Creativity and Entrepreneurship

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Relationship between Creativity & Entrepreneurship
Creative Problem Solving Course work
MODULE NAME : Creative Problem Solving COURSE TITLE : MSc International Business

Total word count (excluding references and appendices) : 3475

Creativity and Entrepreneurship
What is creativity and what is Entrepreneurship? Is there any relation between creativity and Entrepreneurship? If so, what is the relation and what role does creativity play in entrepreneurship? The purpose of this essay is to articulate the relationship between Creativity and Entrepreneurship, to discuss the implications of creativity on the following entrepreneurial activities – decision making, business planning and opportunity development. Creativity can be defined as the production of novel and useful ideas in any domain (Stein, 1974; Woodman, Sawyer & Griffin, 1993). Creativity and innovation cannot be separated from entrepreneurship which in turn is the process of creating, exploiting and developing an opportunity. Millard, Pretorius and Kruger (2005) mention that “creativity is clearly part and parcel of the entrepreneurial skills and is required to successfully start a venture” (p. 56). Entrepreneurs and their ventures are considered to be “important agents of innovation” (Bosma & Harding, 2007, p. 16), not simply in terms of the products and services they provide, but also in terms of the technologies and processes that they utilise (Bosma & Harding; Watson et al., 1998). Entrepreneurs can be called as essence of creativity and innovation because of their nature. They nurture creativity and innovation. It can be argued that creativity is an important ingredient in the recipe for the new product or service any entrepreneur would provide and it is not only essential creating or developing the new product but also in every level of every type of the organization. Creativity is seen as going beyond new products, new services and new and improved processes (Cook, 1998; Heye, 2006). Creativity can also be described as a combination of 6 elements. Sternberg’s ‘investment theory of creativity’ briefs the nature of creativity as a confluence of 6 distinct but interconnected resources - knowledge, personality, intellectual abilities, style of thinking, environment and motivation. According to Sternberg (1995) the intellectual skills required for creativity constitute 3 skills in particular: a synthetic skill to see problems in a new way and to escape the bounds of conventional thinking; an analytical skill to recognize which of one’s ideas is worth pursuing; and practical-contextual skill of how to persuade others of the value of one’s ideas. (Matthews, Judith H. 2007) Innovation is conventionally defined as the successful implementation of creative ideas (Stein, 1974; Woodman, Sawyer, & Griffin, 1993). Creativity is the point of origination for innovation; it is a necessary, but not sufficient, condition for innovation to occur (Amabile. Conti. Coon, Lazenby, & Herron. 1996). Innovation may be conceptualized as either a process or an outcome. As a process, innovation often is depicted as continuous and cyclical, involving the stages of awareness, appraisal, adoption, diffusion, and implementation (Damanpour, 1991; Poole & Van de Ven, 1989). Innovation demands change, but not all the changes are innovative. According to Woodman, Sawyer, and Griffin (1993) creativity is a subset of innovation (when it is undertaken in complex social settings) and innovation is a subset of change. Entrepreneurial event is built with creativity and innovation as the base.

Entrepreneurship is the willingness and capacity to develop, organize, nurture and manage a new business venture along with any of its risks and uncertainties in order to make profit. People who indulge in the actions that form the basis of entrepreneurship are called Entrepreneurs. These entrepreneurial actions involve finding an opportunity, exploiting it and creating a new product as a result....
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