Entrepreneurship, Creativity, and Innovation: Business Analysis

This report delves into the concepts of entrepreneurship, creativity, and innovation within the context of the recruitment firm, Austin Fraser. It defines entrepreneurship, emphasizing the roles of innovation and creativity in driving business success and profitability. The report explores the characteristics of successful entrepreneurs, highlighting the importance of identifying market opportunities, managing capital, and fostering innovation within an organization. It then examines key challenges faced by entrepreneurs, such as cash flow and time management, marketing strategies and business growth, as well as the advantages and disadvantages of entrepreneurship, and the role of innovation strategies for business expansion and competitive advantage. The report concludes by discussing the crucial role of innovation in enhancing brand image, cutting costs, and gaining a competitive edge, while also acknowledging the potential drawbacks of innovation, such as high research costs and uncertain returns. This report provides a comprehensive analysis of entrepreneurship, creativity, and innovation in the business landscape.

Entrepreneurship
Creativity and
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ............................................................................................................................................1
What is entrepreneurship, creativity and innovation?............................................................1
Key challenges........................................................................................................................4
Advantages and disadvantages...............................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship is related to the business which is set up by an individual or in
partnership. In this, entrepreneur has to take some risks to increase their profits in the market as
compare to other small businesses. Along with this, innovation and creativity plays an important
role in the entrepreneurship. On the basis of their ideas, they will be able to increase their profits
in the market (Schaltegger and Wagner, 2011). The present report is based on Austin Fraser
which performs their operations in the recruitment field. The consultancy firm focuses on their
innovative services so that they can attract number of customers. The below mentioned report is
based on the innovation and creativity in a business.
TASK
What is entrepreneurship, creativity and innovation?
According to the Santos (2012), entrepreneurs are the people who initiate the business to
increase the economy. It is not only related to the business but business with some innovation
and creativity so that people can fulfil their needs. They have to take some risks in their business
so that they will be able to get high returns on the basis of their investments. As per the view
point of George and Bock (2011), he said that entrepreneur can be defined as a person who
identify some situations in the market so that economy can be improved. Along with this, they
have to perform some actions before establishing any business like:
 They have to identify opportunities in the market for making profitable investments.
 Exploring the business which they are going to start so that the growth can be achieved in
the United Kingdom.
 The entrepreneur has to arrange their initial capital so that business can be established.
It has been critically analysed by the Navis and Glynn (2010), every person who
established their business for a specific purpose they have to become more creative and
innovative so that high quality services can be provided to the customers. Creativity is related to
the generation of new ideas by involving all the employees in the decision making process. On
the other hand, innovation is the transformation of ideas into physical products so that overall
performance can be improved (Fillis and Rentschler, 2010). Creative people are more productive
than any other because they will be able to generate more revenues. On the other hand,
innovation is an ability through which these ideas can be implemented in the environment. Along
1

with the creative and innovative, entrepreneur should have ability to solve the issues, face all
challenges and make plans according to the trends in the market. These innovations can be
related to the new products, new production methods, new markets and new forms of the
business organization (Boons and Lüdeke-Freund, 2013). So, the businessman should have such
skills so that they can launch services in the market as per the appropriate methods. For example,
Austin Fraser is the small medium enterprise that deals in the recruitment of employees and they
provide consultancy services to the organization so that they can perform better. The manager of
this enterprise should have innovative and creative skills so that they will be able to improve the
overall performance. There are some characteristics of the entrepreneur so that they can take
some innovative decisions in order to provide high quality services to their customers. These
characteristics are:
 They look for different patterns and analyse them on the basis of their past data so that
growth can be improved in future.
 A person who is lazy can perform brilliantly in the organization and they are the one who
can identify new ideas for their business (Huarng and Hui-Kuang Yu, 2011). For
example, the CEO of Apple believes that a lazy person is more productive because he can
identify an easy way to do the work.
 An innovative person can understand the creative process and identifies the ways to solve
the issues which may arise in the complex situation.
 The person will be able to do multiple projects at a time and through this they will be able
to increase their profits.
As per the view point of Lee and Hsieh (2010), there are some core competencies of a
businessman that help them in achieving the success in the market. Some of these are human
relations ability, clear objectives, communication skills, technical knowledge, and self
confidence as well as so on. On the basis of these, the person will be able to attain their targets
and improve position in the country (Innovation, Creativity, and Entrepreneurship Institute.
2017).
2

(Characteristics of Entrepreneur, 2017)
It has been critically argued by the Morris, Kuratko and Covin (2010) that Austin Fraser
can use some of the innovation strategies in order to attract number of customers towards their
services. Along with this they will be able to generate more revenues as compare to other small
business enterprise. Some steps are involved in the innovation strategy and these steps are:
First the entrepreneur has to establish clear goals and objectives because vision can help
the firm in directing towards success. After that, open communication should be their between
management and employees so that level of satisfaction can be increased among all workers. The
3
Illustration 1: Characteristics of Entrepreneur, 2017

firm should reduce the gap between top management and bottom management. After that the
entrepreneur have to create a sense of ownership so that all specified targets can be achieved.
Rewards and recognition should be given to staff members so that motivation level can be
increased among all the people who are working in Austin Fraser. The person or owner should
have capability so that they can tolerate the risks and failure and they should not feel
demotivated (Zahra and Nambisan, 2012). Further, remove all those projects that are not
beneficial for the firm. These innovation are necessary for the small business enterprise so that
they can improve their brand image in the market than any other company.
Key challenges
Every entrepreneur has to face challenges to get success in the market. Austin Fraser
faces some issues in the market regarding to their business operations that they deliver to the
companies. Some of these key challenges are:
Cash flow management: Cash is an asset of the business organization and small
organization faces some issues regarding to the management of cash. It is difficult for an
entrepreneur to manage their cash who newly establish their business in the market. If inflow of
cash is more than outflow than firm can get success than any other small business enterprise.
Time management: This is another issue that is faced by the entrepreneurs because when
a person gets involved in more than one business at a time than they will be not be able to
manage their time (Creativity, innovation and entrepreneurship: a new prescription for health
care. 2017).
Hiring employees: When entrepreneurs hire employees in their business organization
then it will take some time to select right kind candidate for their particular job profile. In this,
first they collect all resumes and after screening they select candidates as per their need (Dacin,
Dacin and Matear, 2010). So this is a long process that will take time in accomplishing goals.
Marketing strategy: Entrepreneurs does not know about the marketing strategy that they
have to be followed to increase their sales. Some of the strategies are like advertisements, social
sites and so on. So, Austin Fraser has to adopt these to increase their recruitments.
Capital: when any person is going to start his own business than they face challenge
regarding the initial capital. So, they have to identify the sources from that they can start their
own business.
4

Business growth: Sometimes, the firm will not be able to improve their growth in the
market due to some factors like lack in capital, human resources and so on. Austin Fraser has to
increase their number of employees so that they can improve their position.
Self doubt: Every entrepreneur should be self confident so that they can establish their
business in the country. If they are not confident for their business then they will not be able to
increase their profits. When any person establish its business than at first their life is not
enviable. There are many factors that may demotivated the entrepreneur like they will not be able
to achieve growth on time and so on. So, Self motivation is necessary in order to perform well
than any other market player.
Advantages and disadvantages
It has been critically analysed by the Dacin, Dacin and Matear (2010), he said
entrepreneurs are the one who established their business on the basis of some innovative and
creative ideas so that economic growth can be improved. Every person should possess some
skills who are going to established their business some of these skills are like innovation , self
motivation, creative and so on (Ellis, 2011). There are some advantages that are attached with
the entrepreneurship like in this kind of self business the entrepreneur is the boss. Along with
this, the person have freedom to set his own goals and objectives according to their schedule and
their ideas. All profits that are earned by the business organization that will goes to the owner of
Austin Fraser. When they get success in the market then through this they can maintain their
social status. In this, entrepreneur provide employment to others and he will also work as an
employee in order to reduce the gap between all workers. However, it can be critically argued
that the drawback is also associated with the entrepreneurship. Some of the disadvantages are
there like risks are attached with the companies that business will not be able to improve their
growth as well as their profits than any other competitors. Along with this, there is no guarantee
that they will be able to get success in future so its profits are also uncertain. Mostly
entrepreneurs do their work in long hours at the introductory stage so that they can established it
with a good brand image. Income of the people are not fixed it is varied from time to time as per
the trend in the market. So these are some limitations that are attached with the entrepreneurship.
As per the view point of Trimi and Berbegal-Mirabent, (2012), he said innovation is
necessary for Austin Fraser so that they can attract number of customers towards their companies
services. Through innovation techniques all the ideas can be transformed into the reality and
5

after that services are implemented in the market. The advantage of innovation is market
expansion that through this the small medium enterprise can expand their business at global level
and their image can be improved. Along with this, Austin Fraser will be able to cut down their
cost of the services and on the basis of that profits can be increased. Entrepreneur is less
dependent on their employees because technology can enhance the productivity of the enterprise.
Businesses can gain the high brand recognition by providing the high quality products to the
customers. On the basis of the innovation the small medium enterprise will be able to attain
competitive advantage as compare to other organisations. However, it can be argued by Burns,
(2010) that some drawbacks are also associated with the innovation such as the research that is
conducted by the company in the market is very expensive that cannot be affordable for small
businesses. Investors have to wait for a long time in order to get their returns and there is no
guarantee that profits can be increased or not. In order to get the competitive advantage, the firm
have to produce innovative ideas and this will require investment in the projects so that
customers demands can be identified (Dacin, Dacin and Tracey, 2011). Sometimes, more
innovative services are not acceptable by the customers because they don't want to take risks as
they are risk averse so sales cannot increased in the market. People who are working in Austin
Fraser should know how to manage the technological services and how they can provide quality
services to their service users.
CONCLUSION
From the above mentioned report it has been concluded that innovation and creativity
should be there in the entrepreneur. Entrepreneurship is the business that is established by an
individual or in partnership so that economy can be improved. A person should have some skills
such as risk taker, self confident, hard worker and goal setter. On the basis of these, a
businessman can achieve success in the market. Innovation should be there in the services of
Austin Fraser so that they will be able to attract number of customers. They can also provide
quality services to their service users. Furthermore, training and learning are also necessary in
order to develop the entrepreneurial creativity.
6

REFERENCES
Books and Journal
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-the-
art and steps towards a research agenda. Journal of Cleaner Production. 45. pp.9-19.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Dacin, M.T., Dacin, P.A. and Tracey, P., 2011. Social entrepreneurship: A critique and future
directions. Organization science. 22(5). pp.1203-1213.
Dacin, P.A., Dacin, M.T. and Matear, M., 2010. Social entrepreneurship: Why we don't need a
new theory and how we move forward from here. The academy of management
perspectives. 24(3). pp.37-57.
Dacin, P.A., Dacin, M.T. and Matear, M., 2010. Social entrepreneurship: Why we don't need a
new theory and how we move forward from here. The academy of management
perspectives. 24(3). pp.37-57.
Ellis, P.D., 2011. Social ties and international entrepreneurship: Opportunities and constraints
affecting firm internationalization. Journal of International business studies. 42(1). pp.99-
127.
Fillis, I. and Rentschler, R., 2010. The role of creativity in entrepreneurship. Journal of
Enterprising Culture. 18(01). pp.49-81.
George, G. and Bock, A.J., 2011. The business model in practice and its implications for
entrepreneurship research. Entrepreneurship theory and practice. 35(1). pp.83-111.
Huarng, K.H. and Hui-Kuang Yu, T., 2011. Entrepreneurship, process innovation and value
creation by a non-profit SME. Management Decision. 49(2). pp.284-296.
Lee, J.S. and Hsieh, C.J., 2010. A research in relating entrepreneurship, marketing capability,
innovative capability and sustained competitive advantage. Journal of Business &
Economics Research. 8(9). p.109.
Morris, M.H., Kuratko, D.F. and Covin, J.G., 2010. Corporate entrepreneurship & innovation.
Cengage Learning.
Navis, C. and Glynn, M.A., 2010. How new market categories emerge: Temporal dynamics of
legitimacy, identity, and entrepreneurship in satellite radio, 1990–2005. Administrative
Science Quarterly. 55(3). pp.439-471.
Santos, F.M., 2012. A positive theory of social entrepreneurship. Journal of business ethics.
111(3). pp.335-351.
Schaltegger, S. and Wagner, M., 2011. Sustainable entrepreneurship and sustainability
innovation: categories and interactions. Business strategy and the environment. 20(4).
pp.222-237.
Trimi, S. and Berbegal-Mirabent, J., 2012. Business model innovation in entrepreneurship.
International Entrepreneurship and Management Journal. 8(4). pp.449-465.
Zahra, S.A. and Nambisan, S., 2012. Entrepreneurship and strategic thinking in business
ecosystems. Business horizons. 55(3). pp.219-229.
Online
Creativity, innovation and entrepreneurship: a new prescription for health care. 2017. [Online].
Available through: <https://www.dovepress.com/creativity-innovation-and-
entrepreneurship-a-new-prescription-for-heal-peer-reviewed-article-IEH>. [Accessed on
17th February 2017].
7

Innovation, Creativity, and Entrepreneurship Institute. 2017. [Online]. Available through:
<https://www1.villanova.edu/villanova/business/centers/ice.html>. [Accessed on 17th
February 2017].
8