Explain in detail, why creativity and innovation are critical traits of a successful entrepreneur.

Explain in detail, why creativity and innovation are critical traits of a successful entrepreneur. [20marks]

 Entrepreneurs have been described as people who have the ability to see and evaluate business opportunities, gather the necessary resources to take advantage of them and initiate appropriate action to ensure success, Meredith et al (1991). An entrepreneur is a risk- taker, a man, or woman who bears uncertainty, strikes out on his or her own, and through natural wit, devotion to duty and singleness of purpose, somehow creates a business and industrial activity where none existed before. Entrepreneurs are achievement- oriented, like to take responsibility for decisions and dislike repetitive and routine work. Creative entrepreneurs possess high levels of energy and great degrees of perseverance and inauguration, which combined with a willingness to take moderate, calculated risk, enable them to transform what began as a very simple ill- defined idea or hobby into something concrete.

Drucker argued that innovation is the tool of entrepreneurship. He added that both innovation and entrepreneurship demand creativity. Aiken [1973] defined creativity as the ability to combine ideas, things, or approaches in a new way. Innovation on the other hand is defined as the process of translating an idea or invention into a good or service that creates value or for which customers will pay. Hindles [2002] defines it as the combination of an inventive process and an entrepreneurship process to create a new economic value for detailed stakeholders.

Creativity and innovation are both considered to be overlapping constructs between two stages of the creative process, both are necessary for a successful enterprise [Martins and Terblanche 2003]. Creativity and innovation are also considered to be inseparable from entrepreneurship. Therefore entrepreneurs could be then argued by their nature the essence of creativity and innovation.  Innovation begins with creative ideas, so creativity is the starting point for innovation, so creativity is thereby necessary for innovation. Innovation is the implementation of creative implementation of creative, inspiration for example the creativity by Mark Zuckerberg of Face book only became an innovative after he commercialized it that is when he put it to use and captured value at the same time.

Every idea is a product of thinking and every product is the manifestation of idea naked in a thinkers mind thus creativity. There are people who see problems as opportunities to improve and do something mew or something better, these people who keep the two questions in their minds, “What can l do to make things better, or what can l do to make better things?”. For example Evan Williams, the CEO of Twitter has helped make the social network a part of a history. The library of Congress announced they that they would digitally achieve every tweet ever made, even with more than fifty million tweets shot off a day [Austin Carr, 2010].

Entrepreneurs implement creative ideas to introduce innovative products and services, or to deliver products or services or to deliver it in a new, more efficient and hence innovative way. Innovation in new product development could include upgrading an existing product or developing a totally new concept to create an original and innovative product [Larsen and Lewis 2007]. Henceforth, innovation is not only measured by the new products or services offered by an enterprise but also by new and more efficient ways of developing or delivering products or services, as such it cannot be separated from successful entrepreneurs.

Entrepreneurs do not operate in vacuum, they usually come from those industries where there are competitors who offer more or less the same products as theirs. Regardless of the competition, entrepreneurs need to be creative and innovative, they need to come up with product differentiation strategy as evidenced by Michael Porter in his strategies that will help to successfully compete against competitors for example Sir Richard Branson of Virgin Mobile.

Creativity and innovation are indeed critical traits of an entrepreneur. Most of the world’s successful entrepreneurs have exhibited the two inseparable traits beyond reasonable doubt. Pretorius, Millard and Kruger [2008] maintain that creativity is clearly part and parcel of the entrepreneurial skills required to successfully start a venture.

There are great business opportunities in applying creative thinking to solving

Mankind’s crying need for basic products and basic support services –better homes, better

Jobs, and a better way of life. There are going to be tremendous opportunities in education because we need fundamental and radical changes in Zimbabwe if we are going to be competitive with other countries. However, being able to adapt ideas is what makes an entrepreneur successful. There is nothing wrong with learning from others ideas. Creativity comes in when you expand upon it, when you take an idea and make it move.

 Entrepreneurs take bold creative steps but situations encourage creativity. Creativity is, however, enhanced when people have some freedom, but not too much, high internal commitment to the task, but not too high a commitment, high proportion of intense rewards, but some extrinsic rewards as well, some competition but not winners take all competition, Thompson (2001). Entrepreneurial activity depends on the process of innovation following creativity, not on creativity alone.

Enterprises throughout the world are experiencing what can be legitimately described as a revolution, rising energy and material costs, fierce international competition, new technologies, increasing use of automation and computers. All these are major challenges, which demand a positive response from the entrepreneur and management if the enterprise is to survive and prosper. At a time when finance is expensive, the firm’s liquidity is bordering on crisis, the need for creativity and innovation is more pressing than ever and as competitors fall by the way side, the rewards for successful products and process are greater.

Joseph Schumpeter (1934) believes that the concept of innovation, described as the use of an invention to create a new commercial product or service, is the key force in creating new demand and thus new wealth. Innovation creates new demand and entrepreneurs bring the innovations to the market. This destroys the existing markets and creates new ones, which will in turn be destroyed by even newer products or services. Schumpeter calls this process “creative destructions.”

Success in business today demands constant innovation. Generating fresh solutions to problems and the ability to inherit new products or services for a changing market are part of the intellectual capital market that gives an enterprise its competitive edge. In a dynamic environment, success comes from looking for the next opportunity and having the ability to find hidden connections and insights into new products or services, desired by the customer.

Successful entrepreneurs place high premium on attracting and keeping talent because wealth flows directly from innovation. Creativity is the root of innovation. It is a process and a skill which can be developed and managed throughout the entire enterprise. One of the first steps in creating a culture of innovation is unleashing the creativity in you. The challenge is getting to see the world with fresh ideas and to develop fresh solutions. Speed innovating is a proven approach for helping you develop breakthrough solutions in the shortest possible time.

Joseph Schumpeter views innovation as the source of success in the market economy, a view that is reinforced by today’s changing and competitive environment. The organization that is not creative and innovative cannot survive in the market place. Thus, entrepreneurs and enterprises are continuously creative and innovative to remain relevant to the customers, which is the purpose of every business.

 In conclusion, entrepreneurship is the vehicle that drives creativity and innovation. Innovation creates new demand and entrepreneurship brings the innovation to the market. Innovation is the successful development of competitive edge and as such, is the key to entrepreneurship. Creativity and Innovation are at the heart of the spirit of enterprise. It means striving to perform activities differently or to perform different activities to enable the entrepreneur deliver a unique mix of value. Thus the value of creativity and innovation is to provide a gateway for astute entrepreneurship actively searching for opportunities to do new things, to do existing things in extraordinary ways. Creativity and Innovation therefore, trigger and propel first rate entrepreneurship in steering organization activities in whatever new directions are dictated by market conditions and customer preferences, thereby delighting the customers to the benefit of the stakeholders.

REFERENCES

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(Sikszent Mihalyi, C. (1997) Creativity: Flow and the Psychology of Discovery and

Invention, New York: Harper Will Collins Publishers, Inc.

Okpara F.O. (2000) Entrepreneurship: Text and Cases. Enugu: Precision Printers and

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Drucker P. F. (1995) Management in a Time of Great Change. Oxford: Butterworth