How is Innovation Playing Key Role in Entrepreneurship?

Entrepreneurship and Innovation

Entrepreneurship may be defined as an effort to do business in a fresh and inventive way,

which in turn reveals an individual/group's ingenuity and thereby acknowledges the
economic potential under provided constraints. Through design, innovation is the
implementation of something new. Until creativity, there is nothing new, and there will be
no change without anything new. If a company is not making any progress, on the
competitive market, it clearly can not stay significant.

Innovation comes in a variety of phases. First, it's the idea. This might come in a dazzling
burst and offers the foundation for the innovation. Then, comes the Solution. Now the idea
is coming to fruition. After fruition, there is, actually, the Transformation. That is when a
company or sector is transformed with the help of a solution.
Within the vast sea of innovation, businesses that face the most risk, close the largest gaps
and find the newest prospects are awarded by their customers and colleagues with the label
of real innovators and leaders.

Innovation = Creativity + Risk-Taking

Innovation is really the underlying explanation for modern life. Although innovation may
have certain unintended effects, progress is inevitable and, in most situations, innovation
produces positive change.

Types of Innovation

 Open: Open Innovation is where businesses use internal and external innovations to
help their activities progress. "Open innovation is the utilization of purposeful
inflows and outflows of technology to promote internal progress and broaden
opportunities for the external use of progress, respectively. Open innovation is a
more efficient way to develop, as it has the ability to decrease costs, improve time to
 market, maximize market competitiveness and generate additional revenue sources
when implemented correctly.

 Disruptive: Disruptive innovation occurs when new goods or services launch at the
bottom of the industry or marketplace but gradually push up and drive their rivals
out. It is the process in which an innovation replaces a current industry or business
by adding ease, comfort, usability and affordability where the status quo is the
complexity and high cost. Initially, disruptive innovation is established in a niche
market and may appear unattractive or contradictory to the incumbents of the
business, but eventually, the new concept or idea totally redefines the business.

 Reverse: Reverse innovation occurs as goods or services are first created for use in
developing countries. At its heart, reverse innovation explains innovations first
introduced in poorer, developing nations that later – and disruptively – find a niche
in wealthier, industrialized nations.

 Incremental: Incremental innovation is where businesses make incremental

improvements to goods and services to ensure that they retain a position in the
market. Incremental improvement often expands on what currently exists, instead of
fully altering the goods or services.
 Breakthrough: Breakthrough innovation, often widely referred to as revolutionary
creativity, introduces radically new theories and principles that do not produce any
existing goods, service suppliers or operations. Breakthrough technologies, often
created by research and development teams, frequently use emerging technology as
a way to move rapidly to the top of new markets. Examples of technological
technologies include transistors and the Telephone.

Key Role in Entrepreneurship:

Entrepreneurship is about Innovation. Innovative thoughts are what can distinguish you
from the others in the intensely dynamic universe that we live of. You're not just trying to
create an ordinary start-up, right? You need innovation to produce an excellent product,
solid identity and develop the customer network. Innovation does not just mean making
something new: Innovators often take something that already works, enhance it, change it,
make it different, and make it the best for their clients.

Innovation makes the company expand rapidly

In 2015, Deloitte had published an Innovation Survey that found that as many as 66 percent
of businesses have said innovation is essential to growth. The principle is straight forward.
Innovative companies are now more likely to ramp up their organization. You can do as
many other things as hiring more workers. Innovation lets you win more consumers and
carry on a greater market share. Innovation also makes it possible to expand the company,
whatever the size and type might be. You can have a small start-up, but there are so many
more chances of success in the sector of innovation. The same is true for a business which is
also listed in the Fortune 500. When a big company innovates, it will take on a bigger market
share.

Innovation helps create a profitable niche for yourself

The industry is big, and it's full of so many small companies and businesses that sell goods in
the same segment as you. Bottom line is: you're not alone! Yet there's a way you need to
stand out in all this noise. It is here where innovation will benefit. Using the right software,
you will potentially sell your clients something incredibly special. Another brilliant idea is
that you should take a popular product, add your own twist and give it a totally new shape,
which makes it many times better than the original form. That's what makes products stand
out on the market, and that also means more sales, obviously.
Innovation helps meet customer needs

Consumer demands in a highly competitive environment are diverse and continuously

changing. What you're bringing them today is likely to get a positive response on their edge.
But you can't be sure that the case will be the same tomorrow. They may be asking
something special. Indeed, innovative business strategies have the potential to predict
consumer trends long before they really arise and provide customers with options even
before they feel the need. This means most of the time, the buyers are happy. In reality,
meeting consumer needs is tough unless you put constant creativity into your company. If
you're satisfied with the status quo and fail to come up with fresh ideas, your company may
start to struggle. It is a must to come up with new ideas to excite your clients and impress
them if you want your company to stay relevant.

Innovation is important for future growth

Innovation is a very critical consideration from a future perspective in maintaining

sustainable growth for a company. It has a lot to do with introducing new business concepts
and goods that will give the overall potential sales a boost. Sustainable innovation also aims
to ensure existing offerings continue to satisfy consumer needs and can lead to potential
sales growth. A business willing to reinvent will stand firm even though the industry is
undergoing endless vagaries. Such a company is able to face any obstacles which can bring
about potential market shifts.

When your company is set, you can stagnate a little for some time and enjoy the results you
get. You may think the approach that works now is certainly going to succeed in the future
too. However, in fact, the status quo does not work for your company forever. You'll need to
keep your eyes open for interesting, innovative ideas and be willing to innovate from time
to time. It is important to pursue creativity on a regular basis, so you can reap the potential
benefits it offers.

Competitive advantage

Competitive advantage means the requisite advancements in capabilities which have the
edge over the industry's competitors. How precisely these depend on the business model
and the market in which you work. As already stated, one of the most important factors to
innovate is the desire of companies to get ahead of the market. Productive, creative
businesses should keep their processes, services and products responsive to the demands of
their customers and to changing business conditions.

In fact, according to Deloitte, just 12 per cent of the Fortune 500 firms from 1955 is still in
operation, and half of the S&P 500 firms will be replaced over the next ten years, which is
why it is critical to be able to adapt rapidly to external challenges.
Innovation increases the chances of reacting to developments and finding new prospects. It
can also help promote a competitive edge, as it helps you to create superior consumer
goods and services.

Maximize ROI

Improved competitiveness and constant improvement also impact efficiency and

productivity directly.

There is a significant gap in both sales (11 percent), and EBITDA (22 per cent) increases in
favour of the most innovative organizations, according to Global Innovation 1000. Such
figures indicate that creative firms are not only rising, but are much more competitive than
most.

Although calculating innovation's ROI can be difficult, especially at the outset or when
thinking about transformative technologies, engaging in innovation is also a better way to
boost the results than not innovating at all.

Increased productivity

Economic development is driven by innovation and technical advances, reducing

manufacturing costs and allowing for higher efficiency. If we look at this from an
organization's viewpoint, different automation approaches decrease manual, routine labour
and release time for more significant, value-creating activities.

Improved quality and performance make jobs more productive as less effort needs to be
expended on projects with low impact. The more time you will spend on activities that have
a significant effect on your company, such as optimizing procedures, fixing challenges or
having discussions with your clients, the more often you are be going to cut expenses,
improve productivity and have answers that will help your clients.

Positive impact on company culture

Last but not least, creativity also has a positive effect on organizational culture as it
improves the opportunity to learn, develop and allow the best use of talents, expertise and
abilities.

Practices of creativity will help to create a community of continuous learning, progress and
personal development. This sort of creative atmosphere will again inspire people to develop
the way they and their colleagues work continuously.
References:

http://www.jmeit.com/JMEIT_Vol_4_Issue_1_Feb_2017/JMEITFEB0401001.pdf

https://startupistanbul.com/blog/2015/03/the-importance-of-innovation-in-
entrepreneurship/

https://www.entrepreneur.com/article/319397

https://www.inc.com/gordon-tredgold/innovation-is-key-to-entrepreneurship.html

https://www.viima.com/blog/importance-of-innovation

https://www.businessnewsdaily.com/5167-innovation.html

https://medium.com/swlh/4-important-benefits-of-innovation-in-business-64ed0d78d150