Global Innovation and Entrepreneurship

M. Isi Eromosele

The developing of greater business skills is only one aspect of entrepreneurship. Today’s big issues and challenges are interdisciplinary in nature and require input and solutions from expertise in multiple fields.

Entrepreneurship is the application of invention and generally requires a background in business. In that respect it is more than just technical innovation, but encompasses everything necessary to get a product to market.

Business models and technology need to collaborate. Product, process and business model must all be aligned. Apple is a perfect example of all three in harmony. Using the iPod to illustrate: Product is the iPod. Process is downloading music. Business model is the great innovation.

Entrepreneurship is critical to the development and wellbeing of society. Entrepreneurs create jobs. They drive and shape innovation, speeding up structural changes in the global economy. They contribute indirectly to productivity by introducing new competition. Entrepreneurship is thus a catalyst of economic growth and national competitiveness.

According to the Organization for Economic Cooperation and Development (OECD), high levels of entrepreneurship exist but are mostly informal and not original, which explains the high failure rate in the early stages of a business.

To maximize development of quality entrepreneurship, it is essential to improve the ability of entrepreneurs to innovate with scalable products or services that provide greater value.

The creation of technology-based start-ups has emerged as the bedrock of global economic growth and better living standards around the world, as countries shift from an industrial to an information age. Promoting innovative entrepreneurship is thus a central concern for global policy makers.

In the past, governments built infrastructure such as roads and power grids to further economic development. But the infrastructure and institutions needed today are different.

Instead of  ensuing stability, governments must be open to accommodating technologies that disrupt industries and markets; instead of  investing directly in promising technical innovations, they need to resist the temptation to prejudge the future or assert control and instead ensure that platforms exist for creativity to emerge.

Moreover, rather than appeal to a parochial sense of protectionism, governments should consider promoting the free-low of information, goods and people within and across their borders.

There is no single approach that is best suited to engendering entrepreneurial success. If  supported well, entrepreneurship need not be the exclusive purview of  just a handful of exceedingly smart or lucky individuals, but can be fostered in many people in multiple ways.

Innovative entrepreneurship has become the cornerstone of economic growth in the developed world. It is the source of jobs and high living standards for individuals, as well as great benefits for society in the form of technical progress and economic development.

Promoting innovative entrepreneurship is therefore a central concern for government and industry. To achieve this, a myriad of solutions have been proffered, which is itself a reliable indication that no one really knows how to do it for sure.

Huge amounts of financial and human resources have been poured into fostering an environment for innovative entrepreneurship to thrive with mixed results.

New sorts of policies, infrastructures and institutions must be established to stimulate and sustain a new era of global business. It has to be one where nimble, globally-minded startups rather than bloated bureaucracies are the motor of economic development.

We must discover anew what these policies, infrastructures and institutions are and find the best way to provide them. It won’t be delivered in the same way as in the past or with the same set of stakeholders.

Government can act as a catalyst to greater private action without serving as the agent of action itself. It should invest in upstream areas, such as education, as well as remove obstacles and encourage new forms of investment. It should not reward failure, but simply minimize the consequences when it inevitably occurs.

Just as nations established the infrastructure for the physical flow of goods in the past, today it must support platforms that facilitate the flow of information. Government and industry can create the platforms to tap into people’s creativity in whatever way it is expressed, rather than regard innovation as the domain of a small handful of people.

Enlightened policy should promote entrepreneurship without pre-guessing the specific technological form that it takes. Intellectual property must be protected, but at the same time must not be so strict that it restrains innovation.

Importantly, public policy should take after the very thing it hopes to promote and embrace risk, experimentation and diversity. Provided the right balance is established, innovative entrepreneurship can flourish to the benefit of society.

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

Copyright Control © 2012 Oseme Group

Entrepreneurs: Think Big Do Good Reach Out

By M. Isi Eromosele

2012 has shown that the world requires a new kind of entrepreneur, one that has long-term vision and a firm dedication to social responsibility.

The changes brought about by the Arab Spring, financial crises sweeping across Europe and the United States and extreme climate change have sparked a wave of uncertainty worldwide.

From the U.S. and Europe where people are frustrated by income equity to the Middle East and Asia where many have lost trust in the existing political and economic status quo, the world is ripe for change and ready for a new framework of governance where wealth creation is accompanied by social enterprise and justice.

The transformations triggered by the anti-corporate demonstrations organized in North America and Europe has created a unique opportunity to change the way entrepreneurs and entrepreneurship are viewed.

The reputation of entrepreneurs must undergo a brand transformation. Entrepreneurship should not be viewed solely as the hunt for short-term profits, but should stand for a dedication to long-term innovative businesses and a commitment to wealth creation and social enterprise.

Some past world aid programs have distorted organic social entrepreneurship in favor of a top-down approach; entrepreneurs should instead look toward empowering those at the bottom of the pyramid to eradicate poverty in their communities.

Assistance should be provided to promote social enterprises and equip those at the bottom of the economic pyramid with the required technical know-how and infrastructures to run their businesses.

Increasing urbanization has put renewed pressure on cities to meet the demands of growing populations and competition for limited resources. Cities should take an active role in promoting entrepreneurship in order to raise the number of jobs and to benefit from more innovative and sustainable technologies.

At present, there is a major disconnect between politics and entrepreneurship. In order to bridge the gap between these two entities, entrepreneurs should be encouraged to take a more active role in supporting cities and cities should try to motivate and push entrepreneurship at more tangible and practical levels.

Infrastructural investment should be aimed at empowering individuals to start their own enterprises and to improve the status quo.

Currently the majority of educational systems around the world are products of the past industrial revolution curriculum, where there is very little emphasis on entrepreneurship.

In order to equip students with the necessary skills and information required to start successful businesses, entrepreneurship needs be encouraged in educational institutions as an integral element of ongoing curricula.

The promotion of social entrepreneurship and problem-solving enterprises need to be encouraged in order to forestall future problems and provide sustainable solutions to global citizens.

All these point to entrepreneurship in all its forms, as one of the most sustainable ways to find enduring answers to these global challenges. Most countries are eager to create wealth and improve existing economic and social conditions for their citizens.

Entrepreneurs will be pivotal in addressing these challenges. They are the ones who transform challenges into opportunities, find innovative solutions, deploy sustainable organizations and take risks.

The world needs this enlightened approach that will see entrepreneurs and entrepreneurship as playing key roles in formulating solution to its current challenges.

The creation of wealth and social justice are two sides of this crucial coin that is wholesomely important to the future of the world’s economic and social well being.

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

Copyright Control © 2012 Oseme Group

Global Entrepreneurship

By M. Isi Eromosele

Entrepreneurship is a necessary ingredient for stimulating economic growth and employment opportunities in all societies. In the developing world, successful small businesses are the primary engines of job creation, income growth, and poverty reduction. As such, government support for entrepreneurship is a crucial strategy for economic development.

The culture of a community also may influence how much entrepreneurship there is within it. Different levels of entrepreneurship may stem from cultural differences that make entrepreneurship more or less rewarding personally. 

A community that accords the highest status to those at the top of hierarchical organizations or those with professional expertise may discourage entrepreneurship. A culture or policy that accords high status to the “self-made” individual is more likely to encourage entrepreneurship.

Successful entrepreneurs come in various ages, income levels, gender, and race. They differ in education and experience. But research indicates that most successful entrepreneurs share certain personal attributes, including: creativity, dedication, determination, flexibility, leadership, passion and self-confidence.

Determination is the extremely strong desire to achieve success. It includes persistence and the ability to bounce back after rough times. It persuades the entrepreneur to make the 10th phone call, after nine have yielded nothing. For the true entrepreneur, money is not the motivation. Success is the motivator; money is the reward. 

Flexibility is the ability to move quickly in response to changing market needs. It is being true to a dream while also being mindful of market realities. A story is told about an entrepreneur who started a fancy shop selling only French pastries. But customers wanted to buy muffins as well. Rather than risking the loss of these customers, the entrepreneur modified her vision to accommodate these needs.

Passion is what gets entrepreneurs started and keeps them there. It gives entrepreneurs the ability to convince others to believe in their vision. It can’t substitute for planning, but it will help them to stay focused and to get others to look at their plans.

Self-confidence comes from thorough planning, which reduces uncertainty and the level of risk. It also comes from expertise. Self-confidence gives the entrepreneur the ability to listen without being easily swayed or intimidated.

The entrepreneur’s challenge is to balance decisiveness with caution, to be a person of action who does not procrastinate before seizing an opportunity and at the same time, to be ready for an opportunity by having done all the preparatory work possible to reduce the risks of the new endeavor.

Through careful analysis of entrepreneurs’ successes and failures, economists have identified key factors for up-and-coming business owners to consider closely. Taking them into account can reduce risk. In contrast, paying them no attention can precipitate the downfall of a new enterprise.

Motivation

What is the incentive for starting a business? Is it money alone? True, many entrepreneurs achieve great wealth. However, money is almost always tight in the startup and early phases of a new business. Many entrepreneurs do not even take a salary until they can do so and still leave the firm with a positive cash flow.

Strategy

What is the strategy for distinguishing the product or service? Is the plan to compete

solely on the basis of selling price? Price is important, but most economists agree that it is extremely risky to compete on price alone. Large firms that produce huge quantities have the advantage in lowering costs.

Realistic Vision

Is there a realistic vision of the enterprise’s potential? Insufficient operating funds are the cause of many failed businesses. Entrepreneurs often underestimate start-up costs and overestimate sales revenues in their business plans.

Some analysts advise adding 50 percent to final cost estimates and reducing sales projections. Only then can the entrepreneur examine cash flow projections and decide if he or she is ready to launch a new business.

A prospective entrepreneur needs to come up with a good idea.  This will serve as the foundation of the new venture. There are many ways to look for ideas.  Read a lot, talk to people, and consider such questions as:  What limitations exist in current products and services?  What would you like that is not available?  Are there other uses for new technology?

Is society changing?  What groups have unfulfilled needs?  What about people’s perceptions?  Growing demand for healthy snacks created many business opportunities in the United States, for example. 

To be successful, entrepreneurs should distinguish their ventures through differentiation, niche specification and innovation.

Differentiation is an attempt to separate the new company’s product or service from that of its competitors.  When differentiation is successful, the new product or service is relatively less sensitive to price fluctuations because customers value the quality that makes the product unique.

Niche specification is an attempt to provide a product or service that fulfills the needs of   a specific subset of consumers.  By focusing on a fairly narrow market sector, a new  venture may satisfy customer needs better than larger competitors can. 

Changes in population characteristics may create opportunities to serve niche markets. One growing market segment in developed countries comprises people over 65 years old.  Other niches include groups defined by interests or lifestyle, such as fitness enthusiasts, adventure-travel buffs, and working parents.

Innovation is perhaps the defining characteristic of entrepreneurship. Innovation is change that creates a new dimension of performance  There are two main types of product innovation.  Pioneering or radical innovation embodies a technological breakthrough or new-to-the-world product.  Incremental innovations are modifications of existing products.

Innovation, differentiation, and/or market specification are effective strategies to help a new venture to attract customers and start making sales.

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

Copyright Control © 2012 Oseme Group

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

Copyright Control © 2012 Oseme Group

The Meaning Of Being Entrepreneurial

By M. Isi Eromosele

Entrepreneurs tend to start ventures that build on specific skills they've already developed and knowledge they've already acquired in a certain occupation or industry. But all entrepreneurs tend to share other, more general skills such as great communication, team-building, and creative-thinking skills.

The idea of entrepreneurship has struck a responsive chord. It is a phrase well suited to our times. It combines the passion of a social mission with an image of business-like discipline, innovation, and determination commonly associated with, for instance, the high-tech pioneers of Silicon Valley.

The time is certainly ripe for entrepreneurial approaches to global business problems. Many governmental economic efforts have fallen far short of our expectations. Major business sector institutions are often viewed as inefficient, ineffective, and unresponsive. Business entrepreneurs are needed to develop new models for a new century.

It is true that many of the entrepreneurs have in mind to serve their function by starting new, profit-seeking business ventures, but starting a business is not the essence of entrepreneurship.

The entrepreneur always searches for change, responds to it, and exploits it as an opportunity. The notion of opportunity has come to be central to many current definitions of entrepreneurship.

An opportunity, presumably, means an opportunity to create value in this way. Entrepreneurs have a mind-set that sees the possibilities rather than the problems created by change. Starting a business is neither necessary nor sufficient for entrepreneurship. Not every new small business is entrepreneurial or represents entrepreneurship.

The heart of entrepreneurial management is the pursuit of opportunity without regard to resources currently controlled. Entrepreneurs not only see and pursue opportunities that elude administrative managers; entrepreneurs do not allow their own initial resource endowments to limit their options.

Entrepreneurs mobilize the resources of others to achieve their entrepreneurial objectives. Conversely, administrators allow their existing resources and their job descriptions to constrain their visions and actions. Once again, we have a definition of entrepreneurship that is not limited to business start-ups.

For true entrepreneurs, mission-related impact becomes the central criterion, not wealth creation. With business entrepreneurs, wealth creation is a way of measuring value creation. This is because business entrepreneurs are subject to market discipline, which determines in large part whether they are creating value. If they do not shift resources to more economically productive uses, they tend to be driven out of business.

Entrepreneurs are innovative. They break new ground, develop new models, and pioneer new approaches. Entrepreneurs need not be inventors. They simply need to be creative in applying what others have invented. Their innovations may appear in how they structure their core programs or in how they assemble the resources and fund their work.

This willingness to innovate is part of the modus operandi of entrepreneurs. It is not just a one-time burst of creativity. It is a continuous process of exploring, learning, and improving. Of course, with innovation comes uncertainty and risk of failure.

Entrepreneurs tend to have a high tolerance for ambiguity and learn how to manage risks for themselves and others. They treat failure of a project as a learning experience, not a personal tragedy.

And yes, I consider myself to be an entrepreneur.

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

Copyright Control © 2011 Oseme Group