Entrepreneurial Innovation

Entrepreneurial Innovation

Consistently proactive businesses engage in seeking opportunities and taking action about them to change from the standard way of doing business. These actions are referred to as innovations and are business strategies for companies operating in highly volatile environments, thus requiring them to position for survival through the harshest economic conditions. Innovation has consistently been used among firms as a technological and strategic tool while at the same time, cultivating the innovational culture among its existing employees while also attracting top talents to the firm’s human resource. But why is innovation too important among entrepreneurial firms? As innovation has been an essential policy among aggressive firms, this paper seeks to identify the reasons behind entrepreneurial organizations seeking opportunities for innovation.

The most important reason that businesses seek opportunities for innovation is to develop new products, offer better services, and become more efficient in their methods of operation. For entrepreneurial firms to compete and emerge top in the market, they are strongly required to engage in creativity and remain aggressive in the quest for new ideas (Schepers, 2014). Innovation leads to new products and consequently opens up a more significant market potential for its products. When a business brings something new to the market, they have the advantage of gaining a larger market share. At the same time, mantaining existing customers with the perception of a relatively advanced product that is superior to its substitutes.

The second reason is that the firms seeking innovation opportunities will come up with disruptive innovation. In light of this, the organization focuses on coming up with superior products, thus replacing the old ones and consequently generating higher profits. Opportunities will lead to innovations both in products and services as well as operational efficiency, which has effects on the company’s profits.

Thirdly, entrepreneurial organizations are focused on seeking innovation opportunities to instill a sense of change within the organization. Thus employees are challenged to find new avenues and remain relevant to the company’s strategic policies as opposed to remaining stagnant in their operational capacities. This reason aims at identifying inefficiencies and getting options to deal with them (Hotho & Champion, 2010).  An entrepreneurial organization will provide the space, time, and resources to its employees to promote ideas o products, services, or procedures that seek to make improvements in the operations of the firm.

Fourthly, entrepreneurial organizations will encourage seeking opportunities through innovation as a way of adapting to the new age of doing business. Today, markets are continually changing, with customers’ preferences moving further away from regular products. This reason has led to business bridging this gap through innovative activities to remain competitive within the industry as well as retain and increase the market share (Cannon, 2019). Technology has been among the items listed as courses of innovation, and with the dynamism within the market, entrepreneurial firms wish to remain competitive, thus seek new opportunities.

Many reasons could answer the question of why entrepreneurial organizations seek innovation opportunities. However, the critical reasons are those that seek to mitigate the possible effects of personal and professional stagnation, thus sparking the aggressive attitude among active personnel to become more efficient. Besides, the progression in creativity leads to the creation of additional products and services or projects and consequently creates other employment.

References

Cannon, B. (2019). Why You Should Seek Out High-Impact Opportunities, With Jane S. Halonen, Ph.D. Eye On Psi Chi Magazine, 23(4), 42-50. doi: 10.24839/2164-9812.eye23.4.42

Hotho, S., & Champion, K. (2010). We Are Always After That Balance: Managing Innovation in the New Digital Media Industries. Journal Of Technology Management & Innovation, 5(3). doi: 10.4067/s0718-27242010000300003

Schepers, S. (2014). Managing the politics of innovation and sustainability. Journal Of Public Affairs, 15(1), 91-100. doi: 10.1002/pa.1521