What is the partnership between entrepreneurship and development?

Depending on which model you are considering entrepreneurship has a differing marriage with innovation. You can find definitions out there that produce an entrepreneurial behaviour almost identical to that of innovation. Will there be more to invention than being entrepreneurial? Can entrepreneurship be identified by innovation? These are some questions I intend to answer throughout the article and I am going to examine and determine how the two are related, however large or small the relationship is. Up to at least one 1 in 3 business start-ups fail within the first 3 years and with the amount of start ups, 3 each and every minute in 2001, there is a lot of possible, hopeful entrepreneurs aiming to flourish in business but fail. What's the difference in characteristics between the ones that succeed and fail, is there a clear differentiation and can the amount of innovation used by the entrepreneur result the success of the business enterprise? I aim to come to a finish and answer many of these questions throughout and critically analyse differing ideas.

Both of the terms tend to be used interchangeably with little understanding of the differentiation between the two (David Johnson, 2001). My interpretation of development is that it offers a lot to do with the technology of a product or an activity and is an alteration in typical, which then becomes the norm. An example which would show development will be the activity from the floppy drive to the Compact disc ROM, this is a clear move with a completely different design and then became the norm, till further technology happened and the USB flash drive has become the most common for data file storing and copy. The question of defining entrepreneurship and linking it to innovation is harder than it sounds. There are many reports of entrepreneurship however there is no specific classification as it can't be summed up into a unitary statement. There are various models displaying a differing relationship between creativity and entrepreneurship. I start to see the link between the two as one where, if worked jointly in harmony there can be a prefect final result in conditions of the success of an entrepreneur. Not everyone who begins a business can be an entrepreneur; it's the one who makes the best end result of any opportunity given throughout the life of your business which will be a successful businessman. There are different characteristics and different circumstances surrounding each successful business owners tale but each managed to get down their route to become successful.

A good notion is only a tool in the hands of a business owner. (Jeffry Timmons 1977) This idea shows that creativity, or the idea is just one single aspect of the procedures of the entrepreneur in the making of, and continuing the success of a small business. Therefore this means there is a relationship visible but it can't be said it is the one which says that entrepreneurship is more than simply a concept, or creativity but it is using that idea.

Innovations will be the amalgamated of two worlds, particularly, the specialized, and the business; so when only a big change in technology is engaged, this is merely an invention; but as soon as the business world is involved, it becomes an Innovation. (Schumpeter 1934). An entrepreneur is an individual who establishes and manages a small business for the basic principle purposes of earnings and expansion. The businessperson is characterised principally by ground breaking behaviour and can employ strategic management practices in the business this reason is very relevant to what I am seeking to explain and the hyperlink with business shows how entrepreneurs in business can be innovative. (Carland et al, 1984). They are how innovation and entrepreneurship can be defined in 2 different models. They are able to both be linked into each other visibly due to the notion of business in advancement and the progressive behaviour. However they can be criticised credited to saying internet marketers are only in pursuit of profit but this would rely upon the personality of the individual. The founder of Oxfam, Joe Mitty, was entirely interested in making money for charity and was a volunteer.

Schumpeters view of creative destruction (1934) identifies the entrepreneur adding a new concept that takes over market and links business owners to economic expansion and development. This could be a concept of shifting creation processes, reducing the size of the labor force to increase efficiency or indeed the release of a fresh product. The reason why the intro of the new idea has such an effect is, due to unpredictability of the launch, meaning there is absolutely no chance to prepare and minimize the impact of the new idea. Therefore Schumpeters theory was very much in-line and the hyperlink invention has with the entrepreneur is clear and represented by the actual fact that this creative destruction often brings about the overhaul of a market and gets control the old idea. Including the DVD, taking over VHS, and today they don't sell VHS in HMV & most other leading electronic digital multi mass media stores.

The view of Kirzner (1973) is that entrepreneurs are people that recognise opportunity and discover gaps on the market and test the viability of new business by learning from your errors and responses from the marketplace. Therefore these two views are contrasting with Kirzners view of entrepreneurship related more marketplaces and gaps within them, and the responsiveness of an individual to respond and make the almost all of this opportunity, rather than seeing the ability for a new product or idea, alternatively than moulding or adapting what is there already to get market share. After this a business owner differentiates from just an opportunist benefits and realisation of the theory by taking on the idea and turning it into a feasible business.

These two ideas give a different degree of linkage with technology, rather than the destruction of Schumpeters model which creates the market for the merchandise, Kirzner thinks it is about adapting the theory to fit in to the market, so the innovation may be observed as more lapse and less extreme in Kirzners case.

OECD (1998) states that: (they) speed up the technology, dissemination and program of innovative ideas this sums up a definite idea of the relationship between your two; it means that entrepreneurship is ground breaking however, advancement is not always entrepreneurial. Technology may only be one aspect initially, or perhaps creativity should happen throughout and become continued through the life of the business enterprise to attempt to keep before competition. Innovation is not always a radical destruction of a current process or product and it can you need to be a small alteration to current product or process. E. G. Sir Stelios Haji-Ioannou, a business owner and the creator of easy plane, took an idea and used his business brain and talents to generate and exploit the marketplace, however didn't invent any new impressive product, or production process but he spotted a chance for a budget air travel which opened air travel up to the people, whom perhaps cannot afford what was there before it.

Schere (1982) sums up an entrepreneur by giving their characteristics, it expresses they have a tolerance for stress and doubt, a real life example here could possibly be the businessman I interviewed, John Russell, who acquired to support a household at the same time as remortgaging his house and set up an enterprise. To complete the stress of the whilst establishing and pursuing an effective business would take a lot of tolerance and home belief. The tolerance of uncertainty could be linked to innovation, if it's a new process or product and it has not been proven in market as is talked about by Kirzner (1973), the business owner is taking a large risk even if the distance on the market it there in theory, there is no certainty due to the irrational behaviour of consumers. Schere provides characteristic of enterprisers they are open minded and can behave quickly to change. The type of innovation is the fact that however prepared or quickly entrepreneurs can react they are often powerless to prevent a total overhaul of market, due to the action of another business owner (Schumpeter 1934).

Timmons et al (1985) gives one of the major sets of traits in the field. The characteristic of experiencing the drive to attain and expand is one of them. The drive to develop is one trait of interest and can be linked directly into what was already discussed, because of the distinction between innovation and entrepreneurship, with creativity being the starting place of an activity and the entrepreneurial side resulting in the expansion of the business enterprise, however development would be needed throughout the life span of the business to lead to a rise in the theory, a good example is Simon Cowell who from X factor continued to extend using entrepreneurial prowess for taking it into other countries and then went on and created Britains received talent, which launched a fresh idea and process to it industry. Simon Cowell, just one single example can already counter the thought of Timmons et al, of they have got Low dependence on status and electric power, as it is visible that this passions him.

Theories giving qualities of entrepreneurs, however, is a generalisation of most business people and can be easily criticised as there are a wide variety of types and specific entrepreneurs that cannot be segmented and categorised. The studies give traits of entrepreneurs, nor take into account the background. For example, one businessman may be considered a university or college graduate, whilst another could be a middle aged employee who may have found a means doing what their business is doing more efficiently. Therefore it is likely that the characteristics they portray are not all identical to each other. If all the traits an entrepreneur is thought to portray in publications and articles are true then business people would be near to perfectly reliable and functioning human beings.

People can even be innovative but cannot make the intensify to be entrepreneurial, the BBC television set programme (2. The Age of Plenty, The Foods that produce Billions 2010) it shows us the story of how business has switched grain into one of the biggest success tales of the present day food industry. Initially it was one of the Kellogg brothers who developed the product; however it was the other one of the brothers that needed it frontward as a small business. The individual who created the theory is the brother of the businessperson and he could be seen as progressive. His sibling was the main one who took the idea further, by increasing the product range and adding sugar to it where his sibling chose not to. Therefore a differentiation is shown here between your two thought functions of simply just an inventor and then an entrepreneurial head that has increased how big is the company, and its own revenue, significantly.

Apple, in recent times, is a great example to use when discussing both entrepreneurial know-how and new impressive products. Before the IPod premiered on Oct 23rd 2001, there have been there means of personal multimedia players which people were satisfied with. However the idea of 1000 music in your pocket arrived by surprise and nobody might well have forecasted it. People used portable Compact disc players and walkmans without realising the and they were later deemed clunky and unproductive. However, The IPod has become a household name, and despite not being the first music player they revolutionised the MP3 and today people call them IPods alternatively than mp3 players. Here the iPod can be seen to be in series with Schumpeters idea of creative damage (1934) since it is an example of what sort of new advantages (of the iPod) effectively destroyed the ideas that came before it, e. g. people dont use walkman ever again, due to the intro of the iPod. The reason Apple is a close to perfect example of a complementary romantic relationship between both development and entrepreneurship is because of their actions after the initial release, and how they continued to use progressive strategies and continue the amount of innovation and did not settle on the idea. Further innovations on the Ipod touch were taken to the market, including the minuscule, shuffle, nano and the touch were all further inventions, and then they continued to create other products under the Apple brand. They made the new Mac pc books, air and the pro, Apple Macs which further competed with other computer companies than they have in the past. Then recently they have got made the I Mobile, which has 4 the latest models of, and possibly more, iPad and in the foreseeable future also, they are looking into getting into a fresh (on their behalf) form of press, TV. These impressive ideas, along with the fact they are learning to be a market innovator in electronics and making huge gains year on 12 months, whilst banging nails into earlier head of the lightweight media industry (with the walkman) Sonys coffin (Naughton, 2010). They show perfectly why development has such a marriage with entrepreneurship. The truth from it is, however, 1 day you will see development, not by apple, as well as perhaps not by the current companies in the gadgets market, that will eliminate off apple and business lead to a new market leader. Because of the nature of development, however much Apple put together they'll not be able to prevent this happening.

Druckers source of opportunity (1985) is a model in which the opportunities for a business owner happen both internally and externally. Internally through inadequacy, changes in market or approaching about through chance; or externally through perception and disposition, demographic changes and new knowledge, from individuals or chance revelations.

Small firms are more impressive than their large organization counterparts, being less bound by convention and even more adaptable (Carter & Jones-Evans 2006) This shows that in large businesses which have established policy and working to it, would be more ridged, and therefore less reactive to a change on the market and may be pushed out of the market anticipated to new impressive firms taking over. Therefore for an enterprise to succeed in the permanent they could need innovative suggestions to survive and prevent being overtaken by the more innovative smaller companies.

To sum up the relationship between technology and entrepreneurship is not really a simple move to make with a single phrase answer. What I could conclude is that there is a differing relationship between your two in various fields of study. A common notion of the partnership is that it is a dependant one, in which both are needed within an economy to encourage economic growth. The theory that creativity is a part of the entrepreneurial process is one that I agree with, there can be innovation without an entrepreneur included; however there cannot be a successful entrepreneurial venture with no input of creativity. This is because innovation is what will be the differentiation between ideas, without creativity there could be change or development and this could lead to a stagnant market. The examples I have given of internet marketers are ones that I really believe show a differing amount of innovation, but similar amounts of success, Stelios experienced merely a change in the pricing and strategy of air travel firms which in comparison with the example of apple is only a little change, however, creativity is still shown and continues to be important. Overall in most cases it is not merely an individual entrepreneur people may be encouraged by an individual impressive idea and create entrepreneurial move of any business over time as a team which can lead to great success with the right mixture of both creativity and entrepreneurial techniques.

  • More than 7,000 students prefer us to work on their projects
  • 90% of customers trust us with more than 5 assignments
Special
price
£5
/page
submit a project

Latest posts

Read more informative topics on our blog
Shiseido Company Limited Is A Japanese Makeup Company Marketing Essay
Marketing Strength: Among the main talents of Shiseido is its high quality products. To be able to satisfy customers, the company invested a great deal...
Fail To Plan You Plan To Fail Management Essay
Management This report will concentrate on two aspects of project management, their importance within the overall project management process. The report...
Role of High-protein Diet in Weight Management
Nursing Structured Representation: Probably one of the most wide-spread and popular problems on earth is the weight problems that people is suffering...
Waste To Prosperity Program Environmental Sciences Essay
Environmental Sciences Urban and rural regions of India produce very much garbage daily and hurting by various kinds of pollutions which are increasing...
Water POLLUTING OF THE ENVIRONMENT | Analysis
Environmental Studies Pollution Introduction Many people across the world can remember having walked on the street and seen smoke cigars in the air or...
Soft System Methodology
Information Technology Andrzej Werner Soft System Methodology can be described as a 7-step process aimed to help provide a solution to true to life...
Strategic and Coherent methods to Recruiting management
Business Traditionally HRM has been regarded as the tactical and coherent method of the management of the organizations most appreciated assets - the...
Religious Healthcare Organisation
Health Religious Health Care Introduction I help the firm of consulting. Spiritual HEALTHCARE of Middleville community have appointed us to identify and...
Enterprise Rent AN AUTOMOBILE Case Analysis Business Essay
Commerce With a massive network of over 6,000 local rental locations and 850,000 automobiles, Organization Rent-A-Car is the greatest rental car company...
Check the price
for your project
we accept
Money back
guarantee
100% quality