Innovation and Entrepreneurship

Running Head: MANAGEMENT 0
INNOVATION AND
ENTREPRENEURSHIP

MANAGEMENT 1
Innovation and Entrepreneurship
The concept of entrepreneurship is a complex phenomenon. Entrepreneurship is
concerned towards entrepreneur action in relation to the established vision and innovative
response to the enterprise environment. Benz (2009) defined entrepreneurship as a function
of seeking investment and opportunities to undertaken new practices such as raising capital,
introducing new tactics, discovering sources of raw materials and other necessary days to day
operations of an enterprise. At personal level, it brings thrill, growth and challenge to an
individual. Considering society, it encourages in formation of capital as well as creation of
wealth that extends beyond a conventional economic and business perspectives.
Entrepreneurship capital is defined as “a region endowment with factors conducive to the
formation of new businesses”. The impact of entrepreneurial capital is stronger as compare to
that of knowledge capital as it plays a vital role in the production function (Audretsch,
Hulsbeck & Lehmann, 2012).
In this dynamic and complex environment, the most successful entrepreneur is the
individual who adapts himself as per the changing expectations of customers in respect with
growth of the organisation. Due to the emergence of entrepreneurship talent in prevailing
business environment, it is important to identify both positive and negative aspects having
significant impact on the future business scenario.
The role of entrepreneurship in the current social environment brings out both positive
and negative impact in relation with broader society. The positive impact of entrepreneurial
firms can be perceived through society and economy. Various entrepreneurial firms introduce
an innovative environment, do commercialization of new technologies and thus create value
by combining resources in various ways (Dacin, Dacin & Matear, 2010). The benefit of
society is linked with economic development and one of the most positive impacts of
entrepreneurship is associated with capital formation. Entrepreneurs are the people who are
responsible to attract investment to settle private participation considering the
industrialization process. The capital that is employed in the business is of the entrepreneur as
well as borrowed resources that at the end leads to value creation and addition of wealth
necessary for the development of society in a country.