Entrepreneurship And Business Innovation

By M. Isi Eromosele

Entrepreneurship is considered the process of doing something new (creative), and something different (innovative), for the purpose of creating wealth for the individual and adding value to society.

Business innovation is considered to be the introduction of new or significantly improved goods and services, or improved operational, organizational or managerial processes. Starting the right business at the right time requires more than just luck. It requires a structured process of entrepreneurial vision, market research, analysis and balanced decision making.

The fundamental activity of entrepreneurship is the creation of a new venture. The foremost step in any entrepreneurial venture creation process is the recognition of the opportunity by the entrepreneur. 

Opportunity recognition perceives a possibility for new profit potential through the founding and formation of a new enterprise, or through the significant improvement of an existing one.

The idea for an entrepreneurial business is not always necessarily associated with an opportunity, but is often aligned with innovative business practices. Other factors must exist to support the new product idea for it to become an opportunity, as potential customers must want the product.

Business Innovation

Business innovation is considered the introduction of new or significantly improved goods/services or improved operational, organizational or managerial processes. Innovation is a process of taking new ideas through to satisfied customers. It is the conversion of new knowledge into new products and services.

From an enterprise perspective, innovation can be considered the renewal by application of new technologies, methods and procedures at the cutting edge of business. Innovation should always be aligned with the market requirements, producing better products at more competitive prices; at a better fit to customer demand.

In simple terms, innovation can be defined as the process that transforms ideas or concepts into commercial value for the benefit of the enterprise and the customer. Business innovation is closely aligned with proactive planning which links creating value and increasing efficiency, and therefore, growing the value of the business.

Without innovation, new products, new services and unique ways of doing business would not exist. From an entrepreneur’s perspective, innovation is the key driver of competitive advantage, growth, and profitability.

Entrepreneurship

Entrepreneurship comprises three underlying dimensions: innovation, risk-taking, and proactiveness. Within this philosophy, innovation refers to the seeking of creative, unusual or novel solutions to problems and needs.

This includes the development of new products and services as well as new processes and technologies for performing organizational functions. Risk-taking involves the willingness of the entrepreneur to commit significant resources to opportunities that could lead to failure.

These are risks which are perceived as calculated and manageable. Proactiveness is concerned with the implementation and creation of events.  Accomplishing a task through managed risk and adopting those business techniques that best meet the circumstance through innovation and change are central to the concept of entrepreneurial process.

From a more outcome-based perspective, entrepreneurship can be defined by its results rather than by its characteristics. There are five processes that entrepreneurs are recognized as performing, namely:

• Introducing a new product or service in the market or implementing a new approach to a social problem; 
• Developing and implementing a new technology that lowers costs and improves efficiency 
• Opening a new market by introducing products, services or technology not previously available
• Discovering a new source of supply for a scarce resource or methods of increasing the supply from existing resources by more efficient exploitation
• Reorganize an existing enterprise, either private or public, by innovative management

The concept of entrepreneurship can be regarded as an innovative path of creation. Entrepreneurship is an ongoing process of developing ideas, creating opportunities and interactions which finally eventuate as outcome.

The creation of a new enterprise or a different product requires a creative action. To set up an enterprise or to find a better way to develop a project demands the aspiration to think and to act differently. The role of creativity clashes with conventional thinking in some respects as creativity cannot be taught but must be experienced.

Wholesomely, entrepreneurship can be defined as a creative business whose fundamental purpose is to create value by innovatively bringing together resources to exploit opportunities for the purpose of wealth creation.

M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

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