Concepts of Entrepreneurship, Creativity, and Innovation

The term entrepreneurship, creativity, and innovation are interrelated to each other. To understand the relationship between them the performance of the business can be improved. By understanding these concepts, a business can be able to analyze the demand and need of the market. By analyzing the demand of consumer, entrepreneurs can able to generate the products and services according to the requirement and can perform better in the market. All these concepts are established to provide the maximum satisfaction to the customer and society at whole. The essay will discuss the concept of the entrepreneurship, creativity, and innovation and examine the key differences in relations and similarity between them. The examples have discussed in the file, which is highlighting the difference and similarities and relation between all the concepts (Your Story, 2016).

Entrepreneurship is the process by which the designing, launching of the new business can be done. An entrepreneur is the one who has the idea to introduce something new that the consumer can buy to solve their problems. Entrepreneurs are considered to the lifeblood of the economy as they lead to the generation of new ideas and employment opportunities. This will provide livelihood to many individuals. The entrepreneurs are responsible to generate the high revenues in the market. This will increase the country’s overall production and consumption and ultimately leads to the increase in the gross domestic product of the country. Entrepreneurship generally involves a high risk with them but also have the capacity to earn more in the economy. According to research, entrepreneurship comprises of both businessperson and entrepreneurs ideas and innovation. On the other hand, Shane argues that the business is motivating to indulge in the entrepreneurial decisions driven by the opportunities. It can be analyzed that the higher the economic inequality in the society, tends to the higher entrepreneurs in the economy (Cleverism, 2016).  

Creativity can be defined as the generation of ideas that will result in generating something new and somehow valuable in the society.  The creativity can be shown in the tangible item as well as the physical appearance. Creativity is found to be very important in the life of an entrepreneur. The entrepreneur makes a decision while introducing some new invention to it. This gives the product or services a new phase to get the acceptability in the market. In today’s economic world, entrepreneurship is considered the key element in developing the economy of the country. This creativity introduced by the entrepreneurs in the economy also able to generate the employment opportunity and ultimately will have the positive impact on per capita income, revenue generation, and lifestyle of the people living in the country.  

Entrepreneurship and Its Role in the Economy

Innovation

Innovation can be defined as simply the new idea or method, which is finding better than the existing solution for that problem. In other words, we can say that innovation is the solution to the problems. Problems faced by society and entrepreneurs try to meet new requirement or existing market needs. An entrepreneur should be creative as well as innovative in nature so that they can be able to coordinate in the environment. The concept of innovation has been introduced by the entrepreneurs to develop the new ideas in the society for the better solution. Entrepreneurship involves continuous assessment of existing business workflows and devising the ways in order to carry them out in a more efficient and effective way. This will also reduce the cost and time both. Innovation is working towards the optimization of the resources. Innovation leads to increase the profit, generate employment opportunities, and bring competitive advantage in the economy (Rhee, Park and Lee, 2010).  

Entrepreneurship and creativity are linked to each other in other and the other ways. The creativity of the entrepreneurs can be illustrated with the examples. One of the companies named Airbnb has been started by the Brain Cheskya and Joe Gebbia which were searching for the room in another country and are not able to find it in the hotels due to high surge and demand. From this, they have generated the idea to have a unique accommodation for the guest who gives them the leisure as they are at the home. In this, they introduced the concept of opening their homes for travelers and visitors. In 2016, the company has expanded its range of service to give the good experience to the customer at large region of the country (Runco and Jaeger, 2012).

Another example can be taken is of the Musically newly introduced is the market by Alex Zhu and Luhu Yang. Introducing the Musically app is considered to be the most creative idea in the market. By the arrival of Musically in the market, there are more than 135 million users who started to use it and are creating the music videos. This app will allow users to get the lip sync with songs of their famous artist. This company has recently made the new creation by introducing the live.ly for the music lovers. So this new ideas in the minds of the individual make them entrepreneurs. From this creativity, entrepreneurs are able to earn a high amount of profits and publicity in the market (Cleverism, 2018).

Creativity’s Importance in Entrepreneurship

Innovation is the specific function of the entrepreneurs for which they are known in the society.  Innovation is the birth of new ideas in the existing business or it can be the start-up of the new business while introducing the new idea. Innovation is considered the key success of the business. When the world speaks about the revolutionized, technology and innovation, there is no0 better example than the Steve Jobs, founder of Apple Inc. He is the person who introduced the real meaning of innovation in the industry of mobile phones and computers (Rubera and Kirca, 2012). Steve jobs with his partner Steve Wozniak have founded the Apple in their garage. They develop their innovative ideas to produce the products like iPhone, Mac book etc. Both of them are passionate about the technology and designing the new computer design, which is user-friendly and acceptable in the market by the consumers. The acceptability in the market will be there only when the products are cheaper than the existing computer. Steve tries to make the computer, which is cost-effective, a quality in nature. Steve always focused on producing the innovative design and products in the market which no other company can able to offer to its customers. His contribution and innovation made him an icon and one of the great innovators and entrepreneurs all the time in the market (Csikszentmihalyi, 2014).

Another example can be taken is of the Amazon company, introduced by the Jeff Bezos. Jeff Bezos is considered the master of e-commerce. Amazon is the largest e-commerce site in the market by offering a variety of the products and their quality service to their customers. Initially, Jeff has introduced an online bookstore in the market and doing his job. In the year 1995, he came out and gets an idea to introduce and online stores where everything can be available to the customer. Some innovations have also been introduced by the Jeff by providing tablets online using the app Kindle (International Journal of Economics & Management Sciences, 2018).  

Conclusion

From the above discussion, it can be concluded that entrepreneurship, creativity, and innovation are the lifeblood of the economy. Various perspectives related to these concepts are somehow similar and different in nature. From the discussion, it can be analyzed that these concepts are complex in nature and entrepreneurs need to have a deep focus on their ideas and thought. From the analysis, the creativity is considered to be the releasing the mind of the individual by conceiving the new ideas. Creativity is related to the imagination whereas the innovation is related to the implementation of the activity and ideas in the market. Innovation is considered a new idea or method, which is generated in the market by understanding the problem. The innovation is the solution to the problem faced by the people and able to meet the needs and requirements of the existing needs in the market. Whereas entrepreneurship is the process, through which these ideas and imagination came into existence. The relationship between them can be understood by the examples used in the essay that are highlighting the creativity and innovation used by the individuals.

Innovation as a Solution to Problems

New Zealand is an island country in the South-Western Pacific Ocean. The country has the various opportunities to start the new business in the market. One of the new startup in the New Zealand market is MY FOOD BAG, a meal kit home delivery service provider to the customers (My food bag, 2018). In this, company give sell the ingredients and recipes to cook the food. It is a privately owned and operated company. This type of start-up will get the acceptability in the market due to the availability of the large customer. This island is considered the biggest in terms of customer and demand by them. The country has found with the huge demand in the market of home delivery of food or the material to make the meals (Brodie, Saren and Pels, 2011).  

Entrepreneur in the New Zealand market has various opportunities to start a new business. To have the delivery of meal kit is the idea of Cecilia Robinson. The company is dealing in the industry of retail e-commerce grocery delivery. The innovative idea that business will have in New Zealand is of the online retail store, which provides all the groceries, food-related items, and other accessories to the customer at one store only. The theme was to develop an idea of giving the good quality and service experience to its customers from the stores. The store will be available online as well as offline for its customers. This makes the shopping convenient for the customer. This idea of providing the venture online as well as offline makes the customer free to operate their shopping whenever they want (New Zealand Herald, 2018).

 From the research and market review, it has been identified that consumer demand more online shopping as compared to the offline shopping. This will be considered as a successful venture in the market of New Zealand due to the offering offered to its customer in the market. These types of product are always in demand of every customer irrespective of its size and nature of family. To give the convenience to the customers, My Foodbag will give both experiences to its customer in New Zealand (Hinton and Hamilton, 2013).

In the year 2017, my food bag has been moved into spacious new Parnell premises, which take the company to expand in the market. The space in the new place is just two third times more than the previous place. The company has 10 cooking station with a photography kitchen and 1300 square meters of office space upstairs. Now Cecilia has 130 staffs after spending years to get expanded and spread the business in New Zealand and Australia. The prices of the company are just too low. This starts from $22.99 for two serves, which is grabbing the attention of the customers (New Zealand Herald, 2018).

Interrelation between Entrepreneurship, Creativity, and Innovation

In New Zealand, several laws are there which relates to starting up the business, consumer protection Act and other laws. All this laws and regulations have to be fulfilled by the Cecilia as to protect the business from the government regulations. From the Survey, it is analyzed that 46000 of shoppers indicate only 7% of shoppers, which shopped online, 20% were shopping from the online platform whereas remaining 73% were Omnichannel shoppers (Barringer, 2015). My food bag is started as a sole proprietorship form of business but later on converted in the company.  

In starting the business, the idea is generated in the mind of the Robinson to start the business. The idea generated is to start the business in the retail online sector. In this entrepreneur has found the needs and demand of these products in the New Zealand market. It is the demand of the market to have the companies, which provide the home delivery of their meal kit. This identification is considered the difficult task to analyze the market demand and need. After analyzing the market demand, Cecilia and her husband have to set which market to target and which sector to focus on. The target market has been set up by them (Springwise, 2013).

In developing the business plan, the person should be passionate about the thing he is investing its time and money and Cecilia is one of them. Starting a new business require time, energy and financial investment. Cecilia has invested around $100 million to start the venture. The identification and evaluation of opportunities are found to be difficult. While starting My food bag in New Zealand, one has to understand the micro and macro environment of the country to get the better understanding of the customer. The analysis of customer and market in which the business is going to enter is must. This analysis can be done by using the PESTLE analysis and competitor analysis (Think Future, 2018).

From these two analyses, it can be analyzed that market strength, weakness, and whether the market has the potential to enter the market or not (Lerner, 2010).

New Zealand political system was found to be strong and have prescribed laws and regulations. The political activities in the country affect the working of my food bag and the sales and purchase of the retail online products in the market. To start My food bag in New Zealand, political factors should be considered (Hamilton, 2012).

Examples of Successful Entrepreneurs and Their Application of the Concepts

The economy is well settled by a strong banking sector. New Zealand GDP (Gross Domestic Product) in the year 2016 was found to be NZD 230 billion which shows that there is high consumption in the country. The households in the country are demanding more units per day, which will be a good opportunity for My food bag to enter the market of New Zealand (Buisness Jargons, 2018).

The current lifestyle in New Zealand and culture depicts that thee will more scope an opportunity for the Retail stores. The social change in the lives of the individual has affected the purchasing decision of the people. In the country like New Zealand, people are not that much brand conscious but believe in the good quality of the product and hygiene factor in the stores, which is provided by my food bag (Dib, Rocha and Silva, 2010).

The people in New Zealand are using the updated technology and are using the online platform for the shopping. My food bag is providing the platform to the customer to take the services from the online retail store and can get the free home delivery at their place. Another technology used by the company is that they are offering the payment on cash as well as an online payment method to their customers (Corner and Ho, 2010).

There are various legal factors, which affect the retail industry in New Zealand. This factor includes the illegal trafficking of retail industry products, which can create scarcity in the specific area. Due to this price may go up in the market for that particular product. The company also has to follow the consumer protection act and labor laws in the business, as these are found mandatory in New Zealand market (Hall, Daneke, and Lenox, 2010).

The environmental factor is related to the protection and preserving the environment from the harmful activities. My food bag will use the way eco-friendly ways to get the product use to its disposal. The chains in delivering the product to the customer will not involve any type of problem to the environment. 

The third step in the entrepreneurial process is resourcing. In this step, the entrepreneurs are seeking for the funds. My food bag has taken the funding from the former telecom CEO Theresa Gattung and dietician/ Celebrity Chef Nadia Lim, together with the help of lim’s husband Carlos Bagrie. In this step, Cecilia is finding the ways through which the funds can be arranged from the market to start the business process in the online grocery retail industry (Idealog, 2018). The investors and another person will approach Cecilia to establish the new business in the market. The arrangement of funds is done easily by Cecilia and his husband. There are angel investors who invest in the ideas of the My food bag. Due to the value proposed in delivering the products and services to the customer (Corner and Ho, 2010).

Opportunities for Entrepreneurship in New Zealand

My food bag is not the replacement of a supermarket but wants to have the different space for the company in the market. Cecilia implements the operation work to achieve the goals for which my food bag has been established. In this step, the Cecilia needs to decide the management structure. In my food bag, the organizational structure will be hierarchal in nature so that all the decision will be transferred from the top level to the bottom level in the organization (New Zealand Herald, 2018). The hierarchical structure has its own advantages in a retail store. This will help the Cecilia to get the business information in sequence without interrupting any level of management. This clarity in role and responsibility in the mind of the employees solve the problem of who has to report to whom in the business. The use of unity of command will be followed in the business so that the one decision which takes place at the top level must be considered (Chetty, Partanen,  Rasmussen and Servais, 2014).

The last step in the entrepreneurial process is to harvest the funds and time in the business. In this step, the future growth and development have been decided by Cecilia. In this, the target has been set by the Cecilia in relation to the sales target and revenue target.  The actual growth has been compared to the standard performance. The growth in the online retail sector can be identified by putting the business operation in the real market. After this entrepreneur, checks prediction and forecasting are moving in the right way or not. If they are moving in the right direction then the business plans are successful and the Cecilia carries on the work and business on the start-up. However, if the plan is not moving in the right direction, then the corrective measures have to be taken by her in order to rectify the mistakes, which have done in the process of forecasting the plan. After measuring all the deviations, which are, faced should be checked to know the direction in which the business is moving (Kuratko, 2016).  After evaluating this point, Cecilia has made around 50000 customers in just two years and is connected to just 300 suppliers in the New Zealand market (Idealog, 2018). At present, Cecilia is planning to expand the business by providing the dieters with portion control, healthy and cooking techniques. Each meal has to be calculated to 450 calories or less than that.c

Value proposition refers to a business or marketing statement that a company may use to enhance and attract the customers so that the sale of the product or service will be increased in the market. The value added in the products and service By Cecilia will lead to influence the customer to purchase from the stores. My food bag is offering the value proposition to its clients by using the various strategies, which include understanding the customer choices, improving the service quality, identifying the segment of the customer in the market, offering more products so that there will be competitiveness in the market (Hinton and Hamilton, 2013).

My food bag has offered the value by introducing the mobile app in the name of My food bag. This will give the convenience to the customer and can order anytime. In this email of the customer will consider and the bill payment and product details will be there on mail rather than sending the bill on home or work address. This will find interesting in the minds of customer and customer will purchase the goods from the My food bag (Brodie, Saren and Pels, 2011).

This start-up will also recommend items for the consumers to purchase from My food bag. From the forecasting and analyzing demand of customer in New Zealand, the company was able to make records that what are the daily requirements of the customer (Digital Journal, 2018).

Conclusion

From the above discussion, it can be concluded that my food bag has developed an innovative idea which attracts the customers to purchase the delivery kit from them. This online grocery retail store will offer the large variety of products to its customer. For this business has been started by the Cecilia and her husband. The fund requires to start the business is $2.2 billion. From this fund, all the resources, place and materials will be available to my food bag. To start the business, the entrepreneur analyse the needs and demand of the retail store in the New Zealand market.  Forecasting will be done when the need to open a store in a new market is there. After this all, the management will be done by the Cecilia to start the business. In the last, the performances have been checked by the Cecilia and corrective measures will be taken. The company has earned revenue of $135 million with its 50000 customer, which is considered the start up to be profitable in nature.

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