Innovation and Entrepreneurship: A Global Perspective

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INDIVIDUAL RESEARCH REPORT

Executive summary
Entrepreneurship is a much discussed matter within the scope of global business landscape.
This report is going to advent in this matter whether generic innovation strategy can fulfil the
desire of successful entrepreneurship. In this context, this study has fused on interpreting the
closeness of innovation and entrepreneurship. Accordingly, current global practices in this
domain have been evaluated taking into account a personalised interview session of an
entrepreneur.
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Table of Contents
Introduction..............................................................................................................................................2
Business opportunity and centrality to entrepreneurship and innovation................................................2
Evaluation of Current practices...............................................................................................................3
Effective communication.........................................................................................................................5
Recommendation and Conclusion...........................................................................................................6
Reference List..........................................................................................................................................8
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Introduction
Innovation may be defined as the process of creating more effective methods, ideas, and
products. For business and entrepreneurship, this usually refers to implementation of new
ideas, producing a range of dynamic products or bringing improvement to existing services.
Innovation and innovative ideas are excessively important in entrepreneurship.
Entrepreneurship helps to keep economy afloat and so, it is very important for entrepreneurs
to come up with new ways of solutions. Application of innovation in entrepreneurship is
essential as it ensures long running of the business. Innovations are the key to the success of
any business organisation. Entrepreneurs apply their innovative thoughts to come up with
new ideas and try to find multiple solutions for a particular problem.
Business opportunity and centrality to entrepreneurship and innovation
From the interview conducted, it can be inferred that an entrepreneur cannot expect their
team to be innovative if the team has no idea regarding the purpose of innovation. It is
essential to develop a vision that is challenging but desirable as well as believable (Ács et al.
2016). It is very much important that team members share a common goal and develops a
willingness to accept the difficulties, challenges, and changes together. It is important that
each of the workers in a team use their imagination to deliver satisfaction to people and earn
lifetime customer loyalty.
Contribution to the growth of the economy is a major benefit drawn from innovation.
Innovation promotes higher productivity, that is, a greater output can be generated with the
same input. Due to a rise in productivity, services and goods are produced in larger numbers
and hence productivity raises leading to economic growth (Amorós et al. 2016). Innovation
and an increase in productivity bring huge convenience for business as well as for the
consumers. Due to a rise in productivity, workers’ wages increase. Hence, workers are able to
purchase more services and goods. This maximises the profits and this enables entrepreneurs
to hire additional employees. In the interview, the entrepreneur has a goal of maximising the
revenue of their retail store by more than fifteen percent. According to the entrepreneur, this
is a cascaded target of their organisation. To make this happen, each team member is made to
identify the goal in order to make achieve the goal successfully. The sales department is
assigned to increase its sales goal (Dentchev et al. 2016). Similarly, several individual goals
are created and are distributed, and finally, these individual goals hit the team goals, the team
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goals together achieve the departmental goals and departmental goals help to achieve the
goals of the organisation.
Evaluation of Current practices
Innovation themes are the building block of any organisation. It helps entrepreneurs to
differentiate several growth-oriented strategies. It is essential for entrepreneurs to have
clarity regarding innovation themes. There are a variety of themes essential for implementing
proper innovation; however, one must not get confused regarding several themes (Roh,
2017). As stated in the interview, the entrepreneur and their team have taken up the method
of digital delivery in order to deliver retail products to their consumers. They had clarity
regarding this theme and so, they chose it. The entrepreneur and its team do not invest to
make money fast. This is because they do not have a clear perception of the events of the near
future. Moreover, the entrepreneur too owns certain assets in their portfolio. The entrepreneur
also has a clear idea that investigating in only a single category may prove to be dangerous
for the long term (Velayutham, 2018). Hence, they do not invest in a single category but
invests on multiple categories in a smaller amount. The sufficient resources that are needed to
win are nothing but a team of hard-working employees. Although it is necessary to have a
capital in order to begin a business, however, the capital must also be invested in a proper
way in order to earn maximum profit. The entrepreneur emphasizes on the fact that within an
organisation, portfolio governance is essential as it ensures the alignment of the portfolio to
organisational objectives.
It has been seen that most of the company’s focus on earning more profit in order to achieve
a larger share in the market. The entrepreneur says that their organisation sells products on
the basis of the needs of the customer. From the interview, it can be clearly understood that
the entrepreneur follows four lenses of innovative insights in order to maintain sustainability
in the market. The organisation has challenged all the existing orthodox within the
organisation. The entrepreneur has proposed new ideas and antithetical alternatives in order
to gain better sustainability. The organisation has also started harnessing the trends (Zhao and
Colliear, 2016). The organisation has replaced its existing scale and rate proportionate to the
environment. Hence, as a part of an innovative technique, the entrepreneur has also invited
several third-party organisations for partnership in their retail store. Hence, as a result, a
shared economy supporting the mutual needs of each other has developed. Moreover, the
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organisation has also been leveraging resources and has been promoting products
understanding the needs of the customers.
Business models are important tools for entrepreneurs. It helps them to focus on the
important steps essential for the success of the business. It also helps them to achieve long
and short term goals. From the interview it is evident that no specific new business model has
been created by the entrepreneur. The entrepreneur has adhered to the business model of the
retail industry. However, before implementing the business model, they have developed
certain sets of objectives that they wish to achieve from their business. Raising huge profit for
the business, making feasible decisions necessary for sustainable running of the business,
identifying their potential weakness and communicating the stakeholders with their ideas
were some of the basic objectives. In order to maximise profit, organisation have developed
certain services that are free for the customers, however, premium services are chargeable.
Moreover, pricing of products is done by setting the selling price around three times the cost
of the product, in order to meet operational as well as overhead expenses.
Analysis of existing business to evaluate its prosperity
The retail business sector has been a promising business domain from the past couple of
years. This is because such business idea promises to offer a large number of different
products under a single idea. From the viewpoint of Rushworth et al. (2016), the entrepreneur
is largely responsible for the gaining purpose of business prosperity in terms of selecting the
suitable business strategy. The existing business structure considered for this report belongs
to the retail business sector. This business seems to be promising at the first sight because of
its consistent profit making scenarios. The entrepreneur has undertaken some of the following
innovative strategies for the purpose of effective management of the entrepreneurship
business:
Slow evolution of the business: The entrepreneur has made sure that the business is slowly
expanded in order to effectively analyze the outcome of the business expansion. This is
evident by the fact that the business started off with a handful of only ten employees. Within
a span of five years, the business has expanded enough to accommodate five hundred
employees. In this case, the business expansion was evaluated on the yearly basis.
Mobilization of the employees: The entrepreneur has ensured that all the employees are
rewarded properly for their hard works. As suggested by Almobaireek et al. (2017),
rewarding the employees on the basis of their work commitment, ensures that the employees
aim to improve their performance. Such rewards include increment in their salary, promotion
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to a higher designation. In addition to this, such rewards help in the objective of employee
retention in a company.
Business acceleration by innovation: The success of a business venture depends on its
capability to accommodate innovative business aids. Such online business aids help to reduce
the workload and make way for new business opportunities. These innovative ideas include
application of HRM for the purpose of effective management of human resources in the form
of employees. Using HRM such as SparkHire, it is easy to hire employees for the company as
compared to the manual hiring process.
Aspiring for quality business: The most important stakeholder of a business are the
customers. As per the suggestion of Sarason et al. (2018), the customer suggestions are the
key success factors for the significant growth of a business. An entrepreneur thus tries to
implement most of the suggestions given by the customer. In fact, an entrepreneur aims to
continue the quality business with the customers. This helps in the brand establishment of the
business. It has been often observed that customers tend to pay much more for a branded
product as compared to a product from a local company. This implies that brand name has a
direct link with the profit turnover of a company.
Effective communication
The change is identified to be an inevitable phenomenon that is bound to take place in an
entrepreneurship organization. This is because every entrepreneur aims to expand the
business irrespective of the size and volume of the company. Thus, it is necessary to
incorporate changes as per the requirement. As stated by Frigotto and Della Nives (2018), the
changes incorporated in an organization needs to be communicated in the organization for the
knowledge benefit of the employees as well as the stakeholders of the company. Thus, an
entrepreneur attempts to implement a change initiation by using the communication medium
of interaction. The changes include change of designation of the employees, change of the
office premises and change of hierarchy structures. As opined by Halim et al. (2017), the
changes are bound to have an impact on the individuals of the organization, in which the
change is being implemented.
The communication of the change is the first step of change implementation and this helps to
convince the employees for the change. The changes may have a positive effect as well as the
positive effect. According to Meyer (2017), in case the changes have a negative impact on the
employees, the employees tend to leave the organization. This is because, changes affect
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them greatly and they are not ready to bear losses due to the change. The changes are
presented to the employees along with the probable pros and cons of the change. In case,
there is an abundance of time, the perceived reactions of the employees are taken into account
and are thereby proceed accordingly. Such critical analysis helps to determine the chances of
conflict as a result of change implementation. In case of high risk of conflict arise due to
change, then a suitable plan may be kept ready to manage such a conflict. This will help in
the avoidance of unpleasant incidents within an organization. The effective way of presenting
the change to the employees is to declare the details of the change in a face to face direct
interaction. Rather than communicating over electronic medium such as telephone, email or
by formal notice. In addition to this, the suitable audience for such interaction is chosen
carefully so that proper conveying of the message related to change in circulated. This
ensures that no rumors about the change are spread and thus no wrong information is
circulated. On the contrary, the circulation of the positive information results in the
incorporation of new modifications that can be integrated in the existing plan of change
management. Also, the decision about a change is always taken based on the previous
instances of change implementation.
Recommendation and Conclusion
It can be concluded from the above report, that every individual entrepreneurship venture has
some unique innovative outcomes. This entrepreneurial venture is identified as the
materialization of an innovative business idea with a principal objective of profit making.
Thus it is recommended that for the purpose of such entrepreneurial ventures, innovative
business tools must be applied. Such tools include ScheduleOnce for the business schedule
management, Skype for managing the communications, Infusionsoft for the effective
management of customer relationships. It is also recommended for an individual looking
forward to low cost entrepreneurship ideas in order to avail the opportunity of online
entrepreneurship.
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Reference List
Ács, Z.J., Szerb, L. and Autio, E., 2016. Global entrepreneurship and development index
2015 (p. 1). Springer: Berlin.
Almobaireek, W.N., Alshumaimeri, A. and Manolova, T.S., 2017. Challenges to Venture
Growth in Emerging Economies. The SAGE Handbook of Small Business and
Entrepreneurship, p.454.
Amorós, J.E., Mandakovic, V. and Munoz, P.A., 2016, November. One size does not fit all:
revisiting regional entrepreneurship policy for enhanced entrepreneurial ecosystems. In ICSB
2016 World Conference Proceedings. International Council for Small Business.
Dentchev, N., Baumgartner, R., Dieleman, H., Jóhannsdóttir, L., Jonker, J., Nyberg, T.,
Rauter, R., Rosano, M., Snihur, Y., Tang, X. and van Hoof, B., 2016. Embracing the variety
of sustainable business models: social entrepreneurship, corporate intrapreneurship,
creativity, innovation, and other approaches to sustainability challenges. Journal of Cleaner
Production.
Frigotto, M.L. and Della Nives, V., 2018. Gender and the structuring of the entrepreneurial
venture: an effectuation approach. International Journal of Entrepreneurial Venturing, 10(4),
pp.412-434.
Halim, H.A., Ahmad, N.H., Ramayah, T. and Hanifah, H.M., 2017. Entrepreneurial readiness
towards venture creation among bop community. International Journal of Entrepreneurship,
21(2).
Meyer, H.H., 2017. Entrepreneurship in Innovation-Driven-Economies Defining Variables
determining entrepreneurial activities in Germany and Slovakia. MANAGEMENT IN
THEORY AND PRACTICE, p.88.
Roh, W., 2017. Social Entrepreneurship in Building our Economy. ThePPEREVIEW, p.60.
Rushworth, S., Vanevenhoven, J., Winkel, D. and Liguori, E., 2016. Applying
entrepreneurial action to explore entrepreneurship pedagogy: The entrepreneurship education
project. Journal of Business and Entrepreneurship, 27(2), p.1.
Sarason, Y., Yuthas, K. and Nguyen, L., 2018. Social entrepreneurial ventures in Vietnam: an
ideographic lens. Tạp chí Khoa học Đại học Đà Lạt, 8(1), pp.83-112.
Velayutham, S., Hasan, R. and Heoh, S.S., 2018. ASIAN CONFERENCE ON
ENTREPRENEURSHIP (ACE 2018) ENTREPRENEURSHIP ON THE “ONE BELT ONE
ROAD”.
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Zhao, F. and Collier, A., 2016. Digital entrepreneurship: Research and practice. In 9th
Annual conference of the EuroMed academy of business (pp. 2173-2182).
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