Entrepreneurship is mainly supported by
innovation in entrepreneurial organizations. Organizations today look for
innovative ways to protect themselves from heightened competition and stay
relevant in the market. (Purcell, 2019), an organization's capacity for
innovation is a key factor in determining its success. Innovation is not new,
but its significance is growing daily. Businesses are focusing more than ever
on developing new ways to increase efficiency in today's age of fast change.
Here are four reasons why entrepreneurial organizations seek opportunities for
innovation.
1.
To Be Different From the Competition
By embracing innovation, entrepreneurial
businesses can set themselves apart and obtain a competitive advantage. Every
organization has a specialization and is not alone in that area. To draw in and
keep customers, organizations must provide them with a unique product or
service.
For
example, many companies produce makeup products, increasing the difficulty of
gaining customers in the same industry. However, an entrepreneurial company can
create a unique makeup mask that does not affect the skin compared to normal
makeup products.
A
source of long-term competitive advantage is innovation. Due to the lack of
necessary expertise, competitors may find competing with an innovative
organization challenging. Innovative businesses stand out from the competition
and generate more income. Dealing with the growing competitiveness in the
corporate sector can be accomplished through innovation.
2.
To expand their competitive advantage
Today, companies must innovate to stay
relevant in the competitive market. The greatest method to do this is to use
innovation to launch new items that can increase profitability while
maintaining market share. Innovative companies can produce superior goods to
those made by rival enterprises (Lee & Yoo, 2019; MasterClass, 2021). Also,
they provide services that are unique from others. These moves enable these
businesses to set themselves apart from their rivals. They thereby possess a
competitive advantage over their rivals.
3.
To adapt to the Changing Business Trends and
Dynamics
Entrepreneurs desire to change while
maintaining their competitive edge in the market. The most successful
businesses respond to shifting conditions by creating new solutions (Lee &
Yoo, 2019). They get the ability to recognize and promptly address new demands
in the sector as fast as possible. They benefit from staying ahead of other
businesses that might have adopted different strategies because of a keen mind
for new ideas and the speed with which they shape their new ideas into products
and services for consumption in the market. For example, social media can
improve business operations, lower costs, and boost client happiness.
4.
To fulfill customer needs
Innovative businesses try to keep up with
shifting consumer demands by monitoring consumer trends and create accurate
projections to satisfy customers' changing wants.
Customers
like working with companies that bring interesting products and services to satisfy
their demands; therefore, an organization that introduces a new product will
likely have greater customer loyalty and market share than rivals.
In conclusion, innovation is among the main
elements determining a company's success. Because of this, business owners
continuously look for ways to innovate to stay one step ahead of the
competition, expand their competitive advantage, adapt to changing business
trends and dynamics, and even fulfill customers' needs.
References
Lee, K., & Yoo, J.
(2019). How does open innovation lead to competitive advantage? A dynamic
capability view perspective. PloS One, 14(11), e0223405.
doi:10.1371/journal.pone.0223405
(N.d.).
https://www.masterclass.com/articles/why-innovation-is-essential-for-business-success#3-models-of-business-innovation
Purcell, W. (2019,
October 31). The importance of innovation in business. Northeastern University
Graduate Programs website:
https://www.northeastern.edu/graduate/blog/importance-of-innovation/
