Entrepreneurship & Innovation

Meaning of Entrepreneurship
Entrepreneurship is the practice of starting new organizations or revitalizing mature organizations,
particularly new businesses generally in response to identified opportunities. Entrepreneurship is
often a difficult undertaking, as a vast majority of new businesses fail. Entrepreneurial activities are
substantially different depending on the type of organization that is being started.
Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-
time) to major undertakings creating many job opportunities. Many "high value" entrepreneurial
ventures seek venture capital or angel funding in order to raise capital to build the business. Angel
investors generally seek returns of 20-30% and more extensive involvement in the business.[1]
Many kinds of organizations now exist to support would-be entrepreneurs, including specialized
government agencies, business incubators, science parks, and some NGOs. Lately more holisitc
conceptualizations of entrepreneurship as a specific mindset (see also entrepreneurial mindset)
resulting in entrepreneurial initiatives e.g. in the form of social entrepreneurship, political
entrepreneurship, or knowledge entrepreneurship emerged.

Innovation in organizations
A convenient definition of innovation from an organizational perspective is given by Luecke and
Katz (2003), who wrote: "Innovation . . . is generally understood as the successful introduction of
a new thing or method . . . Innovation is the embodiment, combination, or synthesis of knowledge in
original, relevant, valued new products, processes, or services.Innovation typically involves
creativity, but is not identical to it: innovation involves acting on the creative ideas to make some
specific and tangible difference in the domain in which the innovation occurs. For example, Amabile
et al. (1996) propose: "All innovation begins with creative ideas . . . We define innovation as the
successful implementation of creative ideas within an organization. In this view, creativity by
individuals and teams is a starting point for innovation; the first is necessary but not sufficient
condition for the second".For innovation to occur, something more than the generation of a creative
idea or insight is required: the insight must be put into action to make a genuine difference,
resulting for example in new or altered business processes within the organization, or changes in
the products and services provided.A further characterization of innovation is as an organizational
or management process. For example, Davila et al. (2006), write: "Innovation, like many business
functions, is a management process that requires specific tools, rules, and discipline."From this
point of view the emphasis is moved from the introduction of specific novel and useful ideas to the
general organizational processes and procedures for generating, considering, and acting on such
insights leading to significant organizational improvements in terms of improved or new business
products, services, or internal processes.Through these varieties of viewpoints, creativity is
typically seen as the basis for innovation, and innovation as the successful implementation of
creative ideas within an organization (c.f. Amabile et al. 1996 p.1155). From this point of view,
creativity may be displayed by individuals, but innovation occurs in the organizational context only.

It should be noted, however, that the term 'innovation' is used by many authors rather
interchangeably with the term 'creativity' when discussing individual and organizational creative
activity. As Davila et al. (2006) comment, "Often, in common parlance, the words creativity and
innovation are used interchangeably. They shouldn't be, because while creativity implies coming up
with ideas, it's the "bringing ideas to life" . . . that makes innovation the distinct undertaking it is."
The distinctions between creativity and innovation discussed above are by no means fixed or
universal in the innovation literature. They are however observed by a considerable number of
scholars in innovation studies.

Entrepreneurship and Innovation in Global Technology Startups

The Challenge of Entrepreneurship – Founding a technology startup

Product Development and Technology Innovation

The past two decades have seen the emergence of India as a leader in IT Services. Companies such
as TCS , Wipro, Infosys and many others have left an indelible mark on the Indian business
landscape. However, to further enhance this leadership, India must look to innovative technology
creation in addition to being a leader in outsourcing destination for IT services. New technology
product startups must emerge to deliver innovative products to global markets. We must think of
building the next Microsoft, Cisco, Apple or Google out of India. These companies were innovators
in their areas.

To give an example of what technology product innovation can do to a country, Israel was formed in
1948. At that time Israel was an undeveloped desert and surrounded by hostile countries. However,
Israeli companies made the transition to innovative product development very early. They
conceived and built products that no on else in the world did. Today Israel, with a population of just
7 million, is an acknowledged global technology leader in electronics, software, bio-technology,
telecommunications, networking and defense equipment. It boasts an annual per capita GDP of US
$26,000.

Technology product development startups are different

Technology startups innovate! They think differently! They do not wait for other companies to tell
them what to do. Technology startups are often based on a simple product idea that can change the
world. They must do some original thinking to conceive an idea, architect it, build it, market it and
sell it. This means a lot of responsibility and stiff challenges, but it is also the path to leadership and
great success.

Technology startups rely on the quality of intellectual property and innovation, not just revenue
and number of employees. A small group can make a very large impact. Technology startups often
grow fast and can be attain large success in a short time span. This is not possible with a service
business.

Do you have the aptitude to start your own technology company?

Being an entrepreneur can be a great “career”. Starting a technology company takes a great idea
and the ability to sell it investors, employees and customers. You must first start thinking like a “job
creator” rather than a “job seeker”.

If you do your own technology startup, the “risk” to your technical career is very low. Worst case,
you will try for a few years and fail. But the skills you will learn in those years will be so valuable,
that any company will hire you for many times your original salary. Best case, your product
company will be so successful, that you will have created thousands of jobs and will become a job
creator and not a job seeker!

Being a risk-taker does not mean being stupid!

* You are single and your parents can support you

* You savings equal at least one year’s worth of your current salary

* Your spouse has a salary that can independently support the household

Preparing for a technology startup

Think of an idea while you are at your current company. Become an “intrapreneur” at your current
company. Show innovation, initiative, leadership and original thinking at your current job. Do your
current job as if you were doing your own startup. Your current employer will appreciate this and
you will gain the necessary experience before you do your own startup.

Write down your product ideas. Share them freely with colleagues. Do not worry about them
stealing your idea. It is hard to steal ideas. Continue to deliver at your current job. Utilize your
current job as a platform to “try out” the skills required to do your own startup.

Don’t give in to doubters!

When I started my first company in Silicon Valley, California in 1995, all my friends gave me
reasons why my idea would fail. But my company did eventually become a success. There are many
other examples. When Google was launched in 1998, many search engines such as Yahoo and Excite
were already pre-dominant in the marketplace. Many people doubted if Google would ever take off.
But it did and eventually became a huge success!

Do take opinions from people, but do not give up if you get negative opinions. Refine your idea until
you believe that it will succeed.Be brave. Take the plunge!

If you have dreamed of doing your own technology product startup, “now” is the time! Take the
plunge. You will be glad you did!

In any socio-technical system the people in the system work better when they understand how they
fit into the system as a whole. Road-mapping provides strategic aligning, a common language for
innovation, and builds bridges between technologists and business managers within your
corporation, and with your major suppliers and customers.

"When a firm lacks a publicly defined innovation process, everyone operates based on their own
past experience and assumptions. Because these are likely to be different, task timing, deliverables,
and interfaces won't match up."1

In successful medium and large companies, the innovation process is documented explicitly via
maps and charts, and implicitly communicated by words and practice. In young companies, the
innovation process is often a part of the firm's tacit knowledge base, and therefore it is invisible. To
grow substantially, though, young firms must eventually make the core element of their innovation
process explicit.

Relationship
Work at lunch and through your breaks can be a great option while you are starting up your
approved work from home business. There are always going to be small things that you can find
yourself doing while you are at your other job and as long as it does not interfere with your job
performance, you should be alright if you want to do some of your work during your breaks.
Another thing that you are going to want to be sure to do is make the most out of your evenings and
weekends. And always remember that whether your background is in general business or sales and
marketing, if you follow proven system of WSI Internet franchise you will build and expand your
client base and achieve recurring revenue streams.

The conceptual relationship between entrepreneurship and innovation has been discussed in the
literature for many years. The economics of innovation, in particular, have attracted increased
attention in recent years (Grupp, 2001; Arora, Fosfuri, & Gambardella, 2002; Stoneman, 1995).
Sundbo (1998) summarised the basic theories of the economics of innovation and identified three
competing paradigms in the current theoretical discussion of innovation: (i) the entrepreneur
paradigm; (ii) the technology-economics paradigm; and (iii) the strategic paradigm. The
entrepreneur paradigm can be traced back to the 1930s when Schumpeter (1934) first attempted
to establish a linkage between entrepreneurs and innovation
in theory, and viewed the entrepreneur as innovator. He maintained that innovation contributes to
the growth of the economy because entrepreneurs produce innovations. The concept of the
entrepreneur as innovator underpins the entrepreneur paradigm in which the role of the
entrepreneur is highlighted in the
innovation process. According to this paradigm, only a person who founds a new company on the
basis of a new idea can be called an entrepreneur. Entrepreneurship is viewed as a creative act and
an innovation. Entrepreneurship is about creating something that did not previously exist. The
creation adds value to the
individual and the community, and is based upon perceiving and capturing an opportunity
(Johnson, 2001). Bygrave and Hofer (in Legge & Hindle, 1997) held similar views. They regarded
entrepreneurship as a change of state, a dynamic process, and a unique event. Legge and Hindle
(1997) believed that people who lead teams and organisations to introduce innovations are
entrepreneurs. Entrepreneurs
seek opportunities, and innovations provide the instrument by which they might succeed.
Corporate entrepreneurship often refers to the introduction of a new idea, new products, a new
organisational structure, a new production process, or the establishment of a new organisation by
(or within) an existing
organisation. As Herbig et al. (1994, pp. 37 and 45) have observed: “Innovation requires three basic
components: the infrastructure; the capital; and the entrepreneurial capacity needed to make the
first two work.” Innovation is the specific tool of entrepreneurship by which entrepreneurs exploit
change as an opportunity for a different business or service. There is considerable overlap between
entrepreneurship and innovation (Kanungo, 1998; Sundbo, 1998; Drucker, 1994; Schumpeter,
1934). Moreover, innovation has to address market needs and requires entrepreneurship if it is to
achieve commercial success (Zhao, 2001)

Conclusion
This synergies between entrepreneurship and innovation through a review of the principal
literature in this field and case studies of entrepreneurial and innovative organisations in the dot-
com sector. The argument of the chapter is that a combination of entrepreneurship and innovation
is a crucial factor to the long-term sustainability of e-commerce and e-businesses. The author has
found that:
• Entrepreneurship and innovation are positively related to each other and interact to help an
organisation to flourish.
• Entrepreneurship and innovation are complementary, and a combination of the two is vital to
organisational success and sustainability in today’s dynamic and changing environment.
• Entrepreneurship and innovation are dynamic and holistic processes in entrepreneurial and
innovative organisations.
The chapter also broadly discussed key issues and problems in the implementation of
entrepreneurship and innovation in e-business. Because entrepreneurship and innovation are
systematic behaviours (Drucker, 1994), systematic efforts are required to incorporate them into
the operations of organisations. The “5 S’s”model is designed to address this need.
Entrepreneurship and innovation should be regarded as ongoing, everyday practice in
organisations, and this chapter has contributed to the development of such an attitude. However,
given the small sample size of interviews and case studies, and the nature of this qualitative study,
there are methodological limitations which do not permit any generalization of the findings of the
chapter to other situations. The perceptions of the people interviewed may not represent those of
the industry as they are personal understanding of entrepreneurship and innovation based upon
their respective experiences. To minimize the limitations, this author chose two small dot-coms in
Australia to complement the case studies of the three leading global players in the dot-com industry
— Amazon.com, Google, and eBay. Nevertheless, these limitations infer that further systematic and
comprehensive research would be useful — especially if it involves quantitative studies of a larger
sample size in different settings