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| Innovation and Entrepreneurship is the generation and implementation of new ideas that can create impact. In the changing economies entrepreneurs face growing market challenges and it is crucial for the business to keep progressing through new ideas. The paper discusses the relationship between innovation and entrepreneurship and how important innovation is for a successful entrepreneur and a successful economy. The analysis will be done by analysis of different theories on innovation and entrepreneurship and by discussion of different forms of innovation and their importance. |
The idea of a successful venture has revolutionized greatly in recent years. Systematic and traditional methods of businesses are overtaken by evolutionary start-ups and other firms that have incorporated social work in the form in their businesses. The ideas of most start-ups recently are very innovative, and even if they are not considered completely innovative by some, they are completely different from traditional methods or ideas of business.
However, innovation in entrepreneurship is not a recent process; the idea of innovation in entrepreneurship is first coined by Schumpeter in 1934. Before analyzing the idea of innovation and entrepreneurship, it is important to define innovation. Innovation is the process of implementation of new ideas in an organization for the creation of value and development. Innovation is key for successful business especially in the contemporary business world, and the companies that do this best are the companies that will succeed.
(Beckley, 2013)According to Schumpeter, “The fundamental impulse that sets and keeps the capitalist engine in motion comes from new consumer goods, the new markets, the new forms of business organization that capitalist enterprise creates” (Schumpeter, 1942) Concept of innovation and entrepreneurship is widely discussed and, according to Schumpeter innovation in any form is the key to running a capital economy.
But where do these ideas stand in today’s world? Does innovation play an equally important role or has reality changed with time? Innovation and entrepreneurship have changed today, wherein past technological innovation might have been considered the key for growth, now the shift might have occurred from technological to managerial innovation. The paper will discuss the different forms of innovation and what form of innovation is important to the modern-day business world.
The reason for discussing the applicability of old theories in today’s world is because entrepreneurs and their motivators have changed greatly. Entrepreneurs desire to be intellectually challenged and as mentioned earlier some even want to bring a change in society but starting start-ups that are oriented towards social change. Another reason why companies are constantly looking for innovative ideas and methods for growth is a competitive global economy.
The challenges faced by companies in a competitive global environment, require them to adapt and implement innovative strategies to face those challenges. According to research, the growing market challenges, the emergence of low-cost economies, increased competition, customer awareness, and demand for better products, increasing costs of factors of production, and changing technology requires companies to adopt new methods of growth or else companies’ growth can become stagnant. What is the relationship between innovation and entrepreneurship? Does entrepreneurship depend on innovation? Is innovation the key to making a business successful? These are all the questions that come to mind while discussing the relationship between innovation and entrepreneurship……
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