Week 4-Katz ESB 6e Chap004 PPT UpdatedMS
Week 4-Katz ESB 6e Chap004 PPT UpdatedMS
Week 4-Katz ESB 6e Chap004 PPT UpdatedMS
Chapter Four
Entrepreneurs and Ideas:
The Basis of Small Business
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Learning Objectives:
LO 4-1 Identify strategies for innovation in your business.
LO 4-2 Recognize the sources of opportunity entrepreneurs draw on to get
business ideas.
LO 4-3 Understand how creativity methods can help business owners
recognize new opportunities.
LO 4-4 Understand the five pitfalls that hinder innovation.
LO 4-5 Identify how to screen ideas for business potential.
LO 4-6 Describe how to construct a business model canvas to assess the
feasibility of your business idea.
4-2
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Education
Ideas, Opportunities, and Business
Source: Adapted from C. M. Gaglio and J. A. Katz, “The Psychological Basis of Opportunity Identification: Entrepreneurial Alertness,” Small Business Economics 16, no. 2,
© McGraw-Hill Education (March 2001), p. 99. 3
Ideas, Opportunities, and Business - Strategies
A radical innovation
strategy presents a
different way to do things.
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Ten Sources of Business Ideas
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From Ideas to Opportunities through Creativity - SCAMPER
© McGraw-Hill Education Source: Michael Michalko, Thinkertoys: A Handbook of Business Creativity (Berkeley, CA: Ten Speed Press, 1991). 6
From Ideas to Opportunities through Creativity
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Avoid Pitfalls
Failing to act.
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Make Sure an Idea is Feasible
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The Business Model Canvas Approach
1. Customer
segment.
2. Problem – pain
and gain.
3. Solution.
4. Value
proposition.
5. Channels.
6. Customer
relationships.
7. Revenues –
freemium.
8. Key resources.
9. Key activities.
10. Key partners.
Access text alternative for this image. 11. Costs.
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Figure 4.7: Pet Élan’s Business Model Canvas
To analyze, we
compare the fit by
customer segment to
the value proposition,
problem, and
solution.
The four should
strongly reflect one
another and reflect
something the
customer will buy.
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Ways to Keep On Being Creative
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