The Role of Innovation for Entrepreneurial Start-Up and Firm Growth - Literature review Example

Section/# Entrepreneurship and Innovation Introduction: As with many broad questions, seeking to answer the issue of whether or not entrepreneurs are born or whether or not they are made requires a great deal more research than one might necessarily expect. The entrepreneur, regardless of the definition or approach that will thoroughly espouse, is an individual that is innovative, oftentimes dismissive of risk, unsatisfied with the status quo, and willing to go outside their comfort zone as a means of achieving a particular degree of success. This layman’s definition of what defines an entrepreneur is of course limited in its scope and applicability. However, it has been provided so that the individual analyst can interpret what an entrepreneur is necessarily espouses in the broadest sense. Harkening back to the question at hand, whether or not an entrepreneur is born or made, the analyst should consider the fact that the ultimate answer to this question is both, neither, and some mixture in between. Far from being a clever manipulation of words, it will be the express intent of this particular analysis to define how the entrepreneur requires skills that are inherent to some individuals, how other individuals can learn these, and how a synergy between the two types of individuals is ultimately possible. Through such an identification is the hope of the student that the reader will come away with a more informed interpretation of what the entrepreneur espouses and how individuals without a certain level of entrepreneurial spirit or “gift” can effectively navigate within this particular paradigm. Method: Whereas there are many ways of approaching the information that exists and determining valuable inference, the most objective means of leveraging this information is to draw upon existing secondary and primary resources concerning the field of entrepreneurship and innovation. In light of this, the following methodological review will focus specifically on extant knowledge that has been reviewed and published on this topic to ensure that this accurately is represented and that there is no further need to “reinvent the wheel” in terms of this topic. Analysis of the Literature: Firstly, it should be noted that as with any skill set that one learns in life, there are inherently individuals that are born to a natural level of talent in terms of being an entrepreneur. Some individuals have necessarily understood this to mean that the entrepreneur is with someone that is somehow genetically predisposed to be an effective entrepreneur and to gain a degree of notoriety and success in its accomplishment. However, flipping this argument on its head, the reader should note the fact that certain individuals are born with a certain proclivity to playing music, others with a certain proclivity to art, and still others with a certain proclivity to memorization etc. etc. However, this does not mean that educators, or the parents, should despair that their child will never be a musician, artist, etc., instead, it merely means that the educational process will need to be engaged at a further level of length and perhaps a further level of rigor in order for the individual to be able to achieve the same level of success than others with an inborn and natural talent like that. Naturally, on the flip side of the argument, those individuals that promote the understanding that all forms of entrepreneurship must be taught are necessarily missing the point that some individuals are born with the innate talent that has been discussed at some depth within the preceding analysis. Behavioral dynamics, psychological dynamics, genetic dynamics, and environmental dynamics all contributed whether or not an individual has a predisposition towards a particular talent or perhaps whether or not their family encourages their interests within a particular hobby or childhood fascination within the early years of development. Nevertheless, seeking to create the equally misguided paradigm that all entrepreneurs are the result of the educational process would miss the mark of literally thousands of entrepreneurs operating within the current business environment that have achieved their overall level of success due to the fact that they felt education was a waste of their time and they could make a better way of life on their own. Evidence of this can of course be seen in terms of individuals such as Steve jobs, Bill Gates, Oprah, and a litany of other extraordinarily wealthy and successful entrepreneurs that have bucked tradition and the educational system and sought to establish themselves based upon their own innate talents. One of the primary reasons that entrepreneurship has been so difficult to concretely define is with respect to the fact that each and every individual approaches this definition with their own preconceived expectations of what it necessarily entails. Although this is true for each and every definition within the realm of language, it can especially be said with regards to entrepreneurship (Pato & Teixeira, A 2013). The underlying reason for this has to do with the fact that the definition of entrepreneurship necessarily rests upon an individual’s interpretation of labor, work ethic, and ability. Whereas the definition of a term such as “accountant” necessarily ascribes to a given skill set, the skills that are to be an entrepreneur is tacitly and innately engendered in each and every individual. This necessarily creates an understanding of the term that is even more subjective than might be understood. (Szerb et al., 2013) As a function of this difficulty, the following analysis will be concentric upon discussing why entrepreneurship is difficult to explain or understand even though it is one of the most commonly used terms in all of the business world. Networking is ultimately one of the terms that is thrown around with a level of carelessness within the business world. At almost every juncture and during almost any business conversation, networking, and the tacit importance thereof, is referenced. However, there is oftentimes little discussion for why networking is important in the means through which increased levels of networking can benefit the individual entity/individual/entrepreneur to engage in better business practices and a more lucrative trade. In such a way, the following analysis will seek to engage the reader with some of the reasons for why networking is such an integral aspect and should be appreciated to a more definitive level and degree. Firstly, the most obvious reason for why networking is ultimately important has to do with the overall level of connections that an individual can build within the business community. These connections have a clear linkage to the way in which consumers and producers can be linked. One does not need to delve too deeply into existing literature to find the way in which value chain management and the relationship between producers and suppliers must be delineated in order to come to an appreciation for the fact that these connections are an invaluable compote of seeking to further the business profitability and continued survival of a given entrepreneur/business entity. Ultimately, the goal of these connections, brought about might networking, is to create a series of friendships and at least acquaintance with stakeholders within a variety of different fields. It must not be understood that networking is done solely as a means of benefiting the bottom line. Oftentimes, networking has the tangential benefit of allowing the individual entrepreneur to come to a more full and well nuanced knowledge of existing best practices within a given field. Through such a knowledge of best practices, the entrepreneur can then apply these best practices, changing them as he/she feels fit, to more appropriately embodied the goals and visions of their respective business entity. Within such a way, the entrepreneur becomes less insular and can rely upon the best practices of different individuals in different fields as a means of benefiting their own business. All too often, producers and entrepreneurs are caught in the unenlightened frame of mind that they are in a game against the world. Within such an unenlightened standpoint, the entrepreneur does not wish to accept the best practices for business approach that many other individuals that they might network with have utilized to a great level of success. However, a brief and cursory analysis of the existing business environment notices that many of the most successful and multinational firms have sought to engage best practices in other tangentially related businesses as a means of benefiting their own bottom line and approach to the consumer. Moreover, one can see an example of the importance that networking can have with respect to the way in which network theory, a sociological construct, delineates the way in which this can and should occur within the realm of both business and interpersonal interaction. As such, network theory denotes that the greater the level of connections that can be made the greater the empathy and synergy that can be developed within each of these relationships/networks. As such, using the case of a large multinational firm such as Apple, one can readily denote the fact that network theory is definitively in use and applied across the board with regard to the way in which business interactions and needs fulfillment takes place. Finally, seeking to forge these networks can result in lasting friendships and network relationships which encourage business to grow beyond the market constraints. For instance, if a given supplier has formed a long relationship with the given consumer, seeking to foster this relationship further will be a primary concern over merely delivering the lowest unit cost and/or seeking to enjoy a higher level of immediate profitability. The rationale for this is obviously due to the fact that a long-term relationship, achieved through networking, can eventually provide a much greater level of return on investment as compared to the short-lived relationship that many firms within the market are interested in engaging. If the literature has proven anything, it is proven the fact that those firms which are able to engage in lasting and meaningful networking opportunities are most able to survive within the tempestuous world of business entrepreneurship. From a dictionary standpoint, an entrepreneur can be defined as “one who starts something, organizes, manages, or assumes the risks that a business or enterprise might assume” (Greblikaite, 2012). Yet, assuming the risks, managing, or otherwise organizing a business is not what one conjures up when they first consider the denoted or connoted meaning of the world “entrepreneur”. Another difficulty is with regards to the clear examples of entrepreneurs that exist within the world (Estrin et al., 2013). Although the dictionary definition that has thus far been presented gives the reader an overarching interpretation that a single individual is somehow responsible for each and every change that jumps starts a business entity into existence, more often than not, this is the result of a group of individuals that are responsible for these changes (Zeitsma & Truck, 2013). As such, the fundamental misunderstanding that is made is with respect to the fact that individuals come to idealize the entrepreneur as something of a unique character trait; not exhibited commonly and something only a superhero within the world of business might achieve (Miller et al., 2012). However, the truth of the matter is much different. Rather than viewing the entrepreneur as something of a unicorn within the business world, a more fair and accurate assessment would be to understand the entrepreneur as existing potentially within each and every individual; indicated by unique ideas, approaches, management techniques, or levels of business sense and potential integration with the market (Pache & Chowdhury, 2012). Utilizing the case of Meg Whitman or Steve Jobs, the entrepreneurial spirit of these individuals is ultimately what led them to the profound success that they achieved. Whereas it is true that both Jobs and Whitman were able to find a niche, it was not their subject matter expertise thatlended them such a high level of success; rather, it was there pervasive drive to innovate and direct the affairs of whatever entity they found themselves in control of at any one given point in time. Entrepreneurship is ultimately about approach and personal spirit; not overall levels of competence. As such, it is not surprising that such different understandings for what this term means and how it should be applied, and in what settings it is expected to be engaged, exist. Yet beyond a mere capability, entrepreneurship, in an ideal world, entails a level of passion and commitment on the part of the individual (Dromereschi, 2013). Due to the fact that no two business enterprises are the same, and due to the fact that no two business leaders approach a similar situation from the same standpoint, it is not surprising that entrepreneurship differs so vastly across the spectrum of business; ultimately contributing to such a diverse understanding of what it actually means, what is expected from the entrepreneur and how a business directed by such an individual must function (Grimes et al., 2013). From the discussion that has thus far been engaged, the reader can come to an interpretation of the fact that the entrepreneur is an individual that seeks to maximize their own utility from a particular situation, or set of situations, in order to maximize profitability in the business world. However, even this broader definition still leaves much to be desired and does not adequately capture the full range and depth of what an entrepreneur actually is (Greblikaite & Krisciunas, 2012). In all fairness, it must be understood that such a fluid construct, and such a socially determined definition, as that of entrepreneur, is not one that will be defined in a complete manner anytime in the near future; if at all. The underlying rational for such a bold statement springs from the fact that an entrepreneur us ultimately a subjective construct; and one that each individual has a different understanding of. Yet, rather than this lack of definition being a constraint, the reader can instead view it as the ultimate strength. By allowing a level of subjectivity to define the entrepreneur, it is all but assured that new iterations of such individuals will spring to prominence and help to define the business world in years to come. Conclusion: Accordingly, rather than assuming that entrepreneurship is something that can’t always be taught or something that an individual is either born with or cursed to live without, the reader should instead engage with an understanding that a mixture between these two points of view is the more effective interpretive standpoint for understanding how entrepreneurs engage with the world around them and are able to define it based on their efforts. Likewise, educators and stakeholders within the current era can utilize this understanding as a means of fostering an entrepreneurial spirit within their students and recommending to those that they see a certain gifts for entrepreneurship to further their talents and flex their abilities within the sphere of business. In many ways, and community for business is not much different than an acuity for mathematics, history, or any other of the subjects that are oftentimes taught within schools around the globe. The differential between entrepreneurs and artists/musician/historians etc. has to do with the fact that you educators have taken time to grapple with the meaning and importance of whether or not an entrepreneur is born or whether or not they are a byproduct of the educational system. By recognizing the fact that both of these points of view are inherently operable and useful in defining the way in which education and encouragement should be provided, a distinctly different paradigm can be utilized as a means of encouraging the stakeholders. Bibliography Dromereschi, M 2013, Economic and Entrepreneurship Education - A Prerequisite for the Devleopment of Local Entrepreneurship, Management Intercultural, 27, 1, pp. 36-42, Business Source Complete, EBSCOhost, viewed 11 January 2014. Estrin, S, Mickiewicz, T, & Stephan, U 2013, Entrepreneurship, Social Capital, and Institutions: Social and Commercial Entrepreneurship Across Nations, Entrepreneurship: Theory & Practice, 37, 3, pp. 479-504, Business Source Complete, EBSCOhost, viewed 11 January 2014. Greblikaite, J 2012, DEVELOPMENT OF SOCIAL ENTREPRENEURSHIP: CHALLENGE FOR LITHUANIAN RESEARCHERS,European Integration Studies, 6, pp. 210-215, Business Source Complete, EBSCOhost, viewed 11 January 2014. 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