Entrepreneurship and Innovation Explained
Added on 2020-05-16
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Running head: ESSAY0Entrepreneurship andinnovation
ESSAY1ESSAY:There are various definitions of entrepreneurship that has been given by the theorists. In general,entrepreneurship can be expressed as the process that deals with exploiting the marketopportunities in order to develop a business in a unique and different way. R.Cantillona hasdefined entrepreneurship as self-employed. As per him the entrepreneur need to balance theiractivities according to the demands of the market. Another author J. Achumpeter has definedentrepreneurship as the vehicle that supports the economy of the place to move forward.Likewise many definitions of entrepreneurship have been proposed but entrepreneurship in totalis regarded as the set of traits and that is required by the driver of the entrepreneurship that isentrepreneur (Drucker, 2014). There are several qualities that the leader should possess and oneof the qualities is innovator. This makes innovations the basic element of entrepreneurshipEntrepreneurship is the practice that can be practiced in the institution that is considered as thecarrier of innovation. Innovation is the aspect that is very necessary in terms of performingsomething unique in the business and to attain the competitive advantages over the otherbusinesses. Definition of innovation has always been a great topic of discussion amongst theresearchers and the authors. It has been identified that the innovation can be defined differentlyor the different organisations as per their way of defining their activities. The ability of the person to innovate is always found to be important for the organisations to getsuccess. This suggests that innovation is the subset of entrepreneurship. Drucker has definedinnovation as one of the two basic functions of the organisations (Drucker, 2014). Mohr, on theother hand described innovation as the new change that can be implemented to the organisation.As far as the definition by Covin şi Slevin, Lumpkin and Dess, Knox is considered, it has beenanalysed that innovation is the process that adds value to the organisation (Morris, Kuratko &Covin, 2010). Other than these definition, there are many definition t has been postulated forinnovation. In total, it has been analysed that innovation is the process to bring new and uniqueprocess or products to the organisation that adds value to the same and helps the entrepreneur toperform his entrepreneurial activities successfully. Drucker suggest that entrepreneurship always look for making changes and as per the definitionof innovation, it is considered as the process of bringing the change thus these concept that are
ESSAY2entrepreneurship and innovation are so much related to each other (Stevenson & Jarillo, 2007).But have different types of benefits in the organisation. Entrepreneurship is the activity or theprocess to conduct the business activities and provides a path to conduct the same whileinnovation at the same time makes it unique to have competitive advantage. Innovation is itself achange while entrepreneurship is the process that is above recognizing that change.Entrepreneurship creates new business. It has been analysed that entrepreneurship results indevelopment of the business that contributes in the economy (Bessant & Tidd, 2007).Trailblazing contributions byentrepreneurs, in the form of new goods andservices,can producea flowing effect byinspiringrelated businesses or sectors aiding the new venture,furtheringeconomic development. Innovation is also the aspect that contributes in economic development.This is because innovation in the business helps the companies to enter the new market withcompetitive edge over other competitors. Entrepreneurship also helps in creating social change inthe society and this is the major advantage of entrepreneurship(Schaltegger & Wagner, 2011).By providing new and unique contributions of new goods and services, businesspersons breakaway from tradition and indirectly support independence by reducing dependence on out-datedsystems and technologies. This leads to better life quality and the economic freedom to thesociety. Innovation at the same time help the business to have competitive advantage and servethe market with new and innovative product offerings that makes the life of the people very easy.As far as the comparison between the benefits of entrepreneurship and innovation is considered,it has been analysed that most of its benefits are very much related because innovation is termedas the sub set of entrepreneurship (Doganova & Eyquem-Renault, 2009). Without innovation,entrepreneur cannot perform its functions effectively. Innovation is the base of every newbusiness that enters the industry and it is the basic element that is required to attain thecompetitive advantage in the market. Innovation is about applying the creativity that leads to thedevelopment of new ideas and processes and entrepreneurship is applying the innovation in orderto make it practical and meaningful so that those ideas can get the life. It is very important to learn about the relation between entrepreneurship and innovation. It hasbeen analysed that both these terms are used at each other’s place by the people who are not clearwith the differentiation between the two terms(Anokhin & Schulze, 2009). As far as innovationis concerned, it has been analysed that it is related to invention of the product and the process
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