The Role of Innovation and Entrepreneurship in Business

This essay evaluates the role of innovation and entrepreneurship in business and their positive and negative impact at a broader context.

Running head: INNOVATION AND ENTREPRENEURSHIP
INNOVATION AND ENTREPRENEURSHIP
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Introduction
The world is progressing towards entrepreneur economy and creating new consumers
which are positioned in the centre of this activity. New businesses and companies are developing
with incredible speed. Innovation is the processes of collecting of collecting any type of new and
useful ideas and further to transmit them to the market at a rapid pace and further to implement
them to the organization to generate cheaper and improved products or acquiring more effective
customer support. Several nations primarily attach immense significance to the vigilance of
entrepreneurs in order to acquire knowledge and further to develop the ability to use the results
of innovation and new information (Sofronijević, Milićević & Ilić, 2014). The essay will
evaluate the role of innovation and entrepreneurship in business and their positive and negative
impact of entrepreneurship at a broader context.
Discussion
Innovation is regarded as the specific function of entrepreneurship whereby the
entrepreneur either creates new wealth-producing resources or further endows current resources
with improved potential for creating wealth. According to Noe et al. (2017), innovation has been
regarded as the criterion of entrepreneurship which emphasizes on executing things through new
approaches. However, according to Schumpeterian view on innovation, a manager is regarded as
an entrepreneur only when he has been making creative or innovative responses. Furthermore,
entrepreneurs tend to maintain interest as well as profit which emerge from a progressive
development and would not have its existence in static society. Rahdari, Sepasi and Moradi
(2016) have noted that change on the other hand has been identified as work of innovating
business entrepreneurs. As one change has the propensity to stimulate others, there can be
identified a certain level of tendency for innovations to cluster as well as generate long upswings

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in profit, revenue generation as well as business performance. Comprehensive studies of
Carayannis, Sindakis and Walter (2015) have stated that several countries attach substantial
importance on the way preparedness and vigilance of entrepreneurs in order to obtain
knowledge, awareness and ability to use the results of innovation as well as new information.
The UNICEF has been identified to establish an increased value on the expansion of SMEs in
advanced as well as in transition and budding market economies. Moreover, in its function, it has
been recognized that Government can and must assist in creating a facilitating environment for
SMEs so that they can be more easily dealt with the ever-escalating challenges. According to
Sheehan, Garavan and Carbery (2014), in market financial systems, the most crucial problems
for SMEs involve the transition to the culture of entrepreneurship, the acquisition of business and
management skills along with technical awareness of the product as well as service quality
demanded by several market driven economies. Drawing relevance to these evidences, authors
have noted that when these determinants have been positioned accurately along with an
encouraging as well as regulated economic setting, one can anticipate the level of sustainability
of SMEs. On the other hand, Dereli (2015) has noted that dominant method which entrepreneurs
implement in strategically obtaining knowledge as a function of the realities of the existence or
prerequisites which modern entrepreneurs pass through in life along with the level of their
intellectual or mental capability in addition to the level of educational as well as professional
attainments among others. Meanwhile, Sheehan, Garavan and Carbery (2014) have noted that
these factors tend to determine to a great extent the level of sophistication while attaining ideas
and insights. It is important to note that entrepreneurship and innovation are not occurring in
organizations as expected. Dereli (2015) in the study has found entrepreneurship and innovation
have been typically designed potentials and its management or entrepreneurs’ accountability to

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proficiently determine the suitable degree of entrepreneurship for individual units and for the
organization as a whole and further to design a setting which controls innovation and creativity
and further promotes entrepreneurial performance. Lozano (2014) has based the theoretical
framework regarding the role of entrepreneurship and innovation on the need for achievement
and the theory of private victory which have the tendency to complement each other. Firstly, it
has been noted that theory of need-for-achievement is recognized as motivational theory
signifying the need for achievement which implies the sense of performing and getting things
done which supports entrepreneurship (Carayannis, Sindakis & Walter, 2015). Herliana (2015)
has noted that as any organized business enterprise along with all unit of its represent groups of
individuals functioning together to attain goals, the explicit need for attainment tends to be
substantial relevance. On the other side, the second theory related to private sector, it demands
that an entrepreneur must gain practicality through their visionary objective along with obstinate
determination at the start-up of the business enterprise.
Rahdari, Sepasi and Moradi (2016) have supported the needs to have adaptive as well as
innovative creative individuals. Individuals in varied organizations who illustrate entrepreneurial
tendencies have great inclination to hold in comparison to those who fail to exhibit
entrepreneurial ability. Furthermore, Herliana (2015) in the study has found connections
creativity, innovation and entrepreneurship in the development of a product. Products in
organizations are typically shaped by tangible outcomes of creativity but tend to be leveraged by
the innovative process and imaginative capability of those involved in its production.
Nevertheless, according to Sofronijević, Milićević and Ilić (2014), paradigm shifts have its
occurrence infrequently and creativity can from time to time lead to the establishment of an

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individual with an insignificant level of prior connections with other spheres; for instance
through the utilization of new technologies with no market precedents.
Conclusion
Hence to conclude, the growing role of innovation in entrepreneurship development and
the way businesses can help to guarantee that innovation has been translated into newly
developed products as well as techniques which aid society to acquire global challenges of
modern businesses. In such stages, entrepreneurs must be more innovative and further establish
positively on the obtainable technological as well as information explosion in science technology
in addition to other disciplines for recurrent regeneration of the world especially the society as a
whole. As a consequence, Governments should shed light on the human capital development of
their individuals and in general universal humanity for satisfaction.

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References
Carayannis, E. G., Sindakis, S., & Walter, C. (2015). Business model innovation as lever of
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Dereli, D. D. (2015). Innovation management in global competition and competitive
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Herliana, S. (2015). Regional innovation cluster for small and medium enterprises (SME): A
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Lozano, R. (2014). Creativity and organizational learning as means to foster
sustainability. Sustainable development, 22(3), 205-216.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
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