Innovation and Entrepreneurship: The Success Story of Elon Musk

This report discusses the personality qualities of Elon Musk that made him a successful entrepreneur and explores the challenges he faced in his ventures. It also examines his performance in projects like Tesla, PayPal, and Hyperloop.

Innovation and
Entrepreneurship

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Personality qualities of Elon Musk and its importance that made him a great or successful
entrepreneur.................................................................................................................................3
TASK 2 ........................................................................................................................................5
Entrepreneurial challenges, impact and its overcomes in case of Elon Mask’s SpaceX venture.
.....................................................................................................................................................5
Task 3...............................................................................................................................................7
Performance of Elon Musk on its entrepreneurship project like Tesla, paypal, hyperloop........7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation is modern equipment that is used by the effective entrepreneur. Entrepreneur
introduce innovation to exploit business opportunities in several areas. Entrepreneur bri9ngs
innovation in its business process to compete with its competitors. It helps in maintaining strong
brand and enhance potential consumer. The creative and innovative idea aids in introducing best
featured product and services. The combination of innovation and entrepreneurship facilitate
creative value to the business solution. Innovation is the combination of cooperation, idea and
execution of value creation in the company. Entrepreneur can not be successful without any
invention of innovative idea. Entrepreneur deliver innovative solution to the several problems of
society and economy. In this report Elon Musk is the chosen entrepreneur. He is one of the
innovative entrepreneur who established different types of company. The report aims towards
key personal qualities that made him successful entrepreneur. This report discuss about
challenges and their response towards challenges during his venture. It also investigate
entrepreneur performance in its several projects such as Tesla, Paypal, Hyperloop.
TASK 1
Personality qualities of Elon Musk and its importance that made him a great or successful
entrepreneur.
Elon musk established several companies and innovative start-up such as Tesla, Space X,
Hyperloop etc. The entrepreneur is famous for introducing transformational innovative change
around the globe. The Elon Musk mutual shared creative values in the economy like spirit of
entrepreneur, ready for innovative change, positive attitude, appropriate vision and passionate
leadership (benov and et.al., 2019). The entrepreneur has capability to introduce innovative
solution for the development of company expansion. It believe that failure of innovative idea
provides several opportunities to learn. The journey of failure will brings path of success for the
entrepreneur. The main personal features and qualities who made him great are as follows:
 Innovation- The Elon Musk believes in introducing innovative business solution to the
economy around the world. In the journey of innovation, it introduce first electric car
with creative attribute (Brush and et.al., 2019). This car is build by one of its successful
company Tesla. After this innovation the journey of creativity begins. They also develop
self made commercial car, electric vehicle, equipments of charging stations. The first

spaceships rocket was introduced by his innovative project company SpaceX. Several
innovative project introduced by entrepreneur is Solar City. It personally believe in the
exploitation of innovative opportunities in its business expansion (Dai, Byun, and Ding,
2019). It also deliver attitude of aggressive nature that is essential in resolving business
hindrance. Innovation and creativity is inbuilt in personality trait of entrepreneur in its
various start ups.
 Vision and Synergy- The entrepreneur share clear set of vision and synergy in its several
start up projects and company. The entrepreneur deliver and share synergy vision in his
three company unit. It combines ground and air industry all together to built two diferent
companies in future with synergetic effect, like SpaceX and Tesla. Both entity exploit
advantage of technology. It facilitate cost reduction and take advantage of cars and
spaceship industry. It introduce aerial and terrestrial in the form of source energy. The
most adoptable and favourable source is solar energy. It combines all vision of ecosystem
such as rocket, solar and electric car. Elon Musk aims towards non dependence of his
inter related company (Foss and Grandori, 2020). With the help of this one company does
not influence the operations of other inter related company. All the combination of his
organisation deliver synergy and vision around the globe. Entrepreneur has capability to
handle clear set vision and synergy in its all business unit.
 Advantages of legislation- Elon Musk has capabilities to exploit advantage of
legislation. It combines of government regulations and laws that are imposed for the
country benefit. The effective entrepreneur always in the search of exploiting and take
advantage of loopholes. Sometimes loopholes inherent in the government legislation. The
entrepreneur grab advantage of tax regime in various projects which leads towards
decreasing in it cost. Elon Musk has an ability to enhance its market position of company.
It maintain healthy relation with government system and practice all the laws to create
brand image.
Because of these three personal qualities, Elon Musk become one of the leading
successful innovative entrepreneur. In his innovative journey, entrepreneur faces lots of failure
and challenges and over come by exercise his personal qualities. It follow theory of Schumpeter
for introducing innovation in its start ups. Most of the entrepreneur execute this theory for
innovative ideas. According to this theory entrepreneur brings innovation for the economic

development. Entrepreneur execute managerial activity along with development of new concept.
The concept of innovation is involved in several business process such as organising, identifying
new opportunity, production, expansion of new market. The great entrepreneur Elon Musk
execute this theory in its start up companies (Guo and et.al., 2019). It facilitate innovative change
and economic development in the industry. By implementation of these practices
transformational change occurs in the society.
TASK 2
Entrepreneurial challenges, impact and its overcomes in case of Elon Mask’s SpaceX
venture.
Elon Musk has various personal ability like risk bearing, passion, innovative spirit,
determination. It has to look after lost of hurdles and challenges during his journey. Entrepreneur
can not avoid challenges. They have to handle lots of hurdles to convert these challenges into his
success. The start up company spaceX has to manage lots of hurdles to prove feasibility of idea
that is launching private rocket drone ship. Elon Musk has to manage all hurdles during this start
up. It failed in the invention of this commercial private rocket drone ship and try hard to
overcome these hurdles from his learnings (João, and Silva, 2020). It assumes and believe
challenges are the source of learning and deliver creative solution to many operational or
management hurdles.
Lack of appropriate skills or knowledge- Elon Musk has lack of appropriate skills set
and knowledge about this SpaceX project. For successful implications of start up required
appropriate skill set knowledge only clear vision is not sufficient. Proper direction and guidance
is necessary for any start up business. It does not has sufficient required knowledge of
introducing private rocket space industry. It fail to recognise all the elements that was important
for execution of its operations. They forget to use any safety system that all other space industry
use in its project. They must have to check feasibility before introducing this project. It does not
have any practical experience of rocket space industry.
Lack of financial financial backing- The entrepreneur has need of proper financial
backing for introduce any rocket in the space. But they invent this start up on its own as this was
a private rocket and satellites. They utilise its own funding that occurs most challenges for the
company and entrepreneur. They fail to use government financial support as they totally depend

on own funding. This will leads towards no exemption in tax regime and this start up turn around
a failure innovative concept.
Technology up-gradation- This start up acquire upgraded technology but entrepreneur
fail to use upgraded technology. They introduce low level of technology in its rocket spaceship
and satellite, that degrade the level of efficiency. Because of this start up gets failure as it deliver
low productivity (Milligan, 2019). It fail to utilise appropriate financial support in upgrading
technology. They utilise reusable parts of rockets that are not that much effective. It increase
cost of entity and degrade the productive level.
Risk taking- Risk taking is one of his capabilities that introduced in all start up. Elon
Musk involve concept of innovation in each and every start up company. Risk taking deliver
high level of profitability but can also bring huge losses in the enterprise. Risk bearing is not
sufficient for successful implementation of plan. Their must be appropriate direction is required
for the survival of start up company. Entrepreneur must analyse feasibility of private rocket
spaceship.
Elon Musk can defeat or overcome these challenges following ways.
 Entrepreneur can execute its start up project by gaining suitable skill set and knowledge.
This will enhance the level of efficiency in the satellite or rocket spaceship. They can
modify its project direction by analysing regular up gradation. Feasible analysis provide
clear visibility in the operations of this project. Entrepreneur can identify whether start up
can survival in long run or not. With the aids of this entrepreneur can eliminate the
chance of start up failure (Liu, Qianand Haynes, 2020). Structured vision and mission is
best for any project but it is also important to have suitable knowledge of business idea.
 They should use government financial support while execution of its start up project, only
company funding is not sufficient. Along with financial support it facilitates several
benefits like tax regime. Hence entrepreneur must think about of exploiting government
funding along with own funding.
 Entrepreneur must think about advanced technology while introducing any start up
project. Elon Musk is using re usable part of rockets which decrement efficiency and
fruitfulness of start up. It is most important hurdles that need to improvised for survival
of company.

 The entrepreneur have to check feasibility before implementation of any risk in the start
up. This will leads towards the success of start up along with its strategy formulation.
They have to strategies direction in accomplishment of long and short term goal of
company.
One of the famous ability of Elon Musk is that not to disappointed with failures and faces
all the challenges through self motivated (Molina-Sánchez and García, , 2020). The entrepreneur
always bear risk and try to achieve its futuristic vision in his all start up company. That is why he
one of the successful innovative entrepreneur in the industry.
Task 3
Performance of Elon Musk on its entrepreneurship project like Tesla, paypal, hyperloop.
Performance in Tesla- In the situation of COVID-19 pandemic, most of the business
faces shut down position around the world. The entrepreneur found this as an opportunity and
take advantage of this situation. At that time this company earn high profit and net worth goes
up. It gain maximum wealth stock and improves his position in the enterprise. Elon Musk raise
the share of Tesla at 20% they execute compensation system and successfully gain stock
packages. Tesla improve its share market position in the industry as they are in profitability
situation. Elon Musk go wrong in the framework of compensation system. This is the major
reason that company faces degradable performance in industry position. At that span of time
Tesla face lots of challenges in accomplishment of its objective. It mainly follow the structure of
risk bearing. That is why entrepreneur launched compensation plan to accomplished long term
plan of company. To lead in business industry, it perform crushy structure in the business
process of Tesla. It mainly influence high profile segment in Vehicles. They brings innovative
change in automotive industry (Naik, 2017). It is one of his strategy to transform Hydrocarbon
into solar energy. To bring creative solution, it adopt several production target. It efficiently gain
advantage of market situation and gain revenue. Tesla mission is to intensify transformation in
sustainable form of energy. The entrepreneur introduces high quality of creative model of cars
and crate unique position in the industry. It invented different form of energy storage commodity
that attract new consumer base. After that Tesla become first leading sustainable company in
respect of solar city. Company launches several model of cars like sedan or suv, these cars now
most preferable by every segment of costumer. It also introduce traditional truck like Cyber

truck with better facility. Company continuously improving performance in sport car segment
and deliver productive quality to costumer. They create unique position in consumer mind as
well as in competitive market.
They utilised advanced technology to empower industry. Through this strategy it
develop creative commodities to build brand image. Tesla faced lots of challenges because of
innovative concept in operating management activity. Company accomplished high position in
competitive market. It deliver numerous advantage in economy like non dependance4 of
dealership, creative commodities, safety in cars, upgraded software etc. Company handle lots of
hurdles like reuse battery, cost of operations, insufficient service centre etc. Now Tesla is
recognised brand around the globe and continuously achieving high level of productivity at the
span of Covid 19 (Sassmannshausenand Volkmann., 2018). It continuously develop creative
commodity in vehicle industry. Elon Musk successfully invented another company Paypal. It is
one the well recognized online transaction company that deals monetary transaction with the
help of digital platform. For its services they do not charge any money and easy assessable to
transfer monetary transaction around the globe. This company deliver most interesting concept
to target online users. In starting face was not that musch effective in digital wallet. After that it
tie up with great entrepreneur Elon Musk. In the direction of the entrepreneur company
accomplished leading success in monetary transaction business. Elon Musk share a clear vision
optimistic vision in respect of this company. It found difficulty in performing previous company
X.com so the entrepreneur decided to shut the X.com company. By this, it focus on Paypal and
try top achieve its long and short term goal. After that entrepreneur acquire another organization
Ebay. It convert into default system in monetary transaction. So overcome this situation they
adopt advanced software system to provide security in payment transaction.
They gets partnership with master card to create more revenue through online transaction.
After that they spin off apart company of Ebay. The Elon Musk develop creative change to
become leading company in the industry. Entrepreneur generate effective position of company in
the market industry. Elon Musk share the vision that an individual can not be entrepreneur who
never introduce any innovative change. In the year of 2000 Elon Musk want to introduce
unexpected change in Paypal to convert Unix model into window model. But others model deny
to adopt these changes in the company (Wan-ru, , 2018). As this result other management team
and directors fired Elon Musk. But the maximum shared still held by Elon Musk. The

entrepreneur is passionate innovative person and move ahead in his career to create more
revenue and profit (WANG and WANG, 2019). After that he invented other successful company
like Space X, hyperloop, Tesla etc. Elon Musk formed another company Hyperloop in 2012. The
entrepreneur invented style of passenger and freight transmission from the unit like Tesla and
SpaceX (Yuejun,2018). They introduced new technology sealed tubes through low pressure.
CONCLUSION
From the above report it has been concluded that both innovation and entrepreneur are
integral concept of business. This facilitate economic development along with sustainability.
These concept are essential to bring transformational change in the society. Entrepreneur deliver
innovative and creative value to the social group. This can solve many conflicts in the economy
by delivering productive innovative business idea in society. A successful and efficient
entrepreneur satisfy mass consumer potential base. The entrepreneur always want to produce
some valuable thing with lots of innovation. It act as leader and role model for business
individual. Innovation is essential for any entrepreneur to defeat competitive environment. It
facilitate competitive advantage in the business activity. Innovation does not build rapidly, it
takes lots of time effort and experience of entrepreneur.

REFERENCES
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Guo, F. and et.al., 2019. What determines academic entrepreneurship success? A social identity
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