Creativity Is Essential for Development

Topics: Entrepreneurship, Entrepreneur, Joseph Schumpeter Pages: 11 (3348 words) Published: April 15, 2013
Nottingham University Business School

MSc Computer Science and Entrepreneurship

Creative Problem Solving (N14G01 UK) (AUT 12-13)

Critically discuss the relationship between entrepreneurship and creativity

Vidit Kishore
Student ID: 4188915


Entrepreneurs have several tasks to be carried out and challenges to face, and one of the most preliminary and arguably one of the most important is to recognize or to identify the ideas which have the potential to be transformed into a successful venture or goods. These ideas are opportunities. A successful idea or a feasible opportunity is the one which offer something new to the consumer to catch the attention but also is not too far from reality that it cannot be implemented and may get rejected as claiming it to be very radical.

“Every problem is a brilliantly disguised opportunity” –(John Gardner). Although ideas are opportunity as stated above but like there is a notion in chemistry that all ores are minerals but all minerals are not ores. If we see this in the entrepreneurship context all opportunities have ideas behind them but all ideas cannot be opportunities. An idea, alone which doesn’t have anything new to offer to the consumer and doesn’t have enough potential to catch consumer attention is likely to fail.

Discovery theory assumes that the opportunity to develop new products/services come from the existing structure of an industry. Also it assumes that in the process of creating an opportunity entrepreneurs take the backseat of the car and it’s the exogenous events, which are at the driving seat of the car. In other words entrepreneurs do not come into the main frame until they start exploiting the opportunities, which are created as a result of exogenous events, which affect the present market/industry structure and open the way for new products and services to be introduced by alert entrepreneurs which constantly monitor the happenings of the industry.

Also it requires search and a planned way to scan the opportunities created due to the exogenous shock to the industry. As in if one is aware of the exogenous shock to the industry he should also be aware of the amount of new opportunities it has created and find a systematic way to implement them and turn it into a successful venture.

In the book A “General Theory of Entrepreneurship” Shane (2003) outlines this theory and labels it the “individual-opportunity nexus” approach. Which was later labeled as the “Discovery Theory of Entrepreneurship” (Venkataraman, 2003).

Discovery theory is not the only theory available to scholars studying entrepreneurial action. Indeed there is an another general theory of entrepreneurship not addressed by Shane (2003)—labeled the “Creation Theory of Entrepreneurship” (Venkatraman, 2003: xi)—can also be taken into consideration. (Baker & Nelson, 2005; Gartner, 1985). According to creation theory Ideas do not pre-exist and are not a result of exogenous shock to an industry/market. It assumes that there is no such thing as opportunities. Entrepreneurs create them as a part of a process that involves negotiation creativity and sense making.

The basic difference between the two alternate theories of entrepreneurial action is that according to the discovery theory prospective the mountain is there already we just need to find the ways to climb the mountain So the discovery prospective involves the risk factor rather than uncertainty but the creation theory prospective is just completely opposite and counter to the discovery prospective. According to creation theory prospective we need to build the mountain ourselves and there are no mountains as in opportunities already available to you. So the creation prospective involves more uncertainty, as there are no pre existing paths available to follow. The aim of this essay is to critically examine and analyze the relationship between entrepreneurship and...

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