Innovation in entrepreneurship
Innovation in entrepreneurship is the ability of organizations to employ new ideas in their production processes to meet the ever-changing consumer needs. The fundamental principle that encompasses human wants is they are progressive, meaning they change over time, and that is why businesses are expected to innovate to meet these needs and survive in the market place effectively.
Why Organizations Seek Innovation Opportunities
- To Maintain a Competitive Edge.
According to Jolly (2003), “competitive advantage can be described as the ability to learn, innovate or continuously reposition with respect to the competition” (p. 53). Businesses are formed to give a return on investment. This achieved through the offering of goods and services to the consumer. Due to the shift in consumer needs, then organizations are expected to realign their operations to meet with the consumer’s demands, always the business effectively meets these needs attracts many customers. Innovation is then necessary for entrepreneurship to ensure that product quality is maintained, and new processes are included in production to improve productivity and customer satisfaction.
- To Adapt to New Age Technology.
Innovation in entrepreneurship is necessary for firms that want to remain relevant in the modern age of technological advancements. Technological innovation has transformed the processes around the production of goods and services. The factors like team communication have been streamlined for efficient planning and organization. Measurement procedures are now more accurate and precise, reducing wastage and increasing output. Cantamessa and Montagna (2018) state that, “The study of innovation management is first of all rooted in an adequate understanding of technology. In fact, we adopt a somewhat strong hypothesis that, while not all innovations are strictly technological innovations, technology will have an enabling role to innovations of any kind” (p. 2). Innovation in technology has helped businesses adopt new methods of marketing their products like through search engine optimization and ensure they offer secure and convenient payment systems for their customers.
- To Meet Customer Expectation.
Innovation in entrepreneurship is vital in meeting the expectations of customers. Essential human nature is related to their emotions, and when these emotions are sufficiently addressed, it leads to customer satisfaction. Fukuda (2013) postulates that “innovation lies in the hearts of customers” (p. 14). Innovation can then be used to anticipate customer needs and tailor products and services to meet consumer’s needs. The era we are living in right now is the ‘information era’ where the customers know what features they want in products and services. Thus organizations need to leverage this factor in their innovation strategies.
- To Attract the Best Talent.
Entrepreneurs should embrace innovation as an avenue for attracting fresh talent. Creative and highly innovative individuals are always attracted to organizations where their skills and knowledge can be applied and where they can create an impact. Innovative organizations are known to promote personal growth and development as a motivating dynamic for better ideas. When companies employ a team of such individuals, it encourages a competitive space with constant innovative ideas.
Every business organization, therefore, seeks opportunities for innovation to drive sales and improve the quality of its products and services. Without change, companies will remain stuck in their status quo while customers’ needs to keep evolving every day. As a result, such firms will eventually be forced out of business.