Bolton University: BAM5105 Enterprise, Innovation and Creativity Essay

This essay examines the crucial roles of creativity, innovation, and enterprise within organizations, emphasizing their significance for the UK economy and society. It appraises the impact of creativity, innovation, and enterprise, highlighting their importance for organizational survival and growth while addressing the challenges faced by organizations. The essay delves into the various types and forms of enterprise activities, providing a comprehensive understanding of the entrepreneurial process within different contexts, including private, social, and public organizations. It provides a detailed analysis of the role of entrepreneurs in driving innovation and economic development, touching upon the challenges and opportunities faced by entrepreneurs, particularly within the UK context. Furthermore, it explores the challenges faced by entrepreneurs, particularly SMEs, and the support provided by the government. This essay provides a comprehensive overview of the importance of creativity, innovation, and enterprise in today's business environment, supported by examples of organizations and relevant statistical data.

Running head: MANAGEMENT
Business and Entrepreneurship
Name of the Student:
Name of University:
Author Note

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Businesses or organizations can be defined as enterprises which constitute of human
beings with common goals and objectives based on shared principles to achieve them. In order to
become productive, an organization need resources: materials/commodities, as well as human. It,
thus, is very essential to make use of proper resources to make the business sustainable and
powerful. It is here, that the role of innovation, enterprise and creativity comes into play, which
is very important to act on the opportunities which come in the way of growth and success.
Entrepreneurs have strong ideas about opportunities, which exist in the market and can be acted
upon to achieve success. Entrepreneurs are often referred to as people who take necessary risks
and are able to manage the uncertainties, to yield to productive outcomes (Bogavac-Cvetković
and Miličković 2016). The most appropriate opportunity given to the entrepreneurs were given
during the Industrial Revolution, in Britain and entrepreneurship has evolved as time has passed.
The paper would discuss entrepreneur, entrepreneurship, enterprise and importance of creativity
and innovation.
Innovation and creativity have become integral part of success, especially in the
developing countries. Innovation can be referred to as being the way in which businesses
processes are enhanced by making adaptable changes which help in increasing productivity
(Plucker 2016). This enables a business to make the quality of services and products better, to
sustain market conditions. Innovation is very important to enhance product offerings and make
improvements in the products and services while understand demands and expectations of the
customers and be able to rapidly meet the needs. Creativity and innovation are considered to be
very crucial for determining success. Alongside innovation, the need for creativity has been
intensified due to the increase of complex problems in business environments (Bogavac-
Cvetković and Miličković 2016). Suitable solutions are to be found in order to deal with

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contemporary problems, especially related to the management. Thus, it is needless to say that
creativity goes parallel to innovation when it comes to development, sustainability and hence,
lead the market.
The organizations who are able to, proactively, address opportunities through innovation
as they tend to be ahead in the market, even through volatile business conditions. Companies
who innovate are more likely to flourish, grow and become successful even through toughest
times, especially during economic as they modify their operations and adapt. Such organizations
are very creative while catering to the demands and trends in the market. Creativity and
innovation ensure that they meet standards and expectations of the customers and sustain in the
market (Bogavac-Cvetković and Miličković 2016). Hence, innovation is a strategic tool which
can be chosen and used by the company to make business processes enhanced and effective for
growth.
Innovation is a very important function in entrepreneurship. The usual meaning which is
associated with entrepreneurship, is that the entrepreneurs foster various ways through which
they reproduce resources and offer them in the market in enhanced manners (Bogavac-Cvetković
and Miličković 2016). These resources are either new and thus, capable of wealth production or
some existing resources are enhanced with the intention of creating more wealth. Innovation is a
perceptual and conceptual, which the innovators and entrepreneurs must pay attention to from
time to time. Taking risks might be very difficult as there are great uncertainties involved in the
market. Hence, it requires great analytical skills to be able to address the opportunities and create
value out of them.
Additionally, creativity can be defined as the flow of to make an existing system more
effective and operational. Creativity involves two aspects with which the businesses and

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organizations can be benefited, which include people and process. People are that valuable
resource to a company which determine, execute and develop solutions for the company and
make functions operational. People, therefore, are responsible to develop necessary ideas and
solutions with which the systems can be addressed in order to enhance services and come up
with better products and processes for the company. On the other hand, process is designed in
such a manner that they yield to outcomes and solutions, through various goals and objectives.
An entrepreneur refers to a person who addresses a demand or need in the society or the
market with innovative ideas. Entrepreneurship is the process of building the business into an
entity which will make profits in the future while enterprises are the desired outcome of the
process and ideas put together. Great emphasis is laid on entrepreneurship in many developing
and developed countries. It is considered that entrepreneurs must have specific knowledge and
skills in order to anticipate the outcomes and opportunities, based on which their preparedness
are determined (Babu, Krishna and Swathi 2013). This enables the entrepreneurs to understand
the expectations and innovate according to the information acquired. UNICEF also lays great
emphasis on the development of the small and medium sized enterprises for the development and
growth of economy in the countries. UNICEF has also identified that government also plays a
very crucial role in enabling the small and medium sized enterprises to be able to face the fast
and changing business conditions in which they sustain. The challenges which are posed in their
growth, can be better dealt with, with the aid and support of the government, which, in return
helps the economy grow.
One of the greatest challenges which are faced by the SMEs in the market economies, is
the process of transitioning and acquiring necessary skills to enhance the business to develop the
culture of entrepreneurship. SMEs often lack the technical understanding and awareness which

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are required to be able to enhance processes in the business and live up to the expectations of the
customers and market conditions. When these attributes have been paid attention to and brought
into coherence, the company is most likely to achieve sustainability. These organizations ensure
that innovation and creativity are very important for growth. In modern society, these attributes
are the key to sustainability, especially in the capitalist societies. The entrepreneurs are identified
as economic leaders who are able to identify the opportunities to be able to offer newer ideas
through which new techniques and products can be offered in the market which open newer
avenues for business and development. Thus, innovation and entrepreneurship are not taking
place naturally but to improve capacities. The entrepreneurs, with the help of innovation are able
to understand the entrepreneurial activities which can be brought in order to redesign
management, organization and the environment.
Innovation and creativity are of great importance, also because they give way to
employment opportunities as well as economic development. Creative entrepreneurship can thus
be linked to profitability, employment, growth, access to resources-financial as well as material,
further development of training, education and research, access to market and so on. However,
the most important aspect of entrepreneurship is growth and profitability within a specific
industry (Harrington 2018). Some of the entrepreneurs are often able to attract great investments
and manage uncertainties and risks which are associated with the entrepreneurial ideas. The
entrepreneurs should, thus be able to understand completion locally as well as globally.
Creative industries and entrepreneurs also contribute to balance payments, add value and
production to a nation. It has also been seen that 2-6% participation is by the small scale or
entrepreneurs in the GDP of a nation, especially in countries such as Great Britain, Canada, and
Australia. UNCTAD also emphasizes in the importance of economic development.

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Entrepreneurism and creative industry are great facilitators of new employment as well as
Internationalization of businesses. This sector is often considered to be resistant to recession if
compared to other sectors. When there are economic crisis, if often happens that these industries
are able to bring new opportunities and potential employment, business development and
initiatives which are crucial for the nation (Singh and Gaur 2018). These industries, thus play a
very important to build economies based on knowledge, information, innovation, creativity and
ideas. They also develop new economic model which is based on autonomy, self-employment,
flexibility and highly motivated and educated workforce operating across diverse experts and
talents.
Global Entrepreneurship Monitor Data states that the oscillation of entrepreneurship is
not restricted to countries but also to the kind of entrepreneur as well (Gemconsortium.org 2020).
A phase of entrepreneurship can be distinguished on the basis of innovation, ambition and
entrepreneurial activities. The innovative Entrepreneurship rate differ in all countries. The
development and implementation of innovation can be made on the basis of the contributions
which are to be made to the economy. The function a production is a best way to understand the
connections which are drawn by Entrepreneurship and innovation with economic growth
(Shaughnessy 2020). In other words, economic growth can be understood with the help of
attributes such as tangible, intangible capital and multifactor productivity growth. The
contributions which are made by entrepreneurial ideas and innovative initiatives give two results
due to technological processes into physical capital. It has been found out by Oecd.org
(2020)That investments made on information technology, communication technology have
resulted in GDP growth, as have been accounted for.

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It can thus be stated that innovation helps companies to take Bolt steps and can be used as
a strategic tool in order to accustom to the business environment in the recent and contemporary
times. Companies will be able to maximize returns if they make investments in the market or to
shareholders. Innovation can also enable a company to achieve goals and make considerable
growths effectively. They will also keep increasing productivity which would result in the
increasing profitability of the organization (Coulson-Thomas 2017). Market share could be
increased responding to where is market conditions adapting to the challenges of posed by the
external environment. Entrepreneurship, currently is a movement which can be seen globally,
even in the market which are emerging. Consecutively, the governor also started realizing that
entrepreneurship is a very important tool to make economic growth and success as innovation
allows and empowers businesses as well as people to you have autonomy of their own business
ideas and their lives.
However, on the other hand there are significant challenges which are faced by the
entrepreneurs across the globe and even in UK. The most common problem which are faced by
the entrepreneurs is cash flow management. The small and medium-sized enterprises often face
challenges to manage the cash flow which is very important for the survival and sustenance. The
solution for this issue is to maintain proper budget and assess the cash flow critically. The cash
flow can also be in hands with the help of pastor invoice payments. Entrepreneurs also face
problems to hire the perfect employee as the process might be more time consuming to review
resumes and find the best suited candidates. The solution for this problem is to become exclusive
and specific about qualifications and eligibility of the candidates. Capital is also often the issue,
when it comes to entrepreneurship. It is thus, very important to earn funds, which is often aided
by government.

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There are great opportunities which entrepreneurs can address in UK. People with
entrepreneurial ideas can initiate their ventures as they can get their company registered within
48 hours. There are several challenges which an entrepreneur face while initiating the venture,
out of which the corporation taxes in UK is not one of them. UK has lower corporation tax as
compared to many other countries which make it very favorable for entrepreneurs to start their
businesses (Economicsonline.co.uk 2020). The second largest labor force is accounted to be in
Europe government in UK offer great support and aid to the entrepreneurs to establish their
startups.
The Government of UK also helps entrepreneurs to set the businesses in UK as an
expansion. This is carried out through global entrepreneur program which is also known as GEP,
which intends to extend their help to overseas entrepreneurs (Gov.uk 2020). The organization
has helped in creating over thousands of job which has contributed to the growth of UK'
economy. Private investments of the companies have increased to £1 billion in the private
investment, which is a great boon to the economy. The support and facilities which are provided
by the program include assistance to develop plans of business, helping to relocate in UK,
mentoring to grow internationally and gain investors (Gov.uk 2020). This is ensured that
entrepreneurs are immensely interested to you have their businesses set up in UK as well. Some
of the examples of companies who expanded to UK include TechStars London, Oxygen
Accelerator and Seedcamp.
Enterprises can be categorized according to the legal ownership. Private enterprises can
be categorized as sole traders, partnerships and Private Limited Companies and Public Limited
Companies. The life blood within a market economy are the Sole traders who involve in local
services, retailing and catering (Economicsonline.co.uk 2020). The scopes of expansion are

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limited as the demand for these local services are also limited. These organization makes their
own decisions, own the assets and manage the risks to earn the profits. Partnerships can be
referred to as the businesses which are managed by a few partners, among whom responsibilities
and specializations are divided according to business requirements. It might be the case that all
the partners who are involved, do not have equal risks, liabilities and debts incurred in the
business. Partnerships can be found in solicitors, estate agents and accountants. Private limited
companies are firms which are incorporated. They have their own legal identity, and the
liabilities which are limited are shared across with the shareholders. The private limited
companies have made rapid growth through the 18th century which led to free market and
capitalism. Public limited companies are the ones who can sell their shares with public. They are
also legally incorporated and share limited liability with the shareholders. These firms begin
when entrepreneurs gather resources and efficiently manage the risks involved to set a business
and meet the expectations at the end of which they are able to earn profits (Singh and Gaur
2018).
It can thus be concluded by saying that entrepreneurship is very much dependent on
innovation, creation and the process of entrepreneurship. Innovation is the key to achieve
sustainability and success. This needs to be addressed by the entrepreneurs, after which they can
often seek help and aid from governments and investors which help in the process of making the
business an enterprise. An entrepreneur’s ideas and risk management play very crucial role to
determine the success of the ventures which are intended in the external business environment in
which it sustains.

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References
Babu, R.R., Krishna, M.M. and Swathi, A., 2013. Role of creativity and innovation in
entrepreneurship. Innovative Journal of Business and Management, 2(5), pp.112-115.
Bogavac-Cvetković, N. and Miličković, M., 2016. The importance of creative and innovative
small and medium enterprises in overcoming of crisis in terms of modern
business. Ekonomika, 62(2), pp.151-165.
Coulson-Thomas, C., 2017. Stimulating creativity, enabling innovation and supporting
entrepreneurship. Management Services, 2017(Summer), pp.26-29.
Economicsonline.co.uk, 2020. What Is Enterprise?. [online] Economics Online. Available at:
<https://www.economicsonline.co.uk/Business_economics/What_is_enterprise.html> [Accessed
20 March 2020].
Gemconsortium.org, 2020. [online] GEM Global Entrepreneurship Monitor. Available at:
<https://www.gemconsortium.org/data> [Accessed 1 April 2020].
Gov.uk, 2020. Entrepreneurs Setting Up In The UK. [online] GOV.UK. Available at:
<https://www.gov.uk/government/publications/entrepreneurs-setting-up-in-the-uk/entrepreneurs-
setting-up-in-the-uk> [Accessed 20 March 2020].
Groumpos, P.P., 2017, September. Creativity, innovation and entrepreneurship: a critical
overview of issues and challenges. In Conference on Creativity in Intelligent Technologies and
Data Science (pp. 3-20). Springer, Cham.
Harrington, H.J., 2018. Creativity, Innovation, and Entrepreneurship: The Only Way to Renew
Your Organization. CRC Press.

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Oecd.org, 2020. Entrepreneurship And Business Statistics - OECD. [online] Oecd.org. Available
at: <http://www.oecd.org/sdd/business-stats/> [Accessed 1 April 2020].
Plucker, J.A., 2016. Creativity and Innovation: Theory, Research, and Practice. Prufrock Press
Inc. PO Box 8813, Waco, TX 76714.
Shaughnessy, H., 2020. The Only Two Types Of Enterprise That Really Matter. [online] Forbes.
Available at: <https://www.forbes.com/sites/haydnshaughnessy/2012/04/02/the-only-two-types-
of-enterprise-that-really-matter/#1ee26e5065fb> [Accessed 20 March 2020].
Singh, S.K. and Gaur, S.S., 2018. Entrepreneurship and innovation management in emerging
economies. Management Decision.