Innovation, Entrepreneurship, and the Market: Opportunity and Growth

This essay examines the critical relationship between innovation, entrepreneurship, and market dynamics, focusing on how innovation requires entrepreneurship to thrive and penetrate markets. It evaluates how environmental and contextual factors either promote or constrain entrepreneurial practices, citing relevant examples. The essay emphasizes the importance of opportunity recognition and exploitation by entrepreneurs, who must navigate risks and challenges to introduce innovative products and services. It discusses how environmental factors like market accessibility, changing consumer demands, and government policies impact entrepreneurial success. Furthermore, it addresses the challenges faced by entrepreneurs, including funding, hiring, decision-making, competition, and marketing, highlighting the need for adaptability and strategic planning. The essay concludes by underscoring the dynamic nature of entrepreneurship and the necessity for entrepreneurs to foster creativity and accumulate ideas to succeed in competitive markets. Desklib provides resources such as past papers and solved assignments to aid students in understanding these concepts.

Innovation
Entrepreneurship and
the Market

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Entrepreneurship is all about opportunity recognition and exploitation.....................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation is the development of some new idea and thought into reality which is
different from the others and also symbolising uniqueness. But the entrepreneurs are the one who
always tries to manage the things including the innovation. Innovation and entrepreneurs are
related with one another and every entrepreneur wants to make the innovation so that the
business achieves success in great way (Milosevic, 2018). It is a known fact that entrepreneurs
are the one who have the ability something which is different from the other that is why they
start the business with some new and unique idea. Innovation requires the capability of the
individual to make something which is praised in the market and this can be done by the
entrepreneurs. In this report essay has been covered which is about “Innovation entrepreneurship
and the market”.
MAIN BODY
Entrepreneurship is about opportunity recognition and exploitation. Evaluate how innovation
needs entrepreneurship to flourish and enter markets. Explain how environmental and
contextual factors promote or constrain entrepreneurial practice with reference to
appropriate examples
Entrepreneurs are the one who have the capability to take all the challenges and risks
which are present in establishing any business. While innovation means to develop those things
which are new in the environment and is comprised of unique and new features. The
entrepreneurs have the capability to identify the opportunity which is present in the market so
that the new business can be established (Pashchenko, 2019). But for this they conduct a proper
research so that no mistakes can be made in the future term. In the beginning of the time
entrepreneurs have to conduct the research so that they could be able to launch and deliver the
new product and they conduct the research so that they can identify that whether the product will
suit the market demands or not. There are many entrepreneurs who have developed the business
with the great method and unique features in the products which are liked by the people in the
market. The entrepreneurs have to face two things which includes the risk and the opportunities
and from the opportunities they have to identify the best option which will be suitable in the
market and which will also work the best for the business. They conduct the research which is

used for launching new products and which will be helpful for them in identifying that factor
which will give them some idea to make and conduct some innovative products.
The opportunity recognition is the most important factor for the entrepreneurs because
they identifies the things in relation with what the other competitors are doing and what products
they are launching in the market (Wu and Si,2018). With that they develop the idea of making
innovation and what new things they have to add in the products. This is the start of making the
new innovation in the market and by conducting all the research in the market they develop the
new product.
Innovative idea not just comes in the mind all of a sudden as it requires proper
knowledge, research and exploring the markets to see what others are doing. It is a true fact that
what entrepreneurs can innovate cannot be done by others. But the idea which comes in the mind
of the entrepreneurs is because of the exploration of new markets and to check that what is being
required in the market. Innovation is not easy and that too in business it is not as simple because
every innovation requires good investment and that is the most challenging part of the business
and for which the entrepreneurs conducts the proper research which will be helpful for them to
make some innovative product or develop some innovative idea (Shankar and Narang, 2019).
For the business success it is very important the business needs to make success but for that
success it is also important that the business works and generate the idea of innovation.
Innovation is done when the entrepreneur goes down in the market and explore new things. It is
because when any person even if go to the market for gaining any new idea for the innovation it
is the sure fact that they will receive something new.
To flourish new markets and to conduct research it is equally important hat the
entrepreneur is willing to make to new innovation in the company. It is an obvious thing that the
entrepreneurs will make new innovation if they have to make success (Tokunaga, Martínez and
Crusat, 2018). But there are some business which are small in size and which does not wants to
make any innovation in the products as they are happy with the small profits which they at the
present time are earning. The entrepreneurs who are willing to take the risk and wants to make
innovation for the success of the business they will bear all the risk which is required to be made
in the business so that they can make and develop the innovation.

The environmental factors includes those factors which can affect the business and the
circumstances and in which there are many factors which affects the business and on the other
hand affects the practice of entrepreneurship. For starting any business it is important that the
entrepreneurs are having enough capital for conducting the operations of the business. For the
small entrepreneurs it is very difficult to arrange money to bring new technologies and conduct
innovation in the products (O’Dwyer and Gilmore, 2019). This is the important factor which
constrains the success of the entrepreneurs but apart from this there are other factors which
promotes the entrepreneurship. As the business environment is dynamic in nature so for them the
factors are always changing but the entrepreneurs have to find the opportunity in every
environmental factors (Spulber, 2019). There are many entrepreneurs who are experienced in
there field and identifies the factors which includes the accessibility of new markets which is the
most important and difficult one for the entrepreneurs as they have to conduct the research in this
according to the likes and dislikes of the consumers, those markets in which the demands will be
on higher pace which keeps on changing and if the entrepreneurs does not makes any changes in
the products or services in which they are dealing then it crates the problem for their survival of
the business.
The environmental factors on one side are very important because they bring out the most
in entrepreneurs so that they can build their mind. It is true that if any thing which is new for the
individuals and also important on the other side then they develop there minds and thinks on that
area also which they have never thought they would think (Pyka, Kudic and Müller, 2019). The
demand and supply of the products is the other important factor which at times creates the
problem to the entrepreneurs. It is because these factors are related with the economic factors and
if these factors are creating the problem to the entrepreneurs then they would not be able to make
success. It is also dependent on the economy which prevails in the country which at times is
constraining for the entrepreneurs and at times is promoting to the entrepreneur because the good
economy will always be fruitful for the entrepreneurs. The other factor is the policies of the
government which at times is flexible for the entrepreneurs and at times they are not. It is
because the policies of the government are not stable and they keeps on changing which has to
be faced by the entrepreneurs. The government policies are the main difficult which not just the
entrepreneurs but every single business has to face. Similarly with the entrepreneurs also who
have to face the problem of government policies which can bring opportunity to them if the

government is providing full support to them otherwise it can create the difficulty to the
entrepreneurs which will become very problematic for them and also for the growth of the
business (Lekmat, Selvarajah and Hewege, 2018).
Entrepreneurs are considered as a budding business venture owners which creates their
business in a contemporary market. For establishing themselves, they need to do various tasks as
well as faces many challenges. One of the most toughest challenges that they faces is about
funding. They are new in the business as well as doesn't have much experience that makes them
unable to attract investors whereas, an experienced business owner are able to generate funds for
its ventures by attracting the investors (Aljuwaiber, 2020). Along with this, hiring of the people
is an another challenge that entrepreneurs encounters. As it is important for them to hire the right
people for success of the organisation. In order to hire the individual, the organisation also
requires to have money to give individuals as salary. The people that entrepreneurs should have
the ability to fill the right position as well as willing to adapt to the working culture of the firm.
Several factors are to be considered while hiring the right candidate for the organisation such as
its education, skills, experience, behaviour and so on. The entrepreneur has the role of making
decisions of its organisation. These decisions could create a positive as well as negative impact
on the organisation. It posses a major challenge to them. A wrong decisions could affect the
whole organisation leading to major loss to the firm and even tends to shutting down of the
organisation. People critics the entrepreneur as they don't have much knowledge about the
business and less experience in this field (Hsieh, Molina and Weng, 2019). These people would
warn about the business idea and innovation of the entrepreneur thus making them discourage as
well as provide consequences of a failed leading the entrepreneur possessing a negative thought
and distract them from their business. In this contemporary world, the market is very challenging
there is numerous competitors.
The budding entrepreneur would encounter the challenge of competitors where they have
their established market. Many large organisation would taking the opportunity from a small
entrepreneur in establishing their business. Once the entrepreneur sets up its organisation, one of
the challenge is marketing which would be facing by them. Marketing play an essential part in
communicating about the products and service in the market as well as to the prospective
customers. This could helps in creating the business as well as could ruin the business if the
marketing is not done properly. The entrepreneur could use different types of marketing methods

and strategies, but this also requires funds to do. As a newbie enters into the markets, they e
could not be able to manage their time as they are sole proprietor and possess all the roles and
responsibilities of the firm such as from hiring the right candidate for the organisation to
maintaining the cash flows and finances, marketing of the company (Mason, 2018). This could
lead to wasting a precious time as every minute is critical for them which could costs them in
long run and for that, they need to allocate each and every minute to the organisation.
Environmental factor example- After establishing business, a entrepreneur has to face
competition from other new firms that will try to attract the attention of customers. Competition
can either make the business strong or will break it.
The entrepreneurship is very dynamic process that gets highly affected by contextual
factor. The contextual factor is the reflection in term of particular context that will build unique
characteristic in terms of unique and particular community, society, individual and group. These
factor can be act as promoting or becoming constraint of entrepreneurship.
Creativity and accumulation idea- This is the biggest challenge for every entrepreneur
that has to be deal to bring some point of creativity in brining ideas. This will become some
some original use of creator that will improve some point to be stand out from other competitors
through the idea of creativity in entrepreneurship process (Pisoni and Renouard, 2019). This will
promote the idea of entrepreneurship and consider as fresh idea from other competitors. This will
aid entrepreneurs to identify new innovative idea through accumulation through which they will
be able to run the idea in more successfully manner.
Social factor- Again social factor also become more promoting in order to encourage the
process of entrepreneurship. As this ultimately helpful for the society perspective and turn out to
be industrial revolution into glorious success. This will determine strongly affect the overall
behaviour that need to be contribute high growth of entrepreneur growth. The social setting will
promote overall balance growth to shape the believe, norms and values.
Risk tolerance- This type of contextual factor will act as constraint but entrepreneurs has
to take risk if they want to exploit maximum benefit of reward. This is the ability where it can
utilise some maximum advantage that may be generate. This will cover some tolerance of risk
that may be founded by the investor who are expecting some more return on investment in
business. Whereas they can not afford some point of risk that can be financial or emotional

towards the decision making may be termed as successful (Expósito and Sanchis-Llopis, 2019).
The entrepreneurship need to be more responsible for developing some essence of self efficiency
that will believe the overall risk that must be surmountable
Infrastructure- The overall expansion in terms of entrepreneur process will promoted
some develop kind of communication through facility of transportation. This will aid in terms to
enlarge large number of market which is ready to enlarge in horizon of business. This will
consider some instance with proper establishment in post telegram towards the horizon of
business. This will may be construct in terms of highway that need to be considerable in
entrepreneur activities that need to be consider. Along with these factor business association will
promote some more valuable aspect towards sustainability in entrepreneurship and during its
economy. This will collect information that will communicate for useful kind of action
Economic factor- This kind of contextual exercise will leads to direct some immediate
type entrepreneurship that is highly necessary due to generation of the opportunity. This will
counter some aspect like capital, labour, raw material and , market. If country economic
condition is at boom then it will definitely promote the process of entrepreneurship.
Contextual factor example- Contextual environment helps in identifying the difference between
types of markets like customer market and organizational market. This could cause a major
impact on the business.
CONCLUSION
From the above report it can be included that entrepreneurs and innovation is related and
will go hand-in hand together because it has been seen that entrepreneurs are the best in making
and innovation and conducting the best research about the things. Innovation is a difficult task
and also riskier one in the business especially. It is because it is not always sure that the
innovation will be successful which is made by the entrepreneur. But they are the one who take
all the challenges and risks for the innovation which they have to make to make their business
different from the others.

REFERENCES
Books and Journals
Aljuwaiber, A., 2020. Entrepreneurship research in the Middle East and North Africa: trends,
challenges, and sustainability issues. Journal of Entrepreneurship in Emerging
Economies.
Expósito, A. and Sanchis-Llopis, J.A., 2019. The relationship between types of innovation and
SMEs’ performance: A multi-dimensional empirical assessment. Eurasian Business
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Hsieh, Y. C., Molina, V. M. J. and Weng, J., 2019. The road to entrepreneurship with
impairments: A challenges-adaptive mechanisms-results model for disabled
entrepreneurs. Internastional Small Business Journal, 37(8), pp.761-779.
Lekmat, L., Selvarajah, C. and Hewege, C., 2018. Relationship between Market Orientation,
Entrepreneurial Orientation, and Firm Performance in Thai SMEs: The Mediating Role
of Marketing Capabilities. International Journal of Business & Economics.17(3).
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new venture, economic, and workforce development. Journal of Business Venturing
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Milosevic, M., 2018. Skills or networks? Success and fundraising determinants in a low
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AGRICULTIRAL PRODUCTION: THE MAIN STAGES. In Innovation and
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Conference on Emerging eLearning Technologies and Applications (ICETA) (pp. 633-
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