The Importance of Entrepreneurial Innovation

Since man’s early beginnings, the entrepreneur has taken on many different roles and characters to address the various needs of the marketplace while helping to improve the society in which they live.  One of these roles is that of the innovator.  The entrepreneur/innovator exploits new concepts and methods leading to the birth of new products, services, or processes.  However, their more important contribution is in the actual introduction of these innovations in the market.

In other words, the entrepreneurs' creations eventually result in new products, services, or processes that add value or enhance the quality of life which benefits people and society as a whole.

Four major types of Innovation:

• Product Innovation – pertains to the creation or introduction of new or considerably improved products or services.

• Process Innovation – refers to the development or creation of a new or a greatly improved delivery or production methods.

• Supply Chain Innovation – happens when innovators implement or introduce a system or device that significantly improves the chain of processes from raw materials to finished products. 
  
  
• Marketing Innovation – means the discovery and implementation of new marketing methods that highlight improvements in promotion, packaging, product-design, or pricing.  It reflects how a specific industry is adapting and changing in the face of new technology and communication media.  This type of innovation is aimed at retention of existing customers as well as attraction of new customers.

The significance of Entrepreneurial Innovation
Studies have shown that entrepreneurial innovation not only creates wealth, but is also a vital factor that influences strategic planning.  While efficiency is an important ingredient for business success, real growth can only be achieved through innovation.

In fact, about 90 percent of businesses in the United States place innovation high on their priority list.  Innovation is required to sustain growth.  Even as we speak, the importance and the impact of innovation on business and economic growth continue to increase.

How you can be more innovative
One way to fast track innovation in your company is to create a culture which attracts and retains talented people.  As always, the resulting technical revolution or new business strategy will be the result of a mixture of new ideas, realistic goals, and motivated people.

Just because a product, service, or process is new doesn’t necessarily mean it is innovative.  These products, services, or processes need to pass through stringent commercialization stages before finding their way to the marketplace.

“An established company which, in an age demanding innovation, is not able to innovate, is doomed to decline and extinction.”
- Peter Drucker

In order to strengthen your ability to innovate, you need to have within your organization a dependable innovation think-tank.

What drives innovation?
According to numerous studies, intense competition coupled with strong demand is one of the major drivers of innovation.  The more competitors there are entering the marketplace, the greater the competition.  This situation drives up innovation, creating even more new products and services that add to the wealth of society, and benefits us all.

Our country and the world need more innovators
Today, we need entrepreneurs and innovators more than ever!
In light of globalization, technological advancements, economic as well as political issues, innovation will more than ever play a major role in delivering more wealth and value to support a rapidly growing population, both national and global.
Innovation is the key to making the world a better place to live.