Why Innovation Is Increasingly Becoming Critical to Entrepreneurship
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Innovation is a facilitator of entrepreneurship and a way of empowering people to take charge of their lives and economic prosperity. At the same time, entrepreneurship is the answer to innovation both at individual business-level. It also stimulates general business sector growth of a nation. Flourish in entrepreneurship entails a focus on ingenuity, amalgamating innovation and strategic business practices.
It is important to understand that innovation doesn’t happen overnight and requires time and endeavor to generate something actually innovative that will make a difference.
Innovation and creativity walk hand-in-hand when it comes to entrepreneurship. Here are six great ways to look at innovation in order to understand its importance in entrepreneurship.
Innovation Only Tool to Solve Problems
The world is fraught with issues that are hard to solve, but at the same time will continue to demand a solution. And going by Albert Einstein, we cannot solve problems with the same thinking we used when we created them. Far-sighted, creative ideas and innovative solutions are required to solve them, but at the same time, such solutions will not emerge from simple and linear planning and problem-solving processes.
However, what one needs to understand is that innovation quintessentially is about seeing, perceiving and solving problems in creative ways. A deep sense of passionate purpose and futurist thinking are required to deal with solving stubborn issues and come up with effective entrepreneurship based solutions.
Innovation is Driving the Global Entrepreneurship Movement
Considered as a global movement, entrepreneurship is presently embryonic in emerging markets like China and India. Social, women, and youth sectors are the sectors that demand innovative solutions, and entrepreneurs have a large playground to cater to, with out-of-the-box ideas that will impact the quality of lives and contribute towards making the world a better and more sustainable place.
Both central and state governments across the country are now realizing that entrepreneurship is a vehicle of economic success and prosperity that can be instrumental in promoting entrepreneurial endeavors through different schemes and programmes. Finally, the rise of new impact investors is a big step forward for new enterprises that thrive on innovation.
Advances in Technology is Propelling Innovation
The Internet of Things has already created a big buzz as it has enabled connection and sharing of data between all digital devices. This is crafting out wholly new business models and revenue streams, for start-ups as well as large and old organizations that leverage existing assets in exciting, profitable new ways. It also is altering the foundation of the contest as companies can now participate as elements of ecosystems.
The growing access to free and low-cost online education is encouraging and enabling a yearning for learning and building an appetite for knowledge to become subject matter experts in respective fields. Armed with knowledge innovative entrepreneurs and start-ups are flourishing through the internet of things.
Adapting to Changing Workplace Dynamics and Trends
Millennials now swap jobs at an escalating rate as they look for more gainful engagement, independence, and egalitarianism. This has deeply impacted the hiring process, which is now changing as recruiters have started relying on Internet-based routes. ‘Reputation’ is becoming more important to organizations. Freelancing and flexi-timing are fast emerging as a way of life and a significant section of the workforce are working from home, taking responsibility for generating their own income and wealth. The young professionals are also opting for co-working and collaborative work environments, thus networking and teaming to share and develop knowledge, skills, and experience.
These trends are propelling organizations to look at innovative approaches for enhancing staff experience at workplace as well as with the acquisition and retention of the best resources.
Responding to Increasing Customer Expectations
Major changes are necessary to understand customer’s need, want and expectation as they are now empowered by the increasingly connected and digitized world. Customer focus has rapidly shifted to receiving the value that reveals that companies understand and support their lifestyle preferences.
Customers now have total control over who they are, what they do, and what, how and where they purchase and procure products. This growing consumer expectations and choices have made organizations become more customer-centric through innovative amendments. Adopting human-centered devices to perk up the experience has provided increased value and created new ways to invent products and services.
Making the Most of Globalization Connectivity
Globalization has opened economies nationally and internationally and as a result governments are espousing free-market economy. This is vastly increasing their productive potential and creating new opportunities for trade and investment internationally. The hurdles to global trade and negotiations for promoting trade, in goods and services as well as in investments have also greatly reduced.
This has endorsed proper connectivity and partnership. Today anyone, anyplace at any time can develop an internet based business that builds scale through the application of lean methodologies thus creating more value for customers with fewer resources. This apart, the increasing availability of private funding and easing of government red-tapes and compliance factors make it easier for people to kick off low cost, internet-based global businesses.