what is creativity and innovation in entrepreneurship

Innovation is the next step of creativity; it is its materialization and the means to generate wealth. Many even say the perpetuation of these developed economies depends on the success of their creative entrepreneurs. So creativity and innovation are fundamental factors of wealth generation which is the cornerstone of our capitalistic economic system, which is the only applicable economic system in the world, as we speak. The whole idea of starting up a new business, a new company, comes from ones creativity. The most productive businesses are those that embrace creativity and inspire innovation. As can be clearly seen in the example of Uber, all the three steps are crucial in order to create a profitable business. Required fields are marked *. Creative thinking is a must-have skill that an entrepreneur must have to create some inventive ideas and make the entrepreneurial process a … Entrepreneurship is the process of making something original and valuable. defined as the development of new or useful ideas by. Business, any business, cannot exist without creativity. Entrepreneurship may play a role in each of those, or these all may come together, to play a role in some entrepreneurial venture. The new entrepreneur wants to be independent, to do what he enjoys and believes he is best in doing, to leave his mark, to create. This is especially true for large-scale, established businesses. However, this should not solely be the role of the singular entrepreneur, small business owner or any specific employee. Innovation is at the heart of any growing economy, especially in those where standard practices and existing business models have become obsolete. Apple has made other companies creative, by changing the market and the consumers. With the knowledge of business strategy and practice available in a master’s degree of business administration with a focus on entrepreneurship program, degree candidates can learn how to turn their creativity into innovation. This can be an idea, product, model, process, or a service. Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities. individuals, teams and organisations (Cropley et al ., 2011: 13 -. Cleverism: Why Creative Is So Crucial for Entrepreneurs? Apple is a level above them. Creativity Your email address will not be published. Apple has forced its competitors to rethink their products and sales techniques, to focus on design, to innovate. You have the idea, you h… Or if I put my creative speaker hat on, I might say, “Creativity is a bioelectrical thunderstorm that precipitates an inescapable notion.” How Innovation Contributes to Competitive Advantage? in Finance – Financial Analysis Online, B.S. 35-49. Obviously, this is not initially a positive thing for an economy. To stay competitive in the globalized marketplace, they have to minimize expenses and streamline business models. Innovation and entrepreneurship are essential ingredients in building a successful commercial venture. All of that implies high self-esteem and determination. Creativity does not require money. In contrast to the globalization of big business, entrepreneurs and startup businesses can benefit from focusing on creating new products and services targeted at occupying previously unexploited niches within a developed economy. Innovation refers to the application of an idea and, in many cases, is a collaborative enterprise. In a nutshell, that’s how creativity, innovation, and entrepreneurship are related. Entrepreneurship is the result of a disciplined, systematic process of applying creativity and innovation to needs and opportunities in the marketplace.. 855-704-0315, Site Map  |  Privacy Policy  |  Course Login. Creativity is relat ed to finding a new idea; but innovation can be. Apple employees are encouraged to think “outside the box”, to speak up and always share their thoughts, opinions, as well as projects and ideas with their colleagues. I understand this consent is not a condition to attend LSUS or to purchase any other goods or services. By submitting this form, I am providing my digital signature agreeing that Louisiana State University Shreveport (LSUS) may email me or contact me regarding educational services by telephone and/or text message utilizing automated technology or a pre-recorded message at the telephone number(s) provided above. Creativity Innovation is defined as implementation of ideas that originate from creative processes. What role do creativity and problem solving play in this relationship? The very notion of starting up your own business, take calculated risks and give your best to succeed, is the definition for entrepreneurial creativity. Creativity is a function of thinking, which is possessed by almost all persons, whereas innovation is a specific function of entrepreneurship. Once again, Innovation cannot happen without creativity or invention, and neither creativity nor invention is useful in business if not properly executed. However, the financial institutions that compose our economic system are the epitome of innovation. ©2020 Louisiana State University Shreveport, One University Place, Shreveport, LA 71115  |  855-704-0315 in Management & Administration – Human Resources Management Online, B.S. You should note that not all innovations require an invention. Creativity, realized through innovation is what drives our economy, is what capitalism is built on, is what creates companies like Apple, Microsoft, and Dyson and Goldman-Sacks. The nature of creativity is about innovation leading to the creation of new ventures while entrepreneurship itself is a form of creativity or can even be referred to as business creativity and in most cases, new businesses are creatively original and functional Creativity goes hand in hand with innovation. Nowadays creativity and innovation is the driving force of the economy, usually in the form of digital and mobile applications and devices. Creativity, innovation, and entrepreneurship related. If for example the banking industry is used as an example of innovation in a lecture, the majority of people from the audience will most like wonder about the appropriate of the use of the word, when it comes to financial institutions such as Goldman-Sacks, J. P. Morgan and even the Royal Bank of Scotland. He does not need to be an inspirational writer, a painter or an architect. Incentivizing creative product and strategy development can help propel a business, with all employees actively seeking opportunities for further growth and innovation. Curriculum and Instruction: Science, Technology, Engineering, and Math Online, M.Ed. Curriculum and Instruction: ESL Online, M.Ed. This site uses Akismet to reduce spam. Importance of Creativity and Innovation in Entrepreneurship, Case Study of Apple: Strategic Enablers and Barriers to Innovation, The Impact of Innovative Culture on Organizations, Organizational Success through Creativity and Innovation. Innovation Management - Managing Innovation in Business, Role of Leadership and Culture in Promoting Innovation and Creativity, Core Competencies – Competitive Base for Organizational Success. Over time, entrepreneurship has become associated with creativity, the ability to develop something original, particularly an idea or a representation of an idea. For example, introducing a new equipment that can reduce the electricity consumption by some percentage is an innovation. In building nurseries, a small clinic, dentist, even a virtual reality game suits and more than twelve restaurants are but some of the benefits that Apple employees enjoy. Entrepreneurship is key to innovating at the individual business level as well as inspiring overall business-sector growth. And rightly so, as they provide incredible flexibility and utility to the users, improving their way of life and quality of life, and at the same time generating new jobs and money. Economists have even given this new type of economy a, very appropriate, name; digital economy. Creativity is the heart of entrepreneurship and innovation is the oxygen that is keeping it alive. One can even go as far as saying that creativity and innovation is business. Submit the form below and we will help with your questions! Creativity is of two types: individual and organizational and … You need to be creative and view an idea differently to be innovative. Its products are rapidly reaching legendary status, with their names being used, in many occasions, to define an entire market sector and not just a product. The International Journal of Entrepreneurship and Innovation. “the introduction of something new” or 2. And there is no innovation without creativity. Of course this is not just down to the vision and charisma of Steve Jobs. Products like the Ipad, the Iphone and the Ipod, combine the creativity and vision of a company, and of a very charismatic man, Steve Jobs, who sought to develop (create) new revolutionary products, with innovation of continuously updating and upgrading, introducing new and improved versions with design, aesthetically pleasing, trendy, fashionable devices that are more than a “mobile phone” or a “portable PC”, they are status enchanting, life-style items. Search with the keyword "Creativity, Innovation and Entrepreneurship… ResearchGate: A Model of Strategic Entrepreneurship: The Construct and Its Dimensions, Business News Daily: Why Creativity Matters Most for Entrepreneurs, Entrepreneurship and Innovation: Class Distinctions for the Global Economy, LinkedIn: The Importance of Creativity and Innovation in Business, Paggu: The Importance of Innovation in Entrepreneurship. Steve Jobs and Steve Wozniak founded Apple Inc. back in 1977. 2, No. In business and the media, the words creativity and innovation are used almost interchangeably. As large-scale industry has traditionally accounted for the majority of revenue in developed economies, the out-sourcing of their manufacturing and market distribution can reduce stability and growth in those economies. Conversely, Innovation is related to introduce something better into the market. The combination of creativity and an entrepreneurial spirit in the person of the entrepreneur will inevitably end up into innovation in business and value-creation. CREATIVITY, INNOVATION AND ENTREPRENEURS Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities. In fact, this is the time an entrepreneur begins to realize how innovation and invention differ. For small businesses to succeed in today’s competitive markets they need to find opportunities and take advantage of them. Every sector of business and every sector of life is subject to creativity and innovation. Although this is an inevitable aspect of globalization, it means that jobs, growth and wealth have been moving overseas. Curriculum and Instruction: Reading & Literacy Online, M.Ed. Creativity refers to generating new and novel ideas. Despite the differences in definitions almost all researchers since Schumpeter agree on one thing- entrepreneurship is about change in some way, it is about innovation. Creativity is the novel step of being the first to identify that something might be possible in the first place. Innovation is extremely important that … Innovation is the manifestation of creativity into a usable product or service. However the link between creativity, which gives birth to innovations, with the business process is deeper than just new products and services, no matter how revolutionary these might be. The Relationship Between Creativity and Innovation. According to Merriam-Webster, innovation is defined as 1. His company does not need to be about revolutionary technology, new designs or new products. The IPad is a good example of Apple’s innovation. It is, or it can be, the financial link between ones thoughts and fantasies with the economy. in General Business Administration – International Business Online, B.S. With the exponential globalization of the world’s economy, many industries have looked internationally for both manufacturing and market development. New songs, new ideas, new machines are what creativity is about Mihaly(1997). The invention refers to a new, unique concept while innovation is an idea which is as unique and useful as the original one. These are provided in the form of physical rewards and generation of wealth; money. They also provide a platform on which small businesses, utilizing the benefits of the new technologies and the new digital marketplace, can compete even with multinational corporations in a global marketplace. Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance people‟s lives or to enrich society. Business, innovation and creativity are interlinked terms. According to Runco and Jaeger, creativity requires originality and effectiveness. Now, innovation is a fourth word that we've thrown into the mix. “a new idea, method or device.” Forbestakes a different approach, explaining the many ways in which we can attempt to describe innovation, including: words, reactions, descriptions and strategic criteria. Innovation requires creativity, but innovation is more specifically the application of creativity. Result and Pre-Requisites Whether launching a new social media platform, starting a digital marketing company or releasing the next big thing in tech gadgetry, entrepreneurs need to constantly push the boundaries of current trends, using new ideas and creative approaches. Creativity needs a spark and innovation needs fuel. It is, or it can be, the financial link between ones thoughts and fantasies with the economy. Although this is an inevitable aspect of globalization, it means that jobs, growth and wealth have been moving overseas. If is strange that when the word creativity is mentioned most people think of painters or sculptors or even photographers and when the word innovation is used they think of technological advances, like 3D TVs, and companies like Apple and Siemens. Innovation can be both a process or a product. This is especially true for large-scale, established businesses. Some people believe you have to be creative in order to create innovative things. While creativity is the ability to produce new and unique ideas, innovation is the implementation of that creativity – that’s the introduction of a new idea, solution, process, or product. And there is no innovation without creativity. iphones, ipads, tablet PCs, smartphones and millions of applications that help the user cook a nice meal, pay his bills online or even monitor his diabetes are the life-line of the post 2008 crises economy. Imagination is essential to starting a business, whether coming up with exciting new products and services or using modern forms of target-market analysis and engagement. Others would say, without innovative thinking there is no creativity. Modern business practices have had to evolve rapidly to stay effective. Curriculum and Instruction: Urban Education Online, M.Ed. Because of this, innovative entrepreneurial business people are becoming increasingly integral to the stability and growth of developed economies. Entrepreneurship is like doing any other business, but there are some characteristics, which distinguish it from traditional business techniques. Have a question or concern about this article? Although some consider the advantage-seeking behaviors of large companies as “creative” solutions to modern problems, these behaviors still prioritize the bottom-line: established products and services and reiterations of old business models. Teaching Notes Teaching notes have been created for this topic. Vol. You should note that all inventions require a discovery. Creativity is the starting point for innovation. It is an inspiring environment that actively promotes thinking. Entrepreneurship, Innovation and Economic Development “‘Discuss the relationship between entrepreneurship, innovation and economic development. in Marketing – International Business Online, Louisiana State University Shreveport’s Master of Business Administration with an Entrepreneurship and Family Enterprise Specialization, LSUS online MBA in entrepreneurship program. Not the only, but one of the most significant reasons why people want to become entrepreneurs and push themselves to create something new, something exciting, something that other people, many other people, will buy. in Management & Administration – International Business Online, B.S. Money has been blamed for many things, and most of the times rightly so, however, together with an inherited ability and need for humans to be creative, it is the most common motive for business creativity and innovation. It is creativity that enables an entrepreneur to act on the opportunities that present to him, in order to create competitive advantage for his company. Many people will refer to any tablet PC as an IPad. Apple is a company that its actions reverberate in the entire business and consuming world, as well as in the technological developments of our era. The image of Steve Jobs walking around the office barefooted, chatting with his employees about ideas he or they has is characteristic about the company culture. Innovations need creativity and new thinking. ” In today’s world, entrepreneurship. MBA in Entrepreneurship and Family Enterprise Online, MBA in Hospitality and Casino Management Online, M.Ed. Creativity, in general, is a precursor to innovation, and Entrepreneurship has always been about innovation. Redundancy in business practices can lead to financial stagnancy. Creativity is however necessary but not sufficient condition for innovation. Curriculum and Instruction: General Online, M.Ed. Clubbing of Goals Becomes Possible. Innovation is the successful development of competitive edge and as such, is the key to entrepreneurship. Creativity in Entrepreneurship: Importance and Types: The major contributor to economic growth is the Entrepreneurship but there is a huge impact of creativity on it. Creativity and innovation have difference and advantages in entrepreneurship. However, Apple has also contributed in the business creativity and innovation field its influence, or the influence its huge success has, to hundreds of other companies, most of them its competitors. “Innovation and creativity love crises and constraints.” According to Professor Jay Rao, the current global health crisis is catalyzing innovation in organizations around the world.. For example, James Dyson, of vacuum cleaner fame, designed a new ventilator in just 10 days.Ford, GM, and Tesla are teaming up to produce ventilators for GE. Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance people’s lives or to enrich society. Their continuous innovation in creating new financial products and finding ways to generate wealth is what led to the technological, commercial, entrepreneurial and consumption “boom” that started after the end of the 2nd world war and is still going strong now, even after many financial crisis that this same system produced, with the most serious being that of 2008 with many countries and millions of people still experiencing its effects. The starting up of a business is creation. The same goes for the IPhone which was the first, real, smartphone, the smartphone that started the revolution we live today. Innovation can be both of a process or a product. Innovation is the implantation of creative inspiration. He is creative because he made that first very important step of becoming an entrepreneur. Innovations contribute to the success of the company. Creativity needs a spark and innovation needs fuel. They should emphasize the importance of creativity and imagination while valuing and employing the strategic business practices necessary to implement new ideas effectively. Innovation means introducing something new. Creativity is related to the generation of ideas which are new and unique. They keep coming up with ideas and do not settle until they come up with multiple solutions. Many companies have attempted to do this, very few have achieved it and only a handful have mastered it. ., 2011: 13 - of wealth ; money the IPhone which was the first apple PC large-scale established! Administration – Human Resources Management Online, B.S teams and organisations ( Cropley et al., 2011: -. Mclean, 2007 ) ingredients in building a successful commercial venture original one are becoming increasingly integral to vision... 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Perpetuation of these developed economies IPhone which was the first apple PC condition to attend LSUS or to any! Shape the world we live in with their creations be about revolutionary Technology, machines.

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