Textbook - Entrepreneurship as Innovation and Problem Solving, Entrepreneurship, Class 11 | Entrepreneurship Class 11 - Commerce PDF Download

 Page 1


 
70 
UNIT 4 
Entrepreneurship as Innovation  
and Problem Solving 
Learning Objectives: 
After reading the chapter the student would be able to: 
 Understand the role of entrepreneurs as problem solvers in  society 
 Appreciate the role of innovations in entrepreneurial ventures 
 Explain the concept and importance of social entrepreneurship 
 State the meaning of entrepreneurial risk and risk management 
 Differentiate between internal and external risk 
 Describe the role played by technology in creation of new forms of business 
 Explain the different  barriers of entrepreneurship 
 Identify the various support structure available for promoting entrepreneurship 
 Understand the term Business Incubator 
Case Study 
Read the story and write  a few lines what you have understood from it: 
The Japanese have always loved fresh fish. But the waters close to Japan have not held many fish for 
decades. 
So to feed the Japanese population, fishing boats got bigger and went farther than ever. The farther the 
fishermen went, the longer it took to bring in the fish. If the return trip took more than a few days, the 
fish were not fresh. The Japanese did not like the taste. 
To solve this problem, fishing companies installed freezers on their boats. They would catch the fish and 
freeze them at sea. Freezers allowed the boats to go farther and stay longer. However, the Japanese could 
taste the difference between fresh and frozen and they did not like frozen fish. The frozen fish brought a 
lower price. 
So, fishing companies installed fish tanks. They would catch the fish and store them in the tanks. After a 
little thrashing around, the fish stopped moving. They were tired and dull, but alive. Unfortunately, the 
Japanese could still taste the difference. Because the fish did not move for days, they lost their fresh-fish 
taste. 
The Japanese preferred the lively taste of fresh fish, not sluggish fish. So how 
did Japanese fishing companies solve this problem? How do they get fresh-
tasting fish to Japan? How do the Japanese manage to keep the fish fresh? 
 
Page 2


 
70 
UNIT 4 
Entrepreneurship as Innovation  
and Problem Solving 
Learning Objectives: 
After reading the chapter the student would be able to: 
 Understand the role of entrepreneurs as problem solvers in  society 
 Appreciate the role of innovations in entrepreneurial ventures 
 Explain the concept and importance of social entrepreneurship 
 State the meaning of entrepreneurial risk and risk management 
 Differentiate between internal and external risk 
 Describe the role played by technology in creation of new forms of business 
 Explain the different  barriers of entrepreneurship 
 Identify the various support structure available for promoting entrepreneurship 
 Understand the term Business Incubator 
Case Study 
Read the story and write  a few lines what you have understood from it: 
The Japanese have always loved fresh fish. But the waters close to Japan have not held many fish for 
decades. 
So to feed the Japanese population, fishing boats got bigger and went farther than ever. The farther the 
fishermen went, the longer it took to bring in the fish. If the return trip took more than a few days, the 
fish were not fresh. The Japanese did not like the taste. 
To solve this problem, fishing companies installed freezers on their boats. They would catch the fish and 
freeze them at sea. Freezers allowed the boats to go farther and stay longer. However, the Japanese could 
taste the difference between fresh and frozen and they did not like frozen fish. The frozen fish brought a 
lower price. 
So, fishing companies installed fish tanks. They would catch the fish and store them in the tanks. After a 
little thrashing around, the fish stopped moving. They were tired and dull, but alive. Unfortunately, the 
Japanese could still taste the difference. Because the fish did not move for days, they lost their fresh-fish 
taste. 
The Japanese preferred the lively taste of fresh fish, not sluggish fish. So how 
did Japanese fishing companies solve this problem? How do they get fresh-
tasting fish to Japan? How do the Japanese manage to keep the fish fresh? 
 
 
71 
To keep the fish tasting fresh, the Japanese fishing companies still put the fish in the tanks. But now they 
add a small shark to each tank. The shark eats a few fish, but most of the fish arrive in a very lively state. 
The fish are challenged. 
Have you realized that some of us are also living in a pond, but most of the time feel tired and dull, so 
we need a „Shark? in our life to keep us awake and moving? Basically in our lives, Sharks are new 
challenges to keep us active. 
For an entrepreneur, the main motivating factor which urges them to continue in their entrepreneurial 
pursuit is challenge. The more intelligent, persistent and competent they are, the more they enjoy a 
challenge. 
 From this story, it is clear that, to be a successful entrepreneur, one has to be a problem solver. 
 Identify the various problems involved in the story, and the various solutions available to solve it. 
 
Who is an entrepreneur?  
 He/she is the one who undertakes risks.  
Why are they called problem solvers? 
 Entrepreneurial actions are efforts to solve problems for others. Therefore, entrepreneurs 
are Problem Solvers. When one solves a problem a new value is created. In the business 
world, problem solvers take risks, but often create value by solving a customer or 
market problem, which is the key to creating a profitable enterprise. The more or larger 
problems an entrepreneurial organization solves, the more profit it can generate. 
Case Study 
Humble beginning of KFC 
In 1930, the then 40 year old Sanders was operating a service station in Corby, Kentucky, USA and he 
encountered a lot of hungry travellers who stopped for gas. He saw that the travellers wanted to eat 
something as there was nothing available in that area. He saw and understood the problem. As a child, 
he used to cook for his siblings and so he knew how to cook, which instigated him to cook for the 
travellers. He did not even have a restaurant to serve food but his secret blend of 11 herbs and spices 
made his chicken recipe such a super hit among travellers that he started getting regular customers for 
his food, which prompted him to start a restaurant. This is the humble beginning of the world famous 
fast food chain “KFC- Kentucky Fried Chicken”. 
 
Problem     Solution 
1. Love for fish    Led to using of Bigger boats 
2. Need for fresh fish    Installation of freezers 
3. Taste of fresh fish    Installation of fish tanks 
4. To improve taste of the fresh fish  Added shark 
 
Page 3


 
70 
UNIT 4 
Entrepreneurship as Innovation  
and Problem Solving 
Learning Objectives: 
After reading the chapter the student would be able to: 
 Understand the role of entrepreneurs as problem solvers in  society 
 Appreciate the role of innovations in entrepreneurial ventures 
 Explain the concept and importance of social entrepreneurship 
 State the meaning of entrepreneurial risk and risk management 
 Differentiate between internal and external risk 
 Describe the role played by technology in creation of new forms of business 
 Explain the different  barriers of entrepreneurship 
 Identify the various support structure available for promoting entrepreneurship 
 Understand the term Business Incubator 
Case Study 
Read the story and write  a few lines what you have understood from it: 
The Japanese have always loved fresh fish. But the waters close to Japan have not held many fish for 
decades. 
So to feed the Japanese population, fishing boats got bigger and went farther than ever. The farther the 
fishermen went, the longer it took to bring in the fish. If the return trip took more than a few days, the 
fish were not fresh. The Japanese did not like the taste. 
To solve this problem, fishing companies installed freezers on their boats. They would catch the fish and 
freeze them at sea. Freezers allowed the boats to go farther and stay longer. However, the Japanese could 
taste the difference between fresh and frozen and they did not like frozen fish. The frozen fish brought a 
lower price. 
So, fishing companies installed fish tanks. They would catch the fish and store them in the tanks. After a 
little thrashing around, the fish stopped moving. They were tired and dull, but alive. Unfortunately, the 
Japanese could still taste the difference. Because the fish did not move for days, they lost their fresh-fish 
taste. 
The Japanese preferred the lively taste of fresh fish, not sluggish fish. So how 
did Japanese fishing companies solve this problem? How do they get fresh-
tasting fish to Japan? How do the Japanese manage to keep the fish fresh? 
 
 
71 
To keep the fish tasting fresh, the Japanese fishing companies still put the fish in the tanks. But now they 
add a small shark to each tank. The shark eats a few fish, but most of the fish arrive in a very lively state. 
The fish are challenged. 
Have you realized that some of us are also living in a pond, but most of the time feel tired and dull, so 
we need a „Shark? in our life to keep us awake and moving? Basically in our lives, Sharks are new 
challenges to keep us active. 
For an entrepreneur, the main motivating factor which urges them to continue in their entrepreneurial 
pursuit is challenge. The more intelligent, persistent and competent they are, the more they enjoy a 
challenge. 
 From this story, it is clear that, to be a successful entrepreneur, one has to be a problem solver. 
 Identify the various problems involved in the story, and the various solutions available to solve it. 
 
Who is an entrepreneur?  
 He/she is the one who undertakes risks.  
Why are they called problem solvers? 
 Entrepreneurial actions are efforts to solve problems for others. Therefore, entrepreneurs 
are Problem Solvers. When one solves a problem a new value is created. In the business 
world, problem solvers take risks, but often create value by solving a customer or 
market problem, which is the key to creating a profitable enterprise. The more or larger 
problems an entrepreneurial organization solves, the more profit it can generate. 
Case Study 
Humble beginning of KFC 
In 1930, the then 40 year old Sanders was operating a service station in Corby, Kentucky, USA and he 
encountered a lot of hungry travellers who stopped for gas. He saw that the travellers wanted to eat 
something as there was nothing available in that area. He saw and understood the problem. As a child, 
he used to cook for his siblings and so he knew how to cook, which instigated him to cook for the 
travellers. He did not even have a restaurant to serve food but his secret blend of 11 herbs and spices 
made his chicken recipe such a super hit among travellers that he started getting regular customers for 
his food, which prompted him to start a restaurant. This is the humble beginning of the world famous 
fast food chain “KFC- Kentucky Fried Chicken”. 
 
Problem     Solution 
1. Love for fish    Led to using of Bigger boats 
2. Need for fresh fish    Installation of freezers 
3. Taste of fresh fish    Installation of fish tanks 
4. To improve taste of the fresh fish  Added shark 
 
 
72 
Solving Problems to Meet the Needs and Wants of People: 
Most entrepreneurial ventures have survived when they solve problems of people, 
understanding their needs and accordingly changing the product to their needs. Study the 
following examples: 
The Story of Kellogg: In 1894, Dr. John Harvey Kellogg was superintendent of a famous 
hospital and health spa in Battle Creek, Michigan. His younger brother, Will Keith Kellogg, was 
the business manager. The hospital stressed healthful living and kept its patients on a diet that 
eliminated caffeine, meat, alcohol and tobacco. 
The brothers invented many foods that were made from grains, including a coffee substitute 
and a type of granola, which they forced through rollers and rolled into long sheets of dough. 
One day, after cooking some wheat, the men were called away. When they finally returned, the 
whet had become stale. They decided to force the tempered grain through the rollers anyway. 
Surprisingly, the grain did not come out in long sheets of dough. Instead, each wheat berry was 
flattened and came out as a thin flake. The brothers baked the flakes and were delighted with 
their new invention. They realized that they have discovered a new and delicious cereal, but 
they had no way of knowing that they had accidentally invented a whole new industry. Will 
Keith Kellogg eventually opened his own cereal business and its most famous product is still 
sold today. It wasn‘t until 1906 that Kellogg?s Corn Flakes were made available to the general 
public.   
Innovations Leading to Entrepreneurial Ventures 
An entrepreneur is also known to be a person who habitually creates and innovates to build 
something of recognised value around perceived opportunities. 
Creativity and innovation are the distinguishing marks of the entrepreneur. That is why they 
disturb markets and can challenge large established businesses. Creativity is a continuous 
activity for the entrepreneur, always seeing new ways of doing things with little concern for 
how difficult they might be or whether the resources are available. But creativity in the 
entrepreneur is combined with the ability to innovate, to take the idea and make it work in 
practice. Once the project is accomplished, the entrepreneur seeks another =mountain to climb‘ 
because for him or her creativity and innovation are habitual, something that he or she has to 
keep on doing. 
Let us look into some innovations that led to successful ventures: 
Penicillin  
Inventor: Sir Alexander Fleming, a scientist  
What he was trying to make: Ironically, Fleming was 
searching for a "wonder drug" that could cure diseases. 
However, it wasn't until Fleming threw away his experiments 
that he found what he was looking for. 
Page 4


 
70 
UNIT 4 
Entrepreneurship as Innovation  
and Problem Solving 
Learning Objectives: 
After reading the chapter the student would be able to: 
 Understand the role of entrepreneurs as problem solvers in  society 
 Appreciate the role of innovations in entrepreneurial ventures 
 Explain the concept and importance of social entrepreneurship 
 State the meaning of entrepreneurial risk and risk management 
 Differentiate between internal and external risk 
 Describe the role played by technology in creation of new forms of business 
 Explain the different  barriers of entrepreneurship 
 Identify the various support structure available for promoting entrepreneurship 
 Understand the term Business Incubator 
Case Study 
Read the story and write  a few lines what you have understood from it: 
The Japanese have always loved fresh fish. But the waters close to Japan have not held many fish for 
decades. 
So to feed the Japanese population, fishing boats got bigger and went farther than ever. The farther the 
fishermen went, the longer it took to bring in the fish. If the return trip took more than a few days, the 
fish were not fresh. The Japanese did not like the taste. 
To solve this problem, fishing companies installed freezers on their boats. They would catch the fish and 
freeze them at sea. Freezers allowed the boats to go farther and stay longer. However, the Japanese could 
taste the difference between fresh and frozen and they did not like frozen fish. The frozen fish brought a 
lower price. 
So, fishing companies installed fish tanks. They would catch the fish and store them in the tanks. After a 
little thrashing around, the fish stopped moving. They were tired and dull, but alive. Unfortunately, the 
Japanese could still taste the difference. Because the fish did not move for days, they lost their fresh-fish 
taste. 
The Japanese preferred the lively taste of fresh fish, not sluggish fish. So how 
did Japanese fishing companies solve this problem? How do they get fresh-
tasting fish to Japan? How do the Japanese manage to keep the fish fresh? 
 
 
71 
To keep the fish tasting fresh, the Japanese fishing companies still put the fish in the tanks. But now they 
add a small shark to each tank. The shark eats a few fish, but most of the fish arrive in a very lively state. 
The fish are challenged. 
Have you realized that some of us are also living in a pond, but most of the time feel tired and dull, so 
we need a „Shark? in our life to keep us awake and moving? Basically in our lives, Sharks are new 
challenges to keep us active. 
For an entrepreneur, the main motivating factor which urges them to continue in their entrepreneurial 
pursuit is challenge. The more intelligent, persistent and competent they are, the more they enjoy a 
challenge. 
 From this story, it is clear that, to be a successful entrepreneur, one has to be a problem solver. 
 Identify the various problems involved in the story, and the various solutions available to solve it. 
 
Who is an entrepreneur?  
 He/she is the one who undertakes risks.  
Why are they called problem solvers? 
 Entrepreneurial actions are efforts to solve problems for others. Therefore, entrepreneurs 
are Problem Solvers. When one solves a problem a new value is created. In the business 
world, problem solvers take risks, but often create value by solving a customer or 
market problem, which is the key to creating a profitable enterprise. The more or larger 
problems an entrepreneurial organization solves, the more profit it can generate. 
Case Study 
Humble beginning of KFC 
In 1930, the then 40 year old Sanders was operating a service station in Corby, Kentucky, USA and he 
encountered a lot of hungry travellers who stopped for gas. He saw that the travellers wanted to eat 
something as there was nothing available in that area. He saw and understood the problem. As a child, 
he used to cook for his siblings and so he knew how to cook, which instigated him to cook for the 
travellers. He did not even have a restaurant to serve food but his secret blend of 11 herbs and spices 
made his chicken recipe such a super hit among travellers that he started getting regular customers for 
his food, which prompted him to start a restaurant. This is the humble beginning of the world famous 
fast food chain “KFC- Kentucky Fried Chicken”. 
 
Problem     Solution 
1. Love for fish    Led to using of Bigger boats 
2. Need for fresh fish    Installation of freezers 
3. Taste of fresh fish    Installation of fish tanks 
4. To improve taste of the fresh fish  Added shark 
 
 
72 
Solving Problems to Meet the Needs and Wants of People: 
Most entrepreneurial ventures have survived when they solve problems of people, 
understanding their needs and accordingly changing the product to their needs. Study the 
following examples: 
The Story of Kellogg: In 1894, Dr. John Harvey Kellogg was superintendent of a famous 
hospital and health spa in Battle Creek, Michigan. His younger brother, Will Keith Kellogg, was 
the business manager. The hospital stressed healthful living and kept its patients on a diet that 
eliminated caffeine, meat, alcohol and tobacco. 
The brothers invented many foods that were made from grains, including a coffee substitute 
and a type of granola, which they forced through rollers and rolled into long sheets of dough. 
One day, after cooking some wheat, the men were called away. When they finally returned, the 
whet had become stale. They decided to force the tempered grain through the rollers anyway. 
Surprisingly, the grain did not come out in long sheets of dough. Instead, each wheat berry was 
flattened and came out as a thin flake. The brothers baked the flakes and were delighted with 
their new invention. They realized that they have discovered a new and delicious cereal, but 
they had no way of knowing that they had accidentally invented a whole new industry. Will 
Keith Kellogg eventually opened his own cereal business and its most famous product is still 
sold today. It wasn‘t until 1906 that Kellogg?s Corn Flakes were made available to the general 
public.   
Innovations Leading to Entrepreneurial Ventures 
An entrepreneur is also known to be a person who habitually creates and innovates to build 
something of recognised value around perceived opportunities. 
Creativity and innovation are the distinguishing marks of the entrepreneur. That is why they 
disturb markets and can challenge large established businesses. Creativity is a continuous 
activity for the entrepreneur, always seeing new ways of doing things with little concern for 
how difficult they might be or whether the resources are available. But creativity in the 
entrepreneur is combined with the ability to innovate, to take the idea and make it work in 
practice. Once the project is accomplished, the entrepreneur seeks another =mountain to climb‘ 
because for him or her creativity and innovation are habitual, something that he or she has to 
keep on doing. 
Let us look into some innovations that led to successful ventures: 
Penicillin  
Inventor: Sir Alexander Fleming, a scientist  
What he was trying to make: Ironically, Fleming was 
searching for a "wonder drug" that could cure diseases. 
However, it wasn't until Fleming threw away his experiments 
that he found what he was looking for. 
 
73 
 
How it was created: Fleming noticed that a contaminated Petri dish, he had discarded, contained 
a mold that was dissolving all the bacteria around it. When he grew the mold by itself, he 
learned that it contained a powerful antibiotic, penicillin. 
Potato Chips 
Inventor: George Crum, a chef at the Carey Moon Lake House in Saratoga Springs 
What they were trying to make: A plate of fried potato. 
How it was created: One day, a customer sent back his plate of potatoes 
many times and kept asking for them to be more fried and thinner. 
Crum lost his temper, sliced the potatoes insanely thin and fried them 
until they were hard as a rock. To the chef's surprise, the customer 
loved them and wanted more! And this is how potato chips came into existence.  
The Pacemaker 
Inventor: John Hopps, an electrical engineer  
What he was trying to make: Hopps was conducting research on hypothermia 
and was trying to use radio frequency heating to restore body temperature.  
How it was created: During his experiment, he realized that if a heart 
stopped beating due to cooling, it could be started again by artificial 
stimulation. This realization led to the pacemaker.  
Microwave Ovens 
Inventor: Percy Spencer, an engineer (with the Raytheon Corporation) 
What he was trying to make: The engineer was conducting a radar-related 
research project with a new vacuum tube. 
How it was created: Spencer realized that the candy bar in his pocket began to melt during his 
experiments. He then put popcorn into the machine, and when it started to pop, he knew he 
had a revolutionary device on his hands. 
Ink-Jet Printers  
Inventor: A Canon engineer. 
How it was created: After resting his hot iron on his pen by accident, ink 
was ejected from the pens point a few moments later. This principle led to 
the creation of the inkjet printer. 
X-Rays  
Inventor: Wilhem Roentgen, a physicist  
What he was trying to make: He was interested in investigating the properties of cathode ray 
tubes.  
Page 5


 
70 
UNIT 4 
Entrepreneurship as Innovation  
and Problem Solving 
Learning Objectives: 
After reading the chapter the student would be able to: 
 Understand the role of entrepreneurs as problem solvers in  society 
 Appreciate the role of innovations in entrepreneurial ventures 
 Explain the concept and importance of social entrepreneurship 
 State the meaning of entrepreneurial risk and risk management 
 Differentiate between internal and external risk 
 Describe the role played by technology in creation of new forms of business 
 Explain the different  barriers of entrepreneurship 
 Identify the various support structure available for promoting entrepreneurship 
 Understand the term Business Incubator 
Case Study 
Read the story and write  a few lines what you have understood from it: 
The Japanese have always loved fresh fish. But the waters close to Japan have not held many fish for 
decades. 
So to feed the Japanese population, fishing boats got bigger and went farther than ever. The farther the 
fishermen went, the longer it took to bring in the fish. If the return trip took more than a few days, the 
fish were not fresh. The Japanese did not like the taste. 
To solve this problem, fishing companies installed freezers on their boats. They would catch the fish and 
freeze them at sea. Freezers allowed the boats to go farther and stay longer. However, the Japanese could 
taste the difference between fresh and frozen and they did not like frozen fish. The frozen fish brought a 
lower price. 
So, fishing companies installed fish tanks. They would catch the fish and store them in the tanks. After a 
little thrashing around, the fish stopped moving. They were tired and dull, but alive. Unfortunately, the 
Japanese could still taste the difference. Because the fish did not move for days, they lost their fresh-fish 
taste. 
The Japanese preferred the lively taste of fresh fish, not sluggish fish. So how 
did Japanese fishing companies solve this problem? How do they get fresh-
tasting fish to Japan? How do the Japanese manage to keep the fish fresh? 
 
 
71 
To keep the fish tasting fresh, the Japanese fishing companies still put the fish in the tanks. But now they 
add a small shark to each tank. The shark eats a few fish, but most of the fish arrive in a very lively state. 
The fish are challenged. 
Have you realized that some of us are also living in a pond, but most of the time feel tired and dull, so 
we need a „Shark? in our life to keep us awake and moving? Basically in our lives, Sharks are new 
challenges to keep us active. 
For an entrepreneur, the main motivating factor which urges them to continue in their entrepreneurial 
pursuit is challenge. The more intelligent, persistent and competent they are, the more they enjoy a 
challenge. 
 From this story, it is clear that, to be a successful entrepreneur, one has to be a problem solver. 
 Identify the various problems involved in the story, and the various solutions available to solve it. 
 
Who is an entrepreneur?  
 He/she is the one who undertakes risks.  
Why are they called problem solvers? 
 Entrepreneurial actions are efforts to solve problems for others. Therefore, entrepreneurs 
are Problem Solvers. When one solves a problem a new value is created. In the business 
world, problem solvers take risks, but often create value by solving a customer or 
market problem, which is the key to creating a profitable enterprise. The more or larger 
problems an entrepreneurial organization solves, the more profit it can generate. 
Case Study 
Humble beginning of KFC 
In 1930, the then 40 year old Sanders was operating a service station in Corby, Kentucky, USA and he 
encountered a lot of hungry travellers who stopped for gas. He saw that the travellers wanted to eat 
something as there was nothing available in that area. He saw and understood the problem. As a child, 
he used to cook for his siblings and so he knew how to cook, which instigated him to cook for the 
travellers. He did not even have a restaurant to serve food but his secret blend of 11 herbs and spices 
made his chicken recipe such a super hit among travellers that he started getting regular customers for 
his food, which prompted him to start a restaurant. This is the humble beginning of the world famous 
fast food chain “KFC- Kentucky Fried Chicken”. 
 
Problem     Solution 
1. Love for fish    Led to using of Bigger boats 
2. Need for fresh fish    Installation of freezers 
3. Taste of fresh fish    Installation of fish tanks 
4. To improve taste of the fresh fish  Added shark 
 
 
72 
Solving Problems to Meet the Needs and Wants of People: 
Most entrepreneurial ventures have survived when they solve problems of people, 
understanding their needs and accordingly changing the product to their needs. Study the 
following examples: 
The Story of Kellogg: In 1894, Dr. John Harvey Kellogg was superintendent of a famous 
hospital and health spa in Battle Creek, Michigan. His younger brother, Will Keith Kellogg, was 
the business manager. The hospital stressed healthful living and kept its patients on a diet that 
eliminated caffeine, meat, alcohol and tobacco. 
The brothers invented many foods that were made from grains, including a coffee substitute 
and a type of granola, which they forced through rollers and rolled into long sheets of dough. 
One day, after cooking some wheat, the men were called away. When they finally returned, the 
whet had become stale. They decided to force the tempered grain through the rollers anyway. 
Surprisingly, the grain did not come out in long sheets of dough. Instead, each wheat berry was 
flattened and came out as a thin flake. The brothers baked the flakes and were delighted with 
their new invention. They realized that they have discovered a new and delicious cereal, but 
they had no way of knowing that they had accidentally invented a whole new industry. Will 
Keith Kellogg eventually opened his own cereal business and its most famous product is still 
sold today. It wasn‘t until 1906 that Kellogg?s Corn Flakes were made available to the general 
public.   
Innovations Leading to Entrepreneurial Ventures 
An entrepreneur is also known to be a person who habitually creates and innovates to build 
something of recognised value around perceived opportunities. 
Creativity and innovation are the distinguishing marks of the entrepreneur. That is why they 
disturb markets and can challenge large established businesses. Creativity is a continuous 
activity for the entrepreneur, always seeing new ways of doing things with little concern for 
how difficult they might be or whether the resources are available. But creativity in the 
entrepreneur is combined with the ability to innovate, to take the idea and make it work in 
practice. Once the project is accomplished, the entrepreneur seeks another =mountain to climb‘ 
because for him or her creativity and innovation are habitual, something that he or she has to 
keep on doing. 
Let us look into some innovations that led to successful ventures: 
Penicillin  
Inventor: Sir Alexander Fleming, a scientist  
What he was trying to make: Ironically, Fleming was 
searching for a "wonder drug" that could cure diseases. 
However, it wasn't until Fleming threw away his experiments 
that he found what he was looking for. 
 
73 
 
How it was created: Fleming noticed that a contaminated Petri dish, he had discarded, contained 
a mold that was dissolving all the bacteria around it. When he grew the mold by itself, he 
learned that it contained a powerful antibiotic, penicillin. 
Potato Chips 
Inventor: George Crum, a chef at the Carey Moon Lake House in Saratoga Springs 
What they were trying to make: A plate of fried potato. 
How it was created: One day, a customer sent back his plate of potatoes 
many times and kept asking for them to be more fried and thinner. 
Crum lost his temper, sliced the potatoes insanely thin and fried them 
until they were hard as a rock. To the chef's surprise, the customer 
loved them and wanted more! And this is how potato chips came into existence.  
The Pacemaker 
Inventor: John Hopps, an electrical engineer  
What he was trying to make: Hopps was conducting research on hypothermia 
and was trying to use radio frequency heating to restore body temperature.  
How it was created: During his experiment, he realized that if a heart 
stopped beating due to cooling, it could be started again by artificial 
stimulation. This realization led to the pacemaker.  
Microwave Ovens 
Inventor: Percy Spencer, an engineer (with the Raytheon Corporation) 
What he was trying to make: The engineer was conducting a radar-related 
research project with a new vacuum tube. 
How it was created: Spencer realized that the candy bar in his pocket began to melt during his 
experiments. He then put popcorn into the machine, and when it started to pop, he knew he 
had a revolutionary device on his hands. 
Ink-Jet Printers  
Inventor: A Canon engineer. 
How it was created: After resting his hot iron on his pen by accident, ink 
was ejected from the pens point a few moments later. This principle led to 
the creation of the inkjet printer. 
X-Rays  
Inventor: Wilhem Roentgen, a physicist  
What he was trying to make: He was interested in investigating the properties of cathode ray 
tubes.  
 
74 
How it was created: When light through tubes he noted that sheets of fluorescent paper in his 
lab were illuminated even though his machine had an opaque cover.  
It is clear from these examples, that the various inventions people all over the world have tried, 
failed and succeeded in sometimes by mistake. Utility for the invention will be developed later 
in life, so immediate results for all one‘s actions should not be expected, but keep 
experimenting. 
Social Entrepreneurship 
What is Social Entrepreneurship? 
According to J. Gregory Dees, ?Social entrepreneurship is which combines the passion of a social 
mission with an image of business-like discipline, innovation, and determination”. 
Who is a Social Entrepreneur? 
According to Martin & Osberg, ?the Social Entrepreneur aims for value in the form of large-scale 
transformational benefit that accrues either to a significant segment of society or to society at large.” 
Moreover, the social entrepreneur targets his/her programs at the ?underserved, neglected, or 
highly disadvantaged population that lacks the financial means or political clout to achieve the 
transformative benefit on its own.” 
A Case in Point: The Grameen Bank, a Model of Sustainability 
Muhammad Yunus, the founder of the Grameen Bank and winner of the 
2006 Nobel Peace Prize, found a solution to the plight of poor Bangladeshis 
who are unable to acquire funds to start their own business – microcredit. 
He lent $27 of his personal funds to a group of poor women, who quickly 
started a sewing business that was able to generate enough income to help 
them pay back the loan, and more importantly, to rise above poverty. Thus 
the idea of the Grameen Bank was born. According to Martin & Osberg, “Grameen Bank sustained itself 
by charging interest on its loans and then recycling the capital to help other women.” Having thus 
proven microcredit to be a sustainable method of combating global poverty, Yunus continues to inspire 
organizations worldwide to adopt the Grameen model to combat poverty in their own communities. 
Like the Grameen model, there have been instances of various self-help groups in India, which foster 
various models of sustainability. The success of AMUL in at Anand in Gujarat eventually led to the 
creation of various co-operative societies across the country. 
Example: Co-operatives; Saras in Rajasthan, Mother Dairy in Delhi and Aarey in Maharashtra