Role of Entrepreneurship and Innovation

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“They have employed existing means of production differently, more appropriately, more adventurously. They have “carried out new combinations”. They are entrepreneurs” – Joseph Schumpeter (Lumsdaine and Binks, 2007). Entrepreneurship is a procedure through which individuals identify opportunities (problems that need to be solved or unmet needs) in the market place, allocate resources, initiate change by being innovative and creative and create value through solutions. One of the Factors of Production to produce goods or services is Enterprise with Land, Labour and Capital; an entrepreneur combines all other factors of production by enterprise, which is actually problem solving, risk taking and creativity, to come up with innovative…show more content…
Sam Walton imagined using his creativity, what if there is a discount store in the city which buys everything in bulk from the country side and uses its own transport for delivery of good to the store, would the consumers buy from there at lower prices rather than going to other stores in the city with higher prices. He just used his creativity to solve the problem and Innovated world’s first and most successful Discount Store, Wal-Mart. Sam Walton, in his autobiography, said, “If you think about it from the point of view of the customer, you want everything: a wide assortment of quality merchandise; the lowest possible prices; guaranteed satisfaction; friendly, knowledgeable service; convenient hours; and a pleasant shopping experience. You love it when a store exceeds your expectations, and you hate it when a store inconveniences you, gives you a hard time, or pretends you’re invisible.” (2011). When he opened his first Wal-Mart store, no one imagined he was introducing a retailing formula that within a generation would impact the lives of millions of people. Wal-Mart Stores grew gradually but at a good pace and then reached to the position it has achieved today. In 1975, it employed only 7500 employees, 125 stores with Sales of $340 billion. In 1983, The Forbes Magazine ranked it no.1 General retailer for the eighth year straight. In
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