Entrepreneurship and innovation

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What in your view is the relationship between entrepreneurship and innovation? What makes an organisation entrepreneurial? Select an organisation of your choice and state what its entrepreneurial features are and how it is different from other organisations.

Entrepreneurship is the process by which there is change and creation with the help of energy and passion leading to creation and implementation of new innovative ideas which gives solutions to the society. Ref: Donald F. Kuratko (2009), ‘Introduction to Entrepreneurship' The Revolutionary Impact of Entrepreneurship: 2-28. Entrepreneurship is the art of carrying out a business with some innovative idea. Entrepreneurship is incomplete without innovation. Entrepreneur has to work towards innovation in order to attain favourable outcomes. For example Kodak Company was not able to sustain the innovation made by companies, who brought up the idea of digital cameras and with their outdated technology they were swiped off the market share they had. By using process of innovation an entrepreneur are able to convert opportunities i.e. the ideas into solutions which can be marketed. Ref: Donald F. Kuratko (2009), ‘Introduction to Entrepreneurship' Creativity and Innovation: 110-132.

There is vital importance of entrepreneurship and innovation in today's economy. In the present time when business leaders are having problem in coping up balancing short-term survival with long-term demand for growth, innovation and an entrepreneurial mindset is essential. Ref: (Newswire Today, Atlanta, GA, United States, 08/12/2009). The companies which will innovate can survive during this period as the economy is facing a slowdown as innovation is only the way to get out during tough time. The innovation has to be done keeping in mind various factors like keeping a reality check of the company i.e. the core business should be strong, every process has to be integrated i.e. technology, business models and process and it should be done taking into account the strength of the company. The innovation involves various steps like applying rigor i.e. doing activities like brainstorming, get the information from the customer, learn from the players in same industry, testing the idea before it is launched and getting the first mover advantage. By doing the above stated steps the company will get prepared for innovation as they will have information about the market and customer viewpoint before launching the product. Ref: http://www.entrepreneur.com/magazine/entrepreneur/2009/february/199724.html.

“Entrepreneurship and innovation inherently thrive in downturns; in fact, some of the world's largest companies were born during a recession,” says James S. Turley, Global Chairman and CEO of Ernst & Young. During the time of recession the fit companies only survive and they require stepping up with new technologies and innovative idea in order to make customer to buy their products. Innovation has reached up to a level which is beyond just developing a new product but also reinventing the business processes and reaching to the market s where customer needs are not satisfied. Ref: Business Week, April 24 2006, Even in Europe the innovative entrepreneurs are making ‘New Europe' Ref: Ruta Aidis and Friederike Welter (2008), ‘Introduction' The cutting edge Innovation and entrepreneurship in new Europe: 1-10. The companies which are not performing innovation in the current scenario would find difficult to survive during financial crunch. Innovation is very important for the point of view of customers as the customers always demand extra. They always want more and more in the same amount they spend. For instance Coke Cola Company just had normal coke but with time they came up with diet coke understanding the demand of customers as they are getting health conscious.