The role of innovation for entrepreneurial start-up and/or firm growth - Coursework Example

Innovation for Entrepreneurial Start-Up Introduction Innovation is duly considered to be a reflection of mankind’s existence and developmental pattern within this world. It has been supporting humans in every aspect of their lives staring from sustenance to flourishment. As a result, human societies over multiple decades have expanded the implementation boundaries of the innovation concept. The present scenario visualizes such an implementation within the areas of both business and economic development. Taking such implementations into consideration, this discussion will majorly focus towards analyzing the techniques through which innovation have supported entrepreneurial start-up and/or firm growth in the present competitive market scenario. Entrepreneurship business processes in the present scenario majorly focus on developing their respective competitive factors rather than just paying much attention towards average functionality rates. In an associated manner, the entrepreneurs find innovation to be a big supportive aspect for them based on the fact that it provides them with the flexibility of blending their functionality patterns in whichever design they find appropriate (Naude & et. al., 2011). Thus, with this concern, the coursework will majorly focus towards analysing the ways through which innovation can provide a new or an existing business process with a competitive advantage from a better marketing stance. In addition, specific focus will also be laid on analyzing the statements and facts mentioned by multiple authors in relation to how innovation does support and bring benefits towards entrepreneurial start-up and/or firm growth. Aim & Objectives The aim of the coursework is to identify the role of innovation in the initialization of new and development of existing entrepreneurial business processes for entrepreneurial start-up and/or firm growth. By taking into concern this particular aim, the following objectives have been framed: Analyzing the importance of new and existing entrepreneurial business processes in the present competitive economic scenario Understanding the business oriented dimensions of innovation Identifying the specific areas within which new and existing entrepreneurs can implement innovation in their respective business processes Evaluating the growth of new and existing entrepreneurship business processes in ‘Lao People's Democratic Republic’ Literature Review Theoretical Background Establishment and continuation of a business process have numerous folds. Thus, it becomes the prime role of every entrepreneur to combine the aspects of their unique creativity with appropriate innovation and project the overall mixture in front of the world as a specific and fruitful business process. In a similar alignment, Okpara (2007) appeared to demonstrate much regarding the relation prevailing between entrepreneurial creativity and innovation. Okpara (2007), by elaborating various significant aspects, have illustrated the patterns through which an entrepreneur can utilize such a relationship within the business process from where appreciable share of profitability can be attained. The credential facts elaborated by Okpara (2007) also deciphered the necessity for the entrepreneurs towards the implementation of new and innovative technological tools within their respective business process, failure to which might eventually result in deteriorating their business functionality and affect start-up and/or firm growth. In contrary, Ujwary-Gil (2012) elaborated a different dimension of innovation implementation within small or large-scale business process. According to Ujwary-Gil (2012), innovation should be used as a tactical aspect within the strategic portion of a business process. From a general perspective, one can perceive about the motives of utilizing innovation as a driving factor of economy as well as business processes and thus, major amount of focus should be laid upon the management perspective rather than just remaining confined to technology aspects. If evaluated from a logical sense, the justifications made by Ujwary-Gil (2012) in terms of reinforcing motives and thoughts can be duly considered as quite appreciable. Moreover, certain specific facts presented by Ujwary-Gil (2012) also illustrated about how entrepreneurial business processes implement innovation in order to develop a unique competitive advantage. Specific levels of contribution made by small or medium scale business processes towards a nation’s economic growth also reveal the opportunity of attaining a better competitive stance in the overall market. Broader Aspect of Innovation Implementation in Entrepreneurship Business In relation to the above context, Braunerhjelm (2010) paid utmost attention on analysing how innovation helps such business processes in terms of making huge contribution relating to entrepreneurial start-up and/or firm growth. Likewise, Braunerhjelm (2010) also appeared to lay considerable amount of focus on the relationship prevailing between market knowledge, business functionality and innovation. The facts mentioned by Braunerhjelm (2010), argumentatively quoted innovation implementation within entrepreneurial business processes as an incentive structure that lays equal amount of emphasis to all possible dimensions and entities of a business process, starting from the planning stage to the effective allocation and utilization of functionality resources. Braunerhjelm (2010) projected his through process in a much more precise manner by laying equal amount of focus towards the downfalls within the economic theories and models that does not take consideration of the contribution of innovation towards the economic development process. Innovation & Entrepreneurship as an Economic Driving Tool While identifying the role of innovation for entrepreneurial start-up and/or firm growth, it can be asserted that a majority of the economic developmental models are basically the theories, which cannot be implemented in the real time scenario without the presence of specific technological or strategic innovations. Apart from this, Aldrich & et. al. (2007) also projected a much broader picture regarding the necessity of innovation implementation within the entrepreneurship business processes in order to make immense entrepreneurial start-up and/or firm growth. In contrary to others, Aldrich & et. al. (2007) have taken the reference of the increasing level of global competitiveness as a mandate factor for technological implementation within the business processes. Likewise, based on the above elaborations, Aldrich & et. al. (2007), has described innovation as the major growth driving factor for entrepreneurial business processes at the domestic as well as the international levels. Specific reference regarding the legal aspects associated with the business processes have also been taken by Aldrich & et. al. (2007) in order to project how innovation can help in bringing about suitable levels of changes within the business processes with the aim of making immense entrepreneurial start-up and/or firm growth. Innovation Implementation and Entrepreneurship Business Development in Laos In relation to identify the role of innovation for entrepreneurial start-up and/or firm growth, specific reference of Laos (South-East Asia) has been taken into concern. This will certainly aid in finding out the contribution made by innovation towards developing the small and medium-sized businesses within this geographical area. In this regard, Vixathep (2014) appeared to integrate the economic scenario of Laos within the necessity of entrepreneurship business development. The facts mentioned by Vixathep (2014) illustrated about the initiatives undertaken by the Laos government in terms of lowering majority of its trade barriers against FDI. Through these facts, Vixathep (2014) intended towards projecting thoughts about how such governmental initiatives might help Laos in boosting up its economic conditions by making immense entrepreneurial start-up and/or firm growth. In relation to the above context, Banomyong (2001) has elaborated about the increasing pace of international trade flow and freight transportation within Laos as a sign of its economic development. Banomyong (2001), by elaborating varied facts, made an attempt in terms of elaborating how the communist governmental structure within Laos tended towards developing international business processes within its domestic markets. Evaluation of such facts of Banomyong (2001), from a logical perspective, revealed the development of opportunities for multiple new entrepreneurs in terms of initializing and developing their SMEs within Laos by taking innovation and financial based support from the foreign governments. External Governments Supporting Entrepreneurship Development in Laos through Innovation Laos, being a landlocked nation, specifically lacks the capability of generating high amount of revenue from its domestic markets and industrial sectors. As a matter of fact, it has to rely on the financial aid provided by the foreign supporters in terms of taking its economy to a specific level of development. In alignment with these aspects, Dees (2012) has specifically laid emphasis the development of social entrepreneurship within landlocked and financially deprived nations. According to Dees (2012), there exist various possible benefits that can be attained as result of facilitating and developing such business processes through effective implementation of innovation. In accordance with the viewpoints of Dees (2012), social entrepreneurship subsequently helps in effectively maintaining inflow and distributing varied kinds of resources such as financial, medical as well as healthcare, technological and industrial development resources among others. Difficulties in Entrepreneurship Business Establishment within Laos Due To Lack of Innovation If seen from a logical perspective, the development of small or large-scale entrepreneurship business processes through necessary provision of innovation and financial support might turn out to be a form of potential economic development factor for the nations such as Laos. Associatively, it also projects a vital opportunity for the new and financially stabilized entrepreneurs in terms of initializing their small or medium scale business processes within such markets when the level of competition is much less. A similar instance can be addressed within the recent initiative undertaken by the World Bank in terms of funding innovative entrepreneurs within Laos, providing an opportunity to them in setting up their respective business processes in a much effective manner. This finds specific alignment with the facts mentioned by Dees (2012), regarding the provision of foreign financial support to economically deprived nations. However, the deteriorated state of Laos’s economy might impose tremendous negative impact on the establishment of new business processes. Justification regarding this viewpoint can be provided by taking into concern the facts mentioned by the authors in the previous sections of the discussion. In this context, Laos being a landlocked nation lacks availability of necessary technological and innovation prospects that might make it difficult for the new and existing entrepreneurs in terms of installing new production/manufacturing processes. In this regard, Yu (2006) elaborated that why major global powers ignored to establish their trade functionalities within technologically and economically deprived nations such as Laos. Yu (2006) also specified the unavailability of proper options about attaining necessary resources that often acts as one of the major deterrent factors. General Reliance of Entrepreneurship Business on Innovation It can be apparently observed that a majority of the entrepreneurial business processes in the present day scenario rely on the availability of potential resources. As a matter of fact, the techniques that are used for attaining such resources should also be innovative. Dees & Anderson (2003) in a collaborative manner have projected certain facts that find specific alignment with the provided context. As per the viewpoints of Dees & Anderson (2003), new and existing entrepreneurship business processes often utilize innovation for attainment of cost effective techniques through which they can boost up their respective performance levels. Impact of innovation on Creative Entrepreneurial ideas In a straight alignment with the above concepts, Baldacchino (2009) projected a specific linkage prevailing between innovation and creative entrepreneurial business process. As per the standpoints of Baldacchino (2009), it is the creative factor of the entrepreneurs based upon which necessary innovation parameters can be implemented. The facts mentioned by Baldacchino (2009) also appeared to impose significant impact on the creative skills of the new and existing entrepreneurs in terms of balanced functionality and periodic implementation of business strategies. In precise, it can be inferred that Matthews (2007) has linked up innovation and entrepreneurship business processes with the psychological and economic perspectives. Clearly from these aspects, the expansion of the boundaries within which innovation and entrepreneurial business processes can be compared upon. Morris & et. al. (2005), in a contradictory manner illustrated the necessity of the researchers to analyse every possible aspect of innovation within entrepreneurial business processes through which, multiple scopes regarding the development of existing entrepreneurial theories can be attained. This prospect in a theoretical manner finds alignment with the facts mentioned by Fillis & Rentschler (2010), as per which, the intervention of innovation within the entrepreneurship theories becomes a mandate. This eventually makes the new and existing entrepreneurs to bring about significant levels of development within their respective business processes at large. Contribution of Innovation to Women Entrepreneurship Business Development Women in the present era are getting accounted as effective entrepreneurs. As a matter of fact, Lavoie & et. al. (2001), have taken specific references of the implementation of innovation within the development of female owned business processes for the purpose of developing the society as well as the economy of a nation. From a technical perspective, Alpeza & et. al. (2012) illustrated the ways through which innovation as well as creativity can be utilised for developing franchisee entrepreneurial business processes. In this regard, the authors have specifically targeted the new and creative entrepreneurs who intend to establish a risk free business process within a competitive marketplace. A similar context has also been provided by Tu & Yang (2013), wherein the authors provided a precise integration of innovation within small and medium scale start-up entrepreneurship business processes. From a wider aspect, Fairoz & et. al. (2010) projected certain thoughts about the support provided by innovation and SMEs towards developing the deprived economic state of Sri Lanka. However, such thoughts can also be applied in a general sense to multiple other forms of new or existing SMEs that tend to develop nation’s economy by strengthening the financial conditions. Impact of Innovation on Youth Entrepreneurs Multiple nations have considered the youth entrepreneurship business processes as one of the future sustainability aspects. In this regard, the facts provided by Faltin (2001) also illustrated similar kind of thoughts regarding how innovative strategies will support the positive intentions and causes of young entrepreneurs in terms of establishing their business processes. In an inclined manner, Alegre & Chiva (n.d.) have projected the ways through which innovation can bring about appreciable amount of development within the overall business and strategic learning capabilities of new and existing entrepreneurship business processes that forms a vital aspect of their survival. Moreover, Shaw & et. al. (2006) illustrated the relationship prevailing between corporate entrepreneurship business processes and innovation. The relationship mainly aimed towards how innovation can help in developing the functionality rates of corporate business organizations. Innovation Providing Support to Entrepreneurship Businesses by Mitigating Risk Factors Hyrsky & Tuunanen (1999) majorly focused on the ways through which innovation can be utilised by the entrepreneurs in terms of mitigating their risk possibilities by a major extent. This can be duly considered as a vital factor for the new and existing entrepreneurial business survival. On a separate perspective, Thornton & et. al. (2011) has taken into concern varied socio-cultural factors that can be enhanced through effective implementation of innovation within entrepreneurial business activities. From a developmental perspective, Hasan & Harris (2008) have specifically illustrated about the involvement of innovation within the latest e-commerce activities that conduct by majority of the SMEs of this modern day context as a form of business expansion. Conclusion The above discussion has been highly credential in terms of elaborating the support provides by innovation towards the emergence and development of new entrepreneurial business processes within multiple economies. Throughout the discussion, multiple facts have been provided that illustrate the possible dimensions of business within which innovation gets applied in the present economic scenario. Aspects related to socio-cultural development as a result of innovation implementation within entrepreneurial business processes have also been taken into concern for discussion in order to identify the role of innovation for entrepreneurial start-up and/or firm growth. Critical Review of the Content of the Articles Name of the Journals Authors’ Name/ Date Sample Characteristics, Data Analysis And Findings Implications for Entrepreneurs Limitations & Future Research directions The Strategic Management Society, In Conjunction with John Wiley & Sons, Is Pleased To Announce the Launch of a New Quarterly Journal Aldrich, H. & et. al., 2007. Specific focused towards the launch of a new journal based on innovation & entrepreneurship Highly implicative Changing trend of innovation & entrepreneurship business might pose out as a limitation Entrepreneurial Orientation, Innovation and Firm Performance: The Importance of Organizational Learning Capability Alegre, J. & Chiva, R., No Date Focused towards the increase in entrepreneurial firm’s performance due to innovation implementation Highly implicative Lack of functionality resources might turn out as a limiting factor The Role of Creativity and Innovation in Implementation of Franchising Business Model in Croatia Alpeza, M. & et. al., 2012. Projection of the benefits attained from the integration of innovation and entrepreneurship Highly implicative Imitative market competitors might turn out as a challenge International Freight Transportation Choices for Lao PDR: the Dilemma of a Less-Developed and Land-Locked Country Banomyong, R., 2001. Contribution of innovation for improvising trade practices and entrepreneurship business in developing nations Moderately implicative Lack of financial resources might pose out as a potential limitation Entrepreneurial Creativity and Innovation Baldacchino, L., 2009. A link between innovation, creativity and development of entrepreneurial business process Highly implicative Imitative market competitors might turn out as a challenge Entrepreneurship, Innovation and Economic Growth Braunerhjelm, P., 2010. Role of innovation and entrepreneurship in a nation’s economic growth Highly implicative Economic crisis might hamper the growth process Social Entrepreneurship Provides Innovative Cost-Effective Development Solutions Dees, J. G., 2012. Development of society and social entrepreneurship as a result of innovation implementation Highly implicative Lower growth potential in certain narrowed down societies For-Profit Social Ventures Dees, J. G. & Anderson, B. B., 2003. Development of social entrepreneurship through innovation Highly implicative Lack of resources might hamper the overall growth The Role of Creativity In Entrepreneurship Fillis, I. & Rentschler, R., 2010. Creativity and innovation in entrepreneurial business process Highly implicative No specific limitations Creating a Culture of Innovative Entrepreneurship Faltin, G., 2001. Integration of innovation and entrepreneurial business Highly implicative No specific limitations Innovativeness and Risk-taking Propensity: A Cross-Cultural Study of Finnish and U.S. Entrepreneurs and Small Business Owners Hyrsky, K. & Tuunanen, M., 1999. Role of innovation in developing small scale business processes in developed nations High implication Necessity of economic stability is a mandate factor Entrepreneurship and Innovation in E-Commerce Hasan, M. & Harris, E., 2008. Role of innovation in ecommerce business development High implication Availibity of financial support A Publication Devoted to Fostering Entrepreneurship and Small Business Development Lavoie, D. & et. al., 2001. Innovation and small enterpprise3 development projects Moderate implication Necessity of flexible government participation The Entrepreneur’s Business Model: Toward a Unified Perspective Morris, M. & et. al., 2005. Business development perspective due to innovation High implication Economic financial stability is a mandate factor Innovation and Entrepreneurship in Developing Countries Naude, W. & et. al., 2011. Contribution trend of innovation in improving entrepreneurial business processes in developing nations High implication Necessity of economic stability is a mandate factor The Value of Creativity and Innovation in Entrepreneurship Okpara, F. O., 2007. Necessity of entrepreneurial creativity in business development High implication Financial & technological difficulties The Role of Entrepreneurship, Innovation, and Intuition Pohl, J., 2011. Link between entrepreneurship and innovation High implication No specific limitation, majorly beneficial BUS300 Innovation and Entrepreneurship. Queen Mary University of London, No Date. Link between entrepreneurship and innovation High implication No specific limitation, majorly beneficial Corporate Entrepreneurship and Innovation Part 2: A Role- And Process-Based Approach Shaw, E. & et. al., 2006. Role of innovation in developing the corporate entrepreneurship trend High implication Dependable on the changing corporate strategies The Importance of Innovation in Entrepreneurship SME Corp. Malaysia, 2013. Contribution of innovation in entrepreneurial business development Moderate implication Underdeveloped technological factors might hamper the growth pace Socio-Cultural Factors and Entrepreneurial Activity: An Overview Thornton, P. H. & et. al., 2011. Link between social entrepreneurship and innovation High implication No specific limitation has been addressed The Role of Entrepreneurial Creativity in Entrepreneurial Processes Tu, C. & Yang, S., 2013. Necessity of creativity and innovation in entrepreneurship[ High implication No specific limitation has been addressed References Aldrich, H. & et. al., 2007. The Strategic Management Society, In Conjunction with John Wiley & Sons, Is Pleased To Announce the Launch of a New Quarterly Journal: Strategic Entrepreneurship Journal, pp. 1-6. Alegre, J. & Chiva, R., No Date. Entrepreneurial Orientation, Innovation and Firm Performance: The Importance of Organizational Learning Capability. Introduction, pp. 1-22. Alpeza, M. & et. al., 2012. 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International Journal of Innovation, Management and Technology, Vol. 4, No. 2, pp. 286-289. Ujwary-Gil, A., 2012. Contemporary Innovation and Entrepreneurship Concepts. A Quarterly Journal of Nowy Sacz School of Business – National-Louis University, Vol. 8, Issue. 4, pp. 2-115. Unite For Sight, 2013. Social Entrepreneurs as Engines of Innovation. Module 4: The Role of Innovation. [Online] Available at: http://www.uniteforsight.org/social-entrepreneurship-course/module4 [Accessed November 23, 2014]. Vixathep, S., 2014. Entrepreneurship, Government Policy and Performance of SMEs in Laos. Graduate School of International Cooperation Studies Kobe University, No. 28, pp. 1-21. Yu, P. K., 2006. Trips and Its Discontents. Marquette Intellectual Property Law Review, Vol. 10, Issue.2, pp. 370-410. Read More