Entrepreneurship and Innovation

This assignment delves into the core concepts of entrepreneurship and innovation. It examines the historical context, theoretical frameworks, and practical implications of these phenomena. The discussion encompasses various aspects such as entrepreneurial finance, innovation diffusion, and the impact of regulation on fostering innovation. Students are expected to analyze case studies, research findings, and current trends in entrepreneurship and innovation to demonstrate a comprehensive understanding of the subject.

Running head: INNOVATION AND ENTREPRENEURSHIP
Innovation and entrepreneurship
Name of the Student
Name of the University
Author’s note

1INNOVATION AND ENTREPRENEURSHIP
Contents
Introduction......................................................................................................................................2
Task 1:.............................................................................................................................................3
Definition of innovation..............................................................................................................3
Dimension of innovation.............................................................................................................3
Typology of innovation...............................................................................................................4
Characteristic of innovation (Dr Thom)......................................................................................5
Task 2...............................................................................................................................................7
Definition of entrepreneurship:....................................................................................................7
Definition of market....................................................................................................................7
Definition of opportunity.............................................................................................................8
Definition of diffusion of innovation...........................................................................................8
Task 3.............................................................................................................................................11
Discussion of the range of government policy and initiatives...................................................11
The technology strategy board...............................................................................................11
Innovate UK...........................................................................................................................12
The health foundation............................................................................................................13
Conclusion and recommendation..................................................................................................14
Reference list:................................................................................................................................15

2INNOVATION AND ENTREPRENEURSHIP
Introduction
An entrepreneur is a person who is not only responsible for ideating and developing
investment and business plan. He is a visionary leader under whose leadership an organization is
going to thrive towards success from scratch. The mission and vision of the entrepreneur
becomes the objective and aims of the company. The risk element plays an important role in the
characteristic of an entrepreneur. Some of the other attributes of a successful entrepreneur are:
patience, farsightedness, innovative approaches towards traditional business concepts etc.
Governments all around the world encourage entrepreneurship and new business as it is a
significant part of a nation's opportunity to succeed in a dynamic and competitive global
marketplace (Carland et al 2015). The innovation that is going to be discussed in this report is
building a physical market for an online service that is popular in the UK market. The target
market of the company is already aware of services that the company is providing and as it is an
existing concept it already has a customer base, but the essence of the service is in the discretion
of it which is well maintained online, the real challenge for the company is that weather it will be
able to keep up to the level of discretion (Drucker 2014).

3INNOVATION AND ENTREPRENEURSHIP
Task 1:
Definition of innovation
Innovation is the process of creation of a new idea, project, process, and plan. It can also
refer to the development, improvement of the same. According to the Oslo manual, innovation
can be segregated into four divisions:
Product innovation: An organization offers a product or service to the customers and this is the
way a company earns profit, improving these goods or services based on several attributes is
known as product innovation. Innovations can be in several segments like technical, resources
and raw materials, software, functionality as well as user friendliness.
Process innovation: This is the improvement and development of the process or operations that is
responsible for daily activities of the business unit. There are various factors that impact this
change (Manual 2005).
Marketing innovation: Marketing is basically the process of promoting or communicating with
the stakeholder of the company and any kind of improvement or innovation in this sector is
regarded as marketing innovation. Some of the elements in this sector are product design,
packaging, placement, branding, pricing or promotion.
Organization innovation: An organization operates in several integrated process any change or
improvement in this process helps is called organizational innovation (Manual 2005).

4INNOVATION AND ENTREPRENEURSHIP
Dimension of innovation
The innovation mix that is developed by John Bessant and Joe Tidd explains the concept
of 4Ps: Paradigm, Product, Position and Process. It is the method which is used to identify the
most effective instrument of innovation. It provides a guideline and idea about the section that
needs innovation so that organization can strategically invest the money. In this process the
problem statement has to be the highlight of the concept and base on those decisions or policies
can be taken. This concludes to two questions firstly what is the strategy of the business and
how innovations can provide assistance to get successfully implement the strategy. Secondly,
what are the factors that should be chosen and what are the resources that are involved (Tidd and
Bessant 2015).
 Product is the change in the goods or services that are provides by the company,
 Process is the way the product or service is developed and delivered to the end customers
 Position is the context of placement of the goods or services
 Paradigm is the changes in the strategies and the theories that the business would follow
in order to improve the processes in which the company operates
Typology of innovation
This is an extension of the previous theory that is developed by John Bessant and
Joe Tidd Radical and incremental are the two segments in this process by which the innovation is
measured. Radical is the doing something differently incorporation of new methods, where as
incremental is the implementation and improving the existing process with the help skill
development and time management etc (Tidd and Bessant 2015).

5INNOVATION AND ENTREPRENEURSHIP
Dr Thom is a process innovation, as consultation with the doctor has been a service that
is provided to the patients but this idea is taken to a whole different level when the service is
offered online as well. With the advancement of technology and decrease in the internet rates all
around the world internet has been the platform for all kinds of services. This is an incremental
innovation as the business idea remains the same but there is a change in the market of the
service (West and Bogers 2014). It is a market push innovation as the service has good demand
and people who are not being able to access internet or is looking for more concrete and face to
face consultation. The value and the severity of the service provided by Dr Thom, both to the
customers and the society has more to offer than being just an online medical consultancy the
humanitarian aspect of the service adds value to the service. More than focusing on the profit the
service is for the all over welfare of the health of the people of UK (Baum et al 2014).
Characteristic of innovation (Dr Thom)
Relative advantage: Any consultation must be desecrate but the online presence of the service
have the risk of being unreliable and hence the physical presence of the service make the patient
have a sense of physical evidence and is assured that their case will be in the hands of expert.
Complexity: The innovation is in the process of business delivery but the services that the
company will provide is not complex to perceive by the potential customers, medical
consultancy is something people deal with since childhood and the innovation that is being
discussed is just an extension of that idea (West and Bogers 2014).

6INNOVATION AND ENTREPRENEURSHIP
Trialability: the online version of the service can be regarded as the trail run for the idea and the
success of the process can be taken for expanding the business in another market. Research can
be conducted to understand the perspective of the existing customers for making changing the
market of the service, the inputs will help the entrepreneur recognise the gap in the process and
improve in those areas in the innovation. The innovation has the capability to add a numerous
number of treatments and services along with consultation (Brink 2017).
Compatibility: There are several stigmas related to some of the diseases that are most common in
the consultation and hence the existing value of patient and doctor discretion will help the
innovation create potential customers. A person who is sick will want to consult a doctor face to
face rather than chatting with someone over the internet.
Observability: this criteria is real foe some of the case and are not important for some. People
who want to keep the meetings with the experts a secret will not disclose it to the close ones and
hence others around him may not realize the existence of the service, on the other hand a person
can be so happy with the service that he is willing to share his experience with the people he is
related to (Brink 2017).

7INNOVATION AND ENTREPRENEURSHIP
Task 2
Definition of entrepreneurship:
An entrepreneur is a person who initiates an enterprise in order to create value and deals with all
the liabilities and assets associated with it strategically. According to Onuoha (2007),
“entrepreneurship is the practice of starting new organizations or revitalizing mature
organizations, particularly new businesses generally in response to identified opportunities.” On
the other hand, Schumpeter (1965) has defined an entrepreneur as a person who recognises and
opportunity in the market and explores those with the help of technological and organisational
innovations. Identifying the opportunities, finding resources, developing the venture, creating the
value are some of the basic tasks of an entrepreneur.
Definition of market
A market is a place where the buyers and the seller of a particular good or service come
together to exchange benefits. The scale of a market is dependent on two factors firatly is the
number of buyers and sellers and secondly the resources in terms of finance available in the
market (West and Bogers 2014).
The services provided by Dr Thom was previously only in the non-physical or virtual
market but now the innovation is driven towards taking the service to the physical market for the
potential customers who are skeptic about online consultation and who lack technological
knowledge or do not have frequent internet access as well as other technical difficulty. E-
business is the contemporary forerunners in the business environment. Most of the companies are

8INNOVATION AND ENTREPRENEURSHIP
going online to expand their target market and potential customers with the help of internet it
involves lesser investment in comparison to setting up physical stores (Martins et al 2015). The
doctor’s consultation service is a highly competitive market as every doctor in the market is a
competition to the business. But the market of Dr Thom is slightly different as it deals with
consultation of diseases and conditions which are still not discussed openly as several stigmas
are associated with it such as: sexually transmitted diseases or even some of the other general
diseases. Such services are a necessity in today’s society as people due to a lot of reasons do not
open up about the medical condition they are suffering from their families and friends, the
services of Dr Thom like companies ensure that the patients are in the hands of good medical
advisors and doctors (Tidd and Bessant 2015).
Definition of opportunity
Opportunity is the scope of growth and expansion for a business market it can be internal
or external depending on the nature of the opportunity. Innovations are based on the type of
opportunities that is available at the disposal of the company (West and Bogers 2014).
Definition of diffusion of innovation
Diffusion of innovation is the concept that connects how, why and at what rate does
creative ideas and technology spread through the cultures. It is the procedure through which a
new innovation passes from the initial conceptual stage to value creation. The stages that it
follows are explained in context with Dr Thom:
Knowledge: The entrepreneur at this stage is mostly looking for an opportunity and trying to
identify the pros and cons of the market. He or she is mostly unaware of the market opportunity

9INNOVATION AND ENTREPRENEURSHIP
of Dr Thom. The drive to do something new and set up something innovative in the entrepreneur
is what helps him or her seek knowledge (Adams et al 2006).
Persuasion: In order to bring the service to the market the entrepreneur will require research to
understand the demand for the service in the UK market and to understand the requirement of the
customers as well to recognise the gap in the previous market. Positive feedbacks form the
people will encourage and persuade the entrepreneur to take the step ahead (Gruber and
Koutroumpis 2013).
Decision: After gathering information and data that is relevant in for the selected sector, the
entrepreneur then tries to find out the pros and cons of the business innovation, he begins
calculating the expected outcome of the venture and hence analysis the data collected. In order to
find information the person can conduct an empirical research which makes this stage the most
difficult one, it is the place where the entrepreneur has to come to a conclusion weather to accept
or reject the innovation. The advantages and disadvantages of acceptance and rejection should be
analysed side by side in order to understand the prospect (Chemmanur and Fulghieri 2013). In
this case the prospect of the innovation of a new market is advantageous for the entrepreneur as
the popularity of the service is immense in the e-business sector and the prospects can easily be
analysed with the help of research from the population of the existing market of the service
(Gruber and Koutroumpis 2013).
Implementation: If the above stage of innovation is acceptance then comes the part where the
implementation of ideas and formulation of decisions regarding the innovation takes place. The
entrepreneur will analyse the business environment both internal and external. Rules and
regulations regarding health care in UK have to be considered by the company in order to legally

10INNOVATION AND ENTREPRENEURSHIP
incorporate the business idea in the UK market. Confidentiality and discretion in between the
doctor or the consultant and the patient is of prime concern and the guidelines should be ethically
followed by the organisation (Thompson 2017).
Confirmation: After going through all the challenges and the opportunities in the industry the
entrepreneur now has to confirm the decision of taking the venture forward. Analysing the
opportunities and threats the entrepreneur will come to a decision about the innovation. The
popularity of the service provided by Dr Thom is both popular and feasible than taking an
appointment to visit a doctor the same essence will be carried forward in the new market (Gruber
and Koutroumpis 2013).

11INNOVATION AND ENTREPRENEURSHIP
Task 3
Discussion of the range of government policy and initiatives
The technology strategy board
This association is formed to provide help related to research and development of science,
technology and creative ideas. The objective of the board is to encourage investment in order to
enhance the rate of economic and to improve the standard of living of the people of UK
(Megginson et al 2012). And in order to initiate the help and aid the board provides the following
services:
 Encourages and promotes research in various fields so as to help cultivate new and
innovative ideas and then engaged in business activities;
 Support and encourage investment in order to initiate business activities
 Gather and distribute knowledge about the application of, and investment in, science,
technology and new ideas
 The board helps in building confidence among the public regarding the innovation and
the new business venture by creating an understanding of the
 It also advises the Government on plans for as well as react to questions posed by
Government regarding, the application of, and investment in, science, technology and
new ideas, by those engaged in business activities (Chemmanur and Fulghieri 2013).
The innovation in the market of Dr Thom can get assistance and support from the initiative
above as it is not only built with a motive of profit making it is also developed for the betterment
of the people (legislation.gov.uk 2017).

12INNOVATION AND ENTREPRENEURSHIP

13INNOVATION AND ENTREPRENEURSHIP
Innovate UK
This is an executive non-departmental (NDPB) public body, supported by the Department for
Business, Energy & Industrial Strategy. It helps new business enterprises to develop and create
new ideas and encourages productivity and growth. The organization has spent over £1.8 billion
over innovation (Timmons and Spinelli, 2015). Around 8,000 business enterprises received help
from Innovate UK with projects approximate to add more than £16 billion to the UK economy
which also in turn helped in the creation of 70,000 jobs. The aim of the organization is to limit
the risk factor associate with startups to some extent so that the venture can be a success
(Kearney and Hisrich 2014).
The responsibilities of the organisation are:
 To be farsighted in terms of implementation and development of technology that can be
implemented in the future business opportunities
 Creating and gathering funds for opportunities that are strong and lucrative
 Help the entrepreneurs make connections with the right partners and people in order to
take the enterprise through the various stages of innovation
 assist the innovators and entrepreneurs to commence, construct and cultivate successful
businesses organization
Funds are a real challenge for the creation of a physical existence of the new market of Dr
Thom. The entrepreneur will also require connections in terms of doctors and other medical
professional to contribute to the business without having an idea of gaining profit from the
venture but for doing something for the betterment of the society. The contributors will be the

14INNOVATION AND ENTREPRENEURSHIP
major essence of the business and hence this organization can help the entrepreneur to start the
business (gov.uk 2017).
The health foundation
This organization is a nonprofit seeking organization that is committed to bring improved
health conditions and health care for people in the UK. The aim and objective of this
organization and the new innovation of Dr Thom is on the same lines the foundation can help the
entrepreneur to develop ideas and connections with the right people and at the right time (Bae et
al 2014). This organization can also help the entrepreneur gather more in-depth information
regarding the business and the pros and cons of the market. It can guide the entrepreneur to abide
by the rules and regulations regarding the health care sector of UK (Kearney and Hisrich 2014).
The organization supports and promotes innovations in the health care sector by offering
research aid and technical support; they also help in raising the funds for an innovative startup.
The organizations can help the entrepreneur find the gaps and opportunities in terms of diseases
that are diagnosed but people are ashamed to admit due to various reasons. With the help of this
institution the entrepreneur can also decide on the psychological therapy of the patients who
require sessions with a psychiatrist due to depression and social exemption due to medical
conditions (health.org.uk 2017).

15INNOVATION AND ENTREPRENEURSHIP
Conclusion and recommendation
The market that has been identified for the service is the physical market with addition of
treatments and extension of psychological assistance as well. Dr Thom has gained popularity in
the e-business market and is one of its kind service garnered it goodwill and reputation among
the stakeholders. The entrepreneur with the help of the “process innovation” can bring the
enterprise to physical existence which will increase the target market form people who are tech
savvy to people who have access to the physical platforms. Some of the challenges that are
identified in the new market are the issue of expansion will require a great deal of capital
investment and in-depth research in the process of health care. The entrepreneur can market the
service as more of a cause driven endeavour than a profit driven. The health care sector is a
sensitive and a segment of market that requires care and support, as finance for the consumers in
this market is an area of concern. The entrepreneur can develop financial assistance plan for the
customers as well. This will help the entrepreneur gather goodwill among the stakeholder of the
organisation as well as add to the strategy of being more humanitarian in the business approach.

16INNOVATION AND ENTREPRENEURSHIP
Reference list:
Adams, R., Bessant, J. and Phelps, R., 2006. Innovation management measurement: A
review. International Journal of Management Reviews, 8(1), pp.21-47.
Bae, T.J., Qian, S., Miao, C. and Fiet, J.O., 2014. The relationship between entrepreneurship
education and entrepreneurial intentions: A meta‐analytic review. Entrepreneurship theory and
practice, 38(2), pp.217-254.
Baum, J.R., Frese, M. and Baron, R.A. eds., 2014. The psychology of entrepreneurship.
Psychology Press.
Brink, A., 2017. Development of innovation characteristic based product ideation method–Case
study in marina design.
Carland, J.C., Carland, J.W. and Stewart, W.H., 2015. Seeing what's not there: The enigma of
entrepreneurship. Journal of small business strategy, 7(1), pp.1-20.
Chemmanur, T.J. and Fulghieri, P., 2013. Entrepreneurial finance and innovation: An
introduction and agenda for future research. The Review of Financial Studies, 27(1), pp.1-19.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
gov.uk. 2017. Innovate UK. [online] Available at:
https://www.gov.uk/government/organisations/innovate-uk/about [Accessed 11 Nov. 2017].
Gruber, H. and Koutroumpis, P., 2013. Competition enhancing regulation and diffusion of
innovation: the case of broadband networks. Journal of Regulatory Economics, 43(2), pp.168-
195.

17INNOVATION AND ENTREPRENEURSHIP
health.org.uk. 2017. The Health Foundation. [online] Available at: http://www.health.org.uk/
[Accessed 11 Nov. 2017].
Kearney, C. and Hisrich, R.D., 2014. 6. Entrepreneurship in developing economies:
transformation, barriers and infrastructure. Necessity Entrepreneurs: Microenterprise Education
and Economic Development, p.103.
legislation.gov.uk. 2017. THE TECHNOLOGY STRATEGY BOARD. [online] Available at:
http://www.legislation.gov.uk/uksi/2007/280/schedule/made [Accessed 11 Nov. 2017].
Manual, O., 2005. The measurement of scientific and technological activities. Proposed
guidelines for collecting and interpreting innovation data.
Martins, L.L., Rindova, V.P. and Greenbaum, B.E., 2015. Unlocking the hidden value of
concepts: a cognitive approach to business model innovation. Strategic Entrepreneurship
Journal, 9(1), pp.99-117.
Megginson, W.L., Byrd, M.J. and Megginson, L.C., 2012. Small business management: an
entrepreneur's guidebook. Irwin/McGraw-Hill.
Onuoha G., 2007. Entrepreneurship, AIST International Journal, Vol. 10, pp. 20-32.
Schumpeter J. A., 1965. Economic Theory and Entrepreneurial History: Explorations in
Enterprise, Harvard University Press, Cambridge, MA.
Thompson Jr, A.A., Strickland, A.J. and Gamble, J.E., (2017). Crafting and Executing Strategy.
Tidd, J. and Bessant, J., 2015. Innovation and entrepreneurship (No. 3). Wiley.

18INNOVATION AND ENTREPRENEURSHIP
Timmons, J.A., Spinelli, S., 2015. New venture creation: Entrepreneurship for the 21st
century (Vol. 4). Burr Ridge, IL: Irwin.
West, J. and Bogers, M., 2014. Leveraging external sources of innovation: a review of research
on open innovation. Journal of Product Innovation Management, 31(4), pp.814-831.