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Innovation and entrepreneurship in business context

   

Added on  2020-02-19

6 Pages2085 Words138 Views
Running head: MGMT20144 1Business ContextualFactorsInnovation and Entrepreneurship

MGMT20144 2IntroductionThe purpose of this essay is to highlight the role and significance of one of the most recognized business contextual factors used by the business organisations for achieving increased competitive benefits i.e. innovation and entrepreneurship. There is a direct relation in both the factors i.e. innovation and entrepreneurship and both are equally important for an organisation. Innovation is one of the best practice or tool used by the business entrepreneurs for achieving long-term sustainability and growth. Innovation and innovative business practices offers the businesses a new opportunity to grow and develop and to have a more extended market share andcustomer base (Crumpton, 2012). The key aim of developing this paper is to understand the significance of innovation and entrepreneurship and its related factors in achieving improved outcomes, quality and efficiency in the business practices of the chosen company, The Man Company. The scope of the paper is limited to the chosen organisation and industry only and willoffer insights of the advantages gained by the company with the use of the contextual factor. Innovation and EntrepreneurshipInnovation is a process of transforming or translating an idea into some sort of services or goods for the value creation purpose for which the individual are ready to pay some amount of money. Innovation is a vital and considerable practice by which the organisational managers have a transformation in the business operations and processes and avail it as a business opportunity. Entrepreneurship can be explained as the willingness or capacity of the individuals to manage, organise and develop a new business venture for making profits and managing all risks associated with it. Any new start up is one of the key examples of entrepreneurship. The spirit of entrepreneurship is featured by the risk-taking and innovation aspect of the individuals and it is one of the most significant factors for attaining competitive advantages in the global marketplace(Sahut and Peris-Ortiz, 2014).There are several theories and concepts of innovation and entrepreneurship that play a significantrole in their application in the business organisations. As per the Theory of Entrepreneurship developed by Peter Drucker, entrepreneurship is an idea of opportunity. He further explains that the entrepreneur is not only the one who bring some sort of change rather is one who exploit business opportunities which are brought by change (Vranceanu, 2014). According to this

MGMT20144 3theory, entrepreneurship is more like an aspect of being alert to the profit making business opportunities ad so according to Drucker, opportunity is the central aspect of entrepreneurship (Drucker, 2014). Another theoretical aspect related to entrepreneurship is Theory of Entrepreneurship developed by Friedriech von Hayek in respect with the relation of entrepreneurship and knowledge. As per this theory, the existence of entrepreneurship is the result of deficit of knowledge in an individual. He further explains that the stress generated because of knowledge deficiency results in identifying ways other than the ways which are the outcome of the existing knowledge and this leads to development of entrepreneurial process (Dorin and Alexandru, 2014). Thus, the theory states that entrepreneurship can also be known as a discover process which finds innovative and new ways to manage things and operate within theorganisations. Other vital theory that explains both the concepts of innovation and entrepreneurship is Theory of Entrepreneurship and Innovation Theory developed by Schumpeter. According to the Theory of Entrepreneurship, there is introduction of a new good orservice, new production method, new market, new supply source and new organization. In the Innovation theory, Schumpeter emphasis on new product launch, new production method which has not been used earlier, new market, mew sources for the raw material supply and new structure of industry. The theory explains that any business which is seeking profit is necessary to remain innovative (Śledzik, 2013). Both innovation and entrepreneurship are significantly potential for the success of the businessesand the organisations and are interrelated to each other. For the long term sustainability and existence of the businesses, it is necessary that there must be implementation of innovative practices so that there can be fetched increased attention of the customers. Innovative practices have leaded the business to attain huge growth and success across the globe and there are numerous examples of such ventures (Trimi and Berbegal-Mirabent, 2012). A combination of innovative practice with effective entrepreneurship skills results in the organisational success andgeneration of continuous profits. Both the contextual factors have a direct impact on the businessstrategies and structures as analysed in the online business perspective. With the enhanced globalisation, the entrepreneurship and innovation has gained vital importance among all the industries and primarily in the online retailing as it is one of the outcomes of innovation only. Bystarting the ventures and businesses on online platforms, the entrepreneurs have gained extended and huge global recognition with such less business investments. These factors have imposed

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