Innovation, Entrepreneurship and Profit – How They Are Tied Together

What is Entrepreneurship? When we think of entrepreneurship, what immediately springs to mind are people in business, and small-scale venture or businesses. The definition of entrepreneurship varies depending on the viewpoint used. It might be a field in the company, or it may be an activity in which individuals engage in. Describing the procedures involved in it defines what entrepreneurship is.

Recognising and hunting innovations, like enhancing an existing product line, is one of the procedures in entrepreneurship. However, it is not only innovating, this process should be taken a step further for it to be regarded as a member of entrepreneurship.

The step further is to transform the innovation into economic products, something which will create income. In entrepreneurship, an individual or a group of people identify a business opportunity by finding a potential or valuable thing, product or activity which may be used for business and create sustainable gain.

After the market value generated by the company opportunity or innovation is higher than the value of the worth of the combo of assets utilised to make the opportunity or innovation, then there is profit. Profit occurs when the value of these resources utilized to make an item is raised through innovation.

The definition of entrepreneurship is located in a single but most crucial theory: discovery. Without discovery and innovation, there will be a stagnation in the market economy since there will be no progress. Entrepreneurship paves the way for economic development, as it supports economic development through its innovation and discoveries.

Through entrepreneurship, better and new things, processes and systems have been created, recreated and uncovered. The discovery or creation doesn’t have to be isolated to new product lines or existing product lines. Also, it can be applied to methods of manufacturing, market, assets or a business or even an industry. Entrepreneurship can provide solutions for economic stability as it always seeks advancement and development of our resources to give them a larger worth.

Allow ‘s take these situations as an example of knowing what entrepreneurship is. Have a Look at these situations:

A stay at home mother who knows how to cook delicious Indian cuisine starts to market them to the staff and teachers of the nearby school.

A downsized employee found another use for older vehicles, designs and fixes them, and made a playground for the pet care centre.

A scientist discovers a new element but doesn’t make an effort to recognise practical uses for it.

All the situations except for that of the scientist reveal entrepreneurship. Remember that entrepreneurship is finding or enhancing new product lines, market, procedures, resources or organisation. The stay at home mother found a new market in her area, the nearby school, and she took good advantage of it to make income. The downsized worker developed a new use for older vehicles.

The situation with the scientist can’t be regarded as entrepreneurship. There was not any effort to create a market value for the new element as the scientist did not attempt to identify its practical uses. If he created a product with the usage of the new element, then that could be identified as entrepreneurship.