Creativity is the novel step of being the first to identify that something might be possible in the first place. Or if I put my creative speaker hat on, I might say, “Creativity is a bioelectrical thunderstorm that precipitates an inescapable notion.” Creativity does not require money. Creativity, in general, is a precursor to innovation, and Entrepreneurship has always been about innovation. Creativity is however necessary but not sufficient condition for innovation. Apple has forced its competitors to rethink their products and sales techniques, to focus on design, to innovate. Of course this is not just down to the vision and charisma of Steve Jobs. It is creativity that enables an entrepreneur to act on the opportunities that present to him, in order to create competitive advantage for his company. Part of the romanticism of entrepreneurship is the thought that entrepreneurs are creative, innovative, go-getters, risk-takers, driven. ResearchGate: A Model of Strategic Entrepreneurship: The Construct and Its Dimensions, Business News Daily: Why Creativity Matters Most for Entrepreneurs, Entrepreneurship and Innovation: Class Distinctions for the Global Economy, LinkedIn: The Importance of Creativity and Innovation in Business, Paggu: The Importance of Innovation in Entrepreneurship. Steve Jobs and Steve Wozniak founded Apple Inc. back in 1977. Clubbing of Goals Becomes Possible. Creativity is of two types: individual and organizational and … I understand this consent is not a condition to attend LSUS or to purchase any other goods or services. How Innovation Contributes to Competitive Advantage? Innovation is the next step of creativity; it is its materialization and the means to generate wealth. In contrast to the globalization of big business, entrepreneurs and startup businesses can benefit from focusing on creating new products and services targeted at occupying previously unexploited niches within a developed economy. Creativity can be seen as process of generating ideas (McLean, 2007). Have a question or concern about this article? It goes without saying that creativity is already inherent among entrepreneurs; it is in their make-up. Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance people’s lives or to enrich society. Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance people‟s lives or to enrich society. ” In today’s world, entrepreneurship. Creative thinking is a must-have skill that an entrepreneur must have to create some inventive ideas and make the entrepreneurial process a … In building nurseries, a small clinic, dentist, even a virtual reality game suits and more than twelve restaurants are but some of the benefits that Apple employees enjoy. Innovation requires creativity, but innovation is more specifically the application of creativity. Its products are rapidly reaching legendary status, with their names being used, in many occasions, to define an entire market sector and not just a product. Vol. Creativity, realized through innovation is what drives our economy, is what capitalism is built on, is what creates companies like Apple, Microsoft, and Dyson and Goldman-Sacks. Entrepreneurs, however, have to be creative and innovative and take advantage of the ambient needs. 1. pp. So when we think about this element of creativity, innovation and invention, they're interrelated. These are provided in the form of physical rewards and generation of wealth; money. The most productive businesses are those that embrace creativity and inspire innovation. Entrepreneurship is like doing any other business, but there are some characteristics, which distinguish it from traditional business techniques. Some people believe you have to be creative in order to create innovative things. However, it does open up that economy to smaller, developing businesses, creating opportunities for entrepreneurs to experiment with new business models and ideas. Creativity is relat ed to finding a new idea; but innovation can be. Now, innovation is a fourth word that we've thrown into the mix. Although this is an inevitable aspect of globalization, it means that jobs, growth and wealth have been moving overseas. Innovation is at the heart of any growing economy, especially in those where standard practices and existing business models have become obsolete. If is strange that when the word creativity is mentioned most people think of painters or sculptors or even photographers and when the word innovation is used they think of technological advances, like 3D TVs, and companies like Apple and Siemens. Nowadays creativity and innovation is the driving force of the economy, usually in the form of digital and mobile applications and devices. Jobs and Wozniak worked in Job’s parents’ garage in order to create the first Apple PC. In general, entrepreneurs excel at recognizing and pursuing opportunities, whereas large, established companies excel at making use of opportunities and appropriating their value. So creativity and innovation are fundamental factors of wealth generation which is the cornerstone of our capitalistic economic system, which is the only applicable economic system in the world, as we speak. Whether launching a new social media platform, starting a digital marketing company or releasing the next big thing in tech gadgetry, entrepreneurs need to constantly push the boundaries of current trends, using new ideas and creative approaches. Successful entrepreneurship requires a focus on creativity, integrating innovation and strategic business practices. For example, introducing a new equipment that can reduce the electricity consumption by some percentage is an innovation. He is creative because he made that first very important step of becoming an entrepreneur. According to Runco and Jaeger, creativity requires originality and effectiveness. in Finance – Financial Analysis Online, B.S. This site uses Akismet to reduce spam. However, Apple has also contributed in the business creativity and innovation field its influence, or the influence its huge success has, to hundreds of other companies, most of them its competitors. Curriculum and Instruction: ESL Online, M.Ed. Incentivizing creative product and strategy development can help propel a business, with all employees actively seeking opportunities for further growth and innovation. Once again, Innovation cannot happen without creativity or invention, and neither creativity nor invention is useful in business if not properly executed. Creativity needs a spark and innovation needs fuel. What role do creativity and problem solving play in this relationship? By submitting this form, I am providing my digital signature agreeing that Louisiana State University Shreveport (LSUS) may email me or contact me regarding educational services by telephone and/or text message utilizing automated technology or a pre-recorded message at the telephone number(s) provided above. While creativity is the ability to produce new and unique ideas, innovation is the implementation of that creativity – that’s the introduction of a new idea, solution, process, or product. Entrepreneurship, Innovation and Economic Development “‘Discuss the relationship between entrepreneurship, innovation and economic development. Over time, entrepreneurship has become associated with creativity, the ability to develop something original, particularly an idea or a representation of an idea. Modern business practices have had to evolve rapidly to stay effective. The very notion of starting up your own business, take calculated risks and give your best to succeed, is the definition for entrepreneurial creativity. iphones, ipads, tablet PCs, smartphones and millions of applications that help the user cook a nice meal, pay his bills online or even monitor his diabetes are the life-line of the post 2008 crises economy. These can be found by going to teachingnotes.talcie.org and logging in with your account. Creativity Innovation can be both a process or a product. Money has been blamed for many things, and most of the times rightly so, however, together with an inherited ability and need for humans to be creative, it is the most common motive for business creativity and innovation. The burgeoning creative class is especially suited for this opportunity-seeking aspect of business innovation because they are tech savvy, proficient with social media and knowledgeable about digital marketing trends. Creativity is the heart of entrepreneurship and innovation is the oxygen that is keeping it alive. Educational Leadership: Teacher Leader Online, B.S. Although some consider the advantage-seeking behaviors of large companies as “creative” solutions to modern problems, these behaviors still prioritize the bottom-line: established products and services and reiterations of old business models. Apple has made other companies creative, by changing the market and the consumers. Conversely, Innovation is related to introduce something better into the market. Entrepreneurship is the process of making something original and valuable. And there is no innovation without creativity. Every sector of business and every sector of life is subject to creativity and innovation. Many companies have attempted to do this, very few have achieved it and only a handful have mastered it. Innovation Management - Managing Innovation in Business, Role of Leadership and Culture in Promoting Innovation and Creativity, Core Competencies – Competitive Base for Organizational Success. defined as the development of new or useful ideas by. So, not all entrepreneurs are innovative, however those who are, shape the world we live in with their creations. Entrepreneurship may play a role in each of those, or these all may come together, to play a role in some entrepreneurial venture. Innovation is the manifestation of creativity into a usable product or service. With the exponential globalization of the world’s economy, many industries have looked internationally for both manufacturing and market development. Creativity goes hand in hand with innovation. The combination of creativity and an entrepreneurial spirit in the person of the entrepreneur will inevitably end up into innovation in business and value-creation. You need to be creative and view an idea differently to be innovative. Apple employs some of the most creative mind in the world and provides the conditions for them to create and innovate. The invention refers to a new, unique concept while innovation is an idea which is as unique and useful as the original one. Entrepreneurship is key to innovating at the individual business level as well as inspiring overall business-sector growth. Nowadays, Apple employs more than 73,000 people around the world, has its headquarters in a 130,000 square meters in Cupertino, California, USA and generates an annual turnover in excess of 156 billion US dollars. Apple is a company that its actions reverberate in the entire business and consuming world, as well as in the technological developments of our era. New songs, new ideas, new machines are what creativity is about Mihaly(1997). Creativity goes hand in hand with innovation. Submit the form below and we will help with your questions! Innovation is extremely important that … Their continuous innovation in creating new financial products and finding ways to generate wealth is what led to the technological, commercial, entrepreneurial and consumption “boom” that started after the end of the 2nd world war and is still going strong now, even after many financial crisis that this same system produced, with the most serious being that of 2008 with many countries and millions of people still experiencing its effects. Your email address will not be published. Not the only, but one of the most significant reasons why people want to become entrepreneurs and push themselves to create something new, something exciting, something that other people, many other people, will buy. 6. Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities. They also provide a platform on which small businesses, utilizing the benefits of the new technologies and the new digital marketplace, can compete even with multinational corporations in a global marketplace. Creativity is a process by which a symbolic domain in the culture is changed. Innovations contribute to the success of the company. The whole idea of starting up a new business, a new company, comes from ones creativity. And rightly so, as they provide incredible flexibility and utility to the users, improving their way of life and quality of life, and at the same time generating new jobs and money. MBA in Entrepreneurship and Family Enterprise Online, MBA in Hospitality and Casino Management Online, M.Ed. This is especially true for large-scale, established businesses. It is an inspiring environment that actively promotes thinking. Innovation can be both of a process or a product. Because of this, innovative entrepreneurial business people are becoming increasingly integral to the stability and growth of developed economies. All of that implies high self-esteem and determination. Apple Inc. is not just a huge, very successful, very profitable company; it is one of the very few companies in the world that successfully combines, promotes and excels in creativity, innovation and design. Creativity is a function of thinking, which is possessed by almost all persons, whereas innovation is a specific function of entrepreneurship. Apple is a level above them. Many even say the perpetuation of these developed economies depends on the success of their creative entrepreneurs. Innovation refers to the application of an idea and, in many cases, is a collaborative enterprise. However, this should not solely be the role of the singular entrepreneur, small business owner or any specific employee. Teaching Notes Teaching notes have been created for this topic. Learn more about the LSUS online MBA in entrepreneurship program. Creativity needs a spark and innovation needs fuel. The Relationship Between Creativity and Innovation. Curriculum and Instruction: Education Technology Leader Online, M.Ed. The nature of creativity is about innovation leading to the creation of new ventures while entrepreneurship itself is a form of creativity or can even be referred to as business creativity and in most cases, new businesses are creatively original and functional Innovation is the next step of creativity; it is its materialization and the means to generate wealth. Despite the differences in definitions almost all researchers since Schumpeter agree on one thing- entrepreneurship is about change in some way, it is about innovation. in General Business Administration – International Business Online, B.S. This can be an idea, product, model, process, or a service. Creativity and innovation in entrepreneurship is the ability and urges to create. The image of Steve Jobs walking around the office barefooted, chatting with his employees about ideas he or they has is characteristic about the company culture. Curriculum and Instruction: Urban Education Online, M.Ed. The new entrepreneur wants to be independent, to do what he enjoys and believes he is best in doing, to leave his mark, to create. in General Business Administration Online, B.S. Modern business practices have had to evolve rapidly to stay effective. Redundancy in business practices can lead to financial stagnancy. In a nutshell, that’s how creativity, innovation, and entrepreneurship are related. And there is no innovation without creativity. In business and the media, the words creativity and innovation are used almost interchangeably. You should note that all inventions require a discovery. in Management & Administration – Human Resources Management Online, B.S. As large-scale industry has traditionally accounted for the majority of revenue in developed economies, the out-sourcing of their manufacturing and market distribution can reduce stability and growth in those economies. 855-704-0315, Site Map  |  Privacy Policy  |  Course Login. Ingenuity is at the core of modern entrepreneurship, which has become an important part of keeping well-developed economies growing. Business, any business, cannot exist without creativity. INTRODUCTION Drucker (1985) argued that innovation is the tool of entrepreneurship. 2, No. If for example the banking industry is used as an example of innovation in a lecture, the majority of people from the audience will most like wonder about the appropriate of the use of the word, when it comes to financial institutions such as Goldman-Sacks, J. P. Morgan and even the Royal Bank of Scotland. Apple actually created the marketplace for tablet PC with its introduction of IPad. You should note that not all innovations require an invention. His company does not need to be about revolutionary technology, new designs or new products. Entrepreneurship is the result of a disciplined, systematic process of applying creativity and innovation to needs and opportunities in the marketplace.. Learn how your comment data is processed. 35-49. Innovation is the successful development of competitive edge and as such, is the key to entrepreneurship. CREATIVITY, INNOVATION AND ENTREPRENEURS Creativity is thinking new things, and innovation is doing new things. In addition, both innovation and entrepreneurship demand creativity. Obviously, this is not initially a positive thing for an economy. Economists have even given this new type of economy a, very appropriate, name; digital economy. Creativity in Entrepreneurship: Importance and Types: The major contributor to economic growth is the Entrepreneurship but there is a huge impact of creativity on it. Curriculum and Instruction: Science, Technology, Engineering, and Math Online, M.Ed. This will be done by investing time, effort and money. To sta… Innovation is the implantation of creative inspiration. Creativity is a phenomenon whereby something new and somehow valuable is formed. In fact, this is the time an entrepreneur begins to realize how innovation and invention differ. in Management & Administration – International Business Online, B.S. Imagination is essential to starting a business, whether coming up with exciting new products and services or using modern forms of target-market analysis and engagement. What is Creativity?What is Innovation?This is a short video made from Powtoons!Enjoy! This is especially true for large-scale, established businesses. Innovation and entrepreneurship are essential ingredients in building a successful commercial venture. 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