect of motivating and stimulating entrepreneurs to overcome obstacles and remain focused on their goals. - aroused by the pleasure of engaging in activities we enjoy. -Studies have found that passion can also "enhance mental activity and provide meaning to everyday work," as well as fostering "creativity and recognition of new patterns that are critical in opportunity exploration and exploitation in uncertain and risky environments." Passion is an intense positive emotion: In the context of entrepreneurship, passion can be defined as an intense positive emotion, which is usually related to entrepreneurs who are engaged in meaningful ventures, or tasks and activities, and which has the effect of motivating and stimulating entrepreneurs to overcome obstacles and remain focused on their goals. -associated with a wide range of positive effects, such as strength and courage, motivation, energy, drive, tenacity, strong initiative, resilience, love, pride, pleasure, enthusiasm, and joy—all of which can occur as part of the entrepreneurship process. research has shown that positive feelings motivate entrepreneurs to persist and engage in tasks and activities in order to maintain those pleasurable emotions There is a dysfunctional side to passion: It is possible to become so obsessed by an idea or new venture that we fail to heed the warning signs or refuse to listen to negative information or feedback. Can curb business growth and limit the ability to creatively solve problems The problem with the "find your passion" adage is that people are less likely to try new things: A Stanford study carried out by Paul O'Keefe, Carol Dweck, and Gregory Walton shows that people who follow the old adage, "find your passion," are less likely to try new things and tend to give up easily when they encounter obstacles. "Develop your passion" is a more effective means: The researchers found that "develop your passion" through a growth mindset is a much more powerful approach to persevering in a particular area.

the entrepreneurial mindset and opportunity recognition

Entrepreneurship is all about openness to new ideas, new opportunities, and new ways of acting on them Positioning entrepreneurs to identify opportunities: An entrepreneurial mindset positions entrepreneurs to identify opportunities and to take to action to develop their own ventures. What entrepreneurship is all about: Entrepreneurship is all about openness to new ideas, new goals, and new ways of attaining them. The stories of countless entrepreneurs regardless of the diversity of their industries: This is demonstrated time and again by countless entrepreneurs' stories, regardless of the diversity of their industries, whether for-profit or nonprofit, at startup or within an existing corporation.

Entrepreneurship requires deliberate practice

Entrepreneurship is both a mindset and practice: In this section, we will explore the word practice so you better understand why we refer to the entrepreneurship method as both a mindset and a practice. a. We often associate practice with repetition and experience; for example, we picture a violinist playing a piece of music for hours every day, or a basketball player shooting hoops for prolonged periods. Repeating the same action makes one reach a plateau of capability: However, research has shown that people who spend a lot of time simply repeating the same action on a regular basis reach a plateau of capability regardless of how many hours they have put in. It is importance to carry out deliberate practice: To achieve high levels of performance, high performers engage in deliberate practice, which involves carrying out carefully focused efforts to improve current performance.

franchising

It is a license purchased by an entrepreneur from an existing business allowing the entrepreneur to trade under the name of that business: A franchise is a type of license purchased by an entrepreneur (franchisee) from an existing business (franchisor) that allows the entrepreneur to trade under the name of that business. A franchise is beneficial for entrepreneurs to launch their own businesses: As they do not have to spend time on marketing, building the brand, developing processes, and sourcing product. --> consistency everywhere in franchising a.A franchisee not only pays the franchisor a lump sum to buy the franchise but also has to pay royalties—a share of the proceeds based on sales revenue. b. According to Entrepreneur magazine's annual Franchise 500, announced in 2017, franchises such as 7-Eleven, McDonalds, Dunkin Donuts, and the UPS Store are among the most popular franchises in the U.S.

creation approach to entrepreneurship

No longer about growing a venture using a linear step-by-step process: Entrepreneurship is no longer about a path of starting and growing a venture using a linear step-by-step process. It is an ongoing method of creating opportunities to navigate an ever-changing world: It is a much messier, ongoing method of creating opportunities, taking smart action, learning and iterating, and using a portfolio of skills to navigate an ever-changing world.

observations vs insights in need discovery

Observation and insight or need development are two important techniques entrepreneurs use: Two of the most important techniques that entrepreneurs use during the inspiration phase are observation and insight or need development. Observation is the action of closely monitoring the behavior and activities of users/potential customers: Observation is the action of closely monitoring the behavior and activities of users/potential customers in their own environment for greater empathic understanding. a. Observation leads to insight development and insights are where we begin to articulate the needs of users. An insight is a statement that identifies a customer need and explains why: An insight is not just reporting what you heard in the conversations, it is not an idea, but a statement that identifies a customer need and explains why. -Observations focus on the raw data that you have consciously recorded from all the things you have heard and seen, without any interpretation. An insight comes later: It is an interesting, nonobvious piece of information derived from interview or observation data that drives opportunities. --not an idea. -In general, an insight statement can be written using the following equation: User + Need + Why a.An insight is an interpretation of an observation or a sudden realization that provides us with a new understanding of a human behavior or attitude that results in some sort of action—for example, a new product or service to meet customer needs or even a new process to increase employee satisfaction. b.Observations are what we see and insights help us better understand why we are seeing what we are seeing; insights are the patterns we observe and help us identify needs of the people we are observing. c.Some of the greatest innovations of today have fulfilled a need that we had no idea we had, such as the Internet or the iPhone; entrepreneurs had continued to ask why until they came up with a meaningful insight that led them to identify the primary need and to create the solution to meet the need—they had spotted the gap between where the customers are today and where they want to be. -Recognizing patterns generates insights that enable us to see everyday things in a new light. -ask why until identify identify primary need and create solution to meet need --> spot gap between where the customers are today and where they want to be

yoee baby case discussion critical thinking questions: What headache problem is Jillian solving with the Yoee baby toy?

Parents and children form extremely powerful connections through play at the early development stages. These stages are widely known as the most important stages in a young human's life. As these stages progress, the viable options of facilitating play become few and far between as a growing child becomes more susceptible to hazards like choking. Jillian aimed to create a solution that would continue to facilitate ever important play, while remaining safe for progressing children.

people who improvise and studies on improv

People who engage in improvisation are more tolerant of failure: Because it helps us to break free of traditional structured thinking, releases our need for control, opens our minds, improves our listening skills, and builds our confidence by encouraging us to think quickly under pressure. Studies on the effects of improvisation on the brain threw up interesting results: Scientists have studied the effects of improvisation on brain activity by asking six trained jazz pianists to volunteer to play a combination of learned and improvised pieces of music while lying in an MRI machine. a.When it came to analyzing the brain scans, they found the musicians tended to switch off the self-censoring part of the brain, which gave them the ability to freely express themselves without restriction. b.we have a brain that is designed to generate unpredictable ideas when the self-monitoring part is suppressed 4 tips to building new habits: 1.Start w/ small habit 2.2. increase your habit in very small ways 3.As you gradually build up your habit, break the habit into small chunks (keep each habit reasonable) 4.Plan to fail

Building Opportunities: Prior Knowledge and Pattern Recognition

Prior knowledge is gained from life and work experiences: Researchers have identified two major factors in the building of opportunities: prior knowledge and pattern recognition—prior knowledge is preexisting information gained from a combination of life and work experience. Successful entrepreneurs often have prior knowledge with respect to a market, industry, or customers, which they can then apply to their own ventures. -Many studies indicate that entrepreneurs with knowledge of an industry or market, together with a broad network, are more likely to recognize opportunities than those who have less experience or fewer contacts. Successful entrepreneurs often have prior knowledge with respect to a market, industry, or customers, which they can then apply to their own ventures. Allen Lim: Allen Lim, founder of Skratch Labs, a company that provides tasty, natural hydrated food and drinks to athletes, was able to apply the knowledge he gained while working as a sports scientist and coach for professional cycling teams. Sara Blakely: Similarly, Sara Blakely, founder of Spanx, spent weeks researching the shapewear industry before using the knowledge she gained to create her seamless panty hose product. Pattern recognition a key factor: Another key factor in building and recognizing opportunities is pattern recognition: the process of identifying links or connections between apparently unrelated things or events; some of the simplest ideas are born from making links from one event to the other. -Pattern recognition takes place when people "connect the dots" in order to identify and then build on opportunities. The "nine-dot exercise" illustrates the limitations of our thinking. The challenge is to connect nine dots by drawing four straight lines without lifting your pen from the paper and without backtracking -In a recent study, highly experienced entrepreneurs were asked to describe the process they used to identify opportunities. Each entrepreneur reported using prior knowledge to make connections between seemingly unrelated events and trends. In cognitive science, pattern recognition is thought to be one of the ways in which we attempt to understand the world around us. Selin Sonmez and Niko Georgantas's luggage storage company: To solve their problem of having to lug their baggage around on the first and last day of their travels, Selin Sonmez and Niko Georgantas co-founded luggage storage company Knock City, which partners with different shops to allow people to drop off their luggage for $2 an hour. -Moving from the idea to the opportunity by keeping an open mind: Moving from the idea to identifying an opportunity may seem daunting, but we can all train ourselves to get better at recognizing opportunities; we do so by identifying changes in technology, markets, and demographics; engaging in active searches; and keeping an open mind to recognizing trends and patterns.

preparing for an interview

Who you really want to learn from is the key to deciding whom to interview: Because we are still trying to identify needs think about those people in the space you are interested in. a.It is best to keep from interviewing people you do know because although talking to strangers can be intimidating, this will produce much better data than people you already know. b.Consider the purpose of the conversation. Your role as an interviewer is to ask one broad question, listen, then probe; that's the formula: question—listen—probe! broad categories of the need-finding interview: day in the life, values related to pet ownership (pet thing just is the example), connections to others, and pain points c. The probing question is very important—this method is called is "Peeling the Onion," which is a way of delving into a problem one layer at a time. --Begin with the challenges the person faces, and then continue to dig deeper in order to understand the root of the problem. Simply asking, "Why?" or saying, "Tell me more about ______" will help you gain a deeper understanding.

social entrepreneurship

a global movement, with initiatives launched every year to improve social problems: Since the beginning of the 21st century, social entrepreneurship has become a global movement, with thousands of initiatives launched every year to improve social problems in areas such as water shortages, education, poverty, and global warming. a.Some argue that all types of entrepreneurship are social, while others define it as purely an activity of the nonprofit sector. b.It is possible to address a social issue and make a profit—keeping a company economically stable ensures its capability to consistently meet the needs of its customers without relying on fundraising or other methods to keep it afloat. -A process of sourcing innovative solutions to social and environmental problems: Social entrepreneurship can thus be defined as the process of sourcing innovative solutions to social and environmental problems. Benefit corporation, or B-Corp: A subcategory of social entrepreneurship is the benefit corporation, or B-Corp, a form of organization certified by the nonprofit B Lab that ensures that strict standards of social and environmental performance, accountability, and transparency are met. Some B-Corp members include Betterworld Books, which donates a book to someone in need every time a book is purchased and Revolution Foods, which provides affordable fresh-prepared meals to school children from low-income households.

Design thinking: definition + what it is and what it is not

a human-centered approach to innovation that brings together what people need with what is technologically feasible and economically viable. It is a tool and not entrepreneurship itself: However, design thinking is a tool for entrepreneurs to solve complex problems for ppl, not entrepreneurship itself. a.IDEO and the design thinking revolution: For instance, IDEO, a global design company, has popularized the use of design thinking over the past 20 years; it states that "thinking like a designer can transform the ways organizations develop products, services, process, and strategy." b. Design thinking works best at the fuzzy front end of creating something new—products, services, processes, whatever. It focuses on the people you are designing for, developing empathy for them, testing solutions on them—and, overall, creating something to meet their needs.

opportunity definition and 3 central characteristics

an apparent way of generating value through unique, novel, or desirable products, services, and even processes that have not been previously exploited in a particular context. -three central characteristics: potential economic value, novelty or newness, and perceived desirability. -For an opportunity to be viable, the idea must have the capacity to generate value. Different kinds of value exist ---Economic value: The most common form of value is economic value: the capacity to generate profit. ----Social and environmental value: Two other forms of value—social value and environmental value—are less understood but equally important: an opportunity has social value if it helps to address a social need. Prerequisite for environmental value: Environmental value exists if the opportunity protects or preserves the environment. -ex: Bios Urn biodegradable urn --All forms of value are predicated on the assumption that there is a market populated with enough people to buy your product or service. does not mean that a large market is required; there are countless examples of successful businesses that run on a small scale, catering to a market that is limited in one way or another. The key is to scale the business and its costs to the size of the market and to balance supply with demand. Here again, the entrepreneurial mindset is what enables us to envision how a new product or service can generate value for a niche, an age group or interest segment, a geographic area, or a larger population.

design thinking as social technology

design thinking + improved outcomes: Provides immersion in the user's experience -->A better understanding of their customer and who they are designing for Makes sense of the data by organizing it into themes, patterns, and surprises -->Leads to new insights, possibilities, and opportunities Builds alignment because data and insights from actual users or customers don't lie -->Convergence around what matters most to users and what their needs are Encourages the emergence of fresh ideas and approaches, given the focus on customer inquiry and empathic understanding --->A diverse set of potential new solutions that would not otherwise have been developed Offers user testing through very rough and early prototypes --->Accurate feedback at a low cost that conveys what's most important to users Delivers learning in action as experiments engage all stakeholders -->A shared commitment and confidence in the desirability, viability, and feasibility of the idea

discovering versus creating opportunities (contrast)

discovery: opportunity pathway:Find and search assumptions: The opportunity exists and is waiting to be identified role of entrepreneur: Be alert to and scan the environment Level of experience and prior knowledge needed to identify: low potential value of opportunity :Lower action orientation: Risky creation: opportunity pathway: effectuate and design assumptions: The entrepreneur creates the opportunity role of entrepreneur: Take action, build, iterate Level of experience and prior knowledge needed to identify: high potential value of opportunity: higher action orientation: uncertain

design thinking requires ____

empathy an essential skill for design thinkers and connects both to observation and listening. Developing empathic ability allows us to understand: Developing our empathic ability allows us to better understand not only how people do things but why; their physical and emotional needs; the way they think and feel; and what is important to them. to create meaningful solutions that people will buy, we need to know and care about the people who are using them. how do we actually do it? The answer lies in observation, engaging people in conversation or interviewing, and watching and listening. elements of empathy and user engagement make design thinking an inherently ethical endeavor -Looks at the emotional as well as the functional side of problems: While rationalism and analytical techniques are important when creating products and services, as we have seen, design thinking is very much a human-centered approach and looks at the emotional as well as the functional side of problems. -To encourage students to empathize with older people, researchers at the Massachusetts Institute of Technology (MIT) created the AGNES suit (Age Gain Now Empathy Suit), which is designed for the wearer to experience the physical discomfort that many elderly people have to deal with every day, such as joint stiffness, poor posture, bad eyesight and hearing, and lack of balance.12 This is a very powerful means to encourage people to empathize with older people, in order to identify their needs. Given that our aging population is growing, there is ample opportunity for entrepreneurs to consider ways in which they can make the lives of the elderly more comfortable. This is yet another example of how empathy is one of the key elements of the design-thinking process used to solve complex problems and identify needs

An idea is successful if it strikes a balance among three main criteria: ____

feasibility, viability, and desirability a.feasibility—what can be possibly achieved in the near future? b.viability—how sustainable is the idea in the long term? c.desirability—who will want to use or buy the product or service? The starting point is desirability: It's about going to customers first, determining their needs, and then creating something to meet their needs. Even if you don't know who your customers are yet, find an opportunity space, a space that you are interested in, and watch and learn from people in this space to uncover needs. Remember, if you meet the needs of people, you are more likely to have customers. design thinking is human centered and focuses on users (the ppl you design for) -they are called "users" more often than "customers" because the users are not necessarily the buyer of the solution. Understanding emotional and cultural realities: By understanding the emotional and cultural realities of the people for whom you are designing, you will be more able to design a better solution with real value which is why empathy is so important to the design process.

mindset

has traditionally been defined as "the established set of attitudes held by someone": It's really our lens of how we view the world, interpret what we see, and react or respond to what we hear. subconsciously guides our reactions and decisions Mindsets can change or be altered: Fortunately our mindset is not static; it can change; and we can certainly alter our mindset. Carol Dweck's two different types of mindsets: Stanford University psychologist Carol Dweck proposes that there are two different types of mindset. A fixed mindset and a growth mindset. Research has shown that our mindset needn't be "set" at all. a.In a fixed mindset, people perceive their talents and abilities as set traits and believe that brains and talent alone are enough for success and go through life with the goal of looking smart all the time. a.They take any constructive criticism of their capabilities very personally, and tend to attribute others' success to luck or unfair advantage. b. will tell themselves they are no good at something to avoid challenge, failure, or looking dumb. ● a.The growth mindset and beliefs: On the other hand, in a growth mindset, people believe that their abilities can be developed through dedication, effort, and hard work, and they think brains and talent are not the key to lifelong success, but merely the starting point. Think that effort and attitude determine everything a.Upside of the growth mindset: People with a growth mindset are eager to enhance their qualities through lifelong learning, training, and practice; unlike people with fixed mindsets, they see failure as an opportunity to improve their performance, and to learn from their mistakes. Persevere rather than give up. Tend to be more successful and happier than those w/ fixed mindsets -Dweck's fixed mindset puzzle study: 5th-grade children who were praised for their hard work and effort on the first test were far more likely to choose the more difficult puzzle the next time. In contrast, children who were praised for being smart or intelligent after the first test chose the easy test the second time around - children who had been praised for being smart wanted to keep their reputation for being smart and tended to avoid any challenge that would jeopardize this belief. Yet the children who had been praised for how hard they had worked on the first test had more confidence in their abilities to tackle a more challenging test and to learn from whatever mistakes they might make

an opportunity can be ______; + essential tenets of all favorable opportunities

many things: products or services, among others: An opportunity can be a new product or service, new markets, new channels of distribution, new means of production or supply, or new ways of organizing. -The essential tenets of all favorable opportunities: Favorable opportunities are those that are valuable, rare, costly to imitate, and fit the capabilities of the entrepreneur. What valuable, rare, fit, and costly opportunities mean: -Valuable means there is a market of customers -rare means that they offer some novelty that doesn't currently exist for customers - costly to imitate creates barriers to entry to other entrepreneurs; and fit aligns with the skills and knowledge of the entrepreneur or founding team.

assumptions underlying the entrepreneurship method

method and a process. a.It applies to novices and experts: It applies to novices and experts regardless of experience levels. b.It is inclusive: It is inclusive, which means it works for any organization at any stage of business. c.It requires continuous practice: It requires continuous practice with a focus on doing in order to learn. d.It works in an unpredictable environment: It is designed for an unpredictable environment. e.It changes how we think: It changes how we think and act under conditions of uncertainty. f.Entrepreneurship needs to be viewed as a method: Viewing entrepreneurship as a method caters to its uncertain and unpredictable nature and represents a body of skills that together comprise a toolkit for entrepreneurial action.

Serial entrepreneurship (habitual entrepreneurship)

people who start several businesses: Serial entrepreneurs, also known as habitual entrepreneurs, are people who start several businesses, whether simultaneously or one after another. They look out for the next big thing or explore ways to implement their diverse range of ideas: Not satisfied with just focusing on one business, they constantly look out for the next big thing or explore ways to implement their diverse range of ideas. a.Natalie Campbell started her first venture running a franchise of fashion chain Morgan de Toi while still in university, before going on to co-found social innovation agency, A Very Good Company.

observation + the different types of observers

requires looking and seeing an ability to understand more deeply what we are looking at. Seeing helps us make sense of what is in front of us, what it's about, and how it relates to other things in the environment) - Meaningful insights lead to innovative solutions: The more we practice observation, the higher the likelihood of our developing new, meaningful insights that can lead to innovative solutions. There are four types of observation: That can guide what we observe to help us to focus on the things that are not necessarily visible or obvious at first glance. a.Complete Observer: A complete observer is someone who is either hidden from view or is observing in plain sight but is neither seen or noticed by participants. lthough this observation technique is useful for noting how people behave—they are more likely to act naturally when they don't know they are being observed—consider the ethical implications of this approach. After all, how would you feel if you found out you were being watched without your consent? ● b. Observer as Participant: In this case, the observer is known to the participants but maintains a neutral stance throughout. may be useful to understand how people carry out certain activities, for instance, observing how people use certain software to achieve their goals. a.C. Participant as Observer: Here, researchers are not only known by the participants, but considered more a friend or colleague; this method is used when researchers visit remote indigenous populations or inner-city cultures to gather information on different cultural habits. D. Complete Participant: A complete participant is almost like an undercover spy; while the researcher fully engages with the participants and joins in with their activities, they have no idea they are being observed. often used in customer research, such as the secret shopper role in the show Undercover Boss. It is a useful way to gather firsthand experience of how consumers operate.

the entrepreneurial mindset

the ability to quickly sense, take action, and get organized under uncertain conditions: While there is no one clear definition of mindset and how it relates to entrepreneurs, the most accurate meaning of an entrepreneurial mindset is the ability to quickly sense, take action, and get organized under uncertain conditions. Includes ability to persevere, accept + learn from failure, get comfy w/ high level of discomfort Employs numerous cognitive strategies: The entrepreneurial mindset involves employing numerous cognitive strategies to identify opportunities, consider alternative options, and take action. -cognitive strategies def: techniques people use to solve problems, such as reasoning, analyzing, experimenting, and so forth -metacognition (ability to understand and be aware of how we think and the processes we use to think) --Entrepreneurs regularly engage in metacognitive processes to adapt to changing circumstances by thinking about alternative routes to take and choosing one or more strategies based on these options. Metacognitive awareness is part of the mindset, and it is not something that we are born with. It can be developed over time through continuous practice. ---ask selves these questions: -What is my goal? -How motivated am I? -What do I already know about this? -How much time will it take? -What strategy works best? Requires the capacity to control our impulses: Because working in uncertain environments "goes with the territory" in entrepreneurship, the entrepreneurial mindset requires constant thinking and rethinking, adaptability, and self-regulation.

Google Design Sprint method of design thinking process

using its tools to develop hypotheses, prototype ideas, and run low-cost tests in a real environment. Shared vision to move toward faster product launch: Based on the Stanford Design School and IDEO methodology, the design sprint model aligns Google teams under a shared vision to move faster toward product launch. Each approach focuses on the importance of people and their needs: Each approach focuses on the importance of people and their needs; encourages entrepreneurs to get in front of real people in order to understand them; emphasizes the identification of needs before developing solutions; and recommends testing and experimentation, not for the purposes of killing an idea but to shape it and make it stronger. Design thinking can also be used to build organizations: Design thinking can be used to develop new products and services but also to build organizations, design strategy, improve processes that all bring value and deliver meaningful results. Entrepreneurs can find effective solutions to complex problems: By adopting some of the methods designers use when approaching problems, entrepreneurs will be better able to find effective solutions to complex problems.

3 phases of design thinking in action: clean team ghana

waste removal service that delivers and maintains stand-alone rental indoor toilets to low-income ghanians -During the inspiration phase, the IDEO team set out to define the problem and to identify any constraints. They interviewed sanitation experts, shadowed a toilet operator, and talked to many Ghanaians about how the new sanitation system might look -During the ideation phase, the team brought together what they had learned from their interviews and began to brainstorm. They developed several prototypes based on modifications of existing portable toilets and gave them to the Ghanaians for their input. During this phase, they learned about the technical limitations of their prototypes; for instance, the flush function would not work to full capacity due to water scarcity -implementation phase focused on testing the design of the new toilet using parts from off-the-shelf cabin toilets to reduce costs.

Stanford School Design Thinking Process

·Empathy is getting out and talking to your customers directly ·Define is defining a problem statement from that empathy work ·Ideate is brainstorming lots of ideas that could help you solve the problem you identified ·Prototype is building a crude version of the solution that you want to test with users ·Test is getting out and testing with users

key components of entrepreneurship method

•Means: Embracing and confronting uncertainty (rather than to avoid it and emphasizes smart action over planning.). •Method to be learnt and repeated. no guarantee for success, but it does offer a few powerful assurances: a.you will act sooner, even when you don't know exactly what to do; b.for those things you can do, you will; and for those things you can't, you will try; c.you will try more times because trying early is a low-cost experiment; d.you will fail sooner—enabling better, higher quality information to be incorporated into the next iteration; and e.you'll likely begin experimenting with many new ideas simultaneously. •Offers a few powerful assurances. •The practice includes prediction and creation. prediction logic is better suited when we can deduce the future from the past, while the creation logic is the only choice under conditions of extreme uncertainty

Gyan-i case discussion (background info and motivation)

•Saurabh Gupta is VP of IT at a large charitable foundation •Identified an opportunity to satisfy the unmet needs of smaller, less wealthy nonprofit organizations: -Problem: These organizations do not have the resources to maintain the advanced technological capabilities that today's marketplace demands. -Solution: Provide much-needed technology consulting and managed IT services to nonprofits...Gyan-i (after toying with idea, then receiving green card)! First-- start out with stating the problem, then figure out what solution you are selling (value proposition) •in a time where cyber security is at the forefront of discussions, the small non-profits are typically left the most exposed. •Gyan-i helps develop best practices and provides realistic, cost-effective cyber security solutions. --how and when to ethically work on side hustle/entrepreneurial venture -motivation for starting gyan-i: social entrepreneurship: •had a lot to do with something he felt passionate about...helping others! •Problems: Environment, Education, Poverty, Equality While the borders that define what are or are not a social issue have been blurred, reality has empowered people to take action to address issues they see as imperative •The technological pain points that nonprofits face every day hinder their ability to operate and serve the clients and communities they are so committed to serving.

creativity

Because of its elusiveness, there is no concrete or agreed definition of creativity; however, we like to define creativity as the capacity to produce new ideas, insights, inventions, products, or artistic objects that are considered to be unique, useful, and of value to others. Creativity is a developed skill and not something we are born with: Again, creativity is not something we are born with, but a developed skill—creativity is creating in action; studies have shown that people who are creative are open to experience, persistent, adaptable, original, motivated, self-reliant, and they do not fear failure. Personal creativity is higher in students who enrolled in entrepreneurship programs: A study published in 2008 found students enrolled in entrepreneurship programs scored higher in personal creativity than students from other programs simply because they are practicing the creative process more regularly.

importance of alertness

Discoveries are made by those entrepreneurs with alertness: Researchers have suggested that opportunities are everywhere but these discoveries are made by those entrepreneurs who have alertness, the ability to identify opportunities in their environment. means that entrepreneurs do not necessarily rationally and systematically search their environment or their particular information sets for opportunities. Rather, they become alert to existing opportunities through their daily activities—in some instances, they are even taken by surprise by what they observe The example of Post-its is one such discovery: Dr Spencer Silver was not actively searching for an opportunity to invent sticky notes, but became alert to the idea through experiments and proceeded to collaborate with a colleague to create Post-its that would prove to be a huge market success in the future. The origin of the football has an interesting history: As an example of alertness, a young shoemaker in the town of Rugby, England, Richard Lindon is credited with inventing the appearance of the rugby football and the air pump after his wife died from an illness due to contact with infected pigs' bladders (which were used to make footballs and needed to be inflated by blowing air into them).

design-thinking process is based on two main types of thinking

Divergent thinking: allows us to expand our view of the world to generate as many ideas as possible without being trapped by traditional problem-solving methods or predetermined constraints. convergent thinking: allows us to narrow down the number of ideas generated through divergent thinking in an effort to identify which ones have the most potential.

deliberate verus mindless practice in entrepreneuship

Engaging in deliberate practice shapes the brain and improves performance: Engaging in deliberate practice is even more worthwhile when you consider the affect it has on the brain—when certain brain cells sense a lot of focused repeated activity, chemicals are produced to create myelin, which increases the speed and strength of neural impulses, thereby improving performance. Regular practice without focused effort only reinforces mindless, automatic habits: In contrast, regular practice without focused effort, consistent feedback and guidance only reinforces mindless, automatic habits. a.There is a big difference between practicing out of habit and using your head, for example, virtuoso violinist Nathan Milstein was concerned that he wasn't practicing enough and when he asked his professor for advice, Milstein was told, "It really doesn't matter how long. If you practice with your fingers, no amount is enough. If you practice with your head, two hours is plenty." -Sustained efforts have cognitive benefits: Sustained effort, concentration, and focus have important cognitive benefits such as enhancing perception, memory, intuition, and the way in which we understand our own performance (or metacognition). Entrepreneurs who engage in deliberate practice benefit more: Entrepreneurs who engage in deliberate practice are better at storing new information and retrieving it when they need to, which helps them to plan, adapt, and make decisions more quickly in changing situations. Entrepreneurs make common mistakes leading to risk and failure: Among the most common mistakes entrepreneurs make is getting blindsided by passion by being overly optimistic in their skills and abilities, and underestimating their resources—mistakes that often lead to unnecessary risk and failure. Feedback is important: This is why it is important for entrepreneurs to seek out mentors whose business sense you admire to offer feedback, and guide you in your decision-making. Skills are transferable to entrepreneurship: Cognitive skills you developed through deliberate practice (by playing a musical instrument or sport, creative writing, etc.) are transferrable to entrepreneurship.

Conducting the Interview

Have a list of broad questions and a specific approach: Once you have a short list of broad questions and you think about how you will probe, it's important to have an approach—especially when trying to talk to strangers; a good tip when approaching is simply saying, "Do you have 2 minutes to talk about....?" or say what you are trying to understand and then include the 2 min question a.Then you jump into your first question; usually the stranger will likely give you more time, but if not be thankful for the data you got in two minutes and then go find another stranger. b.Take notes throughout, and if you are intending to also audio record the interview, make sure you ask permission first. c.Remember to use your questions as a guide only—it's best to keep the tone conversational and relaxed, but directed; the golden rule of interviewing is to actively listen to the other person. d. Practice a technique call parroting, which is repeating back what the person has said. a.The person may correct you because you have misrepresented what they said or expand and provide you a little more detail. e.In general, don't become so focused on your prepared questions that you neglect to pay attention to what the other person is telling you. Do not interrupt or try to guess the answers. If pause in convo, give them a minute to think what to say next f. Make sure you also record some basic facts about the person (gender, occupation, age, profession, industry, affluence, etc.) indirectly bc might feel offensive to the interviewee, so try to make some reasonable guesses. g.If you are unclear about something or have a question, don't be afraid to seek clarification. h. One of the most common interviewing mistakes is to seek validation for your ideas because at this stage, you either have a very early idea or may not even have an idea at all. focus should be on the people you interview, getting to know them, the problems they have experienced and how they have tried to solve them (or not), and the outcome. i. His answers may not be the ones you are looking for, and sometimes the truth hurts, but his feedback may lead to new insights and ideas. j. As you are wrapping up the interview, it's a good idea to ask your interviewee to provide introductions to other contacts—which is a useful way to continue your research and expand your network. K. Finally, in addition to thanking the interviewee on the spot, it's always common courtesy to follow up with a thank-you note or email afterward.

the myth of the isolated inventor

Ideas don't just spring fully formed into our minds, although the myth of the isolated inventor, working tirelessly from his or her workshop or laboratory, may lead us to think so. Well-known inventions worked upon in collaboration: Many of the most well-known inventions evolved because of both a substantial number of people working on them simultaneously, and improvements made by groups over years (Eli Whitney's cotton gin and Edison's lightbulb). Little reason to credit one person for the creation of a product or service: Other examples of inventions with long and varied histories include concrete, optical lenses, gunpowder, and vaccination (first developed in the 1700s, but not implemented until a century later—thus, there is very little reason to credit just one person for the creation of a novel product or service).

Innovation, Invention, Improvement, or Irrelevant?

Identifying ideas likely to succeed: Part of recognizing an opportunity is the ability to evaluate ideas and identify those with the highest likelihood of success. Rating an idea on four different dimensions: One framework for doing this is to rate an idea on four different dimensions: the idea may be an innovation, an invention, an improvement, or irrelevant. Of these, innovations and inventions are high in novelty, while improvements and irrelevant ideas are low in novelty Innovation: A successful idea scores highly as an innovation if the product or service is novel, useful, and valuable. High novelty, high value and usefulness -Innovations and inventions are often paired together, but the difference between them lies in demand. - Inventions: a novelty for customers - Improvement: enhanced existent products - The irrelevant category: non-useful products - Bizarre inventions can be marketable, too Inventions, by definition, score highly for novelty; but if an invention does not reach the market or appeal to consumers, then it will be rendered useless (the Post-it note took off because it was novel, useful, and practical—but it became an innovation of high value only when it hit the market). Inventions that succeed in finding a market move to the innovation stage. (high novelty, low value + usefulness) Improvement: There are many ideas that focus on improvement, based on enhancing existing products (folding sunglasses, serrated ice cream scoops, or liquid paper, for instance). Low novelty, high value and usefulness. still a strong market for these products, as many people will find them useful to a degree The irrelevant category: Finally, there are ideas that fall into the irrelevant category, scoring low on both novelty and usefulness (Pepsi's morning pick-me-up drink called Pepsi A.M., beverage giant Coors and its mountain spring water, and soup company Campbell's combined soup and a sandwich into one frozen microwaveable meal were arguably irrelevant). Low novelty, low value and usefulness Bizarre inventions can be marketable too: Even the most bizarre inventions can find a home (Billy Bob Teeth—fake rotting teeth which might seem ludicrous to many have sold over 20 million, generating more than $50 million in profit). Mood rings, slinky, etc. -Opportunities spring from ideas, but not all ideas are opportunities. Although we all have the capability to generate a huge range of ideas, not everyone knows how to turn an idea into a valuable, revenue-generating opportunity. Making an idea a reality is a process that requires time, resources, commitment, and a great deal of work. most opportunities in entrepreneurship demand high value and some degree of novelty. But how do we identify the right opportunities? The first step in the opportunity identification process is generating as many ideas as we can, for it is out of thousands of ideas that opportunities are born

self-efficacy and entrepreneurial intentions

Increasing number of studies on entrepreneurial self-efficacy (ESE): There have been an increasing number of studies on entrepreneurial self-efficacy (ESE), the belief entrepreneurs have the ability to begin new ventures. -essential part of the entrepreneurial mindset, and it is thought to be a good indicator of entrepreneurial intentions as well as a strong precursor to action Entrepreneurial self-efficacy can enable the entrepreneur to more effectively confront demands: Recent research suggests that entrepreneurial self-efficacy can enable the entrepreneur to more effectively confront demands or stressors and thus improve entrepreneurial performance. Self-confidence, self-efficacy, and arrogance: Arrogance leads a person to believe that he or she achieved success without help from others; further, the arrogant person may feel entitled to success and entitled to "bend the rules" to get ahead. ESE can be heightened through training and education. -research shows that people with high levels of self-efficacy tend to put in more effort, persist with an idea, and persevere with a task more than those people who possess low levels of self-efficacy. The GSES was designed by researchers as an assessor of our own actions and results: The General Self-Efficacy Scale (GSES) was designed by researchers to assess the degree to which we believe our actions are responsible for successful results. measures the belief we have in our ability to carry out difficult tasks, cope with adversity, persist in reaching our goals, and recover from setbacks. GSES: Measure of self-efficacy levels worldwide: The GSES has been used worldwide since the 1990s to measure the self-efficacy levels of a whole range of ages, nationalities, and ethnicities and is thought to be an accurate way of testing self-efficacy levels. -self-efficacy can change over time (increase w/ practice)

Managerial Versus Entrepreneurial thinking

Managers lead corporations but entrepreneurs lead startups: Entrepreneurial ventures are not smaller versions of large corporations; managers lead corporations but entrepreneurs lead startups. A startup environment has to face many more risks (and uncertainty) than a corporate organization: Leading in a corporate environment is very different than leading a startup environment because there is a lot more uncertainty and risk in the startup environments AND a lot less information and data too. a.A dinner party example can illustrate the difference between entrepreneurial and managerial thinking: if you are throwing a dinner party for a group of friends, you might draw up a menu, buy the ingredients, and cook the meal according to a set of instructions in the cookbook —here you are approaching the dinner party as a manager. b.In contrast, you might ask each person to bring one ingredient without telling them what to bring and 10 people show up with different ingredients; theirs plus the ingredients you already have in your kitchen tell you what you have to cook with; now, the group must come together, use the ingredients and create dinner—this is an example of entrepreneurial thinking—creating something without a concrete set of instructions.

4 pathways to opportunity identification

Pathways can be thought of in terms of steps: Pathways can be thought of in terms of steps, the opportunity identified is a bit more complicated and the environment in which it's identified is a bit more uncertain with each step. The increase in complexity and uncertainty may yield more valuable opportunities 1. Finding opportunities: Is the least complicated and perhaps most common form of identifying new opportunities. -Find pathway: assumes that opportunities exist independent of entrepreneurs and are waiting to be found. Generally, an opportunity is found when the entrepreneur sees a clear problem and develops a solution. The problem is known to most, but the entrepreneur is the one who acts on the potential solution 2. The search pathway: Is used when entrepreneurs are not quite sure what type of venture they want to start but engage in active search to discover new opportunities. We all possess certain information sets or knowledge bases. By actively searching these sets, we can access a wealth of information and uncover new opportunities. Typically, entrepreneurs find an area that they are interested in and then start searching for business opportunities Effectuate pathway: 3. Effectuating opportunities: Involves using what you have (skills, knowledge, abilities) to uncover an opportunity that uniquely fits with the entrepreneur; unlike finding and searching effectuating is more about creating opportunities rather than simply uncovering them through finding or searching. To identify opportunities, this approach advocates using what you know, whom you know, and who you are. Your role as an entrepreneur is to take action and see how the market responds, recognize patterns, and learn from iteration to define the opportunity as it evolves 4. Design or the final pathway: The final pathway, Design, is one of the most complex yet can be the most value-creating approaches; it can uncover high-value opportunities because the entrepreneur is focusing on unmet needs of customers—specifically latent needs. most complicated pathway because of the practice and imagination it takes to uncover true unmet needs. Design is another way to create opportunities because by identifying unmet needs, the entrepreneur is creating a new market. The four pathways can further be grouped into discovering opportunities versus creating opportunities.

the improvisation habit

Satisfies Learning Objective: 2.5 Explain how to develop the habit of improvisation. Improvisation is the art of spontaneously creating something without preparation: It is connected to the mindset because it helps us develop the cognitive ability to rapidly sense and act as well as change direction quickly. There is always the possibility of obstacles: Entrepreneurs may begin with a certain idea or direction, but obstacles such as limited resources, unforeseen market conditions, or even conflicts with team members can prevent them from executing their initial plans. They need to find a way to quickly adapt to circumstances: This means they need to find a way to quickly adapt to circumstances, think on their feet, and create new plans to realize their vision. -recent study showed that entrepreneurs starting new ventures who displayed more signs of improvisational behavior tended to outperform those who did not have the same tendencies -improvisation isn't about comedy, it's about reacting—being focused and present in the moment at a very high level. especially relevant to the world of entrepreneurship when uncertainty is high and the ability to react is essential -Major business schools offer courses on improvisation to teach: Creativity, leadership, negotiation, teamwork, and communication

Self-Leadership Habit

Self-leadership = a process whereby people can influence and control their own behavior to build their entrepreneurial business ventures: In the context of entrepreneurship, self-leadership is a process whereby people can influence and control their own behavior, actions, and thinking to achieve the self-direction and self-motivation necessary to build their entrepreneurial business ventures. Entrepreneurship requires a deep understanding of self and an ability to motivate oneself to act -three strategies: behavior focused; natural reward; constructive thought pattern

buying a small business

The entrepreneur is buying out the existing owner and taking over operations: In this arrangement, the entrepreneur is buying out the existing owner and taking over operations. Example: Chris Cranston of FlowDog: Chris Cranston, the owner of FlowDog, a canine aquatic and rehabilitation center outside of Boston, bought the business in 2009, changed the name but subsumed a loyal customer base, pool equipment, location, some employees, and a favorable lease; her business grew an average of 20 % each year.

ideas and opportunity recognition

The entrepreneurial mindset is what enables us to envision how a new product or service can generate value for a niche, an age group or interest segment, a geographic area, or a larger population. -a new idea that constitutes an opportunity, whether it is a product, service, or technology, must be new or unique or at least a variation on an existing theme that you are confident people will accept and adopt. The idea must involve something that people need, desire, and find useful or valuable. Or there must be a significant problem to solve. Finding solutions to problems and meeting customer needs are the essence of opportunity recognition.

Mindset as a pathway to action

The mindset is antecedent to action: There is no entrepreneurship without action, and the mindset is antecedent to action: the entrepreneurial mindset requires the habits of self-leadership, creativity, and improvisation. à create an emotional platform for entrepreneurial actions No new venture, product, organization, or anything else without a mindset with a bias toward action: You can have the best idea in the world, but without a mindset with a bias for action, there is nothing—no new venture, product, organization, or anything else. -taking action is the only way to get results. Even the process of changing and expanding your mindset involves taking action through deliberate practice. Self-efficacy is needed to take action: But taking action requires a degree of confidence, and belief in our abilities—an attribute known as self-efficacy.

Corporate Entrepreneurship (Intrapreneurship)

a process of creating new products, ventures, processes, or renewal within large corporations -Corporate entrepreneurs see opportunities and create something of value to enhance competitive competition: Corporate entrepreneurs see opportunities, build teams, and create something of value to enhance competitive position and organizational profitability. a. Deloitte-owned design consultancy Market Gravity, based in the UK, celebrates the achievement of corporate entrepreneurs by holding an annual Corporate Entrepreneur Awards (CAE) ceremony. b.Corporations like Google, Apple, Virgin, and Zappos are also known for encouraging an entrepreneurial spirit.

Seven Skills of Designers That Entrepreneurs Should Have

a.Observation: Designers are curious; they always look at the world through different lenses and making notes of things others overlook. b.Listening: Designers develop active listening skills to they are able to identify what really matters to others; the best designers never assume they know what is best for whom they are designing. c.Design Change: Designer seeks to solve problems or improve upon what may already exist; new products, service, processes lead to change. d.Context & Integration: Designers design in context which helps us create meaning and understanding; attention to context brings more relevance to a solution—for example, you design a chair for a room; a room for a house; a house for a neighborhood. e.Solutions-driven: The goal of any designer is to solve a problem that was identified through observing and listening. f.Consideration: Good designers consider their impact of their work on people, the environment, and economies. g.Unbound: Great designers are unbound by the past and are open to the less-than-obvious solutions to problems; they ask why not when other people say it can't be done.

interviewing + the 2 types of interviews

an important part of the inspiration phase, as it is one of the most effective, second to observation, to understand user and identify needs. an be an alternative and/or complement to observation. It's simply another way to collect real and valuable data. A skilled interviewer is open minded, flexible, patient, observant, and a good listener. Like observation, interviewing is a skill that improves with practice. Feedback interviews: It's very common for entrepreneurs to interview customers after they have a product or service, called feedback interviews. Need-finding interviews: it's also common to use interviewing much earlier in the process to also develop insights and identify needs, called need-finding interviews.

entrepreneurship inside

consist of employees who think and act entrepreneurially: Within different types of organizations. They need to gain support from senior managers: These types of entrepreneurs often need to gain inside support from senior managers or other team members for their initiatives. Inside entrepreneurs and other entrepreneurs both wish to create something of value: What inside entrepreneurs have in common with other entrepreneurs is the desire to create something of value, be it a new groundbreaking initiative, or a new department, product, service, or process. a. For example, Peter Modigliani, a defense department acquisition analyst, at Massachusetts-based, Mitre, an organization that provides guidance to the federal government, breaks the traditional boundaries set by the chain of command by liaising with people inside and outside the organization to generate different perspectives.

gyan-i case discussion critical thinking question: As you think about doing something entrepreneurial, today or someday, what is your motivation for doing so?

could be money, fame (be careful of these), passion (to help others), wanting to change the world or your community (through social entrepreneurship)

VentureBlocks simulation case study

design thinking framework: strong opportunities should be at the intersection of desirability, viability and feasibility ventureblocks logic: Part 1: -Spot a Space -> Ask and Listen Part 2 -Build Insights -> Identify Opportunities -Using early customer discovery in search of product-market fit.

Three processes before identifying opportunity

entrepreneurs go through three processes before they are able to identify an opportunity for a new business venture: idea generation, creativity, and opportunity recognition. -journey from idea to opportunity is important to recognize because the difference between someone who comes up with an idea and an entrepreneur is that the entrepreneur turns this idea into an actionable opportunity that has the potential to become a viable business and generate profit. --the journey starts w/ many ideas, which are narrowed down to determine which are most useful for potential customers à then determine which ones can generate economic value à act on opportunity 1. Generating ideas for something new: The first step is generating lots of ideas for something new. 2. Sorting ideas during the creativity stage: During the creativity stage, we sort out these ideas for newness and usefulness. 3. Assessing at the opportunity recognition stage: Finally, the opportunity recognition stage allows us to sort out the remaining ideas for both newness and usefulness, and also assess them for their ability to generate economic value. Transcending existing knowledge structures to move from idea to opportunity: The second step is the creativity stage which needs us to transcend the boundaries of our existing knowledge structures—it is important to think creatively and look at identification as a more concrete method of moving from ideas to opportunity

Constructive thought pattern strategies of self-leadership

help us to form positive and productive ways of thinking that can benefit our performance. (much of our behavior is influenced by the way we think). strats include identifying destructive beliefs and assumptions and reframing those thoughts by practicing self-talk and mental imagery. -we can engage in mental imagery to imagine ourselves performing a certain task or activity. In fact, studies show that people who visualize themselves successfully performing an activity before it actually takes place are more likely to be successful at performing the task in reality. -concept of self-leadership has been related to many other areas, such as optimism, happiness, consciousness, and emotional intelligence

needs

lack of something desirable, useful, or required that are uncovered through the design thinking process. Entrepreneurs who succeed in identifying and satisfying the needs of customers have a better chance of gaining traction in a market. It's better to create something that people need because they are more likely to pay for something they need! -Fashion entrepreneur Shaymaa Gaafar, featured in Entrepreneurship in Action, used design thinking to create a brand that encourages women to express themselves while staying true to their personal values. Muslim women in middle east wanted clothes that were modest but still fashionable. Relies on independent contractors to keep costs to minimum while meeting demand design thinking is a tool that focuses on different ways to solve problems to best meet the needs of the people for whom you are designing. In other words, how do you identify new solutions that meet the needs of a market? That is the essence of design thinking, and it can be taught to entrepreneurs -aligns w/ many facets of entrepreneurship method --applies to everyone, regardless of experience levels; it involves getting out of the building and taking action; it requires continuous practice with a focus on doing in order to learn; and it works best in unpredictable environments. Design thinking incorporates the core elements of the Method and helps put the Method into action because it requires you to collaborate, cocreate, accept and expect setbacks, and build on what you learn. -Design thinking does not see failure as a threat as long as it happens early and is used as a springboard for further learning -an iterative and often messy process that uses observation, interviewing, data synthesis, searching for and generating alternatives, critical thinking, feedback, visual representation, and creativity to yield valuable and innovative solutions. By using design thinking, entrepreneurs will be better able to identify and act on unique venture opportunities, solve complex problems, and create value across multiple groups of customers and stakeholders.

Cognitive styles attributed to successful entrepreneurs _____

include a higher degree of intelligence, creativity, and self-efficacy—all of which influence opportunity recognition, and may explain why some entrepreneurs are more likely to become aware of opportunities while others may remain oblivious.

ventureblocks discussion questions: Many people want to be entrepreneurs but struggle with finding a good opportunity. What did you learn in the simulation about where to start?

learned to start by trying to begin convos w/ strangers abt their nanus and getting rejected to learn more abt what it's like to own a nanu and where pain points exist

Managerial (prediction) Versus Entrepreneurial (creation) thinking traits

managerial: -linear -optimization -avoid failure at all costs -competitive -knowable -plan to act -big planning -wait until you get what you need -expected return entrepreneurial: -small actions -start w what you have -acceptable loss -iterative -embrace and leverage failure collaborative -unknowable -act to learn

Myths of Entrepreneurship

media images of entrepreneurs exaggerate global overnight sensations abt ppl like steve jobs, bill gates, etc.: -These people are inspirational but not identifiable. few can identify with their stories. There is no such thing as an overnight success. They do little to represent the reality of entrepreneurship because the truth is there is no such thing as an overnight success.

ventureblocks discussion questions: How do you move from talking to people to identifying potential opportunities?

once you have interviewed people, build strong insights that will help you to spot opportunities. building insights: -strong insights are connected to the data, the need leaves room for many types of situations, and explains why the need matters... -needs are verbs (focus on needs); solutions are nouns. Needs emerge from the interviews and ideas emerge from needs

The Role of Mindset in Opportunity Recognition

reflects in recognizing and creating opportunities: As our mindset grows and expands through practicing self-leadership, creating, and improvising, we are more inclined to recognize and create opportunities. We are better able to identify exciting opportunities and to take action to begin new ventures, products, or organizations. We need to recognize the importance of an optimal mindset for entrepreneurship: In order to develop an optimal mindset for entrepreneurship, we need to recognize its importance, and consciously take the steps to nurture it through the practice of self-leadership, creativity, and improvisation. Growing mindset is the key to successful entrepreneurship: A continuously expanding and growing mindset is the key to successful entrepreneurship.

yoee baby case discussion critical thinking questions: What's more important the idea or the network, to help you act on the idea?

the argument can be made that both are equally important. Reasons for one over another might include: 1) Execution (acting on an idea) is facilitated and advanced by a strong network. A good idea that isn't well executed on will ultimately fail...and your first idea might be wrong anyway! 2) An idea is what drives any venture. Without a good idea, a venture may not get the backing it needs from a network that could ultimately help it advance. Hence, the idea is much more important.

For an opportunity to be viable, the idea must be _____

unique: It must be at least a variation on an existing theme you are confident that people will accept and adopt. -It must involve something that people need, desire, find useful, or find valuable, and it must have the capacity to generate profit. The best ideas are based on knowledge and the ability to transform the idea into a viable opportunity.

Eight Components of the Practice of Entrepreneurship

§Identify your desired impact on the world. §Start with means in hand (who are you and what do you know?). §Describe the idea today (what can you start w//have). §Calculate affordable loss. §Take small action. §Network and enroll others in your journey (collab). §Build on what you learn (your failures). §Reflect and be honest with yourself. •Continuing with the Practice sees affordable loss increases with each action. --As you continue with the Practice, you'll find that your affordable loss changes (usually increases) with each action as your idea receives greater validation, you have a solid and growing knowledge base, more people have joined your team, resource stocks increase, and your overall confidence in your ability to act grows.

doctory.pk critical thinking questions: 1.In what ways does Maliha Khalid's approach to life exemplify the entrepreneurial mindset advocated in this chapter? Does her approach differ in any ways?

•The ability to quickly sense, take action, and get organized under uncertain conditions •By reaching out to her uncle, whom she knows has experience that may be of use to her venture, Maliha opens the door for new lessons and opportunities (self-awareness/metacognition)

doctory.pk case discussion background

•The case investigates how Maliha Khalid's own experience with (problem) poor access to adequate information added a layer of additional stress to the already very frustrating medical situation she found herself in when she was a teenager...prior knowledge of the experience (in Pakistan) •With the help of her uncle and the will to address a widespread issue (due to affordability, rurality, culture and trust), Maliha founded first Ezpz Sehat, then Doctory.pk •Doctory.pk is a platform that connects people with little or no access to doctors/healthcare/healthcare info. to the right resources across Pakistan: -Free call-line to speak to a doctor...60-70% of the callers can be treated with non-pharmaceuticals -had a growth mindset: She knew that she found a problem she wanted to solve, but also knew that she did not have any experience in healthcare... she reached out to her uncle, whom she knew had experience that would be valuable to her own growth and her business (first launch point). understand your resource base and who we can tap into so we can leverage that info to get started on pathway to success --•This mindset has a huge impact on not only Maliha's own individual abilities but also her business' capabilities •For example, the first venture she created with Ezpz Sehat proved to be a great concept, but ultimately would alienate much of the people who she was trying to reach with her solution (too much of a burden to get access to site) •Consequently, Maliha made an important pivot into the direction of a much more appealing solution (eventually became Doctory.pk.) •This touches on an entrepreneurial notion that has wide implications: the business will often reflect the mindset of the business owner. Had Maliha maintained a fixed mindset, Doctory.pk may have never been able to come to fruition

key influence of opportunity identification

Access to the right information -However, access to information is not enough—it is how this information is used that makes the real impact.

doctory.pk critical thinking questions: Can you think of limitations you are placing on yourself that may be restricting your ability to achieve your goals? Name some specific examples

Could be fear (of embarrassment, loss), distractions, procrastination, not sure where to start, being lazy

facts about design thinking

Design thinking is a non-linear process: The design-thinking process is not linear, and it is not unusual to loop back through the three stages of inspiration, ideation, and implementation when exploring and testing new ideas. Successful ideas too need to be revisited to identify weaknesses and remedy them: An initially successful idea may need to be revisited; the concept might need a new round of inspiration, ideation, and implementation to identify key weaknesses and devise ways to remedy them. Uncovering the real problems and needs through observation: The design challenge gives us direction, but through observation, we begin to uncover the real problems and needs.

the power of mindset example: franklin yancey

How Franklin Yancy's mindset motivated him to start his own business selling comfortable stadium seats for sporting events a.We could say that Yancey was in the right mindset to start a business because he saw a problem that needed to be fixed and was curious about finding solutions. b.Thanks to experience, he had the confidence to take action by knocking on doors and gaining support for this idea. c.He also believed enough to persist with his idea, even in the face of high financial risk. d.Ultimately it was Yancey's mindset that kept him on the right track and led to his success in multiple businesses.

natural reward strategies of self-leadership

endeavor to make aspects of a task more enjoyable by building in certain features, or by reshaping perceptions to focus on the most positive aspects of the task and the value it holds.

ground rules for brainstorming during ideation phase of design thinking

§Suspending all judgment; §Being open to wild suggestions; §Generating as many ideas as possible; and §Putting ideas together and improving on them. Holding back criticism until the creative current has every chance to flow: Alex Osborne, who wrote about creativity in his text Applied Imagination (invented in 50s by him), mentioned one of the key factors of brainstorming which was to "hold back criticism until the creative current has had every chance to flow." There are four ground rules for brainstorming: He considered these as the four ground rules for brainstorming as pivotal to divergent thinking -ideation phase uses brainstorming as a way to generate as many ideas as possible to meet the needs identified in the inspiration phase

doctory.pk critical thinking questions: In your own words, how would you explain Maliha's entrepreneurial journey?

•Maliha had an experience that she deemed unfair. She quickly realized that hundreds of thousands of other people often have the same experience (market potential). •She identified and defined the problem and sought out a solution. After finding the help, she needed to get started, Maliha's venture came to life.

improvisation guidelines

-Improvisation is not just for actors or musicians -There's no such thing as being wrong -Nothing suggested is questioned or rejected (no matter how crazy it might sound!) -Ideas are taken on board, expanded, and passed on for further input -Everything is important -It is a group activity - you will have the support of the group -You can trust that the group will solve a certain problem -It's about listening closely and accepting what you're given -It's about being spontaneous, imaginative, and dealing with the unexpected -One of the most useful improvisation exercises to address this fear is the "Yes, and" principle. This means listening to what others have to say and building on it by starting with the words, "Yes, and." -Why don't we practice improvisation more often? Self-doubt is the most common barrier to improvisation: "I don't want to pitch my idea. I hate speaking in public"; "What if I freeze up?"; and even worse, "What if I make a fool of myself?" The fear underlying the self-doubt is the fear of failure, which stems from not being able to plan in advance.

gyan-i case discussion critical thinking question: The Entrepreneurship Method is about taking action and trying new things. Do we see evidence of the method during the creation of Gyan-i?

-action trumps everything. --used circular process approach through entrepreneurship method -- start w/ impact statement (usually centered around solving a problem--> passion for making a difference) -- then inventory of skills and find out affordable loss -- then small risk/invest a little, then if goes well, build upon it and invest more -experimented w/ new tech in cybersecurity space and pivoted -failure and outsource model -leverafed resources and bootstrapped: saas off the shelf, co-op space, inbound marketing -means at hand =skill sets and experience, former employer -affordable loss = salary, savings, reputation -network and enroll others = outbound marketing; hired marketing professional ALSO: effectuation (creating future w/ means you have at hand) -represents way that entrepreneurship is in reality/how ppl become successful

entrepreneurship as a process (the wrong way to view it)

-known inputs and predicted outputs -steps to complete -linear -predictive -planning focus -expected return -competitive

ventureblocks case: characteristics of bad questions:

1. too soon: asking a stranger for commitment or personal information before it's appropriate in the conversation. 2. poor listener: clearly didn't listen to the nanu owner's earlier responses. should take notes and indicate body language that might indicate a question did not resonate. Need to be a good and active listening 3. leading: make assumptions about the customer that may be false. Drag biases into the conversation. could be offensive and/or cloud interview 4. sales pitch: ask the customer if they're interested in a product or service. Should be learning about nanu owners, not pitching or selling. Not looking for solution yet. Looking to learn abt problems that ppl may have as market grows 5. dead end: usually have yes/no or one word answers, and don't give the customer a chance to tell anything meaningful. best to ask open-ended ?s that give chance to expand 6. insulting: offend the customer so much that they end their conversation!

Some entrepreneurs are more adept at spotting opportunities because ___

1.They have access to more information 2. They are risk takers: They may be more prone to pursuing risks rather than avoiding them. 3. They may possess different cognitive styles from those of non-entrepreneurs. -reasons can be attributed to an entrepreneur's level of alertness as well as their persistence and optimism. Persistence helps entrepreneurs power through obstacles and optimism helps drive persistence. The combination of persistence and optimism encourages a state of alertness and readiness to identify and act on new opportunities that others may miss or just don't see

Curry in a Hurry thought experiment (entrepreneurial and managerial thinking in action)

: To further examine entrepreneurial and management thinking, here is an example based on a thought experiment called "Curry in a Hurry" devised by Darden School of Business professor Saras D. Sarasvathy. a.Making a start in the restaurant business: To start an Indian restaurant in your hometown, you could begin by assessing your market through surveys, and focus groups to separate those people who love Indian food versus those who don't and then narrow the "love it" segment down to the customers whom you could approach when your restaurant opens. b.This approach is based on two big assumptions: (1) you have the finances and resources for research and marketing; and (2) you have the time to invest in intensive planning and research. c.To implement the entrepreneurial approach, you could start by doing just enough research to convince an established restauranteur to become a strategic partner, or persuade a local business owner to invest in your restaurant, or even create some dishes to bring to a local Indian restaurant and persuade them to let you set up a counter in their establishment to test a selection there or be a lunch delivery service à then launch. d.Getting out in your community and building relationships with customers and strategic partners can lead to all sorts of opportunities. e.Entrepreneurship under creation view is based on how entrepreneurs think; they navigate uncertain worlds to create rather than find existing opportunities; they make markets, learn from failure, and connect with a variety of stakeholders to fulfill their vision of the future.

questions to answer in design-thinking process

A design-thinking approach: Taking a design-thinking approach forces you to answer an entirely different question from Can it be done? Will it make money? In the beginning; the first question is: What do people need? -CEO of IDEO, Tim Brown, credits one key phrase for sparking the design-thinking process: "How might we?" The "how" part presumes that the solutions to the problems already exist and they just need to be unearthed; the "might" part suggests that it is possible to put out ideas that may or may not work; and the "we" part means that the process will be a fruitful and collaborative one.6 In short, "How might we?" encourages the design thinker to believe that anything is possible.

learning and developing a growth mindset

Although we tend to exhibit one mindset or the other, even if your mindset is a fixed one, it is possible to learn a growth mindset and thereby boost your chances for happiness and success. -One needs to become aware of the "voice" in one's head and take action: It is the voice that questions your ability to take on a new challenge, by recognizing that you have a choice in how you interpret what that voice is telling you, by responding to that voice, and by taking action. Adjust our mindset and take action even in uncertain circumstances: Our mindset is not dependent on luck, nor is it fixed: we each have the capability to adjust our mindset to recognize and seize opportunities, and take action even under the most unlikely or uncertain circumstances, as long as we work hard and practice. -By practicing listening and responding to each of these voices, you can build your willingness to take on new challenges, learn from your mistakes, accept criticism, and take action -our mindset is not dependent on luck, nor is it fixed: We each have the capability to adjust our mindset to recognize and seize opportunities and take action, even under the most unlikely or uncertain circumstances, but it takes practice. This is why the mindset is essential to entrepreneurship. -Richard Wiseman's experiment on luck to determine what is a lucky or unlucky person: 2 groups of people (one group felt lucky, others unlucky) and asked to count how many photos in a newspaper --unlike the "lucky" ppl, the unlucky people had missed this instruction (to stop counting/told how many photos in the paper) because they were too focused on what they thought they were supposed to look for. Wiseman concluded that unlucky people tend to miss opportunities because they are too focused on something else, whereas lucky people tend to be more open to recognizing opportunities. Wiseman's overall findings have revealed that "although unlucky people have almost no insight into the real causes of their good and bad luck, their thoughts and behaviors are responsible for much of their fortune" (or misfortune).