Week 1:innovation And Entrepreneurship: The Rati

Week 1: Innovation and entrepreneurship: the rationale and relationshipEntrepreneurship and innovation are two important concepts that have received a great deal of attention in recent years. The significance of entrepreneurship and innovation was identified as far back as 1934 by Schumpeter who described ‘waves of creative’ destruction produced by new and innovative products which have helped fuel and sustain free markets.There are many definitions of entrepreneurship, such as ‘starting up a new business’. One particular definition is given by Professor Howard Stevenson from the Harvard Business School who defines entrepreneurship as ‘the pursuit of opportunity beyond resources controlled’. The definition implies taking an idea and developing that idea to create something. The reference to resources is an important one, as all entrepreneurs are resource-constrained. As you will read throughout this module, devoting resources to pursue a business idea involves risk. Some examples are: the risk of financial loss, the risk of market erosion and the risk that the idea pursued will not be welcomed by the market.The word ‘opportunity’ provides an important link between the two concepts of innovation and entrepreneurship. Opportunity suggests something new. This ‘something new’ could be developing a new product that meets the