Innovation is Basic Distinctiveness for Entrepreneurship
Entrepreneurship is imaginative in the sense that it involves creation of value. The significance of innovation in entrepreneurship is shown by coming up with new way to produce a product or a solution. You must realize that in the absence of entrepreneurship ‘matter’ does not become a “resource.” By combining the various factors of production, entrepreneurs produce goods and services that meet the needs and wants of the society. Every entrepreneurial act results in income and wealth generation. The importance of innovation in entrepreneurship is another key value for the longevity of a business. Even when innovations destroy the existing industries, for example, zerox machines destroyed carbon paper industry, mobile telephony threatens landline/ basic telephony, net gains accruing to the economy lend such entrepreneurial actions as commendable as the acts of creative destruction.
Other factors that raises the importance of innovation in entrepreneurship is competition. It stimulates any entrepreneur to come up with something much better than their competition in a lower price, and still be cost-effective and qualitative. Entrepreneurship is creative also in the sense that it involves innovation- introduction of new products, discovery of new markets and sources of supply of inputs, technological breakthroughs as well as introduction of newer organizational forms for doing things better, cheaper, faster and, in the present context, in a manner that causes the least harm to the ecology/environment. It is possible that entrepreneurs in developing countries may not be pioneering/ innovative in introducing pathbreaking, radical innovations. They may be the first or second adopters of technologies developed elsewhere.
The innovation in entrepreneurship helped the nation by changing with the times and producing new products and service from ones that previously exists. And, being innovative has helped us become successful in all our endeavors.