Inereasingly, creativity and innovation are seen as being the key to survival in an ever-more competitive and global economy. In fact change and innovation are becoming a ‘way of life’ for most entrepreneurs. An entrepreneur always takes a personal responsibility for encouraging any type of innovative idea, product, or process in the enterprise.
Peter Drucker has rightly observed that “Innovation is the specific tool of entrepreneurs, the means by which they exploit changes as an opportunity for a different business or a different service. It is capable of being presented as a discipline, capable of being learned and practised.
Entrepreneurs need to search purposefully for the sources of innovation, the changes and their symptoms that indicate opportunities for successful innovation. kid they need to know and apply the Principles of successful innovation.” Drucker is of the opinion that an entrepreneur is one who always searches for changes responds to it andexploits it as an oppor tunity.
Innovation is treated as an instrument of entrepreneurship. R.M. Kanter says, “Winning in business today demands innovation” and such is the stark reality facing today s entrepreneurs.
In the dynamic, chaotic world of global competition, entrepreneurs must create new products and services and adopt new technology, ifthey are to compete successfully, The organisation that is not creative and innovative may not survive. Thus, entrepreneurs are looking for ways to encourage and foster in creativity and innovation on both the individual and the venture level. Thus it can be concluded that innovation and entrepreneurs are indispensable to each other. Both are useless and incomplete in absence of one another.
Characteristics of Innovation and Entrepreneurship:
Innovation: Innovation can have a short durability.
Entrepreneurship: Entrepreneurship has a long durability which adds and improves the value of the opportunity created.
Innovation: In innovation, there is no major risk involved.
Entrepreneurship: In converting an idea into a business opportunity, risk-taking cannot be avoided. Risk taking is a key factor in entrepreneurship.
Innovation: Innovators lose interest after idea stage.
Entrepreneurship: Entrepreneurs fail, rethink and work hard to make the venture more successful.
Innovation: Innovators have a passion for inquiry, experiment with creative thinking.
Entrepreneurship: Entrepreneurs need skills like planning, leading, managing, and decision making. Entrepreneurs take risks, work hard and are committed to achieving success in their business.
Innovation: Innovation is the outcome of a new thinking.
Entrepreneurship: Entrepreneurship is the process of making the innovation to a business opportunity.