Enterprise and importance of creativity

Running head: MANAGEMENT
Business and Entrepreneurship
Name of the Student:
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Author Note

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Businesses or organizations can be defined as enterprises which constitute of human
beings with common goals and objectives based on shared principles to achieve them. In order to
become productive, an organization need resources: materials/commodities, as well as human. It,
thus, is very essential to make use of proper resources to make the business sustainable and
powerful. It is here, that the role of innovation, enterprise and creativity comes into play, which
is very important to act on the opportunities which come in the way of growth and success.
Entrepreneurs have strong ideas about opportunities, which exist in the market and can be acted
upon to achieve success. Entrepreneurs are often referred to as people who take necessary risks
and are able to manage the uncertainties, to yield to productive outcomes (Bogavac-Cvetković
and Miličković 2016). The most appropriate opportunity given to the entrepreneurs were given
during the Industrial Revolution, in Britain and entrepreneurship has evolved as time has passed.
The paper would discuss entrepreneur, entrepreneurship, enterprise and importance of creativity
and innovation.
Innovation and creativity have become integral part of success, especially in the
developing countries. Innovation can be referred to as being the way in which businesses
processes are enhanced by making adaptable changes which help in increasing productivity
(Plucker 2016). This enables a business to make the quality of services and products better, to
sustain market conditions. Innovation is very important to enhance product offerings and make
improvements in the products and services while understand demands and expectations of the
customers and be able to rapidly meet the needs. Creativity and innovation are considered to be
very crucial for determining success. Alongside innovation, the need for creativity has been
intensified due to the increase of complex problems in business environments (Bogavac-
Cvetković and Miličković 2016). Suitable solutions are to be found in order to deal with

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contemporary problems, especially related to the management. Thus, it is needless to say that
creativity goes parallel to innovation when it comes to development, sustainability and hence,
lead the market.
The organizations who are able to, proactively, address opportunities through innovation
as they tend to be ahead in the market, even through volatile business conditions. Companies
who innovate are more likely to flourish, grow and become successful even through toughest
times, especially during economic as they modify their operations and adapt. Such organizations
are very creative while catering to the demands and trends in the market. Creativity and
innovation ensure that they meet standards and expectations of the customers and sustain in the
market (Bogavac-Cvetković and Miličković 2016). Hence, innovation is a strategic tool which
can be chosen and used by the company to make business processes enhanced and effective for
growth.
Innovation is a very important function in entrepreneurship. The usual meaning which is
associated with entrepreneurship, is that the entrepreneurs foster various ways through which
they reproduce resources and offer them in the market in enhanced manners (Bogavac-Cvetković
and Miličković 2016). These resources are either new and thus, capable of wealth production or
some existing resources are enhanced with the intention of creating more wealth. Innovation is a
perceptual and conceptual, which the innovators and entrepreneurs must pay attention to from
time to time. Taking risks might be very difficult as there are great uncertainties involved in the
market. Hence, it requires great analytical skills to be able to address the opportunities and create
value out of them.
Additionally, creativity can be defined as the flow of to make an existing system more
effective and operational. Creativity involves two aspects with which the businesses and

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organizations can be benefited, which include people and process. People are that valuable
resource to a company which determine, execute and develop solutions for the company and
make functions operational. People, therefore, are responsible to develop necessary ideas and
solutions with which the systems can be addressed in order to enhance services and come up
with better products and processes for the company. On the other hand, process is designed in
such a manner that they yield to outcomes and solutions, through various goals and objectives.
An entrepreneur refers to a person who addresses a demand or need in the society or the
market with innovative ideas. Entrepreneurship is the process of building the business into an
entity which will make profits in the future while enterprises are the desired outcome of the
process and ideas put together. Great emphasis is laid on entrepreneurship in many developing
and developed countries. It is considered that entrepreneurs must have specific knowledge and
skills in order to anticipate the outcomes and opportunities, based on which their preparedness
are determined (Babu, Krishna and Swathi 2013). This enables the entrepreneurs to understand
the expectations and innovate according to the information acquired. UNICEF also lays great
emphasis on the development of the small and medium sized enterprises for the development and
growth of economy in the countries. UNICEF has also identified that government also plays a
very crucial role in enabling the small and medium sized enterprises to be able to face the fast
and changing business conditions in which they sustain. The challenges which are posed in their
growth, can be better dealt with, with the aid and support of the government, which, in return
helps the economy grow.
One of the greatest challenges which are faced by the SMEs in the market economies, is
the process of transitioning and acquiring necessary skills to enhance the business to develop the
culture of entrepreneurship. SMEs often lack the technical understanding and awareness which