Discuss the relationship between entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship? Refer to both theory and examples from the business world to support your discussion.
The economy is composed of enterprises and businesses. Our economy has survived because the industry leaders had been able to adapt to the changing times and supplied mostly the communities’ needs. Entrepreneurship produces financial gain and keeps the economy afloat, which gives rise to the importance of innovation in entrepreneurship. Entrepreneurs are innovators of the economy. The importance of innovation in entrepreneurship is another key value for the longevity of a business. And, being innovative has helped us become successful in all our endeavors.This leads me to choose my higher education in “Master of Business Administration
Small Medium Enterprises “SMEs” is business or organization that usually starts in a home or small office, set of clients, depending on annual sales and funded by bank loans or
Entrepreneurs innovate. Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth. © Peter Drucker.
Innovation allows businesses to stay a step ahead of competitors. It also allows them to continuously improve their product or service. The importance of innovation is, at present, higher than ever due to global economic conditions enduring a very high ranking. Innovation can be viewed as the transformation of creative ideas into useful applications by combing resources in new or unusual ways to provide value to society. Small and medium sized enterprises (SME) need ambitious people to come up with new ideas through the use of innovation and entrepreneurial activity. If these new ideas are supported, the business will become successful which will lead to a growth in the economy.
Sustainable development is defined as “Development that meets the needs of the present generations without compromising the ability of future generations to meet their own needs” (IISD, par. 1 ).
The primary objective of these two books is sustainable development of private enterprise, and despite the fact that they have been in existence for a couple of years since production, the content and key topics remain extremely pertinent to current arguments about sustainability of the environment, and climatic change. The commitment made by the two books is best comprehended by viewing them in connection to the idea of sustainable development.
Change, innovation, and sustainability are common terms in the current global economy. Organizations need to keep the pace or lead the way to maintain its relevancy in the market and keep the competition at bay. Thus sustainability is the key to leading by innovation and change, to improve products and services, in order to remain at the top. Organizations achieve sustainability when they have the ability to develop, innovate, and implement changes that would lead to long term success (Froschheiser, 2014). For organizations to implement and commit to the constant change environment, or organic evolution of change, all stakeholders need to be willing and informed participants.
Companies live and breathe innovation; or, at the terribly least, notice it basic to their success. Such companies are those that others ought to emulate for they recognize that to do business, as Peter Drucker prompt in an exceedingly recent Harvard Business review article, “Every firm—not simply businesses—needs one core competence: innovation.”
In today’s knowledge-based economy, innovation has become the principal source of competitive advantages in global business; the success of firms now depends more on their intelligence capability – such as employee creativity – than traditional material assets (Amabile et al., as cited in Zhou, Zhang & Montoro-Sa ́nchez, 2011). The creative capability of individual and collective knowledge workers is the fuel that powers innovation in firms. While creativity leads to the production of new and useful ideas in any domain, innovation is the successful implementation of those creative ideas within an organisation (McLean, as cited in Zhou, Zhang & Montoro-Sa ́nchez 2011). In highly dynamic business environments innovation and creativity have become crucial for creating competitive advantages for the