Essay on Business and Management_ Entrepreneurship and Innovation

Innovation is an important element for many businesses towards developing new practices to create a unique selling proposition in a market. Many companies usually seek the development of new opportunities towards innovation and since this provides them with a clear advantage in the market. The Entrepreneurs who are more focused on innovations have more improved chances of succeeding in their respective fields (Burger-Helmchen, 2017, p. 2). When companies focus innovation, they have a high chance of getting an advantage in the industry.

Through innovation, the company is able improve on its competitive advantage. This occurs mainly in situations where the businesses are dealing with products which are similar or in cases where they need to develop new products which are more efficient or have better costs and thus stands out in the market (Burger-Helmchen, 2017, p. ). With the advancement of new innovations, the stand of a company is improved in the market and this improves its competitive advantage (Morris et al., 2010, p. 55). Though new innovations, the company improves on its revenue income and hence its productivity. Through innovations, the company is able to dominate in its respective industry. The entrepreneurial companies engage in innovations to be able to differentiate themselves and their products to those of their rivals.

Innovation further helps the business to grow in its entirety. The innovation is not a necessarily important factor just for large firms but also for the startup (Morris et al., 2010, p. 68). Through innovations, the business is able to expand on their reach and increase the number of goods a business deals in which increases the chances of meeting the needs of many buyers (Burger-Helmchen, 2017, p. 4). Also, through an increase in the value of the existing products, innovation increases the reach. Though there are many strategies that companies use to expand, innovation is a more effective way in achieving the growth of an organization.

Innovation by entrepreneurial businesses helps in ensuring that the needs of the customers are met. The customer needs are always changing with time and through innovation, the needs of the customer can be constantly met through realizing immediate as well as the long term needs (Dopfer, 2018, p. 77). When the needs of the customers, there is a need to read the patterns as well as innovate when there is a need for the same. The need and abilities of a company to be high responsive in the market is an important factor to ensure it remains relevant in the industry at all times (Morris et al., 2010, p. 85). Through new innovations, the customers get excited and this helps in ensuring that they remain loyal to the company (Dopfer, 2018, p.). Therefore, the best strategy to meet the diverse needs of the customers is through ensuring that the company is able to meet the innovations needed.

Companies also seek innovations to be able to employ and attract the best employees. The innovative companies are the best platforms which innovative and talented employees seek to improve on their service delivery (Burger-Helmchen, 2017, p. 5). Such employees look for platforms where they can be exposed to new ideas which can improve on their skill set. Therefore, Entrepreneurial organizations use innovation to ensure that they remain attractive to the most qualified, skilled and innovative employees in the market.

Therefore, innovation by Entrepreneurial firms helps in ensuring that a company remains unique in its immediate market. Through innovation, a company is able to remain highly attractive and innovative and ensures that it attracts innovative employees. It further ensures that it meets the desired needs of the customers. Through innovation, a company is able to remain competitive in the immediate market. These reasons are the main aim as to why the Entrepreneurial companies tend to focus more on innovations.

References

Burger-Helmchen, T. (2017). Entrepreneurial organizations. Encyclopaedia of Creativity, Invention, Innovation and Entrepreneurship, 1-5. https://doi.org/10.1007/978-1-4614-6616-1_208-2

Dopfer, M. (2018). Why business model innovation matters to start-ups. Entrepreneurial Innovation and Leadership, 77-85. https://doi.org/10.1007/978-3-319-71737-1_7

Morris, M. H., Kuratko, D. F., & Covin, J. G. (2010). Corporate entrepreneurship & innovation. Cengage Learning.