Entrepreneurship and Innovation

Task 1

1 Evaluation of classical and corporate approaches to entrepreneurship

Entrepreneurial main function is to discovery, assessment and exploitation of opportunities in form of new product, services, production processes, new strategies and new market for products and use of inputs that didn't previously used. At the initial stage of business, entrepreneurs are shy and humble but at the development process they become more enthusiastic and confident. Basically highly enthusiastic and innovative entrepreneurs are exist only in developed countries where economic and technological development level are high (Drucker, 2014).

A classical entrepreneur is one who is concerned about the customers and marketing needs through the development of the self supporting venture. A classical entrepreneur is stereotype entrepreneur whose main aim is to maximize his economic returns at a level of consistency and survive in long time period with or without an element of growth. Peter Drucker defines the entrepreneurship in terms of taking risk and spending time as well as capital on uncertain venture. Justpark company are based on the classical entrepreneurship strategy where company develop new technology in order to solve the parking problems. In a big cities parking is one of the big issue for a vehicle holder so that company will be develop mobile app it can be assess by any one at any where. This system is only applicable for those vehicle who have GPS that helps in to track the space of parking of in a particular area it can be effectively out by the mobile app. Uses of this mobile app is uncertain and its productivity will be uncertain if any one of entrepreneur came up with this technology that it reduces the attractivity of Justpark mobile app.

There are uncertainty it will be define into three categories;

• Risk which is statistically measurable.
• Ambiguity which is hard to measure statistically.
• True uncertainty which is impossible to estimate or predict statistically.

Corporate entrepreneurship is considered as renewal of existing organization by modifying their existing product and services. It refers to the development of new of ideas and opportunities within the established organization. It helps in improvement in organizational profitability and enhancement in the competitive position of organization in market place. Being as a larger company, new business in now a days are very challenging, Larger organizations downsize their business in order to cutting cost and firing of unnecessary and less productive employees (Kirzner, 2015). Corporate entrepreneurship is basically the renovation of existing product in order to meet varies customer demand and expectations. Corporate entrepreneurship in existing business takes majors changes in entire organizational spectrum from product and process to technology and administration. Modification in existing product line helps in to maintain their sustainable position in market place through this they can improve their product life cycle when they are saturated by the production system and technology. Modified product doesn't need the market awareness, and doesn't need of target customers because they already have a customer base after the modification customers are attracted towards the modified product in to maintain their brand loyalty.

2 Role of creativity in innovation process and approaches through which creativity can be developed as individual

Entrepreneurship is a way of thinking, reasoning and acting that is opportunity obsessed, holistic in approach and leadership. Creativity is also an attitude, the ability to acceptchange and newness, a willingness to play with ideas andpossibilities, a flexibility of outlook in a ways to improve it (Satell, 2017). Creativity isalso a process. Creative person work hard and continuallyto improve ideas and solutions, by making gradualalterations and refinements in their works. Creativity is the ability to produce new and unique ideas while innovation is the implementation of that creativity. In creativity there are two factors that are essential for the success of an innovation is creativity management and knowledge management because innovation is a key component of an entrepreneurship. Innovation are considered as process of idea generation and their implementation. Innovation is the complex process of conceptual combination, problem finding, information search and evaluation. Problem finding is the process of problem defining, it can be internal and external. If problem are discovered by individual it is an internal and if problem are suggested by someone is called external. Information research is the second part of the innovation process where additional information are finding so that extensive knowledge and skills are required to find creative solution from alternative course of actions against related problem.

Creativity mainly depends on the idea communication at a single level where problems and ideas are rotated and communicated in order to gain valuable information from others. Invention is the synonym of innovation but not exactly same it is about creating something entirely new to the world. Innovation process consist of finding a problem and creating in a way to solve the problem. It always associated with creativity in order to combine different ideas and practices in anew productive way (Storey, 2016). Innovation process can be divided in to many stages. First three stages includes environmental scanning and developing ideas. Main purpose of innovation is to reduce production cost, increase of product quality and capture new product market.

Following elements ofinnovation:

• Challenge: What we are trying to change or accomplish-the “pull”
• Customer focus: Creating value for your customers – the“Push”
• Creativity: Generating and sharing the idea(s)- the“brain”
• Communication: The flow of information and ideas –the“life blood”
• Collaboration: People coming together to work togetheron the idea(s) – the “heart.”
• Completion: Implementing the new idea-the “muscle”.
• Contemplation; Learning and sharing lessons lead tohigher competency-the “ladder”
• Culture: The playing field of innovation includes:
• Leadership :(sees the possibilities and positions the teamfor action-the role model)
• People: (diverse groups of radically empowered people innovate –the source of innovation)
• Basic values: (trust and respect define and distinguish an innovative organization-the backbone).
• Context: Innovation is shaped by interactions with theworld.

Approaches to innovation process:

Idea driven innovation-This approach generates and collects a number of ideas that are filtered until suitable one is selected. Once an idea is selected it goes under development process. The lead time for this process is one to five years. Justpark adopt this approach due to volatility in market and developing mobile app with short life-cycles, such as fast moving consumer needs and changes in the technological factors (Faria, 2015.).

Research driven ideas- This approach collects a huge number of ideas that are generated during the research after that they are continuously filtered out during the development process of innovation until completion of process. Innovation process has several stages so that ideas are used according to the requirement of stage and remaining are rejected. Research-driven innovators have a smaller group for developing the mobile app for easy parking facility.

Analysis driven innovation- This approach generates ideas in a systematic way from analysis of the market, competitors and the organization's internal capabilities. There is a set of controlling strategy which projects will be initiated and when. Once a project is selected for development that time chances of discontinuity are very less. That kind of projects takes one to five years and is favored by organizations that support if changes in market condition and offer products with long life-cycles, such as automotive manufacturers and software producers.

Task 2

3 Role and significance of Entrepreneurship & innovation in country economy

Key to economic development is innovation and creativity and they both comes from a mind full of ideas and thus both the qualities are possessed by the person who starts his/her unique set of businesses, which typically in business language known as Entrepreneur. A Entrepreneur with his skills and abilities bring such marvelous creations in the industry that cater to the needs of the people living on the planet in a significant way. One such mixture of innovation and entrepreneurship is JUST PARK which as discussed above has been dealing with a device that tracks the space for parking of vehicles with the help of GPS. How it works is, when a person who wants to park their vehicle at a certain location, he/she will track the place where the place is open for parking in the nearby area and this will be shown on the personalized app made by Just Park, so that it reduces time and diesel of the customer in finding the required place.

In developing countries, the process of economic growth largely depends on entrepreneurial activities of population. Lifting the living standard of people in the city will eventually lift the standard of economy of the city too. This type of innovation has been very useful in uplifting the economy of the country. GPS and other enhancements raise productivity, reduce and avoid costs, save time, enable improved and new production processes, products and markets, increases health and well-being, reduces injury and loss of life, improve environment and security too increases (Karlsson, and Warda, 2014). Through the use of technique which is brought by Just Park consumers will be able to save their time in finding the appropriate place of parking and this technology will make them know what are the possible routes through which they can reach the desired the destinations. By the use of GPS UK will be able to provide leadership, standards and innovation in technology and applications with positive domestic feedback. In a conditions of low fund and underdeveloped countries entrepreneurs are bound to launch their enterprises on small-scale. Thus it is studied that if these small-scale firms if launched in developed areas and countries on a massive scale then can bring rapid economic growth in that region. But it does not means that innovations which are launched in underdeveloped countries cannot impact the growth of the country, they also can but not as fast and accurate as the earlier one.

Entrepreneurship is an essential element for economic progress as it manifests its fundamental importance in different ways:

• By identifying, assessing and exploiting business opportunities.
• By creating new firms and/or renewing existing ones by making it more dynamic.
• By driving the economy forward – through innovation, competence, job creation- and by generally improving the well being of society.

So, as Far as Just Park's innovation is concerned it has been majorly affecting the economic scenario of UK in saving time of peole which is making them engage in some productive work instead of searching the places for the parking. Innovation and creativity has also played its part in making the user friendly app for the customers so that they can easily understand the features of the app and can make the most out of it. By the use of Companies device many of the customers will develop a positive perception towards the brand and enhancement of brand will lead to the rise in economic growth of the country (Choi, and Majumdar, 2014).

4 Evaluation of one new entrepreneurial idea that's implement in existing market

I would like to solve parking problem in big cities under congested area. I want to develop an app to eliminate this problem up to a certain extent this app helps in to find out the parking space in particular area. This app is basically interlink with the Global positioning system (GPS) it helps in to find out the current position of vehicle in order to safe parking. I would like to choose my mobile app is Justpark it provides parking facility to all kind of vehicles. Parking problems are face by the people for a longer time period and Govt of UK can not be solved this problem. Mobile app is only applicable for those vehicle who has GPS system for finding out the current position of vehicle in order to provides appropriate space for parking. As a business startup it cant generate high revenue from the market but its makes positions as a problem solver (Henkel, Rønde, and Wagner, 2015). Its implementation is not an easy task because all the customers are not technology friendly and they are well known about how to use it. I would like to develop this app in shorter steps so that every one can easy to access this software and use it effectively. As a startup business plan we need a talented employees those are technology friendly and have good imagination power in order generate creative idea that helps in to get valuable information for developing the mobile app. Creativity mainly depends on the idea communication at a single level where problems and ideas are rotated and communicated in order to gain valuable information from others so that innovator group consist of large number of members and they valuable in order to find out problem and gives solution.

Conclusion

From the above report, it can be concluded that innovation is the necessary part of any startup or large business organization. Start business creates larger job opportunities to those people who are unemployed but have a talent and ability to do something valuable. Small and start-up business makes major contribution in country economy and helps in to maintain strong position in global market place. Larger business organization are mostly profit oriented and makes innovation inn the existing product and services in order to maintain sustainable position in market place (Leutner, Ahmetoglu, Akhtar, and Chamorro-Premuzic, 2014). Start-up organization are in position to introduce an develop creative idea towards the fulfilment of market expectations. Its main focus is to maintain sustainable position in market place rather than to earn high profit. From this report space for parking becomes a big issue in UK so that mobile app is introduce by the innovators to solve parking problem in big cities under congested area. This app helps in to find out parking space in a specific region. It basically related to the GPS system in order to find out the current position of a vehicle and its relevant space.

References

Journals

• Konda, I., Starc, J. and Rodica, B., 2015. Social challenges are opportunities for sustainable development: tracing impacts of social entrepreneurship through innovations and value creation. Economic Themes. 53(2), pp.211-229.
• Galindo, M.Á. and Méndez, M.T., 2014. Entrepreneurship, economic growth, and innovation: Are feedback effects at work?. Journal of Business Research. 67(5), pp.825-829.
• Leutner, F., Ahmetoglu, G., Akhtar, R. and Chamorro-Premuzic, T., 2014. The relationship between the entrepreneurial personality and the Big Five personality traits.Personality and individual differences. 63.pp.58-63.
• Henkel, J., Rønde, T. and Wagner, M., 2015. And the winner is—Acquired. Entrepreneurship as a contest yielding radical innovations. Research Policy. 44(2). pp.295-310.
• Balkema, A. and Romijn, H., 2015. Innovations in social entrepreneurship for sustainable biofuel production: the case of Tanzanian outgrowers cultivating Jatropha for the global biofuel chain. In The Business of Social and Environmental Innovation (pp. 63-83). Springer International Publishing.
• Shah, S.K. and Mody, C.C., 2014. 9 Creating a Context for Entrepreneurship: Examining How Users’ Technological and Organizational Innovations Set.Governing knowledge commons, p.313.
• Hofstra, N. and Huisingh, D., 2014. Eco-innovations characterized: a taxonomic classification of relationships between humans and nature.Journal of Cleaner Production. 66.pp.459-468.
• Ratten, V., 2014. Encouraging collaborative entrepreneurship in developing countries: the current challenges and a research agenda. Journal of Entrepreneurship in Emerging Economies. 6(3). pp.298-308.
• Karlsson, C. and Warda, P., 2014. Entrepreneurship and innovation networks. Small Business Economics. 43(2). pp.393-398.
• Choi, N. and Majumdar, S., 2014. Social entrepreneurship as an essentially contested concept: Opening a new avenue for systematic future research.Journal of Business Venturing. 29(3). pp.363-376.
• Faria, J.R., 2015. Entrepreneurship and business cycles: technological innovations and unemployment. International Entrepreneurship and Management Journal. 11(2). pp.253- 265.

Books

• Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
• Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
• Niosi, J., 2014. New technology policy and social innovations in the firm. Routledge.
• Wiseman, A.W. ed., 2014. International Educational Innovation and Public Sector Entrepreneurship. Emerald Group Publishing.

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