Economies cannot thrive without entrepreneurship. Entrepreneurship results in the overall well-being of a society because it spreads economic power to more and more hands, thus helping more people secure a place in the future.
Entrepreneurship is a driving factor in creating more job opportunities for people, building new businesses, developing new solutions, reducing monopolies, and making the market more competitive.
There are two main types of entrepreneurship.
- The first one is SME entrepreneurship.
Small-medium enterprises or commonly known as SMEs, are small-sized, fundamental companies that have a relatively smaller area of operations, mainly targeting the local markets. Apart from that, SMEs are mostly involved in services business rather than product manufacturing. Small-medium enterprises rarely go for globalization or extend their operations to international markets. Common examples include consultancies, internet service providers, etc.
- The second one is IDE.
IDE is the short form of Innovation-Driven Enterprise or Innovation-Driven Entrepreneurship. They are focused on global markets or supermarkets, and our focus will be on the IDE from here onwards.
What is Innovation?
Innovation is the word you can see on almost every company’s website. A simple definition is that it is all about creating value from ideas. That value can be commercial or social, or it can be a combination of two.
According to Ed Roberts, chairman of the Martin Trust Center for Entrepreneurship,
Innovation= Invention × Commercialization
If we look at this equation, innovation is something of value that requires a new idea. Further, it requires an individual or an organization/company that must introduce the idea to the target audience and convert it into a practical form for society.
Innovation is what entrepreneurs do, and they do it in different contexts. For example, organizational growth, social inventions, startups, and anyone or everyone who brings notable professional, commercial, or social change fall in the category of entrepreneurship.
What is Innovative Entrepreneurship?
Innovative entrepreneurship is the technique of establishing and creating new business concepts with the intention to make profits, support the community, and accomplish corporate goals such as growth, expansion, etc.
Innovative entrepreneurs design business models to meet the corporate needs of businesses and improve their competitiveness in the market
Social entrepreneurs are individuals with innovative ideas to create long-lasting solutions for common problems shared by a large number of people or countries. They create solutions, products, or services to help people change their lives. They have the ability to identify and seize opportunities and may turn them into profitable businesses.
They are the ones who carry the zeal to find much-needed solutions, which also means that they also have the ability to take on risks. Social enterprises can be profitable or non-profit bodies. It is promising to see International Development Community has started realizing the role and importance of social entrepreneurs and their effect on society.
Startup entrepreneurs are individuals who have established a fledgling firm with the intention of introducing distinctive products or services into the market. The startup entrepreneurs typically receive their initial capital from private equities, individual investors, friends, and relatives.
In the most recent years, there has been a meteoric surge in the number of startups. Around 10% of individuals in the age range of 18 to 34 have the ambition to establish their own business set up.
The pursuit of financial independence appears to be the answer to why they choose this course of action. These entrepreneurs are not suited for the traditional method of climbing the cooperative ladder. They make and grab the opportunities to pursue their own dreams.
Enterprise entrepreneurs are the individuals who find new opportunities in the market, and through their innovative ideas, they help different corporations to survive or thrive in markets. They adopt new ideas and technologies to make changes in the business structure, intending to make more profits and build a strong reputation in the market.
Skills of an Innovative Entrepreneur
An entrepreneur must have leadership skills. An individual can’t manage a prosperous business without first mastering the skills necessary to interact successfully with the people they choose to surround themselves with.
As an entrepreneur, you need to be able to utilize your own resources and your people in an optimal way to be successful. You also need to understand the personal goals and objectives of the others with whom you work.
To launch, run, and expand a business successfully, an innovative entrepreneur needs to have a solid understanding of financial management and how to make the most of available resources and assets. They should have a strong grasp of financial concepts and a clear understanding of financial statements such as balance sheets and income statements. They must be able to use these understandings to conduct a thorough analysis of their business’s health.
Knowledge of the Market
Another key to becoming an innovative entrepreneur is knowing market forces. Innovative entrepreneurs know what will be the impact of their new business in the market. They know the supply and demand of their services or products. They are well aware of their competitive advantages and weaknesses. Most importantly, they know how customers can influence the market they are operating in.
Effective communication ability is one of the essential and practical skills that an innovative entrepreneur needs to have. Entrepreneurs are able to strengthen their relationships with their workers, increase their productivity, and provide their employees with clear directions about what is expected of them. Effective communication skills are essential for effective engagement with the business partners, employees, shareholders, and public representation.
In order to be successful as innovative entrepreneurs, individuals must first have a profound understanding of the environment in which they find themselves. They have to come to terms with the fact that while their feelings can exert some influence over their surroundings, their surroundings can also influence their emotions.
If entrepreneurs are able to have a complete understanding of how they think and how they feel, then they will be able to have a comprehensive understanding of how to react to their environment and how to control their emotions.
In order to carve out a special spot for themselves in a market that is already saturated with competition, entrepreneurs need to think strategically. Getting ahead in the market requires establishing a course of action or well-structured strategy. They must be able to think rationally about the decisions they make and the actions they take. They must have a distinct picture of their resources, potential, limitations, and challenges they will be facing in the market.
An innovative entrepreneur who possesses strong negotiation skills is in a better position to strike favorable deals between parties who have conflicting interests. Negotiation must be a mandatory skill in entrepreneurs because the success of a company is dependent on whether or not others recognize the value in the product or service being offered.
However, negotiation is only possible when the negotiator is well-prepared and has a sufficient amount of knowledge of the matter under consideration. Apart from that, it is important to learn when to step back, compromise, or look for alternative solutions.
Time management is all about getting the maximum out of your time. Time management is a must-have skill if you want to be an innovative entrepreneur. Most importantly, time management allows entrepreneurs to complete tasks in due time, ultimately contributing to the accomplishment of their overall organizational goals.
Open to Change
Innovative entrepreneurs are flexible and always ready to bring a change in their business operations, thinking patterns, and everything they do. They always adapt to the changing market trends and customer preferences, and this is what keeps them ahead of their competitors.
“Your network is your net worth,” how many times have we heard this quotation, and this is more than 100% true. Networking not only allows entrepreneurs to hunt for the best human resources available, but they can learn new and effective ways of doing things from their network. Networking is also very effective in marketing your products or services.
Innovative Entrepreneurs FAQS
Some common questions and answers related to innovative entrepreneurship are mentioned below.
What Qualification Do You Need to Become an Innovative Entrepreneur?
No formal qualification or degree is required to become an innovative entrepreneur. But having an educational degree like a Bachelor’s or Master’s in business administration or any other degree related to business can help you improve your entrepreneurial and managerial skills.
If you have no educational background, you can enhance your skills by attending different workshops or taking free or paid courses. You can also strengthen your innovative skills by reading books or through internet resources. You can also get ideas by visiting different businesses in the market.
Identify the Industries where Innovative Entrepreneurs Work?
These days many industries favor hiring innovative entrepreneurs to meet up the market trends. Here are some industries where innovative entrepreneurs mostly work;
- Services business.
- Retailing business
- Agriculture business
- Mining business
- Manufacturing business
- Automobiles business
- Information technology
How to Develop Innovative Entrepreneurship Skills?
An entrepreneur can develop his entrepreneurship skills by:
- Connecting with other entrepreneurs
- Keeping learning new things
- Taking part in business workshops and seminars
- Strengthening time management skills
- Improving Financial management skills
- Keeping eyes on market trends