LESSON 1 LESSON 2

INNOVATION - Generating and exploring ideas MOTIVATION – The enterprising person is highly
and how they can be exploited through product motivated, energetic, and has a capacity for hard
and service offerings. work. They are busy, driven, dynamic and highly
ENTREPRENEURSHIP - Creating and driving a committed to getting things done.
sustainable business to achieve objectives. CREATIVE TENDENCY - The enterprising person is
ENTREPRENEUR - is someone with the talent, restless with ideas and has an imaginative
skill and determination to create and drive a approach to solving problems. They tend to see
viable business that transforms innovation into life in a different way.
value. CALCULATED RISK-TAKING - The enterprising
Seven Elements Domain of Entrepreneurship person is opportunistic and identifies goals they
wish to pursue. This will usually involve some risk
1. Recognition
to them.
2. Exploration
3. Exploitation of future opportunities. LOCUS OF CONTROL - The enterprising person
4. Creation of new ventures has an internal rather than external locus of
5. Creation of new products or components control which means that they believe they have
6. Creation of new markets or even control over their own destiny and make their
Industries own luck.
7. Creation of wealth.
‘’Your brand is a reflection of who you are and
what you believe’’
‘‘Your brand is a perception or emotion,
maintained by somebody other than you’’

IDENTIFYING THE AIMS

1. Permission to be yourself – express your
authentic self, be the person you are meant to be
2. Gains in confidence – look at your strengths
GOALS OF INNOVATION
and know you have something of value to offer
Improving quality 3. Building credibility – through consistent
Creation of new markets actions that align with your brand
Extension of the product range 4. Showcasing your specialty – use your unique
Reducing labor cost combination of work experience,life experience
Reducing materials and personal characteristics to determine your
niche
Reducing environmental damage
5. Leaving your mark – people will remember
Replacement of products/services
you through your actions, your expertise and the
Reducing energy consumption emotional connections that you make
Improving production process 6. Connection to your target audience – a strong
Conformance to regulations personal brand helps you interact with your
target audience in a clear, consistent way that LESSON 3
quickly becomes familiar INTRAPRENEUR - is an employee who takes
7. Distinguishing yourself from the competition direct responsibility for turning idea into a new
– make sure your target market product or service. It refers to a system that
discerns something different about you allows an employee to act like an entrepreneur
8. The support you need – be clear about what within a company or other organization.
you need so you can ask for support with clarity FAILURE - is a prerequisite to invention, and
9. Focusing your energy – use your brand like a organizations need to encourage risk-taking and
filter to help you decide what to focus your learning from mistakes.
energy on
10. Letting yourself be lazy – a personal brand FIVE BEHAVIORAL ATTITUDES:
thrives Be willing to change
Build on firm foundations
INNOVATOR – someone who introduces changes Have a clear strategic vision
and new ideas.
Shift mindsets
Encourage innovation
QUALITIES OF INNOVATORS
Start Somewhere
LESSON 4
Innovators Value Innovation
ENTREPRENEURSHIP - The process of identifying
Encouragement of Risk Taking opportunities for which marketable needs exist
Staying positive and assuming the risk of creating an organization
Innovators teach others to satisfy them.
Being a team player SMALL BUSINESS MANAGEMENT - The ongoing
process of owning and operating an established
Innovators Look for patters everywhere
business.
Innovators connect and collaborate

Entrepreneurship involves the start-up process.

7 THINGS THAT INNOVATORS SHOULD Small business management focuses on running
OVERCOME a business over a long period of time and may or
1. Finding an idea. Creativity is the hardest may not involve the start-up process.
challenge
2. Developing a solution.
STAGES OF ENTREPRENEURSHIP PROCESS
3. Finding a sponsor and funding
4. Reproduction Triggering event. A specific event or occurrence
5. Reach a customer that sparks the entrepreneur to proceed from
6. Beat competitors thinking to doing.
7. Timing Implementation. The part of the entrepreneurial
Greatest Innovators of all time: process that occurs when the organization is
formed Also known as the entrepreneurial event.
Thomas Edison, Steve Jobs, Marie Curie,
Nikola Tesla, Bill Gates, Leonardo Da Vinci
Implementation involves one of the ffg: Economic Development Impact Growth: In this
1. Introducing new products stage, the small business generates significant
revenue, increases hiring, likely makes capital
2. Introducing new methods of production
investments in land and buildings, and pays
3. Opening new markets higher taxes that support and enhance local
4. Opening new supply sources economies.
5. Industrial reorganization
LESSON 5
STAGES OF SMALL BUSINESS MANAGEMENT STRATEGY - refers to the overarching approach or
Growth. Achievement of a critical mass in the direction chosen by an organization to achieve its
business, a point at which an adequate living is long-term goals and objectives.
provided for the owner and family, with enough STRATEGY - about setting the broad course of
development remaining to keep the business action to move the organization forward and
going. adapt to changes in the external environment.
Maturity. The stage of the organization when the PLANNING - is the process of determining
business is considered well-established. specific courses of action to achieve short-term
Harvest. The owner removes him-or herself from or medium-term goals within the framework of
the business. the organization's strategy.
PLANNING - is about translating the broader
Creativity and Innovation in Small Business strategic direction into actionable steps and
ensuring that resources are effectively utilized to
Discovery/Identified Market Need: A small
achieve desired outcomes.
business owner generates an idea for an
innovation based upon research, building on
previous development, opportunity recognition BUSINESS PLAN - a written document that
of a market need, or customer feedback. describes the current state and the presupposed
future of an organization.
Technology Demonstration: The small business
owner shows diligence in analyzing the idea to
make sure it is viable. 4 KEY ELEMENTS OF BUSINESS PLAN
Product Development: The small business 1. Opportunity
owner extends the testing from the previous 2. Environmental context
stage in refining product design, pilot testing, and 3. Risk reward
identifying production options and possible 4. Team
distribution channels.
Commercialization/Market Entry: Once the 3 COMMON TYPES OF A BUSINESS PLAN
small business owner has a viable product, it is 1. An application for finance
time to begin the generation of revenue with 2. A supply chain driven plan
heavy emphasis on marketing and selling. 3. A plan for internal use
Early Stage Growth: Successful product launch
leads to small business growth and investment in
materials, human resources , and infrastructure
BUSINESS MODEL - a framework for creating, CUSTOMER RELATIONSHIPS
delivering, and capturing value within an Personal Assistance – a representative is
organization. It outlines how a company plans to accessible to the customer in person or thru
generate revenue, sustain itself, and achieve social media.
profitability.
Dedicated personal assistance – the
customer has a dedicated assistance which is
BUSINESS MODEL CANVAS – a tool for visualizing the typical situation of some wealth
the design of business models. It helps to detect management services which provide a key
outmoded elements in business models and to account manager for the customer.
transform old models to new ones. Self-service – there is no direct relationship
between the company and its customer, so
9 BUILDING BLOCKS OF A BUSINESS MODEL customers help themselves in the purchase.
1. CUSTOMER RELATIONSHIPS - what Automated services – this mode of service
relationships are you establishing with combines self-service with customization
each segment? personal? automated? based on automatic profiling of the
acquisitive? retentive? customer, who will receive personalized
2. REVENUE STREAMS - what are information.
customers really willing to pay for? how? Communities – communities of customers
are you generating transactional or can serve the purpose of exchanging
recurring revenues? knowledge among other clients or potential
3. KEY RESOURCES - which resources customer, answer questions and solve
underpin your business model? which problems.
assets are essential? Co-creation – customers participate in the
4. KEY ACTIVITIES - which activities do you design, development, and or production of a
need to perform well in your business product or service.
model? what is crucial?
5. KEY PARTNERS - which partners and
INFRASTRACTURE
suppliers leverage your model? who do
you need to rely on? Resources and capabilities - The resources
6. COST STRUCTURE - what is the resulting are assets an organisation can use in its
cost structure? which key elements drive activities. These may include buildings,
your costs? financial, human resources, customer bases,
OFFER (VALUE PROPOSITION) AREA and partner networks. A capability is an
organisation’s ability to use resources
Products and Services – these are what the
Core activities – are key activities performed
organization offers. They help customers in
completing their customer jobs, satisfying their by the organisation to make the business
model
needs and creating value for customers.
Gain Creators - these describe how the products Key partners - fundamental for every
and services provided can create benefits for the business model. Which
customers activities are delivered by partners?
Pain relievers - these describe how products and
services reduce customers pains, or problems.
LESSON 6 attitude toward the innovation, but “the
DIFFUSION OF INNOVATION THEORY - formation of a favorable or unfavorable
Developed by E.M. Rogers in 1962, is one of attitude toward an innovation does not
the oldest social science theory. It is always lead directly or indirectly to an
originated in communication to explain how, adoption or rejection”
over time, and idea or product gains 3. DECISION STAGE - the individual chooses
momentum and diffues (or spreads) through to adopt or reject the innovation. While
a specific population or social system. The adoption refers to “full use of an
end result of this diffusion is that people, as innovation as the best course of action
part of social system, adopt a new idea, available,” rejection means “not to
behavior , or product. adopt an innovation”
4. IMPLEMENTATION STAGE - an
innovation is put into practice. However,
4 MAIN ELEMENTS OF DIFFUSION OF an innovation brings the newness in
INNOVATIONS
which “some degree of uncertainty is
1. INNOVATION - “An innovation is an idea, involved in diffusion” (p. 6). Uncertainty
practice, or project that is perceived as about the outcomes of the innovation
new by an individual or other unit of still can be a problem at this stage.
adoption” 5. CONFIRMATION STAGE - the individual
2. COMMUNICATION CHANNELS - “a looks for support for his or her decision.
process in which participants create and According to Rogers (2003), this decision
share information with one another in can be reversed if the individual is
order to reach a mutual understanding” “exposed to conflicting messages about
3. TIME - the time aspect is ignored in most the innovation” (p. 189). However, the
behavioral research. He argues that individual tends to stay away from these
including the time dimension in diffusion messages and seeks supportive
research illustrates one of its strengths. messages that confirm his or her
4. SOCIAL SYSTEM - “a set of interrelated decision.
units engaged in joint problem solving to
accomplish a common goal”
5 MAIN FACTORS THAT INFLUENCE
5 STEPS OF INNOVATION DECISION ADOPTATION OF AN INNOVATION
PROCESS 1. Relative Advantage - The degree to
1. KNOWLEDGE STAGE - In this step, an which an innovation is seen as better
individual learns about the existence of than the idea, program, or product it
innovation and seeks information about replaces.
the innovation. “What?,” “how?,” and 2. Compatibility - How consistent the
“why?” are the critical questions in the innovation is with the values,
knowledge phase. During this phase, the experiences, and needs of the
individual attempts to determine “what potential adopters.
the innovation is and how and why it 3. Complexity - How difficult the
works” innovation is to understand and/or
2. PERSUASIVE STAGE - occurs when the use.
individual has a negative or positive
4. Triability - The extent to which the
innovation can be tested or
experimented with before a
commitment to adopt is made.
5. Observability - The extent to which
the innovation provides tangible
results.

ADOPTATION - It means that a person

does something differently than what
they previously. The key to adoption is
that the person must perceive the idea,
behavior or product as new or
innovative.

5 ESTABLISHED CATEGORIES
Innovators - Characterized by those who
want to be the first to try the innovation.
Early Adopters - Characterized by those
who are comfortable with change and
adopting new ideas.
Early Majority - Characterized by those
who adopt new innovations before the
average person. However, evidence is
needed that the innovation works before
this category will adopt the innovation.
Late Majority - Characterized by those
who are skeptical of change and will only
adopt an innovation after it’s been
generally accepted and adopted by the
majority of the population.
Laggards - Characterized by those who
are very traditional and conservative –
they are the last to make the changeover
to new technologies. This category is the
hardest to appeal to.