Innovation and Creativity in Business

Introduction to Innovation and Creativity:

Definition:

• Creativity is the process of coming up with a new idea or thing that improves the efficiency or effectiveness of a system.
• Innovation involves improving an existing idea or thing and turning it into an opportunity.
• Commercializing an idea means turning it into a reality and creating wealth and power.

Reasons for Opposing Innovation:

• Entrepreneurs may fear that unforeseen innovations could cause disasters or have negative side effects.
• They may fear losing profits if the innovation does not meet expectations.
• If the entrepreneur holds a monopoly position in the market, there may be a fear of losing authority and control.
• There may be a fear of upsetting moral and social values or losing market confidence.
• Fear of upsetting tradition in production management and market scope.
• Fear of opening a loophole to competition and losing business grip.

Reasons for Innovation:

• Innovation is essential for entrepreneurs to solve inefficiency problems.
• It can reduce costs and increase social and market grip.
• Profit improvements can be achieved through newer technology in management and production.
• Innovation can help businesses compete with already established businesses.
• It can facilitate the opening of new markets both locally and internationally.
• It can facilitate product diversification to mitigate risks and losses.
• Innovation can protect the current position of monopoly or success.

Business Opportunities: Procedures for Starting a Business:

• Identify a business idea.
• Develop a business plan.
• Evaluate business demand and location.
• Register the business.
• Choose a business organization.
• Choose a business name.
• Obtain trading licenses/permits.
• Start-up and manage the business.

Means of Generating a Business Idea:

• Identify a need.
• Brainstorm.
• Build on skills, hobbies, or interests.
• Spot a market niche.
• Listen to what people say.
• Attribute listening.
• Gain from waste.
• Research.
• Import an idea.
• Daydream.
• Spin off from employment.

The Process of Screening a Business Idea:

• After generating business ideas, evaluate them through a screening process to select the best idea.
• The screening process must be done carefully, objectively, soberly, and without any emotions.
• Personal evaluation, personal skills, and market evaluation are important factors in the screening process.