Objective

Article aims at representing building construction contractor in Punjab state of India named as Core builder and it is a leading construction contractor in small building has a sole trader business structure. Article include one of the contextual factor that is Innovation and Entrepreneurship and its impact on the construction business. Further, article is comprises with entrepreneurship and innovation theories.

Objective of the article is to show how contextual factors effect business and how can these factors help business to grow and survive into the market. Importance of the contextual factor is also discussed into the article. Objective is to know the effect of contextual factor on business structure, business strategies and decision making of construction business.

As discussed above the article is about construction contractor named as core builder and the impact of contextual factor that is innovation and entrepreneurship. There is lot of scope of innovation into the construction business and different entrepreneurship strategies can be adopted by business.

Contextual factors are those factors which shows characteristics of particular group, community, society and individuals. One of the contextual factor is Innovation and Entrepreneurship. Construction industry is one of the major and important industry which leads to the development of other industry and society (Rojuaniah, Joeliaty & Sutisna. 2016). For sustaining into the market, managers of the business should implement new and innovative ideas and strategies as the competition level is high.

Innovation is important for all the business, as it is the key element for inventions and increases the performance ability of business (Bessant & Tidd, 2015). Innovation also involves improvements into the product and services as compared to previous achievements. If business is suffering from lack of funds then they will not be able to adopt different innovative technology. Further, innovation also involves risk as if the innovative strategy did not work then business has to face huge losses as the technology used in it is very expensive. Innovation and entrepreneurship comes hand in hand. Entrepreneurship is also very important for every business, as it means capability of doing things differently and ready to face risk with the aim of earning profit and success. Entrepreneur is the concerned person who start the business with the aim of doing something new and is responsible for all the decision in the business (Bessant & Tidd, 2015). Entrepreneurship comprises of developing new strategies, organizing all the elements and managing it properly. Entrepreneurship involves high risk in launching new business. If the idea or business did not worked, then entrepreneur has to face losses and it might can happen that they have to close one of the portion of business (Daniel & B. A. 2014).

Scope

Innovation and Entrepreneurship is very important for every business. For sustaining into the market business should adopt new and innovative strategies as well as technologies into the business (Drucker, 2014). If business will not do time to time changes according to the market demand, then they have to face losses and competitors will grasp that opportunity. This can lead to losses into the business and it might can happen that particular business has to close their one of the units. Entrepreneurship is also important for business because this is the process of creativity and innovation with the aim of earning profits. Entrepreneurs are those who bring new idea, make decisions and have leadership quality (Drucker, 2014).

Construction business has lot of scope of innovation, that is why Core builders should do all the research work before starting the business as it will give them an idea about the time and money will be invested in the business (Remund, Ortiz & Gehrke, 2017). Further, it can be said that Core builders should pursue innovations in order to achieve their objectives, which they have defined for their business. Core builders should have all the knowledge related to innovations done by competitors and invention of new technologies related to construction business. Concern to the future perspective Core builders should bring innovations, so that they can sustain into the market for longer period. High risk is involved into the construction business, for that core builders should plan all activities properly, like use of expensive technology and decisions related to the operation of business. Allocation of funds into different segments of business must be done properly by the contractor, which can help in corrections at the time of loss into the business (Remund, Ortiz & Gehrke, 2017).

Entrepreneurship means taking initiative towards change and doing and creating something new by grasping the opportunity. Person who take initiative and start new business is known as entrepreneur (Schumpeter, 2017). Core builder business is an idea by an entrepreneur, who has new and innovative idea for business and is ready to take risk for the sake of earning profits. Construction business plays important role in the development of society and country and also results in economic growth. It has been observed that, entrepreneurship is important for enhancing the performance of the contractor. Core builder have to be very careful while making strategies and implementing them, this is because entrepreneur is responsible for all the decisions in the business. For sustaining into the business Core builder should provide different strategies time to time and contractor should have good terms with their clients as it is a big challenge in construction industry. Besides having high risk core builders have lot of scope in Punjab state of India (Staniewski, Nowacki, & Awruk, 2016).

Discussion

Entrepreneurship Innovation theory

According to the Entrepreneurship Innovation theory, entrepreneur are the one who thinK differently, start new business, which leads to the development of economy (Staniewski, Nowacki, & Awruk, 2016). Entrepreneur with new and innovative ideas create new products, services and have future vision of success and development. They are the one who have the ability to take risk and grasp opportunities. According to the theory entrepreneurs are  those who do innovations like creating new product, launching different methods of production, find out other options of raw material for production, introducing new technology and starting new business. Focus of the theory is on innovation, entrepreneur’s ability towards risk taking (Staniewski, Nowacki, & Awruk, 2016).

Theory supports the discussion of innovation and entrepreneurship in construction business as Core builder is a new business startup plan by an entrepreneur with the willingness of doing something new and ready to take risk. Construction business leads to the development of economy (Sundbo, 2017).

Sociological theory explains that entrepreneur is the person from whom society expect new things. Entrepreneur should consider values of society, their beliefs and fulfil all the responsibility towards the society (Sundbo, 2017). As theories explains different aspects of entrepreneurship Core builder should have future vision and should consider their responsibility towards society.

Psychological theory of entrepreneurship explains that entrepreneur should have vision of high achievement and entrepreneur should be ready for facing risk and problems into the business. Psychological theory focus on personality traits and emotional elements of individual. Entrepreneur of Core builder have future vision of achieving desired targets and have thought of contributing towards the innovation (Sundbo, 2017).

Achievement Motivation theory focus on ability of decision making when conditions are unpredictable. Theory also explains that entrepreneur should be imbibed with the quality of doing work with innovations. Entrepreneur with all these quality focus on profit and success of the business. Core builder have innovative ideas for business and entrepreneur is very much capable of making decisions due to that business will make profit (Uzunidis, Boutillier, & Laperche, 2014).

Conclusion

Article comprises of objectives and scope of Core builders and impact of contextual factors on construction business. Contextual factors which is discussed above is Innovation and Entrepreneurship. Innovation and Entrepreneurship are said to be the important asset of the business. Core builder is a new start up in Punjab state of India. As discussed above Innovation and entrepreneurship are two aspects which comes hand in hand. Entrepreneur is the one who comes with innovative ideas and aims at earning profits. Innovation and Entrepreneurship shows characteristics of society, community, particular groups and individuals. In broader terms, construction industry is one of the industry which results into the development of other industries and economic growth. For sustaining into the market Core builder’s entrepreneur has to adopt new, innovative strategies and technologies into the business. Entrepreneur of Core builder should also take care of the human resource engaged into the work of business.

References

Bessant, J., & Tidd, J. (2015). Innovation and Entrepreneurship. John Wiley & Sons.

Brown, T. E. & Ulijn, J. M. (2004). Innovation, Entrepreneurship and Culture: The Interaction Between Technology, Progress and Economic Growth. Edward Elgar Publishing.

Daniel, M.C & B. A. (2014). Entrepreneurship and Innovation: An Economic Approach. Routledge.

Drucker, P. (2014). Innovation and Entrepreneurship. Routledge.

Remund, M. C, Ortiz, M. P & Gehrke, H. J. (2017). The Vitruvian Man of Leonardo da Vinci as a model of innovative entrepreneurship at the intersection of business, art and technology. Journal of innovation and entrepreneurship, 6(17), 1-18.

Rojuaniah, Sule, E. T., Joeliaty & Sutisna. (2016). The Factors Influence Intrapreneurship Behavior In Construction Company. International journal of scientific & technology research, 5(5), 36-39.

Schumpeter, J. A. (2017). Essays: On Entrepreneurs, Innovations, Business Cycles, and the Evolution of Capitalism. Transaction Publishers.

Staniewski, M. S., Nowacki, R. & Awruk, K. (2016). Entrepreneurship and innovativeness of small and medium-sized construction enterprises. International entrepreneurship and management journal, 12(3), 861-877.

Sundbo, J. (2017). The Theory of Innovation: Enterpreneurs, Technology and Strategy. Edward Elgar Publishing.

Uzunidis, D., Boutillier, S. & Laperche, B. (2014). The entrepreneur’s ‘resource potential’ and the organic square of entrepreneurship: definition and application to the French case. Journal of innovation and entrepreneurship, 3(1).