Contemporary Issues in Entrepreneurship and Innovation

The assignment discusses various issues present in a company, including complex problems, pseudo problems, wicked problems, and tame problems. These issues affect the work performed in a company. The document provides references from books and journals on entrepreneurship research, social innovation, and regional development.

Contemporary Issues in
Entrepreneurship and
Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
MODULE 1.....................................................................................................................................1
1. Article on The CEO as a Critical thinker of “Wicked ” strategic problems...........................1
2. Factors that explain that article relates to the problems associated with entrepreneurship and
Innovation...................................................................................................................................2
MODULE 2.....................................................................................................................................3
1.Relevance of Professor Kaku's presentation with the issues regarding Innovation and
Entrepreneurship.........................................................................................................................3
MODULE 3.....................................................................................................................................4
1. What makes entrepreneur entrepreneurial..............................................................................4
2. Relevance of article with contemporary issues.......................................................................4
MODULE 4.....................................................................................................................................5
1.Transformative innovation and its difference from other forms of innovations......................5
2. Relevance of article with contemporary issues of Innovation and Entrepreneurship.............6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation and Entrepreneurship is one of the fastest growing factors in the work
environment. Entrepreneurship is a very innovative process that is carried on by the person who
have a creative idea and have some entrepreneurial skill as well (Audretsch and Link, 2012).
Innovation is very important inside an organisation because if there will not be any innovative
factor in company then the company will not grow. This report will discuss about the Wicked
Strategic problems, the reasons that makes an entrepreneur entrepreneurial, transformative
innovations etc.
MODULE 1
1. Article on The CEO as a Critical thinker of “Wicked ” strategic problems
Wicked problems can be defined as those type of problems that are so persistent and
pervasive that they seem to be insoluble which means that it can be solved. In the current era,
CEO's are facing various types of wicked problems in their organisations which gives rise to
various issues that are complex and perplex. As per the survey done by Neutron and Stanford
University in 2008, few of the wicked problems are :-
 Balancing the long term goals with the short term objectives,
 Integrating social responsibilities with the profitability
 Aligning strategies with customer experience etc.
Under theory of Wicked Problems, various types of errors are discussed like Type 1, Type 2 etc.
Under Type 1 error, matters that are related to Rejection of statements, Hypotheses,
solution etc. are included. It is also called as Alpha errors (Audretsch, 2012). It causes loss to the
market and producer also losses the opportunities to introduce new products in market.
Type 2 Errors includes the acceptance of statements , hypotheses and statements. It
causes actual loss to both market as well as customer. It is also called as Beta Errors.
According to Peter Senge, some of the laws of “Fifth Discipline” can very well explain
from where the wicked problems arise. According to this, it is said that “Today's problems arise
from yesterday's solution” so, it means that if CEO's wants solution of current problems then
they will have to look at the previous solutions that they have taken to come out of the problems.
If CEO wants to solve Wicked problems then they it will need analysis and synthesis. In
this , analysis means
 Taking the thing apart that they need to understand
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 Explaining the behaviour of each part taken separately
 Aggregating the explanation into understanding as a whole
On the other hand, Synthesis means :
 take the things that people wants to understand as a part of large whole
 Explaining the behaviour of containing whole
 Now, finally disaggregating the understanding of containing whole
2. Factors that explain that article relates to the problems associated with entrepreneurship and
Innovation
The problems that are faced by CEO's are of various kinds of companies are very
different and rare (Bacq and Janssen, 2011). These wicked problems arise because of the factors
like market uncertainty, turbulence, Excessive pressure from shareholder, frequent changes in
lifestyle of customers etc. Under such circumstances, problems keeps on increases the more it is
addressed.
If the issue regarding Innovation and Entrepreneurship will be discussed here, then it will
be connected with problems faced by CEO's completely. Due to implementation of Six Sigma
concept and Total quality management concept , the quality has now virtually became a
commodity and increased the expectations of customers as well as now they wants their product
should be reliable and affordable. It can be said that a business wants to run for a longer time in
a business environment then they will have to bring innovation into themselves from time to time
otherwise the business might come down in market.
The article that has been provided is related to the issues that are faced by the
entrepreneurs while doing innovation and entrepreneurship. If the company wants to be
innovative and effective then they will have to face all kinds of problems that will arise in the
company but if the problems are wicked then they will be needing strong guidance of experts and
managers.
In this, as per one of the law described by Peter Senge, “Harder you push, harder the
system pushes you back”. It means that if marketing manager of a company comes to know that
their products are loosing its attractiveness in the market so they will implement aggressive
marketing strategies inside market in which the company will lower the price of product and will
re-advertise the product in market. Sometimes they even have to innovate its product and then
relaunch it in the market. Implementation of this marketing strategies will make use of various
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resources of company like financial resources will be used while doing promotion (Carlisle and
et. al., 2013). So, it is required that the management of company makes use of System thinking in
order to resolve some of the wicked problems that are present. System thinking believes that
solution can not only be for long term but for short term as well.
MODULE 2
1.Relevance of Professor Kaku's presentation with the issues regarding Innovation and
Entrepreneurship
As per the speech given by Professor Kaku at Queensborough Community College, NY
in 2009, the World in 2030 was discussed. He covered few very wonderful points in which
covered following points:-
 Doubling time for computer power is 18 months
 By 2020, Chips may cost a penny
 Computer will be Everywhere, and Nowhere
 After 2020: Quantum Computing Artificial intelligence- Jobs and security.
In the initial speech , the discussed was regarding communication which will soon be improved
Optic web interfaces which will begin with Eye glasses and then contact lenses. People will be
able to download any website, movies etc. and the glasses will also be fashionable with full
internet capability.
After this , Professor Kaku also discussed about hoe people will communicate with each
other in Future. So, one of the ways that was suggested by him was E-paper instead of a
Blackberry. It will be an intelligent paper in which people could type and cell-phone will work
take place of PC.
He then spoke about the Disposable computers as the chips will contain all the information so it
can be carried along where ever the person goes. Another important point discussed was
regarding “Smart Wallpapers”. It was a very interesting concept as according to him , in future
world will be having digital Interfaces which will definitely help in enhancing communication.
While doing dinner, people can have video conferencing with their friends.
Professor Kaku discussed about various other important concepts as well like Smart
toilets, Artificial intelligence, Teleportation , Telepathy etc.
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MODULE 3
1. What makes entrepreneur entrepreneurial
Entrepreneurs are considered as entrepreneurial because they think effectually and their
actions have a power to control the human actions that will happen in future. By thinking
effectually, entrepreneurs reduces the chances of failure and increases the chances of profitability
(Cooke and et. al., 2011). The purpose of making entrepreneurs entrepreneurial includes the
benefits for entrepreneurs only because if entrepreneurs will not have qualities that are required
in an entrepreneur then the business will not become successful. It includes the characteristics,
habits and behaviour of particular entrepreneurs. There are so many learning that can be learned
by new entrepreneurs by the old entrepreneurs.
The main points that are covered in this article are related to Effectual thinking of
entrepreneurs . In this, the whole process of effectual reasoning is included which are as
follows :-
 Effectual Reasoning : The problem
 Effectual Reasoning : The process
 Effectual Reasoning : The Principles
 Effectual Reasoning : The logic
This concept is relevant with innovation and Entrepreneurship since they are having
entrepreneurs need to be innovative in their work and must have creative skills and ideas because
then only they will be able to set up their entrepreneurial venture successfully.
2. Relevance of article with contemporary issues
This article discusses about the skills and competencies that are required to be present in
an entrepreneur and which will help them in becoming successful in market. It is interrelated
with Innovation and Entrepreneurship in many ways because it is very important for the
entrepreneur to be innovate and creative in their work as it will help in making a strong place in
market. In this, it is also said that great entrepreneurial firms are the product of contingencies. Its
structure, culture, core competencies and endurance are considered as residuals of a particular
person who is trying to fulfil their aspirations by taking help of technologies (Hartley, Sørensen
and Torfing, 2013).
Various experts from the entrepreneurial arena like bankers, lawyers or the investors have
said that successful entrepreneurs will need help of right people for creating a successful
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business venture. These right people should be innovative and expert in their work so that they
make the business grow at a faster rate (Maclean, Harvey and Gordon, 2013).
MODULE 4
1.Transformative innovation and its difference from other forms of innovations
The meaning of innovation is something new or something change in existing product to
create the value. The value addition in the product for monitory gain. The meaning of value is
the extra amount that buyer ready to pay for product compare to market. Innovation is to
converting idea into the real life its refers both radical and incremental change in to product,
process, services. Innovation are divided into two types one is evolutionary innovation and
second revolutionary innovation. In evolutionary risk are low but in revolutionary risk are high,
because in evolutionary incremental change are done in existing market but in revolutionary
new market are created.
According to Horizons model three form of innovation are sustaining innovation, disruptive
innovation and transformative innovation. In sustaining innovation change are happen
continuously, in disruptive innovation when required for market gain, in transformation
innovation intentionally shift from existing system to new system of operation/product/services.
According to Freeman and Perez, there are four kinds of innovation which includes;
Incremental innovation, Radical innovation, Transformative innovation and the last one is
Techno-Economic paradigm innovation.
Incremental innovation is done to improve the price, productivity and performance of the
performance of company.
Radical Innovation are the discontinuous events that are been distributed over sectors. It is
considered as very important for the potential growth of new markets (Nambisan and Baron,
2013).
Transformative innovations are those which include giving rise to a entirely new sector. For eg.
Mass urban transportation.
Radical innovation can be distinguished from Transformative innovation as the former
one includes substantial changes substantial changes in market and its link with users and the
latter one will include technical competencies. Radical innovation is having clean technology,
industrial ecology.
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2. Relevance of article with contemporary issues of Innovation and Entrepreneurship
Transformative innovation does mean innovation inside the system , it means innovation
of the whole system. It is very much relevant with the contemporary issues of innovation and
entrepreneurship as it also deals with socio-technical changes happening in the business which is
affecting entrepreneurs as well (Nicholls and Murdock, 2012). Through transformative
innovation, it becomes very clear that what all changes are required to be conducted inside an
organisation. Bringing in innovation is the responsibility of research and development
department so for this , they need to do various kinds of niche experimentation etc. but from all
this , it is very well clear that transformative innovation step is technically feasible, economically
viable and socially realisable.
It is very important to implement socio-technical changes in a correct way because then
only the company will be able to gain success in the market. It helps in bringing stability in the
system. But innovation will still take place in stable system . The socio-technical perspective will
draw the attention towards transformative innovation. In this, both specific innovation and
systems in which they are operating are changing radically. Adapting a socio-technical
perspective will broaden the consideration in innovation policy. It adds concern for institution,
social values, cultural meanings and supportive infrastructure (Sotarauta and Pulkkinen, 2011).
So, transformative innovation is connected with issues that are prevailing in society.
CONCLUSION
From this report, it can be concluded that there are various issues that are present in a
company. It can be a complex problem , Pseudo problem, wicked problem or a tame problem.
All these problems are having an effect on the work that are being performed in a company.
Here, the contemporary issues that are associated with entrepreneurship and innovation are being
discussed and its possible solutions that can be applied is also covered.
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REFERENCES
Books and Journals
Audretsch, D. B. and Link, A. N., 2012. Entrepreneurship and innovation: public policy
frameworks. The Journal of Technology Transfer. 37(1). pp.1-17.
Audretsch, D., 2012. Entrepreneurship research. Management Decision. 50(5). pp.755-764.
Bacq, S. and Janssen, F., 2011. The multiple faces of social entrepreneurship: A review of
definitional issues based on geographical and thematic criteria. Entrepreneurship &
Regional Development. 23(5-6). pp.373-403.
Carlisle, S. and et. al., 2013. Supporting innovation for tourism development through multi-
stakeholder approaches: Experiences from Africa. Tourism Management. 35. pp.59-69.
Cooke, P. and et. al., 2011. Handbook of regional innovation and growth. Edward Elgar
Publishing.
Hartley, J., Sørensen, E. and Torfing, J., 2013. Collaborative innovation: A viable alternative to
market competition and organizational entrepreneurship. Public Administration Review.
73(6). pp.821-830.
Maclean, M., Harvey, C. and Gordon, J., 2013. Social innovation, social entrepreneurship and
the practice of contemporary entrepreneurial philanthropy. International Small Business
Journal. 31(7). pp.747-763.
Nambisan, S. and Baron, R. A., 2013. Entrepreneurship in innovation ecosystems: entrepreneurs'
self‐regulatory processes and their implications for new venture
success. Entrepreneurship Theory and Practice. 37(5). pp.1071-1097.
Nicholls, A. and Murdock, A., 2012. The nature of social innovation. In Social innovation. (pp.
1-30). Palgrave Macmillan UK.
Sotarauta, M. and Pulkkinen, R., 2011. Institutional entrepreneurship for knowledge regions: in
search of a fresh set of questions for regional innovation studies. Environment and
Planning C: Government and Policy. 29(1). pp.96-112.
Audretsch and Link, 2012Audretsch, 2012Bacq and Janssen, 2011Carlisle and et. al.,
2013Cooke and et. al., 2011Hartley, Sørensen and Torfing, 2013Maclean, Harvey and
Gordon, 2013Nambisan and Baron, 2013.Nicholls and Murdock, 2012Sotarauta and
Pulkkinen, 2011
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