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Business Fundamentals | Functions of a Business | Entrepreneurship | Finance | Summative Project


Characteristics of Entrepreneurs | Invention and Innovation



Invention and Innovation


Invention and Innovation slideshow

Entrepreneurial Opportunities


Choosing a Venture


Idea-driven Enterprises

  • Someone is inspired to provide a new service or create a new product and then brings it to market.
  • Since no need was expressed by the marketplace for the product there is risk involved with idea-driven enterprises.

Market-driven Enterprises

  • Market-driven means the venture is the result of a market demand or need rather than someone coming up with a product idea.
  • The need or want within the market may not match the entrepreneurial skills and characteristics that an individual has.


Bringing Ideas and Marketing together


  • Marketing skills can be acquired by taking courses, reading texts, accessing websites, and magazines.
  • Skilled individuals can be hired from ad firms, research companies, and consultant firms.
  • High schools and community colleges provide technical skills training.
  • How-to-books, the Internet, and magazines also are a wealth of information.
  • Technically skilled people can be hired from drafting firms, industrial design companies, and technical consulting firms.
  • Taking on a partner can increase venture capital and diversify the risk.
  • Prospective partners can be accessed at capital trade fairs, by placing advertisements, or by using the Internet.

Finding Entrepreneurial Opportunities


  • You need to find out what is and what is not already available in the market.
  • New venture categories include:
    • manufacturing
    • retail sales
    • importing or wholesaling
    • service
  • You can innovate of improve on an existing product or service.
  • You can provide a product of service that does not exist.
  • A feasible venture is a venture that has the potential to succeed.
  • A market segment is any part of an overall market that has common characteristics.

Segmenting

Before a new venture is launched, entrepreneurs must analyze the segment of the market by looking for the common characteristics in which the business fits.

Product or Service Mapping

Product mapping allows an entrepreneur to visualize all the products or services that are available in a segment and to group them by specific features.

Setting Your Venture Apart

The goal of a new venture is to ensure that it is different than those already operating. Manufacturers, importers, or wholesalers need to offer different products than those that already exist. Retailers and service providers also must think of ways to set themselves apart from others.

What Is an Invention?

An invention is a product or process that does something that has never been done before. When the invented product or service fills a need, it can potentially be sold to consumers.

The Next Step

Entrepreneurship starts when a new invention or innovation becomes the inspiration for a venture.

Patents and Copyrights

Entrepreneurs need to patent or copyright their inventions.A patent is the registration of an inventors legal right of ownership for their invention. It prevents others from using the invention without permission.A copyright is the exclusive right to publish, produce, sell, or distribute an original work of literature, art, music, software, design, and so on.

Licensing Agreements

Licensing an invention or innovation allows another business to use it for a fee or a royalty.

Franchising Agreements

Similar to a licensing agreement, a franchise agreement is an arrangement for one business to license the rights to its name and procedures to another business or person.

Producing the Invention

The manufacturing of a new invention often requires a large amount of capital and expertise. This process can be very risky.

Selling the Rights

Entrepreneurs can sell outright their patents or copyrights.

Impacts of an Innovation

An innovation requires using new technology, materials, or processes to improve existing products or to create new production and distribution processes.

Innovators as Entrepreneurs

Innovators build on what other businesses, such as manufacturers, distributors, and marketers, have already developed. They look to the competition for ways to gain an advantage for their new products or services. Entrepreneurs use innovation to change how a product is used, packaged, marketed, distributed, designed, or manufactured.

Changing How a Product Is Used

When entrepreneurs discover innovative ways to use a familiar product, they can develop a whole new market for that product.

Changing the Package

Changing the way a product is packaged can create a whole new industry.

Changing the Marketing Strategy

Changing the way a product or service is promoted or advertised can target a new market and, potentially, improve sales.

Changing the Distribution Process

Changing or improving the way a product is distributed can potentially result in more and new customers. (e.g. kiwi fruit in canada)

Changing the Design

A design change to a product can improve how it functions or who it appeals to in a new market segment.

Changing the Manufacturing Process

As new technologies and materials are developed, manufacturers must review their production processes to create better and less expensive products.



Assignment #14 - Canadian Invention and Innovation presentation


Canadian Invention & Innovation Assignment

In groups of one or two you are to research, then present on an Canadian inventor and/or Innovation.