The Role of Innovation in Shaping Entrepreneurial Ventures

This essay delves into the intricate relationship between innovation and entrepreneurship, highlighting their significance in driving business success and economic growth. It distinguishes between the two concepts, defining innovation as the introduction of new ideas that add value, while entrepreneurship focuses on the commercial aspects of business. The paper argues that entrepreneurs are innovators who leverage innovative measures to implement new ideas, creating economically successful ventures. It explores various forms of entrepreneurship, including intrapreneurship and social entrepreneurship, emphasizing that innovation is crucial for introducing entrepreneurial activities. The essay also discusses how entrepreneurs utilize innovation as a tool to address social and environmental concerns or to diversify businesses. Furthermore, the paper acknowledges that while innovation is a key characteristic of an entrepreneur, not all entrepreneurial activities require innovative ideas, as entrepreneurs can also implement existing innovative ideas. It concludes that successful entrepreneurs are those who can identify market requirements, incorporate innovative skills, and understand the potential of new ideas, thereby contributing to economic development.

Running head: ENTREPRENEURSHIP AND INNOVATION
ENTREPRENEURSHIP AND INNOVATION
Name of the Student
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Author Note

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The areas of innovation and entrepreneurship are very important for all business
processes. Entrepreneurs adopts innovative measures in implementing new ideas, which
results in vitalizing the economy. On the other hand, established firms utilize innovative
processes to implement a new strategy for competitive edge (Puccio, Cabra and Schwagler
2017). The purpose of the paper is to understand the relation and distinction between the two
terms, innovation and entrepreneurship. The paper tends to argue on the innovative skills of
entrepreneurs. In the paper, entrepreneurship and innovation will be discussed separately
followed with the role of innovation in the process of becoming an entrepreneur. The paper
will also stress on the relation and classification of the concepts of innovation and
entrepreneurship.
“If innovation is the creation of new capacities for wealth creation, entrepreneurship
is the exploitation of these capacities”, as stated by Delia Smith of Greenfield Ventures
(Spinuzzi, Jakobs and Pogue 2016). Entrepreneurship and innovation are different in
conceptual basis. Introducing a new idea or change, which results in adding value to a person,
process or organization is known as Innovation. On the other hand, entrepreneurship is
majorly directed towards the commercial aspects of business environment. However, the
concept or skills are interrelated as the act of leveraging innovation into creating new idea
and value is known as entrepreneurship (Gedik, Miman and Kesici 2015). Entrepreneurs are
the innovators in whichever stage of business they are associated with, as the competencies
and skills in the creation of values and implementing the values in the business environment
by the process of commercialization helps in the creation of an economically successful
innovation. Innovation can simply be an idea of taking a shorter root to office but it cannot
add up value at a large scale. Innovative ideas can be generated every single day but linking
entrepreneurship with innovation can lead to the utilization of its commercial potential.
Entrepreneurs are of various forms, intrapreneurs (within an established firm), social
entrepreneurs (for non-profits causes) and private entrepreneurs (single owner) (Aflaki and

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Petridou 2016, pp. 189). Entrepreneurs at all levels and stages are known for incorporating
innovative measures for presenting a different idea as an offering in the market. The
innovative measure can be for addressing social and environmental concerns or for the
diversification of a company or simply a new business venture, innovation is crucial for the
introduction of entrepreneurial activities in the business environment (Smith, Rees and
Murray 2016, pp.191). Countries and organizations focus on the intersection of the two
processes and the roles of innovators and entrepreneurs. The activities, which are very
popular in Australia, are the research ability of collaborating innovation with entrepreneurial
skills for the purpose of commercialization. Australia have established hubs in supporting the
process of intersection of ideas with entrepreneurship. One of the example can be the Stone
and Chalk hub, which facilitates collaboration for the purpose of commercializing ideas in
between entrepreneurs of Fintech, government and corporate firms. Be it Australia or any
other part of the world, entrepreneurs practice the process of innovation for implementing the
potential of an idea.
Innovation is used as a tool by the entrepreneurs. Entrepreneurs uses innovative
ideas and methods in the implementation of business idea. Innovators involves in the idea
generation within two aspects business and technical. Technical innovation leads to an
invention whereas innovation in terms of business is termed as entrepreneurship. Innovative
skills is the key characteristics of an entrepreneur. A very popular notion about entrepreneurs
are that they utilize innovative measures for the implementation of commercial potential of
an idea. However, entrepreneurship does not always deal with profit making business
venture, social entrepreneurs contribute to the society and environment by adopting
innovative measures for addressing the issues and concerns. Creating a new project in an
already existing business setting also involves innovative skills for the process of
intrapreneurship. For instance, Apple came up with the introduction of iPod when the market
was use to the idea of Walkman. Apple is a great example of successful intrapreneurial

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activities as it recognized the opportunities without the need realization of the customers;
they used innovation and facilitated entrepreneurship activities (Parris and McInnis-Bowers
2017, pp.687). Moreover, not everyone is considered as an entrepreneur, the individual who
identifies the opportunities and utilizes the tool of innovation leads towards successful
entrepreneurship. According to the view of Kirzner, entrepreneurs are capable of recognizing
opportunities and understands the market requirements for introducing new business ventures
by incorporating innovative ideas (Colombelli, Krafft and Vivarelli 2016, pp.277). Therefore,
as per Schumpeter, entrepreneurs are defined as the individuals who creates and affects the
economic structure by dynamic disequilibrium and innovation in the process of
commercialization of a new idea which did not existed before (Shah and Tripsas 2016, pp.
285).
However, it has been observed that not every entrepreneurial activities can be linked
with the tool of innovation. Entrepreneurs are more than an innovator. Entrepreneurship
process may include entrepreneurs who utilizes an already existent innovative idea for
implementing the idea with its potential outcome (Badulescu and Cadar 2016, pp.277).
Entrepreneurs’ main function is to implement a new idea by using the skills and quality of
flexibility, accepting challenges, discipline as well as the capability of sourcing resources.
Moreover, understanding the capability of a new idea is also considered as entrepreneurship,
which does not require entrepreneurs to introduce innovative ideas themselves (Badulescu
and Cadar 2016, pp.277).
Therefore, it can be concluded from the paper is entrepreneurs are innovators as they
identifies the market requirement without the realization of the customers and incorporate
innovative skills in constructing a new business venture. Successful entrepreneurs cannot
exist without the skills of incorporating innovation in the step of forming new business or
social venture. Entrepreneurs understands the potentially of an innovative idea thereby giving
meaning to an innovation. By using the tool of innovation, entrepreneurs influences the

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growth of an economy. Entrepreneurship functions consists of various steps of which
innovation in the first step towards success. Responding to market requirements marks the
need for innovative measures. Entrepreneurship without the presence of innovation will not
be considered as a starting a new idea. Not every start up owners are considered as
entrepreneurs. Individuals with risk taking abilities, disciplinary standards and ability to
innovate can only add value to the society and business environment.

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References:
Aflaki, I.N. and Petridou, E., 2016. Innovators for the Public—How Norm and Social
Entrepreneurs Fulfill the Promises of Democracy. In Entrepreneurship in the Polis (pp. 189-
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Badulescu, D. and Cadar, O., 2016. Romania: Many entrepreneurs but few innovators.
Colombelli, A., Krafft, J. and Vivarelli, M., 2016. To be born is not enough: the key role of
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Gedik, Ş., Miman, M. and Kesici, M.S., 2015. Characteristics and attitudes of entrepreneurs
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Parris, D.L. and McInnis-Bowers, C., 2017. Business not as usual: Developing socially
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Smith, L., Rees, P. and Murray, N., 2016. Turning entrepreneurs into intrapreneurs: Thomas
Cook, a case-study. Tourism Management, 56, pp.191-204.
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the challenges of entrepreneurship communication. UT Faculty/Researcher Works.

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