Importance of Innovation and Enterprise in Business and Start-ups

This article discusses the importance of innovation and enterprise in businesses, start-ups and established organizations. It covers the reasons why innovation and enterprise are fundamental, innovative practices and idea generation theories, and factors that lead to success and failure of innovation. The subject matter is relevant to various courses related to business, entrepreneurship, and innovation.

PROJECT

TABLE OF CONTENTS
Reasons of innovation and enterprise being fundamental to business, start-ups and established
organisation.................................................................................................................................3
Innovative practices and idea generation theories......................................................................4
Factors that leads to success and failure of innovation...............................................................4
REFERENCES................................................................................................................................6

Reasons of innovation and enterprise being fundamental to business, start-ups and established
organisation
Businesses that are successful in exploiting new ideas are always able to improvise their
products and services in the market, developing better and efficient processes and accordingly
able to enhance their profitability and efficiency (Mazzarol and Reboud, 2020). All this can be
done through introducing innovative on a timely basis to scale up their operations as with the
help of innovation higher customer base can be gained and bigger market share can be grabbed.
Innovation always helps businesses to grow without considering the type and size of business.
Innovation is an application of individual's creativity to propose a unique idea for
resolving business problems or growing business. However, enterprise or entrepreneurship is the
application of innovation to capitalize on the new ideas by implementing it in the real business
scenario.
There are many reasons due to which innovation and enterprise are considered to be
fundamental for businesses, start-ups and established organization while dealing with highly
competitive environment in which they are surviving. Some of these reasons are as follows: Innovation leads to the development of enterprise and accordingly grows business:
When business grows there are higher profitability as those innovations that obtain the
desired success in the market leads to adding value to the business and accordingly
enhances profits (Rexhepi, 2020). Business needs to innovate time to time in order to
survive and sustain against its competitors in the market. Innovation allows to stay ahead of other players in the market: In the highly globalized
and changing market, the count of business competing in the market are ever-increasing.
With the help of innovative thinking, there can be a well prediction that can be initiated
for the future market and customer's changing needs in order to meet these needs and
future requirements of the market. If business will not innovate, then the ideas will be
brought up by other players in the marketplace which leads to failure of the business
which will not innovate from time to time.
 Innovation is helpful in taking benefits of new technologies: In the era of rapidly
changing and developing technological environment, there are many technologies which
are new and more efficient for making products in a better way, offering services,
marketing products and tracking performance. Accordingly, such technical innovation

based on new and efficient processes allows for optimizing business and gaining
competitive advantage for both start-ups and established organization against their
respective competitors in the market.
Innovative practices and idea generation theories
Building an innovative culture: This theory focuses on how business can develop a culture
which leads to encouragement of innovative behaviour instead of restraining it. Culture is
somewhat considered to be personal which differs among industries, companies and regions
(Anning-Dorson, 2021). It is up to the management of the company to look within its internal
environment to identify whether its processes, people and leaders are acting as an innovation
enablers or bottlenecks.
It is up to the management of the company to look frequently for determining how innovative
culture can be build in right way.
Open innovation, crowdsourcing and idea management: These are the processes through which
a challenge can be set by companies for which they want to develop ideas for resolving both
internal and external environmental problems. There are many start-ups in modern time who are
offering software solutions to companies for setting up innovative challenges which provides for
platform where people can submit their ideas and also facilitates management and evaluation of
ideas in a structured way.
For example: P&G has a platform known as Connect and Develop which helps in obtaining
suggestions from consumers and external parties for improvements in existing products or
developing entirely new product. This process is known as Open innovation or Idea management
or Crowdsourcing.
Factors that leads to success and failure of innovation
 Leadership support is one of the factor which allows for innovation encouragement by
taking some risks in order to strengthen the probability of innovational success. Some
sort of trial and error must be provided for as it is not necessary that all efforts towards
innovation leads to success (Sinclair and et.al., 2018).
Blockbuster a video game company failed due to lack of leadership support in taking innovative
step towards obtaining offer of Netflix in buying it and accordingly, failed due to not digitalizing
itself to keep up with the market needs.

 Training: To ensure utilization of innovative technologies and stimulation of further
technological expansion, training is at its core. New opportunities for training may be
realized with the infusion of new talent who bring with them new perspectives for
tackling business problems.
With the help of training, Apple is able to bring new product (I phone) in the market by
exploiting new technologies with the help of which it is able to create new demand.

REFERENCES
Books and Journals
Sinclair, S., and et.al., 2018. Social innovation, social enterprise, and local public services:
Undertaking transformation?. Social Policy & Administration, 52(7), pp.1317-1331.
Anning-Dorson, T., 2021. The level matters: building capabilities for innovation and enterprise
performance through customer involvement. European Journal of Innovation
Management.
Rexhepi, G., 2020. Role of open innovation in enterprise growth. In The Future Opportunities
and Challenges of Business in Digital Era 4.0 (pp. 1-6). Routledge.
Mazzarol, T. and Reboud, S., 2020. Work Book: Social Innovation and Enterprise. In Workbook
for Entrepreneurship and Innovation (pp. 159-169). Springer, Singapore.