Entrepreneurship and Innovation in Construction Business

The assignment discusses the concept of entrepreneurship and its importance in the construction industry. Entrepreneurship refers to the process of creating something new by grasping opportunities. In the context of Core builders, a new business startup plan in Punjab state of India, entrepreneurs with innovative ideas create new products, services, and have a future vision of success and development. The theories of innovation and entrepreneurship highlight the importance of risk-taking, vision, and responsibility towards society. The psychological theory of entrepreneurship emphasizes the need for a high-achievement motivation and ability to make decisions in unpredictable conditions. Overall, entrepreneurship is crucial for enhancing the performance of contractors and contributing to economic growth.

Running head: MANAGEMENT
Management and Business context

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Introduction
Background
Article aims at representing building construction contractor in Punjab state of India named as
Core builder and it is a leading construction contractor in small building has a sole trader
business structure. Article include one of the contextual factor that is Innovation and
Entrepreneurship and its impact on the construction business. Further, article is comprises with
entrepreneurship and innovation theories.
Objective
Objective of the article is to show how contextual factors effect business and how can these
factors help business to grow and survive into the market. Importance of the contextual factor is
also discussed into the article. Objective is to know the effect of contextual factor on business
structure, business strategies and decision making of construction business.
Scope
As discussed above the article is about construction contractor named as core builder and the
impact of contextual factor that is innovation and entrepreneurship. There is lot of scope of
innovation into the construction business and different entrepreneurship strategies can be
adopted by business.
Discussion
Contextual factors are those factors which shows characteristics of particular group, community,
society and individuals. One of the contextual factor is Innovation and Entrepreneurship.
Construction industry is one of the major and important industry which leads to the development
of other industry and society (Rojuaniah, Joeliaty & Sutisna. 2016). For sustaining into the
market, managers of the business should implement new and innovative ideas and strategies as
the competition level is high.
Innovation and Entrepreneurship
Innovation is important for all the business, as it is the key element for inventions and increases
the performance ability of business (Bessant & Tidd, 2015). Innovation also involves
improvements into the product and services as compared to previous achievements. If business is
suffering from lack of funds then they will not be able to adopt different innovative technology.
Further, innovation also involves risk as if the innovative strategy did not work then business has
to face huge losses as the technology used in it is very expensive. Innovation and
entrepreneurship comes hand in hand. Entrepreneurship is also very important for every
business, as it means capability of doing things differently and ready to face risk with the aim of
earning profit and success. Entrepreneur is the concerned person who start the business with the
aim of doing something new and is responsible for all the decision in the business (Bessant &
Tidd, 2015). Entrepreneurship comprises of developing new strategies, organizing all the
elements and managing it properly. Entrepreneurship involves high risk in launching new

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business. If the idea or business did not worked, then entrepreneur has to face losses and it might
can happen that they have to close one of the portion of business (Daniel & B. A. 2014).
Importance of Innovation and Entrepreneurship
Innovation and Entrepreneurship is very important for every business. For sustaining into the
market business should adopt new and innovative strategies as well as technologies into the
business (Drucker, 2014). If business will not do time to time changes according to the market
demand, then they have to face losses and competitors will grasp that opportunity. This can lead
to losses into the business and it might can happen that particular business has to close their one
of the units. Entrepreneurship is also important for business because this is the process of
creativity and innovation with the aim of earning profits. Entrepreneurs are those who bring new
idea, make decisions and have leadership quality (Drucker, 2014).
Impact of innovation and Entrepreneurship on construction business
Construction business has lot of scope of innovation, that is why Core builders should do all the
research work before starting the business as it will give them an idea about the time and money
will be invested in the business (Remund, Ortiz & Gehrke, 2017). Further, it can be said that
Core builders should pursue innovations in order to achieve their objectives, which they have
defined for their business. Core builders should have all the knowledge related to innovations
done by competitors and invention of new technologies related to construction business. Concern
to the future perspective Core builders should bring innovations, so that they can sustain into the
market for longer period. High risk is involved into the construction business, for that core
builders should plan all activities properly, like use of expensive technology and decisions
related to the operation of business. Allocation of funds into different segments of business must
be done properly by the contractor, which can help in corrections at the time of loss into the
business (Remund, Ortiz & Gehrke, 2017).
Entrepreneurship means taking initiative towards change and doing and creating something new
by grasping the opportunity. Person who take initiative and start new business is known as
entrepreneur (Schumpeter, 2017). Core builder business is an idea by an entrepreneur, who has
new and innovative idea for business and is ready to take risk for the sake of earning profits.
Construction business plays important role in the development of society and country and also
results in economic growth. It has been observed that, entrepreneurship is important for
enhancing the performance of the contractor. Core builder have to be very careful while making
strategies and implementing them, this is because entrepreneur is responsible for all the decisions
in the business. For sustaining into the business Core builder should provide different strategies
time to time and contractor should have good terms with their clients as it is a big challenge in
construction industry. Besides having high risk core builders have lot of scope in Punjab state of
India (Staniewski, Nowacki, & Awruk, 2016).
Theories for Innovation and Entrepreneurship
Entrepreneurship Innovation theory
According to the Entrepreneurship Innovation theory, entrepreneur are the one who thinK
differently, start new business, which leads to the development of economy (Staniewski,

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Nowacki, & Awruk, 2016). Entrepreneur with new and innovative ideas create new products,
services and have future vision of success and development. They are the one who have the
ability to take risk and grasp opportunities. According to the theory entrepreneurs are those who
do innovations like creating new product, launching different methods of production, find out
other options of raw material for production, introducing new technology and starting new
business. Focus of the theory is on innovation, entrepreneur’s ability towards risk taking
(Staniewski, Nowacki, & Awruk, 2016).
Theory supports the discussion of innovation and entrepreneurship in construction business as
Core builder is a new business startup plan by an entrepreneur with the willingness of doing
something new and ready to take risk. Construction business leads to the development of
economy (Sundbo, 2017).
Sociological theory
Sociological theory explains that entrepreneur is the person from whom society expect new
things. Entrepreneur should consider values of society, their beliefs and fulfil all the
responsibility towards the society (Sundbo, 2017). As theories explains different aspects of
entrepreneurship Core builder should have future vision and should consider their responsibility
towards society.
Psychological Theory
Psychological theory of entrepreneurship explains that entrepreneur should have vision of high
achievement and entrepreneur should be ready for facing risk and problems into the business.
Psychological theory focus on personality traits and emotional elements of individual.
Entrepreneur of Core builder have future vision of achieving desired targets and have thought of
contributing towards the innovation (Sundbo, 2017).
Theory of Achievement motivation
Achievement Motivation theory focus on ability of decision making when conditions are
unpredictable. Theory also explains that entrepreneur should be imbibed with the quality of
doing work with innovations. Entrepreneur with all these quality focus on profit and success of
the business. Core builder have innovative ideas for business and entrepreneur is very much
capable of making decisions due to that business will make profit (Uzunidis, Boutillier, &
Laperche, 2014).
Conclusion
Article comprises of objectives and scope of Core builders and impact of contextual factors on
construction business. Contextual factors which is discussed above is Innovation and
Entrepreneurship. Innovation and Entrepreneurship are said to be the important asset of the
business. Core builder is a new start up in Punjab state of India. As discussed above Innovation
and entrepreneurship are two aspects which comes hand in hand. Entrepreneur is the one who
comes with innovative ideas and aims at earning profits. Innovation and Entrepreneurship shows
characteristics of society, community, particular groups and individuals. In broader terms,
construction industry is one of the industry which results into the development of other industries

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and economic growth. For sustaining into the market Core builder’s entrepreneur has to adopt
new, innovative strategies and technologies into the business. Entrepreneur of Core builder
should also take care of the human resource engaged into the work of business.
References

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Bessant, J., & Tidd, J. (2015). Innovation and Entrepreneurship. John Wiley & Sons.
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Between Technology, Progress and Economic Growth. Edward Elgar Publishing.
Daniel, M.C & B. A. (2014). Entrepreneurship and Innovation: An Economic Approach.
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Drucker, P. (2014). Innovation and Entrepreneurship. Routledge.
Remund, M. C, Ortiz, M. P & Gehrke, H. J. (2017). The Vitruvian Man of Leonardo da Vinci as
a model of innovative entrepreneurship at the intersection of business, art and technology.
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Schumpeter, J. A. (2017). Essays: On Entrepreneurs, Innovations, Business Cycles, and the
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Sundbo, J. (2017). The Theory of Innovation: Enterpreneurs, Technology and Strategy. Edward
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