Entrepreneurship, Innovation and Change: An Overview
Each content mentioned above plays a unique and complementary role, reflecting unity in diversity.Entrepreneurship
Entrepreneurship is viewed as a field of enterprising social practice that seeks to improve the human and social condition by critically transcending existing technical and practical limitations. Entrepreneurship is enterprising action underpinned by that spirit that embraces Challenges of risks which may be economic, social or political in nature.
An entrepreneur is a person who initiates and manages new ventures. “Initiation” and “Management” are parallel actions of entrepreneurs. Initiation focuses on ‘Choice’ at the outset, where management is concerned with continuation and comprises four main functions: coordination, control, intelligence and strategic planning.
E M Kauffman, an entrepreneurial philosopher defines entrepreneurship as follows:
“Entrepreneurship is a process through which people and teams pursue an opportunity, use resources and initiate change to create value. Entrepreneurs are driven by a need to control their own destinies and bring their dreams to the market place.” According to him an aspiring entrepreneur should possess the following traits:
2. Thrive on uncertainty
3. Self confidence
6. Business knowledge
7. Good people judgementInnovation
Innovation focuses on the practical use and potentially entrepreneurial application of new ideas as products of human ability and power for creativity in the interest of socio-economic change. Innovation (as a product of science and technology) is today the foundation of political and socio-economic development characterizing the information-based, knowledge-based society. And yet the process of innovation and change are pre-dominantly driven by the entrepreneurial spirit: the emerging spirit that is willing to address the never-ending challenges for the improvement of the conditions of human and social life.
Innovation is generally viewed as implementation of new idea or moving successfully towards new directions. To make innovation possible some amount of creativity is essential and creativity finds its fulfillment in innovation.
According to Schumpeter, innovation is creative destruction. Growth and development of an economy is largely a function of innovation. Society and businesses are becoming more knowledge based, technology is developing quickly, and aspirations of the workforce are changing entire business environment. To survive and succeed an organization must be flexible and willing to change and create innovative ideas.
In common knowledge, there is hardly any difference between innovation and creativity. However, there is a difference between innovation and creativity. Creative work directs habitual ways of thinking. Innovative work utilizes habits, traditions and cultures to arrive at new ways of doing things.Change
Change represents perhaps the most fundamental concept; without the possibility of change, the very idea of entrepreneurship and innovation would have little meaning. Though change is often resisted, it is always an opportunity. Resistance may be based on rational or emotional factors, but before any implementation, resistance should be overcome by team building and by giving people ownership and involvement in the change process. Any major change must be well planned and handled with care, change is distributing when it is forced on an organization, and it is exhilarating when done by the organization at its own speed.
Adapting to change is the most significant of all challenges business organizations have to face. Internal reasons for change are pro-active, but when change is triggered by external facts it is reactive. Change begins and ends with people. So as many people as possible must be involved with the change process, particularly those likely to be affected by the change. Managing change involves change in attitudes, organizational culture and structure, top management commitment, resource availabilities and appropriate tools and techniques.
Change is an inherent characteristic of any organization; all organizations whether in the public or private sector must change to remain relevant. Change can originate from external sources through technological advances or social, political, economic process or it can come from inside the organization as a management response to a range of issues such as changing clients’ needs, costs or human resources or a performance issue. It can affect one small area or the entire organization. Never the less, all changes whether from external or internal sources, large or small, involve adopting new mind sets, processes, policies and behavior.
Irrespective of the way the change originates, change management is the process of taking planned and structured approach to help align an organization with change in its most simple and effective form. Change management involves working with an organization’s stakeholder groups to help them understand what the change means for them, helping them make and sustain the transition and working to overcome any challenges involved from management perspective. It involves the organizational and behavioral adjustments that need to be made to accommodate and sustain change. In Change management, the goal is to replace negative habits with new ones. The prime objective of change management is to bring about significant changes to the way certain jobs, assignments and processes are structured currently so that ultimately the organization can increase its effectiveness.Professor Rafiqul Islam
Department of Business Administration
Faculty of Business & Entrepreneurship, DIU