Entrepreneurship and Innovation

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Entrepreneurs innovate. Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth. © Peter Drucker.

Innovation distinguishes between a leader and a follower. © Steve Jobs, Apple.

As time goes on, nothing remains the same in our world. Seasons, weather, relationships, human emotions, everything is affected by time- everything keeps changing. The same thing is in market industry. The progress is unstoppable and if one product is a hit today, it could most likely be replaced by another one hit tomorrow. When setting up a business, entrepreneur needs to learn how to deal with these constant changes of our life in order for the business to survive. In such
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In other words, just like cassette walkmans were replaced by CD-players in past and CD-players were replaced by mp3-players after that. Someday the new kind of music players will be invented and they will substitute the now popular mp3-players as well. New inventions will continuously create the new markets that will have benefits over the others but in time they will also be pushed back by the new improved ones. But what exactly does it all mean for entrepreneurship? It means that in order for the company to stay profitable, it has to keep in mind that if they go on producing their good unchanged, the same as it was first presented, it will certainly become less consumed by customers, as the better-developed substitutes will occur that will be more attractive for consumption. Just like the founder of Microsoft company Bill Gates (2005) has stated in one of his interviews “…we are always saying to ourselves: We have to innovate. We 've got to come up with that breakthrough.” This quote confirms that for Microsoft innovation is part of their work, otherwise they would not be doing as well as they doing now.
Speaking of Bill Gates, he actually makes a very good example of entrepreneur who gained a huge success by using the innovation. In terms with Schumpeter’s model, this is the case of new quality good creation and opening a new market afterwards. Everybody knows the story of Bill Gates and the Microsoft corporation foundation.
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