Pros and Cons on Innovation and Entrepreneurship
innovation and entrepreneurship
innnovation and entrepreneurship
I decided to merge these two word together because they go hand-in-hand with each otherHERE’S WHAT YOU’LL LEARN:
- The relationship between innovation and entrepreneurship
- Definition of innovation
- A simple definition of entrepreneurship.
Innovation and entrepreneurship are like two sides of a coin, both the same yet so different and you possibly cannot take one out leaving the other, first let’s look at what each of these words really mean.
Innovation simply means the ability to either do new things in old ways or old things in new ways, innovation is all about making a difference, standing out, being unique all of which comes from having great ideas and a different approach of doing things. A person mustn’t be too predictable and he shouldn’t be known as a ‘’one way ticket’’ man, innovation in a way also means creativity, creativity is the foundation of being innovative because it is through creativity that one can come up with innovative ideas.
Innovation matters- but it doesn’t happen automatically, its riven by entrepreneurship- a polite mixture of using passion, energy, enthusiasm, insight, judgement and plain hard work which enables good ideas to become reality.
Entrepreneurship on the other hand means can be described as the act of pulling resources together in order to start an enterprise, the main purpose of an entrepreneur is to start a business enterprise from the root and take it up to the top most level of his capabilities or that of others.
Entrepreneurship is a human characteristic which mixes structure with passion, planning with action, tools with wisdom to use them, strategy with the energy to execute it and judgement with the propensity of risk.
Innovation and entrepreneurship is not just about having a bright idea. Conventional approach to entrepreneurship too often assumes that the business idea and concept have already been identified, and that the main job to do is to develop a business plan and to raise resources to implement this. However, in my experience, identifying, assessing and refining an idea and developing this into a business concept is a big part of the problem. Many of the problems entrepreneurs and innovations experience can be traced to the weaknesses in the early process of the business.
This has major implications for how we manage creativity and translate ideas into innovations. While the initial idea may require a significant creative leap, much of the rest of the process will involve hundreds of small problems-finding and solving exercises- each of which needs creative input, the former may need the skills and inspiration of a particular individual, the latter requires the input of many different people over a sustained period of time. Developing the light bulb or the post-it note or any successful innovation is actually the story of the combined creative endeavour of many individuals. We now look at some factors that involves entrepreneurship and innovation.
- Recognising the opportunity:
Innovation triggers come in all shapes and sizes and from all sort of directions. They could take the form of new technological opportunities or changing requirements on the part of markets; they could be the result of legislative pressure or competitor action. They could be a bright idea occurring to someone as they sit or they could come in as a result of buying in a good idea from someone outside the organisation and they could arise out of dissatisfaction with social conditions or the desire to make the world a better place in some way.
The message is clear, if we are going to pick up these trigger signals then we need to develop some pretty extensive antennae for searching and scanning around us and that includes some capability of looking into the future.
- Finding the resources:
The trouble with innovation is that it is by its nature a risky business. You don’t know at the outset whether what you decide to do is going to work out or even that it will run at all yet you have to commit some resources to begin the process. So how do you build a portfolio of business which balances the risk and the potential rewards? Of course that decision is even more tough for the first time entrepreneur trying to launch a business based on an idea, the choice there is whether or not to go forward and commit what may be a huge investment of personal time, mortgage, family, life etc. even if they succeed there is then the problem when they try and grow the business and need to develop more good ideas to follow the first.
- Developing the venture:
Having picked up relevant trigger signals, made a strategic decision to pursue some of them, found and mobilised the resources we need. The next key phase is actually turning those potential ideas into some kind of ‘’knowledge tapestry’’ gradually pulling together different threads of knowledge about technologies, markets, competitors and weaving them into a picture which gradually emerges as a successful innovation.
Early on, it is full of uncertainty but gradually the picture becomes clearer but at accost. We need to invest time, money, people to find out via research and developments, market studies, competitor analysis, prototyping, testing etc. in order to determine if the innovation is going to work, developing a robust business plan which takes all into consideration at the outset is one of the key elements in entrepreneurial success.
Throughout this innovation phase, we have to balance creativity by finding bright ideas and new ways to get around the thousand and one problems which emerges. It will be unwise to throw all that money away that is why organisations now take risk management cautions with uncertainty lurking in the shadows.
Eventually the product will be launched in some kind of market place that and people might actually get to use the products and services and the business can grow on its own from there with the right implementation of policies.
- Creating value:
Despite all our efforts in recognising opportunities, finding resources and developing the venture they is no guarantee that we will be able to capture the value from all our hard work. We also need to think about and manage the process to maximise our chances by finding the balance between quantity and quality because truth be told we possibly cannot satisfy everybody.
The line that merges innovation and entrepreneurship is very thin yet so vital in the soaring and downfall of an entrepreneur’s enterprise. in order to become an entrepreneur and venture into owning a business venture, you must first be an innovator, innovation has to do with the way we do things that is different from others, the people before you and the people coming in behind. This is what distinguishes an entrepreneur and his enterprise from other entrepreneurs in his chosen field.
There a are couple of factors that causes change in innovation:
- Product innovation:
Changes in the things products/services which an organisation offers
- Process innovation:
Changes in the way in which they are created and delivered
- Position innovation:
Changes in the context in which the products/services are being produced
- Paradigm innovation:
Changes in the underlying mental models which frame what the organisation does.
In order to run a business successfully for a long period of time, an entrepreneur has to change with the tide, the strategy that worked a decade ago may no longer be relevant in today’s world, so in order to stay ahead of the game, an entrepreneur’s strategy and concept must have a complete overhaul every ten years and keep revolving during that period. All of these can be summed up into one word ‘’innovation’’.
Innovation has some people may have it doesn’t necessarily mean doing simple things in a complex manner or doing complex things in a more complex manner, it simply means finding the most effective and efficient way to portray your message and ideals to the world in a way best suited for you.INNOVATION AND ENTREPRENEURSHIP…..
So there you have it. With great innovation comes a great benefit. Just in case you didn’t get what I’m trying to say, well here’s a highlight of the post.
- There can be innovation without entrepreneurship but what you can’t have is entrepreneurship without innovation.
- Innovation is the first stage in the entrepreneurial process.
I know you probably have a thought or two going through your head right now as to whether I’m spot on, so feel free to add to what I’ve said so far now do you agree with me on my highlighted aspect of innovation and entrepreneurship?
innovation and entrepreneurship
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© 2016 oladipupo ajibola