Innovation and Entrepreneurship and its Impact on the Construction Business


Added on  2019-11-26

6 Pages1934 Words129 Views
Running head: MANAGEMENTManagement and Business context

MANAGEMENT1IntroductionBackgroundArticle 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.ScopeAs 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.DiscussionContextual 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 EntrepreneurshipInnovation 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 issuffering 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 hasto 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

MANAGEMENT2business. 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 EntrepreneurshipInnovation 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 businessConstruction 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. Concernto 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 decisionsin 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 EntrepreneurshipEntrepreneurship Innovation theoryAccording 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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