Entrepreneurship and Innovation: Key Factors for Success

This assignment delves into the world of entrepreneurship and innovation, highlighting crucial aspects that lead to business success. It covers topics such as entrepreneurial traits, strengths, leadership styles, and innovative techniques. The interview questions provided offer a glimpse into the mindset and practices of entrepreneurs, shedding light on what makes their businesses thrive. The references cited in the appendix further reinforce the importance of entrepreneurship and innovation in today's business landscape.

Opportunity Innovation
and Entrepreneurship
Table of Contents

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
APPENDIX......................................................................................................................................7

INTRODUCTION
Entrepreneur is an individual who rather than working within an organisation as an
employee prefers to find and execute their own business by taking risks (Burns, 2016). Basically
entrepreneur is someone who is innovator, possess new services, goods, idea and procedures. By
this they are able to foresee present as well future needs by market, thereby leads to enhancement
in economy of country. This report is based on Bellissima Ristorante which is an Italian food
restaurant present in London. This report contains information related with entrepreneur,
different theories related with opportunity, entrepreneurship and innovation are discussed.
Furthermore, interview of an entrepreneur is presented.
MAIN BODY
Entrepreneur: An individual who determine requirements within market and tries to
accomplish them, is known as entrepreneur. They are the one who starts their own business and
possess the ability to accomplish them as an economic opportunity. Simona Adina ONCIU is an
entrepreneur of Bellissima Ristorante. It was started on 16 December 2011 in London. It is micro
business with less than 10 employees and have turnover below £2 million.
Theory of Opportunity: It is defined as exploitable set of circumstances with possess
unsure outcomes, requires commitment of resources and also involve exposure to risk. In other
words, it can be said that opportunity is the capability to create value (Carayannis, 2013).
Opportunities can also be referred to as value sought. This is a situation where the gap between
demand and supply is met in terms of customer wishes. When it is ascertained that resources are
not consumed, it is known as value creation capability. When demand in market becomes clear,
this leads to creation of a business concept. This business concept tends to comprise of core
notions on the manner in which the market place can be served or the resources can be utilised.
The business concept then later evolves into a unique business model that juxtaposes market
wants as well as resources. When a schedule of activities and a financial business model are
integrated, it ultimately results in the emergence of a business plan. This specific sequential
activity, namely, concept – model – plan does not always arise in practice. Opportunity
development reflects that opportunities emerge as concepts and further get developed over the
course of time. It can be said to be a continuous proactive process which is essential and
fundamental for the shaping of a business venture (Drucker, 2014).
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Opportunity recognition consists of 3 separate processes, namely, perception, discovery
and creation. Perception implies that different persons perceive varied possibilities owing to the
heterogeneity in people's sensitivity towards opportunities. Such differences arise from
individuals background or experience (Galindo and Méndez, 2014). However, it is noticed that
people who are able to anticipate opportunities are not always able to utilise them. Discovery is
aimed at recognising the fit between resources and market needs. By matching the market needs
and resources, opportunities are formed. Creation is aimed at creation of a new fit between
resources and needs by bringing rapid innovations. In this regard, Simona Adina also followed
this procedure and significantly recognised the needs of market place and people so as to come
up with radical innovation in terms of developing an Italian Restaurant, under the name of
Bellissima Ristorante, which come up with new and unique dishes and flavours at regular
intervals.
Opportunity evaluation is a process which states that opportunities are evaluated at every
stage of opportunity development. This can be carried out by way of a feasibility analysis which
aims at addressing the question: ”whether the proposed assemblage of resources can deliver
desired value to people. Furthermore, it examines whether the opportunity development will
ultimately result in an economic success (Hisrich and Kearney, 2013). Usually, evaluation is
characterised by a judgement regarding whether a plan would get resources to develop it in long
term, this is referred to as summative evaluation. Also, there is another type of evaluation known
as formative evaluation where the plan adjusted in order to ensure greater scope for success.
Theory of Innovation: A business is established on the basis of innovation which can be
successful in the competitive market. According to Schumpeter, a business cycle is dynamic
which which change trade operations and investment due to monetary fluctuations. Therefore, an
entrepreneur planning to set up a new business venture must have an idea about existing
circumstances prevailing in economy. Also, innovation is required to have uniqueness in the
products or services so that entity can survive in the cut throat competition. The author have
defined any transformation in methods of production, transportation, manufacturing of new
product, change in industrial organization etc. will be treated as innovation. It is completely
different from invention and utilise new technology, new material and new sources of energy
(Lehner and Kansikas, 2012). While interviewing Simona Adina, she believes in finding
innovation by following architectural innovation theory which involves application of skills,
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technology of a successful market to an entirely different market. This is a reintroduction of
proven technology. With the help of this theory, she raised the standards of food quality that is
being served at Bellissima Ristorante. The other theory which is followed by Simona is
disruptive innovation, in which new technologies are introduced in company's current market.
This has helped in saving extra and unnecessary costs incurred in repairing machines (Lowe and
Marriott, 2012). The money so saved was utilised in buying and upgrading existing appliances
for increasing productivity. Furthermore, before conducting research for adding innovation,
demands of a product is analysed so that positive results can be achieved. She has discovered
that innovation is a powerful thing which can proved to be a strength if implemented
appropriately. Along with this, solar panels were installed to save electricity bills, eco-friendly
elements were used in packaging, and many more major changes were done to attain desired
results.
There are risks in innovation which can lead an enterprise into distressing situations.
These involve high costs which can either be successful or failure. Furthermore, there should be
proper implementation of methods and theoretical frameworks which can help in creating value
and new ideas (Mainela, Puhakka and Servais, 2014). The main focus of it is to increase
creativity which can multiply profits. The processes of Bellissima Ristorante were modified. The
staff were given directions and guidance to become familiar with new technology so that
precious time can be given to more important matters. Furthermore, all the changes were made
with an intention to sustain in the cut throat competition. Simona Adina considered the
perspective of all the stakeholder before raising funds to finance innovation. New technology or
process can not function without being operated with eligible staff, for which it requires adequate
money. Hence, there should be sufficient flow of funds in an order to carry activities. While
researching for the innovation, all the restrictions were taken into account so that maximum
result can be gained from minimum. Furthermore, past data and information were analysed to see
the level of failure so as to avoid repetition of mistakes which can prove to be significant.
Innovation matrix was also followed to improve innovation portfolio according to need
and funds available. Detail steps were followed before implementation which proceeded with
designing, followed by evaluation of alternatives, identification of barriers, need of budget, and
many more (Marcotte, 2014). Together with this, a clear distinction was made between number
of innovation viz. Business, technology and marketing. This helped in putting right amount of
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efforts and time into main concern. Along with this, innovation assessment was conducted to
review the outcomes achieved and measure with the standard to find out any gap. This was
important to take corrective measures for mitigating the variance so that prescribed targets can be
accomplished (Mitra, 2013).
Theory of entrepreneurship: Entrepreneurship refers to designing, introducing and
carrying business activities efficiently. The person behind the idea and taking initiative with the
establishment is called entrepreneur. Entrepreneurship theories are divided into two categories
viz. Functional approach and indicative approach. Former states the functions to be carried by an
entrepreneur and latter is concerned with identity of entrepreneur. According to Peter Kilby, “the
theories of entrepreneurial supply are constructed from either psychological or sociological
elements.” There are various roles and responsibilities which should be understood before
initiating with the idea of setting up an enterprise (Priem Li and Carr, 2012). Theories have
bifurcated the functions into innovator and adopter which means that, there should be innovation
and changes must be adopted easily. This helps in running the business smoothly. Furthermore,
there are two motives for which a entrepreneur operate and these are profit as primary motive
and achievement motivation as secondary.
As per the words of Richard Cantillon, an entrepreneur acquire services at a fixed price
which is sold at an uncertain price ate a later stage. This is done to earn profit and involves huge
risks which can impact negatively (Simón-Moya, Revuelto-Taboada and Guerrero, 2014). Along
with this, there are particular functions which must be conducted on regularly such as analysis of
future demand, assessing the requirement of raw material, and estimation of production costs and
selling prices. Simona Adina realised the strong position of entrepreneur in the UK market which
encouraged her in setting up her own restaurant. However, in order to take in to new heights,
roles and responsibilities of an entrepreneur were evaluated so as to have better control over
business practices. The work was divided into an appropriate way between all the staff so that
individual targets are attained without any delay. Furthermore, a new policy and guidelines were
formulated for implementing within the restaurant.
Simona Adina also changed internal management so that staff can be encouraged and
work in the right direction. Also, the importance of paying bonus and incentives was understood.
This motivates employees to perform well and with their best efforts (Burns, 2016). She herself
became the leader and had effective communication with team members with a view to know
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their problems and resolve them. This was done to mitigate situations of conflicts and disputes.
Entrepreneurship is a wider concept which covers number of aspects which are above than just
selling products and making profits. Furthermore, another important function of entrepreneur is
risk taking (Carayannis, 2013). There are huge risks in the business environment which should
be evaluated and predicted for making provision which can be utilised in contingency. Along
with this, with the help of leadership skills Simona Adina effectively lead their employees
towards great success and effective achievement of their as well as company goals. This skill
will not only able to improve productivity of their workers but also able them to perform their
performance in a effective way under pressure. Adina effectively encourage employees with her
formative leadership skills which will further help employees to increase their emotional
intelligence. Efficient leadership skill not only benefit employees but it also aid organisation to
effectively improve their charisma and seriousness in the business operations. This will further
benefit towards growing confidence within team that lead towards effective achievement of goals
and objectives. In addition with this, Simona Adina owns best effective form of encouraging
skills which stimulate her to effectively motivate their employees. With the help of different
form of motivational techniques Adina can lead their employees towards increased in level of
their productivity that will simultaneously increase their overall level of performance in a best
effective manner (Drucker, 2014).
CONCLUSION
On the basis of above discussion, it has been concluded that, entrepreneur is a person
who possess lots skills and capabilities by which they are able to start own venture or business.
Basically, they are the individuals who starts working on their own innovative skills and
thoughts. This assist them to increase economic conditions of country. Theory of opportunity is
used to determine ways in which individuals will utilize the options they have in appropriate
manner. Theory of innovation will lead to something better and new which is not present within
market till now. Theory of entrepreneurship are created on the basis of sociological and
physiological needs of individuals. All of these theories will provide assistance to an
entrepreneur to make use of their skills in significant way as well as their organisational
operations in improvised manner.
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REFERENCES
Books & Journals
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Carayannis, E. G., 2013. Encyclopedia of creativity, invention, innovation and
entrepreneurship (pp. 36-47). Springer Science+ Business Media BV, Formerly Kluwer
Academic Publishers BV.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Galindo, M. Á. and Méndez, M. T., 2014. Entrepreneurship, economic growth, and innovation:
Are feedback effects at work?. Journal of Business Research. 67(5). pp.825-829.
Hisrich, R. D. and Kearney, C., 2013. Managing innovation and entrepreneurship. Sage
Publications.
Lehner, O. M. and Kansikas, J., 2012. Opportunity recognition in social entrepreneurship: A
thematic meta analysis. The Journal of Entrepreneurship. 21(1). pp.25-58.
Lowe, R. and Marriott, S., 2012. Enterprise: Entrepreneurship and innovation. Routledge.
Mainela, T., Puhakka, V. and Servais, P., 2014. The concept of international opportunity in
international entrepreneurship: a review and a research agenda. International journal of
management reviews. 16(1). pp.105-129.
Marcotte, C., 2014. Entrepreneurship and innovation in emerging economies: Conceptual,
methodological and contextual issues. International Journal of Entrepreneurial
Behavior & Research. 20(1). pp.42-65.
Mitra, J., 2013. Entrepreneurship, innovation and regional development: an introduction.
Routledge.
Priem, R. L., Li, S. and Carr, J. C., 2012. Insights and new directions from demand-side
approaches to technology innovation, entrepreneurship, and strategic management
research. Journal of management. 38(1). pp.346-374.
Simón-Moya, V., Revuelto-Taboada, L. and Guerrero, R. F., 2014. Institutional and economic
drivers of entrepreneurship: An international perspective. Journal of Business
Research. 67(5). pp.715-721.
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APPENDIX
Interview questions are shown below:
Q1. What traits you personally adopt to make a business successful ?
Q2. Which three words describe your strengths ?
Q3. Which type of leadership style you believe to follow and why?
Q4. What do you think, what is the most important factor for the success of an organisation ?
Q5. How you are placing your organisation among your rivals?
Q6. Which type of innovative technique are you looking to adopt in your organisation?
Q7. How do you feel that this innovation will help you in achieving success?
Q8. Which type of motivation technique you are using for your employees to improve their
performance ?
Q9. How are you looking your organisation to be sustainable or profitable in future ?
Q10. What do you think which is the most competitive rival for your company and why ?
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