Innovations, entrepreneurship and profit: how they are tied together

What is entrepreneurship? When we think of entrepreneurship, which comes to mind, there are businessmen and small businesses or companies. Indeed, the definition of entrepreneurship is different depending on the point of view. There may be a business forum or it may be an activity where people participate. A description of the processes involved in it defines what entrepreneurship is. Understanding and seeking innovations, such as improving existing product lines, is one of the processes in entrepreneurship. But not only is innovation, this process should be a step further so that it can be viewed as part of entrepreneurship.

The step would be to transform innovation into economic goods, something that will generate revenue. In entrepreneurship, an individual or group of individuals identifies business opportunities by finding a prospective or valuable asset, product or business that can be used for business and generate good profits. When the market value of business opportunities or innovation exceeds the value of the combinations of resources used to create opportunities or innovation, then profits. Profit occurs when the value of resources used to create a product is increased with innovation.

The definition of entrepreneurship lies in one but the most important term: discovery. Without discovery and innovation, there will be stagnation in the market economy, with no improvement. The employer creates economic growth, as it supports growth growth through its discoveries and innovation. With entrepreneurship, new and better things, processes and systems are created, recreated and uncoovered. The creation or discovery does not have to isolate new product lines or existing product lines. It can also be used for methods of production, market, resources or organization or even industry. Entrepreneurship can provide solutions for economic stability as it constantly strives for the progress and development of our resources to provide them with greater value.

Let's take the following circumstances as an example of understanding entrepreneurship. Check out the following conditions:

· Mum at home knows how to cook delicious Indian cuisine starts selling them to teachers and staff at the next school.

· Another employee found another use for old vehicles, designed and adapted and made a playground for their pets.

· Scientist discovers a new feature but does not attempt to identify practical use for it.

All circumstances except for the scientist show entrepreneurship. Remember that entrepreneurship is discovering or adding new product lines, markets, processes, resources or organization. My stay at home mom found new markets in her neighborhood, a nearby school, and she took advantage of it to earn income. The downsized employee developed new use for old vehicles. The status of the scientist must not be regarded as entrepreneurial activity. There was no attempt to create market value for new elements, as the scientist did not try to identify its practical use. If he created a product using new elements then it could be identified as entrepreneurship.


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