Innovation and Entrepreneurship: Skills, Models, and Importance

This report discusses the skills that lead to recognition of entrepreneurial opportunities and ways to utilize them using several models. It also talks about the importance of innovation and entrepreneurship for the growth, development, and competitive performance of a business.

Innovation and
Entrepreneurship
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CONTENTS
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Task 1. Critically evaluate skills that leads entrepreneurial opportunity.....................................3
Task 2 Importance of innovation and entrepreneurship for organisational growth, development
and competitive performance......................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
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INTRODUCTION
Entrepreneur refers to an individual who take up action in order to bring changes within the
world by setting up a new venture. The entrepreneurship plays a significant role toward the
growth and development of country as it starts with bring a new idea either to resolve a social
issue or to further develop the society (Chatterji, Glaeser and Kerr, 2014). The current study is
based on a successful entrepreneur named as Peter Johns, owing a portfolio of businesses that
belongs from publishing to telecom. This report discusses about the skills that leads to
recognition of entrepreneurial opportunities and ways to utilise them using several models.
Additionally, it also talks about the importance of innovation and entrepreneurship toward the
growth, development and competitive performance of business.
MAIN BODY
Task 1. Critically evaluate skills that leads entrepreneurial opportunity
Entrepreneurship refers to a practice where entrepreneur search for new ideas in order to
bring changes within the society for resolving issues present, there by determining the
opportunity and converting it into creative solution. But for bringing this change it is crucial for
an entrepreneur to determine the entrepreneurial opportunity available in market so that they can
understand it effectively to perform action toward exploiting that opportunity for the fullest.
Hence, for defining entrepreneurial opportunity, an entrepreneur must have certain skills such as,
Strategic thinking: - Try to decompose a particular problem present up to its core and
then revealing the opportunity for growth, determining the creative solution and defining scope
all are the practices that an entrepreneur must perform in order to determine entrepreneurial
opportunities available (Chen, 2018). This skill of strategic thinking about assessing the problem
in a manner that it results into a creative solution consider to be a biggest approach toward
assessing and exploiting the entrepreneurial supporting in right manner. But when a entrepreneur
get idea regarding opportunity using strategic thinking skill without effectively evaluating it may
bring loss or failure to business as it totally depend on the way one resolve a issue with new idea.
The biggest example for this is Peter Johns who is successful entrepreneur and operates range of
business unit due to his strategic thinking skills which allow him to develop new ideas and
explore the opportunity by setting up business.
Developing network: - An entrepreneur must have the capability to develop networks as
growing a network help them in identifying the opportunity and grabbing them much effectively.
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But the negative side of this is that too much relaying over networks sometimes distract an
entrepreneur to remain focuses over their work that may affect its business growth (Galindo and
Méndez, 2014). The Peter Johns is a person who maintains a huge network by investing in
several business or maintain relations which is a reason behind his success as he knows how to
utilise those networks for defining and grabbing the entrepreneurial opportunity. Despite of these
skills there are certain models or theories that can be adopted by an entrepreneur for identifying
eth opportunities available in market, such as
Opportunity recognition model: According to this model, an entrepreneur become
successful only and be able to exploit the available opportunity when they have a prior
knowledge of market in which they are planning to operate and technology required for the
operations or production. Hence, before getting into a market an entrepreneur must firstly gather
the knowledge and understanding about that market so entrepreneurial opportunity can be
identified and exploit much effectively toward the success of business venture based on
knowledge and experience of entrepreneur (Maritz and Donovan, 2015). This can be better
understood with the success story of Peter Johns who worked over one after another business
that are not much interrelated but provide a pathway and understanding about one another which
become a factor for his success.
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Design making: As per this theory an entrepreneur must have the capability of
generating several alternative ideas regarding solving of a particular issue, so that by combining
and contrasting these ideas and factor an appropriate strategy can be designed which guide them
over a pathway to be adopt for working over the opportunity effectively. This theory put its
emphases toward thoroughly studying the entrepreneurial opportunity present and then
generating ideas from them to choose an effective action plan (Roberts, Murray and Kim, 2019).
This theory is very much connected with the business operating pattern of Peter John who
perform a huge market research before opting for a idea after critically evaluating it and
designing an appropriate strategy that leads to market success. For example, his continuous
brining innovation over the content within its publishing that always stole the attention of
audience and helps in keeping the customer bind with company for long.
Revenue model innovation: - This model is considered to be a very much effective
framework for an entrepreneur as it focuses toward guiding the entrepreneur about how a
company must sell its product that it become able to generate revenue. The revenue model act as
a blueprint regarding the actions to be taken which remains equally important for business as it
provide a idea regarding action to be taken for maintain feasibility of project for long term
period. The Peter John uses this model in order to direct their formulated strategy about
entrepreneurial opportunity in such a manner that it get adopted by market and support in
generating revenue by bringing changes in the unproductive factor of the business.
Task 2 Importance of innovation and entrepreneurship for organisational growth, development
and competitive performance
Innovation is very much linked with the entrepreneurship practices as this is a factor which
take up a business to new height and help entrepreneur to differentiate them from other ordinary
businesses. An entrepreneur is a person who must regular try to find out the new or innovative
ways to work in order to offer its target customers or market with a service that can resolve their
issues. In order to bring innovation in business effectively an entrepreneur can make use of a
framework named as ‘Innovation Funnel’. This framework focuses constantly streaming the
ideas that can be assess and scree for the viability so that future feasibility can be identified
(Karlsson and Warda, 2014). The core of innovation funnel is toward generating huge number of
ideas and a large portion of it get refined with an aim to convert it into development plan. This
develops a funnel like shape where a lot of ideas are being enlisted and then through a large
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portion of discussion and analysis it get converted into few ideas over which the entrepreneur
works. This help in keeping the best idea that can take a business toward a path of success. The
innovation funnel is excellent tool which support an entrepreneur that the best idea gets
identified and processed toward the development so that an innovation can be launched into
marketplace that further results toward the growth and success of a venture.
Hence it can be said that innovation and entrepreneurship plays a significant role toward
enhancing the business practice and performance which further contribute toward organisational
growth, development and also support in achieving competitive edge at marketplace. A greater
example of innovation in entrepreneurship can be seen in the Bladez Toyz plc a company owned
by a successful entrepreneur Peter Johns (Singh and Gaur, 2018). It is a brand which is
specialised in developing, designing, manufacturing and distribution of cool as well as
innovative toys. The Peter Johns maintain a team of highly professional designers and developer
of toys who brings up range of ideas to him which are then analysed and measured over success
criteria and then best among them get selected to work over it. This is one of the most effective
strategy or process of innovation that Bladez Toyz adopted which support them in getting
successful at international market.
Despite of all this, the competitive performance can be achieved by a business by
improving the internal practices and linking it with the external opportunity. The Bladez Toyz
focuses toward continuously improving its internal practices as well as role performed by people
within eth organisation to improve their working practices or productivity so that best product
can be achieved in order to market in such a manner that it be able to fulfil the market
expectation to fullest (Singh and Gaur, 2018). Therefore, it can be said that innovation is
consider to be a life for entrepreneurial business which always keep them guide over new ideas
to adopt for organisational growth and development so that best performance can be Exeter that
help in achieving combative edge.
CONCLUSION
From the above mentioned information, it can be said that innervational practices plays a
significant role within the success of an entrepreneurship business. This is so because it work
toward providing an idea regarding the entrepreneurial opportunity present market that can be
grab with the help of brining innovation practices within the business. There are number of
models or theories that can be used by an entrepreneur for determining the invocational
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opportunity present and ways to adopt them. This mainly includes Opportunity recognition
model, Design making theory and Revenue model innovation which support in improving the
organisational practice toward its success.
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REFERENCES
Books & Journals
Chatterji, A., Glaeser, E. and Kerr, W., 2014. Clusters of entrepreneurship and
innovation. Innovation policy and the economy, 14(1), pp.129-166.
Chen, Y., 2018. Blockchain tokens and the potential democratization of entrepreneurship and
innovation. Business Horizons, 61(4), pp.567-575.
Galindo, M.Á. and Méndez, M.T., 2014. Entrepreneurship, economic growth, and innovation:
Are feedback effects at work?. Journal of business research, 67(5), pp.825-829.
Karlsson, C. and Warda, P., 2014. Entrepreneurship and innovation networks. Small Business
Economics, 43(2), pp.393-398.
Maritz, A. and Donovan, J., 2015. Entrepreneurship and innovation. Education+ Training.
Roberts, E.B., Murray, F. and Kim, J.D., 2019. Entrepreneurship and Innovation at MIT:
Continuing global growth and impact. Edward B. Roberts, Fiona Murray and J. Daniel
Kim (2019),“Entrepreneurship and Innovation at MIT: Continuing Global Growth and
Impact—An Updated Report”, Foundations and Trends in Entrepreneurship, 15(1),
pp.1-55.
Singh, S.K. and Gaur, S.S., 2018. Entrepreneurship and innovation management in emerging
economies. Management Decision.
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