Entrepreneurship

Question: What isEntrepreneurship? Explain. Answer: Entrepreneurship is the process of setting up a new venture with the hope of obtaining returns from the same. Drucker (2014) depicts that entrepreneurship creates new niches and enterprises that start with conception and refinement of an idea. The entire process is started with the recognition process where an entrepreneur recognizes what business to ponder so that maximum profitability can be attained. The process is then supported by the rationalization and fantasizing procedure in order to depict the prime objective for the selected business along with the evaluation of the outcome (Crumpton 2012). The entire procedure is then analyzed through the feasibility test whether the outcome of the business procedure is beneficial or not. This assignment comprises of a brief introduction to the topic along with the arguments concerning the topic and evidence related to the innovation in entrepreneurship that finally wraps up with an overall conclusion of the assignment.Innovation can be p erceived as an idea that originates as a result of the changing demands of the world today. (Nicholas et al. 2009). The markets around the globe are varied. Tastes and preferences for various goods and services are always shifting. Consequently, an organisation that wishes to remain in the market must be innovative in the production of goods and services. Technological advancement has gone to a new level hence institutions must keep pace with the rapid changes. Innovation is also a conglomeration of various ideas that are joined to cause an impact on a society or a government. More often innovation is confused with modification or the improved form of something, but it should be made clear that innovation refers to a completely different item whereas improvement is a value addition exercise upon an already existing product or service. As a result, Kets (2014) illustrates that innovation leads to effectiveness and efficiency since it provides new solutions to the ever arising problem s. According to the viewpoint of Grenell (2014), creativity is to unleash the potential of the mind for bringing new ideas for better organizational approaches with a favourable outcome. Moreover, Maclean et al. (2013) highlights the comparison by stating that creativity is subjective and hence cannot be measures but innovation is the practical implementation of the through ideas and can be measured by its outcome. The importance of innovation can be defined through the changing demand of the market, where every customer demands customized products that will fulfil their requirement largely. Edwards-Schachter et al. (2015) Portrays that entrepreneur emphasizes on innovation for the longevity of their business by seizing the opportunity to innovate new products and business procedure. Tuunanen (2012) also depicts that innovation can be three types- technical, process and administrative and all these innovative theories are crucial for defining the benefits of the organization. Some o f the primary result for the innovation are great advantage over its predecessor, compatibility with existing systems and lesser complexity than its predecessor and can be easily adopted. Content The entrepreneurial spirit is triggered by the needs that arise in the society (Ellmeier 2009). People live within communities that require items that sustain their livelihoods. The items range from basic needs to the luxuries of life. In order to access the products and services, there must be people to avail them to them. This scenario has bred the idea of entrepreneurship since antiquity. For instance, the production of goods, transportation and distribution, marketing and after sale services is opportunities that people grab to make returns out of them. Pahnke et al. (2015) illustrates that the economy is dependent on the various industries that are created by the entrepreneurs. This implies that the business owners should strive to stay in the market not only for the benefit of their businesses but also for the sustainability of the economy. In recent times, there are thousands of enterprises and businesses in the economy, it is thus important for every business to survive and g ain maximum profitability, and hence innovation plays a crucial role in any business. Davenport (2013) however, illustrates that entrepreneurship produces financial gain through its user-friendly procedures. This can be well illustrated from the evidence that in conventional times, retailing like Tesco shops in New Zealand is done through only physical stores, which is not accessible throughout the day (Lamey et al. 2012). This organization though originated from England but expanded their business across the globe that is also an innovative approach for the betterment of their business. People living in a distant location cannot access the shop conveniently. Nambisan (2013) also depicts that introducing online services was a step towards innovating new business procedure. People are benefitted with the approach that it enhances the popularity of the business. People now access the store from anywhere and anytime of the day and can order groceries that is delivered to their resident s. Cui et al. (2015) also affirms that the payment procedure can be accomplished through these online services that enhance the popularity of this innovative online facility and overcome the challenge to shop by directly visiting the store. Moreover, competition is one of the major problems of entrepreneurship. The management of the firms is faced with the test of achieving the greatest market share so that their companies can make the highest sales. Grenell (2014) depicts that the competition can be so intense in that a company that does not lay adequate strategies can be wiped from the market. Nambisan (2013) stated that competition also manifests in the hiring of staff. Human resource is critical in the success of any business venture thus an organisation must be specific on the kind of employees to hire. Normally the organizations focus on the professionalism of the workers since they are trained in the business spheres. These ingredients can be vital on various sections of the business plan. Any successful business has a comprehensive business plan. Creativity is mostly used in the initial parts of the business plan (Gabrielsson et al. 2014). For instance, the identification of a business opportunity requires that the entrepreneur makes a very critical decision about the prospects of profitability of the business. Curran et al. (2011) mentioned that innovation is the only ingredient that can turn things around due to the dynamics of the world today. Innovative input in the production process will ease the marketing procedure since the product has all the characteristics that appeal to the customer. An increased worth through innovation also boosts the confidence of the customers; hence they are sure to obtain value for their money. An innovative company will therefore water down any competition in a bid to acquire a large market share (Florida 2013). Another aspect of the business challenge faced by an organization is the user-friendliness of the products they manufacture. Fichman (2012) portrays the major reason behind this is that there are several organizations in the same field and they are continuously working on formulating new technology for more customer preferences. Fichman et al. (2014) illustrating an example of the mobile companies. In traditional days, mobile phones are used only for making calls; however, in recent times, the innovative technology have progressed to such an extent that it has replaced the operational functionality of a clock, calendar, camera and even computers. Nylen and Holmstrom (2015) defines that Smartphone are the best example of the innovative and creative approach where a customer can perform everything with a single tough. The Internet can also be accessed through this device and the data within the phones are protected with the data encryption tools so that no intruder can use those data for illegal purpose. Moreover, these organizations also emphasize on another concern of their customer that is the environmental concern. Thus, Tuunanen (2012) depicts that every organization focuses on the use of eco-friendly products or using the creative concept of using the products by recycling the waste materials. The primary objective for adopting this business procedure is to reduce the use of the natural resources and help in reducing the emerging environmental problem of global warming and climate change. Stinchcombe (2010) highlighted another fact that in case of staffs that are untrustworthy, a creative solution can be sought as well. Normally, many institutions prefer to sack such employ ees without determining the root cause of the challenge. They end up causing very high turnover rates and reducing productivity. In this case, entrepreneurs can set realistic goals with control guidelines depicting the projected targets. The targets should include the profitability margins of the company so that the financial sector does not deviate so much. This idea is bound to reduce the rate at which money is embezzled in the organization. Innovation is also critical in the various projections of the cash flow and the profit and loss of the business. The rate at which the world is changing is so dynamic. Consequently, the formulae that were used in the years back are no longer applicable in the current situations. For more accurate forecasts, new formulae must be invented in order to calculate the possible future cash flows and the profits and losses of an enterprise. Conclusion It is hence concluded from the entire discussion that both creativity and innovation are the crucial elements of the advancement of the organization. Creativity requires the intellectual ability to suggest some idea that can improve the business procedure and enhance their profitability. While innovative approach signifies the application of those ideas for achieving the desired organizational objectives. Innovation also ensures the longevity of business by meeting every requirement of the society and its stakeholders. Another important aspect of the innovation in entrepreneurship is to compete with large industry. Some organization also provides training to their employee who has the ability to suggest creative ideas and welcome their thoughts. However, these innovative ideas should implement on a smaller scale for evaluating the outcome and if the outcome is favorable, the innovative idea can be deployed to the larger scale. The entrepreneurial remedies were to centre majorly on t he issues bordering on creativity and innovation. The first challenge was about competition where by the discussion explored various aspects of competition that the entrepreneurs face. The discussion then introduced the methods that are used to counter competition and all the solutions revolved around creativity and innovation. Furthermore, there was reference of the section in the business plan that addresses competition issues. Lastly, there was the mention of another challenge that also faces entrepreneurs, and that was financial constraints. The essay was very specific about the shortcomings which deter prospective entrepreneurs from achieving their targets. The question was demanding for a solution that would be fit to address the challenges that face entrepreneurs. Since the question was specific on the issues of innovation and creativity, it can be concluded that the discussion has been elaborate and at the same time very precise in tackling the question. Reference List Crumpton, M.A., 2012. Innovation and entrepreneurship. 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