Overview of Innovation and Entrepreneurship

Discuss about the Innovation And Entrepreneurship Affect.

The essay presents a brief overview of the innovation and entrepreneurship. It explains that how innovation and entrepreneurship affect the business activities of the organization. Innovation is the application and process of better solutions in order to meet implicit needs, new requirements and market needs and desires. The innovation is related to the new invention. Innovation and entrepreneurship are interconnected with each other. Further, innovation is the process of implementation of new ideas, thoughts, technology, and knowledge. Innovation is the result of collective and group efforts where success and growth depend upon the new technology and science. Innovation and entrepreneurship are the broader concepts. Innovation is the process of converting an idea and invention into the good and service which create effective values in the organization (Bloom, Draca & Van Reenen, 2016).  It involves the planned application of knowledge and information, initiative, imagination and different values from resources. It is a process which involves many activities, performed by the various players in the organization. Many organizations adopt innovation and entrepreneurship process to gain the more success and growth in the future. Innovation is not only the invention process but it also makes changes in the business model of the organization. Innovation increases the customer choices and expectations and it also maximizes the globalization connectivity. Through innovation, the company can take the entrepreneurship benefits. Therefore, innovation plays a significant role in every organization. It is the combination of entrepreneurial process and inventive process to create and build new economic value for the various stakeholders (Hattab, 2014).

Entrepreneurship is the process launching, running, operating and designing a new business and trade. It has been defined as the “Willingness and capability to organize, manage, operate and develop a business with reducing the various kind of risk in order to increase the revenue and profit of the company”. The entrepreneurs identify the opportunities and threats of the market. An entrepreneur defined as “a person who starts, manages, organizes and operates any venture and enterprise. Entrepreneurship creates and develops the opportunities for the employment and it enhances and increases the economy of the country (Choi & Majumdar, 2014). It is mandatory for the enhancement and development of managerial and administrative capabilities. It is the broad and dynamic concept which eliminates and removes the various barriers and obstacles within the organization.  In entrepreneurship, people develop new ideas and thoughts and they become more aware and measure and identify the opportunities and threats of the company. After the various researches, it has been found that innovation and entrepreneurship are very important to expand the business activities and to overcome on the market competitors (Bae, Qian, Miao & Fiet, 2014).

Importance of Innovation and Entrepreneurship

Innovation and entrepreneurship play a significant role in every organization. Innovation is the specific instrument of entrepreneurship. Entrepreneurs search and find the sources of innovation and they find the opportunities for the business. Innovation is essential for the survival of entrepreneurs and it is also necessary to expand the business of the organization.  Innovation and entrepreneurship are the key success factor of the organization. In today’s competitive environment, innovation and entrepreneurship are important success factors to overcome on the competitors in the market. Innovation and entrepreneurship help to develop and build the organizational structure and values in the organization. Entrepreneurs are the person who identifies and evaluate the various opportunities and finds the gaps in the market and measures the feasibility of new business. They collect the feedback from the market to achieve the organizational goals and objectives. Many companies use the traditional business techniques and methods in business which affects the business activities of the company. Therefore, the organization uses innovation and entrepreneurship process in the organization. Entrepreneurs use the innovations to improve and enhance the quality of work and they also improve the position of the company in the global economy. Entrepreneurs are responsible for growth and success of the company (Kleinknecht, 2016).

Here, “my stuff movement hypothetical company” has been selected for the essay. The essay provides an overview of the importance and effects of using the innovation and entrepreneurship tool in the management so that objective can be achieved. My stuff movement is a mover and packer company which is a transporting business. The company assists the customers in delivering services at their doorsteps. Through these activities, the product is easily reachable by the customers. Many other activities which the company performs are online delivery, assisting in shifting house, assist in home deliveries etc. As the business is new in the market and the idea of the business is also creative, thus the company needs to use innovation and entrepreneurial activities in their business in order to achieve success (Seltzer & Mahmoudi, 2013).

The fact is known to all that no business in today’s world can run easily without using innovation tool in their business. In order to create a different position in the industry, each and every company needs to implement such techniques. Further, the concept of the business is creative so if the entrepreneur of the company will implement the innovative techniques then the business will gain the market share in a short span of time. The company shall use disruptive innovation technique in their business so that their capabilities are enhanced in the market. Disruptive innovation is the type of innovation which the business process use utilizes to improve the quality of their product and provide maximum satisfaction to the customer of the company. My stuff movement company has originated with an innovative idea in the market, thus the customers will now expect from the company that it will work accordingly with innovative techniques in the market (Baden-Fuller & Haefliger, 2013).

Innovation and Entrepreneurship in My Stuff Movement

Disruptive innovation will help the company to circulate their product in the target market with low prices. This will attract the interest of the customers which will make them use the services of the company. And ultimately the sale of the company will rise. If the products are distributed in the market without lower prices and there are easily available to the customers at their doorstep then, due to better availability at low prices the company will flourish in the market and gain the competitive edge. If such transport services are being sold at a high price in the market, then it will become difficult for the business to create its position in the market due to already existing competitors in the market (Leutner, Ahmetoglu, Akhtar & Chamorro-Premuzic, 2014).

Talking about the use of entrepreneurial techniques in the company, such techniques will assist the company in the initiation of disruptive innovation in the market. Innovation and entrepreneurship tools are always used in alignment, innovative being the wider concept is used by the entrepreneur in initiating their business functions (Frankenberger, Weiblen, Csik & Gassmann, 2013). An entrepreneur is a person who analyses the risks which can create losses for the company and drive them to generate profits for the organization. No entrepreneur can work efficiently without using innovative techniques. In the company my stuff movement, the main task which the entrepreneur shall perform is to motivate the employees and make them understand the tools which the company is going to use to increase the sale in the market. If the employee of the company will not support the decision of their leader then the company cannot work in long run. Thus, along with innovation, the manager of the company shall efficiently work on the entrepreneurial techniques so that maximum financial benefits are attained for the company (Küttim, Kallaste, Venesaar & Kiis, 2014).

One of the innovative techniques which the company shall be utilized to maximize their profits is the use of social media technology to enhance the working of the business. Talking about innovation, technology is the foremost import thing which attracts the business and helps them to earn benefits. The entrepreneur shall efficiently analyze the demand of the target market and the requirement of the customers, and then accordingly supply the services and product in the market. Further, it shall be noted that the entrepreneur shall help the personnel of the company to develop the capabilities and skills (Cabigiosu, Zirpoli & Camuffo, 2013). The impact of the use of innovative entrepreneurial techniques is that the company will enhance its skills and create a product which is demanded in the market. Innovation is not only required by the product or services but the entrepreneur can initiate innovation in the internal management of the organization as well. With this effect, the entrepreneur will initiate the management to utilize the resources optimally and reduce wastage. Another way in which internal management can be enhanced is that the leader shall educate the management regarding the innovative techniques used in the business so that they can trust on the activities of their manager. So, in this way the innovation and entrepreneurship tools can help the company to utilize the resources optimally and gaining maximum benefit for the company (Boons, Montalvo, Quist & Wagner, 2013).

Hence, from the above events, it shall be noted that in today’s world it very essential for a company to implement innovation and entrepreneurship techniques in their business process. So the My Stuff Company shall also make sure that the entrepreneur uses the innovative techniques and gain benefits for the company. Also, the company shall use innovative technology to enhance the skills of the business.

References

Baden-Fuller, C., & Haefliger, S. (2013). Business models and technological innovation. Long range planning, 46(6), 419-426.

Bae, T. J., Qian, S., Miao, C., & Fiet, J. O. (2014). The relationship between entrepreneurship education and entrepreneurial intentions: A meta?analytic review. Entrepreneurship theory and practice, 38(2), 217-254.

Bloom, N., Draca, M., & Van Reenen, J. (2016). Trade induced technical change? The impact of Chinese imports on innovation, IT and productivity. The Review of Economic Studies, 83(1), 87-117.

Boons, F., Montalvo, C., Quist, J., & Wagner, M. (2013). Sustainable innovation, business models and economic performance: an overview. Journal of Cleaner Production, 45, 1-8.

Cabigiosu, A., Zirpoli, F., & Camuffo, A. (2013). Modularity, interfaces definition and the integration of external sources of innovation in the automotive industry. Research Policy, 42(3), 662-675.

Choi, N., & Majumdar, S. (2014). Social entrepreneurship as an essentially contested concept: Opening a new avenue for systematic future research. Journal of Business Venturing, 29(3), 363-376.

Frankenberger, K., Weiblen, T., Csik, M., & Gassmann, O. (2013). The 4I-framework of business model innovation: A structured view on process phases and challenges. International Journal of Product Development, 18(3-4), 249-273.

Hattab, H. W. (2014). Impact of entrepreneurship education on entrepreneurial intentions of university students in Egypt. The Journal of Entrepreneurship, 23(1), 1-18.

Kleinknecht, A. (2016). Innovation patterns in crisis and prosperity: Schumpeter’s long cycle reconsidered. Springer.

Küttim, M., Kallaste, M., Venesaar, U., & Kiis, A. (2014). Entrepreneurship education at university level and students’ entrepreneurial intentions. Procedia-Social and Behavioral Sciences, 110, 658-668.

Leutner, F., Ahmetoglu, G., Akhtar, R., & Chamorro-Premuzic, T. (2014). The relationship between the entrepreneurial personality and the Big Five personality traits. Personality and individual differences, 63, 58-63.

Seltzer, E., & Mahmoudi, D. (2013). Citizen participation, open innovation, and crowdsourcing: Challenges and opportunities for planning. CPL bibliography, 28(1), 3-18.