ENTREPRENEURIAL CREATIVITY

K.Yogalakshmi1

SYNOPSIS:

 The introduction
 Entrepreneurship
 Why Entrepreneurship
 Who Is An Entrepreneur
 The Characteristics Of An Unique Entrepreneur
 Entrepreneurial Creativity-Need
 The Factors Influencing Entrepreneurial Creativity
 Conclusion

THE INTRODUCTION

The early history of entrepreneurship in India reflects from the culture, customs and
tradition of the India people. The Baliyatra Festival of Cuttack, Orissa reminiscence of past glory
of International trade. To process of entrepreneurship therefore passed through the potential roots
of the society and all those who accepted entrepreneurial role had the cultural heritage of trade
and business. Occupational pursuits opted by the individual under the caste system received
different meaning of value attached to entrepreneurship. Which is based on social sanctions?
Vaishyas are considered to venture in to business pursuits. As society grew and the process of
business occupation depended and the value work tended towards change and the various
occupational role interchanged with non-role group and sub-groups. People from different castes
and status also entered into the entrepreneurial role. Basic objective in developing

1
Lecturer, Dept. of Business Administration, Annamalai University
entrepreneurship and multiplying them in the society has been to enable the society to generate
productive human resource, mobilize and sustain the same in subsequent process of
development. The spontaneity and continuity of the process would depend on the kind of people
that can be prompted and groomed in the entrepreneurial career. Sociologists, Psychologists and
economists have all attempted to give a clear picture of the entrepreneur. Sociologists analyze
the characteristic of entrepreneurs in terms of caste, family, social value and migration.
Psychologists on the other hand attempt to isolate entrepreneurs from general population on
various personality trials such as need for achievement, creativity, propensity to take risk,
independence leadership etc. Economists lighted situational characteristics such as occupational
backgrounds access to capital business and technological experience and managerial skills with
economic gains considered as characteristic of entrepreneur. As entrepreneur by implication is
one who ventures out, who prefers change as a means of growth and it the process is prepared to
take a calculated risk while taking risks he is aware of the possibilities, success as well as the
consequence of failure. The entrepreneur is a critical factor in economic development and an
integral part of socioeconomic transformation. He is the major economic function who envisages
new opportunities, new lines of production, new products and who can coordinate effectively.
The true entrepreneur is one who is endowed with more than average capacities in the task of
organizing and coordinating the various factors of production. An entrepreneur is one who
always searches for change, responds to it at the right occasion and exploits it as an opportunity.

ENTREPRENEURSHIP

The emergence of entrepreneurship in this part of the country got localized and spread
effect, took its own time. The concept of growth theory seems to be closely related in explaining
the theory of entrepreneurship development as well. After the Second World War
entrepreneurship received new meaning for attaining economic development within the shortest
possible time. But in the process they were seriously handicapped by the rigid institutional setup,
political instability, marketing imperfection and traditional value system. Britishers for their own
ulterior motive destabilized the then self sufficient Indian economy. England flourished and
India had to pay for that. In the process India suffered heavy industrial loss. The
entrepreneurship is usually understood with reference to individual business. Entrepreneurship
has rightly been identified with the individual, as success of enterprise depends upon
imagination, vision, innovativeness and risk taking. The production is possible due to the
cooperation of the various factors of production, popularly known as land, labour, capital,
market, management and of course entrepreneurship. The entrepreneurship is a risk-taking
factor, which is responsible for the end result in the form of profit or loss. Entrepreneurship is a
process undertaken by an entrepreneur to augment his business interests. It is an exercise
involving innovation and creativity that will go towards establishing his or her enterprise.
Entrepreneurship is a compose skill, the resultant of a mix of many qualities and traits, which
include tangible factors as imagination, readiness to take risks, ability to bring together and put
to use other factors of production, capital, labour and land as well as other intangible factors such
as managerial skill, ability to mobilize scientific and technological advances etc.

Entrepreneurship has the following dimensions

• A theory of evolution of economic activities.

• A continuous process of economic development.
• An ingredient to economic development.
• Essentially a creative activity or an innovative function.
• A risk taking factor which is responsible for an end result.
• Usually understood with reference to individual business.
• The name given to the factor of production, which performs the functions of enterprise.
• Creates awareness among people about economic activity.
• Generates Self-employment and additional employment

WHY ENTREPRENEURSHIP

• To improve backwardness of the people.

• Economic development of the region.
• To analysis resource utilization.
• Proper utilization of human potentiality.
• Special attention to take up new activities.
• To create self-employment and generation of employment opportunity.
 • Eradication of regional imbalances.
• Better economic gain.

Bruyat and Julien (2000:166) are of the opinion that good science starts with good definitions
and that a minimum level of consensus is needed on the definition of what the field is and what it
is not.

The challenge of defining entrepreneurship is compounded by, inter alia,

• The fact that the understanding of the word "entrepreneurship" is often personal-like
"creativity" or "love", all have an opinion about it
• “Entrepreneurship" is increasingly synonymous with "good"
• While "entrepreneur" has some tangibility because it refers to a person, “entrepreneurship" is
more difficult to define because it is an abstraction, and
• Definition is difficult when it is assumed that entrepreneurship is something
Opposed to, or divorced from, management (Kao 1991:14).

WHO IS AN ENTREPRENUER

The word "entrepreneur" is derived from a French root ‘entreprendre’, meaning, "to
undertake". The term "entrepreneur" seems to have been introduced into economic theory by
Cantillon (1755) but Say (1803) first accorded the entrepreneur prominence. It was Schumpeter
however, who really launched the field of entrepreneurship by associating it clearly with
innovation. Drucker’s definition of entrepreneurship, namely a systematic, professional
discipline, brought a new level of understanding to the domain (Maurer, Shulman, Ruwe &
Becherer 1995:526). Sharma and Chrisman (1999:12) identified two clusters of thought on the
meaning of entrepreneurship. One group focused on the characteristics of entrepreneurship (e.g.
innovation, growth, uniqueness) while a second group focused on the outcomes of
entrepreneurship (e.g. the creation of value).

• He is a person who develops and owns his own enterprise

• He is a moderate risk taker and works under uncertainty for achieving the goal.
 • He is innovative
• He peruses the deviant pursuits
• Reflects strong urge to be independent.
• Persistently tries to do something better.
• Dissatisfied with routine activities.
• Prepared to withstand the hard life.
• Determined but patient
• Exhibits sense of leadership
• Also exhibits sense of competitiveness
• Takes personals responsibility
• Oriented towards the future.
• Tends to persist in the face to adversity
• Convert a situation into opportunity.

THE CHARACTERISTICS OF AN UNIQUE ENTREPRENEUR ARE

• Need for achievement

• High need for power
• Independence
• Propensity to take risk
• Personal modernity
• Support
• Business enterprise
• Leadership

SKILLS REQUIRED FOR BEING AN ENTREPRENEUR

I. Technical skills

• (i) Writing
 • (ii) Oral communication
• (iii) Monitoring Environment
• (iv) Technical Business Management
• (v) Technological developments
• (vi) Efficient Interpersonal relationship
• (vii) Effective Listening
• (viii) Ability to organize
• (ix) Network Building
• (x) Management Styles
• (xi) Coaching
• (xii) Being an effective team player.

II. Business Management Skills

• (i) Planning and goal setting

• (ii) Decision making
• (iii) Human Relations
• (iv) Marketing finance
• (v) Accounting
• (vi) Management
• (vii) Control
• (viii) Negotiation
• (ix) Venture Launch
• (x) Managing growth

III. Personal Entrepreneurial Skills

• (i) Self discipline

• (ii) Risk taking attitude
• (iii) Being creative
• (iv) Logical and analytic
• (v) Persistent
• (vi) Visionary leader
• (vii) Ability to manage change
• (viii) Articulate

ENTREPRENEURIAL CREATIVITY

Entrepreneurial Creativity is about coming up with innovative ideas and turning them
into value- creating profitable business activities.

Entrepreneurs are entrepreneurial, as differentiated from managerial or strategic, because

they think effectually; they believe in a yet-to-be-made future that can substantially be
shaped by human action; and they realize that to the extent that this human action can control
the future, they need not expend energies trying to predict it. In fact, to the extent that the
future is shaped by human action, it is not much use trying to predict it – it is much more
useful to understand and work with the people who are engaged in the decisions and actions
that bring it into existence.

Entrepreneurial creativity = creativity × entrepreneurial action.

Entrepreneurial activity is the enterprising human action in pursuit of the generation of

value, through the creation or expansion of economic activity, by identifying and exploiting
new products, processes or markets.

Entrepreneurial creativity is a synergistic combination of four capabilities

1. Creative, lateral and systems thinking skills

2. Cross-functional expertise
3. motivation
4. Entrepreneurial action and technology of achievement.
Creativity

Creativity is a continuous activity for the entrepreneur, always seeing new ways of doing
things with little concern for how difficult they might be or whether the resources are available.
But the creativity in the entrepreneur is combined with the ability to innovate, to take the idea
and make it work in practice. This seeing something through to the end and not being satisfied
until all is accomplished is a central motivation for the entrepreneur. Indeed once the project is
accomplished the entrepreneur seeks another 'mountain to climb' because for him or her
creativity and innovation are habitual, something that he or she just has to keep on doing.
Psychologists have presented various definitions to explain the meaning of creativity.

Stagner and karwoski

Creativity implies the production of a totally or partially novel identity-

Spearman
Creativity is the power of the human mind to create new contents by transforming
relations and thereby generating new correlates.

FACTORS INFLUENCING ENTREPRENEURIAL CREATIVITY

Creative thinking

Creative thinking is the capacity to think outside the box and put existing ideas together
in a new combination. It determines how flexible and imaginatively approach problems. Creative
problem solving as a process was described as a four stage process of preparation, incubation,
illumination and verification. Vertical thinking is defining problem in only one way without
considering alternative views whereas lateral thinking is seeking to solve a problem by non-
conventional, apparently illogical means. This process and willingness to look at things in a
differently way. Lateral thinkers generate alternate ways of viewing a problem and problem
multiple definitions.
Cross-functional expertise

Cross-functional expertise is the knowledge and skill set on various functional areas and
disciplines

Motivation

Entrepreneurs are motivated to start a business because of the factors like ambitious
factors, compelling factors and facilitating factors. Whatever may be the reason, it can be said
that in most of the times of the history of human civilization, there were entrepreneurs who did
independent business and this trend of history still continues. For the last few decades in all over
the world, entrepreneurs are regarded as value adding people to the society.

The common man thinks that people go into business and become entrepreneurs solely to make
money. The desire to earn money is no doubt an important motivating force. But entrepreneurs
are motivated not for profits alone. Several research studies have been conducted to identify the
factors that inspire entrepreneurs.

The motivating forces

P.N. Sharma identified nine motivating factors which are as follows

• Educational background
• Occupational experience
• Desire to work independently in manufacturing line
• Desire to branch out to manufacturing
• Family background
• Assistance from government
• Assistance from financial institutions
• Availability of technology
• Availability of raw material
 • Other factors such as demand of a particular product, utilization of surplus money etc

These factors can be classified as internal and external factors. The first five factors are
called as internal factors and the final four factors are external motivators.

Cooper concluded that there are three group of factors that influence an entrepreneur. The
characteristics of the entrepreneur including his background is called as internal factors. The
organization for which he has been working earlier which might be turned as incubator
organization and the third group is the external factors influencing are called as external factors.
Another study has identified three factors as entrepreneurial ambitions, compelling reasons and
facilitating factors.

CONCLUSION

Being a high–achieving entrepreneur is not that easy. An entrepreneur should have

several special characteristics that help them to become a successful businessman. An
entrepreneur should be a risk taker; he/she should be innovative, self-confident, goal setter, hard
worker, and accountable. In other words, entrepreneurs must be persistent, self-confident,
creative, and optimistic and independent minded. They are realistic about working hard and
driving toward measurable results, tend to have superior conceptual abilities and are generally
emotionally stable. Not only theses characteristics develop the entrepreneurial talent whereas the
entrepreneurial creativity should also be developed through proper training and learning.
REFERENCES

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