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Innnovation Advice

The Relationship Between Entrepreneurship and Innovation



As a Cube insider, you'll get access to interesting new trends, what we think about them and how you can benefit.


 

New Trend:  Entrepreneur vs. Innovator


Entrepreneurship is one of the most important professional pursuits in the world. People sometimes get confused between innovation and entrepreneurship. They are both valuable to the business world and various industries. 

  • Innovation centers on the creation of specific ideas to help advance a business’s products or services. 

  • Entrepreneurs are individuals who take risks and capitalize on business opportunities in dynamic markets. They focus on turning a great idea into a viable business opportunity. 


Entrepreneurs have the skillset to use innovation to their advantage. They can create new ideas with a high level of vision and creative thinking skills to bring a conceived idea to life. For all entrepreneurs, they have to be resilient, adaptable, perseverant, and great problem solvers. They are driven to achieve their goals by launching brand-new goods or services that cater to a business’s necessities. There are many different kinds of entrepreneurs who specialize in specific fields in certain industries.


These entrepreneurs are driven by making these positive changes to help improve the lives of their target demographic by promoting positive social or environmental change. They focus on innovative solutions for societal problems and ensure that any environmental innovator’s ideas will become a reality.


While businesses tend to focus on the bigger picture, these are the kinds of entrepreneurs that prioritize personal freedom and fulfillment. They start businesses aligned with their interests and values for a desired lifestyle. They are passionate about their goals for their businesses and seek to prosper in any market. Their time management skills are great for getting tasks completed in an efficient manner to ensure innovations are fully realized.


For these entrepreneurs, they aim for high-growth businesses with scalability. They can pivot to new  ideas depending on their capabilities. They focus on innovative  technologies. They have the freedom to experiment and continuously test new ideas to reach their fullest potential.


Not every entrepreneur works in global markets or big organizations. These entrepreneurs establish and operate independent businesses and often have a local or niche focus. They have a better time managing local companies because of communication skills and strong networking. They prefer to work in local markets, so they have a good idea of how their innovations have impacted their local consumers.


This profession shares more similarities with that of a business manager than any other entrepreneurship. They start out with many different companies and manage them within their own schedule. They constantly seek new opportunities and identify gaps within the market. They can appear in any industry and work well with innovators to create bold, new ideas.


On the other side, large businesses rely on these entrepreneurs to help with their innovations. They exhibit an entrepreneurial mindset within established companies. They utilize their skills to the best of their abilities to flesh out any innovation. They are not only driven by innovation, but they also identify any new business opportunities. Their focus on innovation and success helps large corporations survive in highly competitive markets.


Many technological innovators and inventors have to work with these entrepreneurs on their innovations and ideas. They specialize in technology-based businesses and work well with various technologies, such as AI, mobile technology and computing. They leverage technological advancements to develop and commercialize innovative products and services.


Entrepreneurs play a crucial role as leaders, innovators, pioneers, and inventors and are driven by economic, technological, and social advancements within their industries. They have the ability to identify and transform great ideas into viable business ventures by embracing risk. They also add value and creativity to their innovations. Entrepreneurs succeed by using their risk-taking, motivation, leadership, management skills, decision-making abilities, and effective planning to achieve the best outcome.


 

New Insight: The Relationship Between Entrepreneurship and Innovation


The biggest difference between entrepreneurship and innovation comes from the level of risk-taking and how innovative ideas are brought to life.


The value of innovation means more to entrepreneurs in today’s world. Entrepreneurship plays an important role as the economy’s growth and new innovations keep developing over time. Not only does entrepreneurship allow for an increase in job opportunities, but it also allows more voice to contribute to business innovation. Many people have become interested in becoming entrepreneurs, with the Small Business Optimism reaching as high as 99.7 points in July 2021. Entrepreneurs are passionate about their jobs and wish to bring the future forward for the modern business world. According to Belle Wong in her Forbes article, “entrepreneurs are at the forefront of tech innovation, harnessing cutting-edge technologies to develop industry-revolutionizing solutions.” The advancement of technology has been helpful for both innovation and entrepreneurship. It has helped them utilize established advancements to progress strategies and practices forward into a tech-focused world.


Innovation serves as a stage where fresh concepts, ideas, goods, or services result in substantial advancements. Innovation boosts productivity and efficiency to improve customer experiences and drive cost savings through process optimization or automation. Innovation can enhances sustainability practices and creates new industries. Innovation is vital for entrepreneurs’ success because it allows them to create new products and services to meet the needs of different customers. Both innovation and entrepreneurship allow for creativity to thrive in businesses. 


For innovators and entrepreneurs, they recognize the value that both of their professions bring. Entrepreneurship thrives on innovation to keep business practices from becoming stagnant. Anna Crona stated in her blog post that “most companies have an official purpose–something that states the reason for their existence and reflects the value they want to provide their customers with. However, earning money and maximizing profit also makes up for a substantial part of driving a company.” 

 

New Action: How To Use Entrepreneurship and Innovation Today


Entrepreneurship and innovation are so closely linked that it can be hard to separate the two of them. While innovators look to conjure up ideas for companies, entrepreneurs work hard to bring these ideas to life. We recommend having both innovators and entrepreneurs work together to forge new business strategies and practices for today’s business world.


  • Entrepreneurship and innovation have a symbiotic relationship where  entrepreneurs turn innovative ideas into business opportunities.

  • Innovation is about creating new ideas to help advance a company’s products and/or services based on any given feedback.

  • Entrepreneurs take ideas created from innovation and turn them into business strategies so they can be capitalized to their fullest potential.

  • The biggest difference between entrepreneurship and innovation comes from the level of risk-taking and how these innovative ideas are brought to life.


Are you ready to take your business to the next level?  We can help you evaluate the market and determine the best next steps.  If you are interested, N³ Innovation can help you! Contact us today!


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