Entrepreneurship and Innovation: Challenges, Skills, and Business Planning

This report covers the nature and challenges of different kinds of enterprise, entrepreneurial skills and attributes, methods for encouraging creativity in an organization, and a new business idea analysis in the healthcare sector. It also discusses how to develop a business plan for a new business and the financial techniques used for forecasting. The report is based on Desklib's study material.

Entrepreneurship and
Innovation

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1...............................................................................................................................................1
(1.1) Nature, characteristic and challenges of different kinds of enterprise ..........................1
(1.2) Entrepreneurial skills and attributes..............................................................................2
(1.3) What makes successful commercial or social entrepreneur........................................3
Task 2...............................................................................................................................................3
(2.1) Methods for encouraging creativity in organisation......................................................3
(2.2) Evaluate potential creative and management ideas.......................................................4
(2.3) How to lead others to positively embrace innovation....................................................4
Task 3...............................................................................................................................................5
(3.1) Analyse business ideas...................................................................................................5
(3.2) Evaluate production and marketing feasibility of new business ideas..........................5
(3.3) Produce business planning forecast using financial techniques....................................6
Task 4...............................................................................................................................................6
(4.1) Develop a business plan for new business.....................................................................6
(4.2) Develop a control and monetary mechanism for business plan ....................................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Entrepreneurship is an action or creativity to establish a business by taking risk in order
to generate profit. An entrepreneur is a person who has the ability to take risk for developing,
organising and running a business enterprise(Vedula and et.al., 2021). There are many well
known entrepreneurs who have started business by taking risk for example Bill gates, Steve jobs,
Mark Zuckerberg etc. thus, an entrepreneurship helps in creating the employment for the
individuals which enable in improving the living standard of the people. It brings innovation that
provide new products venture, market, technology and many more things and support the
research and development(Bruton, Sutter and Lenz, 2021). In this report, Freeman Hospital has
been taken into consideration which provides its health and social services across the city. The
hospital is well know for the services of cardiology and transplantation for adults. The report will
cover the nature and challenges of the enterprises and skills of the entrepreneur. It will discuss
the methods to encourage creativity in an organisation and a new business idea will be analysed.
Further it will discuss the business plan for new business and develop control and monetary
mechanism for it.
MAIN BODY
Task 1
(1.1) Nature, characteristic and challenges of different kinds of enterprise
Enterprise refers to an organisation that is run by an entrepreneur for making profit in
order to solve any articular problem or exploit any idea(Audretsch and Moog, 2022). It also helps
in filling a gap in the market or overcoming the competition prevailing in the market. There are
many types of enterprises which are outlined as under: Sole proprietorship
◦ Nature and characteristic: It is business structure owned and operated by an
individual and does not involve any partner(Chaika, 2021). It very flexible business
entity as the owner has complete control over the all aspects of the business. The
owner is able to take unrestrained decision for the growth of the business.
◦ Challenges: A sole proprietor have to face problem in obtaining finance for setting up
the business because a lending institutions do not provide loan to the start-ups
because of the risk therefore sole proprietor has to mortgage personal assets to raise
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working capital. The sole proprietors have unlimited liability as they have to pay
debts from their personal assets. Partnership
Nature: This is a form of business where two or more parties are involve in this ownership of
business through agreement to mange function for income generation. They share responsibility
and profits according to the agreement(Li and et.al., 2021). This can be form easily as they can
easily reach to the resources that contributes to the capital and setting up of a
business(Madanaguli and et.al.,2021). Each partner has mutual consent for contribution in a
business to fulfil the motive of the business.
◦ Characteristics: The profit and losses that are generated from the business are
divided according to the agreement made. The is mutual agency in this partnership
because business can be undertaken by all partners or nay one can act on behalf of all
partners. The registration is voluntary in this partnership and can transfer the interest
to nay external party.
◦ Challenges: The liability of the partners is unlimited because they have pay their
debt from their personal assets. There is also risk of disagreement between the
partners and instability can be arisen.
(1.2) Entrepreneurial skills and attributes
The skills and attributes of the entrepreneur are described as under:
 Self Awareness: Being an entrepreneur one should be aware about the self skills, the
strengths and weaknesses that an individual have and find opportunity to use those
strength for the growth of the business(Gatto and Drago, 2021). Good entrepreneurs are
able to recognise the skill of other individual in the particular segment so that authority
can be delegated to them.
 Innovative: An entrepreneur is an innovative person who brings unique idea for the
establishment of the business sob that it can provide the product and services to the
customers art the lower process to overcome competition.
 Have a clear vision: An entrepreneur provides clear vision for achieving the goals of the
business and have the ability to inspire towards getting the goals so that business can be
grown successfully(Liu, Kulturel-Konak and Konak, 2021). An entrepreneur is able to
lead the people in order to get things systematically.
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 Communication skills: An entrepreneur has good communication skills and able to
speak about the business in such way that motivates others and differentiate the business
from the competitors. A presentation can be given easily for the business through the
websites and social media.
 Adaptability: An entrepreneur has to adapt changes to remain in the competition
therefore, an environmental analysis can be made to know the competition prevailing in
the industry.
(1.3) What makes successful commercial or social entrepreneur
A social entrepreneur brings innovative business ideas considering the serious societal
problems that have not thought by any other organisation. This type of entrepreneurship enable
the entrepreneur to link the social mission with the business of discipline, innovation and
determination. The commercial entrepreneurs create opportunity for the economic development
because it brings innovative product that benefit the society and also create the employment for
people which assist in improving the living standard.
Task 2
(2.1) Methods for encouraging creativity in organisation
There are various methods that are adopted by an organisation in order to encourage the
creativity at the workplace are described as under:
 Set stage for brainstorming: An organisation must provide the opportunity to the
employees for brainstorming so this will help the business to reap towards the rewards.
This will encourage the employee to share their innovative ideas with the organisation
which lead to the success.
 Provide opportunity to share ideas: There are may talented and skilled individuals who
are available in the organisation. Therefore, the company should encourage the
employees to share their knowledge to develop the new business idea in order to grow the
business(Ojong, Simba and Dana, 2021). They should be provided special classes and
session for the team members to develop new interest and passions.
 Support employees in creative risk taking: A business concern should cultivate the
culture of the creative risk taking that inspire the employees to think out of the box and
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provide different solutions to the problems. It should also made clear to the employees
that they value creativity and understand the importance of the new ideas.
 Facilitates anonymous suggestions: An organisation facilitates the employees to
provide their anonymous suggestion which encourage them to come forward with
creativity and speak with free mind(Zucchella, 2021).
(2.2) Evaluate potential creative and management ideas
An organisation can evaluate the potential creative and management ideas by selecting
the most innovative idea that can help the business in growing. Then, the criteria is decided in
order to score the ideas that are provided to the business. The idea is aligned with the goals of the
business for the success of the organization. Then the criteria is rated and and score is give to
each idea then the weighted score of the ideas are calculated to find out the best idea by
comparing the scores.
(2.3) How to lead others to positively embrace innovation
An organisation can adopt many ways to lead other individuals so as to innovation can be
embraced by them positively. The ways are depicted as under:
 Create an innovative team: An organisation can lead other by creating team make them
responsible to implement change and encourage them to move fast and accomplish more.
A room can be created for the team members so that they can meet and share their
knowledge with each other.
 Decide what areas are needed to be improved: An organisation should listen to the
staff in order to analyse the areas that are needed to be improved(Adwiyah, and
et.al.,2021). Therefore, it should inspire the employees to provide better insight for the
society after making research.
 Brainstorming solution: An organisation should encourage the employees for
brainstorming so that they are able to generate new ideas and provide different solution to
the problems. The team feel motivated when their ideas are valued by the organisation.
 Work together: The employees must be divided in a team so they they can perform
better work with the help of each other. They are also able to learn from each other and
this collaboration help in achieving the goals of the business and the competition
advantage as well.
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 Engage with the technology partners: An organisation can explore the high tech
innovation by engaging with the technology partners. This help the company in getting
the cost effective solution to meet the needs of the people.
Task 3
(3.1) Analyse business ideas
The business idea that has been analysed in the health and social care sector is
“Development Of The Healthcare Mobile Apps”. This idea will develop opportunity for the
people to make virtual consult with the specialist and get online delivery of the drugs or
medicines. In context to the Freeman Hospital, an organisation can get the more customers
through this mobile application and is also able to provide consultancy to the remote areas. They
can encourage a healthy lifestyle with the increased medication reconciliation accuracy which
assist in improving the safety of the patient(Márquez, 2022). The app will support to the doctors
and the medical staff and the remote patient as well. The health care mobile app help the
organisation in enhancing the communication and feedback of their services provided to the
patients. The application provide benefit to the society that they can get the the right diagnoses
with the help of this application.
(3.2) Evaluate production and marketing feasibility of new business ideas.
An organisation and the society both get the benefits of the healthcare mobile apps for
which the market feasibility has been discussed below in relation to the Freeman Hospital:
 Potential members interested: An organisation need to hold the meeting with the
management in order to introduce the business idea with them. As regard with the
Freeman Hospital, it can discuss the idea of development of healthcare mobile app with
their team by defining their benefits and services offered to the society such as delivery
of the medicines and provide consultancy to the remote areas.
 Research target market: An organisation research the target market to which it provides
its services via mobile applicationv(Rose, 2021). In relation to the Freeman Hospital, the
target market of the organisation includes the whole society to which it provides services
of consultancy related to the heart, liver, kidney disease digital hearing aid and so on.
 Competitors: There are various competitors in the healthcare organisation which provide
services at minimum cost in order to gain the competitive advantage by providing
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satisfaction to the customers. Inn context to the Freeman Hospital, there are many
competitor such as MsAlestyer regional health centre Sparrow health system, Bellin
health system, Ridgeview and many more which provide higher competition by providing
their effective services to the patients.
 Access technical feasibility: The services that are provided through the mobile
application include the calorie calculator which help the patient tracking the calorie
intake, consultancy option with the respective specialist, medicine or drug delivery option
and many more(Alabdullah, 2022). This will help the organisation in hiring the
employees, requirement for the equipments and so on in accordance with the capital of
the company.
 Track financial feasibility: This is the most essential component of the feasibility
because it will provide the total estimation of the budget that are required to launch for
the health care mobile application. It includes the all startups cost, Cash flow, and
operating expenses.
 Risk assessment plan: With reference to the Freeman Hospital, it will make risk
assessment in order to identify the risk that an organisation may face during the course of
the business. Thus it find out the solutions in order to prevent such risk.
(3.3) Produce business planning forecast using financial techniques.
An organisation can use financial techniques to predict future revenues, expenses and cash
flows of the business. The company can use the qualitative and quantitative methods for financial
forecast so that it can aware with the future financial needs. Qualitative method are used to
develop the knowledge from experience. This provides opinion and data to make the projection
of the business.
Task 4
(4.1) Develop a business plan for new business
An organisation can develop a business plan by considering the following points which are
depicted as under:
Executive summary: Freeman Hospital is going to develop healthcare mobile apps so that it can
provide service to the remote patient and get the medicine at their doorsteps(Pavlatos, 2021). The
organisation will be able to increase their market share and the profitability.
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Vision: The vision of the Freeman Hospital is to provide their best consultancy services to the
society and people who reside in remote areas.
Mission: The mission of Freeman Hospital is to enhance the customer’s base by providing the
patient effective services to increase their experience.
Strategy: Freeman Hospital has adopted the strategy of the product development as the company
is launching the new application in the market so that people can avail service online.
Marketing Mix: marketing mix help the business in knowing the business plan through the
 Product: Freeman Hospital is launching the new application so that patients are able to
get service online from the respective specialist and get deliver at their door step.
 Price: Freeman Hospital will provide premium service to the customers for which it will
charge extra prices.
 Place: The application of the company can be available online through the app store
which can be downloaded by people.
 Promotion: The company can use online mode to promote their products such as
Facebook, Instagram and other advertisement.
Competitor’s analysis: Freeman Hospital can make the competitor analysis in order to know the
competition prevailing in the market and reach out to the effective marketing strategies.
Evaluation: The company can use the Key performance indicators in order to analyse the
presentation by comparing the actual performance with the set benchmark.
(4.2) Develop a control and monetary mechanism for business plan
An organisation can develop the control and monetary mechanism for the business plan
so that it can keep the employees and members on the right path. These mechanism help the
employees in taking the corrective action in order to solve the problems. There are many aspects
of the business that are needed to be controlled and measures in accordance with the market
condition. In relation to the Freeman Hospital, the mechanism that can be used by the
organisation for control includes the human resource that are required to perform the function of
the business. Economic resources to improver the financial condition of the business with the
help of scheduling. An organization also use the operational procedures and goal setting for
controlling the all activities(Zia, Abbas, and Arshed, 2021). The training also provided to the
employees when they lack in performing the work so that they can be encourage to be more
productive and improve their skills and knowledge with the help of training and development
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program. An organisation will make promotions of their services that they provide to the patients
a so that the people are aware regarding the services of the hospitals and are encourage to take
advantage of their services. A business concern also provide the monetary incentive in order top
motivate its employees so that they can provide their bets service to the organisation and make
their performance appraisal and provide them reward and recognition so that the employees get
motivated and engage with the organisation. Therefore, the control that can be applied by an
organisation are as under:
 Feed forward control: This is a preliminary control that are places by the concern before
occurring any activity which is considered as preventative measure. This help the
organisation to place the right thing in the right direction or order. This will help the
company to perform their work in an effective way.
 Concurrent control: Freeman Hospital can apply this control during the operations of
the functions and make adjustment according to the requirements. This helps the
organisation to solve the issues that arise while performing the task. Thus, it allow the
manger to make change in the process and take necessary steps to back on the track.
 Feedback control: An organisation can adopt such control after it has finished the
operations and take necessary steps when the problems occur after performing the task.
This help the organization to look into the decision and make adjustment and take better
decisions.
CONCLUSION
From the above discussion it has been concluded that entrepreneurship provides an
effective way for developing the innovative business idea. It assists in providing the job
opportunities for the people which help them in improving the living standard. This also help in
increasing the national income by creating the new business importunities and new market.
Entrepreneurship help in facing the competition and assist in overcoming it by providing various
solution to the problems. The report has discussed about the enterprises such as sole
proprietorship, partnership with the characteristics and challenges. Further, it has explained the
skills and attributes of the entrepreneur and methods of encouraging the creativity. The report
also discuss the potential creative and innovation management ideas and they way to lead other
so that they embrace motivation. Moreover, the report has discussed the new business ideas
which is development of the healthcare mobile app with the feasibility of the new business idea.
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Further, it demonstrated the business plan with the control and monitoring mechanism for the
business plan.
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REFERENCES
Books and Journals
Vedula and et.al., 2021. Entrepreneurship for the Public Good: A Review, Critique, and Path
Forward for Social and Environmental Entrepreneurship Research. Academy of
Management Annals, (ja).
Bruton, G., Sutter, C. and Lenz, A.K., 2021. Economic inequality–Is entrepreneurship the cause
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Business Venturing, 36(3), p.106095.
Audretsch, D.B. and Moog, P., 2022. Democracy and entrepreneurship. Entrepreneurship Theory
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Chaika, N., 2021. Formation of Development Strategy for Industrial Enterprise. Quality-Access
to Success, 22(180).
Li and et.al., 2021. Do environmental regulations hamper small enterprises' market entry?
Evidence from China. Business Strategy and the Environment, 30(1), pp.252-266.
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literature review of past achievements and future promises. International Journal of
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Ojong, N., Simba, A. and Dana, L.P., 2021. Female entrepreneurship in Africa: A review, trends,
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Zucchella, A., 2021. International entrepreneurship and the internationalization phenomenon:
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Márquez, R.F., 2022. Business plan: Step (Doctoral dissertation).
Rose, M.E., 2021. Writing A Business Plan For A Small Business.
Alabdullah, T.T.Y., 2022. Management accounting insight via a new perspective on risk
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Pavlatos, O., 2021. Drivers of management control systems in tourism start-ups
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Zia, M.A., Abbas, R.Z. and Arshed, N., 2021. Money laundering and terror financing: issues and
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