Comprehensive Analysis: Entrepreneurship and Innovation Essay

This essay provides a detailed analysis of the intertwined concepts of entrepreneurship and innovation. It begins with definitions of each term, highlighting their significance in business development and economic growth. The essay then compares and contrasts the benefits and detriments of entrepreneurship and innovation, emphasizing the importance of innovation for achieving competitive advantages. Furthermore, it explores the economic and social implications of entrepreneurship and innovation, illustrating their impact on societal development and the creation of new businesses. The document also discusses the challenges entrepreneurs face, such as the risk of unrealistic innovation, and concludes by emphasizing the essential role of innovation in driving successful entrepreneurship. References to academic sources support the arguments made throughout the essay.

RUNNING HEAD: ENTREPRENEURSHIP AND INNOVATION
ENTREPRENEURSHIP AND INNOVATION
Name of the University
Name of the Student’s
Author Note

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Executive summary:
Entrepreneurship is one of the valuable terms that related with the innovation. In our society
entrepreneurship is important to develop the economy and innovation is highly related with this
scenario. Without proper innovation true entrepreneurship cannot be achieved. Innovation is the
term, which an entrepreneur dreamed. Entrepreneur is a person who dreamed about new things,
new service to develop the business. Social, economic growth has been achieved by the
successful innovation in the entrepreneurship. Advantages of innovation in entrepreneurship are
like proper development of business, achieving competitive advantages and many more.
Definitely, there are some flaws as sometime entrepreneur assumes unrealistic innovation, which
leads to the failure. Although entrepreneurship has been standing upon the innovation and
entrepreneur is the only person who can make the ides into reality.

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Table of Contents
Introduction:....................................................................................................................................4
1 Definition of entrepreneurship and innovation:............................................................................4
2. Comparison and contrasting of the benefit of entrepreneurship and innovation:........................5
3. Comparison and contrasting of detriments of entrepreneurship and innovation:........................7
4. Economic and social implications of entrepreneurship and innovation:.....................................7
Conclusion:......................................................................................................................................9
References:....................................................................................................................................10

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Introduction:
Term entrepreneurship is somehow complex and most of the time guided into the wrong
direction but basically, entrepreneurship refers to the new imagination in new ways to resolve the
problems and to create a new value which makes sense. The concept of entrepreneurship has
much broader sense than only to create a new business.. Entrepreneurship is the real part of a
business that can change the business into the successful stages (Chatterji, 2014). On other hand,
innovation is the term that can be described as a transformation of an idea into the reality that
precipitated the value for which consumers will pay. Both the innovation and entrepreneurship
are important to make the business unique, interesting and a successful business always make the
structure with blending these two terms. Comparative view of entrepreneurship and innovation
will be described in this paper. Similarities and differences between the entrepreneurship and
innovation will also be defined. Importance of these two in the economic and social context will
also be described properly for better understanding.
There is a difference between business owner and entrepreneurship, business owner
basically involved in organizing the business structure and to calculate the profit but
entrepreneurship can be considered as a leader who guides the whole process properly to gain the
uniqueness. A true entrepreneur has many characteristics which turn them as a unique and
generous person such as a true entrepreneur learn from others failure, has problem solving
attitude, passionate, intellectual and broad-minded to (Drucker, 2014),. It can be said that
entrepreneurship is a vast concept in business but (Maritz, 2015) stated that every person has a
tendency and have a nature to become an entrepreneur but entrepreneurship cannot be achieved,
it is the term that can be earned.

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On another hand, innovation is an inborn nature although the difference between
entrepreneurship and innovation cannot be extracted easily, innovation is the idea that can be
turned into the reality(Souto, 2015).Innovation is much needed to create something new in
business, which provides satisfaction to the customers in a new way, and also make the profit for
the company.
According to the Risk Bearing Theory of Knight based on the economic principle, the
entrepreneur is the only person who can take the risk and can draw profit from it. Entrepreneur
act as a future anticipating person who can see the future and profit is the reward of the taken
risks (Obrinsky, 2015). Challenges can be of different types but an entrepreneur can anticipate
the possibilities of success from it.
The economy is mainly composed of business and enterprises because business has the
ability to change with the demands and provide the exact solution. Entrepreneurship gives the
financial support and gain and makes the economy running. This is the main reason behind the
emergence of innovation in entrepreneurship. Importance of innovation is much needed to
produce new products and in economy, demands for new products are always high (Karlsson,
2014). An entrepreneur is the man who is dreaming about something new and here the term
innovation is justified because without innovation it is not possible to achieve the competitive
advantages in the market.
Innovation is the key factor, which determines the longevity and durability of the
business. Entrepreneurship and innovation have started with the market needs and innovation
with entrepreneurship mixed up to provide the suitable solution. The most important criterion to
be a successful entrepreneur is the sincerity about the current trends and innovation is grown or

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structured completely following the trends. Entrepreneur realizes the needs and come up with the
innovation maybe it is a product or maybe it is a service but successful innovation allows the
company to gain in business and durability comes through combination of entrepreneurship and
innovation.
Innovation and entrepreneurship have been highly related to each other because the
success of the company depends on how much an entrepreneur innovates, intensity, the
capability of an entrepreneur to innovate and many more (Wu, 2015). An entrepreneur is the
dreamer who innovates every time and has the ability to produce new products, which can ease
the daily life of the customers. Innovation occurs in every level within an organization and the
companies always want something new also from their employees.
Importance of innovation in comparison with entrepreneur can be measured through the
competition. In oligopoly market, innovation is much needed to stay in the market because
competitor’s pressure is high (Kuratko, 2015). Innovation can be the only solution and
entrepreneur is the only man that can push the company to achieve the competitive advantages.
Determinants of entrepreneur and innovation are also related interestingly because
sometimes entrepreneurship fails to innovate properly and reason can be anything but the issue is
that the innovation fails. Entrepreneur sometime assumes unrealistic idea which leads them
toward the unsuccessful innovation. It is essential for an entrepreneur to build the idea which is
relevant to the market. Unrealistic innovation can discourage the entrepreneur.
Entrepreneurship is the concept where entrepreneur is taking the risk but risk can
diversely affects the entrepreneurship (Schaper, 2016). This type of uncertain, uncalculated risks
devastates innovations and entrepreneur is completely responsible for this failure. It is quite

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simple that innovation needs money and time. It is always not possible to invest a lot of money
at a time for small business even sometime this taken time makes the innovation useless.
Determinants of this entrepreneurship and innovation cannot be formulated or written.
The whole concept is based on how an entrepreneur anticipates the challenges and develops the
idea of innovation (Autio, 2014). It is really unreal to assume that all the idea can be turned into
successful innovation. Failure can occur but the intensity of the failures matters for the
organization.
Entrepreneurship and innovation help to create new business in order to meet the
demands of the customers. It is the opportunity to innovate and launch completely new products
in the market, which still not exists in the market. This opportunity drives the entrepreneur to
open a new business and in the term, it helps to grow the economy. In last decade 20.5% small
business has developed in Singapore and beside this 10% medium business also reported which
constituted economic growth in Singapore (Phillips, 2015). A new business always needs the
employee. This job option helps to uplift the economy and also supports the generation to
motivate their lifestyle. 6% employment has been generated in last few years due to involvement
of entrepreneurship and innovation.
When a new business starts their operation, they export or import to the nearby region
and this helps to grow the earning and productivity of this region (Zahra, 2016). Revenue
strength of the economy is increased by this. Singapore government implements new policy
regarding development of rural areas by setting up new businesses. In order to support the policy
government notified every new company to provide the certain amount of taxes to the
government. Innovation and entrepreneur make the life of customer easier. An entrepreneur

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always innovates to make the thing valuable, which can make the life easier (Phillips, 2015).
Innovation always increases the social demands and supports the society in order to develop the
livelihood. Due to environmental issue, all the Entrepreneurs innovate their products or services
to support the environment. For this society is benefited and environment also gets the support
which helps to grow a green world. Launching biodegradable packaging system to support the
environment is another historical innovation in Singapore and soil and water pollution decreases
considerably, which is one of the important social revolution. For this reason, all the
entrepreneurs encourage the production of biodegradable packets firms, which in term increase
the economic growth. In small and medium size business entrepreneurship and innovation helps
to build the social development because rural entrepreneurship allows the people of that area to
become more social and this can be occurred only when economy is developed. Economic
availability also allows the government to make policy to increase the education level of the
country, and also people will become more social, there lifestyle will increase. In last few years
Singapore government launches many policies to uplift the rural people and provides free
training about different cultural, social activities like computer training, different game training,
science conference to reduce the superstitions and many more to develop their regular livelihood
(Galindo, 2014). Entrepreneur also follows the CSR (Corporate Social Responsibility) for
developing the society by providing certain percentages of money and this is the basic
responsibility of every entrepreneur to support the social development like increasing the literacy
rate, reducing the poverty and many more.
Competition is always beneficial for the economy because all the entrepreneurship wants
to beat their rival and for this, they innovates new products, which can give them money. This
battle for innovation helps the economy to collect money because demands of the people are

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increasing and to meet the requirement all the companies create new products to increase their
sale. In 2003, ESC (economic strategy committee) supports the long-term strategy to gain the
competitive advantages (Galindo, 2014). Competitive advantages increase the social benefit in
the society and all the entrepreneur will try to attract more customers fairly by producing quality
products at affordable range. This will meet the social demand also as well as economic.
Conclusion:
From the above essay, it can be concluded that Entrepreneurship and innovation is a
related term and both are essential to growing the business properly. Innovation is much needed
in Entrepreneurship because Entrepreneur turns the idea into an innovation. Many benefits of
innovations are there to enhance the business. Obviously, some flaws are also there. Sometimes
innovation fails and causes the loss but still to create a successful Entrepreneurship innovation
has been needed. Economic and social growth is also can be achieved by the innovation and
Entrepreneurship makes the new products to support the economy and society.

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References:
Autio, E. K. (2014). Entrepreneurial innovation: The importance of context. Research Policy,
1097-1108.
Chatterji, A. G. (2014). Clusters of entrepreneurship and innovation. Innovation Policy and the
Economy, 129-169.
Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
Galindo, M. Á. (2014). Entrepreneurship, economic growth, and innovation: Are feedback
effects at work? Journal of Business Research, 825-829.
Karlsson, C. &. (2014). Entrepreneurship and innovation networks. . Small Business Economics,,
393-398.
Kuratko, D. F. (2015). Corporate entrepreneurship: the innovative challenge for a new global
economic reality. Small Business Economics, 245-253.
Maritz, A. &. (2015). Entrepreneurship and innovation: Setting an agenda for greater discipline
contextualisation. Education+ Training, 74-84.
Obrinsky, M. (2015). Profit theory and capitalism. University of Pennsylvania Press.
Phillips, W. L. (2015). Social innovation and social entrepreneurship: A systematic review.
Group & Organization Management,, 428-461.
Schaper, M. (. (2016). Making ecopreneurs: developing sustainable entrepreneurship. CRC
Press.

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Souto, J. E. (2015). Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management, 142-155.
Wu, C. W. (2015). Global entrepreneurship and innovation in management. 743-747.
Zahra, S. A. (2016). Understanding the social role of entrepreneurship. Journal of Management
Studies, 610-629.