Question

1. a) Describe what innovation means for an entrepreneur.

b) Discuss how innovation, entrepreneurship and economic development correlate.

Answer 1

A. Entrepreneurship:

Entrepreneurship is where an individual would decide to set up a business plans and ensure to take any kinds of risks that occur in the business. They focus to increase the business and always look towards increased growth and profit.

Innovation for Entrepreneurship:

Innovation is finding new ways, techniques or process to complete an assigned task. For entrepreneurs, an innovation would be introducing a new product which in turn disrupts the market for the already existing products and create a market share for itself

For entrepreneurs, Innovation helps in expanding the market through finding an area for opportunity where traditional industries are more in number.Innovation and curiosity are two main key characters which are quite needed for a good entrepreneurship.

B. Innovation, entrepreneurship and economic development correlation:

Economic development is a concept where the quality of life or standard of living of people increases in a country. For any economic development innovation plays a central role and entrepreneurs are like drivers who introduced new technologies to improve an organization and obtain higher profit.

The survival of an entrepreneur merely depends upon the competitive advantage which he introduces through innovation which in turn affects the economic development as a whole.